Emergency Homeowners' Loan Program

 

To provide assistance to homeowners who are at risk of foreclosure and have experienced a substantial reduction in income due to involuntary unemployment, or underemployment due to an adverse economic or medical condition. HUD will assist homeowners in Puerto Rico and the 32 States otherwise not funded by Treasury’s Innovation Fund for Hardest Hit Housing Markets program, based on their relative unemployment measures. Allocated award amounts have been reserved to assist homeowners living in these States.

Deleted 03/03/2014 (Archived.) 14.323 Agency: Department of Housing and Urban Development
Office: Office of Housing-Federal Housing Commissioner Direct Loans Not Applicable. Emergency Homeowners’ Relief Act of 1975 Title I (12 U.S.C. 2701) , amended and reauthorized by the Dodd-Frank Wall Street Reform and Consumer Protection Act (Public Law 111-203), approved July 21, 2010., 12 U.S.C 2701. Only the 32 targeted States and Puerto Rico and residents of these states are eligible to receive assistance under EHLP. States that have been determined by HUD to have substantially similar mortgage relief programs will be awarded funding allocations to administer their programs directly. Guidelines for substantially similar State programs are provided in FR-5454-N-01.

Targeted States are as follows: Texas, New York, Pennsylvania, Massachusetts, Washington, Minnesota, Wisconsin, Missouri, Virginia, Colorado, Maryland, Connecticut, Kansas, Arkansas, Iowa, Louisiana, Utah, Oklahoma, Puerto Rico, Idaho, New Hampshire, New Mexico, Maine, West Virginia, Nebraska, Hawaii, Delaware, Montana, Vermont, Alaska, Wyoming, South Dakota, North Dakota and Puerto Rico.

HUD will assist eligible residents of targeted States that do not have substantially similar mortgage relief programs by offering them direct loans, if they meet the following program criteria: (1) Delinquency and likelihood of foreclosure- Applicant must be at least three months delinquent on the first lien monthly mortgage payment 30 days previous to the commencement of the program; (2) Income Eligibility Limit- Applicant’s pre-event income must be equal to or less than 120 percent of the Area Median Income (AMI), as determined by HUD and adjusted for family size; (3) Loss of Household Income –The applicant has incurred a substantial reduction in income as a result of involuntary unemployment or underemployment due to adverse economic conditions, or medical conditions, and is financially unable to make full mortgage payments; (4) Resumption of Mortgage Payments-there is a reasonable prospect that the homeowner will be able to make the adjustments necessary for a full resumption of mortgage payments within 2 years; and (5) Principal Residence- the mortgaged property is the principal residence of the mortgagor (applicant). Program applicants will be assessed to determine if they meet this eligibility criteria. Individuals residing in targeted States (list provided above) and Puerto Rico that have delinquent mortgages as a result of involuntary unemployment or underemployment due to an adverse economic or medical condition. Applicants/borrowers are the direct beneficiaries when they meet all eligibility criteria. No Credentials or documentation are required. This program is excluded from coverage under OMB Circular No. A-87. Preapplication coordination is not applicable. Environmental impact information is not required for this program. This program is excluded from coverage under E.O. 12372. This program is excluded from coverage under OMB Circular No. A-102. This program is excluded from coverage under OMB Circular No. A-110. Program applicants (homeowners) seeking direct loan assistance must provide documented proof of probable foreclosure; income eligibility; income loss and reason; and principle residence.

Guidelines for substantially similar State programs are provided in FR-5454-N-01.
For States receiving allocations through EHLP to administer their mortgage relief programs directly, OMB Circular No. A-87 also applies. Sep 30, 2011 Not Applicable. Not Applicable. Not Applicable. Not Applicable. The program offers a declining balance, deferred payment “bridge loan” (non-recourse, subordinate loan with zero interest) for up to $50,000 to assist eligible homeowners with payments of arrearages, including mortgages, delinquent taxes, insurance premiums, condominium or homeowners association fees; late fees; and certain foreclosure-related attorney’s fee. In addition to payment of arrearages, EHLP funds may also be used to assist eligible homeowners to make up to 24 months of mortgage payments on their mortgage principal, interest, taxes and insurance (PITI), as well as condominium/homeowner association fees, as applicable. Program assistance shall be provided to eligible applicants for a maximum of 24 months, or a maximum of $50,000, whichever occurs first. EHLP will be administered by designated third party organizations on HUD’s behalf and through States that have existing substantially similar mortgage relief assistance programs. No reports are required. In accordance with the provisions of OMB Circular No. A-133 (Revised, June 27, 2003), "Audits of States, Local Governments, and Non-Profit Organizations," nonfederal entities that expend financial assistance of $500,000 or more in Federal awards will have a single or a program-specific audit conducted for that year. Nonfederal entities that expend less than $500,000 a year in Federal awards are exempt from Federal audit requirements for that year, except as noted in Circular No. A-133. Audit requirements apply to States receiving formula grants under this program. In accordance with the provisions of OMB Circular No. A-133 (Revised, June 27, 2003), "Audits of States, Local Governments, and Non-Profit Organizations," nonfederal entities that expend financial assistance of $500,000 or more in Federal awards will have a single or a program-specific audit conducted for that year. Nonfederal entities that expend less than $500,000 a year in Federal awards are exempt from Federal audit requirements for that year, except as noted in Circular No. A-133.

There are no audit requirements for direct loan recipients.
No Data Available. This program has no statutory formula.
This program has no matching requirements. This program has no matching requirements.
This program does not have MOE requirements. This program does not have MOE requirements. There is no statutory formula for this program.

Each State allocation was determined based on a formula calculation using unemployment and mortgage delinquencies stats. Method of awarding/releasing assistance: lump sum. None. None. Contact HUD Headquarters office provided below. Wanda L. Sampedro 451 7th Street, SW, Washington, District of Columbia 20410 Email: info@ifhaoutreach.com Phone: (800) 225-5342 http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/sfh/hcc/ehlp/ehlphome 86-0407-0-3-371 - Financing Account. (Direct Loans) FY 11 $210,000,000; FY 12 est $30,000,000; and FY 13 est $0. (Information) FY 11 Not Available; FY 12 est $0; and FY 13 est $0. (Loan Guarantees/Grants) FY 11 Not Seperately Identifiable; FY 12 est $0; and FY 13 est $0 State allocated amounts range from low $1,320,547 to high $135,418,959. 24 CFR Part 2700 Not Applicable.