New York Launches First-in-the-Nation $539M Homeowner Assistance Fund for Pandemic Relief

On December 6, 2021, Governor Kathy Hochul announced that New York had become the first state in the nation to receive U.S. Department of the Treasury approval to launch its Homeowner Assistance Fund (HAF), a $539 million pandemic-relief program aimed at helping eligible homeowners at risk of foreclosure or displacement due to COVID-19 financial hardship.

Program Overview

The New York State Homeowner Assistance Fund was authorized by the federal American Rescue Plan Act, which allocated $9.961 billion nationally to help homeowners struggling with mortgage delinquencies, property taxes, utility bills, and other housing-related expenses tied to the pandemic. New York's $539 million share was the first tranche of HAF dollars approved for state-level deployment.

The program targets low- to moderate-income homeowners who are behind on:

• Mortgage payments
• Property taxes
• Water and sewer bills
• Cooperative or condominium maintenance fees
• Homeowner's insurance premiums
• Other qualifying housing costs

Who Is Eligible

To qualify for assistance through the New York HAF, applicants generally must:

• Have household income at or below 100 percent of their county's Area Median Income (AMI)
• Be at least 30 days delinquent on monthly housing payments for their primary residence
• Own and occupy a one- to four-unit home, condominium, cooperative, or manufactured home in New York State
• Have experienced a qualifying financial hardship associated with the COVID-19 pandemic on or after January 21, 2020

Application Timeline

While the program was announced and approved in early December 2021, applications opened on Monday, January 3, 2022. The phased rollout was designed to prioritize the most vulnerable homeowners, including those facing imminent foreclosure, tax lien sale, or loss of utility service.

Why It Matters

New York's early launch set a template for other states, many of which followed in early 2022 with their own HAF-funded programs. The pandemic placed significant pressure on homeowners who lost income due to job losses, reduced hours, or health-related disruptions, and HAF was designed specifically to prevent a wave of post-pandemic foreclosures from repeating the damage caused by the 2008 housing crisis.

Homeowners in other states should check with their state housing finance agency to confirm whether and when their local HAF program opened, as program rules, income limits, and maximum assistance amounts vary by state.