15 U.S.C. § 9058d: Homeowner Assistance Fund

§9058d Homeowner Assistance Fund

Title 15 › CHAPTER 116 — CORONAVIRUS ECONOMIC STABILIZATION (CARES ACT) › SUBCHAPTER III — ECONOMIC STABILIZATION AND ASSISTANCE TO SEVERELY DISTRESSED SECTORS OF THE UNITED STATES ECONOMY › Part A — Coronavirus Economic Stabilization › § 9058d

Last updated Sep 23, 2026|Official source

Summary

Creates a Homeowner Assistance Fund and gives $9,961,000,000 to the Treasury for fiscal year 2021. The money is available until September 30, 2025. It must help homeowners who had money problems because of COVID after January 21, 2020. Allowed uses include help with mortgage payments, money to bring a loan current after forbearance or missed payments, cutting mortgage principal, lowering interest rates, and paying utilities, internet, insurance, HOA fees, or similar costs. It can also repay States or local governments that already spent money to help homeowners, and pay for other actions the Treasury Secretary says will keep people in their homes. At least 60% of each State’s share must go to households with income at or below 100% of area median income (or the U.S. median, if that is higher). States must prioritize any remaining help for socially disadvantaged people. The Treasury can keep up to $40,000,000 to run and help the program and up to $2,600,000 for its Inspector General. Money will be split to States, DC, and Puerto Rico based on need measured as of March 11, 2021 using recent unemployment and numbers of delinquent or foreclosing mortgages. Each State, DC, and Puerto Rico gets at least $50,000,000. The four territories (Guam, American Samoa, U.S. Virgin Islands, Northern Mariana Islands) share $30,000,000 by population. Five percent of the total is set aside for eligible tribal entities. Payments start no later than 45 days after March 11, 2021; States must request funds by that 45th day or risk losing their allocation, and unclaimed money will be reallocated by day 180. Key terms: conforming loan limit (max mortgage size), dwelling (home), eligible entity (States or certain tribal entities), mortgage (1–4 unit loans within the conforming limit), Fund (the program), Secretary (Treasury Secretary), State (includes listed territories).

Title 15, §9058d

Commerce and Trade, Source: USLM XML via OLRC

(a)Appropriation

In addition to amounts otherwise available, there is appropriated to the Secretary of the Treasury for the Homeowner Assistance Fund established under subsection (c) for fiscal year 2021, out of any money in the Treasury not otherwise appropriated, $9,961,000,000, to remain available until September 30, 2025, for qualified expenses that meet the purposes specified under subsection (c) and expenses described in subsection (d)(1).

(b)Definitions

In this section: (1) Conforming loan limit

(2)Dwelling

The term “dwelling” means any building, structure, or portion thereof which is occupied as, or designed or intended for occupancy as, a residence by one or more individuals.

(3)Eligible entity

The term “eligible entity” means—

(A)a State; or

(B)any entity eligible for payment under subsection (f).

(4)Mortgage

The term “mortgage” means any credit transaction—

(A)that is secured by a mortgage, deed of trust, or other consensual security interest on a principal residence of a borrower that is (i) a 1- to 4-unit dwelling, or (ii) residential real property that includes a 1- to 4-unit dwelling; and

(B)the unpaid principal balance of which was, at the time of origination, not more than the conforming loan limit.

(5)Fund

The term “Fund” means the Homeowner Assistance Fund established under subsection (c).

(6)Secretary

The term “Secretary” means the Secretary of the Treasury.

(7)State

The term “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.

(c)Establishment of Fund

(1)Establishment; qualified expenses

There is established in the Department of the Treasury a Homeowner Assistance Fund to mitigate financial hardships associated with the coronavirus pandemic by providing such funds as are appropriated by subsection (a) 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, which include—

(A)mortgage payment assistance;

(B)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;

(C)principal reduction;

(D)facilitating interest rate reductions;

(E)payment assistance for—

(i)utilities, including electric, gas, home energy, and water;

(ii)internet service, including broadband internet access service, as defined in section 8.1(b) of title 47, Code of Federal Regulations (or any successor regulation);

(iii)homeowner’s insurance, flood insurance, and mortgage insurance; and

(iv)homeowner’s association, condominium association fees, or common charges;

(F)reimbursement of funds expended by a State, local government, or designated entity under subsection (f) during the period beginning on January 21, 2020, and ending on the date that the first funds are disbursed by the eligible entity under the Homeowner Assistance Fund, for the purpose of providing housing or utility payment assistance to homeowners or otherwise providing funds to prevent foreclosure or post-foreclosure eviction of a homeowner or prevent mortgage delinquency or loss of housing or utilities as a response to the coronavirus disease (COVID) pandemic; and

(G)any other assistance to promote housing stability for homeowners, including preventing mortgage delinquency, default, foreclosure, post-foreclosure eviction of a homeowner, or the loss of utility or home energy services, as determined by the Secretary.

