Home Owner Assistance Programs funds are designed to prevent mortgage delinquencies, foreclosures, utility or home energy service disruptions, and the displacement of individuals who are experiencing financial difficulty as a result of January 21, 2020. The Home Owner Assistance Programs may be utilized to assist people with paying their mortgages, purchasing homeowner’s insurance, paying for utilities, and fulfilling other requirements. The law prioritizes resources for individuals who have been affected the most, leveraging local and national income statistics to maximize the results.
States, the District of Columbia, U.S. territories, Tribes, and the Department of Hawaiian Home Lands can receive up to $9.961 billion through the American Rescue Plan Act to help our country’s most vulnerable homeowners.
The Homeowner Assistance Fund provides:
$498 million for Tribes or Tribally designated housing entities and the Department of Hawaiian Home Lands, the states of California, Washington, and Hawaii, the District of Columbia, and Puerto Rico, and the territories of Guam, American Samoa, the U.S. Virgin Islands, and the Commonwealth of the Northern Mariana Islands, all of which receive at least $50,000,000.
HOME OWNER ASSISTANCE PROGRAMS FUND GUIDANCE | U.S. DEPARTMENT OF THE TREASURY
August 8, 2022
What Is Home Owner Assistance Programs Fund?
The Treasury Department is issuing this guidance regarding the HomeOwner Assistance Program Fund (HAF), which was established under section 3206 of the American Rescue Plan Act of 2021 (the ARP). This guidance may be updated, revised, or modified at any time, and the Secretary of the Treasury may waive the terms of this guidance in her sole discretion to the extent permitted by law.1
Under the HAF (Home Owner Assistance Programs), Treasury will provide financial assistance in an aggregate amount of approximately $9.9 billion. Treasury has separately published information regarding the allocation of Home Owner Assistance Programs HAF funding for eligible entities.
PURPOSE OF THE Home Owner Assistance Programs Fund HAF
According to the ARP, the Home Owner Assistance Programs HAF was established to mitigate financial hardships associated with the coronavirus pandemic by providing funds to eligible entities for the purpose of preventing homeowner mortgage delinquencies, defaults, foreclosures, loss of utilities or home energy
services, and displacements of homeowners experiencing financial hardship after January 21, 2020, through qualified expenses related to mortgages and housing.
DEFINITIONS
Treasury will apply the following definitions for purposes of this guidance. 100% of the area median income for a household means two times the income limit for very[1]low income families, for the relevant household size, as published by the Department of Housing and Urban Development (HUD) in accordance with 42 U.S.C. 1437a(b)(2) for purposes of the Home Owner Assistance Programs HAF. When determining area median income with respect to tribal members, tribal governments and TDHEs may rely on the methodology authorized by HUD for the Indian Housing Block Grant Program as it pertains to households residing in an Indian area comprising multiple counties (see HUD Office of Native American Programs, Program Guidance No. 2021-01, June 22, 2021).
100% of the median income for the United States means the median income of the United States, as published by HUD for purposes of the Home Owner Assistance Programs HAF.
1. Guidance for Home Owner Assistance Programs HAF was initially released on April 14, 2021. The guidance was updated on November 12, 2021 to
provide additional guidance on the Home Owner Assistance Programs HAF plan process, updated definitions, additional guidance on qualified
expenses, administrative revisions arising from tribal consultations, and other updates to program requirements,
including to reflect the extension of the deadline for tribes, tribal entities, and the Department of Hawaiian Home
Lands to submit a notice of funds request. This guidance was further updated on February 24, 2022 to provide
additional guidance on the use of program income, eligible housing counseling services, administrative expenses,
eligible uses of funds, and approaches for household income verification. Treasury updated this guidance again on
August 8, 2022 to provide additional guidance on the reimbursement of certain qualified expenses.
2. 150% of the area median income for a household means three times the income limit for very[1]low income families, for the relevant household size, as published by HUD in accordance with
42 U.S.C. 1437a(b)(2) for purposes of the Home Owner Assistance Programs HAF. When determining area median income with
respect to tribal members, tribal governments and TDHEs may rely on the methodology
authorized by HUD for the Indian Housing Block Grant Program as it pertains to households
residing in an Indian area comprising multiple counties (see HUD Office of Native American
Programs, Program Guidance No. 2021-01, June 22, 2021).
