Co-op and Condo Owners Get a Lifeline Against Foreclosure

Co-op shareholders and condo unit-owners are among the New York homeowners who will be eligible to apply for $539 million in federal pandemic-relief funding to catch up on their debt and stay in their homes, Gov. Kathy Hochul announced.

After a months-long delay, the Biden administration approved the state’s application to launch the Homeowner Assistance Fund, which will be fueled by money in the $1.9 trillion American Rescue Plan approved by the president and Congress in March, The New York Post reports. Not a single dollar of the state’s $539 million share of the rescue money had been available until now, which prompted a contingent of New York State legislators to write to U.S. Treasury Secretary Janet Yellen, arguing that the money was desperately needed “to prevent displacement of homeowners and mitigate hardships associated with the pandemic.”

Hochul praised the state legislators, the state’s congressional delegation and the Biden Administration for securing the funds. “We know that the economic pain of the pandemic has been felt disproportionately in rural communities, communities of color, and immigrant communities, and this program is a demonstration of our commitment to placing the needs of New Yorkers in need at the heart of our work,” she said.

Eligible applicants must have household incomes at or below 100% of the deemed “Area Median Income” and must be at least 30 days delinquent on monthly housing payments for their primary residence. Funding will be capped at $50,000 per household, and it can be applied to mortgage costs, monthly maintenance, taxes, utilities and more.

Homeowners can apply beginning Jan. 3 at nyhomeownerfund.org.