The first Governor's Housing Conference was held in 1984 and grants for two programs were developed, Energy Repairs for the Elderly and Training for Affordable Construction.
KHC became the first state Housing Finance Agency (HFA) to receive AAA bond credit rating from Standard & Poor's in 1991 and began administering the Family Self-Sufficiency Program.
In 1997, KHC contributed to the Jimmy Carter Work Project, Hammering in the Hills, and participated with Habitat for Humanity in eastern Kentucky including sponsorship of two house builds.
In 1999, KHC received a HUD grant of $290,281 to expand homeownership education and counseling programs and the AHTF was funded by unclaimed lottery winnings totaling $5.8 million.
In 2000, the General Assembly raised KHC's debt ceiling to $2.5 billion, as well as continued the allocation of unclaimed lottery winnings for the AHTF for another two years.
KHC's Board of Directors adopted a universal design policy to require building concepts that support minimal alteration to accommodate changing needs of current and future residents.
Governor Ernie Fletcher launched Recovery Kentucky in 2005 to reduce chronic homelessness for drug and alcohol addicted Kentuckians and charged KHC with the administration of the program.
A new Housing Choice Voucher to Homeownership program was started for Section 8 rental assistance participants and a statewide, Don’t Borrow Trouble[4] task force was established to raise awareness of predatory lending.
In 2006, Kentucky's Ten-Year Plan to End Chronic Homelessness was unveiled by Governor Fletcher, legislation establishing a permanent funding source for AHTF was passed by the General Assembly, and Hurricane Katrina victims were helped by KHC with housing assistance.
The Kentucky Homeownership Protection Center[6] was created by the General Assembly to help homeowners avoid foreclosure, which absorbed the Don’t Borrow Trouble task force.
KHC participated with the federal Housing and Economic Recovery Act of 2008, created to address the subprime mortgage crisis.
KHC also operates through the receipt of fees for administering federal programs including rental assistance that makes housing available to low-income Kentuckians.