Kentucky Housing Corporation

Homeowner Assistance Fund

Program Plan Design 8/19/2021

Page 1 of 11

Homeowner Needs and Community Engagement

What quantitative data has informed the participant’s planning?

Source(s)

1. Data provided by Treasury – Treasury provided data, contributed by a number of federal 

agencies, including information on mortgage delinquencies and forbearances, breakdowns by 

demographic factors, and concentration among mortgage servicers.

2. Data provided by CoreLogic- CoreLogic provided a 3-year comparison of Kentucky counties’ 90+

delinquencies, foreclosures, and completed foreclosures from 2018 through 2020. 

3. Data provided by Urban Institute-, Data provided by Urban Institute demonstrated an average of 

5.3% of mortgage loans overall were in forbearance. 

4. Data provided by bureau of labor statistics and workforce development-Data used to identify 

labor and employment trends in the state of Kentucky demonstrating an unemployment rate 

greater than 10%

Data Source(s): Utility/property taxes

1. County taxes: raw data of delinquent property taxes of all 120 Kentucky counties resulting in 

over $5M of reported delinquent taxes in 2020-21. 

2. Data collected by Kentucky Housing Corporation’s distressed mortgagors.

Data Source(s): Demographic Segments that have historically experienced discrimination in the 

housing or housing finance market.

1. Poe, J. (2017) Redlining Louisville: Racial Capitalism and Real Estate. This interactive story map 

details the perils often faced by minorities when seeking homeownership resulting in 

displacement and unequal opportunities to mortgage lenders.

2. KyStats.Gov: Poverty rates by County

Data Source(s): Other not listed above

1. Hardest Hit Fund (HHF) performance data: KHC operated a successful HHF program and used 

data from this program to inform the HAF program design.

Other Servicer(s):

Kentucky Housing Corporation engaged the top servicers, with at least 500 first mortgage loans served 

with the HHF program. Those servicers were as follows:

1. Kentucky Housing Corporation: 1,428 loans

2. Wells Fargo Bank NA: 938 loans

3. Bank of America: 720 loans

4. JP Morgan Chase: 702 loans
Kentucky Housing Corporation

Homeowner Assistance Fund

Program Plan Design 8/19/2021

Page 2 of 11

In each servicer meeting, KHC began with a summary of the Homeowner Assistance Fund parameters 

known at the time as well as our tentative program design. Initially, we planned a maximum mortgage 

payment assistance of $20,000, which was ultimately increased. KHC reminded each servicer that the 

hardship date is on or after 1/21/2020 and the program itself has a hard date of 9/30/2025, but that 

could mean the application window closes sooner than that to allow the final wrap up of 9/30/2025. 

KHC shared with each servicer our HAF Information request landing page link and asked each servicer to 

provide stats of their Kentucky default portfolio in follow-up to this initial call. Servicers were asked to 

highlight any pain points from the HHF period that states should actively avoid with this new program. 

Servicers approved of Kentucky’s plan to offer a fully electronic application portal with the HAF program, 

which we did not have with HHF. Both KHC and each servicer committed to co-branding marketing 

material or language to be shared with the Kentucky mortgagors in distressed, just as we did during 

HHF. 

Other HAF Participants:

Kentucky has participated in the all states’ calls hosted weekly by the NCHSA. Additionally, the 

southeastern states of Alabama, Arkansas, Florida, Georgia, Kentucky, Louisiana, Mississippi, North 

Carolina, South Carolina, Tennessee, Virginia, and West Virginia, formed a working group to share best 

practices and to brainstorm solutions to address the needs of our southeastern states. Many of the SE 

states were HHF participants so this working group also shared best practices and pain points of 

administering that program.

How has community engagement and public participation informed the participant’s 

planning?

Public Participation: Kentucky Homeowners 

On June 24, 2021, KHC surveyed over 1,000 of our mortgagors in active COVID Forbearance plans. The 

survey asked questions related to the financial need of the homeowners as it related to eligible program 

expenses. Of the 1,000+ surveyed, 169 responded. 

1. All 169 responders stated they qualified based on the hardship of decrease in income or 

increase in expenses.

2. 153 have experienced a loss of income; 16 have increased expenses.

3. If KHC brought their past due mortgage payments current, 140 could pay the payment going 

forward while 26 (15.7%) would not be able to make their house payment going forward.

a. 9 of those 26 stated they needed up to 6 months of additional assistance.

b. 13 stated they needed up to 10+ additional months.

c. 4 did not elaborate. 

