OCTOBER 18, 2021

PENNSYLVANIA

H O M E O W N E R 

A S S I S T A N C E 

FUND

PROGRAM PLAN
1

PA Homeowner Assistance Fund Plan

Chapter 1. General.

§1.1. Overview.

Under section 3206 of the American Rescue Plan Act of 2021 (Pub L. No. 117-2) up to $9.961 

billion was provided for states, the District of Columbia, U.S. territories, Tribes or Tribal entities, 

and the Department of Hawaiian Home Lands to provide relief for our country’s most vulnerable 

homeowners. On April 14, 2021, Treasury released "Homeowner Assistance Fund Guidance" 

(HAF Guidance) which outlined policy guidelines for states' HAF programs. This included a 

description of qualified expenses, eligibility criteria, and protocols for HAF Plan submission to 

Treasury for approval.

The statute required the Department of the Treasury to make allocations for each state, the District 

of Columbia, and Puerto Rico based on homeowner need, determined by reference to (1) the 

average number of unemployed individuals; and (2) the number of mortgagors with mortgage 

payments that are more than 30 days past due or mortgages in foreclosure.1

Based on the identified methodology PA was allocated $350.4 million. On June 25, 2021, the PA 

General Assembly authorized Pennsylvania Housing Finance Agency (PHFA) as the administrator 

of this program. PHFA has titled this program PA Homeowner Assistance Fund (PAHAF) and 

under newly released Treasury guidance, dated August 2, 2021 has created this plan document for 

public comment and input.

§1.2 PAHAF Program Objective & Program Operating Principles.

The purpose of PAHAF is to mitigate financial hardships associated with the coronavirus 

pandemic by providing funds to eligible homeowners for the purpose of preventing homeowner 

mortgage delinquencies, defaults, foreclosures, delinquent property taxes, loss of utilities or home 

energy services, and displacements of homeowners due to financial hardships experienced after 

January 21, 2020.

§1.3. Program Operating Principles.

a) Maximize assistance to PA eligible households at the greatest risk for mortgage 

delinquency, default and foreclosure.

b) Utilize proactive outreach and marketing programs to ensure income eligible and socially 

disadvantaged homeowners are reached.

c) Ensure that the application, approval, and disbursement process is easily accessible, clear, 

and straightforward.

d) Put homeowners in the best position to succeed in the future while maximizing existing 

federal, state, and local resources to avoid duplication of services, programs and dollars.

1 Specific data and methodology for funding can be found here: https://home.treasury.gov/system/files/136/HAFstate-territory-data-and-allocations.pdf
2

Chapter 2. Key Treasury Guidance & Definitions.

§2.1 Eligible Homeowners.

Homeowners are 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 (AMI) or 100% of the median income for the United States, whichever is 

greater. PAHAF may provide HAF funds only to a homeowner with respect to qualified expenses 

related to the dwelling that is the homeowner’s primary residence.

§2.2. 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.

§2.3 Treasury Definitions 

100% of the area median income for a household — two times the income limit for very-lowincome 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. 

150% of the area median income for a household — three times the income limit for very-lowincome 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.

Mortgage — 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 singlefamily residence, a mortgage secured by a two-family residence, a mortgage secured by a threefamily residence, or a mortgage secured by a four-family residence, as determined and adjusted 

annually under §302(b)(2) of the Federal National Mortgage Association Charter Act (12 U.S.C. 

§1717(b)(2)) and §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 — 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 
3

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 

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.

Chapter 3. PAHAF Homeowner Needs Assessment.

The Commonwealth used a variety of data sets to determine the extent to which various types of 

homeowners may be at risk of default, foreclosure, or housing instability. The following 

combination of public and proprietary data were used to develop estimates of COVID-related 

homeowner needs in Pennsylvania: Home Mortgage Disclosure Act (HMDA) (12 U.S.C §§ 2801-

2811), loan-level data (2007 to 2019), U.S. Census American Community Survey (Census ACS) 

5-Year Estimates (2015-19), PHFA borrower records, Bureau of Labor Statistics’ Local Area 

Unemployment Statistics program (2020 to Q1 2021), ZIP Code-level Mortgage Analytics and 

Performance Dashboard (MAPD) data on loan performance collected and compiled by the private 

research firm Black Knight, LLC. and accessed from the Federal Reserve Bank of Atlanta (2020 

to Q1 2021)2, tax delinquency data from Allegheny County (courtesy of the Western Pennsylvania 

Regional Data Center) and the City of Philadelphia (courtesy of OpenDataPhilly), and delinquent 

utility account information from the Pennsylvania Utilities Law Project.

These data were analyzed to understand the contemporary volume of homeowners across the 

Commonwealth and how homeownership varies across different regions of the state and among 

different populations. These analyses were developed with a particular focus on estimating the 

total population of PA homeowners who could benefit from support from the HAF related to 

mortgage assistance and other housing related costs such as utilities, taxes, condominium 

association fees, etc. 

§3.1. Homeownership Landscape in Pennsylvania.

Pennsylvania is home to 3,480,978 owner-occupied households. The state is divided into six 

regions established by the PA Housing Finance Agency (see Map 1). These regions are used 

throughout this document to describe the state’s demographic, economic and housing conditions 

and how they vary geographically. 

2 Atlanta Fed calculations using Black Knight’s McDash Flash daily mortgage performance data (available with a 

two-day lag), U.S. Census Bureau 2017 FIPS Codes.
4

Map 1. PA Regions

The number of homeowners and homeownership rates vary considerably across the state’s 

different regions – from a high of 71.9% in the Northwest to a low of 65.3% in the Southeast. 

However, in every region the homeownership rates for households of color are well below those 

of white homeowners. Homeownership rates for households of color are highest in the 

Philadelphia region (Southeast) and in the Northeast (See Table 1). 

Table 1. Homeowners & Homeownership Rates by PHFA Region

Source – ACS 2015-2019

The vast majority of homeowners in PA live in single-family homes (93.5%). Of the nearly three 

and half million owner-occupied housing units, about three million (3,253,640) are one-unit 

detached or attached dwellings. Only about 90,000 units are in small and large multifamily 

buildings, and about one hundred thirty thousand (133,560) homeowning households live in 

 Owner Occupied 

Households

Homeownership 

Rate

 Owner Occupied 

Households

Percent of All Owner 

Occupied Households

Homeownership 

Rate

Region I Southeast 1,015,464 65.3% 261,383 25.7% 49.2%

Region II Northeast 621,048 70.7% 62,097 10.0% 43.4%

Region III South Central 533,060 70.4% 39,256 7.4% 38.1%

Region IV North Central 304,921 70.9% 5,725 1.9% 32.2%

Region V Southwest 736,526 69.7% 42,311 5.7% 37.0%

Region VI Northwest 269,959 71.9% 6,696 2.5% 35.9%

Pennsylvania 3,480,978 68.9% 417,468 12.0% 45.0%

PHFA Region

All Households Households of Color
5

manufactured homes, both in manufactured home communities (MHCs) and on privately-owned 

land. (See Table 2.)

