Owensboro Health Donates Land to Launch Affordable Housing Development through Community Collaborative

Owensboro Health is donating 17 parcels of land near its Parrish Avenue campus to support the construction of new affordable homes, a milestone initiative driven by the Greater Owensboro Area Housing Collaborative. The lots, located between Hathaway and Center streets, will be developed by Habitat for Humanity in phases.

The land donation marks the first major initiative from the housing collaborative, which was formed 18 months ago in response to the region’s growing shortage of affordable homes. Launched by Owensboro Health as part of its strategic focus on community partnerships, the group brings together local housing authorities, nonprofits and city leaders to address systemic barriers to safe, stable housing.

“This project is the result of many voices coming together to tackle a critical need,” said Dr. James Tidwell, Vice President of Population Health at Owensboro Health. “We know housing is one of the strongest social drivers of health. Without a safe place to call home, it’s nearly impossible for people to prioritize their health. These homes will help fill a gap in our community and create the foundation for better well-being.”

The Kentucky Housing Corporation reports a gap of more than 4,000 affordable units in Daviess County alone, with the greatest shortage falling in the price range accessible to families earning less than half of the area’s median income. To be affordable for the families who most need it, homes would need to cost around $150,000. But studies show that building a modest house now costs $250,000 — making that homeownership dream unattainable for many. This development will bring 17 new homes to families who otherwise would have to continue relying on costly, unstable temporary housing.

Habitat for Humanity of Owensboro-Daviess County will build the homes over time, receiving each parcel as it becomes ready for development. The project follows Habitat’s proven model of using donated land, volunteer labor, and affordable or donated materials to construct quality homes at accessible price points. 

“Our involvement in the Housing Collaborative, initiated by Owensboro Health, reaffirmed the deep commitment our community shares toward advancing affordable housing and fostering healthy, stable environments for families,” Jeremy Stephens, Executive Director of Habitat for Humanity Owensboro - Daviess County, said. “We are profoundly grateful for this extraordinary land donation—the largest ever made to a Habitat affiliate in Kentucky. This gift not only reflects an inspiring spirit of generosity but also allows us the rare opportunity to focus fully on building for the next two to three years without the ongoing challenge of securing land.”

The City of Owensboro has pledged to support infrastructure needs such as sewer, utilities, sidewalks and fencing.

“The collaboration between Owensboro Health, Habitat for Humanity and the City of Owensboro reflects the very best of what public-private partnerships can achieve. By combining our resources and expertise, we are creating pathways to stability, dignity and long-term opportunity for families in our community,” said Owensboro Mayor Tom Watson. “The City is proud to invest in this effort and remains deeply committed to expanding access to high-quality, affordable housing as a foundation for stronger, healthier neighborhoods.” 

Owensboro Health also plans to encourage its team members to volunteer in the building process. 

“This is what true collaboration looks like,” said Mark Marsh, President and CEO of Owensboro Health. “We are proud to stand with other community leaders to invest in solutions that address the root causes of poor health. This is more than a land donation—it’s a shared step toward a stronger, healthier Owensboro.”

Stakeholders in the Greater Owensboro Are Housing Collaborative include: Owensboro Health, City of Owensboro – Community Development Department, Daviess County Fiscal Court, OASIS, Green River Area Development District, Audubon-Area Community Services, Green River District Health Department, Community Ventures, Greater Owensboro Chamber of Commerce, St. Benedicts of Owensboro, Habitat for Humanity Owensboro – Daviess County, Daniel Pitino Shelter, Housing Authority of Owensboro, Owensboro Health Foundation and RiverValley Behavioral Health — all working to reduce homelessness and housing insecurity. The Collaborative is one of two initiatives by Owensboro Health to address key social needs identified in the Community Health Needs Assessment. A mental health collaborative, facilitated by RiverValley Behavioral Health, has also begun its work.

The land sits just blocks from Owensboro Health’s Parrish Avenue campus and is walkable to the Owensboro Regional Farmers’ Market, health clinics and other essential services. Construction is expected to begin after Habitat’s current Carter Court neighborhood project is completed. A formal timeline and additional details will be announced in the coming months.