Homeownership Assistance Fund COVID-19 aid disbursements nearing completion

Much of the distribution of housing assistance funds appears to be done like this it celebrates its third anniversary The next month, state housing agencies reported that they were making progress in resolving disposal issues.

It is worth noting that the Pennsylvania Housing Finance Agency last year Delay issues must be resolved through internal vendor processingIt reported Monday that it provided $10.7 million in funding to those in need last month, up from $9 million in December.

“We continue to make steady progress in providing financial assistance to homeowners,” Robin Wiessmann, executive director and CEO of the Pennsylvania Housing Finance Agency, said in a release.

The state, which has a total of $350 million available for distribution, is continuing to work to ensure applicants are registered on the existing system it used after changing providers.

Meanwhile, the latest report shows that the state’s total allocation of $9.96 billion in HAF funds was at least two-thirds complete as of the end of the third quarter, with $6.68 billion of that aid set to be used to provide assistance to struggling homeowners.half in season two.

As of this writing, about half, or 23, states have closed their programs, according to the Council of State Housing Agencies, indicating that many states have completed their allocations. NCSHA tracks the status of programs in different jurisdictions.

Processing delays and failure to submit complete applications by program deadlines appear to be key efficiency challenges for the program, which has helped mitigate the impact of the phase-out of pandemic housing relief.

Data tracked by the Treasury Department related to reasons for denials showed that 39% of homeowners faced “applications not completed within the program deadline” in the third quarter of last year.

In addition to the 32% of homeowners who were turned away for unknown reasons, that rate far exceeds the numbers for the next largest categories: those without COVID-19-related hardships, 9%; those with income qualifications, 7%; and those with such issues. The state has not defaulted on its loans. Prerequisite, 6%.

Other reasons state programs deny homeowners include delinquency amounts found to be 3 percent higher than the program maximum; the property is not a primary residence (2 percent); and the principal is higher than the compliance limit (1 percent).

The proportion of servicers who are ineligible is particularly low at 1%, suggesting public mandates requiring mortgage companies to adapt to HAFs, e.g. federal housing administrationthis Consumer Financial Protection Bureauand new york It has had broad appeal in the industry.

While states have allocated a large portion of the funds to mortgage delinquencies and defaults or foreclosures, HAF funds may also cover other housing costs, such as utilities.

Treasury also increases property-assessed clean energy loans Among the list of housing-related financial issues that states may decide to allocate HAF funds to last year.

PACE loans for clean energy home improvements, such as solar panels, are super liens that travel with the property rather than the debt that comes with living with a refugee.

The American Rescue Plan Act established the Homeowner Assistance Fund in March 2021.

In addition to providing nearly $10 billion in aid to homeowners, the plan allocates more than $21.55 billion for rent relief, in addition to other smaller grants for other forms of housing issues.

Source link

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button