HUD assigns $14.7 million to PR in the $1 billion EHLP

On October 5, 2010, the U.S. Department of Housing and Urban Development (HUD) announced an additional $1 billion of the Emergency Homeowners Loan Program (EHLP) for homeowners in 32 states and Puerto Rico. Puerto Rico received $14,714,668 per the official table in HUD release No. 10-225, for its relative share of unemployed homeowners outside the Treasury Hardest Hit Fund.

The program, authorized by Dodd-Frank in July, offers 0% bridge loans (deferred, subordinated, non-recourse, forgivable under conditions) of up to $50,000 for up to 24 months for arrears and payments of principal, interest, mortgage/hazard insurance and taxes. Eligible: at least three months delinquent, income reduction ≥15% from involuntary unemployment, underemployment or a medical condition, primary residence, no second home, and a reasonable likelihood of resuming payments within two years. HUD and Treasury Hardest Hit together totaled about $8.6 billion in parallel stabilization efforts.

Delivery would be dual: functions delegated to NeighborWorks America (NFMC counseling and outreach) plus a servicing/fiscal agent, or to state housing finance agencies with “substantially similar” programs. HUD aimed to open applications toward year-end. Announced allocation ≠ money already disbursed to borrowers; bridge loan ≠ automatic forgiveness or theft.

Source: U.S. Department of Housing and Urban Development. https://archives.hud.gov/news/2010/pr10-225.cfm