Michigan Homeowner Assistance Fund Distributes $114 Million in Year-One Aid

A Lifeline for Thousands of Michigan Homeowners

The Michigan State Housing Development Authority (MSHDA) marked a significant milestone in early 2023, announcing that its Homeowner Assistance Fund (MIHAF) program had distributed more than $114 million in aid during its first year of operation. Launched in February 2022 using funds authorized by the federal American Rescue Plan Act, the program has become one of the state's most impactful tools for preventing pandemic-related foreclosures and housing displacement.

Over the course of the program's first twelve months, MIHAF approved assistance for thousands of Michigan households, with the average award hovering around $15,000 per approved applicant. The funds were directed toward homeowners who experienced financial hardship directly or indirectly tied to the COVID-19 pandemic, including job loss, reduced hours, medical expenses, and the death of a primary wage earner.

How the Program Works

MIHAF was established as part of a $9.961 billion federal allocation under the American Rescue Plan Act's Homeowner Assistance Fund, which sent nearly $243 million to Michigan for distribution through MSHDA. The program provides grants, not loans, meaning recipients do not have to repay the assistance as long as they meet eligibility requirements at the time of application.

Eligible homeowners can receive aid covering a broad range of housing-related expenses:

• Past-due mortgage payments and reinstatement costs
• Delinquent property taxes
• Homeowners insurance premiums
• Flood insurance and mortgage insurance
• Condominium and homeowners association fees
• Delinquent utility payments, including water, gas, electric, and internet
• Manufactured home lot rent and chattel loan payments

To qualify, applicants must own and occupy a Michigan home as their primary residence, have household incomes at or below 150% of the Area Median Income, and demonstrate a qualifying pandemic-related hardship that occurred after January 21, 2020.

Impact by the Numbers

The $114 million figure represents a substantial acceleration from the program's slower early months, when MSHDA worked to build out application processing infrastructure, partner with housing counselors, and coordinate with mortgage servicers statewide. By the one-year mark, processing times had improved considerably, and the state had onboarded dozens of HUD-approved housing counseling agencies to help applicants navigate the process.

MSHDA officials noted that the program had reached homeowners in every county in Michigan, with particularly heavy uptake in Wayne, Oakland, Macomb, Genesee, and Kent counties — areas that had been hit hardest by pandemic-era job losses and where housing instability had been most acute. The agency emphasized that nearly 70% of funds went to households earning less than the Area Median Income, indicating the program was reaching the lower-income homeowners most at risk of losing their homes.

Preventing a Foreclosure Wave

Housing advocates across Michigan credited MIHAF with helping to prevent what many had feared would become a post-pandemic foreclosure crisis. As federal foreclosure moratoriums expired and mortgage forbearance programs wound down throughout 2022, the influx of targeted assistance helped bridge the gap for homeowners still recovering from pandemic financial shocks.

"This program has quite literally kept Michigan families in their homes," MSHDA leadership said in announcing the milestone. The agency highlighted stories of single parents, seniors on fixed incomes, and working families who had fallen months behind on mortgage and property tax payments but were brought current through MIHAF assistance.

Applications Still Open

At the time of the year-one announcement, MSHDA encouraged eligible Michigan homeowners who were still experiencing hardship to apply, noting that substantial funding remained available. The agency emphasized that applying is free, that no homeowner should pay a third party for assistance with an application, and that HUD-approved housing counselors are available at no cost to help applicants complete the process.

Homeowners facing foreclosure, tax forfeiture, or utility shutoffs were urged to apply as quickly as possible, since MIHAF can issue emergency payments in cases where a loss of home is imminent. The program was scheduled to continue accepting applications through 2026 or until funds are fully expended, whichever comes first.

The $114 million year-one milestone positioned MIHAF as one of the more effective state-level deployments of federal homeowner relief funds, and MSHDA signaled its intent to continue expanding outreach to ensure Michigan households in need could access the remaining balance of the state's allocation.