What is homeowner assistance fund?

The Homeowner Assistance Fund (HAF) was a $9.96 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. It is closed to new aid.

Photo of Ross Kilburn

Updated

Key facts

  • Congress appropriated $9.96 billion for HAF in the American Rescue Plan Act of 2021, distributed across the states, DC, the territories and tribal governments.
  • HAF programs couldn't commit new money after September 30, 2026: "HAF recipients and subrecipients may no longer obligate HAF award funds after September 30, 2026" (Treasury, Standard Closeout Checklist for HAF Awards).
  • Federal law directed at least 60% of each program's money to homeowners at or below the greater of 100% of area median income or 100% of U.S. median income, for homeowners who experienced a COVID-related financial hardship after January 21, 2020 — and each state set its own income thresholds and documentation requirements.
  • HAF funds could 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.

Related data

How Did the Homeowner Assistance Fund Work?

Each state received a Treasury allocation and designed its own HAF program. The typical process was:

  1. Application: Homeowners applied through their state's housing finance agency (HFA) website. Required documentation typically included proof of income, mortgage statement, hardship attestation, and identity verification.
  2. Eligibility determination: The state HFA checked income against its program's limits (within a federal ceiling of 150% of area median income or 100% of U.S. median income, whichever was higher), hardship (job loss, income reduction, medical costs), and homeownership status.
  3. Payment: Funds were paid directly to mortgage servicers, county tax offices, utility companies, or HOAs — not to the homeowner. This prevented diversion and simplified accounting.
  4. Ongoing assistance: Some states gave one-time lump payments; others gave up to 18 months of forward-looking assistance to stabilize the household.

What Could HAF Funds Cover?

Treasury guidance allowed 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 used HAF to fund partial claims or loan modifications

How Was 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 could pay overdue and upcoming mortgage payments and could also fund mortgage principal reduction or help lower mortgage interest rates, depending on the state's program. This was faster and simpler but didn't address affordability if the underlying mortgage was 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.

When Did HAF End?

Treasury set September 30, 2026 as the end of the period for HAF awards: programs couldn't commit new money after that date, and they have until January 28, 2027 to file their final reports. A program that approved a homeowner before the deadline can still finish paying that approved help. Homeowners who are still behind now turn to the options that come through the loan itself: forbearance, a repayment plan, a loan modification or, for FHA loans, a partial claim.

Questions about the Homeowner Assistance Fund

Is the Homeowner Assistance Fund still available?

Generally, no. HAF programs couldn't commit new money after September 30, 2026 (Treasury). If your state's program approved you before then, ask it about payments still being processed.

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?

No. HAF programs couldn't commit new money after September 30, 2026 (Treasury), so new applications have ended, including from homeowners already in foreclosure. Before then, most state programs accepted them. If a program approved you before the deadline, ask it about payments still being processed.

Does HAF affect my taxes?

Generally no. The IRS says qualifying Homeowner Assistance Fund payments are not included in federal gross income. However, state tax treatment may vary — check with your state's tax authority.

What can I do now that HAF has closed?

The options that remain come through your loan itself: forbearance, a repayment plan, a loan modification or, for FHA loans, a partial claim. Ask your servicer which ones your loan allows. HUD-approved housing counselors also help, and foreclosure prevention counseling is free.

Related terms

  • ForbearanceA pause or cut in your mortgage payments for a set time. The skipped amount is still owed, and how it's repaid depends on the agreement.
  • Loan ModificationA permanent change to your mortgage's terms, such as the interest rate or the length of the loan, agreed with your mortgage company.
  • Loss MitigationA servicer's review of available alternatives to foreclosure, such as repayment, forbearance, modification, or a short sale.
  • Partial ClaimAn FHA loss mitigation option that places approved past-due amounts in a separate HUD subordinate lien.
  • HAMP (Home Affordable Modification Program)A 2009 federal loan modification program that helped 1.8 million homeowners avoid foreclosure during the Great Recession by lowering their monthly payments. It is closed to new applications.
  • Making Home AffordableThe Treasury's 2009 umbrella housing initiative encompassing HAMP, HARP, and other programs that collectively helped 5+ million homeowners during the Great Recession.
  • ForeclosureThe legal process where a lender takes your home after you stop making mortgage payments. The process and timeline vary significantly by state.
  • DefaultA serious failure to meet the terms of your mortgage — usually missing several payments. Default is what triggers the foreclosure process.

Sources and method

We write with assistance from AI tools. Figures come from the data and sources named on this page.