Financially distressed homeowners can now take advantage of a $539 million state program aimed at helping them avert mortgage delinquency, default, foreclosure and displacement.
Administered by New York State Homes and Community Renewal, the Homeowner Assistance Fund targets low- to moderate-income homeowners who are behind on mortgage payments, property taxes, water or sewer bills. It also helps owners of cooperative or condo units behind on maintenance fees, and manufactured homeowners behind on chattel loans or retail installment contracts.
“Many New Yorkers are still recovering from the pandemic, and just like we did for renters, our state is now leading the way to provide much-needed economic relief to vulnerable homeowners across the state,” Gov. Kathy Hochul said in a written statement. “We know that the economic pain of the pandemic has been felt disproportionately in rural communities, communities of color, and immigrant communities, and this program is a demonstration of our commitment to placing the needs of New Yorkers in need at the heart of our work. We thank the Biden administration and our entire congressional delegation for securing this critical lifeline, and New York is ready to support homeowners in need every step of the way.”
Eligible applicants, who began applying for the program earlier this week, may receive financial assistance to catch up on missed housing payments, to reduce mortgage debt to make monthly mortgage payments more affordable, and for homeowners who are unemployed, assistance with up to six months of future housing payments.
Applicants must have household incomes at or below 100 percent of the area median income and must be at least 30 days delinquent on monthly housing payments for their primary residence. Awards will be capped at $50,000 per household. Assistance is structured as a five-year, non-interest, non-amortizing forgivable loan. If the homeowner remains in the home for a period of five years, the loan will be fully forgiven.
To apply for the financial assistance, homeowners can visit: nyhomeownerfund.org