Many homeowners have been struggling to pay their dues as a result of the COVID-19 pandemic. If your HOA has seen a rise in non-payments as of late, the NC Homeowner Assistance may be just what you need.
What Is the NC Homeowner Assistance Fund?
In 2020, COVID-19 swept through American soil and impacted millions of lives. Many people lost their jobs or had their livelihood affected in one way or another. For homeowners living in HOA communities, it became increasingly difficult to keep up with their dues. This is where the North Carolina Homeowner Assistance Fund can come in handy.
President Biden proposed the American Rescue Plan last year, which Congress subsequently adopted. The American Rescue Plan included a coronavirus rescue package worth $1.9 trillion. This package had the overall goal of helping the country recover from the effects of the pandemic at a much quicker pace.
The bill contained several proposals, and one of them is the NC Homeowner Assistance Fund. This fund is essentially $10 billion set aside for states, territories, and tribes to help homeowners recover from the pandemic.
State Access to the Homeowner Assistance Fund
States were not immediately able to obtain monies from the fund. Each state had to go through a process that involved creating a state-specific plan and submitting it to the United States government. The U.S. Treasury would then have to approve of the plan.
Relief came in many forms, and every state considered different types. This included mortgage payments and other forms of needs. Both the NC Chapter of the Community Associations Institute and Law Firm Carolinas appealed for the fund to also be available to homeowners in community associations who were having trouble paying their HOA and condo dues. As many know, defaulting on HOA dues can result in serious consequences, such as liens and foreclosures.
North Carolina drafted its state-specific plan, which included homeowner relief in the form of HOA dues, and submitted it to the U.S. Treasury in the summer of 2021. It recently obtained approval.
How to Benefit from the NC Homeowner Assistance Fund
Who can apply for the fund? In North Carolina, homeowners who were affected by the COVID-19 pandemic and require help paying for housing and related costs can submit applications.
Examples of housing and related expenses include mortgage insurance, homeowners insurance, flood insurance, and delinquent property taxes that could lead to foreclosure. Of course, it also includes HOA or condo dues.
To qualify, homeowners must show financial hardship. This can be due to a job loss, trouble finding new employment, a reduction in pay or work hours, increased costs as a result of the pandemic, business closure, the death of a spouse, and more. The fund will ask for income and other requirements, so homeowners must be prepared. Additionally, all requests must be in relation to the homeowner’s primary residence. Up to $40,000 of assistance is available to qualified homeowners.
More specific instructions and qualifications can be found on the NCHAF website.
South Carolina Homeowner Assistance Fund
North Carolina has already had its plan approved, but what about South Carolina? South Carolina has also submitted its state-specific plan to the U.S. Treasury. As of writing, though, the plan has yet to receive approval. You can find more information on the SC fund on the South Carolina Housing website.
Countless homeowners associations experienced a rise in delinquencies throughout the COVID-19 pandemic, and it still persists up to this day. The NC Homeowner Assistance Fund is designed to extend help to affected homeowners and such associations.
Does your HOA board need help in managing your homeowners association? Cedar Management Group is your best choice. Call us today at (877) 252-3327 or contact us online to know more about our services.
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