Emergency Homeowners Loan Program
HUD will assist homeowners in Puerto Rico and the 32 States otherwise not
Allocated award amounts have been reserved to assist homeowners living in these States.
The Department of Housing and Urban Development's mission is to increase homeownership, support community development and increase access to affordable housing free from discrimination. HUD fulfills this mission through high ethical standards, management and accountability, and by forming partnerships with community organizations.
None.
Contact HUD Headquarters office provided below.
Program Accomplishments
Not Applicable.
Uses and Use Restrictions
The program offers a declining balance, deferred payment "bridge loan" (non-recourse, subordinate loan with zero interest) for up to $50,000 to assist eligible homeowners with payments of arrearages, including mortgages, delinquent taxes, insurance premiums, condominium or homeowners association fees; late fees; and certain foreclosure-related attorney s fee.
In addition to payment of arrearages, EHLP funds may also be used to assist eligible homeowners to make up to 24 months of mortgage payments on their mortgage principal, interest, taxes and insurance (PITI), as well as condominium/homeowner association fees, as applicable.
Program assistance shall be provided to eligible applicants for a maximum of 24 months, or a maximum of $50,000, whichever occurs first.
EHLP will be administered by designated third party organizations on HUD s behalf and through States that have existing substantially similar mortgage relief assistance programs.
Eligibility Requirements
Applicant Eligibility
Only the 32 targeted States and Puerto Rico and residents of these states are eligible to receive assistance under EHLP.
States that have been determined by HUD to have substantially similar mortgage relief programs will be awarded funding allocations to administer their programs directly.
Guidelines for substantially similar State programs are provided in FR-5454-N-01.
Targeted States are as follows: Texas, New York, Pennsylvania, Massachusetts, Washington, Minnesota, Wisconsin, Missouri, Virginia, Colorado, Maryland, Connecticut, Kansas, Arkansas, Iowa, Louisiana, Utah, Oklahoma, Puerto Rico, Idaho, New Hampshire, New Mexico, Maine, West Virginia, Nebraska, Hawaii, Delaware, Montana, Vermont, Alaska, Wyoming, South Dakota, North Dakota and Puerto Rico.
HUD will assist eligible residents of targeted States that do not have substantially similar mortgage relief programs by offering them direct loans, if they meet the following program criteria: (1) Delinquency and likelihood of foreclosure- Applicant must be at least three months delinquent on the first lien monthly mortgage payment 30 days previous to the commencement of the program; (2) Income Eligibility Limit- Applicant s pre-event income must be equal to or less than 120 percent of the Area Median Income (AMI), as determined by HUD and adjusted for family size; (3) Loss of Household Income -The applicant has incurred a substantial reduction in income as a result of involuntary unemployment or underemployment due to adverse economic conditions, or medical conditions, and is financially unable to make full mortgage payments; (4) Resumption of Mortgage Payments-there is a reasonable prospect that the homeowner will be able to make the adjustments necessary for a full resumption of mortgage payments within 2 years; and (5) Principle Residence- the mortgaged property is the principle residence of the mortgagor (applicant).
Program applicants will be assessed to determine if they meet this eligibility criteria.
Beneficiary Eligibility
Individuals residing in targeted States (list provided above) and Puerto Rico that have delinquent mortgages as a result of involuntary unemployment or underemployment due to an adverse economic or medical condition. Applicants/borrowers are the direct beneficiaries when they meet all eligibility criteria.
Credentials/Documentation
No Credentials or documentation are required. This program is excluded from coverage under OMB Circular No. A-87.
Aplication and Award Process
Preapplication Coordination
Preapplication coordination is not applicable.
Environmental impact information is not required for this program.
This program is excluded from coverage under E.O.
12372.
Application Procedures
This program is excluded from coverage under OMB Circular No. A-102. This program is excluded from coverage under OMB Circular No. A-110.
Award Procedures
Program applicants (homeowners) seeking direct loan assistance must provide documented proof of probable foreclosure; income eligibility; income loss and reason; and principle residence.
Guidelines for substantially similar State programs are provided in FR-5454-N-01.
For States receiving allocations through EHLP to administer their mortgage relief programs directly, OMB Circular No. A-87 also applies.
Deadlines
Contact the headquarters or regional office, as appropriate, for application deadlines.
Authorization
Emergency Homeowners Relief Act of 1975 Title I (12 U.S.C. 2701) , amended and reauthorized by the Dodd-Frank Wall Street Reform and Consumer Protection Act (Public Law 111-203), approved July 21, 2010., 12 U.S.C 2701.
Range of Approval/Disapproval Time
Not Applicable.
Appeals
Not Applicable.
Renewals
Not Applicable.
Assistance Considerations
Formula and Matching Requirements
This program has no statutory formula.
This program has no matching requirements. This program has no matching requirements.
This program does not have MOE requirements. This program does not have MOE requirements.
Length and Time Phasing of Assistance
There is no statutory formula for this program.
Each State allocation was determined based on a formula calculation using unemployment and mortgage delinquencies stats. Method of awarding/releasing assistance: lump sum.
Post Assistance Requirements
Reports
No reports are required.
Audits
In accordance with the provisions of OMB Circular No. A-133 (Revised, June 27, 2003), "Audits of States, Local Governments, and Non-Profit Organizations," nonfederal entities that expend financial assistance of $500,000 or more in Federal awards will have a single or a program-specific audit conducted for that year. Nonfederal entities that expend less than $500,000 a year in Federal awards are exempt from Federal audit requirements for that year, except as noted in Circular No. A-133. Audit requirements apply to States receiving formula grants under this program. In accordance with the provisions of OMB Circular No. A-133 (Revised, June 27, 2003), "Audits of States, Local Governments, and Non-Profit Organizations," nonfederal entities that expend financial assistance of $500,000 or more in Federal awards will have a single or a program-specific audit conducted for that year. Nonfederal entities that expend less than $500,000 a year in Federal awards are exempt from Federal audit requirements for that year, except as noted in Circular No. A-133.
There are no audit requirements for direct loan recipients.
Records
No Data Available.
Financial Information
Account Identification
86-4357-0-3-371 - Financing Account; 86-0407-0-1-371 - Program Account.
Obigations
(Direct Loans) FY 10 $0; FY 11 $1,000,000,000; FY 12 $0
Range and Average of Financial Assistance
State allocated amounts range from low $1,320,547 to high $135,418,959.
Regulations, Guidelines, and Literature
24 CFR Part 2700
Information Contacts
Regional or Local Office
None. None. Contact HUD Headquarters office provided below.
Headquarters Office
Wanda L. Sampedro 451 7th Street, SW, Washington, District of Columbia 20410 Email: wanda.sampedro@hud.gov Phone: 800-225-5342
Criteria for Selecting Proposals
Not Applicable.
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