CALIFORNIA MORTGAGE 

RELIEF PROGRAM

Homeowner Assistance Fund

CALIFORNIA MORTGAGE RELIEF 

PROGRAM TERM SHEET
Homeowner Assistance Fund Plan 

California Mortgage Relief Program

Homeowner Assistance Fund Plan | California Mortgage Relief Program 1

The U.S. Treasury issued initial guidance for the use of the Homeowners Assistance Fund “HAF" funds on April 14, 

2021. As an eligible entity approved to participate in HAF, the California Housing Finance Agency “CalHFA” 

entered into a Financial Assistance Agreement with U.S. Treasury and received 10% of California’s total 

allocation on June 22, 2021. In August 2021, CalHFA launched a pilot phase of the Program using funds from that 

initial allocation of California’s HAF funds. Upon Treasury approval on December 17, 2021, CalHFA fully 

launched the Program to serve as many vulnerable homeowners as possible using approximately $750 million.

Mortgage 

Reinstatement 

Program Goal • To address current housing instability and alleviate long-term economic impacts by 

providing Eligible Homeowners with financial assistance to eliminate past due housing 

payments, and certain Partial Claim Liens or Deferrals established due to COVID-19 

related delinquencies.

Size of 

Mortgage 

Reinstatement

Program • California’s allocation of HAF funds is approximately $1 billion. • CalHFA has allocated $750 million to provide full reinstatement of mortgage and reverse 

mortgage payments owed, and assistance to eliminate certain Partial Claim Liens or 

Deferrals. Amendments to this program may be made, based on the constant monitoring 

and reporting of results against goals.

Targeting and 

Outreach • CalHFA is affirmatively targeting socially disadvantaged and vulnerable homeowners using 

a data-driven approach that uses a combination of Qualified Census Tract data (HUD) 

and Owner Vulnerability Index (UCLA). This includes data-driven targeted marketing and 

community engagement along with engaging housing counselors, as well as using levers in 

the program design to ensure that outcomes effectively prioritize socially disadvantaged 

individuals.
Homeowner Assistance Fund Plan 

California Mortgage Relief Program

Homeowner Assistance Fund Plan | California Mortgage Relief Program 2

Eligible Homeowners • Homeowner must currently own and occupy one of the Eligible Property Types in 

California as their primary residence. • Homeowner must meet the Homeowner Income Eligibility Requirements. • Homeowner must not own and occupy more than one property (up to 4 units) • Homeowner must attest that they experienced a financial hardship after 

January 21, 2020. The attestation must describe the nature of the financial hardship. • The original, unpaid principal balance of the homeowner’s first mortgage loan, at the 

time of loan origination, was not greater than the conforming loan limit in effect at 

time of origination. • Homeowners with HECM reverse mortgages can receive assistance. • Homeowners who have accepted certain Partial Claim Liens or Deferrals after 

January 2020 as part of a loss mitigation workout can receive assistance. • Co-owners are not permitted to separately apply for the Program assistance. • Households where the mortgage holder(s) or anyone else that lives at the property 

has received or been approved to receive Emergency Rental Assistance Program 

funds for this property either from the state or a local government, are not eligible 

for assistance. • Households are eligible if they have received any other form of governmental 

assistance, including other forms of COVID-19 assistance from the CARES Act, 

Consolidated Appropriations Act of 2021 or the American Rescue Plan Act.

Eligible Legal

Ownership Structures • Those where the home is owned by a “natural person” (i.e., LLP, LP or LLC do not 

qualify) • Those where the homeowner has transferred their ownership interest into a Living 

Trust, provided the homeowner remains a beneficiary of such trust and occupies the 

home as their primary/principal residence.

Qualified Financial

Hardship • A “Qualified Financial Hardship” is a material reduction in income or material 

increase in living expenses associated with the coronavirus pandemic that created or 

increased a risk of mortgage delinquency, mortgage default, foreclosure, or 

displacement for a homeowner.

» Reduction of Income – Temporary or permanent loss of household earned income 

after January 21, 2020.

» Increase in Living Expenses – Increase in out-of-pocket household expenses 

such as, medical expenses, inadequate medical insurance, increase in household 

size, or costs to reconnect utility services directly related to the coronavirus 

pandemic after January 21, 2020. • Homeowner must complete and sign the Affidavit which includes an attestation of 

Qualified Financial Hardship.

Homeowner

Income Eligibility 

Requirements • To be eligible for assistance, all household members (over 18 years of age) must 

have a combined total income equal to or less than 150% of the Area Median 

Income adjusted by household size (AMI) based on HUD Homeowner Assistance 

Fund income limits. • Homeowners cannot have cash on hand, or assets that can be rapidly converted to 

cash, that is equal to or greater than the relief funds needed + $20,000. (This 

program defines cash/assets as cash or assets that can be converted into cash in a 

short amount of time, including things like money market instruments and marketable 

securities. This excludes savings in a tax-advantaged retirement account).
Homeowner Assistance Fund Plan 

California Mortgage Relief Program

Homeowner Assistance Fund Plan | California Mortgage Relief Program 3

Homeowner 

Prioritization • 60% of California’s total allocated funds will be reserved for those making at or below 100% 

of their AMI. • CalHFA will prioritize funding to socially disadvantaged homeowners defined as Californians 

that live in Qualified Census Tracts (HUD) or areas with “high” and “highest” vulnerability 

values on the Owner Vulnerability Index (OVI), developed by the UCLA Center for 

Neighborhood Knowledge.

