Federal Relief Program Distributes Funds to Help Homeowners Impacted by COVID-19 Pay Mortgages

The State Office of Community Development in Louisiana has made a significant impact in aiding homeowners during the pandemic, having distributed over $146 million to nearly eight thousand homeowners across the state. This substantial financial assistance was provided through the Louisiana Homeowner Assistance Fund, specifically designed to support those struggling with mortgage payments due to the pandemic’s economic fallout.

Ginger Moses, the Chief Operating Officer with the Office of Community Development, elaborated on the scale and scope of this initiative. “The state of Louisiana was granted $146.7 million, allowing each eligible applicant to receive up to $50,000, which was the maximum amount set for the program,” she explained. This funding, part of the larger $10-billion American Rescue Plan Act, was a crucial federal intervention aimed at mitigating the financial hardships faced by many during the pandemic.

To be eligible for this program, applicants were required to engage with service providers participating in the program. This collaborative approach ensured that the assistance reached those in dire need effectively and efficiently. Moses highlighted that the payments were made directly to mortgage companies, ensuring that the funds were used specifically for their intended purpose – to assist homeowners in keeping up with their mortgage obligations.

The impact of this program on the lives of thousands of Louisianans cannot be overstated. “These folks would not have been able to maintain their mortgage. They would have ended up in foreclosure and lost their homes. That’s almost eight thousand homeowners in our state that were at risk of foreclosure. There was proof in it with these dollars,” Moses stated. This intervention by the State Office of Community Development has been pivotal in preventing a wave of foreclosures and the resultant loss of homes for many residents.

Moses further emphasized the significance of the program as a lifeline for residents. “It was critical to just helping the citizens of this state make it through some of those most difficult times during the pandemic. And we all are very thankful for the funding,” she said. The program not only provided financial relief but also offered a sense of security and stability to homeowners during an unprecedented global crisis.

In summary, the Louisiana Homeowner Assistance Fund, facilitated by the State Office of Community Development and funded through the American Rescue Plan Act, has played a crucial role in supporting nearly eight thousand Louisiana homeowners. By providing up to $50,000 per applicant, the program has successfully prevented foreclosures and the loss of homes, offering a much-needed safety net for residents during one of the most challenging periods in recent history.