What Is The Homeowner Assistance Fund?

The Homeowner Assistance Fund was launched by the federal government in an effort to help homeowners across the United States. In addition to mortgage payments, the HAF may also apply to homeowners association dues in some states.

What Is the Homeowner Assistance Fund?

The COVID-19 pandemic left a lot of Americans jobless or with reduced work. As a response, the federal government created the American Rescue Plan Act, which spawned the Homeowner Assistance Fund. The fund itself aims to help struggling homeowners and prevent mortgage delinquencies, foreclosures, and loss of utilities.

The American Rescue Plan Act provides up to $9.961 billion in assistance to homeowners. Each participating state will receive a minimum of $50 million, with funds also set aside for tribal governments, the District of Columbia, Puerto Rico, Guam, the U.S. Virgin Islands, American Samoa, and the Commonwealth of the Northern Mariana Islands.

List of Participating States

To participate in the Homeowner Assistance Fund, the federal government required each state to submit a plan for approval. The deadline passed on July 21, 2021. As of writing, most programs received approval from the U.S. Treasury Department and are now active. But, there are some states that are still in their pilot rounds for their programs or that still have inactive programs despite receiving approval from the federal government.

*Note: No information is available for Idaho and Utah. Homeowners in these states should directly inquire with their state agency.

Participating States With Active HAF Programs

The following states have received approval for their respective HAF plans and are currently implementing the program:

• Alabama – Alabama Housing Finance Authority
• Arizona – Arizona Department of Housing
• Arkansas – Arkansas Development Finance Authority
• California – California Housing Finance Agency
• Georgia – Georgia Department of Community Affairs/Georgia Housing Finance Authority
• Hawaii – Hawaii Housing Finance and Development Corporation
• Kentucky – Kentucky Housing Corporation
• Louisiana – Louisiana Housing Corporation
• Maryland – Maryland Department of Housing and Community Development
• Nebraska – Nebraska Investment Finance Authority
• New Jersey – New Jersey Housing and Mortgage Finance Agency
• New York – New York State Homes and Community Renewal
• North Carolina – North Carolina Housing Finance Agency
• Oklahoma – Oklahoma Housing Finance Agency
• Pennsylvania – Pennsylvania Housing Finance Agency
• Rhode Island – Rhode Island Housing
• Tennessee – Tennessee Housing Development Agency
• Vermont – Vermont Housing Finance Agency
• Virginia – Virginia Housing Development Authority

Participating States With HAF Programs in Their Pilot Rounds

The following states have received approval for their respective HAF plans and are currently in their pilot rounds of the program:

• Colorado – Colorado Housing Finance Authority
• District of Columbia – District of Columbia Housing Finance Agency
• Florida – Florida Housing Finance Corporation
• Massachusetts – Massachusetts Department of Housing and Community Development
• Michigan – Michigan State Housing Development Authority
• Mississippi – Mississippi Home Corporation
• Montana – Montana Housing
• Nevada – Nevada Housing Division
• Ohio – Ohio Housing Finance Agency
• Oregon – Oregon Housing and Community Services
• Texas – Texas Department of Housing and Community Affairs
• Wyoming – Wyoming Community Development Authority

Participating States With Currently Inactive HAF Programs

The following states have received approval for their respective HAF plans but have yet to implement or deploy their programs as of writing:

• Alaska – Alaska Housing Finance Corporation
• Connecticut – Connecticut Housing Finance Authority
• Delaware – Delaware State Housing Authority
• Illinois – Illinois Housing Development Authority
• Indiana – Indiana Housing & Community Development Authority
• Iowa – Iowa Finance Authority
• Kansas – Kansas Housing Resources Corporation
• Minnesota – Minnesota Housing
• Missouri – Missouri Housing Development Commission
• New Hampshire – New Hampshire Housing Finance Authority
• New Mexico – New Mexico Mortgage Finance Authority
• South Carolina – South Carolina State Housing and Finance Development Authority
• South Dakota – South Dakota Housing Development Authority
• Washington – Washington State Housing Finance Commission
• West Virginia – West Virginia Housing Development Fund
• Wisconsin – Wisconsin Housing and Economic Development Authority

Does the Homeowner Assistance Fund Apply to HOA Dues?

The Homeowner Assistance Fund is designed to help homeowners who are struggling financially. But, this does not always include assistance with HOA dues. Only a handful of states have submitted plans that make dues and assessments eligible for the fund. These are Arizona, Hawaii, Nebraska, Oklahoma, Kentucky, Tennessee, Virginia, North Carolina, Alabama, Georgia, New York, and Vermont.

In these states, homeowners in HOA communities can apply for the fund to pay for HOA and condo association fees. These fees are considered housing expenses, and assistance from the fund can prevent delinquencies and foreclosures. As many HOA residents know, failure to pay their HOA dues can result in serious consequences, which can include late fees, liens, and foreclosures, too.

Who Qualifies for the Homeowner Assistance Fund?

The U.S. federal government has made the HAF available to many homeowners. Not all homeowners will qualify to receive help from the HAF, though.

Only homeowners who have incomes below 150$ of the median income in the area and who have suffered financially after January 21, 2020, may avail of the funds. Financial hardships can include but are not necessarily limited to loss of employment or heavy healthcare expenses.

Homeowners who feel that they qualify for the Homeowner Assistance Fund for their HOA dues should first contact their association board. These homeowners should ask their boards for alternative options for paying their dues. It is important that homeowners document these interactions with their boards as they can use them as supporting evidence when applying for aid from the Homeowner Assistance Fund.

The Bottom Line

The Homeowner Assistance Fund is designed to help homeowners across the United States who have suffered financial hardships as a result of the COVID-19 pandemic. It has the main goal of preventing delinquencies and foreclosures, primarily when it comes to mortgage payments and loss of utility services. But, several states have also included assistance with homeowners association dues payments as part of their HAF plans. To know more about your state’s Homeowner Assistance Fund, contact your state agency.

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