Through the HFA Hardest Hit Fund, Housing Finance Authorities in 10 states are eligible for $2.1 billion in funds from the Troubled Asset Relief Program (TARP). The funds are to assist those homeowners at the center of the housing crisis, who have been hit hard by unemployment and declining prices.

Targeted relief programs funded by the expansion include unemployment assistance to prevent foreclosures, assistance for borrowers who owe more than their home is now worth, help for those challenged by second mortgages, and programs that encourage affordable and sustainable ownership.

The first five states to receive the initial round of funding at $1.5 billion are California ($700 million), Florida ($418 million), Michigan ($154 million), Arizona ($125 million) and Nevada ($103 million). The second round of funding at $600 million, as announced by the Treasury Department, will be distributed to Ohio ($172 million), North Carolina ($159 million), South Carolina ($138 million), Oregon ($88 million) and Rhode Island ($43 million).

"During these difficult economic times, we will work to help responsible homeowners stay in their homes and stabilize the housing market so home values can rise. This program will allow housing finance agencies in the places hardest-hit by the housing crisis find innovative ways to help homeowners stay afloat, and empower local agencies that know these communities best," said President Obama.

Read more at Inman News and the official press release.

Posted in MBI Headlines, Ownership

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