FRANKFORT, Ky. — Lawmakers want to create a new revenue source to help people rebuild after the recent natural disasters in eastern and western Kentucky. 

What You Need To Know

  •  A measure that would help victims of the western and eastern Kentucky natural disasters is moving forward

  •  House Bill 448 and 360 passed through a Senate committee Monday

  •  The bills would create the Rural Housing Trust Fund

  • It allocates $20 million to help survivors rebuild their homes

Portions of House Bills 448 and 360, filed by Rep. Jason Petrie (R-Elkton), would create a $20 million rural housing trust fund. 

HB 448 would allocate $10 million from both the Eastern and Western Kentucky SAFE Funds to the new trust fund. 

“So it basically allows for public, private, and not-for-profit housing entities to begin to work on some of the folks who simply didn’t have enough insurance, didn’t have any insurance, and lost their houses,” Sen. Christian McDaniel (R-Ryland Heights) said. 

McDaniel added there is an income cap for who would qualify to receive this money. A board under the Kentucky Housing Cooperation will have the final say on how it will be spent. 

 “The initial intent is for those folks who were affected by tornadoes and floods but obviously with the structure of it, there’s going to be more opportunities for those investments to be made,” McDaniel said. 

In February, housing advocates called on the legislature to set aside more money to help rebuild flooded homes in eastern Kentucky. 

A report from the Ohio River Valley Institute and Appalachian Citizens’ Law Center estimates that could cost between $450 and $950 million.

While more money could be added to the housing trust fund next session, Sen. McDaniel says this $20 million is a good start.

“I would say that the money that’s there now will go beyond any ability of people to deliver it before we come back next time”

House bills 448 and 360 will now head to the Senate floor for a vote.

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