As the number of new COVID-19 cases continues to drop, Americans are hoping that the worst of the pandemic is behind them. But a $9.961 billion federal program destined to help households who are behind on their mortgages is just getting off the ground in many states.
The Homeowner Assistance Fund (HAF) program is overseen by the U.S. Treasury Department, and administered by state housing authorities, territories, and tribes. The goal of the program is to help homeowners experiencing financial hardship after Jan. 21, 2020 avoid mortgage delinquencies and defaults, foreclosures, loss of utilities or home energy services, and displacement. Funds from the HAF may be used for assistance with mortgage payments, homeowner’s insurance, utility payments, and other specified purposes.
According to the National Council of State Housing Agencies (NCSHA), close to 30 thirty states, Guam, and Puerto Rico have launched HAF programs, while others are still working to get their programs approved and up and running.
Homeowner Assistance Fund by state
Source: National Council of State Housing Agencies.
The HAF program was created by the American Rescue Plan Act, which was passed by Congress in March of 2021. But it’s taken awhile to get the program up and running in some states, as each state is required to submit plans for approval by the Treasury Department to make sure the relief is distributed as Congress intended.
The Treasury Department issued initial guidance to states in August to use in formulating their plans, which it has continued to update. On Feb. 24, the Treasury Department issued additional guidance on the use of program income, eligible housing counseling services, administrative expenses, eligible uses of funds, and approaches for household income verification.
Some states have been administering pilot assistance programs while they finalize their full HAF programs. For more information on how federal HAF program relief is being distributed in your…