MaineHousing Homeowner Assistance Fund Term Sheet Page 1 of 5

MaineHousing Homeowner Assistance Fund Term Sheet

Program 

Overview

The Maine Homeowner Assistance Fund (“MaineHAF”) means a fund established using

monies providedby the U.S. Department of Treasury under Section 3206 of the 

American Rescue Plan Act of 2021 (“ARP”). MaineHAF’s purpose is to mitigate financial 

hardships associated with the coronavirus pandemic by providing funds to creditors on 

behalf of Maine homeowners to prevent or cure mortgage delinquencies, defaults, 

foreclosures, loss of utilities or home energy services, or displacement of homeowners 

experiencing financial hardship after January 21, 2020.

The Homeowner Assistance Fund Program (“Program”) is administered by Maine State 

Housing Authority (“MaineHousing”) in collaboration with Partner Agencies who deliver 

the Program in their respective service areas across the state. Partner Agencies must 

deliver the services of the Program in accordance with the Program, the Policy Guide 

(“Guide”), the provisions of a fully executed service contract and subsequent 

amendments, and other guidance as provided by MaineHousing or the U.S. Treasury.

Brief 

Description

The Program is a free federal relief program for homeowners financially impacted by 

COVID-19 who are behind on their mortgage, property taxes, utility payments or other 

allowable housing related costs and are at risk of or experiencing default, foreclosure or 

service shut-off. The Program can provide up to a maximum of $50,000 in total 

assistance per eligible household.

As described in more detail below, qualified expenses fall into the following categories:

• Mortgage assistance;

• Payment assistance for utilities; and

• Payment assistance for other housing-related expenses.

Maximum 

Amount of 

Assistance per 

Household

Each household will be eligible for up to $50,000 through this Program with respect to 

the homeowner’s primary residence.

Eligible 

Homeowners

Eligible Homeowners must meet the following criteria:

• Must be natural persons that hold title to an Eligible Property (e.g., deceased 

individuals, LLP, LP, or LLC do not qualify);

• Must occupy the Eligible Property as their primary residence;

• Must meet the Homeowner Income Eligibility Requirements;

• Must attest to a Qualified Financial Hardship experienced after January 21, 2020 

associated with the COVID-19 pandemic and provided supporting 

documentation upon request;

• Must have a Qualifying Mortgage or Other Housing-Related Costs;

• Co-owners are not permitted to separately apply for Program assistance.
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Eligible Property Eligible Property must be owner-occupied, or, in the case of a land contract or contract 

for deed, occupied by the documented buyer.

Eligible Property Types include:

• Single-family home; or

• Duplex; or

• Condominium; or

• Co-Op; or

• Manufactured housing; or

• Mobile Home; or 

• 1- to 4-unit properties where the homeowner is living in one of the units as 

theirprimary residence.

Ineligible Property Types include:

• Properties outside the State of Maine;

• Vacant or abandoned properties;

• Second homes;

• Non-owner occupied investment properties.

Assistance type: 

Mortgage 

Assistance

Financial assistance is available under the Program to eligible homeowners to eliminate or 

reduce past due amounts by way of the following: 

• 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;

• Three forward months of payments, when a mortgage has been reinstated;

• Mortgage payment assistance;

• Mortgage principal reduction if necessary to modify a mortgage loan to obtain an 

affordable monthly payment in conjunction with curing a deficiency.

A Qualifying Mortgage means any credit transaction:

• That is secured by a mortgage, deed of trust, or other consensual security interest 

on a principal residence of a borrower that is:

- A 1- to 4-unit dwelling, or

- A residential real property that includes a 1- to 4-unit unit dwelling; and

• The unpaid principal balance of which was, at the time of origination, not 

 more than the conforming loan limit. 

The Program will not provide assistance for payments for an open Home Equity Line of 

Credit. 

Arrears for lot rent and land installment contract payments may also be eligible.

Assistance type: 

Utilities

Financial assistance is available under the Program to eligible homeowners for the 

following: 

• Homeowner’s utilities, including electric, gas, home energy (including firewood 

and home heating oil), water, and wastewater; or

• Homeowner’s internet service, including broadband internet accessservice, as 

defined in 47 CFR 8.1(b) (or any successor regulation).
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Assistance type: 

Other HousingRelated Expenses

Financial assistance is available under the Program to eligible homeowners for the 

following: 

• Arrears on homeowner’s insurance, flood insurance, and mortgage insurance in 

connection with a mortgaged property;

• Arrears on homeowner’s association fees or liens, condominium association fees,

or common charges, and similar costs payable under a unit occupancy agreement 

by a resident member/shareholder in a cooperative housing development; and

• Delinquent property taxes to prevent homeowner tax foreclosures, or property 

tax lien payoff amounts to allowa homeowner to reacquire a property from a 

municipality when allowed.

