The Hardest Hit Fund: Money for States Impacted by the Housing Crisis

In 2010, the federal government created the Hardest Hit Fund. The purpose of the Fund was to provide money to the states most impacted by the housing crisis—that is, those states with the steepest home price declines and the highest unemployment.

The government identified 18 states and the District of Columbia to receive funds. Each state that received money developed its own program, administered by that state’s housing finance agency, to distribute the cash and help struggling homeowners avoid foreclosure. 

The states that received funds and set up programs are:  Alabama, Arizona, California, Florida, Georgia, Illinois, Indiana, Kentucky, Michigan, Mississippi, Nevada, New Jersey, North Carolina, Ohio, Oregon, Rhode Island, South Carolina, Tennessee, and Washington, D.C. These states have until the end of 2020 to make use of the money allocated under the Hardest Hit Fund, but some have ended their programs early because funding ran out.

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