HUD Archives: News Releases

HUD No. 11-047
Lemar Wooley
(202) 708-0685
For Release
April 1, 2011

State expected to take applications in early April

WASHINGTON - U.S. Department of Housing and Urban Development (HUD) Secretary Shaun Donovan today
approved the State of Pennsylvania's bid to administer HUD's Emergency Homeowner Loan Program (EHLP), a bridge loan program designed to help unemployed families pay their mortgages. HUD determined Pennsylvania's Housing Finance Agency's mortgage bridge loan program is "substantially similar" to HUD's program, thereby allowing the State to begin implementing the program itself.

Late last year, HUD awarded $1 billion to 32 states and Puerto Rico, including $105 million to the State of Pennsylvania, to provide emergency assistance to homeowners at risk of foreclosure due to a substantial reduction
in income brought on by layoff, underemployment, or a medical condition. With today's approval, Pennsylvania is expected to begin accepting applications from distressed homeowners in early April.

"The Emergency Homeowner Loan Program will provide limited and targeted assistance to help working families get back on their feet and keep their home while they look for work," said Secretary Donovan. "We are pleased to get
the program off the ground in Pennsylvania, which is already working to help keep families in their homes during difficult economic times."

"Congressman Fattah and I worked tirelessly to create a national program based on Pennsylvania's successful HEMAP program, which has a proven track record of keeping people in their homes," U.S. Senator Bob Casey said. "In Pennsylvania, 45,474 families have been saved from foreclosure because of the HEMAP program. With the additional funding released today thousands of families will be able to keep their homes."

"The $105.8 million means real help for real people and it comes at an appropriate time, as hundreds of Pennsylvania homeowners are facing eminent foreclosure," said Congressman Chaka Fattah. "The Obama Administration and Secretary Donovan are to be commended for their commitment and confidence in a program that has proven success."

"I am very pleased that the Obama administration has included Pennsylvania in the EHL Program," said Congressman Robert A. Brady. "It will provide much needed bridge loans for many of the out of work families facing foreclosure so that they can stay in their homes. This billion dollar program will not only help those who are at risk of losing their homes but it also represents the bridge that will hopefully lead to steadying the housing markets and neighborhoods and communities throughout the nation."

EHLP was created by the Dodd-Frank Wall Street Reform and Consumer Protection Act. The law authorized HUD's Secretary to allow funds to be administered by states that have an existing program that provides substantially
similar assistance to homeowners. HUD found Pennsylvania is administering an equivalent program and the grant
funds may be used for reasonable administrative costs and to provide EHLP loans to homeowners in the state.

HUD's Emergency Home Loan Program will work through a variety of state and non-profit entities and will offer a declining balance, deferred payment "bridge loan" (zero percent interest, non-recourse, subordinate loan) for up to $50,000 to assist eligible borrowers with payments on their mortgage principal, interest, mortgage insurance, taxes and hazard insurance for up to 24 months.

Under the program, eligible borrowers must:

  1. Be at least three months delinquent in their payments and have a reasonable likelihood of being able
    to resume repayment of their mortgage payments and related housing expenses within two years;

  2. Have a mortgage property that is the principal residence of the borrower; and

  3. Demonstrate a good payment record prior to the event that produced the reduction of income.

HUD determined that 27 states will use the delegated approach to program administration. Under this approach, HUD will delegate key program administration functions to an experienced and highly regarded national network of affiliated housing counseling agencies. Under the program, nonprofit housing counselors who are part of the National Foreclosure Mitigation Counseling Program administered by NeighborWorks® America will coordinate intake counseling, document preparation and outreach functions. HUD will also use it delegation authority to contract with an experienced entity to provide loan servicing and fiscal control functions such as collecting payments from homeowners, distributing payments to servicers, and managing loan balances.

HUD will announce additional details and program specifics for the delegated approach states when NeighborWorks® America launches the program in the coming weeks.


HUD's mission is to create strong, sustainable, inclusive communities and quality affordable homes for all. HUD is working to strengthen the housing market to bolster the economy and protect consumers; meet the need for quality affordable rental homes: utilize housing as a platform for improving quality of life; build inclusive and sustainable communities free from discrimination; and transform the way HUD does business. More information about HUD and its programs is available on the Internet at and You can also follow HUD on twitter @HUDnews, on facebook at, or sign up for news alerts on HUD's News Listserv.


Content Archived: April 24, 2013