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HOMEOWNER ASSISTANCE FUND GUIDANCE

U.S. DEPARTMENT OF THE TREASURY

June 12, 2023

INTRODUCTION

The Treasury Department is issuing this guidance regarding the Homeowner Assistance Fund 

(HAF), which was established under section 3206 of the American Rescue Plan Act of 2021 (the 

ARP). This guidance may be updated, revised, or modified at any time, and the Secretary of the 

Treasury may waive the terms of this guidance in her sole discretion to the extent permitted by 

law.1

Under the HAF, Treasury will provide financial assistance in an aggregate amount of 

approximately $9.9 billion. Treasury has separately published information regarding the 

allocation of HAF funding for eligible entities.

PURPOSE OF THE HAF

According to the ARP, the 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.

DEFINITIONS

Treasury will apply the following definitions for purposes of this guidance.

100% of the area median income for a household means two times the income limit for verylow income families, for the relevant household size, as published by the Department of Housing 

and Urban Development (HUD) in accordance with 42 U.S.C. 1437a(b)(2) for purposes of the 

HAF. When determining area median income with respect to tribal members, tribal governments 

and TDHEs may rely on the methodology authorized by HUD for the Indian Housing Block 

Grant Program as it pertains to households residing in an Indian area comprising multiple 

counties (see HUD Office of Native American Programs, Program Guidance No. 2021-01, June 

22, 2021).

100% of the median income for the United States means the median income of the United 

States, as published by HUD for purposes of the HAF.

1 Guidance for HAF was initially released on April 14, 2021. The guidance was updated on November 12, 2021 to 

provide additional guidance on the HAF plan process, updated definitions, additional guidance on qualified expenses, 

administrative revisions arising from tribal consultations, and other updates to program requirements, including to 

reflect the extension of the deadline for tribes, tribal entities, and the Department of Hawaiian Home Lands to submit a 

notice of funds request. This guidance was further updated on February 24, 2022 to provide additional guidance on the 

use of program income, eligible housing counseling services, administrative expenses, eligible uses of funds, and 

approaches for household income verification. Treasury updated this guidance again on August 8, 2022 to provide 

additional guidance on the reimbursement of certain qualified expenses, on March 7, 2023 to clarify certain 

requirements for certain tribes and tribal entities, and on June 12, 2023 to provide guidance on the use of funds for 

payment assistance or principal reduction for Property Assessed Clean Energy loans.
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150% of the area median income for a household means three times the income limit for verylow income families, for the relevant household size, as published by HUD in accordance with 

42 U.S.C. 1437a(b)(2) for purposes of the HAF. When determining area median income with 

respect to tribal members, tribal governments and TDHEs may rely on the methodology 

authorized by HUD for the Indian Housing Block Grant Program as it pertains to households 

residing in an Indian area comprising multiple counties (see HUD Office of Native American 

Programs, Program Guidance No. 2021-01, June 22, 2021).

Dwelling means any building, structure, or portion thereof that is occupied as, or designed or 

intended for occupancy as, a residence by one or more individuals.

Eligible entity means (1) a State, (2) the Department of Hawaiian Home Lands, (3) each Indian 

Tribe (or, if applicable, the tribally designated housing entity of an Indian Tribe) that was 

eligible for a grant under Title I of the Native American Housing Assistance and SelfDetermination Act of 1996 (25 U.S.C. 4111 et seq.) for fiscal year 2020, and (4) any Indian 

Tribe that opted out of receiving a grant allocation under the Native American Housing Block 

Grants program formula in fiscal year 2020.

Financial hardship means a material reduction in income or material increase in living expenses 

associated with the coronavirus pandemic that has created or increased a risk of mortgage 

delinquency, mortgage default, foreclosure, loss of utilities or home energy services, or 

displacement for a homeowner.

HAF participant means an eligible entity that receives funds from the HAF.

Mortgage means any credit transaction (1) that is secured by a mortgage, deed of trust, or other 

consensual security interest on a principal residence of a borrower that is (a) a one- to four-unit 

dwelling, or (b) a residential real property that includes a one- to four-unit dwelling; and (2) the 

unpaid principal balance of which was, at the time of origination, not more than the conforming 

loan limit. For purposes of this definition, the conforming loan limit means the applicable 

limitation governing the maximum original principal obligation of a mortgage secured by a 

single-family residence, a mortgage secured by a two-family residence, a mortgage secured by a 

three-family residence, or a mortgage secured by a four-family residence, as determined and 

adjusted annually under section 302(b)(2) of the Federal National Mortgage Association Charter 

Act (12 U.S.C. 1717(b)(2)) and section 305(a)(2) of the Federal Home Loan Mortgage 

Corporation Act (12 U.S.C. 1454(a)(2)). A reverse mortgage, a loan secured by a manufactured 

home, or a contract for deed (also known as a land contract) may fall within this definition if it 

satisfies the criteria in this paragraph, in accordance with applicable state law.

