12 Florida Housing Finance Corporation
AFFORDABLE HOUSING PROGRAMS
homeowners have been advised, including 1,422 new homeowners who began receiving assistance in 2014. In addition, 676 of these homeowners were provided financial management education training. FLORIDA HARDEST-HIT FUND PROGRAM In 2010, the federal government announced funding to states with housing markets that had been hardest hit with foreclosures, housing price declines and unemployment. There are 18 states and the District of Columbia participating in the $7.6 billion Hardest-Hit Fund (HHF) program. From this funding, Florida’s final share totals more than $1 billion. A number of strategies are funded through the HHF. The Unemployment Mortgage Assistance Program (UMAP) provides assistance with payments to the mortgage lender (for 12 months or a maximum of $24,000, whichever comes first) to assist eligible borrowers with their first mortgage until they can resume payments on their own. Additionally, for homeowners who are delinquent on the first mortgage at the time they qualify for the UMAP, up to $18,000 can be paid to assist in bringing the past due first mortgage current. This assistance will fully or partially reinstate the first mortgage prior to the beginning of UMAP payments. The Mortgage Loan Reinstatement Program (MLRP) provides up to $25,000 as a one-time payment to assist in bringing a delinquent mortgage current for an eligible homeowner. The Principal Reduction (PR) program provides up to $50,000 to assist eligible Florida homeowners who owe at least 125% more on their home than its current market value, commonly referred to as the home being “underwater.” The funding is paid directly to the mortgage loan servicer to help reduce the principal balance of the first mortgage. The Modification Enabling Pilot Program (MEP) targets eligible homeowners whose loans were sold under the US Department of Housing and Urban Development’s (HUD) Distressed Asset Stabilization Program in calendar years 2012 through 2015, and purchased or acquired by National Community Capital (NCC). MEP assists these homeowners in modifying their mortgages to an affordable level to achieve a monthly total housing payment that does not exceed 35% of a borrower’s monthly income. Forgivable loans of up to $50,000 are available.
MEP funding may not be used to reduce the principal balance of an eligible borrower’s mortgage loan below 100% of the current market value of the property. The Elderly Mortgage Assistance Program (ELMORE) provides up to $25,000 to help senior homeowners with an existing reverse mortgage to remain in their homes by bringing current past-due property taxes, homeowner’s insurance, flood insurance and homeowners/ condo association dues (property charges) in cases where these property charges have been paid on behalf of the homeowner by their mortgage servicer. The homeowner may also be eligible to have up to 12 months of future property charges paid on their behalf. An evaluation of how the programs have helped homeowners stay in their homes shows that the two longest running programs, MLRP and UMAP, have helped stabilize these homeowners. At the end of 2014, MLRP’s 24-month homeownership retention rate was 96.4% and UMAP’s rate was 94.0%. Program Summary From program inception through the end of 2014, a total of $558,155,361 in HHF funds was reserved to assist 21,300 homeowners and $462,765,731 was disbursed. Some homeowners received assistance from more than one program. • $147,483,162 in UMAP funds was disbursed to assist 14,530 homeowners; • $120,814,077 in MLRP funds was disbursed to assist 13,773 homeowners; • $186,617,840 in PR funds was disbursed to assist 4,508 homeowners; • $2,301,715 in MEP funds was disbursed to assist 71 homeowners; and • $5,548,937 in ELMORE funds was disbursed to assist 401 homeowners.