Table 2. Owner-Occupied Housing Types in Pennsylvania

Number and 

Types of Units

Housing Units Population

# % # %

1 Unit 3,253,640 93.5% 8,455,835 94.9%

2-4 Units 43,829 1.3% 86,869 1.0%

5+ Units 49,053 1.4% 76,685 0.9%

Manufactured 133,560 3.8% 284,795 3.2%

Boat, RV, Van, etc. 896 0.0% 2,016 0.0%

Total 3,480,978 100% 8,906,200 100%

Source – ACS 2015-2019

Figure 1 presents the share of PA homeowners who own their homes free and clear. 

Figure 1. Share of Homeowners Who Own Their Homes Free and Clear

White Households of Color All Households

All Incomes 1,244,621 141,425 1,386,046

% 40.8% 34.2% 40%

<=150% AMI 1,027,041 124,496 1,151,537

% 46.4% 37.5% 45.2%

Source – ACS 2015-2019
6

Approximately 40% or 1,386,046 households do not have a mortgage. A substantially greater share 

of white households than households of color own their homes unencumbered from mortgage debt; 

41% and 34%, respectively. In addition, a greater share of lower income households, regardless of 

their race and ethnicity, own their homes without a mortgage than the overall population of 

homeowners; 45% for households making less than 150% of the area median income versus 40% 

for households of all incomes. (See Figure 1.)

According to Home Mortgage Disclosure Act (HMDA) data on home loans originated between 

2007 and 2019, about a third of Pennsylvania homeowners purchased their homes with nonconventional mortgages secured by the Federal Housing Administration (FHA), the U.S. 

Department of Veterans Affairs (VA) or the United States Department of Agriculture’s (USDA) 

Rural Housing Service or Farm Service Agency (RSA/FSA). The overall volume of these nonconventional mortgages is concentrated in the greater Philadelphia area (Southeast), greater 

Pittsburgh (Southwest), and the Northeast (See Table 3). Because they generally offer more 

flexible qualification requirements, non-conventional loans are more prevalent among lower 

income and Socially Disadvantaged borrowers.3

Table 3. Share of Government-Secured Mortgages by Region

Map 2 presents the Census tract share of all home purchase originations that were made to buyers 

with incomes at or below 100% of their Area Median Income (areas in green are forests). 

3 https://www.fha.com/fha_loan_requirements

PHFA Region All Originations Conventional FHA-insured VA-guaranteed FSA/RHS-guaranteed

460,247 328,938 112,702 14,764 3,843

100% 71.5% 24.5% 3.2% 0.8%

232,024 140,413 70,712 12,621 8,278

100% 60.5% 30.5% 5.4% 3.6%

243,092 147,124 61,580 18,742 15,646

100% 60.6% 25.3% 7.7% 6.4%

88,595 59,532 15,876 6,000 7,187

100% 67.2% 17.9% 6.8% 8.1%

288,416 193,338 74,037 13,684 7,357

100% 67.0% 25.7% 4.7% 2.6%

73,496 48,337 16,452 4,798 3,909

100% 67.0% 22.4% 6.5% 5.3%

1,385,869 917,681 351,359 70,609 46,220

100% 66.2% 25.4% 5.1% 3.3%

Source: HMDA 2007 - 2019

Statewide

Region I Southeast

Region II Northeast

Region III South Central

Region IV North Central

Region V Southwest

Region VI Northwest
7

Map 2. Share of Loan Originations to Low-Income Households

PHFA 

Regions

Originations to Households <= 100% 

AMI

Originations to 

Households > 

100% AMI All Originations White 

Households

Households 

of Color Total

Region I

Southeast

150,378 

(33%) 60,904 211,282 248,965(54%)

460,247

(100%)

Region II

Northeast

98,661 

(43%) 23,905 122,566 109,458(47%)

232,024

(100%)

Region III

South 

Central

116,853 

(48%) 14,664 131,517 111,575(46%)

243,092

(100%)

Region IV

North 

Central

41,331 

(47%) 1,324 42,655 45,940(52%)

88,595

(100%)

Region V

Southwest

126,733 

(44%) 9,449 136,182 152,234(53%)

288,416

(100%)

Region VI

Northwest

36,705 

(50%) 1,568 38,273 35,223(48%)

73,496

(100%)

Statewide 570,661 

(41%) 111,814 682,475 703,394(51%)

1,385,869

(100%)

Source: Home Mortgage Disclosure Act, 2007 – 2019.
8

Approximately 49% of home purchase originations between 2007 and 2019 were for households 

with incomes at or below their Area Median Income (AMI). Approximately 11% of home purchase 

originations were for households of color with incomes at or less than 150% of the AMI. Analysis 

of the data at the census tract level reveals that most of these low-income households, and 

particularly households of color, are concentrated in cities (Philadelphia, Pittsburgh, Harrisburg, 

Allentown), as well as the Northeastern part of the state. Map 3 presents the Census tract share of 

home purchase originations made to households of color with incomes up to 150% of their Area 

Median Incomes.

Map 3. Share of Loan Originations to Low- and Moderate- Income Households of Color
9

PHFA 

Regions

Originations to Households <= 150% 

AMI

Originations 

to 

Households > 

150% AMI

All Originations White 

Households

Households of 

Color Total

Region I

Southeast

242,264

(53%) 80,214 322,478 137,769(30%)

460,247

(100%)

Region II

Northeast

149,971

(65%) 30,334 180,306 51,718(22%)

232,024

(100%)

Region III

South 

Central

173,683

(71%) 19,427 193,110 49,982(21%)

243,092

(100%)

Region IV

North 

Central

64,155

(72%) 2,102 66,257 22,338(25%)

88,595

(100%)

Region V

Southwest

192,320

(67%) 13,529 205,849 82,567(29%)

288,416

(100%)

Region VI

Northwest

54,367

(74%) 2,111 56,478 17,018(23%)

73,496

(100%)

Statewide 876,760

(63%) 147,717 1,024,477 361,392(26%)

1,385,869

(100%)

Source: Home Mortgage Disclosure Act, 2007 – 2019.

Overall, the greatest volume of home purchase lending to low to moderate-income households is 

concentrated in the Southeast, Southwest and South Central regions of the state. The largest 

volume and share of low to moderate-income homebuyers of color are concentrated in the 

Southeast and Northeast regions of the state. 

§3.2. Coronavirus Pandemic Impact.

