Congresswoman Maxine Waters, Ranking Member of the House Financial Services Committee, today announced that the State of California has been awarded $213.5 million under the Hardest Hit Fund, a federal program that provides targeted aid to mortgage borrowers in order to prevent avoidable foreclosures. Through her leadership role in the House of Representatives, Congresswoman Waters led the effort to secure these funds, which were provided under the government funding bill signed into law in December 2015 and allocated today through a formula administered by the Department of the Treasury.
"I am proud to announce that homeowners at risk of foreclosure in California will soon see a fresh infusion of funds into our communities, which will be used by the state to help them stay in their homes," said Congresswoman Waters.
"For far too many families, the foreclosure crisis that began seven years ago still casts a long shadow. Too many seniors are still losing the homes they've held for a generation, and too many children are still being displaced from their schools and their communities. I am pleased that I was able to work with my colleagues in Congress to ensure that these much needed funds reach families in the state and in the 43rd District," concluded Congresswoman Waters.
Through the advocacy of Congresswoman Waters, the Hardest Hit Fund was authorized in 2010, and to date has provided $7.6 billion to 18 states and the District of Columbia. Under the program, the State of California has received a total of over $2.2 billion. In addition to the $213.5 million formula grant awarded today, California will also have the opportunity to compete for an additional $1 billion in funds, starting in March of 2016.
These funds will be used for a variety of foreclosure prevention activities in the coming years. The Hardest Hit Fund program in California, known as Keep Your Home California, administers programs including: aid for unemployed borrowers; assistance to help homeowners catch-up on late mortgage payments; loan modification assistance for homeowners seeking principal reduction; and transitional assistance for homeowners pursuing short sales or deeds-in-lieu of foreclosure. Homeowners seeking assistance under the Keep Your Home California initiative can contact the state Housing Finance Agency at keepyourhomecalifornia.org or 888-954-KEEP.