Socially disadvantaged individuals are those whose ability to purchase or own a home has been 

impaired due to diminished access to credit on reasonable terms as compared to others in 

comparable economic circumstances, based on disparities in homeownership rates in the HAF 

participant’s jurisdiction as documented by the U.S. Census. The impairment must stem from 

circumstances beyond their control. Indicators of impairment under this definition may include

being a (1) member of a group that has been subjected to racial or ethnic prejudice or cultural bias 

within American society, (2) resident of a majority-minority Census tract; (3) individual with

limited English proficiency; (4) resident of a U.S. territory, Indian reservation, or Hawaiian Home
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Land, or (5) individual who lives in a persistent-poverty county, meaning any county that has had 

20% or more of its population living in poverty over the past 30 years as measured by the three 

most recent decennial censuses. In addition, an individual may be determined to be a socially 

disadvantaged individual in accordance with a process developed by a HAF participant for

determining whether a homeowner is a socially disadvantaged individual in accordance with 

applicable law, which may reasonably rely on self-attestations.

State means any state of the United States, the District of Columbia, the Commonwealth of 

Puerto Rico, Guam, American Samoa, the United States Virgin Islands, and the Commonwealth 

of the Northern Mariana Islands.

NOTICE OF REQUEST TO RECEIVE HAF PAYMENTS

The ARP requires eligible entities to notify Treasury of their request to receive payment from the 

HAF. Treasury published a notice of funds request form, available at 

https://home.treasury.gov/policy-issues/coronavirus/assistance-for-state-local-and-tribalgovernments/homeowner-assistance-fund, which must be completed, signed by an authorized 

official of the eligible entity, and returned to Treasury.

If any State (including the District of Columbia, the Commonwealth of Puerto Rico, Guam, 

American Samoa, the United States Virgin Islands, and the Commonwealth of the Northern 

Mariana Islands) did not submit a notice of funds request by April 25, 2021, the State would not 

have been eligible for a payment from the HAF, and Treasury would have been required to 

reallocate the funding that was previously allocated to that State among those States that did 

request funding by the statutory deadline. All States submitted a notice of funds request to 

Treasury by the deadline and, as such, no reallocations occurred.

The deadline for an Indian Tribe, tribal entity, or the Department of Hawaiian Home Lands to 

submit a notice of funds request is December 15, 2021.

FINANCIAL ASSISTANCE AGREEMENT

Each eligible entity approved to receive payment from the HAF must enter into a financial 

assistance agreement with Treasury. A form of the financial assistance agreement is available at 

https://home.treasury.gov/policy-issues/coronavirus/assistance-for-state-local-and-tribalgovernments/homeowner-assistance-fund.

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;
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5. payment assistance for:

a. homeowner’s utilities, including electric, gas, home energy (including firewood 

and home heating oil), water, and wastewater;

b. homeowner’s internet service, including broadband internet access service, as 

defined in 47 CFR 8.1(b) (or any successor regulation);2

c. homeowner’s insurance, flood insurance, and mortgage insurance;

d. 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

e. 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, including the reasonable addition of habitable space to alleviate 

overcrowding, 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 a 

tribal government (including such efforts by in-house housing counselors who are HUDcertified or Tribally approved), 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);

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; 

11. payment of lot rent for a manufactured home, where such payment would promote 

housing stability and prevent the default of the resident of the manufactured home; 

12. 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 

the date the participant received its initial HAF payment and ending on the date the 

participant received the balance of funds requested in the participant’s HAF plan for a 

qualified expense consistent with the participant’s approved HAF Plan (other than any 

qualified expense paid directly or indirectly by another federal funding source); and

2 As of the date of this guidance, the definition of “broadband internet access service” in 47 CFR 8.1(b) is “a massmarket retail service by wire or radio that provides the capability to transmit data to and receive data from all or 

substantially all internet endpoints, including any capabilities that are incidental to and enable the operation of the 

communications service, but excluding dial-up internet access service. This term also encompasses any service that the

[Federal Communications] Commission finds to be providing a functional equivalent of the service described in the 

previous sentence or that is used to evade the protections set forth in this part.”
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13. payment assistance or principal reduction for Property Assessed Clean Energy (PACE) 

loans, where such expenditures would promote housing stability and prevent foreclosures 

or homeowner displacement.

