The U.S. Department of Housing and Urban Development (HUD) has announced federal disaster assistance for Kentucky following severe storms, straight-line winds, and tornadoes that occurred on May 16-17, 2025. This move aims to help the state recover from significant damage to homes and communities.
HUD Secretary Scott Turner stated, “HUD serves every American and works alongside communities to help rebuild homes, neighborhoods, and businesses after severe storms. To support Kentuckians during this time of need, HUD is providing financial flexibility and disaster recovery resources to affected communities.”
Kentucky Governor Andy Beshear expressed appreciation for the support: “After each disaster Kentucky has faced, we have made a promise to rebuild every structure, home and life that was affected. HUD’s support will help us keep that promise by giving our families and community programs more opportunities when it comes to financing homes damaged or lost in the May tornados.”
President Trump declared a major disaster for Kentucky following these events.
In response, HUD has introduced several measures:
- A 90-day moratorium on foreclosures for mortgages insured by the Federal Housing Administration (FHA), as well as those under the Section 184 Indian Home Loan Guarantee program for Native American borrowers in areas covered by the presidential disaster declaration. There is also an automatic 90-day extension for Home Equity Conversion Mortgages.
- The Section 203(h) program offers FHA insurance to victims whose homes were destroyed or severely damaged, allowing eligible borrowers access to full financing including closing costs.
- Through the Section 203(k) loan program, individuals can finance both home purchase or refinancing along with necessary repairs under a single mortgage.
- Information about available housing units through public housing agencies and multi-family owners will be shared with FEMA and state officials. HUD will also provide subject matter experts regarding its programs.
- Community Planning and Development grantees using funds from various programs such as CDBG, HOPWA, CoC, ESG, HOME Investment Partnerships Program, and HTF may apply for administrative flexibility due to the Major Disaster Declaration (DR 4875-KY). More details are available through local Community Planning and Development Field Offices.
- Public Housing Agencies can request waivers or other flexibilities related to disaster relief if located within a presidentially declared Major Disaster area. Guidance is provided in recent Federal Register notices on disaster relief.
- HUD-approved housing counseling agencies are prepared to assist affected residents with determining their needs and available resources. Services include foreclosure prevention counseling at no cost regardless of mortgage type; assistance is accessible online or via phone in multiple languages.
- For concerns about housing discrimination following disasters, individuals can contact HUD’s Office of Fair Housing and Equal Opportunity by phone or through its website complaint portal. Support is also available via relay services for those who are deaf or hard of hearing.
These steps are intended to give homeowners greater access to recovery resources while ensuring protections against foreclosure during this period.
