COVINGTON — A burned-out, trash-filled building in Covington's Eastside neighborhood has become the latest acquisition of a nonprofit group dedicated to helping low-income residents own homes.

        This week, Covington City Commission agreed to sell the vacant, fire-damaged building at 1310 Banklick St. to Housing Opportunities of Northern Kentucky for $1. City commissioners also authorized a loan of up to $59,700 for rehabilitation of the property. The no-interest loan must be paid in full in three years.

        Through HONK, about 20 Covington homes have been sold to low-income residents in Covington, and another 30 are being rented, rehabilitated or built, said Howard Hodge, Covington's housing development director.

        “(HONK's) probably become a leading producer of in-fill housing in the city,” he said. “They are very cost-effective in that they have a lot of volunteer labor and they get materials donated.”

        The former two-family home on Banklick Street had become a gathering spot for vagrants in recent years and had incurred many building code violations, city officials said. The city of Covington foreclosed on it last year after the property's out-of-state owner failed to pay back taxes.

        Outside of Covington, HONK has built or rehabilitated seven homes in Newport, Bellevue and Independence.

        With the homes that HONK has previously rehabbed or built on Banklick and nearby streets, Jack Goeke, HONK's executive director, said he feels the agency “can turn the neighborhood around.”

        Mr. Goeke and John Binzer, administrator of HONK, started the nonprofit, rent-to-own housing program about 10 years ago to help low-income residents escape poverty. HONK enables applicants — most of whom have jobs but may have marginal credit histories — to rent a home an average of three years before purchasing it, Mr. Goeke said.

        During the rental period, any payments that exceed HONK's investment in the property help pay it off or are set aside to help cover the property's maintenance and insurance costs.

        Most of the organization's $300,000 annual budget comes from rent payments, while Covington provides $21,000 a year for office and staff costs. Grants and donations help cover the rest.

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