If a contractor both plays an administrative role and provides housing counseling or other 

services, a grantee must allocate costs based on each such activity.

Arrearages of qualified expenses are eligible for purposes of HAF regardless of the date they 

were incurred, including if they arose before January 2020. Funding from the HAF may not be 

used for any use other than those provided for in this section. HAF participants may use program 

income earned during the period of performance as a result of implementing the objectives of the 

HAF award for eligible purposes outlined in this guidance. “Program income” is defined in 2

C.F.R. § 200.1 as gross income earned by a non-federal entity that is generated directly by a 

supported activity or earned as a result of the federal award during the period of performance except 

as provided by 2 C.F.R. § 200.307(f). Program income includes income from fees for services 

performed, the use or rental of real or personal property acquired under federal awards, and 

principal and interest on loans made with federal award funds. To the extent that HAF 

participants use HAF funds to supplement other loss-mitigation efforts, Treasury encourages 

participants to avoid using HAF funds in a manner that replaces other loss-mitigation resources 

that would otherwise be available. The HAF Plan (described below) will enable HAF 

participants to indicate whether they are requesting reimbursements under clause (9) above.

ELIGIBLE HOMEOWNERS

Homeowners3are eligible to receive amounts allocated to a HAF participant under the HAF if 

they experienced a financial hardship after January 21, 2020 (including a hardship that began 

before January 21, 2020, but continued after that date) and have incomes equal to or less than 

150% of the area median income or 100% of the median income for the United States, whichever 

is greater. 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).

The HAF does not preclude Tribes or TDHEs from providing assistance to members, or 

individuals otherwise eligible for HAF, who reside outside the tribal government’s geographic 

jurisdiction. Tribal authorities should confirm that any such assistance can be provided 

consistently with the Tribe’s constitution and governing law.

Income Determinations. With respect to each household applying for assistance, HAF 

participants may use HUD’s definition of “annual income” in 24 CFR 5.609 or use adjusted 

gross income as defined for purposes of reporting on Internal Revenue Service (IRS) Form 1040 

series for individual federal annual income tax purposes.

3 A HAF participant may determine an individual to be a “homeowner” if the individual holds a vested legal or 

equitable ownership interest in the relevant dwelling, in accordance with applicable state law.
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HAF participants must have a reasonable basis under the circumstances for determining income 

for purposes of the requirements described above under “Eligible Homeowners.” Two 

approaches for income verification are permissible: (1) the household may provide a written 

attestation as to household income together with supporting documentation such as paystubs, 

W2s or other wage statements, IRS Form 1099s, tax filings, depository institution statements 

demonstrating regular income, or an attestation from an employer; or (2) the household may 

provide a written attestation as to household income and the HAF participant may use a 

reasonable fact-specific proxy for household income, such as reliance on data regarding average 

incomes in the household’s geographic area. Grantees may make reasonable determinations as to 

what constitutes a household for the purposes of the required household income determination.

HAF participants may provide waivers or exceptions to this documentation requirement as 

reasonably necessary to accommodate extenuating circumstances, such as disabilities, practical 

challenges related to the pandemic, or a lack of technological access by homeowners; in these 

cases, the HAF participant is still responsible for making the required determination regarding 

household income and documenting that determination.

If a HAF participant chooses to require households to provide supporting documentation for 

purposes of income determination, Treasury encourages HAF participants to avoid establishing 

documentation requirements that are likely to be barriers to participation for eligible households, 

including those with irregular incomes such as from a small business. Treasury also encourages 

grantees to exclude public benefits, such as Supplemental Nutrition Assistance Program benefits, 

from the calculation of income.

Treasury discourages HAF participants from imposing additional eligibility criteria such as 

foreclosure status, credit score, bankruptcy status, the existence of liens on the property, or 

previous cash-out refinances. HAF participants that wish to include additional eligibility criteria 

beyond those described in this guidance and other program documentation issued by Treasury 

must explain with specificity how those criteria would further the objectives of the HAF, 

including how they would help the program reach eligible homeowners.

