Kentucky Homeowners Can Apply for Grants to Help Pay Insurance, Mortgage

Kentucky homeowners affected by the COVID-19 pandemic and economic slowdown can now apply for assistance to help pay insurance, mortgages and property taxes, the state’s governor announced.

The program is funded through $85 million from the federal American Rescue Plan act and provides up to $35,000 per homeowner, Gov. Andy Beshear’s office said this week. Homeowners can apply at the https://teamkyhaf.ky.gov website.

The funds can be used for a one-time reinstatement of past-due, non-escrowed homeowners and flood insurance premiums, along with mortgage payments for six months or to pay a past-due balance and utility and tax payments and association dues.

To qualify, applicants must document a financial hardship after Jan. 21, 2020, due to COVID-19; must live at the home as their principal residence and must 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 state’s Homeownership Protection Center site.

If approved, the funds will be paid directly to mortgage servicers, utility companies, county property tax administrators, insurance agencies or homeowners associations. Each applicant will be assigned a housing counselor who will help walk the homeowner through the submission process, including gathering and signing documents and responding to questions.

Homeowners should contact their mortgage servicer to weigh their options and see which program would provide the best long-term solution, the news release explained.

After receiving the federal funds, the Kentucky Housing Corp. worked with the U.S. Treasury to devise the program, the corporation explained. The agency received approval for its plan in December.

Funding for the program is expected to be available until 2025.

Topics Homeowners Kentucky