Pritzker Administration Launches $150
Million in Emergency Mortgage Assistance
Applications Now Available to Help 10,000
Homeowners at: ema.ihda.org
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[September 15, 2020]
Governor JB Pritzker and the Illinois Housing
Development Authority (IHDA) announced the opening of the state’s
new Emergency Mortgage Assistance (EMA) program to assist homeowners
who have seen their income decline due to the COVID-19 pandemic.
Through the EMA program, IHDA will allocate grants up to $15,000 to
help income-eligible homeowners who have struggled to make their
mortgage payments as a result of the pandemic. Applications are now
available at ema.ihda.org and IHDA expects to assist approximately
10,000 households before the end of 2020.
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“At a time when the connection between housing and
health is clearer than ever, it is critically important that we keep
families stably housed for individual well-being, public health and
the recovery of our state’s economy,” Governor JB Pritzker said. “My
administration remains committed to doing everything we can to
provide much-needed support for Illinois residents who have been hit
hardest by the pandemic, which is why we created the largest state
housing assistance programs in the nation in response to the
COVID-19 pandemic to date. The Emergency Mortgage Assistance program
will provide critical support for our homeowners, giving them the
time they need to regain their financial footing.”
The Household Pulse Survey conducted by the U.S. Census found that
over 1 in 10 Illinois homeowners have little-to-no confidence in
making their mortgage payment in September. A single foreclosure
costs the homeowner, servicer and local government nearly $80,000,
adding additional strain to the housing cycle. Foreclosed homes also
lower neighboring property values by up to 3.9 percent according to
the Federal Reserve.
“Everyone suffers when a friend, family member or neighbor goes into
foreclosure, and the pandemic has left too many families at risk of
losing their homes,” said IHDA Executive Director Kristin Faust.
“The Emergency Mortgage Assistance Program is a vital opportunity
for homeowners get the support they need during this difficult time,
and I encourage those who have lost a job or seen their income
decline as a result of COVID-19 to visit our application portal to
apply today.”
Emergency Mortgage Assistance Program
Available August 24, 2020, the Emergency Mortgage Assistance Program
(EMA) will assist homeowners who have experienced a COVID-19-related
loss of income resulting in past due mortgage balances sometime
after March 2020. Approved applicants will receive up to $15,000
paid directly to their mortgage servicer.
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Assistance will cover the homeowner’s past due or
forbearance balance and their regular mortgage payments through
December 30, 2020, or until the funding is exhausted, whichever
comes first. Payments may include all escrowed first mortgage
expenses including property taxes, insurance and certain fees. The
assistance will be in the form of a grant and repayment will not be
required. Applications for EMA will be accepted from August 24th
through September 4th.
Due to anticipated high volume, the application
window may close early. IHDA will use a third-party entity to select
a pool of applications to be reviewed for eligibility. The program
is expected to assist approximately 10,000 households. Apply online
at: ema.ihda.org.
Homeowner Eligibility:
• Household adjusted gross income from 2019 Tax Return was at or
below 120 percent of the Area Median Income;
• An adult member of the household has had a loss of income due to
the COVID-19 crisis on or after March 1, 2020;
• Homeowner’s mortgage was current through February 29, 2020; and
• The mortgage is past due or in forbearance.
Financial assistance from the EMA program is funded through
Illinois’ allocation of federal Coronavirus Relief Funds from the
Coronavirus Aid, Relief, and Economic Security (CARES) Act (P.L.
116-136). Passed in March 2020, the CARES Act provided $3.5 billion
in Coronavirus Relief Funds to the State of Illinois to help
residents and businesses impacted by the pandemic. In May, the
Illinois General Assembly directed $396 million of this funding to
IHDA to provide direct assistance to struggling renters and
homeowners. The funding must be completely distributed by December
30, 2020.
[Illinois Office of Communication and
Information] |