Dwelling means any building, structure, or portion thereof that is occupied as, or designed or
intended for occupancy as, a residence by one or more individuals.
Eligible entity means (1) a State, (2) the Department of Hawaiian Home Lands, (3) each Indian
Tribe (or, if applicable, the tribally designated housing entity of an Indian Tribe) that was
eligible for a grant under Title I of the Native American Housing Assistance and Self[1]Determination Act of 1996 (25 U.S.C. 4111 et seq.) for fiscal year 2020, and (4) any Indian
Tribe that opted out of receiving a grant allocation under the Native American Housing Block
Grants program formula in fiscal year 2020.
Financial hardship means a material reduction in income or material increase in living expenses
associated with the coronavirus pandemic that has created or increased a risk of mortgage
delinquency, mortgage default, foreclosure, loss of utilities or home energy services, or
displacement for a homeowner.
Home Owner Assistance Programs HAF participant means an eligible entity that receives funds from the Home Owner Assistance Programs HAF.
Mortgage means any credit transaction (1) that is secured by a mortgage, deed of trust, or other
consensual security interest on a principal residence of a borrower that is (a) a one- to four-unit
dwelling, or (b) a residential real property that includes a one- to four-unit dwelling; and (2) the
unpaid principal balance of which was, at the time of origination, not more than the conforming
loan limit. For purposes of this definition, the conforming loan limit means the applicable
limitation governing the maximum original principal obligation of a mortgage secured by a
single-family residence, a mortgage secured by a two-family residence, a mortgage secured by a
three-family residence, or a mortgage secured by a four-family residence, as determined and
adjusted annually under section 302(b)(2) of the Federal National Mortgage Association Charter
Act (12 U.S.C. 1717(b)(2)) and section 305(a)(2) of the Federal Home Loan Mortgage
Corporation Act (12 U.S.C. 1454(a)(2)). A reverse mortgage, a loan secured by a manufactured
home, or a contract for deed (also known as a land contract) may fall within this definition if it
satisfies the criteria in this paragraph, in accordance with applicable state law.
Socially disadvantaged individuals are those whose ability to purchase or own a home has been
impaired due to diminished access to credit on reasonable terms as compared to others in
comparable economic circumstances, based on disparities in homeownership rates in the Home Owner Assistance Programs HAF
participant’s jurisdiction as documented by the U.S. Census. The impairment must stem from
circumstances beyond their control. Indicators of impairment under this definition may include
3. being a (1) member of a group that has been subjected to racial or ethnic prejudice or cultural
bias within American society, (2) resident of a majority-minority Census tract; (3) individual
with limited English proficiency; (4) resident of a U.S. territory, Indian reservation, or Hawaiian
Home Land, or (5) individual who lives in a persistent-poverty county, meaning any county that
has had 20% or more of its population living in poverty over the past 30 years as measured by
the three most recent decennial censuses. In addition, an individual may be determined to be a
socially disadvantaged individual in accordance with a process developed by a Home Owner Assistance Programs HAF participant
for determining whether a homeowner is a socially disadvantaged individual in accordance with
applicable law, which may reasonably rely on self-attestations.
State means any state of the United States, the District of Columbia, the Commonwealth of
Puerto Rico, Guam, American Samoa, the United States Virgin Islands, and the Commonwealth
of the Northern Mariana Islands.
NOTICE OF REQUEST TO RECEIVE HAF PAYMENTS
The ARP requires eligible entities to notify Treasury of their request to receive payment from the Home Owner Assistance Programs HAF. Treasury published a notice of funds request form, available at https://home.treasury.gov/policy-issues/coronavirus/assistance-for-state-local-and-tribal[1]governments/homeowner-assistance-fund, which must be completed, signed by an authorized official of the eligible entity, and returned to Treasury.
If any State (including the District of Columbia, the Commonwealth of Puerto Rico, Guam,
American Samoa, the United States Virgin Islands, and the Commonwealth of the Northern
Mariana Islands) did not submit a notice of funds request by April 25, 2021, the State would not
have been eligible for a payment from the Home Owner Assistance Programs HAF, and Treasury would have been required to
reallocate the funding that was previously allocated to that State among those States that did
request funding by the statutory deadline. All States submitted a notice of funds request to
Treasury by the deadline and, as such, no reallocations occurred.
