Public Comment Period for Federal Housing Assistance Fund (CTHAF) Through September 17

Pilot Mortgage Assistance Program open to Borrowers of Participating Servicers

ROCKY HILL, Conn., September, 13 , 2021 – The Connecticut Housing Finance Authority (CHFA) in collaboration with the Connecticut Department of Housing (DOH) is seeking public comment on the draft Connecticut Homeowner Assistance Fund (CTHAF) Plan, prior to submitting the plan to the United States Treasury Department.  The draft plan can be reviewed at www.chfa.org/haf/.  Public comments can be emailed to: PublicComment@chfa.org until 5:00 p.m. on September 17, 2021. A public hearing will be held telephonically on September 17 at 10 a.m.  To participate in the public hearing, call (888) 330-1716. When prompted, enter the Access Code:  6880376.

As part of the American Rescue Plan Act of 2021 (ARPA), the U.S. Treasury Department has allocated approximately $123 million to Connecticut to assist homeowners with mortgage delinquencies, defaults and foreclosures, related to COVID-19 financial hardships.  The plan also includes assistance for qualified non-mortgage expenses, including but not limited to non-escrowed real estate taxes and insurance as well as condominium or homeowners’ association fees. Public comments will be considered and incorporated, if applicable, into CTHAF Plan before it is submitted to the Treasury Department for approval.  Within 45 days of approval, CHFA anticipates it will begin accepting applications for the CTHAF program.  Homeowners who would like to receive email updates on the CTHAF program can sign up at www.chfa.org/haf.

“Connecticut’s June 2021 delinquency rate (30-day +) is 4.9% with significant concentration in communities of color and low-income communities. With the Connecticut Homeowners’ Assistance Fund, we now have another tool in our toolbox to support our communities and working families can access these resources with confidence. It is imperative that we protect our homeowners as they are our front line in the stabilization of our economy,” said Department of Housing Commissioner Seila Mosquera-Bruno.

“The CTHAF program will provide up to $30,000 in assistance to income-qualified homeowners who are struggling to make their mortgage payments, are in forbearance, or are working to pay amounts in forbearance, due to COVID-19 related financial difficulties,” said Nandini Natarajan, CHFA’s Chief Executive Officer – Executive Director.  “We encourage input from the public to inform and strengthen our approach in distributing these ARPA funds,” Natarajan added.

In July, CHFA was one of just a few state Housing Finance Agencies nationally to launch a HAF Pilot Program. The Pilot program is using $10 million in expedited ARPA money to provide some level of relief earlier, while the CTHAF program plan is still being developed. The first phase was limited to borrowers working with AmeriNational Community Services, Idaho Housing and Financial Assistance, and Norcom Mortgage, to provide up to $20,000 of assistance to borrowers in their portfolios who were delinquent on their mortgages or needed assistance with back mortgage amounts due from the forbearance period.  During the first phase of the Pilot, only borrowers with incomes of 80% or less of Area Median Income were eligible.

A second phase of the HAF Pilot was launched in early September, raising the income threshold to 100% of area median income. This phase is limited to borrowers with mortgages serviced by participating servicers, which are listed at www.chfa.org/haf.  This phase will remain open until Pilot funds are exhausted or CHFA launches the comprehensive CTHAF program, which is expected to happen later this year.

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The Connecticut Housing Finance Authority (CHFA) was created in 1969 by the Connecticut Legislature as a self-supporting quasi-public housing finance agency charged with expanding affordable housing opportunities for the state’s low- and moderate-income families and individuals. CHFA has helped more than 146,000 Connecticut individuals and families become homeowners through its low-interest single-family mortgage programs. In addition, CHFA has financed the creation and rehabilitation of more than 56,000 affordable, rental units throughout the state. To date, the combined mortgage financing for CHFA’s single-and multifamily housing programs exceeds $17 billion. For more information: https://www.chfa.org