1 

NYS HAF Term Sheet

Updated May 19, 2023

PRINCIPAL REDUCTION/MORTGAGE REINSTATEMENT

 TERM SHEET

PROGRAM OVERVIEW

Homeowners who cannot achieve an affordable loss mitigation solution offered by 

their loan servicer may be eligible for a partial or full reinstatement of owed 

principal, interest, taxes, insurance, and homeowner association fees (PITIA) 

payments and/or a principal reduction.

Homeowners coming out of a mortgage forbearance agreement, or those who were 

denied or missed the option to go into forbearance and are considered delinquent, 

or who are current because they accepted a loss mitigation offer that was not 

affordable by NYS HAF’s definition may be eligible. 

The underlying mortgage issues are to be resolved in their entirety with no 

remaining delinquent amounts. In instances where the NYS HAF fund maximum 

benefit are insufficient to resolve the situation, homeowners can leverage HAF with 

other available funds, including personal financial resources.

Applicants to this program will be directed to work with their mortgage servicer to 

explore all available loss mitigation options in conjunction with an application for 

NYS HAF assistance. To be eligible for HAF assistance, applicants will be required to 

accept reasonable offers for loan workouts and modifications provided the offer 

conforms to federal and state investor and/or regulatory requirements.

FORECLOSURE/DISPLACEMENT RISK 

FACTOR

Once mortgage foreclosure moratoria and mandatory forbearance periods expire, 

borrowers may be at risk, either because they were not placed in a forbearance 

agreement during the pandemic, because they had outstanding arrears prior to the 

pandemic and suffered a COVID hardship, and/or because the post-forbearance loss 

mitigation solution being offered by their mortgage holder or servicer isn't financially 

viable without additional economic relief. 

PROGRAM GOAL To provide financial assistance to Eligible Homeowners to cure defaults where loss

mitigation is not a feasible option and to make mortgage payments affordable and 

sustainable, resulting in homeownership retention.

TARGETED POPULATION

Eligible Homeowners with mortgages exiting forbearance or delinquent. 

There is an estimated total of 2.4 million homeowners with mortgages, of which 

860,000 have incomes at or below 100% of the Area Median Income (AMI). Recent 

data suggests that roughly nine and half percent (9.5%) of homeowners with 

mortgages are either delinquent or in forbearance. Included in this target population 

are seniors with reverse mortgages, for whom ninety percent (90%) are backed by 

the Federal Housing Administration (FHA), and who are most commonly living on 

fixed, low incomes. 
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PRIORITIZATION

Initially the program will be available exclusively to borrowers who earn less than 

one hundred percent (100%) of the AMI. Forty percent (40%) of program funds will 

be prioritized for “Socially Disadvantaged Individuals and Vulnerable Populations” 

with household incomes at or below 100% AMI. The HAF definition of Socially 

Disadvantaged and Vulnerable Populations includes racial and ethnic minorities who 

have been subject to housing discrimination, senior citizens, individuals with 

disabilities, applicants with limited English proficiency and those who have limited 

access to web-based technology.

Applicants will self-attest to their status as either a Socially Disadvantaged Individual 

or a Vulnerable Population .

APPLICATION PERIOD

NYS HAF accepted applications from January 3, 2022 through February 18, 2022 and 

maintains a waiting list for homeowners who did not apply during the application 

period but would be contacted should the application reopen. 

Based on the current pipeline of first round applications, NYS HAF believes we can 

fund additional applicants from our Waitlist. We have begun requesting applications 

in the order that potential applicants signed up for the waitlist, however we continue 

to prioritize any applicants who we learn are at imminent risk of foreclosure and/or 

eviction.. We will continue to request applications until the NYS HAF funds are fully 

committed.

POLICY DOCUMENTATION REQUIRED

ELIGIBLE HOMEOWNERS

Eligible applicants must be delinquent,

(30 days or more past due) by at least 

one payment. This definition includes 

payments missed during a forbearance 

period. An exception is made for 

applicants who became current on a 

COVID-related delinquency by accepting 

a loss mitigation offer but who may still 

need assistance under HAF. 

Eligible applicants must have been 

reviewed for all available loss mitigation 

by their mortgage servicer prior to NYS 

HAF making a final award determination.

If a following loss mitigation, a 

homeowner cannot be brough fully 

current, HAF awards up to the program 

cap will be offered to bring the applicant 

fully current. If the applicant is struggling 

to make their old or modified payment 

due to a loss of income of increase in 

Documentation from mortgage servicer 

showing forbearance termination date or 

default status

To be confirmed by servicer and 

validated by NYS HAF Escalation Case 

Management Team

NYS HAF will use an automated 

validation 3rd party system (MELISSA) 

using the applicants’ address.
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ELIGIBLE HOMEOWNERS (CONT)

expenses, a HAF award will be offered in 

the form of principal reduction in order 

to further lower the monthly payment.

