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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 payments.

“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 first-served basis. 

Borrowers may apply for the UBP through the Kentucky Homeownership Protection Center,, 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.

  Kentucky Housing Corporation prohibits discrimination based on race; color; religion; sex; national origin; sexual orientation; gender identity; ancestry; age; disability; or marital, familial, or veteran status.