Treasury Approves New Options for Struggling Kentucky Homeowners Through
the Unemployment Bridge Program
Program offers solutions to avoid foreclosure.
FRANKFORT, Ky. – The U.S. Department of the Treasury has approved
expansion of the Unemployment Bridge Program (UBP) to help struggling Kentucky
homeowners through the services provided by Kentucky Housing Corporation (KHC).
Starting today, the UBP can now help homeowners who have a reduction in income
due to a qualifying long-term or permanent disability.
“We are happy to be able to expand our program to assist more
Kentuckians to allow them to remain in their homes,” said Brenda Walker,
managing director of Single-Family Programs at KHC. “By taking care of house
payments for a time, we allow many families to develop a budget and action plan
with our counseling partners and help them avoid foreclosure.”
This assistance is in addition to those homeowners already
eligible for the UBP due to a cut in hours or a decrease in income. While the
unemployment rate has fallen, many Kentuckians still struggle to make their house
“People are finding new work, and that shows in the unemployment
rate decrease,” said Jaime Williamson, manager of housing education and
counseling at KHC. “However, many are forced to accept work that does not pay
what they previously earned.”
The Department of Treasury made another change to the UBP,
which is effective today: recipients may
now use the entire amount of available assistance ($30,000) to bring their
house payment current, including any late fees, penalty interest, taxes, insurance,
and protective advances.
“Allowing homeowners to use the full allocation of funds to
bring their loan current is a huge benefit to those who may have fallen behind
for months on their payments,” said Walker. “Now we can make sure homeowners
get out from under the burden of past due payments and can move forward.”
The UBP is a five-year, forgivable loan option that provides
funds to lenders on behalf of qualified homeowners who in the past three years have
a loss or reduction of income of at least 15 percent due to unemployment, substantial
underemployment, or a qualifying disability. The maximum assistance per
household is $30,000 or 18 months, whichever occurs first, or until the
homeowner finds better-earning employment. Funds are available on a first-come
Borrowers may apply for the UBP through the Kentucky
Homeownership Protection Center, www.ProtectMyKYHome.org,
administered by KHC, or by calling toll-free 866-830-7868.
Kentucky Housing Corporation, the state housing finance agency, was
created by the 1972 General Assembly to provide affordable housing
opportunities. As a self-supporting, public corporation, Kentucky Housing
offers lower-than-market rate home mortgages, housing production financing,
homeownership education/counseling, rental assistance, housing rehabilitation,
and supportive housing programs for special needs populations.
For more information, contact:
Kentucky Housing Corporation | 1231 Louisville Rd., Frankfort,
502-564-7630; 800-633-8896 (KY only); TTY 711