(2)Targeting

Not less than 60 percent of amounts made to each eligible entity allocated amounts under subsection (d) or (f) shall be used for qualified expenses that assist homeowners having incomes equal to or less than 100 percent of the area median income for their household size or equal to or less than 100 percent of the median income for the United States, as determined by the Secretary of Housing and Urban Development, whichever is greater. The eligible entity shall prioritize remaining funds to socially disadvantaged individuals.

(d)Allocation of Funds

(1)Administration

Of any amounts made available under this section, the Secretary shall reserve—

(A)to the Department of the Treasury, an amount not to exceed $40,000,000 to administer and oversee the Fund, and to provide technical assistance to eligible entities for the creation and implementation of State and tribal programs to administer assistance from the Fund; and

(B)to the Inspector General of the Department of the Treasury, an amount to not exceed $2,600,000 for oversight of the program under this section.

(2)For States

After the application of paragraphs (1), (4), and (5) of this subsection and subject to paragraph (3) of this subsection, the Secretary shall allocate the remaining funds available within the Homeowner Assistance Fund to each State of the United States, the District of Columbia, and the Commonwealth of Puerto Rico based on homeowner need, for such State relative to all States of the United States, the District of Columbia, and the Commonwealth of Puerto Rico, as of March 11, 2021, which is determined by reference to—

(A)the average number of unemployed individuals measured over a period of time not fewer than 3 months and not more than 12 months; and

(B)the total number of mortgagors with—

(i)mortgage payments that are more than 30 days past due; or

(ii)mortgages in foreclosure.

(3)Small State minimum

(A)In general

Each State of the United States, the District of Columbia, and the Commonwealth of Puerto Rico shall receive no less than $50,000,000 for the purposes established in (c) .

(B)Pro rata adjustments

The Secretary shall adjust on a pro rata basis the amount of the payments for each State of the United States, the District of Columbia, and the Commonwealth of Puerto Rico determined under this subsection without regard to this subparagraph to the extent necessary to comply with the requirements of subparagraph (A).

(4)Territory set-aside

Notwithstanding any other provision of this section, of the amounts appropriated under subsection (a), the Secretary shall reserve $30,000,000 to be disbursed to Guam, American Samoa, the United States Virgin Islands, and the Commonwealth of the Northern Mariana Islands based on each such territory’s share of the combined total population of all such territories, as determined by the Secretary. For the purposes of this paragraph, population shall be determined based on the most recent year for which data are available from the United States Census Bureau.

(5)Tribal set-aside

The Secretary shall allocate funds to any eligible entity designated under subsection (f) pursuant to the requirements of that subsection.

(e)Distribution of funds to States

(1)In general

The Secretary shall make payments, beginning not later than 45 days after March 11, 2021, from amounts allocated under subsection (d) to eligible entities that have notified the Secretary that they request to receive payment from the Fund and that the eligible entity will use such payments in compliance with this section.

(2)If a State does not request allocated funds by the 45th day after March 11, 2021, such State shall not be eligible for a payment from the Secretary pursuant to this section, and the Secretary shall, by the 180th day after March 11, 2021, reallocate any funds that were not requested by such State among the States that have requested funds by the 45th day after March 11, 2021. For any such reallocation of funds, the Secretary shall adhere to the requirements of subsection (d), except for paragraph (1), to the greatest extent possible, provided that the Secretary shall also take into consideration in determining such reallocation a State’s remaining need and a State’s record of using payments from the Fund to serve homeowners at disproportionate risk of mortgage default, foreclosure, or displacement, including homeowners having incomes equal to or less than 100 percent of the area median income for their household size or 100 percent of the median income for the United States, as determined by the Secretary of Housing and Urban Development, whichever is greater, and minority homeowners.

(f)Tribal set-aside

(1)Set-aside

Notwithstanding any other provision of this section, of the amounts appropriated under subsection (a), the Secretary shall use 5 percent to make payments to entities that are eligible for payments under clauses (i) and (ii) of section 9058a(b)(2)(A) of this title for the purposes described in subsection (c).

(2)Allocation and payment

The Secretary shall allocate the funds set aside under paragraph (1) using the allocation formulas described in clauses (i) and (ii) of section 9058a(b)(2)(A) of this title, and shall make payments of such amounts beginning no later than 45 days after March 11, 2021, to entities eligible for payment under clauses (i) and (ii) of section 9058a(b)(2)(A) of this title that notify the Secretary that they request to receive payments allocated from the Fund by the Secretary for purposes described under subsection (c) and will use such payments in compliance with this section.

(3)Adjustment

Allocations provided under this subsection may be further adjusted as provided by section 9058a(b)(2)(B) of this title.

Editorial Notes

Codification Section was enacted as part of the American Rescue Plan Act of 2021, and not as part of the CARES Act which in part comprises this chapter.

§9058d Homeowner Assistance Fund

Summary

Title 15, §9058d

Notes & Related Subsidiaries

Editorial Notes

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