COVINGTON — A developer of homes for low-income families has received a $111,000 grant that will provide the seed money for a $1.5 million project here.

        Housing Opportunities of Northern Kentucky will use the money to begin the financing of a plan to build three homes and rehab seven others on Covington's east side, said associate director Joe Gallenstein.

        The homes will be sold to families that qualify for assistance under federal guidelines established by the Department of Housing and Urban Development (HUD).

        “This money will enable us to match and leverage other money, donations, in-kind donations and other grant monies that might be available for us to get this project done,” Mr. Gallenstein said.

        Work will begin later this year. The organization is still finalizing some locations and working on financing.

        “Getting this grant was a big step because it gets us started,” Mr. Gallenstein said.

        Housing Opportunities of Northern Kentucky received the grant from the Kentucky Housing Corp. Statewide, the Frankfort-based organization provided $21 million that will be used to develop 640 housing units for low- and moderate-income families.

        The money came from a number of federal, state and corporate sources, said Rick McQuady, chief program officer at the Kentucky Housing Corp.

        Housing Opportunities of Northern Kentucky is a 10-year-old organization that has built and rehabbed 61 housing units.

        Much of the work on the houses is done by volunteer labor, Mr. Gallenstein said.

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