On April 14, the Department of the Treasury released guidelines addressing the Homeowner Assistance Fund (HAF) program that was created through passage of the American Rescue Plan Act of 2021. The purpose of the HAF is 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. Funds from the HAF may be used for assistance with mortgage payments, homeowner’s insurance, utility payments, and other specified purposes. The law prioritizes funds for homeowners who have experienced the greatest hardships, leveraging local and national income indicators to maximize the impact.
The Homeowner Assistance Fund provides:
- A minimum of $50 million for each state, the District of Columbia, and Puerto Rico
- $498 million for Tribes or Tribally designated housing entities and the Department of Hawaiian Home Lands
- $30 million for the territories of Guam, American Samoa, the U.S. Virgin Islands, and the Commonwealth of the Northern Mariana Islands
You can find more information on the Homeowner Assistance Fund through the resources below:
GFOA’s Federal Liaison Center will continue to monitor guidance issued by federal agencies.