Homeowner Assistance Fund Aid Stops Foreclosure Nationwide

What the Homeowner Assistance Fund Is

The Homeowner Assistance Fund (HAF) is a $9.961 billion federal program created by the American Rescue Plan Act of 2021 to help households struggling with mortgage payments and other housing expenses tied to the COVID-19 pandemic. The U.S. Department of the Treasury distributed HAF money to states, the District of Columbia, territories, tribes, and the Department of Hawaiian Home Lands, each of which designed and ran its own program with federal guardrails.

How It Works

Eligible homeowners experienced a financial hardship after January 21, 2020 that affected their ability to pay housing costs. Each state set income limits (typically 150 percent of area median income or 100 percent of the U.S. median income, whichever is greater) and chose which housing costs to cover. In nearly every state, HAF funds could pay past-due mortgage payments, property taxes, homeowner's insurance, homeowner and condominium association fees, and utility bills. Payments generally went directly to the mortgage servicer, taxing authority, insurance company, or utility provider rather than to homeowners, ensuring the money cured the delinquency.

Nationwide Impact

Through June 2024, HAF-funded programs assisted over 549,000 homeowners, according to Treasury data. The program was designed with equity in mind: the majority of HAF assistance reached economically vulnerable and traditionally underserved homeowners, including low-income households, homeowners of color, and female-headed households. States reported that foreclosure filings remained below pre-pandemic levels during the years HAF was most active, and Treasury credited the program with preventing mortgage delinquencies, tax sales, utility shut-offs, and outright displacement.

How States Used the Money

States adapted HAF to their specific needs. Some examples:

• California created a $80,000-per-household grant program, the California Mortgage Relief Program, that ultimately distributed more than $900 million.
• Texas built TXHAF with $842 million, offering up to $65,000 per household for mortgages and property charges through a network of local intake centers.
• Illinois delivered nearly $299 million through ILHAF, with average grants of about $18,000 and a maximum benefit of $60,000.
• Maryland used its $248 million to pair grants up to $10,000 with zero-interest loans up to $30,000.
• Tennessee offered up to $40,000 per household, and Indiana operated a similar program with caps based on hardship type.

Each program set its own closing date as funds ran out. Many states, including Illinois, Texas, and Tennessee, have closed their HAF programs. Others, like Maryland, have continued to accept applications with the funds still available.

Why HAF Matters

HAF's design built on lessons learned from the Hardest Hit Fund (HHF), a smaller program created after the 2008 financial crisis. HAF improved on HHF by moving faster, reaching more homeowners, and focusing more heavily on vulnerable communities. Treasury has highlighted HAF as evidence that well-targeted direct aid can prevent foreclosures at scale when paired with housing counselors and legal aid.

What Homeowners Can Do Today

With many state HAF programs closed, homeowners who are behind on payments should take these steps:

• Contact the mortgage servicer immediately to request loss mitigation, such as forbearance, loan modification, or a partial claim.
• Call a HUD-approved housing counselor for free guidance. The HOPE Hotline (888-995-HOPE) connects callers with counselors nationwide.
• Check whether your state HAF program still accepts applications. A current list is maintained by the National Council of State Housing Agencies (NCSHA).
• Apply for other programs, including state property tax relief, utility assistance (LIHEAP), and local foreclosure prevention funds.

The Lasting Infrastructure

HAF built a nationwide network of housing counselors, legal aid providers, and online intake tools that continues to help homeowners navigate mortgage trouble even after most state programs have closed. That infrastructure is one of the most valuable legacies of the program and remains a first stop for homeowners at risk of foreclosure.