4. 118 stated they were current on their internet bill; 48 (28.9% of responders), were not current.

5. We asked the 166 responders how far behind on their internet bill they were. 47 responded.

a. 20 responders were 1 month past due.

b. 23 responders were 2 months past due.

c. 2 responders were 3 months past due.

d. 2 responders were 4+ months past due on their internet bill.
Kentucky Housing Corporation

Homeowner Assistance Fund

Program Plan Design 8/19/2021

Page 3 of 11

6. We asked the homeowners if they were current on their utilities (water, electric, gas). 110 were 

current; 54 (32.9%) were not.

7. When asked which utilities were past due, the following were selected. Note, 54 responded to 

the question but multiple selections were allowed:

a. 33 were past due on water bill; the average past due was $275.

b. 47 were past due on electric bill; the average past due was $395.

c. 27 were past due on gas bill; the average past due was $220.

8. If KHC brought the utilities current, could homeowners continue their payments going forward? 

51 said yes; 3 said no.

9. When asked if they were current on their Homeowner’s Association Dues, 

a. 20 said yes, they were current;

b. 10 said they were past due; The average past due was $1,605.

c. 133 said they did not have an HOA.

10. If KHC brought the HOA current, all said they could continue payments going forward.

KHC later pushed the same survey out to the homeowners who had registered to receive additional 

information on the HAF Program as we released it. That survey was sent out on Thursday, August 5, 

2021 and was made available for one week. A breakdown of those responses are as follows:

1. All 557 responders stated they qualified based on the hardship of decrease in income or 

increase in expenses.

2. 424 have experienced a loss of income; 121 have increased expenses.

3. If KHC brought their past due mortgage payments current, 469 could pay the payment going 

forward while 58 (11.01%) would not be able to make their house payment going forward.

a. 37 of those 58 stated they needed up to 6 months of additional assistance;

b. 17 stated they needed up to 10+ additional months;

c. 4 did not elaborate. 

4. 360 stated they were current on their internet bill; 164 (31.3% of responders), were not current.

5. We asked the 164 responders how far behind on their internet bill they were. 159 responded.

a. 91 responders were 1 month past due;

b. 44 responders were 2 months past due;

c. 8 responders were 3 months past due;

d. 16 responders were 4+ months past due on their internet bill.

6. We asked the homeowners if they were current on their utilities (water, electric, gas). 311 were 

current; 208 (40.08%) were not.

7. When asked which utilities were past due, the following were selected. Note, 208 responded to 

the question but multiple selections were allowed:

a. 139 were past due on water bill; the average past due was $360.

b. 177 were past due on electric bill; the average past due was $600.

c. 94 were past due on gas bill; the average past due was $360.

8. If KHC brought the utilities current, could homeowners continue their payments going forward? 

185 said yes; 13 said no.

9. When asked if they were current on their Homeowner’s Association Dues, 

a. 53 said yes, they were current;
Kentucky Housing Corporation

Homeowner Assistance Fund

Program Plan Design 8/19/2021

Page 4 of 11

b. 43 said they were past due; The average past due was $1,636.

c. 413 said they did not have an HOA.

10. If KHC brought the HOA current, all by 3 said they could continue payments going forward.

Housing Counseling Agencies:

KHC met with its network of housing counseling and education agencies on June 24, 2021, to share 

updates to the Homeowner Assistance Fund for Kentucky. When KHC administered the HHF program, 

the housing counseling agencies served a critical need in assisting the homeowners with the application 

process and providing other counseling and education, especially to homeowners that did not qualify for 

that program. During the June 24th meeting, counseling agencies were asked to provide any pain points 

related to the previous program that they would hope to see eliminated with the HAF funding. They 

were also asked if they could be counted on once again to assist with this program.

1. Nine counseling agencies stated they would partner with KHC to provide HAF resources to 

Kentucky homeowners. 

2. 2 agencies stated they were adequately staffed; 2 agencies stated they would need to hire 

additional counselors; 3 agencies were uncertain if they would need to hire.

3. When asked to think back to any recent homeowner clients who were past due on the following 

with no access to other resources, which of the following applied: 

a. 1 agency stated a need for assistance related to Homeowners Association Dues.

b. 6 agencies stated a need for utility assistance.

c. 3 agencies stated a need for internet assistance.

d. 4 agencies stated a need for non-escrowed property taxes or homeowner’s insurance.

e. 1 agencies marked yes to a need for past due expenses but they were able to assist with 

other resources.

