Mortgage aid program enters final phase, urges homeowners to apply now
The California Mortgage Relief Program, a crucial aid for homeowners hit by COVID-19, is reaching its final phase after distributing more than $800 million in grants.
According to the California Housing Finance Agency (CalHFA), which administers the program, remaining federal funds are expected to be depleted in the coming months.
Launched in December 2021, the program was part of a nationwide effort funded by the American Rescue Plan’s Homeowner Assistance Fund. California received the largest allocation of any state. Over the past two years, it has provided an average award of nearly $25,000, helping thousands of California homeowners maintain their homes.
“The California Mortgage Relief Program has achieved remarkable success by preserving homeownership opportunities which are so vital to ensuring our most vulnerable populations have a shot at building generational wealth,” CalHFA executive director Tiena Johnson Hall said in a media release. “This program stands as a testament to CalHFA’s commitment to building a more equitable future for all Californians by guaranteeing funds are fairly allocated and prioritizing our most at-risk communities.”
The success of the program is partly attributed to its data-driven outreach and close partnerships with community organizations and consumer advocates.
More than half (55%) of the grants went to households in socially disadvantaged communities, according to CalHFA. Three in four families receiving grants are at or below 100% of Area Median Income.
Additionally, funding awarded to Black and Latino households exceeded their respective state homeownership rates, with 15% going to Black/African American households (compared to 3.8% homeownership rate) and 37% to Hispanic/Latino households (versus 25.3% homeownership rate).
“California’s Mortgage Relief Program has made a huge impact in underserved communities where families were in danger of losing their homes or hard-earned equity,” said Stacey Tutt, homeowner assistance fund coordinator at CalHFA. “We are especially impressed by how responsive the program has been to input from advocates for homeowners’ rights. This program has not just prevented foreclosures; it has preserved futures.”
With funds running out, the agency is urging eligible homeowners to apply promptly, as there is no guarantee all applications will be funded based on remaining availability.
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“The California Mortgage Relief Program has exceeded all goals for ensuring high-risk homeowners from underrepresented communities get the support they need,” said Rebecca Franklin, president of the CalHFA Homeowner Relief Corporation. “As we draw nearer to the full disbursement of California’s allocation of Homeowner Assistance Funds, eligible homeowners that act quickly can still take advantage of these resources.”
“I’m extremely grateful for the assistance provided by the California Mortgage Relief Program funds. It has changed my life,” said California homeowner Eloy Garcia. “I can breathe again. This help is one of the best things that has happened to me.”
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