RI Receives $50M In Federal Funding For Mortgage Assistance

PROVIDENCE, RI — Rhode Island homeowners struggling to keep up on mortgage payments can apply for a new relief program, announced Monday by Gov. Dan McKee and other state leaders.

The Homeowner Assistance Fund Rhode Island will offer $50 million in federal funding to help Rhode Islanders who are behind on mortgage payments due to the coronavirus pandemic.

"I am incredibly proud to launch this program and provide Rhode Islanders who have been financially impacted by COVID-19 with the support they need," McKee said. "Another example of our state providing critical support directly to our residents, these resources help families in our state to stay in their homes and potentially prevents others from experiencing homelessness. We are grateful to our federal delegation for their advocacy and Senator Reed for his leadership to ensure that all Rhode Island residents have access to a safe space to call home."

The program was spearheaded by Rhode Island Sen. Jack Reed, created as part of the federal coronavirus relief packaged approved last spring. $10 billion was allocated for the national program.

"I created this program to help prevent people from losing their homes," Reed said. "This is another example of the federal government giving states the resources to cope with impacts of the pandemic — in this case, averting further problems in our already stressed housing market. Getting this money out the door quickly is imperative if we want help families, neighborhoods, and communities."

The program is intended to cover delinquent payments on mortgages, property taxes, homeowner association fees utilities and home energy services for those experiencing financial hardships due to the pandemic.

RIHousing opened applications for the program after receiving approval from the U.S. Department of the Treasury of Rhode Island. Eligible applicants can receive up to 24 months of assistance, up to $50,000. In most cases, the money will be paid directly to the mortgage servicer, utility provider or other entity.

"For many, owning a home represents the American Dream and is likely the greatest source of economic and social stability for owner households," said Carol Ventura, the executive director of RIHousing. "The HAF-RI program provides vital resources for struggling Rhode Island homeowners and is a critical tool to help ease the pain of the pandemic felt by families and individuals across our state."

To qualify, homeowners must meet all the following requirements:

• Household must be below certain income limits, which varies by household size.
• Must own and occupy a 1 to 4-unit dwelling in Rhode Island
• Must have experienced a COVID-19 related financial hardship after Jan. 21, 2020
• Original mortgage balance must have been less than $548,250

Learn more about the program and see frequently asked questions on RI Housing's website.