The March 2021 American Rescue Plan Act contained roughly $1.9 trillion in government spending, targeted towards reversing the negative economic impacts of the coronavirus pandemic. The largest portion of the measure was a $450 billion stimulus package—responsible for the $1,400 stimulus checks, the third round of payments since the beginning of the pandemic. A second key measure was a year-long increase in the Child Tax Credit, raising it by 50 to 80 percent and sending the checks out in advance of tax filing. Other government measures include federal unemployment insurance, set to expire in September, and the Centers for Disease Control or Prevention’s (CDC) federal eviction moratorium, recently extended until July 31. 

A lesser-known but still consequential piece of the legislation was the establishment of the Homeowners Assistance Fund (HAF), a government fund intended to help homeowners who are struggling with mortgage payments. The fund is intended to prevent homeowners from losing their homes due to the economic consequences of the pandemic. According to the Department of the Treasury, the fund was established “to prevent mortgage delinquencies and defaults, foreclosures, loss of utilities or home energy services, and displacement of homeowners experiencing financial hardship after January 21, 2020.” 

Additionally, the Treasury Department outlines how the funds can be spent: “Funds from the HAF may be used for assistance with mortgage payments, homeowner’s insurance, utility payments, and other specified purposes. The law prioritizes funds for homeowners who have experienced the greatest hardships, leveraging local and national income indicators to maximize the impact.” 

The need for such a fund is clear. In April, the New York Times reported that more than three million households were behind on mortgages. While evictions have been banned by the CDC throughout the pandemic, ostensibly as a public health measure, when the moratorium ends, thousands of Americans will become homeless overnight. In some ways, home foreclosure is a more dire concern than renters’ eviction, as prospective homeowners have typically invested far more into the residence they are being evicted from. 

To prevent such a disaster, programs such as the Homeowner Assistance Funds have been established. To claim funds from the HAF, homeowners must submit a claim to their state’s housing agency, outlining how the pandemic affected their ability to make mortgage payments. They must show evidence that they lost income or employment during the pandemic, and must prove that their income is not disproportionate to the average income of their area. 

To learn more, the National Council of State Housing Agencies has a clearing page linking to each state’s housing agency for help in applying.

Trevor Filseth is a current and foreign affairs writer for The National Interest. 

Image: Reuters