REAL ESTATE Texas homeowners could receive up to $65K for late payments
BY MATT PAYNE
could vary upon circumstance. Tanya Birks, the Department of Housing program director, said while the program is open to homeowners across the state, application priority will be given to “persistent-poverty” counties. A county is considered to be in persistent poverty if a poverty rate of at least 20% has been recorded for at least 30 years. “The way it’s going to work with the application process is it’s kind of like a irst-come, irst-served [basis] as people get online and start applying,” Birks said. “But at the same time, individuals that fall within those different priority categories, those applications will be considered irst.” According to Birks, the inancial assistance will be distributed through partnerships between the state housing department, and local nonpro its and city governments throughout the state. Birks added that the state is also “not going to try to come in and butt heads,” given that organizations on the local level have programs already in place to reach residents facing inancial hardship. “I know that with these grant pro- grams, there’s always so many little nitpicky things, and that’s why there’s always so many questions,” Birks said. “But with this one, just keep in mind that this program is more about long- term community recovery.” The goal of the program is to expend all funds by 2026, according
Homeowners in Texas who have faced inancial hardships due to the COVID-19 pandemic may soon receive up to $65,000 in aid each from a new source of state-facili- tated assistance. The Texas Department of Hous- ing and Community Affairs has launched a homeowner assistance program to distribute $842.2 million in funds to help pay late fees. Money for the new program comes from the homeowner assistance fund under the American Rescue Plan Act of 2021. According to the state depart- ment, eligible homeowners can receive up to $40,000 for late mort- gage fees, as well as up to $25,000 for past due property tax, property insurance, homeowner association or condo association fees. State department representatives met with Collin County stakeholders Feb. 18 at the Credit Union of Texas in Allen to discuss the new initiative and described it as a means to pre- vent displacement and foreclosures related to the pandemic. Once applications are processed, money will be sent on behalf of homeowners directly to HOAs, tax assessor-collectors, insurance com- panies and loan servicers, according to Michelle Straley, senior inancial analyst with the state department. While the state department is aiming to have checks cut at least 15 to 20 days after an application is sent, Straley said that timeframe
A total of $842.2million fromthe state of Texaswill be donated on behalf of homeowners behind onmortgage, insurance andHOApayments. (Matt Payne/Community Impact Newspaper)
PROGRAMQUALIFICATIONS Homeowners may receive assistance if they meet the following quali cations. Further quali cations may apply.
of the median income for the United States, whichever is greater Have a household income at or below 100% area median income (AMI) or 100%
30
Have fallen at least
days behind on mortgage loan, property tax, property insurance or HOA fees
Own and occupy a home in Texas as a primary residence
Experienced a qualifying nancial hardship after Jan. 21, 2020, such as lost income or increased expenses due to the pandemic
SOURCE: TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS COMMUNITY IMPACT NEWSPAPER
to Birks. Homeowners can learn more about the program at www.texas- homeownerassistance.com and apply for assistance through an online application portal. Assis- tance is available via phone at 1-833-651-3874.
Applicants are required to submit an identi ication card, such as a driver’s license, and past-due mort- gage statements. Those applying are also required to submit proof of occupancy and income.
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MCKINNEY EDITION • MARCH 2022
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