NYS HAF will provide funds for 

reinstatement if the loan can be brought 

fully current. If the delinquency exceeds 

the program’s award cap, the applicant 

may either provide gap funds to make up 

the difference or seek loss mitigation 

with the servicer through the P program.

If an applicant is brought current but 

their DTI exceeds 50%, and a servicer is 

unable or unwilling to accept a principal 

reduction, NYS HAF may offer the 

applicant 6 months of prospective 

payments (See Forward Payment term 

sheet) in order to enable the applicant to 

offset the loss of income or increase in 

expense. 

Eligible applicants must be a natural 

person or trustee of a living trust that 

holds title to the property. Heirs, 

equitable owners, and successors-ininterest are also eligible. 

Eligible applicants must have 

experienced a Qualified Financial 

Hardship after January 21, 2020. 

A Qualified Financial Hardship is defined 

in the American Rescue Plan, §3206 

(ARP), as 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. 

● Reduction of Income is a 

temporary or permanent loss of income 

after January 1, 2020. 

● Increase in living expenses is an 

increase in out-of-pocket household 

If the ownership cannot be automatically 

validated, ownership may be validated 

by providing a deed, title policy, co-op 

lease, land contract, mortgage 

statement, property tax bill, heirship 

documentation or will, homeowner’s 

insurance policy for structure, HOA or 

co-op statement.

Qualified Financial Hardships shall be 

demonstrated through a signed 

attestation (form to be provided by the 

NYS HAF program). 

The Attestation shall specify whether 

applicant experienced an increase in 

expenses and/or reduction of income 

associated with the Coronavirus 

pandemic that has created or increased 

risk of mortgage delinquency, mortgage 

default, foreclosure, loss of utilities or 

home energy services, or displacement 

for the homeowner. 

Attestation may be completed online 

through the secure application portal.

With permission from the applicant, the 

program may be able to automatically 

verify proof of primary residency through 

a 3rd Party verification (MELISSA). In 

cases where this cannot be validated, 

applicants may sign an attestation as to 

their primary residence.
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expenses, such as medical expenses, 

inadequate medical insurance, increase 

in household size, increase in childcare 

costs, or other costs associated with the 

Coronavirus pandemic after January 1, 

2020.

Eligible applicants must currently own 

and occupy the property as their primary 

residence.

Eligible applicants' original mortgage or 

home loan must have had an unpaid 

principal balance (UPB) at the time of 

origination no greater than the 

conforming loan limits in effect at time 

of origination

Co-owners are not permitted to 

separately apply for the NYS HAF 

Program assistance.

Mortgage statement or servicergenerated document, or credit report 

(may be pulled with applicant 

permission) showing original UPB, or 

other document to confirm loan original 

UPB was under limit. 

ABILITY TO PAY

Eligible applicants must have the ability 

to pay their ongoing housing costs. 

Ability to pay shall be verified by an 

attestation by the homeowner. (A form 

of attestation will be provided to the 

applicant by NYS HAF.) 

INCOME ELIGIBILITY

Initially the program will be available 

exclusively to borrowers who earn less 

than one hundred percent (100%) AMI. 

Forty percent (40%) of program funds 

will be prioritized for Socially 

Disadvantaged Individuals and 

Vulnerable Populations. 

 

Applicants shall attest to their household 

income, family size and the address of 

the property. 

An Income Proxy Methodology will be 

used to expedite income eligibility, 

where feasible. The income proxy will 

rely on NY State Department of Labor 

data. The proxy will require applicants to 

provide social security numbers for all 

adult working members of the 

household. 

If an applicant cannot be verified based 

on the Income Proxy Methodology, we 

will require the applicant to submit 

documentation to demonstrate their 

income eligibility. A copy of a 2020 filed 

tax return (signature/date not needed), 
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INCOME ELIGIBILITY

(CONT)

Contingent on the availability of funds, 

NYS HAF may expand the eligibility to 

higher income households but in no 

event will HAF funds be made available 

to applicants with incomes exceeding 

one hundred fifty percent (150%) AMI.

or the 4506-T-obtained tax transcript will 

suffice. 

