Vermont’s $50M Homeowners Relief Package Includes Reverse Mortgage Relief

The state of Vermont announced on Monday that its own Home Owner Assistance Program (HAP), with a funding level of approximately $50 million, is now active in the state and includes assistance for borrowers. state reverse mortgages. That’s according to an announcement released by Governor Phil Scott’s (R) office.

Under the state-administered program, individual households in Vermont will receive grants of up to $30,000 to apply towards late mortgage payments, utility bills, property taxes and real estate association fees, according to the announcement. Like other state-administered programs aimed at helping homeowners recover from economic hardship caused by the COVID-19 pandemic, funding comes from the U.S. Federal Bailout Act (ARPA) championed by the House. White and passed in Congress in early 2021.

“As we move forward in our recovery, my administration is making housing a top priority,” Governor Scott said in an announcement launching the program. “In addition to supporting homeless people and building new homes, we must also work to keep Vermonters in their homes, to stabilize neighborhoods and keep our communities healthy. This program offers another tool to help accomplish this.

The passage of the American Rescue Plan Act was supported by the entire Vermont federal congressional delegation, including the senses. Patrick Leahy (D) and Bernie Sanders (I), along with Rep. Peter Welch. The three released a joint statement about the launch of the program.

“As foreclosure moratoriums and forbearance agreements come to an end, many Vermonters face an uncertain future,” the delegation said in its statement. “These funds will help homeowners hurt by the pandemic pay their bills and move forward.”

Earlier in the pandemic, the Vermont Housing Finance Agency (VHFA) organized its own state-funded homeowner assistance program, which has already provided relief to homeowners needing help with mortgage and property tax payments. . However, some residents – including reverse mortgage borrowers – did not have access to such programs. The American Rescue Plan Act-enhanced program, however, expands eligibility criteria for Vermont residents to include reverse mortgage borrowers, according to the state’s announcement.

“The additional federal funding from ARPA allows HAP to offer expanded criteria to support homeowners who do not have mortgages or who have reverse mortgages, and it will also cover utility bills and utility costs. association of owners and co-owners, to help even more households facing financial problems. challenges,” the statement read.

Vermont is the latest state to announce eligibility for reverse mortgage borrowers through its disbursement of Homeowner Assistance Program funds as allocated by the U.S. bailout. Recently, New York and California also outlined eligibility for reverse mortgages in their announcements.

Read status announcement.

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