Housing Finance Authorities in 10 states are eligible to receive up to $2.1 billion in Troubled Asset Relief Program (TARP) funds to assist homeowners in states hard hit by price declines and unemployment.
The HFA Hardest Hit Fund will pay for targeted relief programs including unemployment assistance to homeowners to help prevent foreclosures, mortgage modifications on loans held by HFAs or other financial institutions, programs to pay down principal on overleveraged loans, and assistance with short sales and deeds-in-lieu of foreclosure to prevent foreclosures.
Five states will receive an initial $1.5 billion round of funding announced by the White House in February: California ($700 million), Florida ($418 million), Michigan ($154 million), Arizona ($125 million) and Nevada ($103 million).
The first round of funding targeted states with home-price declines greater than 20 percent. Proposals are due from HFAs by April 16, with the first programs expected to be funded four to six weeks later.
The Treasury Department on Monday announced a second $600 million round of funding, to be distributed to five states: Ohio ($172 million), North Carolina ($159 million), South Carolina ($138 million), Oregon ($88 million) and Rhode Island ($43 million).
The second round of funding targets areas with high concentrations of people living in economically distressed areas, defined as counties in which the unemployment rate exceeded 12 percent in 2009.
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