NY homeowners behind on mortgages get $539M from feds

New York: New York on Thursday became the first state in the nation to receive US Treasury approval for Homeowner Assistance Fund aid. Nearly $539 million — the amount Gov. Kathy Hochul requested — will be distributed to homeowners at the greatest risk of foreclosure or displacement. The money is part of a $10 billion federal program in the American Rescue Plan.

However, the funding will cover only about 9 percent of New Yorkers’ delinquent payments. Homeowners statewide have run up about $5.85 billion in mortgage arrears since the start of the pandemic. 

The governor announced the funding award a week after pulling the plug on New York’s portal for emergency rental assistance, shutting out potentially hundreds of thousands of landlords and tenants because rent aid was running out. 

The state has earmarked virtually all of the $2.4 billion in available funding to applicants and has requested another $996 million from the Treasury Department. 

“As we focus on our post-pandemic economic recovery, we need to do everything in our power to help New Yorkers stay in their homes,” Hochul said in a statement. 

Hochul’s office plans to unveil a statewide outreach campaign to provide information to at-risk homeowners so they are ready to apply as soon as the application window opens.  

 

Image courtesy of thesatimes

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