Alaska Housing Finance Corporation recently announced that nearly 11,000 Alaska households will receive some form of financial aid through the congressionally funded Homeowner Assistance program.

All eligible applicants will receive financial assistance. The goal is to reduce mortgage delinquencies, forbearances, and foreclosures, and prevent loss of utilities or energy services for homeowners impacted financially by the COVID-19 pandemic, according to a recent press release.

Alaska is one of 15 states that received $50 million from the U.S. Treasury as part of the Housing Assistance Fund.

Alaska Housing is currently in the second phase of the program, requesting and evaluating homeowner liabilities specific to each applicant after validating the identities of applicants and confirming eligibility based on income.

This includes working with mortgage servicers across the country to determine the amount of assistance that may be offered to each qualifying applicant.

“After evaluating the data, our team has a comprehensive picture of statewide needs and the levels of the financial crisis that Alaska homeowners are facing,” Alaska Housing CEO/Executive Director Bryan Butcher stated in the press release.

“With funding available to cure the delinquencies of those who qualify within U.S. Treasury guidelines (up to $40,000), our efforts will now turn to accelerate the next phase of the review process.”

Over 12,000 Alaskans from every corner in the state utilized the Alaska Housing eligibility checker to determine their eligibility for assistance, according to the press release.

Of the 10,979 applications turned in from March 14 through April 4 and through subsequent appeals, 2,384 applicants indicated they were past due on their mortgage; 1,516 said they were at risk of foreclosure; and 1,488 indicated they were in forbearance for an average of nine months.

Data from the applications showed an average monthly mortgage payment of $1,498, utility payment of $567, and an average amount of other household expenses estimated at $586.

Roughly 1,000 eligible applicants who requested assistance with only utility expenses are scheduled for the first round of payments to be paid by three identified non-profit partners: Helping Alaska, Kodiak Brother Francis, and Valley Charities. Notification and fund distribution for these applicants is expected to begin this month.

Funds for eligible applicants of mortgage assistance or reinstatement will be distributed mirroring AHFC’s successful Rent Relief process. AHFC will disburse federal funds directly to the eligible applicants’ mortgage servicer, mortgage contract holder, manufactured/mobile home lender, condominium/homeowners association, local taxing authority, and utility provider.

No funds will be provided directly to applicants. The maximum amount of funds any household can benefit from is $40,000 with mortgage delinquencies prioritized over other expenses.

More information:

Depending on the applicant’s need and eligibility, assistance will be distributed through one of three avenues:

  • Utility Assistance: Providing two months of upcoming utility payments based on a two-month average of the individual’s utility costs. Past-due utility expenses will not be addressed.
  • Mortgage Assistance: Providing up to two mortgage payments and utility payments with vendors identified at the time of application.
  • Mortgage Reinstatement: Prioritized to bring past-due mortgage payments current and the potential to address past-due utilities with vendors identified at application.

For more information regarding Alaska Housing Homeowner Assistance or Alaska Housing Rent Relief, visit AlaskaHousingRelief.org. For all other AHFC programs, visit ahfc.us.

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