What Is Homeowner Assistance Fund?
The Homeowner Assistance Fund (HAF) is a $9.961 billion federal program created by the American Rescue Plan Act of 2021 to help homeowners affected by the COVID-19 pandemic avoid foreclosure, delinquency, and displacement. Treasury allocated funds to all 50 states, U.S. territories, and tribes, with each jurisdiction designing its own application process, eligibility criteria, and maximum assistance amounts.
Key Facts
- Congress appropriated $9.961 billion for HAF in the American Rescue Plan Act of 2021 — the largest dedicated homeowner assistance program since the Great Recession, distributed across all 50 states plus DC, territories, and 97 tribal entities
- As of 2025, HAF programs have assisted over 500,000 homeowners nationally, with the majority of funds going toward mortgage payment assistance, property tax arrears, and utility bills — but many state programs are now winding down as funds are exhausted
- Eligibility is generally limited to homeowners earning at or below 150% of area median income who experienced a COVID-related financial hardship after January 21, 2020 — though each state sets specific income thresholds and documentation requirements
- Texas received the largest allocation at $842 million, followed by California at $756 million, Florida at $676 million, and New York at $539 million — allocations were based on homeowner unemployment and delinquency data
- HAF funds can cover mortgage payments, property taxes, homeowner's insurance, HOA dues, utility bills, and other housing-related costs — making it broader than most prior programs that only covered mortgage payments
How Does the Homeowner Assistance Fund Work?
Each state received a Treasury allocation and designed its own HAF program. The typical process:
- Application: Homeowners apply through their state's housing finance agency (HFA) website. Required documentation typically includes proof of income, mortgage statement, hardship attestation, and identity verification.
- Eligibility determination: The state HFA verifies income (at or below 150% AMI, with states prioritizing those at or below 100% AMI), hardship (job loss, income reduction, medical costs), and homeownership status.
- Payment: Funds are paid directly to mortgage servicers, county tax offices, utility companies, or HOAs — not to the homeowner. This prevents diversion and simplifies accounting.
- Ongoing assistance: Some states provide one-time lump payments; others provide up to 18 months of forward-looking assistance to stabilize the household.
What Can HAF Funds Cover?
Treasury guidance allows HAF to cover a broad range of housing-related costs:
- Mortgage payments: Past-due and forward-looking principal, interest, and escrow
- Property taxes: Delinquent property tax payments (a common foreclosure trigger in many states)
- Homeowner's insurance: Lapsed coverage that could trigger force-placed insurance
- HOA/condo fees: Delinquent association dues (which can lead to HOA foreclosure in many states)
- Utility payments: Past-due water, electric, gas, and internet
- Down payment assistance for loss mitigation: Some states use HAF to fund partial claims or loan modifications
How Is HAF Different from HAMP and Other Crisis Programs?
HAMP (Home Affordable Modification Program) from the 2008 crisis modified loan terms — it changed the mortgage itself. HAF doesn't modify loans; it pays the arrears and forward obligations so the existing mortgage stays current. This is faster and simpler but doesn't address affordability if the underlying mortgage is unsustainable. The Hardest Hit Fund (HHF), another GFC-era program, was HAF's closest predecessor — it provided direct payment assistance to 18 states with high unemployment or home price declines.
What Happens When HAF Funds Run Out?
Most state HAF programs are expected to exhaust their allocations by late 2025 or 2026. When funds run out, homeowners who are still struggling will need to pursue traditional loss mitigation options: forbearance, loan modification, repayment plans, or partial claims. The expiration of HAF coincides with rising mortgage delinquency rates — the American Distress Index tracks this convergence through its Buffer Depletion and Debt Stress components.
State-by-State Variations
Each state designs its own HAF program with different income thresholds, maximum assistance amounts, and covered costs. Maximum per-household assistance ranges from $25,000 to $80,000+ depending on the state.
| State | Key Difference |
|---|---|
| California | CalHFA Mortgage Relief Program: up to $80,000 per household (highest in nation). Covers past-due mortgage, property taxes, and partial claim for FHA borrowers. $756M allocation — fully subscribed. |
| Texas | Texas Homeowner Assistance Fund: up to $65,000 per household. Covers 18 months of forward-looking assistance plus arrears. $842M allocation — largest in nation. |
| Florida | Florida Homeowner Assistance Fund: up to $50,000 per household. Covers mortgage, insurance, property taxes, HOA. $676M allocation. Rapid spend-down. |
| New York | NYS Homeowner Assistance Fund: up to $50,000 per household. Separate streams for mortgage, tax, and utility arrears. $539M allocation. |
| Pennsylvania | PAHAF: up to $50,000 per household. Covers mortgage, property taxes, utility arrears, and reverse mortgage defaults. $350M allocation. |
Frequently Asked Questions
Is the Homeowner Assistance Fund still available?
It depends on your state. Many HAF programs are still accepting applications as of 2025-2026, but funds are finite and several states have closed applications or exhausted their allocations. Check your state housing finance agency's website for current availability.
Do I have to pay back HAF assistance?
In most states, HAF assistance is a grant — not a loan — and does not need to be repaid. Some states require a lien or forgivable second mortgage that is forgiven if you remain in the home for a specified period (typically 3-5 years).
Can I apply for HAF if I'm already in foreclosure?
Yes. Most state programs accept applications from homeowners already in foreclosure proceedings. Many programs prioritize applicants in active foreclosure, delinquency, or servicer-identified as at risk. Some states require the servicer to pause foreclosure while the HAF application is pending.
Does HAF affect my taxes?
Generally no. The American Rescue Plan Act excluded HAF payments from federal taxable income. However, state tax treatment may vary — check with your state's tax authority.
What if my state's HAF program has closed?
If your state's HAF is exhausted, contact a HUD-approved housing counselor (free) for help with other options: loan modification, forbearance, FHA partial claim, or state-specific emergency assistance programs. Call 1-800-569-4287 to find a counselor.