Homeowners growing frustrated federal money earmarked for mortgage help has yet to flow

It’s been eight months since Congress authorized emergency funding to help people out with their mortgages and yet, the portal to apply hasn’t even opened.

Back in March, Congress approved the Housing Assistance Fund as part of the $1.9 trillion American Rescue Plan. The program was designed to help people catch up on mortgage and housing payments they’ve been unable to make due to COVID.

It’s unclear how many people in North Carolina face foreclosure on their homes now that the moratorium has been lifted. The North Carolina Housing Finance Agency, however, said they've collected names for about 5,000 residents interested in the funding.

Chris Telesca, an event photographer, is one of those people. His business has been significantly affected due to COVID-related cancelations.

"I can't tell you how stressful it is," Telesca said. "No one seems to factor any of that in."

The Raleigh-based photographer said he's contacted state and federal authorities, expressing his concerns. He is growing frustrated as he's exhausted many other options like forbearance.

"We know the frustrations are growing," said Scott Farmer, the executive director of the North Carolina Housing Finance Agency.

He said our state was among the first 11 to submit plans for how they'd distribute funding and to whom through this program to the U.S. Treasury back in August.

"Quite frankly, it's just taken Treasury a long time to sort of get things up and running out of the gate," Farmer said. "It was not a program that was in existence. It started from scratch."

A Treasury spokesperson said the program was set up so states had to "submit plans for approval, based on feedback from advocates and experts and experience with past programs, to ensure these funds are distributed equitably and reach underserved communities."

The spokesperson and Farmer said there has been some feedback about the state's proposed plan.

"We're just waiting for Treasury to sort of work through their process of reviewing those plans, and approving those plans so that we can get the program up and running for folks in North Carolina," said Farmer.

In all, about $10 billion will be distributed across all 50 states as well as D.C., U.S. territories and tribal land.

North Carolina's portion totals about $273 million, and once it starts flowing, 60 percent will be earmarked for people who make the median income or less for their area. The rest will go to people making up to 150 percent of that median income.

A Treasury spokesperson told us they’re working expeditiously to review and approve plans as they are submitted.

While the state is hopeful the portal will open soon after the new year begins, homeowners who are on the brink of losing their houses are concerned that’ll come too late.

"I don't have all that much money that's gonna let me go another several months, while I'm waiting for the HAF program to start," said Telesca.