TARGETING

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.

INITIAL PAYMENTS

Treasury made initial payments from the HAF available to eligible entities that are approved to 

participate in the HAF in an amount equal to 10% of the total amount allocated to the eligible 

entity. In order to receive this initial payment, the eligible entity was required to (1) enter into the 

financial assistance agreement with Treasury described above and (2) commit to use the funds 

only for qualified expenses (other than those under clause (9) of the “Qualified Expenses” section 

above). Treasury made these payments to the eligible entity or agency of the eligible entity 
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identified on the eligible entity’s notice of funds request. No more than 50% of the initial payment 

was permitted to be used for planning, community engagement, needs assessment, and 

administrative expenses described in clause (10) of the “Qualified Expenses” section above. Any 

eligible entity that elected not to receive this initial payment would receive its allocated funds 

after Treasury approves its HAF plan, as described below.

Treasury encouraged HAF participants to use these initial payments to create or fund pilot 

programs to serve targeted populations, and to focus on programs that are most likely to deliver 

resources most quickly to targeted populations, such as mortgage reinstatement programs.

HAF PLAN

To receive the remainder of its allocation, an eligible entity must develop and submit a plan for 

its use of HAF funding. These HAF plans will describe in detail the needs of homeowners within 

the relevant jurisdiction, the design of each program the eligible entity proposes to implement 

using HAF funds, performance goals, and information regarding the eligible entity’s readiness to 

implement the programs. In developing HAF plans, Treasury expects that eligible entities will 

follow their state open meeting or “sunshine” laws (with associated public hearings conducted in 

a manner appropriate for local public health conditions), and Treasury encourages eligible 

entities to post draft HAF plans for public comment and hold public hearings. HAF participants 

will receive their remaining funds under the HAF only after Treasury approves a HAF plan.

Treasury has provided eligible entities with a template for the HAF plan, which includes the 

following elements.

HAF PLAN SUBMISSION

Treasury will open a portal online for HAF participants to enter and submit their HAF plan. 

Treasury is extending the deadline for each State to submit a completed HAF plan or provide 

Treasury with an estimated date by which a HAF plan will be submitted to 14 days after the 

portal becomes accessible.

A HAF participant may elect to submit a single, comprehensive HAF plan that describes the 

intended uses for the participant’s entire HAF allocation, or multiple, partial HAF plans that each 

describe only a portion of the intended uses for the participant’s allocation. Submission of partial 

HAF plans may allow HAF participants to proceed more quickly to implement portions of their 

plan while conducting planning and community engagement for other aspects. Treasury will 

promptly begin reviewing HAF plans that are submitted before the deadline.

HAF PLAN COMPONENTS

The HAF plan template provided by Treasury includes sample language and term sheet 

templates that HAF participants may use to develop their plans. Treasury encourages HAF 

participants to use these examples and templates to promote consistency across programs, 

minimize operational complexity, and promote a common understanding of eligibility criteria. If 

deviating from these examples and templates, HAF participants should specifically explain how 

their approach would further the objectives of the HAF, including the targeting and prioritization 

requirements.

HAF plans will address the following issues.
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• Homeowner Needs and Engagement:

o Data-Driven Assessment of Homeowner Needs: HAF participants must provide 

information and data that they use to design their programs in a way that 

effectively targets eligible homeowners. HAF participants must include data about 

financial hardships of target homeowners and socially disadvantaged individuals, 

including data on mortgage delinquencies, defaults, foreclosures, post-foreclosure 

evictions, and the loss of utilities or home energy services, including trends over 

time disaggregated by demographic categories and geographic areas.

o Evidence of Public Participation and Community Engagement: HAF participants 

should seek input from organizations and individuals representing eligible 

homeowners regarding the data-driven assessment of homeowner needs. HAF 

plans must describe the extent to which their information on homeowner needs 

reflects their engagement with organizations and individuals representing eligible 

homeowners, and how the HAF participant will allow for public participation in 

the development of the HAF plan, including any public hearings.