Throughout the Spring of 2020, the health system in the Commonwealth and throughout the 

country strained against surging COVID-19 cases, and millions of Pennsylvanians followed the 

stay-at-home order. For some, that meant working from home, but for many, the closure of nonessential businesses and the stay-at-home order meant temporary reduction or loss of income, and 

in some cases, long-term unemployment. By April 2020, the Pennsylvania economy lost about 

926,000 jobs.4 The State’s initial unemployment claims peaked in the first week of April at 

390,753.5In April 2020, the Philadelphia Federal Reserve developed a methodology to identify 

workers who would be at the greatest risk of unemployment due to nationwide closures of 

unessential businesses and shifts to remote work.6 Maps 4-6 present the distribution of at-risk 

workers across the Commonwealth, and large urban centers, at the outset of the pandemic.

4 https://data.bls.gov/timeseries/LASST420000000000003

5 https://www.workstats.dli.pa.gov/Products/UCActivity/Pages/default.aspx

6 https://www.philadelphiafed.org/community-development/housing-and-neighborhoods/which-neighborhoods-andhouseholds-will-be-most-impacted-by-covid-19; https://www.philadelphiafed.org/communitydevelopment/workforce-and-economic-development/which-workers-will-be-most-impacted
10

Map 4. Share of Workforce At-Risk of Unemployment, April 2020

Map 5. Share of Philadelphia Workforce At-Risk of Unemployment, April 2020
11

Map 6. Share of Allegheny County Workforce At-Risk of Unemployment, April 2020

Pandemic-related job losses were widespread throughout Pennsylvania, but the pace of the 

ongoing recovery has varied across Pennsylvania’s counties. Figure 2 presents the changes in 

employment for Pennsylvania, contrasted with Philadelphia and Allegheny counties. 

Figure 2: Change in Employment in Philadelphia, Allegheny County (Pittsburgh), and 

Pennsylvania, January 2020 – May 2021 

-18%

-16%

-14%

-12%

-10%

-8%

-6%

-4%

-2%

0%

2%

Philadelphia Allegheny Pennsylvania
12

Source: Bureau of Labor Statistics’ Local Area Unemployment Statistics

Employment levels bottomed out in April 2020, when employment was down 15% statewide 

compared to January 2020, before the pandemic hit. Employment in Philadelphia (-15%) and 

Allegheny (-16%) counties declined by about the same share as statewide. Philadelphia has 

recovered job losses more slowly than the rest of the State or Allegheny County. As of May 2021,

employment had rebounded to 5% below pre-pandemic levels in Allegheny County and statewide 

but were still 9% below pre-pandemic levels in Philadelphia. 

The impact of pandemic-related job losses in Pennsylvania has been felt disproportionately by 

people of color. Black and Hispanic Pennsylvanians have faced much higher unemployment rates 

than white Pennsylvanians. Figure 3 presents the 2020 annualized unemployment rates for PA 

residents of different racial and ethnic groups and the margin of survey error in those rates.

Figure 3. Annualized Unemployment Rates for PA Residents, 2020

Source: Bureau of Labor Statistics’ Local Area Unemployment Statistics

Black Pennsylvanians had an annualized unemployment rate of 17.2% in 2020, and Hispanic 

Pennsylvanians had an annualized unemployment rate of 14.4%, compared to a 7.8% 

unemployment rate for white Pennsylvanians.7 The annualized unemployment rate for Asian 

Pennsylvanians was also higher (10.2%) than white residents, although within the survey margin 

of error. 

7 https://www.bls.gov/lau/ex14tables.htm
13

§3.3. Estimating Target Populations for HAF Support.

ACS 2015-19 records provide the most reliable way to identify areas in Pennsylvania with high 

populations of low income and Socially Disadvantaged homeowners, both with and without 

mortgages, who may be eligible for assistance under one of the PAHAF programs. Table 4 presents 

the number of owner-occupied homes with and without a mortgage, disaggregated by prepandemic income and Socially Disadvantaged status. 

Table 4. Households in Owner-Occupied Housing Units by Mortgage Status, Income, and 

Socially Disadvantaged Status 

Source: ACS 2015-2019

Using the estimated target populations in Table 4, each population segment was further broken 

down by their vulnerability to foreclosure. Target populations who are the most likely to need 

assistance may be homeowners with a mortgage who are coming out of a forbearance plan; 

homeowners without a mortgage who were unable to pay their real estate tax obligations; 

homeowners who may be delinquent on their home loan; or homeowners in condominiums who 

are delinquent on association fees.

§3.4. Estimating At-Risk Homeowners.

The federal CARES Act, passed in March 2020, provides forbearances for homeowners with 

federally backed mortgages. The Mortgage Analytics and Performance Dashboard (MAPD) data, 

which was compiled by the private research firm Black Knight and provided to PHFA by the 

Federal Reserve Bank of Atlanta, shows that for a sample of 600,000 mortgages, the statewide 

delinquency rate increased from 2.7% in April 2020 to 3.5% by January 2021. The forbearance 

rate peaked in June 2020 at 8.7% and has declined steadily since to 4.2% in March 2021 (See 

Figure 4).

According to data from the Mortgage Bankers Association (MBA), about 6.6 percent of mortgages 

in the state were delinquent in Q4 2019, prior to the pandemic. By Q4 of 2020, the delinquency

rate had increased to almost 9 percent among Pennsylvania homeowners (See Figure 4).

Homeowners with a 

Mortgage

Homeowners w/o a 

Mortgage

Total

All Households 2,079,022 1,386,046 3,465,068

<= 100% AMI 881,392 935,422 1,816,814

100-150% AMI 512,701 216,115 728,816

TOTAL <= 150% AMI 1,394,093 1,151,537 2,545,630

Socially Disadvanted Households 272,280 141,425 413,705

<= 100% AMI 153,351 107,521 260,872

100-150% AMI 54,351 16,975 71,326

TOTAL <= 150% AMI 207,702 124,496 332,198
14

Figure 4. Pennsylvania Forbearance & Delinquency Rates, April 2020 – March 2021

Source: Black Knight; Federal Reserve Bank of Atlanta

Figure 5 shows that forbearance rates were (and remain) much higher in the Philadelphia 

(Southeast) and Northeast Regions compared to the rest of the state. Forbearance rates began 

trending up in the North Central and Northwest regions towards the end of 2020 and into 2021. 

