WASHINGTON - Today U.S. Representative John Spratt (D-SC) announced additional support for South Carolina through two rounds of funding from the Housing Finance Agency Innovation Fund for the Hardest Hit Housing Markets (Hardest Hit Fund), a foreclosure-prevention program aimed at helping homeowners struggling with unemployment.
Spratt said South Carolina will receive almost $200 million in Hardest Hit Funds.
“South Carolinian homeowners are hurting and the Hardest Hit Fund provides much needed additional support,” Spratt said. “This will allow responsible homeowners the chance to reduce their monthly mortgage payment to affordable levels.”
Background:
In March, the White House announced additional foreclosure-prevention funding for five states with high percentages of their population living in areas of economic distress due to unemployment, including South Carolina. All five states’ Housing Finance Agencies (HFA) were then required to submit their proposals for how their Hardest Hit Funds would be administered. On August 4, 2010, the U.S. Treasury Department approved South Carolina and the other states’ proposals. Through this round of funding, South Carolina will receive $138 million.
Then, on August 11, 2010, the White House announced an additional round of funding for 18 states, including South Carolina, to go towards foreclosure prevention for states that suffer from above-average unemployment. South Carolina may use this additional funding, $58.8 million, for their already approved Hardest Hit Fund proposal, or submit a new plan by September 1, 2010.
Hardest Hit Funds help states like South Carolina expand options for homeowners struggling to make their mortgage payments because of unemployment. States estimate that approximately 50,000 struggling homeowners will receive aid.
This announcement is a major step toward making these funds available to struggling homeowners. The South Carolina State Housing Finance and Development Authority anticipates that they will begin accepting applications both online and by telephone by early October. For more information please visit: http://www.scmortgagehelp.com/ or http://www.sha.state.sc.us/.
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