California Families Get More Mortgage Help from CalHFA
California Expands Mortgage Relief Program to Aid Homeowners
State Capitol Announcement: Program Evolution and Key Changes
In a recent press conference at the State Capitol, the California Housing Finance Agency (CalHFA) and NeighborWorks in Sacramento jointly unveiled the expansion of California’s mortgage relief program. Tiena Johnson Hall, Executive Director of the California Housing Finance Agency, highlighted the program’s substantial assistance to vulnerable Californians facing financial challenges due to the COVID-19 pandemic over the past year.
Expanded Eligibility Criteria
A notable change in eligibility criteria is the inclusion of homeowners with properties of up to four units. This broadens the reach of the program to a wider demographic. Furthermore, individuals with partial-claim second mortgages or loan deferrals since the start of 2020 are now eligible for relief.
Reset Delinquency Dates
For homeowners who have missed at least two mortgage payments or one property payment before March 1st of the current year, the delinquency date for payments has been reset. This measure aims to provide a fresh start for those struggling with financial setbacks.
Additional Assistance for Previous Beneficiaries
Previous beneficiaries of the program now qualify for additional funds, potentially totaling up to $80,000 in aid. This extension aims to continue supporting individuals facing challenges in meeting housing payments due to the ongoing impact of the pandemic.
Funding Source and Distribution Impact
The California Mortgage Relief program is fueled by the Federal Government’s American Rescue Plan Act’s Homeowners Assistance Fund, which allocated $1 billion for eligible homeowners nationwide in 2021. Tiena Johnson Hall reported that the program has successfully distributed federal grants and funds to over 10,000 California homeowners.
Free Application and No Repayment Obligations
Hall emphasized that applying to the program is free, and homeowners need not worry about repaying the relief funds. The program operates through the CalHFA Homeowner Relief Corporation, providing crucial financial support without imposing a financial burden on the recipients.
Addressing Racial Disparities in Homeownership
During the press conference held in the first week of Black History Month, Hall acknowledged the historical challenges faced by Black communities in homeownership. Discriminatory housing practices have contributed to disparities, resulting in less generational wealth for Black families. The program aims to address these inequities and provide essential support to those who have been disproportionately affected.
Importance of Homeownership in Building Generational Wealth
Highlighting the significance of homeownership, the U.S. Department of Housing and Urban Development emphasizes it as a crucial tool in building generational wealth. The program aligns with this perspective by offering financial relief to homeowners, particularly those facing challenges exacerbated by the pandemic.
Community Prosperity and Avoiding Foreclosure Risks
Volma Volcy, Founder and Executive Director of the Ring of Democracy, stressed the importance of securing the prosperity of neighborhoods where residents are at risk of foreclosure. Acknowledging that the displacement of a family can have far-reaching consequences, Volcy commended the success of the California Mortgage Relief Program in providing aid to those fearing the loss of their homes due to pandemic-related financial hardships.
Application Process and Further Information
For those interested, the California Mortgage Relief website provides details on eligibility assessment and the application process. The program remains a critical lifeline for homeowners grappling with the economic fallout of the ongoing pandemic.