• Program Design:

o Program Descriptions: HAF participants must describe each program for which 

they will use HAF funding. The description must describe the targeted population 

of homeowners and the financial challenges the program would address based on 

the data-driven assessment of homeowner needs (e.g., the immediate challenge of 

mortgage delinquency, or displacement prevention). Each program description 

must include a description of eligibility requirements; the intended impact on 

eligible homeowners; the application process; conditions or limitations, including 

the maximum dollar amount that the program will provide to each homeowner for 

each type of qualified expense; a description of the payment process; and other 

available sources of assistance for targeted homeowners. HAF participants must 

have one or more programs intended to reduce mortgage delinquency among 

targeted populations.4 Treasury encourages HAF participants to consider 

homeownership preservation programs for low-income households in areas where 

property taxes and utility costs are increasing, including for households that do 

not have mortgages. Treasury also encourages HAF participants to consider 

program designs that leverage utility assistance from other federal programs that 

have been created expressly for that purpose before using HAF funds for utility 

assistance.

o Equity and Accessibility: HAF participants should design programs to be as 

accessible as possible to homeowners in different circumstances, including by 

offering multiple intake formats, engaging with nonprofit organizations to provide 

additional pathways into the program, and providing culturally and linguistically 

4 Tribes and tribal entities are exempt from the requirement to provide one or more programs intended to reduce 

mortgage delinquency when the tribe or tribal entity’s circumstances indicate such requirement would not best serve 

the homeowners in its community. Such circumstances may include the scarcity of mortgages eligible for assistance in 

the relevant community; a sufficiently small total HAF allocation such that provision of mortgage assistance is 

impractical; or evidence that housing needs other than those met by mortgage-delinquency assistance are more pressing 

in the community and qualified expenses related to such needs will exhaust substantially all of the tribe or tribal 

entity’s total HAF allocation.
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relevant outreach.

o Methods for Targeting HAF Funding: The HAF plan must describe how the HAF 

participant will effectively target HAF resources to (1) 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; and

(2) socially disadvantaged individuals. The HAF participant must describe its 

targeting strategies according to disaggregated characteristics of the targeted 

population such as income ranges, racial and ethnic demographics, and/or 

geographic areas (including rural communities), as appropriate for the relevant 

jurisdiction. Targeting methods may include marketing, community engagement 

strategies, partnerships with housing counseling agencies or legal aid 

organizations, or other educational services that are aligned with the HAF 

participant’s program design, in a manner that is culturally and linguistically 

relevant to the targeted communities.

Treasury encourages HAF participants to prioritize assistance to homeowners

who have Federal Housing Administration (FHA), Department of Veterans 

Affairs (VA), or U.S. Department of Agriculture (USDA) mortgages and 

homeowners who have mortgages made with the proceeds of mortgage revenue 

bonds or other mortgage programs that target low- and moderate-income 

borrowers. In addition, homeowners with private mortgages may be at greater risk 

of foreclosure due to limited options for loss mitigation, so the HAF plan must 

describe how the HAF participant will determine and address these needs.

o Best Practices and Coordination with Other HAF participants: The HAF 

participant must describe the extent to which its program descriptions or models 

are based on best practices and/or the participant’s effective implementation of a 

previous program, including those funded with the initial payment under HAF. 

The HAF participant should describe its efforts to coordinate with other HAF 

participants, or plan for coordination, including with respect to engagement with 

mortgage servicers that operate in multiple states or with recipients of other large 

federal grants or financial assistance funds. Treasury encourages HAF participants 

to develop and participate in information-sharing with servicers through a 

Common Data File format. Further, HAF participants should describe any

relevant coordination with federal agencies including FHA, VA, and USDA, as 

well as with state or local agencies that hold mortgage portfolios that have 

covenants or targeting requirements that match the HAF participants’ HAF 

targeting strategies and goals.

• Performance Goals:

o Each HAF participant must establish goals and benchmarks, by program and by 

targeted population, for assistance using HAF funds. The performance goals must 

identify how they address homeowner needs identified by the HAF participant in 

its plan. Performance goals must be disaggregated by key characteristics such as 

mortgage type, racial and ethnic demographics, and/or geographic areas 

(including rural communities), as appropriate for the jurisdiction. Each HAF 
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participant must include a goal focused on reducing mortgage delinquency among 

targeted populations.

• Readiness:

o Staffing and Systems: The HAF participant must describe the staffing and systems 

in place or planned to ensure effective program delivery, compliance, and 

reporting, in a manner consistent with applicable program requirements and 

guidance using the programs described in the plan.

o Contracts and Partnerships: The HAF participant must describe the contractors, 

partners, and other organizations that are critical to the HAF participant’s program 

delivery, compliance, and reporting.

o Existing and Pilot Programs: The HAF participant must describe in detail how it 

used its initial 10% payment, if applicable (as described above under “Initial 

Payments”).

