$197M Available to Arizona Homeowners Facing Foreclosure

Earlier this year, President Joe Biden signed the American Rescue Plan Act of 2021 into law. This law created a Homeowner Assistance Fund to provide $10 billion to the states to help struggling homeowners catch up on mortgage payments, utility costs, past-due property taxes, and other housing-related expenses. As part of the federal American Rescue Plan Act, eligible homeowners in Arizona affected by COVID-19 can apply for part of the $197 million allocated to the state.

Homeowners can use funds to catch up on mortgage delinquencies and prevent defaults and foreclosures. Funds can also be applied to other housing-related expenses, like delinquent utility bills, for internet services, and to pay different property costs.

What Types of Housing Expenses Are Covered

Specifically, you can apply for financial assistance to cover any of the following types of housing-related expenses:

• mortgage payments, including financial assistance to reinstate a mortgage
• utilities, including electric, gas, home energy, and water
• internet service, including broadband internet access service
• homeowners' insurance, flood insurance, and mortgage insurance
• homeowners association fees or liens, condominium association fees, or common charges, and
• other housing-related costs related to a period of forbearance, delinquency, or default.

Eligibility Criteria to Get Financial Assistance in Arizona

To get housing assistance from this fund, you must have:

• an income equal to or less than 150% of the area median income (use this pre-screening questionnaire to find out if you qualify or go to the U.S. Department of Housing and Urban Development (HUD) Income Limits website for more information on area median income for Arizona), and
• experienced a financial hardship—job loss, a reduction in income, or increased costs due to healthcare, or the need to care for a family member—after January 21, 2020, because of the COVID-19 public health emergency.

You also must be applying for assistance for your primary residence. Second homes and investment properties don't qualify.

How to Apply for Housing Assistance in Arizona

Go to haf.azhousing.gov to submit your application. You can apply with any device, like a laptop, tablet, or cell phone, with an internet connection. You'll need to provide some documentation, like a government-issued ID (such as a driver's license), proof that you own the home, income documentation (like pay stubs, W2s, and tax filings), and mortgage documents.

If you need help with your application, the state Department of Housing has contracted with housing counselors who are available to provide assistance to homeowners having difficulties with technology or who require special assistance. Or you can contact a HUD-approved housing counselor through HUD's website.

Once your application is approved, payment will be sent directly to your loan servicer.

Other Mortgage and Foreclosure Relief in Arizona

This relief is in addition to COVID-19 forbearances for homeowners with federally backed mortgage loans. For most federally backed mortgage loans, the option to get a forbearance will last until the national emergency ends.

Even if your loan isn't federally backed, your servicer might offer a forbearance or another form of relief, like a waiver of late fees or a loan modification, if the COVID crisis has financially impacted you.

Effective date: December 13, 2021