Figure 5. Forbearance Rates by Region, April 2020 – March 2021

Source: Black Knight; Federal Reserve Bank of Atlanta

Applying a combined average mortgage forbearance and delinquency rate observed in Figure 4

(10.5%) to the population of PA homeowners with incomes below 100% of AMI 

(See Table 4), approximately 28,676 PA owner-occupied households were delinquent and 62,633 

were in forbearance in the first quarter of 2021. In total, an approximated 91,309 owner-occupied 
15

households with incomes below 100% of AMI are currently in forbearance or delinquent on their 

mortgages. Table 5 presents the estimated number of households in delinquency and forbearance 

across different racial and ethnic groups, using nationally estimated delinquency and forbearance 

rates for different racial and ethnic groups.8

Table 5. Estimated Count of Income Eligible Households in Delinquency or Forbearance by 

Racial/Ethnic Groups 

Total Households

Black 11,870

Hispanic 18,262

Asian 4,565

Other Race 1,826

White 54,785

Total 91,309

Source: IPUMS (ACS 2015-2019), Mortgage Bankers Association, Federal Reserve Bank

Table 5 suggests that roughly 36,500 socially disadvantaged homeowners’ mortgages are either in 

forbearance or delinquent. Map 7 presents the ZIP Code level geographic distribution of the 

combined delinquency/forbearance rate across the Commonwealth, along with ZIP Codes with 

elevated populations of socially disadvantaged households (i.e. above the state median).

8 https://files.consumerfinance.gov/f/documents/cfpb_characteristics-mortgage-borrowers-during-covid-19-

pandemic_report_2021-05.pdf
16

Map 7. ZIP Code Level Mortgage Delinquency/Forbearance Rates

There are ZIP Codes across the Commonwealth with combined delinquency/forbearance rates 

above 10% - from Philadelphia to Scranton, Johnstown, in the Southwest and Northwest. The 

greatest concentrations of ZIP Codes with elevated populations of Social Disadvantaged 

households tend to be clustered in the Southeast (Philadelphia), Northwest (Erie), South-Central 

(Harrisburg and York), Northeast (Monroe), and Pittsburgh areas. 

§3.5. Anticipated Needs for Property Tax Assistance.

Many Pennsylvania homeowners without mortgages have income losses from the COVID-19 

pandemic that have resulted in property tax arrearages, including many socially disadvantaged 

homeowners. Based on American Community Survey, 2015-2019 data from Integrated Public Use 

Microdata Series (IPUMS), an estimated 935,422 Pennsylvania homeowners are income eligible 

at 100% of AMI and do not currently have a mortgage, including 107,521 socially disadvantaged 

homeowners. Socially disadvantaged homeowners without a mortgage live predominately in 

Philadelphia (43%), Allegheny (8%), Montgomery (7%), and Delaware (7%) counties. Incomeeligible Hispanic homeowners without a mortgage also commonly live in Berks (9%) and Lehigh 

(8%) counties. 

Tax delinquency data from Philadelphia and Allegheny counties suggest that homeowners with 

COVID-related income losses could be thousands of dollars behind on property taxes. Tables 7 

and 8 show the number of tax delinquent homeowners in these counties and the distribution of 

property tax arrearages. 
17

Table 7: Property Tax Delinquency in Philadelphia County

Table 8: Property Tax Delinquency in Allegheny County

In Philadelphia, 2,271 homeowners became newly delinquent on property taxes in 2020, possibly 

because of COVID-related income losses. These homeowners were typically about $611 dollars 

in arrears, although the average is almost twice that amount ($1,153). In Allegheny County 700 

homeowners were newly tax delinquent in 2020,9 with a median delinquency arrearage of $1,172 

and average of $1,743. 

Map 12 shows where in Philadelphia homeowners behind on their taxes live and shows that likely 

the majority of these homeowners are socially disadvantaged. The geography of property tax 

delinquency in Allegheny County (see Map 13 below) also suggests that many socially 

disadvantaged homeowners may need assistance with property tax arrearages.

9 Not all municipalities in Allegheny County had reported 2020 tax liens by the time of this writing, so this number 

understates the extent of need for property tax assistance there.

When Delinquent Count Delinquent Avg. Amount 

Behind

Q1 Amount 

Behind

Median Amount 

Behind

Q3 Amount 

Behind

Before 2020 11,973 $7,783 $1,538 $3,898 $9,293

In 2020 2,271 $1,153 $117 $661 $1,580

Total 14,244 $6,252 $826 $2,648 $7,080

When Delinquent Count Delinquent Avg. Amount 

Behind

Q1 Amount 

Behind

Median Amount 

Behind

Q3 Amount 

Behind

Before 2020 12,544 $3,034 $431 $1,410 $3,750

In 2020 700 $1,743 $490 $1,172 $2,515

Total 13,244 $2,966 $437 $1,395 $3,603
18

Map 12: Property Tax Delinquency in Philadelphia County

Map 13: Property Tax Delinquency in Allegheny County
19

§3.6. Anticipated Needs for Utility Assistance. 

In addition to household need for mortgage assistance and tax arrearages, a great deal of low to 

moderate income households in PA could also benefit from support for utilities arrearages incurred 

due to income losses associated with the COVID-19 pandemic. Accessing reliable data for utility 

arrearages is challenging due to the diverse range of providers, both public and private, across the 

Commonwealth. However, the Pennsylvania Utility Law Project (PULP) collects a range of data 

points from the Commonwealth’s largest utility providers on a semi-annual basis to track ‘at risk’ 

accounts and dollar values of arrearages associated with these accounts. 

In February 2021 there were 814,508 ‘at risk’ accounts associated with $852,054,166 in 

outstanding debt reported by most of the state’s largest utility providers to PULP. This represents 

roughly 16% of all PA households. While it is not possible to know which of these delinquent 

accounts are associated with renters and those associated with homeowners, a conservative 

estimate of 10% of the income eligible owner-occupied households in PA in need of utilities 

assistance would represent roughly 182,000 households. Additionally, a recent report from 

Philadelphia’s Community Legal Services and the PA Utility Law Project found that utility 

delinquencies are disproportionately concentrated among socially disadvantaged residents.10

10 https://clsphila.org/wp-content/uploads/2021/03/CLS_UtilityReport_20200324.pdf
20

Chapter 4. Stakeholder Engagement and Public Comment.

Pennsylvania has a robust network of non-profit Legal Service Providers operating across the 

Commonwealth with whom PHFA has established a close working relationship. PHFA held a 

meeting on July 6, 2021 and received comments from PA Legal Service Providers June 15, 2021 

and July 20, 2021 related to all elements of the Treasury guidance and PA HAF plan development.

In addition, PHFA has an active and engaged Housing Counseling Network and administers its 

own funding along with grant funding from HUD and Neighborworks to 65 agencies across the 

state. PHFA held three virtual meetings with the Housing Counseling network in July with a 

turnout of over 164 participants. Housing Counselors were encouraged to provide ongoing 

feedback and input into the PAHAF plan elements. 

The Agency has also held conversations with many other individual community and stakeholder 

groups, including numerous state elected officials, briefing them on various aspects of the program 

plan and implementation. 

