Homeowners Urged to Act Fast as California Mortgage Relief Program Disburses Remaining Federal Funds
The California Mortgage Relief Program has entered its final phase of funding, urging homeowners to act quickly and apply before the remaining federal funds are exhausted. This program has been a critical support system for Californians who faced financial hardships due to the COVID-19 pandemic, distributing over $800 million in grants to more than 33,000 families to prevent foreclosures and maintain homeownership.
Launched in December 2021, the program was tasked by the State of California with disbursing funds from the American Rescue Plan Act’s Homeowner Assistance Fund (HAF). The allocation was the largest of any state, reflecting the urgent need to address housing instability exacerbated by the pandemic. Over the past two years, the program has focused on aiding those in dire need, continually adapting to reach even more vulnerable homeowners.
Tiena Johnson Hall, Executive Director of the California Housing Finance Agency (CalHFA), which administers the program, emphasized the program’s success. “The California Mortgage Relief Program has preserved homeownership opportunities essential for building generational wealth in our most vulnerable populations,” she stated. The program stands as a testament to CalHFA’s commitment to equitable distribution of funds, prioritizing at-risk communities.
One key aspect of the program’s design has been its data-driven outreach and collaboration with community organizations and consumer advocates. This strategy ensured that the most high-risk and vulnerable populations could apply for assistance. “California’s commitment to equity and transparency is evident in how we’ve targeted relief to those most in need,” Hall added.
A significant portion of the grants has been directed toward socially disadvantaged communities. To date, 55 percent of the grants have gone to these households, with an average award nearing $25,000. The program’s impact is particularly notable among Black and Latino homeowners. While 3.8 percent of California homeowners identify as Black/African American, they have received 15 percent of the grants. Similarly, Hispanic/Latino households, which make up 25.3 percent of California homeowners, have received 37 percent of the funds.
Stacey Tutt, Homeowner Assistance Fund Coordinator and Senior Staff Attorney at the National Housing Law Project, praised the program’s responsiveness to input from homeowner advocates. “The California Mortgage Relief Program has not only prevented foreclosures but also preserved futures. It has made a huge impact in underserved communities where families were in danger of losing their homes or hard-earned equity,” Tutt remarked.
The program’s effectiveness is further demonstrated by the demographic data of grant recipients. Currently, three out of every four families receiving grants are at or below 100 percent of the Area Median Income (AMI) by county, with an average AMI of 69 percent for all households. This focus on lower-income households underscores the program’s commitment to aiding those most in need.
Homeowner testimonials highlight the profound impact of the program. Eloy Garcia, a California homeowner, expressed his gratitude, saying, “I’m extremely grateful for the assistance provided by the California Mortgage Relief Program funds. It has changed my life. I can breathe again. This help is one of the best things that has happened to me.” Other homeowners, such as Cathy from San Diego County and Ani from Los Angeles County, echoed similar sentiments, praising the program for helping them avoid losing their homes due to unexpected financial hardships.
Rebecca Franklin, President of the CalHFA Homeowner Relief Corporation, emphasized the urgency for eligible homeowners to apply. “As we near the full disbursement of California’s allocation of Homeowner Assistance Funds, it’s crucial for eligible homeowners to act quickly. There is no guarantee that all eligible applications will be funded as the remaining funds are expected to be depleted in the coming months,” Franklin stated.
The program’s long-term goal is to alleviate housing instability and address the economic impacts of the pandemic by providing financial assistance to eliminate past due housing and property tax payments. The program also aims to address certain Partial Claim Liens or Deferrals established due to COVID-19 related delinquencies. With more than $900 million allocated to help homeowners, including an additional 15 percent for program administration, projections indicate that the program will come in under budget, allowing more resources to be directed toward helping homeowners.
As the final phase of funding approaches, the California Mortgage Relief Program continues to emphasize the importance of providing assistance to homeowners for the program’s duration. Efforts are being made to direct homeowners to other housing assistance programs once the federal funds are exhausted. For more information on the California Mortgage Relief Program and to apply for assistance, homeowners can visit www.CaMortgageRelief.org.
The program’s success is a result of close partnerships with community organizations and consumer advocates, ensuring that the most at-risk populations have access to relief. Follow the California Mortgage Relief Program on social media for updates and additional information: Instagram (@CaMortgageRelief), Facebook (@CaMortgageHelp), and Twitter (@CaMortgageHelp).
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The CalHFA Homeowner Relief Corporation (CalHRC), a special-purpose affiliate of the California Housing Finance Agency (CalHFA), administers the program. CalHFA is an independent state agency dedicated to assisting low to moderate-income Californians by acting as the state’s affordable housing lender. Through CalHRC, the agency leverages its expertise in mortgage assistance and homeownership to effectively disburse the American Rescue Plan Act’s Homeowner Assistance Fund on behalf of the State of California.
In summary, the California Mortgage Relief Program has made significant strides in preventing foreclosures and maintaining homeownership for thousands of Californians. With the final phase of funding underway, eligible homeowners are encouraged to apply as soon as possible to take advantage of the remaining resources. The program’s commitment to equity and transparency ensures that those most in need receive the support necessary to preserve their homes and futures.
Sources:
https://www.consumerfinance.gov/coronavirus/mortgage-and-housing-assistance
