Northern Kentucky-based Welcome House is among Kentucky homeless service organizations awarded a portion of $23 million in funding for housing development projects and eviction assistance that will serve homeless, low-income and elderly Kentuckians.

The money is a reallocation of Emergency Rental Assistance (ERA2) funds awarded through the American Rescue Plan Act, which required all funds be spent by September 2025.

Kentucky Housing Corporation, the state housing finance agency, ran the Team Kentucky Healthy at Home Eviction Relief Fund throughout COVID and continues to operate the Eviction Diversion Program assisting Kentuckians with a court-ordered eviction. Based on utilization rates, KHC projected having surplus funds that would not be spent by the end of September, which it would have to return to the U.S. Treasury.

“We did not want to risk losing these funds,” said Winston Miller, KHC executive director and chief executive officer. “As an organization, we surveyed our partners and identified several projects that could best serve the needs of the state.”

The $23 million was awarded as follows:

$16.5 Million to Affordable Rental Development

• This will fund three affordable rental housing projects:

• Town View Apartments, a 24-unit project in Hyden (Leslie County)
• 17 duplexes (34 units) in Owsley County
• Wellington Park Apartments, 45 “co-housing” units in Lexington for elderly residents.

• Some of these projects were previously funded in part by federal Low-Income Housing Tax Credits (LIHTC). The developers agreed to swap LIHTC for ERA2 funds, which frees up the credits to fund more affordable housing projects.

• KHC recently released a study citing a housing gap of 101,569 rental units throughout the state based on population trends, job growth, housing starts and other factors. This infusion of $16.5 million into rental housing development will help to offset that gap.

• To learn more about the Kentucky Housing Supply Gap Analysis, visit

$6.5 Million to 10 Homeless Service Providers

• KHC originally awarded ERA2 to 15 nonprofits who serve Kentuckians experiencing homelessness, paying for hotel/motel stays, lease-up assistance, short-term rent assistance, utility deposits, utility assistance, and housing stability services.

• These funds are more flexible and allow partners to assist Kentuckians who may not otherwise qualify for assistance.

• Many partners will run out of funds in spring/summer 2024 unless we allocate additional funds, and this $6.5 million allocated to 10 organizations will get them through the end of September 2025.

• ERA2 funds have made a significant difference in Kentucky, serving 978 individuals and 531 households through ERA2 Rapid Re-Housing and 1,336 individuals and 576 households through ERA2 Homeless Prevention initiatives.

Kentucky Housing Corporation

Welcome House receives more than $2.1 million in state ERA2 funds to combat homelessness in NKY