Michigan Homeowner Assistance Fund Nears End: $242M in Pandemic Relief Fully Deployed

Michigan's landmark pandemic-era mortgage rescue program is winding down. The Michigan State Housing Development Authority (MSHDA) announced on November 9, 2023 that the Michigan Homeowner Assistance Fund (MIHAF) will stop accepting new applications on December 8, 2023, as the program approaches full deployment of its $242,812,277 federal allocation.

The funding was awarded to Michigan under Section 3206 of the American Rescue Plan Act of 2021, which created the national Homeowner Assistance Fund to mitigate COVID-19 financial hardships for homeowners. Michigan's share made MIHAF one of the largest pandemic-era housing stability programs ever administered in the state.

What MIHAF Covered

MIHAF provided up to $25,000 per eligible household to cover homeownership expenses that fell behind because of pandemic-related hardship. Covered expenses included:

• Delinquent mortgage payments and reinstatement
• Non-escrowed property taxes
• Homeowner's insurance premiums
• Utility arrears, including gas, electric, water, sewer, and internet
• Condominium and homeowner association fees
• Land contract payments and manufactured home loans

A Milestone in Pandemic Recovery

In February 2023, MSHDA reported that MIHAF had delivered more than $114 million in aid during its first year of operation, assisting over 15,000 Michigan homeowners. Demand accelerated through 2023, and by late November reporting, less than $20 million of the original $242 million allocation remained. That pace prompted MSHDA to set the December 8, 2023 application cutoff so the remaining funds could be honored for applications already in the pipeline.

What This Means for Homeowners

Homeowners who had already submitted an application before the cutoff remain in the queue for review. After December 8, 2023, no new MIHAF applications will be accepted. Homeowners still facing hardship after MIHAF closes are being directed to:

• HUD-approved housing counseling agencies, which provide free foreclosure prevention counseling
• Their mortgage servicer's loss mitigation department, for forbearance, modification, or repayment plan options
• Michigan 2-1-1, which connects residents with local emergency rental, utility, and housing resources
• The Step Forward Michigan program archive and other state and nonprofit aid networks

A Program's Legacy

MIHAF is one of the clearest examples of federal pandemic aid reaching homeowners directly. Across the country, Homeowner Assistance Fund programs collectively committed nearly $10 billion to keep families in their homes during the sharpest housing-cost shock in a generation. In Michigan, the $242 million deployment translated into tens of thousands of cured delinquencies, protected credit records, and foreclosures avoided.

With MIHAF closing, the pandemic-era safety net for delinquent homeowners in Michigan is effectively over. Advocates are now watching whether state legislators or federal appropriators will create a successor program as rising property taxes, insurance premiums, and utility costs continue to pressure low- and moderate-income homeowners.