The deadline for an Indian Tribe, tribal entity, or the Department of Hawaiian Home Lands to
submit a notice of funds request is December 15, 2021.
FINANCIAL ASSISTANCE AGREEMENT
Each eligible entity approved to receive payment from the Home Owner Assistance Programs HAF must enter into a financial
assistance agreement with Treasury. A form of the financial assistance agreement is available at
https://home.treasury.gov/policy-issues/coronavirus/assistance-for-state-local-and-tribal[1]governments/homeowner-assistance-fund.
QUALIFIED EXPENSES
Home Owner Assistance Programs HAF participants may use funding from the Home Owner Assistance Programs HAF only for the following types of qualified
expenses that are for the purpose of preventing homeowner mortgage delinquencies, homeowner
mortgage defaults, homeowner mortgage foreclosures, homeowner loss of utilities or home
energy services, and displacements of homeowners experiencing financial hardship:
1. mortgage payment assistance;
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2. financial assistance to allow a homeowner to reinstate a mortgage or to pay other
housing-related costs related to a period of forbearance, delinquency, or default;
3. mortgage principal reduction, including with respect to a second mortgage provided by a
nonprofit or government entity;
4. facilitating mortgage interest rate reductions;
5. payment assistance for:
a. homeowner’s utilities, including electric, gas, home energy (including firewood
and home heating oil), water, and wastewater;
b. homeowner’s internet service, including broadband internet access service, as
defined in 47 CFR 8.1(b) (or any successor regulation);2
c. homeowner’s insurance, flood insurance, and mortgage insurance;
d. homeowner’s association fees or liens, condominium association fees, or common
charges, and similar costs payable under a unit occupancy agreement by a resident
member/shareholder in a cooperative housing development; and
e. down payment assistance loans provided by nonprofit or government entities;
6. payment assistance for delinquent property taxes to prevent homeowner tax foreclosures;
7. measures to prevent homeowner displacement, such as home repairs to maintain the
habitability of a home, including the reasonable addition of habitable space to alleviate
overcrowding, or assistance to enable households to receive clear title to their properties;
8. counseling or educational efforts by housing counseling agencies approved by HUD or a
tribal government (including such efforts by in-house housing counselors who are HUD[1]certified or Tribally approved), or legal services, targeted to households eligible to be
served with funding from the Home Owner Assistance Programs HAF related to foreclosure prevention or displacement, in
an aggregate amount up to 5% of the funding from the Home Owner Assistance Programs HAF received by the HAF
participant;
9. reimbursement of funds expended by a state, local government, or entity described in
clause (3) or (4) of the definition above of “eligible entity” during the period beginning
on January 21, 2020, and ending on the date that the first funds are disbursed by the Home Owner Assistance Programs HAF
participant under the Home Owner Assistance Programs HAF, for a qualified expense (other than any qualified expense paid
directly or indirectly by another federal funding source, or any qualified expenses
described in clauses (6), (7), (8), or (10) of this definition);
10. planning, community engagement, needs assessment, and administrative expenses related
to the Home Owner Assistance Programs HAF participant’s disbursement of Home Owner Assistance Programs HAF funds for qualified expenses, in an
aggregate amount not to exceed 15% of the funding from the Home Owner Assistance Programs HAF received by the HAF
participant;
2 As of the date of this guidance, the definition of “broadband internet access service” in 47 CFR 8.1(b) is “a mass[1]market retail service by wire or radio that provides the capability to transmit data to and receive data from all or
substantially all internet endpoints, including any capabilities that are incidental to and enable the operation of the
communications service, but excluding dial-up internet access service. This term also encompasses any service that
the [Federal Communications] Commission finds to be providing a functional equivalent of the service described in
the previous sentence or that is used to evade the protections set forth in this part.”
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11. payment of lot rent for a manufactured home, where such payment would promote
housing stability and prevent the default of the resident of the manufactured home; and
12.reimbursement of funds expended by a state, local government, or entity described in
clause (3) or (4) of the definition above of “eligible entity” during the period beginning
on the date the participant received its initial Home Owner Assistance Programs HAF payment and ending on the date the
participant received the balance of funds requested in the participant’s HomeOwner Assistance Programs HAF plan for a
qualified expense consistent with the participant’s approved HomeOwner Assistance Programs HAF Plan (other than any
qualified expense paid directly or indirectly by another federal funding source).
