VHFA released a draft program description and income limits this week for the Homeowner Assistance Fund that will start in the next few months. The Homeowner Assistance Fund was created by the federal American Rescue Plan Act to help homeowners avoid foreclosure and displacement by mitigating financial hardships related to the COVID-19 pandemic. The Fund will provide Vermont up to $50 million over a multi-year period to provide assistance for mortgage and other expenses facing Vermont homeowners.
Qualified households with incomes up to 150% of the area median will be eligible. However, assistance will be prioritized for homeowners with incomes less than the area median and other historically underserved populations such as homeowners who are socially disadvantaged or mobile home owners in Vermont’s mobile home parks. At least 60% of Homeowner Assistance Fund grants must be given to households with incomes less than or equal to the area median income.
According to the proposed guidelines, Vermont’s Homeowner Assistance Fund will offer grant assistance for these expenses:
- Reinstatement of a delinquent first mortgage (including a forborne amount), principal reduction of a delinquent first mortgage in connection with a modification, junior liens, or other mortgage related expenses (including tax and insurance escrows and late fees);
- Past due water, sewer, gas, oil, electricity, and internet;
- Past due property tax, homeowner association fees, mobile home park lot fees, and other charges that are or could become a lien on the property; and
- Home repairs to maintain the habitability of a home.
In addition, HUD-approved non-profit housing counseling agencies and non-profit legal services providers may apply for Homeowner Assistance Fund grants for efforts targeting eligible households related to prevention of foreclosure or displacement.
Please submit comments on these guidelines or other questions about the Vermont Homeowner Assistance Fund to [email protected] by July 9, 2021. After further guidance is provided by the U.S. Treasury, VHFA plans to release a draft Homeowner Assistance Fund plan and collect public comments on the plan. The plan (or a date by which the Plan will be submitted) is due to the U.S. Treasury by July 31, 2021.