Furthermore, PHFA held two statewide hearings to provide information on Treasury’s program 

guidance and the PAHAF Draft Plan. The forums were virtual public meetings designed to solicit 

feedback from community members, legal service providers, advocates, and housing counseling 

agencies, as well as the public. PHFA partnered with 19 community and government agencies, 

with a particular focus on including organizations that coordinate services for socially 

disadvantaged homeowners, to encourage their local program partners and constituents to attend 

the hearing and provide feedback. Those community agencies sent email blasts, social media posts 

and organized in-person sessions for those without internet access to attend the on-line public 

forum. 

The public meeting was advertised through PHFA’s social media and email list serve. A PHFA 

HAF page was created and a list of interested parties has been accumulating. The webpage was 

updated to include notice a of the Public Hearings. A public notice was issued in the PA Bulletin, 

on the PHFA website and distributed widely to community groups. 

PHFA also took into consideration stakeholder comments from PA Mortgage Bankers, 

Community Development Financial Institutions (CDFIs), Community Development Corporations 

(CDCs), community-based non-profits that serve the target audience, elected officials, legal 

service providers and housing counseling agencies. Additionally, separate meetings have been 

held as requested to address specific issues related to socially disadvantaged individuals.

The PAHAF statewide virtual hearings were held on September 8th and September 14th. The 

audience was robust with 134 attendees comprised of Community Partners Assisting 

Homeowners, Housing Counselors, Legal Services Providers, Homeowners in Need, Elected 

Officials or Staff, PA State Agencies and CDFI personnel. In addition, the recording was viewed 

by another 63 interested parties. The comments and questions varied across these topics: Types 

of Assistance & Timing, Outreach, Housing Counseling & Legal Service Providers Role in the 

Program, Specific Eligibility determination & requirements within the Plan and a few unrelated 

comments. A special meeting was also held to review the PAHAF Plan with Pennsylvania Health 

Access with 90 registered attendees. The questions and comments followed the same as above 

with one additional question in reference to accessibility for those with loss of vision. 
21

The public comment period was open from September 11, 2021 to October 11, 2021. Public 

comments were recorded and addressed, informing the final version of the PAHAF Plan.

The public could submit written comments regarding PAHAF Plan to HAFComments@phfa.org.

The plan and information about submitting public comments is also posted on the PHFA website

www.phfa.org/haf/.

We received five written comments to the HAFcomments@phfa.org mailbox from the following:

• Community Legal Services (CLS) in Philadelphia & Philadelphia Legal Assistance,

• Pennsylvania Utility Law Project & Energy Unit of CLS

• Regional Housing Legal Services

• The Energy Association of PA

• PA Save Our Home Coalition (a consortium of 41 organizations)

A few homeowners also inquired as to the availability and timing of funds but did not submit any 

comments specific to the draft plan. 

The comments covered a variety of topics to address program details for low-to-moderate income 

homeowners and cited concerns about the possible administration of the program. Listed below 

are some of the recurring themes that were covered: 

• Include a Fact-Specific proxy

• Allow for broader utility assistance & lessen requirements for application timing from 

other utility sources

• Require fewer documents for eligibility

• Recommended changes in process flow in-order to expediate application processing

• Provide higher cap limits and longer forward payment assistance

• Broaden and open-up the pilot program

• Change specific language for clarity in reference to administration of the program

• Ensure a greater focus on socially disadvantaged in marketing and outreach

All comments have been reviewed and evaluated for inclusion in the PAHAF Program.

§4.1 Housing Finance Agency Coordination.

The National Council of State Housing Agencies holds meetings twice a week with mortgage 

servicers and state agency leaders to discuss best practices, coordination of activity where 

applicable, and review program requirements. Several members of the Pennsylvania Housing 

Finance Agency team have actively participated in these meetings. In addition, one-on-one 

meetings have been held with a number of states, particularly those that administered Hardest Hit 

Funds, in order to ascertain best practices and lessons learned from those programs that would 

apply to the PAHAF program.
22

Chapter 5. PAHAF Program Design.

§5.1. Definitions.

The following words and terms shall have the following meanings:

Applicant — A homeowner or a program partner applying on behalf of a homeowner.

Homeowner — The owner-occupant of a dwelling consisting of one-to-four-unit dwelling who has 

experienced a material reduction in income or material increase in living expenses after January 

21, 2020, associated with the coronavirus pandemic. This term is interchangeable with the term 

"mortgagor."

Household — A household consists of all persons who occupy a single property. The occupants 

may be a single family, one person living alone, two or more families living together, or any groups 

of related or unrelated persons who share living arrangements.

Income — The term income will refer to annual household income as calculated using adjusted 

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

series for individual federal annual income tax purposes.

Lender — A mortgagee whose debt is secured by a first lien on the property of a homeowner. This 

term is interchangeable with the term "mortgagee."

Mortgage — 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 singlefamily residence, a mortgage secured by a two-family residence, a mortgage secured by a threefamily 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

Mortgagee — A lender whose debt is secured by a first lien on the property of a homeowner. This 

term is interchangeable with the term "lender."

Mortgagor — The owner-occupant of a dwelling consisting of a one- to four-unit dwelling, who 

has experienced a financial hardship after January 21, 2020, due to the COVID-19 pandemic. This 

term is interchangeable with the term "homeowner."

Reconsideration — PAHAF applicants who believe a denial is due to an error, incorrect,

missing, or inconsistent information in accordance with eligibility guidelines will be eligible for a 

“reconsideration review” to appeal that decision. 
23

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 

Land; or (5) individual who lives in a persistent-poverty county, meaning any country 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 socially 

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

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

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

Qualified Financial Hardship — a material reduction in income or material increase in living 

expenses associated with the Coronavirus pandemic that has created or increased the risk of 

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

displacement for a homeowner. The homeowner has experienced a material reduction in income 

and/or a material increase in living expenses associated with the COVID-19 pandemic that began, 

continued or worsened any time after January 21, 2020 (including a hardship that began before 

January 21, 2020, but continued after that date). 