If a contractor both plays an administrative role and provides housing counseling or other
services, a grantee must allocate costs based on each such activity.
Arrearages of qualified expenses are eligible for purposes of HomeOwner Assistance Programs HAF regardless of the date they
were incurred, including if they arose before January 2020. Funding from the HAF may not be
used for any use other than those provided for in this section. HAF participants may use program
income earned during the period of performance as a result of implementing the objectives of the
HAF award for eligible purposes outlined in this guidance. “Program income” is defined in 2
C.F.R. § 200.1 as gross income earned by a non-federal entity that is generated directly by a
supported activity or earned as a result of the federal award during the period of performance except
as provided by 2 C.F.R. § 200.307(f). Program income includes income from fees for services
performed, the use or rental of real or personal property acquired under federal awards, and
principal and interest on loans made with federal award funds. To the extent that HAF
participants use HAF funds to supplement other loss-mitigation efforts, Treasury encourages
participants to avoid using HAF funds in a manner that replaces other loss-mitigation resources
that would otherwise be available. The HAF Plan (described below) will enable HAF
participants to indicate whether they are requesting reimbursements under clause (9) above.
ELIGIBLE HOMEOWNERS
Homeowners3 are eligible to receive amounts allocated to a HAF participant under the HAF if
they experienced a financial hardship after January 21, 2020 (including a hardship that began
before January 21, 2020, but continued after that date) and have incomes equal to or less than
150% of the area median income or 100% of the median income for the United States, whichever
is greater. A HAF participant may provide HAF funds only to a homeowner with respect to
qualified expenses related to the dwelling that is such homeowner’s primary residence.
HAF participants must require homeowners to attest that they experienced financial hardship
after January 21, 2020. The attestation must describe the nature of the financial hardship (for
example, job loss, reduction in income, or increased costs due to healthcare or the need to care
for a family member).
The HAF does not preclude Tribes or TDHEs from providing assistance to members, or
individuals otherwise eligible for HAF, who reside outside the tribal government’s geographic
3 A HAF participant may determine an individual to be a “homeowner” if the individual holds a vested legal or
equitable ownership interest in the relevant dwelling, in accordance with applicable state law.
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jurisdiction. Tribal authorities should confirm that any such assistance can be provided
consistently with the Tribe’s constitution and governing law.
Income Determinations. With respect to each household applying for assistance, HAF
participants may use HUD’s definition of “annual income” in 24 CFR 5.609 or use adjusted
gross income as defined for purposes of reporting on Internal Revenue Service (IRS) Form 1040
series for individual federal annual income tax purposes.
HAF participants must have a reasonable basis under the circumstances for determining income
for purposes of the requirements described above under “Eligible Homeowners.” Two
approachesfor income verification are permissible: (1) the household may provide a written
attestation as to household income together with supporting documentation such as paystubs,
W2s or other wage statements, IRS Form 1099s, tax filings, depository institution statements
demonstrating regular income, or an attestation from an employer; or (2) the household may
provide a written attestation as to household income and the HAF participant may use a
reasonable fact-specific proxy for household income, such as reliance on data regarding average
incomes in the household’s geographic area. Grantees may make reasonable determinations as to
what constitutes a household for the purposes of the required household income determination.
HAF participants may provide waivers or exceptions to this documentation requirement as
reasonably necessary to accommodate extenuating circumstances, such as disabilities, practical
challenges related to the pandemic, or a lack of technological access by homeowners; in these
cases, the HAF participant is still responsible for making the required determination regarding
household income and documenting that determination.
If a HAF participant chooses to require households to provide supporting documentation for
purposes of income determination, Treasury encourages HAF participants to avoid establishing
documentation requirements that are likely to be barriers to participation for eligible households,
including those with irregular incomes such as from a small business. Treasury also encourages
grantees to exclude public benefits, such as Supplemental Nutrition Assistance Program benefits,
from the calculation of income.
Treasury discourages HAF participants from imposing additional eligibility criteria such as
foreclosure status, credit score, bankruptcy status, the existence of liens on the property, or
previous cash-out refinances. HAF participants that wish to include additional eligibility criteria
beyond those described in this guidance and other program documentation issued by Treasury
must explain with specificity how those criteria would further the objectives of the HAF,
including how they would help the program reach eligible homeowners.
