Struggling Homeowners Can Now Tap Pandemic-Related Fund For Overdue Utility And Internet Bills

By Cindy Gonzalez, Nebraska Examiner:

October 3, 2022

The State of Nebraska is expanding the types of overdue house-related bills that a federal aid program will cover to keep homeowners from being displaced.

The Nebraska Homeowner Assistance Fund, established in February with $50 million in federal funds, was designed to help eligible homeowners who have fallen behind in paying their mortgage, real estate taxes, insurance and homeowners association fees.

Internet coverage allowed

The newly announced changes don’t inflate the overall pot, but do allow for an increase in the aggregate amount each eligible household can tap. In addition, allowable uses for the funds have been expanded to cover past-due utility bills and internet costs.

“Review of applicant utility bills for secondary proof of residency indicates that many homeowners applying for NHAF are delinquent on one or more utility bills,” said a statement about the statewide program administered by the Nebraska Investment Finance Authority. “COVID-19 has also forced many Nebraskans to work from home. This makes internet service an integral part of pandemic-related assistance.”

Eligibility requirements include that household income must be equal to or less than 100% of local area median income. Help can be provided only for the homeowner’s primary residence.

So far more than $11 million has been distributed. Funds don’t have to be paid back and are to be disbursed to qualified homeowners until they run out or when the program expires in September 2025.

The homeowner assistance funds were allocated to Nebraska as part of the American Rescue Plan Act of 2021, and Gov. Pete Ricketts announced the program earlier this year.

The changes in the program came as a separate state-administered fund — one intended to help struggling renters in Nebraska’s 91 smaller counties — expired. That separate Emergency Rental Assistance Program expired Sept. 30, with about $20 million left that now must be returned to the U.S. Treasury.

Management of the rental aid program has been criticized by community housing agencies who said the state’s application process was too cumbersome and inaccessible.

Ricketts: One round is enough

Ricketts has refused to accept a second round of rental assistance for the state’s 91 smaller counties.

This apparently will be the last round for pandemic-impacted homeowners, too. Alex Reuss, Ricketts’ spokeswoman, said Monday that the governor decided to accept only one round of funding for both the state’s rental and homeowner assistance programs.

When asked earlier this year why he accepted the aid for homeowners but declined the second round for renters, the governor said the situations were different and that the federal rental assistance program was poorly designed.

“We don’t have the data to show we need the (additional) assistance,” he said of the rental aid. “We’re not trying to create a welfare state.”

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