Through the existing Housing Finance Agency Innovation Fund for the Hardest Hit Housing Markets, the U.S. Treasury will make $2 billion of additional assistance available to housing finance agencies (HFAs) in 17 states and the District of Columbia to implement local programs for homeowners struggling to make their mortgage payments due to unemployment.
In addition, HUD is planning to launch a complementary $1 billion Emergency Homeowners Loan Program to provide assistance – for up to 24 months – to homeowners who are at risk of foreclosure and have experienced a substantial reduction in income due to involuntary unemployment, underemployment, or a medical condition.
States that have already received money under the Hardest Hit Fund may use the additional resources to support their existing unemployment programs or they may opt to implement a new program. States that are new to the grant list must submit proposals to Treasury by September 1. Assistant Treasury Secretary Herb Allison said final approval for new programs will be made by October 3, in order to ensure program roll-outs during the fall season.
The states eligible to receive funds through this additional assistance include:
• Alabama – $60,672,471
• California – $476,257,070
• Florida – $238,864,755
• Georgia – $126,650,987
• Illinois – $166,352,726
• Indiana – $82,762,859
• Kentucky – $55,588,050
• Michigan – $128,461,559
• Mississippi – $38,036,950
• Nevada – $34,056,581
• New Jersey – $112,200,638
• North Carolina – $120,874,221
• Ohio – $148,728,864
• Oregon – $49,294,215
• Rhode Island – $13,570,770
• South Carolina – $58,772,347
• Tennessee – $81,128,260
• Washington, D.C. – $7,726,678
• Bill Apgar, HUD’s senior advisor for mortgage finance, explained that the program will work through a variety of state and non-profit entities to offer a declining balance, deferred payment “bridge loan” of up to $50,000 per eligible borrower, which can be used to make payments on their mortgage, property taxes, and insurance for up to 24 months.
• Eligible borrowers must be at least three months delinquent and have a reasonable likelihood of resuming repayment of their mortgage and related housing expenses within two years. The property must be their primary residence and the borrower cannot own a second home. They must also demonstrate a good payment record prior to the event that resulted in their reduction of income.
http://treasury.gov/press/releases/tg823.htm
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