TARGETING
Not less than 60% of amounts made available to each HAF participant must be used for qualified
expenses that assist homeowners having incomes equal to or less than 100% of the area median
income or equal to or less than 100% of the median income for the United States, whichever is
greater. Any amount not made available to homeowners that meet this income-targeting
requirement must be prioritized for assistance to socially disadvantaged individuals, with funds
remaining after such prioritization being made available for other eligible homeowners.
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INITIAL PAYMENTS
Treasury made initial payments from the HAF available to eligible entities that are approved to
participate in the HAF in an amount equal to 10% of the total amount allocated to the eligible
entity. In order to receive this initial payment, the eligible entity was required to (1) enter into the
financial assistance agreement with Treasury described above and (2) commit to use the funds
only for qualified expenses (other than those under clause (9) of the “Qualified Expenses”
section above). Treasury made these payments to the eligible entity or agency of the eligible
entity identified on the eligible entity’s notice of funds request. No more than 50% of the initial
payment was permitted to be used for planning, community engagement, needs assessment, and
administrative expenses described in clause (10) of the “Qualified Expenses” section above. Any
eligible entity that elected not to receive this initial payment would receive its allocated funds
after Treasury approves its HAF plan, as described below.
Treasury encouraged HAF participants to use these initial payments to create or fund pilot
programs to serve targeted populations, and to focus on programs that are most likely to deliver
resources most quickly to targeted populations, such as mortgage reinstatement programs.
HAF PLAN
To receive the remainder of its allocation, an eligible entity must develop and submit a plan for
its use of HAF funding. These HAF plans will describe in detail the needs of homeowners within
the relevant jurisdiction, the design of each program the eligible entity proposes to implement
using HAF funds, performance goals, and information regarding the eligible entity’s readiness to
implement the programs. In developing HAF plans, Treasury expects that eligible entities will
follow their state open meeting or “sunshine” laws (with associated public hearings conducted in
a manner appropriate for local public health conditions), and Treasury encourages eligible
entities to post draft HAF plans for public comment and hold public hearings. HAF participants
will receive their remaining funds under the HAF only after Treasury approves a HAF plan.
Treasury has provided eligible entities with a template for the HAF plan, which includes the
following elements.
HAF PLAN SUBMISSION
Treasury will open a portal online for HAF participants to enter and submit their HAF plan.
Treasury is extending the deadline for each State to submit a completed HAF plan or provide
Treasury with an estimated date by which a HAF plan will be submitted to 14 days after the
portal becomes accessible.
A HAF participant may elect to submit a single, comprehensive HAF plan that describes the
intended uses for the participant’s entire HAF allocation, or multiple, partial HAF plans that each
describe only a portion of the intended uses for the participant’s allocation. Submission of partial
HAF plans may allow HAF participants to proceed more quickly to implement portions of their
plan while conducting planning and community engagement for other aspects. Treasury will
promptly begin reviewing HAF plans that are submitted before the deadline.
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HAF PLAN COMPONENTS
The HAF plan template provided by Treasury includes sample language and term sheet
templates that HAF participants may use to develop their plans. Treasury encourages HAF
participants to use these examples and templates to promote consistency across programs,
minimize operational complexity, and promote a common understanding of eligibility criteria. If
deviating from these examples and templates, HAF participants should specifically explain how
their approach would further the objectives of the HAF, including the targeting and prioritization
requirements.
HAF plans will address the following issues.
• Homeowner Needs and Engagement:
o Data-Driven Assessment of Homeowner Needs: HAF participants must provide
information and data that they use to design their programs in a way that
effectively targets eligible homeowners. HAF participants must include data about
financial hardships of target homeowners and socially disadvantaged individuals,
including data on mortgage delinquencies, defaults, foreclosures, post-foreclosure
evictions, and the loss of utilities or home energy services, including trends over
time disaggregated by demographic categories and geographic areas.
o Evidence of Public Participation and Community Engagement: HAF participants
should seek input from organizations and individuals representing eligible
homeowners regarding the data-driven assessment of homeowner needs. HAF
plans must describe the extent to which their information on homeowner needs
reflects their engagement with organizations and individuals representing eligible
homeowners, and how the HAF participant will allow for public participation in
the development of the HAF plan, including any public hearings.
