Southside Homeowner Grant Incentive

The Southside Homeowner Grant Incentive is a local grant program administered by the City of Paducah, Kentucky, through its Planning Department in collaboration with the Urban Renewal and Community Development Agency (URCDA). The program was approved by the Paducah Board of Commissioners in December 2025 and is part of a broader Southside revitalization effort focused on strengthening housing conditions and encouraging residential investment. URCDA, a board authorized under Kentucky Revised Statutes, oversees the program and has prior experience managing similar neighborhood revitalization initiatives in Paducah. The grant is limited to properties located within the designated Phase One Program Area of the Southside neighborhood. This area is geographically defined and includes a mix of occupied homes and vacant parcels targeted for reinvestment. The incentive is designed specifically for owner-occupied residential properties and supports both major rehabilitation projects and new residential construction. Its purpose is to improve housing quality, promote long-term neighborhood stability, and support reinvestment by existing residents. Eligible applicants may receive reimbursement equal to 30 percent of eligible project costs, with a maximum award of $30,000 per property. A minimum project investment of $5,000 is required to qualify. Eligible rehabilitation activities include structural improvements, exterior upgrades such as siding, windows, doors, and accessibility ramps, energy-efficiency improvements, and interior upgrades including electrical, plumbing, heating, and air systems. New site-built, conventionally framed single-family residential construction is also eligible. General maintenance activities, appliances, furniture, landscaping, and any work started before application approval are not eligible for reimbursement. Applicants must submit a completed application along with required supporting documentation, including proof of property ownership, project cost estimates, photographs of existing conditions, drawings or plans when applicable, and proof of financial ability to complete the project. A completed W-9 form is required, and an electronic funds transfer form may be submitted if the applicant wishes to receive reimbursement by direct deposit. Applications may be submitted through the City of Paducah’s online portal or directly to the Planning Department. All projects must begin only after application approval and receipt of an award letter. Projects are required to be completed within one year of the award date unless a written extension is requested and approved. Reimbursement is issued only after project completion and verification. Applicants may submit up to three applications for the same property over time; however, the combined reimbursement for all grants on a single property may not exceed the $30,000 maximum, and only one application may be active at any given time. Grant awards are considered taxable income. For reimbursements under $10,000, recipients receive a Form 1099 for the year in which the payment is made. For awards of $10,000 or more, recipients must execute a promissory note and mortgage agreement prior to reimbursement, with forgiveness occurring incrementally over a five-year period. The Planning Department serves as the primary point of contact for applicant questions and program guidance.