» 40% of California’s total allocated funds will be reserved for the previously defined socially 

disadvantaged homeowners 

Eligible 

Property Types

“Eligible Property Types” are:

» Single-family (attached or detached) properties 

» Condominium units 

» 1-4 unit owner-occupied 

» Manufactured homes permanently affixed to real property and taxed as real estate

“Ineligible Property Types” are:

» Vacant or abandoned 

» Second homes 

» Investment property

Eligible Uses of Mortgage

Reinstatement Program 

Proceeds • Existing first mortgage lien loan payment (principal, interest, taxes and insurance), plus any

escrow shortages to fully reinstatement the mortgage to a “current” status. 

» Must be at least two payments past due at time of submission of application for program 

assistance 

» Delinquency must occur prior to Dec. 1, 2022. • Payment of owed taxes and any force placed insurance on HECM reverse mortgage loans to 

fully reinstate to a “current” status. • Eliminating or reducing certain Partial Claim Liens or Deferrals, defined as: 

» COVID-19 Recovery Partial Claims that were established after January 2020 

» Payment Deferrals that were placed by a servicer approved by the program after January 

2020 

Exclusions:

» Any homeowner applying for assistance is ineligible if, at the time they apply for 

assistance, they have completed loss mitigation in a manner other than a Partial Claim 

Lien or Deferral (described above) that has resulted in their first mortgage loan no 

longer being delinquent. 

 However, if the borrower has been brought current and subsequently defaults 

post-loss mitigation, they are not excluded from receiving HAF funds. 

» Homeowners with private party mortgages are not eligible for Partial Claim Lien or 

Deferral reduction 

Maximum Per

Household • The maximum amount due for program eligibility is $80,000.00 at the time of application 

submission. • Households needing more than $80,000 for complete reinstatement at the time of 

application are not eligible. • Homeowners may apply for assistance with current mortgage arrearage, Property Tax 

assistance (term sheet) and/or Partial Claim Lien or Deferral payoff as long as the combined 

amount of assistance needed does not exceed $80,000 at the time of application.

» If the combined assistance needed by any applicant is above $80,000, assistance needed 
Homeowner Assistance Fund Plan 

California Mortgage Relief Program

Homeowner Assistance Fund Plan | California Mortgage Relief Program 4

for complete reimbursement of current eligible mortgage arrearage will be provided first, 

and the amount remaining to reach the $80,000 limit will be applied toward property tax 

(if needed) and lastly the Partial Claim Lien or Deferral, in that order. 

Assistance Type • Assistance will be structured as a non-recourse grant.

Payout of Mortgage 

Reinstatement • CalHFA will disburse assistance directly to mortgage servicer. • CalHFA will disburse the amount quoted by the servicer; any discrepancies to be resolved 

by the homeowner and servicer. 

Program Launch • CalHFA launched the program on December 27, 2021. 

Program Duration • The period of performance for the HAF program ends on September 30, 2026, however 

CalHFA plans to allocate all funds by September 30, 2025. 

Program Application 

Process • Applications will be accepted online through the Outreach Navigator and Intake Review 

(ONAIR) Portal. All applications will be entered into the online portal and reviewed on the 

reviewer portal. 

Required Application 

Documents 

In response to public feedback about the need for a streamlined application process, efforts 

will be made to avoid barriers to equitable access and allow for flexibility, particularly with 

regard to documentation requirements. 

Required application documents and attestations include, but may not be limited to, the 

following: • California Mortgage Relief Program application, including attestations of: 

» Qualified Financial Hardship 

» Applicant acknowledgment that loss mitigation options may be a better option to 

address their specific circumstance 

» Applicant acknowledgment that housing counselors will see applicants for free to 

explain these options, to complete their application 

» Other related attestations • Third Party Authorization (TPA) and Disclosure • Mortgage Statement • Valid California identification and Social Security Number 

All household members 18 and over must provide income documents such as: • Most recent income documentation: W2’s, paystubs, previous years’ tax returns or 

alternative income documents as applicable such as proof of an Income Proxy such as 

Unemployment, Medi-Cal, WIC, SNAP, FDPIR, TANF, SNP, Section 8 and any other 

income-based county, municipality, state and/or federal assistance program. • Individual’s bank statements for all accounts for the two months prior to the date of the 

application submission. • Profit and Loss Statements for all self-employed individuals including most recent two 

months’ business bank statements. 
Homeowner Assistance Fund Plan 

California Mortgage Relief Program

Homeowner Assistance Fund Plan | California Mortgage Relief Program 5

Required Application 

Documents (continued) 

Additional Documentation Requirements in Certain Cases

In certain cases, CalHFA will require additional documentation to ensure that 

assistance is focused on Californians most in need and is delivered efficiently 

1. Homeowners in active bankruptcy will need to provide written substantiation from both 

their loan servicer and the Bankruptcy Trustee that the homeowner(s) may receive 

mortgage assistance funds and said funds shall be applied to any first lien loan arrearage on 

their primary residence. 

» This additional documentation requirement allows CalHFA a more efficient path to 

reinstatement for those homeowners by ensuring that the mortgage servicer and 

bankruptcy trustee will accept the assistance funds 

2. Homeowners with HECM reverse mortgages who owe payment to their servicer for taxes 

and forced place insurance, must provide copies of their tax bill and insurance bill showing 

the amount due. 

3. Homeowner claiming an upcoming sale date through a Notice of Sale document must 

provide a copy of that document. 

4. Homeowners requesting assistance for Partial Claim Lien or Deferral reduction must 

provide a copy of the note and a mortgage statement reflecting the amount 

5.Documentation that satisfies an ownership interest in the property (e.g. inter-spousal 

transfer deed, a quit claim deed, or grant deed when homeowners divorce or dissolve their 

marriage). 

Program Partners 

Requirements • Servicers will be required to execute a HAF Partner agreement and agree to communicate 

using the Common Data File (CDF) format to be provided by U.S. Treasury. • If and as required, partners will be asked to sign a W9.