4. When asked for any pain points when dealing with the previous program, the following 

responses where provided:

a. Turnaround time while reviewing packages—but going fully digital should resolve this 

issue.

b. Credit reports were difficult to obtain and costly.

c. Being in a rural area, access to upload documents.

d. Too much paperwork. 

e. Qualification should be easier.

f. More efficient way to send documents.

g. Verification of Employment (VOE’s) were impossible to obtain.

h. Paper applications were a pain, especially during COVID when we all worked from 

home. Moving to a fully digital experience should make this better.
Kentucky Housing Corporation

Homeowner Assistance Fund

Program Plan Design 8/19/2021

Page 5 of 11

Housing Counseling Agencies Engaged, Chart

Tribal governments: There are no identified tribal governments in the state of Kentucky per the US 

Department of Interior office of Tribal Affairs. 

Organization

Name

Organization

Address

Organization Website Organization

Primarily Serves

LMI Households

Provider

Addresses

Impacts of

Housing

Discrimination

Apprisen Financial 

Advocates

2265 Harrodsburg Rd, 

Ste 303

Lexington, KY 40504

www.apprisen.com X X

Bell-Whitley 

Community Action 

Agency, Inc.

129 Pine Street

PO Box 159

Pineville, KY 40997

www.bellwhitley.com X X

Brighton Center 799 Ann Street

Newport, KY 41071

www.brightoncenter.com X X

Catholic Charities 3629 Church Street

Covington, KY 41015

www.covingtoncharities.org X X

Community 

Ventures 

1450 N. Broadway

Lexington, KY 40505

www.cvky.org X X

Daniel Boone 

Community Action 

Agency

11535 Shamrock Road

Manchester, KY 

40962

www.danielboonecaa.org X X

Housing Assistance 

and Development 

Services, Inc.

216 E 12th Ave

PO Box 9637

Bowling Green, KY 

42101

www.handsinc.org X X

The Housing 

Partnership Inc.

321 Guthrie Green

Louisville, KY 40202

www.wearehpi.org X X

KCEOC Community 

Action Partnership

5448 N. US 25E, Ste A

PO Box 490

Barbourville, KY 

40906

www.kceoc.org X X

Louisville Urban 

League

1535 West Broadway

Louisville, KY 40203

www.lul.org X X

LKLP Community 

Action Council, Inc.

398 Roy Campbell 

Drive

Hazard, KY 41701

www.lklp.org X X

REACH 733 Red Mile Road

Lexington, KY 40504

www.reachky.com X X

Legal Aid Society of 

Louisville

416 West Muhammad 

Ali Blvd, Ste 300

Louisville, KY 40202

www.laslou.org X X

Kentucky Legal Aid 1700 Destiny Lane

Bowling Green, KY 

42104

www.klaid.org X X

Legal Aid of the 

Bluegrass

302 Greenup Street

Covington, KY 41011

www.lablaw.org X X

Appalachian 

Research and 

Defense Fund

120 North Front Ave

Prestonsburg, KY 

41653

www.ardfky.org X X
Kentucky Housing Corporation

Homeowner Assistance Fund

Program Plan Design 8/19/2021

Page 6 of 11

Public hearings or published materials: Kentucky is not subject to any state sunset laws. Given the 

urgency to launch our program and considering the data collected to support our plan design, especially 

the direct partner and homeowner engagement, KHC feels we have adequately engaged the public 

otherwise. 

How will the participant continue to assess the needs of eligible homeowners?

KHC will actively engage participating servicers to provide co-branded materials to distressed Kentucky 

mortgagors, just as we did with the Hardest Hit Fund Program. Additionally, KHC will periodically review 

denied files to determine if criteria is unnecessarily restrictive or if we need to expand our program in 

other ways, like utility assistance. 

Will KHC update its assessment of community needs within the next year to determine whether 

it’s HAF program design should be updated to address changing needs of potentially eligible 

homeowners?

KHC will review denial reasons, seek feedback from partners such as counselors, servicers, HOA’s, etc. to 

determine if further program adjustments may be warranted to serve the needs of the Commonwealth. 

Section 3206 of the American Rescue Plan Act of 2021 has defined the eligible uses of this funding. 

What additional data would be helpful to the Participant as it seeks to assess homeowner needs 

over time?

Ongoing, periodic communication with participating servicers regarding their default Kentucky pipelines.

Program Design

What are the program design elements through which the participant will deliver HAF 

assistance to eligible homeowners?

