The Housing Authority of the City of Kokomo originated as a result of the U.S. Housing Act of 1937.  The Kokomo City Council authorized the establishment of the Housing Authority and gave the mayor authorization to appoint a board to oversee operations of Public Housing.  A Board of Commissioners consisting of five (5) members was appointed by the mayor, each appointment for a term of four (4) years.

In 2002, due to a change in Indiana Code IN 36-7-18-5, the number of board members changed to seven.

To provide decent, safe and sanitary housing for low-income families unable to obtain such housing through private rental.

Kokomo Housing Authority is federally funded through the Department of Housing and Urban Development.  An operating budget is submitted annually and HUD subsidizes a portion of the operating expenses in excess of KHA's income (or a percentage of the amount requested).  The Housing Authority receives no city funding.  KHA can boast excellent financial management ratings, showing wise investments and conservative spending.

Kokomo Housing Authority is tax exempt, however a Payment In Lieu Of Taxes (PILOT) is made to the city of Kokomo annually for police and fire protection and other city services.  The PILOT amount is computed at 10% of the difference between total  rental income and total utility expense.

The Section 8 Existing Housing Program was added to KHA operations in 1977.  This program subsidizes privately-owned decent, safe and sanitary housing for eligible applicants.  Tenants pay 30% of income and KHA subsidizes the difference, up to the fair market rent amount, to the landlord.