The Michigan Homeowner Assistance Fund, known as MIHAF, was the state's main federal COVID-19 mortgage relief program. Administered by the Michigan State Housing Development Authority, MIHAF helped homeowners who had fallen behind on mortgage, property tax, or utility payments because of a pandemic-related hardship.

Program Origins

MIHAF was created under section 3206 of the American Rescue Plan Act of 2021, which established a nationwide Homeowner Assistance Fund to help families facing financial hardships tied to COVID-19. Every state and territory received an allocation of the roughly $10 billion total. Michigan's share was used to stand up MIHAF and reach residents who might otherwise lose their homes.

The program was aimed squarely at preventing foreclosures, defaults, and the loss of utilities or home energy services for homeowners whose hardship began on or after January 21, 2020, the date the federal pandemic emergency period is officially measured from.

Who Qualified

To be eligible, a homeowner needed to meet several tests. Household income had to be equal to or below 150% of the area median income for the county where the home was located. The applicant had to currently own and occupy the home as a primary residence. And the household had to show a qualified pandemic-related financial hardship after January 21, 2020, such as a job loss, a reduction in hours, a serious illness in the family, or higher child care or health-related costs.

The program covered a wide set of property types, including single-family homes, condominiums, manufactured homes, and in some cases properties under land contract.

What MIHAF Paid For

MIHAF funds covered a range of housing-related costs rather than only principal and interest on a mortgage. Eligible uses included delinquent mortgage payments, including reinstatement to bring a loan current, delinquent property taxes, escrow shortages tied to insurance or taxes, delinquent land contract payments, delinquent payments on mobile home consumer loans or park lot rent, and in some cases utility arrears that directly threatened habitability.

Assistance was paid directly to the servicer, tax collector, or utility in most cases rather than to the homeowner. That structure protected the funds from being diverted and ensured the delinquent account was actually brought current.

Results and Reach

Since the program's launch in February 2022, MIHAF disbursed more than $200 million in assistance statewide, with more than 26,000 Michigan residents receiving funding. The average award was roughly $7,600 per household. More than $99 million went to mortgage delinquency, and roughly $63 million to delinquent property taxes, with the balance covering other allowable categories.

Those numbers place MIHAF among the larger state-level HAF programs in terms of households served. The program's success rested on a mix of direct outreach, partnerships with housing counselors, and steady collaboration with mortgage servicers.

Applying to the Program

Michigan homeowners applied through MSHDA's online portal. The application required proof of identity, proof of income, documentation of the hardship, and information about the mortgage or other account that was delinquent. A housing counselor could help walk applicants through the process, and in some cases MSHDA assigned internal staff to help complete applications that had been started but not finished.

Because the program was funded with a fixed federal allocation, applications were ultimately capped. MSHDA announced in November 2023 that the application period would close on December 8, 2023 as the state moved to spend remaining funds on applications already in the pipeline.

Why the Program Mattered

Foreclosure has long-term financial and emotional consequences. Even one missed payment can trigger late fees, credit damage, and a path toward formal foreclosure if the arrears are not addressed. For a household whose hardship was caused by a pandemic-era job loss, reinstatement assistance provided a way to catch up and stabilize before permanent damage occurred.

MIHAF was also important for property tax delinquency. In Michigan, unpaid property taxes can progress to tax foreclosure in a relatively short time compared with mortgage foreclosure. Using MIHAF to cover delinquent taxes saved some homeowners whose mortgages were technically current but whose tax arrears threatened their home.

Working With Servicers

One of the operational challenges for any Homeowner Assistance Fund program was coordinating with hundreds of mortgage servicers. MIHAF worked with servicers to confirm loan status, accept assistance payments, and post them correctly. Homeowners who applied were generally asked to stay in contact with their servicer during the process to avoid foreclosure steps continuing while the application was under review.

The U.S. Treasury encouraged servicers to pause certain foreclosure actions for borrowers with pending HAF applications, and most major servicers set up specific procedures for that purpose.

Life After MIHAF

With MIHAF's application period closed and funds spent down, Michigan homeowners who still face financial hardship need to rely on other tools. Mortgage servicers can offer loss-mitigation options including forbearance, repayment plans, and loan modifications. HUD-approved housing counselors provide free help in working with servicers and evaluating options.

For property tax delinquency, county treasurers often have payment plans and state-level Step Forward programs that operate separately from MIHAF. Utility hardship programs and weatherization assistance can address energy-bill pressure.

Final Thoughts

MIHAF provided a critical backstop during a difficult period and helped tens of thousands of Michigan households keep their homes. The lesson from the program is that well-targeted federal housing support, combined with active state administration, can prevent a wave of foreclosures when shocks hit. Homeowners facing hardship today should still reach out early to their servicer and a HUD-approved counselor to explore any remaining options.

Michigan Homeowner Assistance Fund: Foreclosure Relief Program