California Mortgage Relief

Introduction | Stakeholder Feedback | Homeowner Assistance Fund information

California is expected to receive $1.055 billion through the American Rescue Plan Act's Homeowner Assistance Fund, which is being administered by the United States Treasury. The California Housing Finance Agency (CalHFA) will administer these funds as mortgage relief on behalf of the State of California.

If you need immediate assistance, please reach out to your mortgage servicer, contact a HUD-certified housing counselor at 1-800-569-4287 or visit the State's Housing Is Key ( website to find information on the resources currently offered. If you don't know the name of your mortgage servicer, check your monthly mortgage statement.

The Housing is Key website will be updated when mortgage relief funding is available. You can also watch CalHFA's social media accounts and sign up for Enews Announcements (select list #14. California Mortgage Relief.)

Stakeholder Feedback

In order for CalHFA to design and submit a Mortgage Relief Program plan to U.S. Treasury, the Agency solicited feedback through a survey, a dedicated email address ( and through stakeholder listening sessions.

Date Archived Listening Sessions
Tuesday, June 15, 2021 Click here to view session No. 1
Tuesday, June 15, 2021 Click here to view session No. 2
Thursday, June 17, 2021 Click here to view session No. 3*

*This session will have a Native American Tribes and Indian Country focus

Homeowner Assistance Fund information

The Homeowner Assistance Fund (HAF) was established to mitigate financial hardships associated with the coronavirus pandemic by providing funds to eligible entities for the purpose of preventing homeowner mortgage delinquencies, defaults, foreclosures, loss of utilities or home energy services, and displacements of homeowners experiencing financial hardship after January 21, 2020, through qualified expenses related to mortgages and housing.

The U.S. Treasury guidance was issued to the entities, like CalHFA, that will be administering the Mortgage Relief fund. The following is a selection of the key elements of that guidance:

Eligible Homeowners

Homeowners are eligible to receive amounts allocated to a HAF participant under the HAF if they experienced a financial hardship after January 21, 2020 and have incomes equal to or less than 150% of the area median income. A HAF participant may provide HAF funds only to a homeowner with respect to qualified expenses related to the dwelling that is such homeowner's primary residence.

HAF participants must require homeowners to attest that they experienced financial hardship after January 21, 2020. The attestation must describe the nature of the financial hardship (for example, job loss, reduction in income, or increased costs due to healthcare or the need to care for a family member).


Not less than 60% of amounts made available to each HAF participant must be used for qualified expenses that assist homeowners having incomes equal to or less than 100% of the area median income or equal to or less than 100% of the median income for the United States, whichever is greater. Any amount not made available to homeowners that meet this income-targeting requirement must be prioritized for assistance to socially disadvantaged individuals, with funds remaining after such prioritization being made available for other eligible homeowners.

Socially disadvantaged individuals are those who have been subjected to racial or ethnic prejudice or cultural bias because of their identity as a member of a group without regard to their individual qualities. The social disadvantage must stem from circumstances beyond their control. There is a rebuttable presumption that the following individuals are socially disadvantaged: Black Americans, Hispanic Americans, Native Americans, and Asian Americans and Pacific Islanders. In addition, an individual may be determined to be a socially disadvantaged individual in accordance with the procedures set forth at 13 CFR 124.103(c) or (d)

Qualified Expenses

HAF participants may use funding from the HAF only for the following types of qualified expenses that are for the purpose of preventing homeowner mortgage delinquencies, homeowner mortgage defaults, homeowner mortgage foreclosures, homeowner loss of utilities or home energy services, and displacements of homeowners experiencing financial hardship:

  1. mortgage payment assistance;
  2. financial assistance to allow a homeowner to reinstate a mortgage or to pay other housing-related costs related to a period of forbearance, delinquency, or default;
  3. mortgage principal reduction, including with respect to a second mortgage provided by a nonprofit or government entity;
  4. facilitating mortgage interest rate reductions;
  5. payment assistance for:
    1. homeowner’s utilities, including electric, gas, home energy, and water;
    2. homeowner’s internet service, including broadband internet access service, as defined in 47 CFR 8.1(b) (or any successor regulation);
    3. homeowner’s insurance, flood insurance, and mortgage insurance;
    4. homeowner’s association fees or liens, condominium association fees, or common charges; and
    5. down payment assistance loans provided by nonprofit or government entities;
  6. payment assistance for delinquent property taxes to prevent homeowner tax foreclosures;
  7. measures to prevent homeowner displacement, such as home repairs to maintain the habitability of a home or assistance to enable households to receive clear title to their properties;
  8. counseling or educational efforts by housing counseling agencies approved by HUD, or legal services, targeted to households eligible to be served with funding from the HAF related to foreclosure prevention or displacement, in an aggregate amount up to 5% of the funding from the HAF received by the HAF participant;
  9. reimbursement of funds expended by a state, local government, or entity described in clause (3) or (4) of the definition above of “eligible entity” during the period beginning on January 21, 2020, and ending on the date that the first funds are disbursed by the HAF participant under the HAF, for a qualified expense (other than any qualified expense paid directly or indirectly by another federal funding source, or any qualified expenses described in clauses (6), (7), (8), or (10) of this definition); and
  10. planning, community engagement, needs assessment, and administrative expenses related to the HAF participant’s disbursement of HAF funds for qualified expenses, in an aggregate amount not to exceed 15% of the funding from the HAF received by the HAF participant.