Biden’s COVID-19 Relief Bill Included $10 Billion for States to Help Homeowners Cope With the Pandemic

The latest COVID–relief package includes money to help people facing foreclosure keep their homes.

By , Attorney · University of Denver Sturm College of Law

The most recent COVID-19 relief bill, officially called the American Rescue Plan Act of 2021, which President Joe Biden signed into law on March 11, 2021, included approximately $10 billion for a Homeowner Assistance Fund. (See § 3206). This fund provides money to the states to establish foreclosure avoidance and other homeowner-relief programs.

Under these programs, homeowners suffering financial hardships due to COVID-19 can get financial assistance to make mortgage payments, pay for utility and internet services, and cover other expenses, like property taxes and homeowners' insurance, so they can prevent a mortgage delinquency, default, or foreclosure.

Most Homeowner Assistance Fund programs will continue until the earlier of sometime in 2025 or 2026, or when all of the funds allotted to the program have been exhausted. Many states plan to use all their funds well before this time. So, if you think you might qualify for assistance under a particular program, it's best to apply as soon as possible.