Alternatively, applicants may provide 

relevant income documents, including 

but not limited to: 

● Social Security (SSI/SSDI) (Social 

Security benefits award letter or 

annual notice of benefits or 2020 

SSA-199 statement)

● 1099 independent contractors or 

self-employed individuals (2020 

tax return or transcript)

● Pension or Annuity (Pension or 

annuity benefits statement) 

● Unemployment income 

(statement)

● Rental or boarder income 

(Current lease or two months 

proof of deposit)

● Non-borrower Contribution 

Income (Two months of proof of 

receipt of funds in bank 

statement) 

● Worker’s Compensation 

(benefits statement); and

● Wages from employment (Two 

most recent paychecks or 

paystubs or letter from employer 

including pay and hours or 2020 

tax return or transcript).

 

Alternatively, proof of applicant 

household participation in a state or 

federal subsidy program such as SNAP, 

WIC, TANF Section 8 may be accepted as 

proof of meeting the program AMI 

requirement. 

ELIGIBLE PROPERTIES

Eligible Properties are those that are: 

● Single-family properties 

● Condominium units/town homes 

● 2- to 4-unit properties where the 

homeowner is living in one of the units 

as their primary residence 

● Manufactured homes permanently 

affixed and taxed as real property; and

● Cooperative units

Ineligible properties are those that are: 

● Homes that are vacant or abandoned

With permission from the applicant, the 

program may be able to automatically 

verify proof of primary residency through 

a 3rd Party verification (MELISSA).

If unable to automatically verify, the 

applicant will need to provide proof of 

eligible property type, with a copy of a 

deed, mortgage statement, proprietary 

lease or title report.
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● Second homes; and

● Non-owner-occupied investment 

property

ELIGIBLE USES OF PROCEEDS

ELIGIBLE USES OF PROCEEDS

(CONT) 

Eligible Proceeds will pay for all 

delinquent housing obligations necessary 

to bring an applicant current and/or 

necessary to achieve an affordable loan 

modification, but not to exceed the 

program cap. 

Eligible housing obligations include: 

● Existing first mortgage loan 

payment (principal and interest), 

escrow shortages

● Subordinate lien payment 

(principal and interest)

● Condominium association fees, 

and cooperative maintenance 

fees, including for lien 

extinguishment (if owed in 

addition to mortgage 

delinquency) 

● Homeowner’s hazard, flood 

and/or mortgage insurance (if 

owed in additional to mortgage 

delinquency) 

● Delinquent property taxes, 

including Reverse Mortgage 

delinquencies (if owed in 

addition to mortgage 

delinquency and not included in 

escrow)

● HELOCs and HELs. (Applicants 

must close the line of credit to 

qualify for HAF assistance.)

● Fees, penalties and/or interest 

incurred.

MAXIMUM PER HOUSEHOLD NYS

HAF ASSISTANCE

Awards will be provided only if the 

underlying matter is resolved in its 

entirety and will be sized to the amount 

needed to resolve the situation, not to 
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exceed the NYS HAF Maximum 

Assistance amount of $95,000 per 

household. 

If an applicant is applying for more than 

one intervention the combined 

assistance across all interventions may 

not exceed $95,000 per borrower.

ASSISTANCE TYPE

Assistance will be structured as a 5-year 

non-interest bearing, non-amortizing 

forgivable grant. The grant is due in full 

upon sale, refinance, or transfer of 

ownership. If no resale, transfer, or 

refinance occurs within 5 years and the 

homeowner remains in the home, the 

grant will be fully forgiven.

The program will file a mortgage or UCC1 security interest in fixtures on the 

property filed in county land records. No 

title review steps related to preservation 

of lien priority or insurability of title shall 

be required (There are no requirements 

to satisfy outstanding liens or confirm 

prior payoffs). 

PAYMENT PROCESS DESCRIPTION

Once an applicant has been deemed 

eligible, a commitment letter will be 

provided.

Following a final award determination, 

the applicant will be asked to sign a grant 

agreement and upon execution, the 

payment will be issued directly to 

mortgage lender/servicer, or other party 

to whom the applicant is legally indebted 

for their housing payments.

In instances where the resolution 

exceeds the amount the NYS HAF can 

provide, the homeowner may pay the 

difference through any means available 

to them provided the outcome results in 

a sustainable homeownership retention 

outcome.

NYS HAF will remit payment to the 

approved 3rd party Creditor. 

Prior to release of funds the applicant 

will sign a NYS HAF Grant Agreement. 

ARREARS SATISFACTION TERM SHEET
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PROGRAM OVERVIEW

Homeowners who do not have a mortgage but are delinquent on other housing 

obligations that came due prior to January 1, 2022, such as property taxes, 

insurances, water and sewer charges, homeowner association and/or maintenance 

fees, seniors with reverse mortgages, or chattel loans and/or retail installment 

contracts, may be eligible for the Non-Mortgage Arrears Satisfaction Program.