§5.2. Eligible Homeowners

Eligible Homeowners must meet the following criteria: 

a) Homeowner must be a natural person or trustee of a living trust that holds title to the 

property. Heirs, equitable owners, and successors-in-interest, as that term is defined in 

section 1024.31 of Title 12 of the Code of Federal Regulations (12 CFR 1024.31), meet 

this ownership requirement. 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.

b) Homeowner must have experienced a Qualified Financial Hardship after January 21, 2020 

(including a hardship that began before January 21, 2020 but continued after that date).

c) Homeowner must currently own and occupy the property as their primary residence and be 

located in Pennsylvania. 

d) Homeowner must meet the Homeowner Income Eligibility Requirements. 

e) Homeowner must agree to provide all necessary documentation to satisfy program 

guidelines within timeframes established by the State, including self-attestation.

f) The original, unpaid principal balance of the homeowner’s first mortgage or housing loan, 

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

of origination.

g) PA HAF funds may be used to supplement other loss mitigation measures offered by the 

servicer or where HAF funds are necessary for the homeowner to qualify for other such 

loss mitigation measures. To the extent applicants are able to use other loss mitigation 

resources in a timeline consistent with the timeline of the application for HAF assistance, 

utilizing other loss mitigation resources first is encouraged.
24

Note that for income eligibility, the program may elect to use a fact-specific proxy to reduce 

paperwork barriers to program entry. In the event a fact-specific proxy does not qualify a 

homeowner or data is otherwise unavailable to conduct the fact specific proxy for a homeowner 

location, the IRS 1040 method of calculating annual income will be used. This will require 

applicants to submit income documentation such as the most recently filed tax return or other wage 

and income documentation. Additional details on this process will be included in the program 

policies and procedures. 

§5.3. Qualified Expenses.

HAF participants may use funding from the HAF only for the following types of qualified 

expenses:

a) Expenses that are for the purpose of preventing homeowner mortgage delinquencies, 

homeowner mortgage defaults, homeowner mortgage foreclosures, and displacements of 

homeowners experiencing financial hardship: 

1) 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; 

2) Forward payment assistance for a period of 6-months forward.

Assistance is available for a first mortgage on the property of an eligible homeowner, 

subject to all other eligibility criteria. PAHAF Funds will be used to bring accounts fully 

current, with no remaining delinquent amounts, and to repay amounts advanced by the 

lender or servicer on the borrower’s behalf for property charges, including property taxes, 

hazard insurance premiums, flood or wind insurance premiums, ground rents, 

condominium fees, cooperative maintenance fees, planned unit development fees, 

homeowners’ association fees or utilities that the servicer advanced to protect lien position. 

Payment may also include any reasonably required legal fees. Homeowners in bankruptcy 

may be considered with bankruptcy court approval. 

b) Expenses that are for the purpose of preventing homeowner mortgage foreclosures, and 

displacements of homeowners experiencing financial hardship for those homeowners that 

currently do not have a mortgage or have a reverse mortgage on the property. 

1) Property taxes; and

2) Property Insurance.

c) Expenses for past due utility bills, particularly for those utility bills where no program 

currently exists in PA to assist the homeowner that could result in liens, possible 

foreclosure and homeowner displacement. Homeowners will be encouraged to apply for

identified utility assistance when applying for the PA HAF utility portion of the program. 

Utility assistance awarded through HAF must not duplicate grant assistance provided 

through other federal and state programs
25

§5.4. Estimating Anticipated Program Costs to Meet Need.

Assistance will be limited to a maximum of $30,000 or 24 months of mortgage assistance per 

household over the life of the program. Based on available data related to the monthly mortgage 

costs for income eligible borrowers (roughly $1,219) 11 and the length of delinquency or 

forbearance (almost half of eligible owners were behind 3 months or fewer as of March, 2021),12

the estimated total cost of catching up all income-eligible homeowners in delinquency, 

forbearance, and foreclosure would be roughly $1.1 billion13.

Approximately $50 million of the HAF funds will be used to develop and administer the program, 

and for housing counseling and legal services. After accounting for Administrative and Housing 

Counseling & Legal Service Provider expenses to develop and administer the fund, PA HAF will 

have approximately $300 million available for eligible homeowners in PA.

To maximize the number of homeowners that can receive assistance under the PAHAF program, 

three separate scenarios were analyzed to identify a cap for the amount of support individual 

homeowners could receive under the program: $20,000; $30,000; and $40,000. These cap levels 

were selected under the assumption that these amounts of support should be sufficient to meet the 

needs of the vast majority of income-eligible homeowners in the Commonwealth. 

Building estimates of homeowner supports per household to each cap level involved the following 

steps: 

a) Assign eligible homeowners in need a ‘number of months’ behind. Although nearly half of 

qualifying owners were behind three months or fewer, the Federal Reserve Bank of New 

York14 estimates that one in eight owners is behind 11 months or more. For the 91,309 

eligible households the number of months behind was assigned based on estimations from 

100 simulations that assigned a months-behind on the basis of the share of homeowners 

with varying months behind using forbearance and delinquency records from the NY Fed 

– duration of forbearance and delinquency ranged from one to 11-months; after the number 

of months in forbearance or delinquency was assigned, 9 additional months were added to 

account for the gap between the March, 2021 delinquency records available for the needs 

assessment and December, 2021 – the anticipated start of the PAHAF program;

b) Assign a monthly owner cost, sampled from the 2015-2019 ACS microdata for income 

eligible homeowners with a mortgage;

c) Homeowner total costs = (months behind+1) multiplied by monthly owner costs;

1) One additional month was added to the ‘months behind’ to ensure that supports 

provided would fully cover outstanding costs for homeowners & timing difference

between application & fund disbursement. 

d) Limit benefits for homeowners over the cap. 

11 IPUMS (ACS 2015-2019), adjusted to 2021 dollars. In 2021, the median monthly costs for income-eligible 

owners with a mortgage, including principal, interest, taxes, insurance, and utilities was $1,219.

12 Mortgage Bankers Association, Federal Reserve Bank

13 This estimate assumes all 91,309 income eligible homeowners have an average of 9 months of delinquency or 

forbearance and would be brought current on their existing mortgages.

14 https://libertystreeteconomics.newyorkfed.org/2021/05/whats-next-for-forborne-borrowers.html
26

Table 6 presents the amount of assistance, the number and share of eligible homeowners who could 

be supported, and the number and share of eligible homeowners whose need would fall above the 

$30,000 cap limits for direct PAHAF support for homeowners. 

Table 6. Average Assistance and Homeowners Supported by $30,000 Assistance Cap 

Sources: IPUMS (ACS 2015-2019); Mortgage Bankers Association; Black Knight; Atlanta & New York Federal 

Reserve

Table 6 suggests that direct HAF assistance for eligible PA homeowners could support 16,109

homeowners – roughly 18% of all income eligible homeowners in the Commonwealth. 

Additionally, about 14% of income eligible homeowners would likely need support above the 

$30,000 cap for HAF supports. Based on these estimates, the greatest share of HAF supports will 

likely go to homeowners with needs below the $30,000 cap – although roughly a quarter of HAF 

funds may be deployed to support a smaller number of homeowners who will require a greater 

share of the overall HAF supports. Figure 6 presents the estimated share of homeowners and the 

share of HAF costs that will be deployed at different levels of support under the proposed HAF 

program with a $30,000 cap. 

