A proposed residential facility aimed at supporting individuals recovering from addiction has received a significant financial boost. The Purpose Place, set to be located in Owensboro, Kentucky, has been awarded a grant of $1.5 million from the Federal Home Loan Bank of Cincinnati (FHLB Cincinnati) through its 2025 Affordable Housing Program (AHP). This funding is expected to facilitate the construction of 44 apartments dedicated to men and women who have successfully completed an addiction recovery program.
The facility will occupy a 6.1-acre site at 1651 Parrish Plaza Drive, recently rezoned to accommodate multi-family residential development. Wabuck Development Co., based in Leitchfield, will oversee the construction of the apartments for the Center For Addiction Recovery Of Henderson.
According to FHLB Cincinnati, the AHP allocates 10% of its net income each year to enhance housing affordability for households earning at or below 80% of the area median income. The current funding cycle also includes an additional $4.3 million in voluntary contributions, expanding the capacity of the program significantly. In total, FHLB Cincinnati has dedicated $39.98 million to support various voluntary initiatives focused on mortgage relief, lending, disaster recovery, and other housing-related efforts across Kentucky, Ohio, and Tennessee.
“The affordable housing landscape is changing with many of our members and the organizations they support facing challenges in the development and rehabilitation of housing throughout our region,” stated Andrew Howell, president and CEO of FHLB Cincinnati. He emphasized the organization’s commitment to affordable housing, noting that this year’s grants represent their largest allocation ever, totaling nearly $52 million.
Wabuck Development Co. has a longstanding history in the region, having constructed approximately 3,000 housing units across Kentucky since its inception in 1980. In Owensboro alone, the company has developed 328 units since 1998.
The Purpose Place project is currently pending approval for its primary funding source: low-income housing tax credits. April Bowman, a development officer with Wabuck, explained that the Internal Revenue Service permits the upfront sale of these tax credits to investors, and the anticipated funding could range from $1.2 million to $1.5 million annually over a decade, potentially generating between $12 million and $15 million for construction.
Bowman indicated that a decision regarding the tax credits is expected by the end of January. If all funding sources are approved, the apartments may be ready for occupancy by the end of 2028. Should the project fail to advance, the $1.5 million grant will be returned to FHLB Cincinnati.
This initiative reflects a growing recognition of the need for affordable housing solutions in communities across the United States, particularly for vulnerable populations.