FORECLOSURE/DISPLACEMENT RISK 

FACTOR

Property tax foreclosures are mostly controlled by local county governments and 

move on a much faster timeline – roughly two to three (2-3) years, as compared with 

mortgage foreclosures, which in New York state can take as long as five (5) years. In 

addition, property tax delinquencies often lead to the levying of interest penalties 

and fees once a homeowner is three (3) months past due, often with very high 

penalty rates.

Cooperative shareholders are at risk of displacement if they are delinquent on their

maintenance fees. Limited-equity cooperative buildings are mostly in minoritymajority neighborhoods and serve low-income households, based on regulatory 

requirements imposed as a condition of City or State government financing. 

Additionally, there are several non-limited-equity cooperatives throughout the State 

where low-income and minority households own. Under New York State law, 

cooperative and condominium boards may evict a shareholder for non-payment of 

maintenance through a Civil Court proceeding. Condominium homeowners are also 

at risk of displacement for non-payment of homeowner association fees (HOA). 

Homeowners with association fee delinquency could face civil lawsuits by the HOA, 

which could lead to judgments, wage garnishments or other collection activity, which 

could result in the homeowner being placed at risk of foreclosure.

Financing options available to purchasers of manufactured homes, particularly in 

Manufactured Home Communities MHCs, often carry very high interest rates and are 

not regulated by state and federal mortgage banking regulators. Repossession and 

eviction of homes due to non-payment occur on an expedited timeline, through local 

town courts, sometimes in a matter of months. In most of these cases, borrowers are 

not represented by legal counsel. 

PROGRAM GOAL To provide financial assistance to Eligible Homeowners to satisfy non-mortgage 

arrears, resulting in homeownership retention where it otherwise would not have 

been possible.

TARGETED POPULATION

Eligible applicants who are delinquent on their non-mortgage housing payments, 

such as property taxes, manufactured home loan payments (chattel or retail 

installment contracts), and outstanding HOA or condo association fees. . 

There is an estimated total of 1.5 million non-mortgaged homeowners, of which 

845,000 have incomes at or below 100% AMI.
9 

PRIORITIZATION

Initially the program will be available exclusively to borrowers who earn less than 

one hundred percent (100%) of the AMI. Forty percent (40%) of program funds will 

be prioritized for “Socially Disadvantaged Individuals and Vulnerable Populations” 

with household incomes at or below 100% AMI. The HAF definition of Socially 

Disadvantaged and Vulnerable Populations includes racial and ethnic minorities who 

have been subject to housing discrimination, senior citizens, individuals with 

disabilities, applicants with limited English proficiency and those who have limited 

access to web-based technology. 

Applicants will self-attest to their status as either a Socially Disadvantaged Individual 

or a Vulnerable Population.

APPLICATION PERIOD

NYS HAF accepted applications from January 3, 2022 through February 18, 2022 and 

maintains a waiting list for homeowners who did not apply during the application 

period but would be contacted should the application reopen. 

Based on the current pipeline of first round applications, NYS HAF believes we can 

fund additional applicants from our Waitlist. We have begun requesting applications 

in the order that potential applicants signed up for the waitlist, however we continue 

to prioritize any applicants who we learn are at imminent risk of foreclosure and/or 

eviction.. We will continue to request applications until the NYS HAF funds are fully 

committed.

POLICY DOCUMENTATION REQUIRED

ELIGIBLE HOMEOWNERS

Eligible applicants must be delinquent on 

their housing obligations. 

Eligible applicants must be a natural 

person or trustee of a living trust that 

holds title to the property. Heirs, 

equitable owners, and successors-ininterest, as that term is defined in 

section 1024.31 of Title 12 of the Code of 

Federal Regulations, 

Eligible applicants must have 

experienced a Qualified Financial 

Hardship after January 21, 2020. 

Written statement from the party to 

whom the applicant is legally indebted 

for their housing payments.

NYS HAF will use an automated 

validation 3rd party system (MELISSA) 

using the applicants’ address.

If the ownership cannot be automatically 

validated, ownership may be validated 

by providing a deed, title policy, co-op 

lease, land contract, mortgage 

statement, property tax bill, heirship 

documentation or will, homeowner’s 

insurance policy for structure, HOA or 

co-op statement.

Qualified Financial Hardships shall be 

demonstrated through a signed 

attestation (form to be provided by the 

NYS HAF program). 
10

A Qualified Financial Hardship is defined 

in the American Rescue Plan, §3206 

(ARP), as 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. 