• Program Design:
o Program Descriptions: HAF participants must describe each program for which
they will use HAF funding. The description must describe the targeted population
of homeowners and the financial challenges the program would address based on
the data-driven assessment of homeowner needs (e.g., the immediate challenge of
mortgage delinquency, or displacement prevention). Each program description
must include a description of eligibility requirements; the intended impact on
eligible homeowners; the application process; conditions or limitations, including
the maximum dollar amount that the program will provide to each homeowner for
each type of qualified expense; a description of the payment process; and other
available sources of assistance for targeted homeowners. HAF participants must
have one or more programs intended to reduce mortgage delinquency among
targeted populations. Treasury encourages HAF participants to consider
homeownership preservation programs for low-income households in areas where
property taxes and utility costs are increasing, including for households that do
not have mortgages. Treasury also encourages HAF participants to consider
program designs that leverage utility assistance from other federal programs that
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have been created expressly for that purpose before using HAF funds for utility
assistance.
o Equity and Accessibility: HAF participants should design programs to be as
accessible as possible to homeowners in different circumstances, including by
offering multiple intake formats, engaging with nonprofit organizations to provide
additional pathways into the program, and providing culturally and linguistically
relevant outreach.
o Methods for Targeting HAF Funding: The HAF plan must describe how the HAF
participant will effectively target HAF resources to (1) homeowners having
incomes equal to or less than 100% of the area median income or equal to or less
than 100% of the median income for the United States, whichever is greater; and
(2) socially disadvantaged individuals. The HAF participant must describe its
targeting strategies according to disaggregated characteristics of the targeted
population such as income ranges, racial and ethnic demographics, and/or
geographic areas (including rural communities), as appropriate for the relevant
jurisdiction. Targeting methods may include marketing, community engagement
strategies, partnerships with housing counseling agencies or legal aid
organizations, or other educational services that are aligned with the HAF
participant’s program design, in a manner that is culturally and linguistically
relevant to the targeted communities.
Treasury encourages HAF participants to prioritize assistance to homeowners
who have Federal Housing Administration (FHA), Department of Veterans
Affairs (VA), or U.S. Department of Agriculture (USDA) mortgages and
homeowners who have mortgages made with the proceeds of mortgage revenue
bonds or other mortgage programs that target low- and moderate-income
borrowers. In addition, homeowners with private mortgages may be at greater risk
of foreclosure due to limited options for loss mitigation, so the HAF plan must
describe how the HAF participant will determine and address these needs.
o Best Practices and Coordination with Other HAF participants: The HAF
participant must describe the extent to which its program descriptions or models
are based on best practices and/or the participant’s effective implementation of a
previous program, including those funded with the initial payment under HAF.
The HAF participant should describe its efforts to coordinate with other HAF
participants, or plan for coordination, including with respect to engagement with
mortgage servicers that operate in multiple states or with recipients of other large
federal grants or financial assistance funds. Treasury encourages HAF participants
to develop and participate in information-sharing with servicers through a
Common Data File format. Further, Home Owner Assistance Programs HAF participants should describe any
relevant coordination with federal agencies including FHA, VA, and USDA, as
well as with state or local agencies that hold mortgage portfolios that have
covenants or targeting requirements that match the Home Owner Assistance Programs HAF participants’ HAF
targeting strategies and goals.
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• Performance Goals:
o Each HAF participant must establish goals and benchmarks, by program and by
targeted population, for assistance using HAF funds. The performance goals must
identify how they address homeowner needs identified by the HAF participant in
its plan. Performance goals must be disaggregated by key characteristics such as
mortgage type, racial and ethnic demographics, and/or geographic areas
(including rural communities), as appropriate for the jurisdiction. Each HAF
participant must include a goal focused on reducing mortgage delinquency among
targeted populations.
• Readiness:
o Staffing and Systems: The HAF participant must describe the staffing and systems
in place or planned to ensure effective program delivery, compliance, and
reporting, in a manner consistent with applicable program requirements and
guidance using the programs described in the plan.
o Contracts and Partnerships: The HAF participant must describe the contractors,
partners, and other organizations that are critical to the HAF participant’s program
delivery, compliance, and reporting.
o Existing and Pilot Programs: The HAF participant must describe in detail how it
used its initial 10% payment, if applicable (as described above under “Initial
Payments”).
