HUD Archives: News Releases


HUD No. 10-10-06
Rhonda Siciliano
(617) 994-8355
For Release
Wednesday
October 6, 2010

HUD ANNOUNCES ADDITIONAL SUPPORT TO HELP VERMONT HOMEOWNERS STRUGGLING WITH UNEMPLOYMENT
32 States and Puerto Rico Will Receive Funds Through HUD�s Emergency Homeowners Loan Program

BOSTON - U.S. Department of Housing and Urban Development (HUD) Regional Administrator Richard A. Walega announced today that HUD will provide $4,830,215 to help struggling homeowners in Vermont through its Emergency Homeowners Loan Program (EHLP). The Dodd-Frank Wall Street Reform and Consumer Protection Act, signed into
law by President Obama in July, authorizes HUD to administer a $1 billion Emergency Homeowners Loan Program, to provide assistance for up to 24 months -- to homeowners who have experienced a substantial reduction in income due to involuntary unemployment, underemployment, or a medical condition and are at-risk of foreclosure. HUD will assist borrowers in 32 states and Puerto Rico not otherwise funded by Treasurys Hardest Hit Housing Fund program, based on the states relative share of unemployed homeowners. It is HUD's intention for the program to begin taking applications from eligible homeowners by the end of the year.

"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 Walega. "In crafting this new loan program,
HUD built on the lessons learned from Treasurys Hardest Hit initiative to design and implement a program to assist struggling unemployed homeowners avoid preventable foreclosures. Together these two initiatives represent a combined $8.6 billion investment to help struggling borrowers and in doing so further contribute to the Obama Administrations efforts to stabilize housing markets and communities across the country."

Who Will Be Helped
The program will complement existing Administration efforts to assist struggling homeowners including the Home Affordable Modification and Hardest Hit Fund initiative administered by the U.S. Treasury Department. Under the
EHLP:

  1. The borrower must be at least three month 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. The property must be the principle residence of the borrower, and eligible borrowers may not own a second
    home.
  3. The borrower must have suffered at least a 15 percent reduction in income and have been able to afford
    their mortgage payments prior to the event that triggered the loss income.

How They Will Be Helped
The HUD Emergency Homeowners Loan Program will offer a forgivable, deferred payment bridge loan (zero percent interest, non-recourse, subordinate loans) for up to $50,000 to assist eligible borrowers with their mortgage arrearages and payments on their for mortgage principal, interest, mortgage insurance premiums, taxes and hazard insurance for up to 24 months.

There will be a dual delivery approach for program administration. The first approach will delegate some of the programs administrative functions to a designated third party. The second approach will enable state housing
finance agencies (HFAs) that operate substantially similar programs to engage in relief efforts on behalf of residents
of their state:

  • Delegated approach: HUD will delegate key program administration functions to NeighborWorks an
    experienced and highly regarded national network of affiliated housing counseling agencies. Under the
    program, NeighborWorks counselors will provide 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.

  • Substantially similar state law approach: State HFAs that operate loan assistance programs that are determined by HUD to be substantially similar to the EHLP will receive allocations to fund emergency loans
    for borrowers in their states as well as payments to cover the administrative costs of performing the intake
    and housing counseling and fiscal agent functions (described above) directly or indirectly through
    subcontracts with third parties.

Borrowers living in the following jurisdictions are eligible to receive funds.

TX Texas $135,418,959
NY New York 111,649,112
PA Pennsylvania 105,804,905
MA Massachusetts 61,036,001
WA Washington 56,272,599
MN Minnesota 55,848,137
WI Wisconsin 51,540,638
MO Missouri 49,001,729
VA Virginia 46,627,889
CO Colorado 41,286,747
MD Maryland 39,962,270
CT Connecticut 32,946,864
KS Kansas 17,748,782
AR Arkansas 17,736,991
IA Iowa 17,379,343
LA Louisiana 16,691,558
UT Utah 16,577,582
OK Oklahoma 15,575,381
PR Puerto Rico 14,714,668
ID Idaho 13,284,075
NH New Hampshire 12,655,243
NM New Mexico 10,725,515
ME Maine 10,379,657
WV West Virginia 8,339,884
NE Nebraska 8,304,512
HI Hawaii 6,292,250
DE Delaware 6,048,577
MT Montana 5,710,580
VT Vermont 4,830,215
AK Alaska 3,890,898
WY Wyoming 2,346,329
SD South Dakota 2,051,563
ND North Dakota 1,320,547
Total: $1,000,000,000

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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 www.hud.gov and espanol.hud.gov.

 

 
Content Archived: May 11, 2012