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Gov. Andy Beshear and Appalachian Regional Commission (ARC) Federal co-chair Gayle Manchin have announced $5.3 million will go to help recovery efforts from last July’s record flooding in Letcher and Perry counties.

The funds will provide water and sewer service to new housing developments that are considered “high-ground sites,” meaning they will be safe from future flooding events.

“We’ve promised to be there for Eastern Kentucky until every structure, home and life is rebuilt,” Beshear stated. “Housing is our top priority, and the ARC has been an incredible partner to Kentucky as we recover.”

“ARC is proud to partner with Kentucky to award these grants to our Eastern Kentucky communities to aid in the rebuilding process following last year’s devastating and historic flooding,” said Manchin. “They serve as a great example of how we work with our state partners to help communities to recover and rebuild.”

The ARC Base Program will provide $896,972 alongside $100,000 in ARC Co-Chair discretionary funds to help install water and sewer service to a new high-ground community in Letcher County. The project will install 1,900 feet of waterline and 5,500 feet of sewer line, serving ten new homes.

Over $4 million in ARC funds will go toward bringing water and sewer service to the future Sky View Estates housing development in Perry County. The funds will be matched by $4.4 million from the Eastern Kentucky SAFE funds. In the initial phase of this project, 153 homes will be built to replace homes that were lost during the 2022 flooding. The new development will be located just off Hal Rogers Parkway west of Exit 56.

Beshear has now announced three high-ground building sites in Knott, Letcher and Perry counties. He says each one is an opportunity to provide safe, affordable housing outside of the flood plain, including much-needed infrastructure and community buildings that can lift up the entire area.

Earlier this month, Gov. Beshear announced funds to support a senior housing complex in Breathitt County that was damaged in the 2022 floods.