● Reduction of Income is a temporary or 

permanent loss of income after January 

1, 2020. 

● Increase in living expenses is an 

increase in out-of-pocket household 

expenses, such as medical expenses, 

inadequate medical insurance, increase 

in household size, increase in childcare 

costs, or other costs associated with the 

Coronavirus pandemic after January 1, 

2020.

Eligible applicants must currently own 

and occupy the property as their primary 

residence.

Co-owners are not permitted to 

separately apply for the NYS HAF 

Program assistance.

The Attestation shall specify whether 

applicant experienced an increased 

expenses and/or reduction of income 

associated with the Coronavirus 

pandemic that has created or increased 

risk of mortgage delinquency, mortgage 

default, foreclosure, loss of utilities or 

home energy services, or displacement 

for the homeowner. Attestation may be 

completed online through the secure 

application portal.

With permission from the applicant, the 

program may be able to automatically 

verify proof of primary residency through 

a 3rd Party verification (MELISSA). In 

cases where this cannot be validated, 

applicants may sign an attestation as to 

their primary residence.

ABILITY TO PAY

Eligible applicants must have the ability 

to pay their ongoing housing costs. 

Applicants who do not have the ability to 

pay their ongoing housing costs may be 

eligible for up to six months of Forward 

Assistance Payment. See the Forward 

Assistance Program Term Sheet for more 

details.

Ability to pay shall be verified by an 

attestation by the homeowner. (A form 

of attestation will be provided to the 

applicant by NYS HAF.) 

INCOME ELIGIBILITY

Initially the program will be available 

exclusively to borrowers who earn less 

than one hundred percent (100%) AMI. 

Applicants shall attest to their household 

income, family size and the address of 

the property. 

An Income Proxy Methodology will be 

used to expedite income eligibility, 
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INCOME ELIGIB ILITY

(CONT)

Forty percent (40%) of program funds 

will be prioritized for Socially 

Disadvantaged Individuals and 

Vulnerable Populations.

where feasible. The income proxy will 

rely on NY State Department of Labor 

data. The proxy will require applicants to 

provide Social Security numbers for all 

adult working members of the 

household. 

If an applicant cannot be verified based 

on the Income Proxy Methodology, we 

will require the applicant to submit 

documentation to demonstrate their 

income eligibility. A copy of a 2020 filed 

tax return (signature/date not needed), 

or the 4506-T-obtained tax transcript will 

suffice. 

Alternatively, applicants may provide 

relevant income documents, including 

but not limited to: 

● Social Security (SSI/SSDI) (Social 

Security benefits award letter or 

annual notice of benefits or 2020 

SSA-199 statement)

● 1099 independent contractors or 

self-employed individuals (2020 

tax return or transcript)

● Pension or Annuity (Pension or 

annuity benefits statement) 

● Unemployment income 

(statement)

● Rental or boarder income 

(Current lease or two months 

proof of deposit)

● Non-borrower Contribution 

Income (Two months of proof of 

receipt of funds in bank 

statement) 

● Worker’s Compensation 

(benefits statement); and

● Wages from employment (Two 

most recent paychecks or 

paystubs or letter from employer 

including pay and hours or 2020 

tax return or transcript).

 

Alternatively, proof of applicant 

household participation in a state or 

federal subsidy program such as SNAP, 

WIC, TANF Section 8 may be accepted as 

proof of meeting the program AMI 

requirement. 
12

Contingent on the availability of funds, 

NYS HAF may expand the eligibility to 

higher income households but in no 

event will HAF funds be made available 

to applicants with incomes exceeding 

one hundred fifty percent (150%) AMI.

ELIGIBLE PROPERTIES

Eligible Properties are those that are: 

● Single-family properties 

● Condominium units/town homes 

● 2- to 4-unit properties where the 

homeowner is living in one of the units 

as their primary residence 

● Manufactured homes permanently 

affixed and taxed as real property; and

● Cooperative units

Ineligible properties are those that are: 

● Homes that are vacant or abandoned

● Second homes; and

● Non-owner-occupied investment 

property

With permission from the applicant, the 

program may be able to automatically 

verify proof of primary residency through 

a 3rd Party verification (MELISSA).

If unable to automatically verify, the 

applicant will need to provide proof of 

eligible property type, with a copy of a 

deed, mortgage statement, proprietary 

lease or title report.

ELIGIBLE USES OF PROCEEDS

Eligible Proceeds will pay for all 

delinquent housing obligations necessary 

to bring an applicant current but not to 

exceed the program cap.

