Hardest Hit Foreclosure Initiative

In the wake of the nation’s worst economic crisis since the Great Depression, the federal government enlisted state HFAs’ help in solving some of the nation’s toughest housing problems. On February 19, 2010, President Barack Obama announced the creation of the Hardest Hit Fund (HHF), 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 was 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.

Since the initiative was first announced, HFAs have utilized the Hardest Hit Fund 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 homeowner assistance initiatives to best fit the needs of their states. Some HFAs have received permission to use HHF funding to remove blight in troubled neighborhoods.

Recognizing the program’s success, Congress at the end of 2015 extended HHF for three more years, from 2017 to 2020, and appropriated an additional $2 billion for the program. All total, Congress and the Administration have committed $9.6 billion through 2020 to help participating HFAs aide struggling homeowners.

Through the first quarter of fiscal year 2018, HFAs have assisted nearly 360,000 homeowners through a number of different HHF-funded programs, including principal reduction, down payment assistance, mortgage payment assistance, and transition assistance. The program has also supported the demolition of almost 24,000 blighted homes, helping to stabilize property values and restore troubled neighborhoods.

More information about the Hardest Hit Fund program is available on Treasury’s website.


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