Hidalgo County Property Tax and Mortgage Relief Program

A Local Pilot That Became a Statewide Model

Hidalgo County, located in the Rio Grande Valley, launched one of the earliest targeted homeowner assistance pilots in Texas. Using federal Homeowner Assistance Fund dollars from the American Rescue Plan Act, the pilot focused on two of the biggest pressure points for homeowners in the region: past-due property taxes and delinquent mortgage payments. The pilot's success was cited by state officials when Texas expanded the effort into a statewide program.

How the Pilot Worked

Under the pilot, eligible Hidalgo County homeowners could receive up to $25,000 in past-due property taxes and up to $40,000 in past-due mortgage payments. The funds were paid directly to taxing units and mortgage servicers rather than to homeowners, ensuring the money cured the delinquency and kept foreclosure and tax-sale actions from moving forward. Households had to demonstrate a financial hardship that began on or after January 21, 2020 and have incomes at or below 100 percent of the Area Median Income or the United States median income, whichever was greater.

Transition to the Texas Homeowner Assistance Fund

After the pilot, the Texas Department of Housing and Community Affairs (TDHCA) expanded the program statewide under the Texas Homeowner Assistance Fund (TXHAF). Texas received roughly $842 million in federal HAF funds, administered by TDHCA and delivered through a network of local partners. In the statewide program, each household could receive up to $65,000 in total assistance for mortgage payments, property taxes, insurance, HOA or condo fees, and utility bills.

Who Was Eligible

Eligibility mirrored the Hidalgo County pilot in most respects. Homeowners needed to own and occupy the property as a primary residence, have experienced a qualifying hardship after January 21, 2020, and fall below the income limit. The program accepted manufactured homes, condominiums, and small multifamily homes in addition to single-family homes. Funds were paid directly to the entity owed the money (mortgage servicer, county tax office, insurance company, or utility).

How to Apply and Where to Get Help

Homeowners applied through TexasHomeownerAssistance.com. The state contracted with 32 subrecipient organizations, collectively operating from more than 160 physical locations, to provide application intake, housing counseling, and legal assistance. Hidalgo County residents could also call the Hidalgo County Community Service Agency at 956-383-6240 for local guidance. A toll-free, multi-language state hotline at 833-651-3874 handled general questions.

Program Status

Because demand outpaced supply, the state closed the TXHAF application portal at midnight on October 9, 2023. Applications submitted before that deadline were processed, and funding was committed to eligible homeowners in the order they applied. Hidalgo County homeowners who missed the deadline and are still behind on mortgage or tax payments should contact their mortgage servicer, apply for any local emergency assistance still operating, or reach out to a HUD-approved housing counselor. The county's Property Tax Assistance office also maintains information on installment plans, deferrals for seniors, and disabled homeowners under Texas Property Tax Code.

Lasting Impact

Hidalgo County's pilot demonstrated that a locally run HAF program can reach homeowners in heavily immigrant, Spanish-speaking, and lower-income communities who might otherwise miss out on federal relief. Its approach of pairing mortgage and property tax aid in a single application influenced the broader TXHAF design.