Figure 6: Share of Homeowners and Share of HAF Costs by Amount of Homeowner 

Assistance Need

Average Assistance Provided $18,623

Total Homeowners Assisted 16,109

% of Income Eligible Homeowners Assisted 17.6%

Income Eligible Homeowners Above Cap 12,307

% of Income Eligible Homeowners Above Cap 13.5%
27

As seen in Figure 6, just under 90% of homeowners in need would require assistance below the 

$30,000 cap, accounting for roughly 75% of available HAF funds. The 13.5% of homeowners in 

need of assistance above $30,000 will account for roughly 25% of the total HAF funds committed 

under the proposed program.

Chapter 6. Marketing and Outreach.

§6.1. Marketing and Outreach Campaign.

PHFA has direct experience marketing housing programs and services to socially disadvantaged 

populations and has built strong relationships with business partners tied to these communities. As 

a primary provider of affordable housing for low- and moderate-income families in Pennsylvania, 

PHFA has established credibility and trust in the communities the PAHAF was created to serve. 

PHFA will implement a marketing and outreach strategy that widely reaches all eligible 

Pennsylvania homeowners and relevant stakeholders to properly amplify the program’s clear call 

to action: apply now.

While efforts will be made to raise general program awareness across the Commonwealth, PAHAF 

will strategically focus additional marketing and outreach resources to ensure Pennsylvania’s most 

vulnerable populations can equitably access PAHAF assistance. From start to finish, PHFA will 

regularly collect, review, and incorporate new data to best reach Pennsylvania’s housing insecure 

residents who may benefit from this assistance. 

PHFA will leverage existing relationships with loan servicers, housing counseling agencies, 

community officials, elected officials, local business, and other key amplifiers to help share and 

promote the program. 

Program Branding and Presence

PHFA will use existing agency branding standards for PAHAF to build program legitimacy and 

trust among Pennsylvania homeowners, mortgage servicers, housing advocates, and other key 

stakeholders by showcasing an already established and recognizable brand. 

Branding consistency will be key to raise program awareness across Pennsylvania and increase 

visibility in the Commonwealth’s most socially disadvantaged communities. 

Outreach Materials 

PHFA will create easy-to-understand user guides, program fact sheets, process flyers, application 

checklists, press releases, web content, and social media messaging and graphics to inform and 

regularly communicate program updates to the public. 

To increase program reach and visibility, PHFA will encourage community buy-in and engage 

external partners by creating a community partner toolkit that can be easily employed to amplify 

PAHAF messaging. PHFA will offer opportunities for stakeholder engagement throughout the 

program, by coordinating virtual and in-person town halls to local leaders can properly market the 

program to our state’s most vulnerable populations. By identifying program champions and 

working with respected community leaders, PHFA will increase its local footprint and grow its 

network of program amplifiers. 
28

Equity/Accessibility

Treasury requires HAF participants such as PHFA to design programs to be as accessible as 

possible to homeowners in different circumstances, including offering multiple intake formats, 

engaging with nonprofit organizations to provide additional pathways into the program, and 

providing culturally and linguistically relevant outreach. 

PHFA will ensure all marketing materials be made available in English and Spanish with the 

potential for additional language as needed to best reach targeted audiences. These materials will 

be shared with community leaders, elected officials, and other stakeholders with access to minority 

populations to help increase program awareness through trusted channels. Printed materials will 

be available at in-person events and targeted community gathering places. PHFA will make 

necessary accommodations for individuals with disabilities and access and functional needs to 

ensure equitable access to PAHAF services. A focus will be made to increase accessibility by 

offering in-person intake or informational sessions as permitted with current COVID-19 

conditions.

Marketing and Outreach Campaign 

PHFA will engage and share PAHAF materials and content through a variety of channels and 

means, including:

 Website: User and mobile-friendly PAHAF website that provides an easy to access online 

application portal.

 Social Media: Regular social media engagement (e.g., Nextdoor, Facebook, Twitter, 

Instagram, LinkedIn). Messaging will include calls to action to drive prospective applicants 

to the PAHAF website and/or call center.

 Paid Media: Launch a strategic media buy that includes search ads, display ads, billboards, 

transit, and other media platforms. 

 Earned Media: Develop news releases, and pitch radio and television interviews, noting 

rural areas with limited Internet will primarily rely on radio and television advertising. 

 Direct Marketing: Trade and niche publications, direct mail, email marketing, and text 

messaging to reach key targeted jurisdictions, including rural areas and socially 

disadvantaged groups.

 Community Partner Toolkits: Develop custom marketing resources for community 

partners (e.g., nonprofits, government, legal aid) and state and local elected officials to 

provide easy-to-implement messaging and graphics with a clear call to action that will help 

amplify the program’s presence through trusted networks. Materials provided to PHFA 

partners for their clients and constituents will help further increase program outreach and 

engagement.

 PAHAF Intake Centers: Offer in-person application assistance in strategically placed 

locations that increase accessibility to rural and the socially vulnerable.

 PAHAF Customer Call Center: Over-the-phone application support that includes 

translation services and special needs accommodations. The PAHAF Customer Call Center 

will also increase outreach efforts through outbound call campaigns to potentially eligible 

Pennsylvania homeowners. In addition, the Call Center has the ability to offer assistance 

in other languages besides English and Spanish through a translation service.
29

 Mobile Intake Operations: Conduct mobile-intake at high-traffic community locations 

(e.g., grocery stores, food banks, community centers, libraries, social services offices) to 

raise awareness of PAHAF services and offer on-site application assistance. 

Stakeholder Engagement 

From day one, PHFA will routinely inform and engage key stakeholders and housing advocates to 

help amplify PAHAF messaging to reach all affected homeowners in Pennsylvania. The 

stakeholder groups and partnerships that will be leveraged to help promote the program, include, 

but are not limited to:

 Minority and rural advisory boards, nonprofits, legal aid, community organizations, 

housing counselors and faith-based organizations;

 Community leaders and local elected officials;

 Mortgage providers that serve low- and moderate-income homeowners, including banks, 

servicers, Community Development Corporations (CDCs), Community Development 

Financial Institutions (CDFIs), and other nonprofits that offer affordable housing programs 

to low, very low- and moderate-income homebuyers; and

 Other agencies across Pennsylvania that can help educate homeowners about program 

options and facilitate program entry.

§6.2. Data Driven Methodology for Marketing Approach to Reach Socially Disadvantaged

The PAHAF program will utilize a data driven approach to targeting the most at need low-tomoderate homeowners earning less than 150% of AMI and socially disadvantaged. By using this 

data driven approach PAHAF will focus messaging to target audiences to maximize marketing 

dollars.

