Eviction diversion program may need funding boost to continue

During its May 5th Social Services and Public Safety Committee, Councilmembers will hear an update on the work of a housing stability program aimed at helping people facing eviction stay in their homes.

As a presentation will show, the program supports a small amount of targeted assistance – typically under $2,000 per household – to prevent eviction, utility shutoffs and homelessness. It does this at a cost comparable to or less than one month of emergency shelter.

However, the program is also seeking a more steady source of funding.

According to presentation materials, current funds are expected to "run out in the coming months." Mayor Linda Gorton has proposed spending $400,000 in the coming fiscal year's budget to continue the program, though it's previously been funded at a higher level.

The Mayor has described the coming budget as "challenging," but funding the program could come up in spending discussions between Council and the Mayor's administration.

How does the housing stability services program work?

The program works as a grant to Legal Aid of the Bluegrass helping to support:

• Eviction prevention and diversion.
• Assistance and representation in eviction court.
• Mediation for Lexington Housing Authority tenants facing eviction.

It's aimed at Fayette County households facing eviction or the threat of eviction.

The program got its start in 2023 with funding from the original federal Emergency Rental Assistance program in response to the COVID-19 pandemic.

In 2024, after federal grants ran out, it moved to the city's General Fund budget, which covers most of the basic services Lexington provides to its residents. The program was funded at $500,000.

In December 2025, another $150,000 was earmarked to support the program through August 2026.

Additionally, the presentation shows the program is seeing results, including:

• 150–300 households assisted annually.
• $800–$2,000 average assistance per household.
• About 7,225 individuals served.
• High success rate in housing stabilization, typically 70–90% of participants.
• Cost efficiency: Comparable to or less than one month of emergency shelter.

The May 5th Social Services and Public Safety Committee will take place at 1 p.m. in the Council Chamber of Lexington's Government Center at 200 East Main Street.