In the wake of the nation's worst economic crisis since the Great Depression, the Administration enlisted state HFAs' help in solving some of the nation’s toughest housing problems. On February 19, 2010, President Obama announced the creation of the Hardest Hit Fund, a plan to provide $1.5 billion in funds from the Troubled Asset Relief Program (TARP) to state HFAs in the five states (Arizona, California, Florida, Michigan, and Nevada) hardest hit by unemployment and foreclosure to help them administer new foreclosure prevention programs. 

This initiative has since been expanded to include 13 additional jurisdictions that had sustained unemployment rates at or above the national average over the past year through June 2012. Participating agencies include the original five states as well as North Carolina, Ohio, Oregon, Rhode Island, South Carolina, Alabama, Washington DC, Georgia, Illinois, Indiana, Kentucky, Mississippi, New Jersey, and Tennessee. All total, the Administration has committed $7.6 billion through 2017 to help participating HFAs aide struggling homeowners.  

Since the initiative was first announced, HFAs have utilized Hardest Hit Funds in a variety of unique ways to help homeowners avoid foreclosure. Treasury has taken a flexible approach to this program that allowed HFAs to tailor their individual initiatives to best fit the needs of their states. For example, some HFAs have received permission to use Hardest Hit Funding to remove blight in troubled neighborhoods. By the end of the second-quarter of 2013, HFAs had committed just over $1.65 billion to help almost 127,000 homeowners. 

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National (Newsroom)

On February 19, President Obama spoke about the economy at a town hall meeting at Green Valley High School in Henderson, Nevada. In his remarks he announced a $1.5 billion fund for housing financing agencies.

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