• Recorded IRS Federal tax lien payoff amounts to allow a homeowner to avoid 

foreclosure.

Homeowner 

Income 

Eligibility 

Requirements

Homeowners will only be eligible if the total household income is at or below 150% Area 

Median Income (AMI) for the area where they live. This includes all household members’ 

income, not just the income of the homeowner. This does not include income for any 

Co-owners who do not occupy the property. 

Qualified 

Financial 

Hardship

Homeowners must attest to financial hardship of the household experienced after January 

21, 2020, associated with the COVID-19 pandemic:

• a reduction in income; or

• a financial hardship; 

- Examples of financial hardship may include, but are not limited to:

• Evidence household is forgoing or delaying purchase of essential 

goods in order to pay mortgage or utilities, such as food, 

prescription drugs, childcare expenses, transportation costs, or 

equipment needed for remote work or school; 

• Payments for mortgage or utilities are made by credit card, payday 

lenders, or high-cost debt products to avoid homelessness or 

housing instability.

• or a significant increase in costs.

- Examples of significant increases in costs may include, but are not limited 

to:

• Healthcare costs, including care at home for individuals with 

COVID 19;

• Childcare costs;

• Internet access and computer equipment required to work or attend 

school remotely; 

• Alternative transportation for households unable to use public 

transportation during the pandemic.

For household member hardships, the household member who experienced the hardship 

 must be residing at the property.
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Documentation 

Requirement

The following documents (if applicable) will be required for an application to be 

considered complete:

• Application;

• Documentation for identity; 

• Appropriate documentation of legal residency status; 

• Verification that the homeowner occupies the property as their legal residence; 

• Qualifying financial hardship attestation and supporting documentation from 

homeowner certifying and identifying the Qualified Financial Hardship and that 

occurred after January 21, 2020;

• Other documentation may include the following based on the assistance requested:

- Proof of reinstatement

- Proof of monthly mortgage amount

- Proof of delinquency; 

- Proof of forbearance/second mortgage/balloon payment;

- Proof of completion of loss mitigation;

- Proof of qualification for Loan Modification;

- Proof of reduction in monthly payment;

- Proof of amount owed;

- Documentation received from the utility, broadband or internet provider 

showing the overdue or due payments;

- Documentation received from the taxing municipality (including, where 

appropriate, information relating to a tax lien), or documents relating to 

insurance premiums, HOA fees or liens, condominium fees, cooperative 

maintenance or common charges;

- Recorded IRS Federal Tax lien, if applicable;

- Proof of risk of loss of the Property;

- Manufactured home loan statement;

- Manufactured home loan statement and/or lot rental agreement;

- A copy of original mortgage;

- Recorded Land Installment Contract, if applicable;

- Lot Rent Agreement, if applicable;

- Deed;

- Current property tax bill;

- Social Security Number card or unique identifier as

 shown on a legal document, suchas federal tax 

 return;

- Income documentation (including, but not limited to, W2’s, paystubs, 

previous years’ tax returns or alternative income documents as applicable).

Form of 

Assistance

Assistance will be in the form of a grant. Applicants will be required to sign a Grant 

Agreement.

Payment 

Requirements

MaineHousing will disburse Program assistance directly to the land contract or 

contract for deed holder, manufactured home lender, manufactured home park 

(whether owned individually or collectively, as in a Resident Owned Community 

(ROC)), utility company, internet provider, municipality, insurance company or 

association (“Eligible Entity”) or the homeowner’s mortgage lender/servicer. 

Funds will not be disbursed to Eligible Homeowners, or any other non-eligible 
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entity.

Eligible Homeowners may be eligible for additional Program assistance, subject to 

the Maximum Amount of Assistance per Household.

MaineHousing will disburse assistance amounts quoted by the Eligible Entity or the 

homeowner’s mortgage lender/servicer. Any overpayments in excess of one month's 

principal, interest, taxes, insurance and association dues (“PITIA”) payment to a 

homeowner’s mortgage lender/servicer must be returned to MaineHousing. Any 

overpayments in excess of arrears owed to any Eligible Entity must be returned to 

MaineHousing.

The homeowner’s mortgage lender/servicer must execute a HAF Collaboration 

Agreement and agree to communicate using the Common Data File (CDF) format.

An Eligible Entity must provide a written delinquency quote or outstanding bill stating 

arrears owed, contact information, and ACH account information.

If an Eligible Homeowner’s delinquent amount exceeds the Maximum Amount of 

Assistance per Household, MaineHousing will pay the maximum permissible amount and 

the homeowner may pay the difference, if allowed by the Eligible Entity or homeowner’s 

mortgage lender/servicer.