Kentucky Governor Announces Homeowner Assistance Fund

Gov. Beshear Announces Team Kentucky Homeowner Assistance Fund

Up to $35,000 in federal funds to help homeowners affected by pandemic pay back mortgage, home-related expenses

FRANKFORT, KY (STL.News) In partnership with Kentucky Housing Corporation (KHC), Gov. Andy Beshear launched the Team Kentucky Homeowner Assistance Fund, a program that can help homeowners impacted by the pandemic rebound and avoid foreclosure.

The program is funded through $85.4 million in federal American Rescue Plan Act funds that the commonwealth received to protect homeowners impacted by COVID-19.

Starting today, Monday, Feb. 7, 2022, qualifying homeowners can visit TeamKYHAF.ky.gov to apply for up to $35,000 in assistance to help with delinquent mortgage payments, property taxes, homeowner’s and/or flood insurance, homeowners association fees and utility costs.  If approved, the funds will be paid as a grant directly to mortgage servicers, utility companies, county property tax administrators, insurance agencies or homeowners associations.

“We are thankful for the federal funds to help Kentucky homeowners affected by the pandemic,” Gov. Beshear said. “Kentuckians’ homes have been critical during this pandemic and now as cases continue to go down, these funds help ensure each family has their home to help them recover.”

“Kentuckians have struggled with the impacts of COVID-19 for nearly two years,” said Winston Miller, executive director of Kentucky Housing Corporation.  “Many homeowners who previously had stellar payment histories fell behind quickly, and this program will help them recover so that they can stay in their homes, avoid foreclosure and rebuild their lives.”

After receiving the federal funds, KHC worked with the U.S. Treasury to craft a program based on Kentuckians’ needs.  In late December, KHC received approval for its plan and quickly built the program.

Each applicant will be assigned to a housing counselor who will help walk the homeowner through the submission process, including gathering and signing documents and responding to questions.

Before applying, homeowners should contact their mortgage servicer to weigh their options and see which program would provide the best long-term solution.

Eligibility Requirements

To qualify for the Team Kentucky Homeowner Assistance Fund, applicants must:

  • Be able to document a financial hardship after Jan. 21, 2020, due to COVID-19;
  • Live at the residence as their principal residence and have lived there at the time of the hardship; and
  • Have an income at or below 150% of the area median income (a chart is available on the Homeownership Protection Center site).

Required Documentation

Among the items each applicant needs to submit are:

  • Income verification (e.g. paystubs, W2s, 1099s, 2019 tax filings, attestation from an employer); and
  • Home valuation information (e.g. tax assessment, appraisal, asset statements).
    A detailed description of the program can be found at ProtectMyKYHome.org.

The program is available until all funds are expended or Sept. 30, 2025, whichever comes first.

The Governor added that the announcement comes as we celebrate the 50th anniversary of the Kentucky Housing Corporation and said, “I’m proud of all that KHC has done, and continues to do, to strengthen communities across the commonwealth.”

Healthy at Home Eviction Relief Fund

Gov. Beshear reminded Kentucky renters who suffered financially due to COVID-19 that the $264 million Healthy at Home Eviction Relief Fund is still in place to assist them with housing and utility payments.

As of Friday, Feb. 4, $107.3 million has been deployed to help Kentucky renters with housing and utility costs.  A total of 31,896 individual payments have been processed, assisting 22,738 households, with an average assistance per household of $4,719.

The state sub-granted $27 million to Louisville, which has sent out more than $18.6 million in payments, and $11.7 million to Lexington, which has sent out more than $4.4 million in payments.

At least $95.7 million remains available to assist Kentucky renters.