Connecticut Launches Homeowner Assistance Program
The Connecticut Homeowner Assistance Fund program, called MyHomeCT is now open! The program helps homeowners avoid foreclosures for nonpayment of mortgages and other foreclosures for reasons such as back taxes, insurance, and condo association fees. It is funded by the American Rescue plan which awarded the State of Connecticut with $123 million in federal money. Homeowners may be eligible for one or more grants, not to exceed the MyHomeCT program maximum award of $30,000.00. All assistance payments will be made on behalf of the homeowner directly to the mortgage servicer or other party to whom the funds are owed.
The CT Department of Housing is the responsible entity for the program and has designated the Connecticut Housing Finance Authority (CHFA) to administer it on its behalf. Approximately $4.9 million was distributed through the pilot program, with approximately $14 million set aside for administrative costs. There are about $104 million in rewards left in the entire program.
To qualifying Connecticut homeowners who have experienced financial difficulty as a result of the COVID-19 epidemic, the MyHomeCT Program will grant reinstatement, up to 12 months of forwarding payments, or a combination of both. Homeowners must live in the state of Connecticut and occupy the property as their primary residence. Second homes, vacation homes, or investment properties are not eligible for assistance under MyHomeCT. The property must be an owner-occupied 1-to-4 unit house, condominium, or manufactured home. Household income must be equal to or less than 150% of the area median income (AMI), adjusted for household size. In comparison to the entire program, the pilot program had lower income limits and fewer mortgage servicers. The program has 51 participating mortgage servicers, and you can view the whole list here.
According to its official site, the MyHomeCT program offers two main types of assistance:
- Mortgage Assistant Grants
- One-Time: Mortgage reinstatement for homeowners who have fallen behind on their payments but are still able to make monthly payments.
- Ongoing: Mortgage aid for up to 12 months for homeowners who are unable to make their payments in the future. If there is an arrearage (total overdue amount), assistance might be used to remedy it.
- Non-Mortgage Assistance Grants
- One-Time: Payment of delinquent qualifying non-mortgage bills to bring them current on behalf of a homeowner who can afford to pay these expenses in the future after they are caught up.
- Ongoing: Homeowners who are unable to make their approved non-mortgage expense payments in the future may be eligible for up to 12 months of help. If there is an arrearage (total overdue amount), assistance might be used to remedy it.
For either program, qualified expenses include:
- non-escrowed (not included in mortgage payment) real estate taxes (2018 Grand List forward)
- non-escrowed (not included in mortgage payment) homeowners’ insurance and flood insurance
- water and sewer liens
- ground lease or lot payments
- condominium and/or homeowners’ association fees
- condominium and/or homeowners’ association special assessments
- fees that were advanced by the loan servicer/mortgage company on behalf of an applicant with a reverse mortgage
“We worked specifically with a set number of servicers, and we also focused on a certain area median income,” said Marcus Smith, the finance authority’s director of research, marketing, and outreach. “We wanted to make sure that lower-income folks had access.”