• Budget:

o The HAF participant must provide a budget, by qualified expense category, using 

a template that Treasury will provide.

In lieu of the detailed HAF plans described above, Treasury has provided a streamlined template 

to be submitted by any HAF participant that is allocated less than $5 million of HAF funds.

Other HAF participants must submit a more detailed HAF plan as described above.

HAF PLAN ASSESSMENTS AND APPROVALS

Treasury will assess HAF plans based on the following factors:

• Alignment of Community Needs and Program Design: The extent to which programs 

are responsive to community needs and based on a best practice model or evidence of the 

HAF participant’s effective implementation of a previous program or pilot program.

• Alignment of Performance Goals with Data on Targeted Populations: The extent to 

which the performance goals would address the needs of specific eligible populations 

within targeted communities, in a manner that is appropriate to the jurisdiction.

• Methods of Targeting: The extent to which the HAF participant describes targeting 

methods reasonably likely to result in HAF assistance being made available to eligible 

homeowners consistent with the targeting requirements described in the ARP and in 

applicable guidance issued by Treasury. Recognizing that homeowners earning up to 

100% of the area median income are overrepresented in portfolios of government-backed 

and guaranteed mortgages compared to the market as a whole, Treasury will favorably 

consider the prioritization of assistance to homeowners who have FHA, VA, or USDA 

mortgages, and to homeowners who have mortgages made with the proceeds of mortgage 

revenue bonds or other mortgage programs that target low- and moderate-income 

borrowers, when assessing a HAF participant’s proposed methods of targeting HAF 

funds.

• Readiness: The extent to which the HAF participant demonstrates readiness to 

implement a program at scale, including having in place policies and procedures for the 

program and an appropriate mix of staffing, contractors, and partners. Implementation of 

a pilot program or pre-existing program that successfully targeted resources to the 
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targeted populations will be a strong indication of readiness.

• Alignment of Budget with Performance Goals: The extent to which the funding 

budgeted by program reasonably supports the achievement of the performance goals.

Treasury may approve a HAF plan in whole or in part. If Treasury approves a HAF plan only in 

part, the HAF participant will be provided an opportunity to address the weaknesses identified by 

Treasury. Treasury may also return a HAF plan to the HAF participant with recommendations

for improvement and resubmission to Treasury for reconsideration. In addition, to enable HAF 

participants to rapidly receive approval for certain HAF-funded programs that can be developed 

quickly, a HAF participant may elect to submit multiple HAF plans over time regarding different 

programs it proposes to implement. After Treasury approves a HAF plan in whole or in part, 

Treasury will inform the HAF participant of the schedule for disbursements to the participant for 

purposes of the approved portions of the plan.

In the event that the information required in the HAF plan is not available to a Tribe, Treasury 

will accept alternative information regarding the relevant community. In addition, a HAF plan 

submitted by a Tribe whose population consists largely or entirely of socially disadvantaged 

individuals may be tailored to reflect the limited effort necessary to target its programs for those 

individuals.

A HAF participant must seek prior approval from Treasury to reallocate funding from a program 

as described in the approved HAF plan to be used for a different purpose if any of the following 

is true:

• the aggregate reallocations from any qualified expense category equals or exceeds 10% 

of the amount allocated to that qualified expense category in the HAF plan approved by 

Treasury;

• the HAF participant is proposing to allocate funding to a new qualified expense category 

or is creating a new program or terminating a previously approved program; or

• the reallocation redirects 1% or more of the participant’s total HAF allocation from 

program costs to administrative costs.

REPORTING AND MONITORING

HAF participants will be required to submit quarterly reports to Treasury that include financial 

data, targeting data, and other information. Treasury will release additional guidance regarding 

HAF reporting. HAF participants will be subject to the reporting requirements under 2 C.F.R. 

Part 200, other than such provisions as Treasury may determine are inapplicable to the HAF.

HAF participants will also be required to submit an annual program report to Treasury regarding 

the impact of the HAF program.

SANCTIONS

In the event of a HAF participant’s noncompliance with applicable law or HAF program 

requirements or guidance, Treasury may impose additional conditions on the receipt of 

additional HAF funds by the HAF participant, terminate further payments from the HAF, seek 

the repayment of previous HAF payments, or take other available remedies.