Housing obligations include: 

● Condominium association fees, HOA, 

and cooperative maintenance fees, 

including for lien extinguishment; 

Homeowner’s hazard, flood and/or 

mortgage insurance

● Delinquent property taxes (may also 

include water and sewage arrears)

● Chattel loans, retail installment 

contracts, for Manufactured 

Homeowners
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Homeowners must be delinquent (30 

days or more past due) by at least one 

payment. This definition includes 

payments missed during a forbearance 

period.

MAXIMUM PER HOUSEHOLD NYS

HAF ASSISTANCE

Awards will be provided only if the 

underlying matter is resolved in its 

entirety and will be sized to the amount 

needed to resolve the situation, not to 

exceed the NYS HAF Maximum 

Assistance amount of $50,000 per 

household. 

If an applicant is applying for more than 

one intervention the combined 

assistance across all interventions may 

not exceed $50,000 per borrower. 

If the applicant is eligible for assistance 

in the MR/PR and AS pathways, the 

maximum assistance across all pathways 

may not exceed $95,000 per borrower. 

ASSISTANCE TYPE

Assistance will be structured as a 5-year 

non-interest bearing, non-amortizing 

forgivable grant. The grant is due in full 

upon sale, refinance, or transfer of 

ownership. If no resale, transfer, or 

refinance occurs within 5 years and the 

homeowner remains in the home, the 

grant will be fully forgiven.

The program will file a mortgage or UCC1 security interest in fixtures on the 

property filed in county land records. No 

title review steps related to preservation 

of lien priority or insurability of title shall 

be required (There are no requirements 

to satisfy outstanding liens or confirm 

prior payoffs). 

PAYMENT PROCESS DESCRIPTION

Once an applicant has been deemed 

eligible, a commitment letter will be 

provided.

Following a final award determination, 

the applicant will be asked to sign a grant 

agreement and upon execution, the 

payment will be issued directly to 

mortgage lender/servicer, or other party 

to whom the applicant is legally indebted 

for their housing payments.

NYS HAF will remit payment to the 

approved 3rd party Creditor. 

In jurisdictions where tax entities will not 

accept partial payments for 

delinquencies that were re-levied or a 

due in the current tax year, awards for 

arrears accrued in the last full tax year or 

older are granted. At the end of the 2022 

tax year, applicants who only had open 

tax bills for the 2022 calendar year, 
14

In instances where the resolution 

exceeds the amount the NYS HAF can 

provide, the homeowner may pay the 

difference through any means available 

to them provided the outcome results in 

a sustainable homeownership retention 

outcome.

and/or who attested to an inability to 

pay current taxes, were rereviewed for 

arrears and were brough current.

For applicants being reviewed in 

calendar year 2023, awards are limited 

to the last full tax year or older. Rereviews for arrears accrued in 2023 will 

depend on the availability of additional 

HAF funds. 

Prior to release of funds the applicant 

will sign a NYS HAF Grant Agreement.

 

FORWARD PAYMENT TERM SHEET

PROGRAM OVERVIEW

The Forward Assistance Program is available to all eligible who are not able to afford 

their ongoing housing payment obligations due to the financial impacts of the 

pandemic. Applicants whose monthly housing costs (mortgage, taxes, sewer, 

condo/coop/HOA dues) exceed 50% of their gross monthly household income, are 

eligible for this intervention. 

Applicants who applied for one of the other NYS HAF interventions, as well as 

applicants who have been brought current through a modification, and those that 

were current at the time of application are reviewed for eligibility under this 

intervention. 

The program offers up to 6 months of payments and may be used in combination 

with other interventions provided there is sufficient funding available under the 

program cap. 

Economic recovery has been slower for low-income homeowners and those of 

Socially Disadvantaged Individuals. According to data compiled by the Economic 

Policy Institute in the 3rd Quarter of 2020, the unemployment rate in New York for 

White households was at ten percent (10%), while the unemployment rate for Black 

households was fourteen percent (14%), for Asian American/Pacific Islanders was at 

fifteen point eight percent (15.8%) and for Hispanic households was at nineteen 

point one percent (19.1%). 
15

FORECLOSURE/DISPLACEMENT RISK 

FACTOR

Recent data shows the unemployment rate in New York at 7.7%. In addition, there 

are many pandemic impacted industries in New York where workers are 

experiencing higher than average continued unemployment rates.

Many homeowners are maxing out on the eligible term of their unemployment 

income (UI) benefits and for those who have note regained full employment may not 

qualify for a loan modification or be able to pay their future housing obligations.