KHC will structure the following forms of assistance with the HAF:

1. Mortgage Payment Assistance/Reinstatement

2. Payment assistance for homeowner’s insurance, flood insurance, and mortgage insurance 

3. Payment assistance for homeowner’s association fees or liens, condominium association fees, or 

common charges

4. Payment assistance for delinquent property taxes to prevent homeowner tax foreclosures.

5. Payment assistance for past due utilities (water, electric, gas).

Maximum amount of assistance per homeowner

The maximum amount of assistance per homeowner is $35,000 over all uses of funds listed above. 

Leaving the five potential uses under the same programmatic cap, allows flexibility within the uses. 

For example, all of the homeowner examples listed below could be served with Kentucky’s HAF because 

of the flexibility built into the program design:

Homeowner 1 has the following needs: 

• $20,000 in mortgage assistance/reinstatement

• $5,000 in past due HOA expenses
Kentucky Housing Corporation

Homeowner Assistance Fund

Program Plan Design 8/19/2021

Page 7 of 11

• 2,000 in past due insurance; and 

• $2,000 in past due property taxes

• $3,000 in past due utilities.

Homeowner 2 has the following needs:

• $30,000 in mortgage assistance/reinstatement

• $5,000 in past due property taxes

Homeowner 3 has the following needs:

• $30,000 in mortgage assistance/reinstatement

• No other arrearages.

Homeowner 4 has the following needs:

• Owes nothing/fully paid off mortgages

• $10,000 in past due property taxes.

• $5,000 in past due utilities.

• No other arrearages.

Eligibility Criteria

See Program Manual

Form of Assistance

The form of assistance will be secured by a grant with recourse. KHC plans to provide a two-year deed 

restriction with this grant to track homeowner retention for two years but also to provide some 

recourse should there be any fraud discovered.

Payment Requirements

Mortgage assistance/reinstatement payments will be made directly to the participating servicers, just as 

Kentucky did for the Hardest Hit Fund Program.

Payments for past due, non-escrowed homeowner’s insurance or flood insurance will be made directly 

to the insurance provider(s) on behalf of the homeowner.

Payments made for past due homeowner’s association fees or liens, condominium association fees, or 

common charges will be made directly to that association on behalf of the homeowner.

Payments made for past due, non-escrowed property taxes will be made directly to the taxing entity on 

behalf of the homeowner.

Payments made for past due utilities will be made directly to the providers on behalf of the homeowner.
Kentucky Housing Corporation

Homeowner Assistance Fund

Program Plan Design 8/19/2021

Page 8 of 11

Program Design Elements Omitted from Treasury’s Term Sheet Samples:

A HAF Participant my elect to revise its HAF Plan over time to add or subtract program design 

elements. Does the participant anticipate adding additional program design elements to this 

HAF plan within one year of this submission?

Yes, if data and the needs of Kentucky’s homeowners warrants adjustments to successfully serve the 

Commonwealth.

Documentation of Homeowner Income

Will the participant allow income to be determined by attestation and proxy? No

Will the participant allow applicants to request waivers or exceptions to documentation requirements as 

reasonably necessary to accommodate extenuating circumstances, such as disabilities, practical 

challenges related to pandemic, or lack of technological access by homeowners, knowing the participant 

is still responsible for making the required determination regarding household income and documenting 

determination? KHC will consider this on a case-by-case basis as long as waivers does not permit fraud 

to occur.

Eligible Mortgage Types

KHC will permit the following mortgage types under the HAF:

• First mortgages

• Second mortgages

• Reverse Mortgages
Kentucky Housing Corporation

Homeowner Assistance Fund

Program Plan Design 8/19/2021

Page 9 of 11

• Loan Secured by Manufactured Housing, in most 

KHC will not provide assistance to chattel loans or loans secured by lien to manufactured housing only 

unless the applicant owns the land on which the manufactured home is on so KHC may place a deed 

restriction on the property. 

Furthermore, KHC will not permit land contracts or contracts for deeds for the HAF program. In this 

state, it’s very rare to see formal contacts for deed or land contracts. The agreements are typically 

verbal in nature and difficult to document. It would also be a great challenge to document past 

due/arrearages and could lead to fraud.

How will the participant target HAF resources consistent with statutory requirements?

What efforts will be made to address barriers to HAF program participation for potentially eligible 

homeowners, including those with Limited English Proficiency or who are disabled?

Performance Goals
Kentucky Housing Corporation

Homeowner Assistance Fund

Program Plan Design 8/19/2021

Page 10 of 11

Readiness
Kentucky Housing Corporation

Homeowner Assistance Fund

Program Plan Design 8/19/2021

Page 11 of 11

Budget