Two nonprofits get grants for creation of affordable housing in Paducah

Two Paducah nonprofit organizations are being awarded a share of more than $51 million in Affordable Housing Program grants.

The grants come from the Federal Home Loan Bank of Cincinnati, distributed through 30 other member financial institutions in Kentucky, Ohio and Tennessee.

The Merryman House Domestic Crisis Center is being awarded $1.5 million for their Merryman Village project. In 2024 they applied for funding for a planned 4-acre property on Wayne Sullivan Drive between downtown and the Southside to be the site of four residential buildings featuring 48 one, two, and three-bedroom units, as well as a one-story community building and daycare.

Most of its rental units will be dedicated to those who are victims of domestic violence and their children, with survivors of domestic violence receiving preference on the remaining units. 

In 2025, funding applications from the Merryman House estimated the cost of Merryman Village at $12.7 million.

The other local nonprofit receiving an AHP grant is the Paducah Alliance of Neighbors. Its members provide home repairs for the elderly, disabled, low-income, single parents, and veterans.  They help renters become homeowners by helping people qualify for a mortgage. 

In 2020, the Alliance also launched their Heart of Paducah homebuyer program, and built six new homes bordering the Rotary Health Park. They're also part of the  Southside neighborhood iniative, with a five-year plan for up to 30 homes. This year's award is $52,200, and it's the 15th year that the Alliance has been receiving funding for several of its programs from the Federal Home Loan Bank of Cincinnati and the Kentucky Housing Corporation. 

FHLB Cincinnati allocates 10 percent of its net income annually to the Affordable Housing Program. They are one of 11 Federal Home Loan Banks nationwide, a system created by Congress in 1932 to support housing finance.

This year is the largest grant announcement in the history of the program. 

See this year's FHLB grant awards here .


Photos: Merryman House; Paducah Alliance of Neighbors