PROGRAM GOAL

To provide financial assistance to eligible applicants who cannot sustain their 

housing obligations. This program aims to help homeowners whose income has been 

significantly curtailed at the time of application and at the time of award. The intent 

of this program is to give the additional time needed to find gainful re-employment 

or time to secure other income sources. 

TARGETED POPULATION

State unemployment benefits, coupled with the additional weekly unemployment 

benefits provided by the United States Department of Labor (DOL), have allowed 

many low-income households to make ends meet, but those benefits are set to 

expire or max-out for many recipients in the fall of 2021. The State is committed to 

giving these homeowners additional time to recover from the income loss caused by 

the pandemic.

PRIORITIZATION

Initially the program will be available exclusively to borrowers who earn less than 

one hundred percent (100%) of the AMI. Forty percent (40%) of program funds will 

be prioritized for “Socially Disadvantaged Individuals and Vulnerable Populations” 

with household incomes at or below 100% AMI. The HAF definition of Socially 

Disadvantaged and Vulnerable Populations includes racial and ethnic minorities who 

have been subject to housing discrimination, senior citizens, individuals with 

disabilities, applicants with limited English proficiency and those who have limited 

access to web-based technology. 

Applicants will self-attest to their status as either a Socially Disadvantaged Individual 

or a Vulnerable Population.

APPLICATION PERIOD

NYS HAF accepted applications from January 3, 2022 through February 18, 2022 and 

maintains a waiting list for homeowners who did not apply during the application 

period but would be contacted should the application reopen. 

As of January 2023, NYS HAF has been requesting new applications from our waitlist 

in the order applicants signed up, but with a prioritization for any applicant who may 

be at imminent risk of foreclosure and/or eviction. NYS HAF will continue to invite 

new applications from our waitlist until the NYS HAF funds are fully committed.
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POLICY DOCUMENTATION REQUIRED

ELIGIBLE HOMEOWNERS

ELIGIBLE HOMEOWNERS (CONT) 

Applicants whose monthly housing costs 

exceed 50% of their gross monthly 

household income. 

Eligible applicants must not have the 

ability to pay their ongoing housing 

costs. 

Eligible applicants must be a natural 

person or trustee of a living trust that 

holds title to the property. Heirs, 

equitable owners, and successors-ininterest, as that term is defined in 

section 1024.31 of Title 12 of the Code of 

Federal Regulations, 

Eligible applicants must have 

experienced a Qualified Financial 

Hardship after January 21, 2020. 

A Qualified Financial Hardship is defined 

in the American Rescue Plan, §3206 

(ARP), as 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. 

● Reduction of Income is a temporary or 

permanent loss of income after January 

1, 2020. 

● Increase in living expenses is an 

increase in out-of-pocket household 

expenses, such as medical expenses, 

inadequate medical insurance, increase 

in household size, increase in childcare 

costs, or other costs associated with the 

Inability to pay shall be verified by an 

attestation by the homeowner. (A form 

of attestation will be provided to the 

applicant by NYS HAF.) 

NYS HAF will use an automated 

validation 3rd party system (MELISSA) 

using the applicants’ address.

If the ownership cannot be automatically 

validated, ownership may be validated 

by providing a deed, title policy, co-op 

lease, land contract, mortgage 

statement, property tax bill, heirship 

documentation or will, homeowner’s 

insurance policy for structure, HOA or 

co-op statement.

Qualified Financial Hardships shall be 

demonstrated through a signed 

attestation (form to be provided by the 

NYS HAF program). 

The Attestation shall specify whether 

applicant experienced an increased 

expenses and/or reduction of income 

associated with the Coronavirus 

pandemic that has created or increased 

risk of mortgage delinquency, mortgage 

default, foreclosure, loss of utilities or 

home energy services, or displacement 

for the homeowner. Attestation may be 

completed online through the secure 

application portal.
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Coronavirus pandemic after January 1, 

2020.

Eligible applicants must currently own 

and occupy the property as their primary 

residence.

Co-owners are not permitted to 

separately apply for the NYS HAF 

Program assistance.

With permission from the applicant, the 

program may be able to automatically 

verify proof of primary residency through 

a 3rd Party verification (MELISSA). In 

cases where this cannot be validated,

applicants may sign an attestation as to 

their primary residence.

INCOME ELIGIBILITY

Initially the program will be available 

exclusively to borrowers who earn less 

than one hundred percent (100%) AMI. 

Forty percent (40%) of program funds 

will be prioritized for Socially 

Disadvantaged Individuals and 

Vulnerable Populations.

 

Applicants shall attest to their household 

income, family size and the address of 

the property.

