New York’s Homeowner Assistance Fund: A Game-Changer That Helped Thousands Before Closing in 2024
The New York State Homeowner Assistance Fund (NYS HAF) represented one of the most significant foreclosure prevention initiatives in state history, providing crucial financial lifelines to struggling homeowners during and after the COVID-19 pandemic. The New York State Homeowner Assistance Fund is closed and no longer serving individuals on the waitlist. The program assisted nearly 17,000 homeowners with $465 million in awards and also helped 2,800 homeowners get an affordable loan modification with their lenders.
What Was the New York Homeowner Assistance Fund?
New York State was the first state in the nation to receive U.S. Department of the Treasury’s approval to launch its Homeowner Assistance Fund, a program that provided up to $539 million to help eligible homeowners avert mortgage delinquency, default, foreclosure, and displacement. Funded by Congress through the American Rescue Plan, the Homeowner Assistance Fund was dedicated to assisting homeowners at risk of default, foreclosure or displacement because of a financial hardship caused by the COVID-19 pandemic.
The program launched in January 2022 and was designed to help low- to moderate-income homeowners who faced financial hardship due to the pandemic. Applicants could qualify for up to $50,000 in aid through the program. NYS HAF targeted low- to moderate-income homeowners who were behind on mortgage payments, property taxes, and water and sewer bills.
Comprehensive Support Beyond Just Mortgage Payments
The HAF program offered assistance with various housing-related expenses, making it a comprehensive solution for homeowners in distress. The $539 million available through the program helped prevent displacement of homeowners and mitigate financial hardships associated with the COVID-19 pandemic by preventing mortgage and tax delinquencies, defaults, and foreclosures, as well as loss of utilities or home energy services.
The program was also open to owners of cooperative or condo units who were behind on maintenance fees, and manufactured homeowners behind on chattel loans, retail installment contracts or lot rents. This broad scope ensured that various types of homeowners could access the support they needed.
Partnership with Legal Services and Advocacy
One of the program’s strengths was its collaborative approach. The NYS HAF program worked in partnership with the Office of the New York State Attorney General to advocate with mortgage lenders and mortgage servicers to ensure homeowners were receiving all available relief under federal and state rules. This included extended mortgage terms, deferment of missed payments or forbearance amounts, and lower interest rates to reduce monthly payments.
The NYS HAF program was managed by Sustainable Neighborhoods LLC, a non-profit community development financial institution selected through a competitive Request for Proposals. Sustainable Neighborhoods had extensive experience administering foreclosure prevention and loss mitigation programs across the state.
Current Status and Alternative Resources
While the original HAF program has concluded, New York continues to support homeowners through other initiatives. The state’s Homeowner Protection Program (HOPP) provides free legal help and housing counseling to homeowners targeted by mortgage fraud, scams and foreclosures in every county of the state. Last year, more than 20,000 people received assistance from the program — protecting their rights in court, lowering their bill payments and preventing avoidable foreclosures with home-saving solutions that benefit homeowners, lenders and local governments.
If you are a homeowner in need of resources, you can connect with a free housing counselor at https://homeownerhelpny.org/. These services remain crucial as funding for the HOPP program was set to run out on July 15, 2024, potentially leaving struggling homeowners with nowhere to turn.
The Broader Impact on Foreclosure Prevention
The success of New York’s HAF program contributed to a national trend of effective foreclosure prevention. Through June 2024, HAF-funded programs nationwide assisted over 549,000 homeowners, helping to prevent mortgage delinquencies and defaults, foreclosures, losses of utilities and home energy services, and displacement. The data shows that the majority of HAF assistance reached economically vulnerable and traditionally underserved homeowners, including low-income homeowners, homeowners of color, and female homeowners.
Professional Legal Guidance Remains Essential
While state assistance programs like HAF provided crucial support, homeowners facing foreclosure still benefit significantly from professional legal representation. Experienced foreclosure defense attorneys can navigate the complex legal landscape and explore various Foreclosure Options available to homeowners, including bankruptcy protection, loan modifications, and other debt relief strategies.
Firms like those serving Long Island and New York offer no-obligation consultations to discuss legal options, with offices centrally located for easy access. With veteran attorneys having many years of combined legal experience and over 30 legal professionals on their teams, these firms have the resources to handle important legal matters.
The legacy of New York’s Homeowner Assistance Fund demonstrates the state’s commitment to protecting homeownership and preventing displacement. While this specific program has concluded, the infrastructure and partnerships it created continue to benefit New York homeowners through ongoing foreclosure prevention programs and legal services. For homeowners currently facing financial difficulties, connecting with housing counselors and experienced legal professionals remains the best path forward to explore all available options and protect their homes.