• Budget:
o The HAF participant must provide a budget, by qualified expense category, using
a template that Treasury will provide.
In lieu of the detailed HAF plans described above, Treasury has provided a streamlined template
to be submitted by any HAF participant that is allocated less than $5 million of HAF funds.
Other HAF participants must submit a more detailed HAF plan as described above.
HAF PLAN ASSESSMENTS AND APPROVALS
Treasury will assess HAF plans based on the following factors:
• Alignment of Community Needs and Program Design: The extent to which programs
are responsive to community needs and based on a best practice model or evidence of the
HAF participant’s effective implementation of a previous program or pilot program.
• Alignment of Performance Goals with Data on Targeted Populations: The extent to
which the performance goals would address the needs of specific eligible populations
within targeted communities, in a manner that is appropriate to the jurisdiction.
• Methods of Targeting: The extent to which the HAF participant describes targeting
methods reasonably likely to result in HAF assistance being made available to eligible
homeowners consistent with the targeting requirements described in the ARP and in
applicable guidance issued by Treasury. Recognizing that homeowners earning up to
100% of the area median income are overrepresented in portfolios of government-backed
and guaranteed mortgages compared to the market as a whole, Treasury will favorably
consider the prioritization of assistance to homeowners who have FHA, VA, or USDA
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mortgages, and to homeowners who have mortgages made with the proceeds of mortgage
revenue bonds or other mortgage programs that target low- and moderate-income
borrowers, when assessing a HAF participant’s proposed methods of targeting HAF
funds.
-
Readiness: The extent to which the HAF participant demonstrates readiness to
implement a program at scale, including having in place policies and procedures for the
program and an appropriate mix of staffing, contractors, and partners. Implementation of
a pilot program or pre-existing program that successfully targeted resources to the
targeted populations will be a strong indication of readiness.
• Alignment of Budget with Performance Goals: The extent to which the funding
budgeted by program reasonably supports the achievement of the performance goals.
Treasury may approve a HAF plan in whole or in part. If Treasury approves a Home Owner Assistance Programs HAF plan only in
part, the HAF participant will be provided an opportunity to address the weaknesses identified by
Treasury. Treasury may also return a HAF plan to the HAF participant with recommendations
for improvement and resubmission to Treasury for reconsideration. In addition, to enable Home Owner Assistance Programs HAF
participants to rapidly receive approval for certain HAF-funded programs that can be developed
quickly, a HAF participant may elect to submit multiple HAF plans over time regarding different
programs it proposes to implement. After Treasury approves a Home Owner Assistance Programs HAF plan in whole or in part,
Treasury will inform the HAF participant of the schedule for disbursements to the participant for
purposes of the approved portions of the plan.
In the event that the information required in the HAF plan is not available to a Tribe, Treasury
will accept alternative information regarding the relevant community. In addition, a Home Owner Assistance Programs HAF plan
submitted by a Tribe whose population consists largely or entirely of socially disadvantaged
individuals may be tailored to reflect the limited effort necessary to target its programs for those
individuals.
A HAF participant must seek prior approval from Treasury to reallocate funding from a program
as described in the approved HAF plan to be used for a different purpose if any of the following
is true:
• the aggregate reallocations from any qualified expense category equals or exceeds 10%
of the amount allocated to that qualified expense category in the HAF plan approved by
Treasury;
• the HAF participant is proposing to allocate funding to a new qualified expense category
or is creating a new program or terminating a previously approved program; or
• the reallocation redirects 1% or more of the participant’s total HAF allocation from
program costs to administrative costs.
REPORTING AND MONITORING
HAF participants will be required to submit quarterly reports to Treasury that include financial
data, targeting data, and other information. Treasury will release additional guidance regarding
HAF reporting. HAF participants will be subject to the reporting requirements under 2 C.F.R.
Part 200, other than such provisions as Treasury may determine are inapplicable to the HAF.
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HAF participants will also be required to submit an annual program report to Treasury regarding
the impact of the HAF program.
SANCTIONS
In the event of a HAF participant’s noncompliance with applicable law or HAF program
requirements or guidance, Treasury may impose additional conditions on the receipt of
additional HAF funds by the HAF participant, terminate further payments from the HAF, seek
the repayment of previous HAF payments, or take other available remedies
Reference: HOMEOWNER ASSISTANCE FUND GUIDANCE (treasury.gov)