An Income Proxy Methodology will be 

used to expedite income eligibility, 

where feasible. The income proxy will 

rely on NY State Department of Labor 

data. The proxy will require applicants to 

provide social security numbers for all 

adult working members of the 

household. 

If verification cannot be established 

through DOL records, applicants will be 

asked to provide a copy of a 2019 and 

2020 filed tax return (signature/date not 

needed), or the 4506-T-obtained tax 

transcript will suffice. 

Alternatively, applicants may provide 

relevant income documents, including 

but not limited to: 

● Social Security (SSI/SSDI) (Social 

Security benefits award letter or annual 

notice of benefits or 2019/2020 SSA-199 

statement) 
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Contingent on the availability of funds, 

NYS HAF may expand the eligibility to 

higher income households but in no 

event will HAF funds be made available 

to applicants with incomes exceeding 

one hundred fifty percent (150%) AMI.

● 1099 independent contractors or 

self-employed individuals (2019/2020 tax 

return or transcript); Pension or Annuity 

(Pension or annuity benefits statement) 

● Unemployment income 

(statement) 

● Rental or boarder income 

(Current lease or two months proof of 

deposit) 

 

● Non-borrower Contribution 

Income (Two months of proof of receipt 

of funds in bank statement);

● Worker’s Compensation 

(benefits statement); and 

● Wages from employment (Two 

most recent paychecks or paystubs or 

letter from employer including pay and 

hours or 2019/2020 tax return or 

transcript).

Alternatively, proof of applicant 

household participation in a state or 

federal subsidy program such as SNAP, 

WIC, TANF Section 8 may be accepted as 

proof of meeting the program AMI 

requirement. 

ELIGIBLE PROPERTIES

Eligible Properties are those that are: 

● Single-family properties 

● Condominium units/town homes 

● 2- to 4-unit properties where the 

homeowner is living in one of the units 

as their primary residence 

● Manufactured homes permanently 

affixed and taxed as real property; and

● Cooperative units

Ineligible properties are those that are: 

● Homes that are vacant or abandoned

● Second homes; and

● Non-owner-occupied investment 

property

With permission from the applicant, the 

program may be able to automatically 

verify proof of primary residency through 

a 3rd Party verification (MELISSA).

If unable to automatically verify, the 

applicant will need to provide proof of 

eligible property type, with a copy of a 

deed, mortgage statement, proprietary 

lease or title report.
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ELIGIBLE USES OF PROCEEDS

Eligible Proceeds will pay for all up to 6 

months of housing cost obligations. 

Payments may be made directly to the 

entity to whom the homeowner is 

indebted. 

Housing obligations include: 

● Mortgage loan payment 

(principal and interest), except 

for reverse mortgages

● Condominium association fees, 

HOA, and cooperative 

maintenance fees, including for 

lien extinguishment; 

Homeowner’s hazard, flood 

and/or mortgage insurance

● Chattel loans, retail installment 

contracts, and lot rent for 

Manufactured Homeowners

MAXIMUM PER HOUSEHOLD NYS

HAF ASSISTANCE

Awards will be provided for up to 6 

months, not to exceed the NYS HAF 

Maximum Assistance amount under the 

respective program caps.

If the applicant is eligible for both 

Mortgage Forward Payment and NonMortgage Forward Payment, they may 

only receive assistance under one 

pathway, whichever is greater of the 

two.

ASSISTANCE TYPE

Assistance will be structured as a 5-year 

non-interest bearing, non-amortizing 

forgivable grant. The grant is due in full 

upon sale, refinance, or transfer of 

ownership. If no resale, transfer, or 

refinance occurs within 5 years and the 

homeowner remains in the home, the 

grant will be fully forgiven.

The program will file a mortgage or UCC1 security interest in fixtures on the 

property filed in county land records. No 

title review steps related to preservation 

of lien priority or insurability of title shall 

be required (There are no requirements 

to satisfy outstanding liens or confirm 

prior payoffs). 
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PAYMENT PROCESS DESCRIPTION

Once an applicant has been deemed 

eligible, a commitment letter will be 

provided.

Following a final award determination, 

the applicant will be asked to sign a grant 

agreement and upon execution, the 

payment will be issued directly to 

mortgage lender/servicer, or other party 

to whom the applicant is legally indebted 

for their housing payments.

In instances where the resolution 

exceeds the amount the NYS HAF can 

provide, the homeowner may pay the 

difference through any means available 

to them provided the outcome results in 

a sustainable homeownership retention 

outcome.

NYS HAF will remit payment to the 

approved 3rd party Creditor. 

Prior to release of funds the applicant 

will sign a NYS HAF Grant Agreement.