ShareThe enacted COVID-19 relief legislation, the American Rescue Plan Act, included $9.9 billion in relief for homeowners to be administered through a new Homeowner Assistance Fund (HAF). These funds, which will soon be made available to eligible homeowners through their states, may be used for assistance with mortgage payments, homeowner’s insurance, utility payments, and other specified purposes.
The HAF was created to prevent mortgage delinquencies and defaults, foreclosures, loss of utilities or home energy services, and displacement of homeowners experiencing financial hardship after January 21, 2020. The law prioritizes funds for homeowners who have experienced the greatest hardships, limits eligibility based on need, and can only be used for certain qualified expenses, outlined in more detail below.
1 A Tribe, a Tribal entity, or the Department of Hawaiian Home Lands must submit a request by September 30, 2021.
2 For a household, 150% of AMI is defined as three times the income limit for very-low incomes families, for the relevant household size, in accordance with HUD regulations.
3 For a household, 100% of area median income is defined as two times the income limit for very-low incomes families, for the relevant household size, in accordance with HUD regulations.
