Flooding Highlights Urgent Need for Smarter Federal Housing Investment in Central Appalachia

News | February 18, 2025

Over the past weekend, severe flooding devastated communities across Kentucky, Southern West Virginia, Southwest Virginia, and Tennessee. Once again, our region faces loss and uncertainty. While Fahe and its partners are poised to help communities recover, long-term resilience depends on strategic federal investment in housing.

Central Appalachia’s Housing Crisis

Decades of underinvestment, an aging housing stock, and dwindling federal support have left many families struggling to find safe, affordable homes. The challenges include:

  • Limited Availability: Affordable homes are scarce, making it harder for first-time buyers to compete.
  • Aging Homes: Nearly 500,000 people live in pre-1930 homes or have extremely low incomes.
  • Declining Construction: Affordable home production has plummeted from 500,000 units annually in the 1970s to fewer than 50,000 in 2020.
  • Loss of Housing Stock: Between 2015-2021, 190,000 homes were removed, further tightening supply and raising costs.
  • Investment Disparity: Appalachia receives less housing investment compared to other regions, stalling development.

A Smarter Federal Investment Approach

Rather than debating whether to cut or maintain federal housing programs, the focus should be on making them more effective. Fahe’s experience proves that when federal funding aligns with local leadership and community-driven solutions, results improve. Nonprofit leaders like Fahe should be consulted for our expertise in navigating complex systems to deliver proven results.

Housing Can’t Wait: A Model for Rapid Recovery

Following the 2022 Eastern Kentucky floods, Fahe and its partners launched Housing Can’t Wait, building and rehabilitating over 400 homes and providing muck-outs, minor repairs, and essential home improvements for 1,000 households—outpacing traditional disaster relief efforts. This initiative demonstrates that coordinated local-state-federal partnerships can deliver faster, better outcomes. Plans are underway to expand this model, with 665 new homes in development across four counties.

Supporting Families in Rural America: A Federal Program That Works

The USDA 502 Direct Loan program successfully broadens homeownership access with 100% financing and ultra-low interest rates. Fahe has helped thousands secure these loans, ensuring homeownership remains a key driver of economic mobility. By working closely with the USDA and community lenders, we streamline inefficiencies and maximize impact at no additional cost to taxpayers.

Fahe’s Proven Impact & Call to Action

Fahe and its 50+ nonprofit members have demonstrated the power of sustained, community-driven investment:

  • $1 billion invested in local communities
  • 30,000 housing units built or rehabbed, with a goal of 60,000 by 2030
  • Strategic federal, private, and philanthropic funding leveraged to drive impact in persistently poor rural areas

Investing in housing strengthens communities by fostering wealth-building through homeownership, job creation, workforce retention, and improved health and education outcomes. We urge policymakers and funders to move beyond short-term fixes and support proven, long-term strategies that ensure stability and growth for Appalachian communities.

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Photo by: Josh Deaton – Jackson, KY 2/16/2025