How to make sure you receive the next payment
While there does not appear to be a fourth test raise on the horizon, the American rescue plan includes more relief that could help millions of U.S. homeowners who struggled during the coronavirus pandemic. The package, signed by President Joe Biden in March, includes a low-profile program called the Homeowners Assistance Fund. Unlike the $ 1,400 stimulus check that was automatically sent to qualifying US taxpayers, this relief requires homeowners to apply.
The American Rescue Plan has set aside $ 10 billion for the Homeowners Assistance Fund. It is meant to help homeowners pay off their mortgage, but can also be used to pay for taxes, insurance, utilities, and other expenses that homeowners face, note Forbes. The US Treasury is currently sending the funds to the states, and the funds will be distributed through state housing agencies. The amount of aid sent to each state is based on several thresholds, including unemployment levels, foreclosures and the number of late mortgage payments.
Although aid may vary from state to state, each will receive at least $ 50 million for the program, according to a Treasury Department file. A minimum of $ 50 million has also been set aside for the District of Columbia and Puerto Rico. An amount of $ 30 million is also earmarked for Guam, American Samoa, the United States Virgin Islands and the Northern Mariana Islands. The fund also includes an âexplicit mandate to prioritize socially disadvantaged householdsâ. States have until September 30, 2025 to spend mortgage relief. Owners can contact their national housing agency to find out how they plan to distribute the aid and how homeowners can receive it.
There are also several qualifications that an owner must meet to receive assistance. You must own your own home and have a mortgage. The mortgage balance in 2012 must be less than $ 584,250. The relief adds to the federal moratorium on mortgage foreclosures, which is still in effect until the end of June.
The cost of the American Rescue Plan was $ 1.9 trillion, so the Homeowners Assistance Fund and the Stimulus Check were just two of the programs funded. The law also broadened the federal child tax credit, so families can receive up to $ 3,600 per child. Another obscure program is the State and local government budget recovery fund, WKRC reports. This fund allocates $ 350 billion to state, local, territorial and tribal governments to help them cope with rising costs during the pandemic. Each state will receive a minimum of $ 500 million, and $ 20 billion has been set aside for tribal governments and $ 4.5 billion for US territories. The fund also set aside $ 130 billion for local governments. Members of local government can click here to use the Treasury website apply.