Can Permanent Housing Placement pay for CLOSING COSTS for an eligible HOPWA client?

Question: 

Can Permanent Housing Placement (PHP) pay for CLOSING COSTS for an eligible HOPWA client?  The client is moving into a Habitat for Humanity house and has $800 of the $1,200 closing costs.

Answer: 

While this scenario does seem to fit with PHP in some ways - helping a client to access permanent housing - assisting with closing costs would not be an eligible expense for PHP. Kentucky Housing Corporation does offer some programs for down payment assistance. You can find more information about these programs at: http://www.kyhousing.org/Home-Buyers/Pages/Down-Payment-Closing-Cost-Assistance.aspx.

PHP may be used for rental deposits, utility connection charges and other similar items for people moving into permanent housing, but closing costs for the purchase of a home would be considered part of the purchase price, and not eligible under HOPWA. The only circumstances under which HOPWA may be used to help with homeowner-related costs is STRMU, which also does not fit for the given situation since it is designed to help a homeowner make mortgage payments in order to retain and not lose the home to foreclosure.