For instance, Maps 8 – 11, below present forbearance/delinquency rates in Philadelphia, 

Allegheny, Lackawanna, and Monroe counties, and identify areas with a high concentration of 

homeowners that will be a target population for the PAHAF program. In addition, we have also 

identified high concentrations of target population homeowners with no mortgage in the following 

counties: Philadelphia, Allegheny, Montgomery, Delaware, Chester, Bucks Lehigh, Berks, 

Dauphin, and Monroe counties. PHFA will continue to refine these data to ensure marketing 

resources are focused on reaching the most vulnerable for the PAHAF program.
30

Map 8. ZIP Code Level Mortgage Delinquency/Forbearance Rates (Allegheny County)

Map 9.ZIP Code Level Mortgage Delinquency/Forbearance Rates (Philadelphia County)
31

Map 10.ZIP Code Level Mortgage Delinquency/Forbearance Rates (Lackawanna County)

Map 11. ZIP Code Level Mortgage Delinquency/Forbearance Rates (Monroe County)
32

Feedback will be a critical component of the Marketing/Community Outreach Campaign. 

Listening to impacted homeowners and trusted partners will ensure a more impactful campaign 

and help fine tune the marketing approach to reach the target audience. PHFA will be constantly 

monitoring the different dimensions of the marketing program and will make adjustments, as 

needed, to ensure a successful PAHAF program. 

Chapter 7. Performance Goals.

Treasury requires that each HAF participant 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 PHFA in the HAF 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 participant must include a goal focused on reducing mortgage 

delinquency among targeted populations.

PAHAF has been established to reduce mortgage delinquency across the following groups:

 Homeowners at or below 100% of the AMI, or national median income, whichever is 

greater

 Socially disadvantaged groups, as defined by Treasury 

Performance measures that PHFA will track to measure performance of the HAF, as designed, 

may include:

 Outreach saturation to targeted populations (# outreach activities completed, impressions 

made, inquiries received, applications initiated, applications completed categorized by 

geographic and demographic profiles)

 Reduction of delinquency and foreclosure (# homeowners served through mortgage 

reinstatement and exiting delinquency or foreclosure status)

 Reduction of forbearance (# homeowners exiting forbearance programs as a result of 

PAHAF assistance bringing loans current)

 Dollar value and number of assistance awards provided to households with 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.

 Dollar value, number of assistance awards, and percentage of assistance total assistance 

demographic groups, particularly those designated as Socially Disadvantaged

 Rate of assistance provided (average duration of time applicant is in the program from 

initial application completion to assistance payout)

Additional reporting requirements for the PAHAF have been imposed through the Pennsylvania 

legislative process. PHFA will comply with those reporting requirements in addition to reporting 

against the above stated performance goals. 
33

Chapter 8. Readiness, Including Staffing and Systems, Contracts and Partnerships and 

Existing and Pilot Programs. 

PHFA is the administrator for the Homeowner’s Emergency Mortgage Assistance Program 

(HEMAP) which was created by Act 91 of 1983, and was designed to protect Pennsylvanians who, 

through no fault of their own, are financially unable to make their mortgage payments and are in 

danger of losing their homes to foreclosure. HEMAP provides for assistance with mortgage 

arrearage and forward payments up to 24 months or a maximum of $60,000. PHFA was also the 

designated administrator for the former PA Mortgage Assistance Program (PMAP) created under 

the CARES Act, to assist borrowers with mortgage payments up to six months. 

The Treasury guidance for the Homeowner Assistance Fund encouraged states to conduct pilot 

programs prior to full-plan approval. Given the extensive experience in administering mortgage 

assistance programs, application and processing systems in place, and with extension of the 

foreclosure eviction moratorium, HEMAP staff was charged with conducting a PAHAF pilot 

program.

The PAHAF pilot program began in August 2021, in order to test design options, alignment to 

borrower’s need, and implementation feasibility for the full plan prior to submission to the 

Treasury for approval. The pilot program is currently targeting a limited pool of borrowers who 

have exhausted loss mitigation options and are at greatest risk for default and foreclosure, as well 

as, borrowers who have received an Act 6 or Act 91 notice of intent to foreclose. As PHFA has 

secured a third-party vendor for overall PAHAF program operations, the pilot program will be 

moved to the vendor while the Treasury reviews the full plan.

PHFA has secured partnerships with 44 HUD-approved housing counseling agencies and the PA 

Legal Aid Network (PLAN) to provide assistance to eligible homeowners. The program partners 

will be assisting homeowners with making the PAHAF application, loss mitigation options and 

financial counseling, title issues, outreach to targeted homeowners, etc. 

PHFA’s program management vendor will provide the online screening and application system, 

call center, applicant services, eligibility review, quality control, payment processing, and 

reporting support. The service provider and PHFA staff have worked collaboratively to develop 

the program framework and define program policies and procedures. 

PHFA will maintain PAHAF Policies and Procedures, which will be hosted on the program 

website. These will be updated and maintained throughout the life of the program. 

In addition, Standard Operating Procedures for every task associated with the grant process will 

be developed. All staff will be trained on the overall program policies and procedures as well as 

task specific standard operating procedures. At a minimum, standard operating procedures will 

cover:

• Call Center Operations and Customer Service

• Application Intake and Completion

• Case Management

• Eligibility Review

• Quality Control

• Payment Processing

• Anti-fraud, Waste and Abuse
34

Chapter 9. Budget.

PHFA has executed a contract to outsource this program to a highly qualified Third-Party vendor 

to manage highly interactive human-centered design software and administrate the overall 

operations including the key task identified below to utilize their expertise in rapid deployment of 

critical funds to eligible homeowners. 

A total of $35 million is allocated for administrative expenses, which include PHFA administrative 

cost and Third-Party Vendor cost, as defined below: 

a) Administration of intake, eligibility review, escalations, disbursal of assistance. 

b) Application portal creation and management. 

c) Call center operations, including language line and accessibility services.

d) Marketing and outreach by organizations with experience and capacity for reaching 

low-to-moderate income homeowners and socially disadvantaged populations.

e) Data analysis and reporting, compliance and technical assistance

f) Technology 

Allocation of 5% ($17.5 million) for Housing Counseling and Legal Aid Services Funds are to be 

made available for the provision of holistic foreclosure prevention housing counseling and nonprofit legal aid services to homeowners to prevent foreclosure and/or displacement, and to aid 

homeowners who may be eligible for HAF in applying. Agencies funded to provide general 

housing counseling (as distinct from legal assistance) must be HUD approved. 

Funds disbursed under the program $297.9 million.

The administrative budget for this program based on Treasury and PA legislation is expected to be 

$35 million. However, PHFA and our supplier partners that are administering this program, are 

committed to our responsibility as fiscal stewards of these funds and will work together to manage 

costs with a focus on providing as much assistance as possible to our communities.

Date: October 18, 2021 ROBIN L. WIESSMANN

Executive Director & Chief Executive Officer