Pennsylvania Mortgage Relief Program Reopens in March
Title: Pennsylvania Mortgage Relief Program Reopens with $46 Million in Assistance
Introduction
After a hiatus of over a year to address internal issues and a backlog of applications, Pennsylvania’s Homeowner Assistance Fund is set to reopen in March, providing a much-needed lifeline for homeowners affected by the pandemic. The program, managed by the Pennsylvania Housing Finance Agency, has an estimated $46 million in funding available for new applicants, potentially assisting over 3,000 homeowners.
Program Reopens with Remaining Funds
Following a temporary closure, the program is welcoming new applicants, offering a chance for struggling homeowners to catch up on mortgage payments and related expenses. Scott Elliott, spokesperson for the Pennsylvania Housing Finance Agency, confirmed the availability of approximately $46 million for fresh applicants, emphasizing the potential to aid around 3,350 more homeowners.
Legal Expert Urges Homeowners to Apply
Legal experts, such as Rachel Labush from Community Legal Services in Philadelphia, encourage homeowners facing foreclosure or the risk of property sale due to back taxes to prioritize their applications. Labush highlights the significance of signaling these challenges during the application process, as the program gives precedence to such cases.
Recovery from Previous Setbacks
The program faced setbacks in the past, including a transfer of responsibilities from an external company to the state last spring. Homeowners with pending applications had to re-register in a new system, causing delays and disruptions. The transition took longer than anticipated, leading to a temporary cessation of new applications and issues in fund disbursement.
Spotlight PA Investigation Unveils Challenges
In January 2023, a Spotlight PA investigation shed light on challenges faced by the program, including difficulties in obtaining information from mortgage companies and prolonged waiting periods for applicants. Some experienced utility shut-offs and credit score declines while awaiting assistance. Complaints also surfaced about unresponsive program workers.
Registration Deadline for Pending Applicants
Applicants with pending registrations from the previous system must re-register by February 23 to prevent withdrawal of their applications. While they can reapply when the program reopens, they will not receive priority over new applicants.
National Context
Nationwide, approximately half of states have either closed their homeowner assistance programs or temporarily halted new applications, as indicated in a presentation to PHFA’s board of directors in December.
Financial Impact and Outreach Efforts
As of February 1, the Pennsylvania program has disbursed nearly $200 million to around 15,200 households. Despite reminders through various channels, around 6,100 homeowners who applied before the transition have not yet re-registered in the new system, underlining the ongoing challenges in outreach and program implementation.
Conclusion
The reopening of Pennsylvania’s Homeowner Assistance Fund signifies a renewed effort to support homeowners impacted by the pandemic. With remaining funds and lessons learned from past challenges, the program aims to provide timely and effective relief, addressing the critical needs of Pennsylvania’s homeowners.
