Need Financial Assistance for your Delinquent Property Taxes?
Effective as of April 1, the Texas Department of Housing and Community Affairs (TDHCA) updated their policies related to the American Rescue Act Program. According to TDHCA, the U.S. Department of Treasury has been monitoring their program and is promulgating these changes.
As of the effective date, qualified applicants will only be eligible to receive payment for delinquent taxes for years 2019, 2020 and 2021. Therefore, if the homeowner has delinquent taxes due for years prior to 2019, they must be paid before or concurrently with any payment of 2019, 2020 and 2021. If they are not paid the homeowner will not be eligible for funds through the Program. Homeowner applications that are currently pending and that were filed prior to April 1 are still eligible for receipt of all years taxes under the Program’s old rules.
Consider the American Rescue Plan
American Rescue Plan Act Background
In March of 2021 the U.S. Congress passed and POTUS signed the American Rescue Plan Act. One of the components of the Act was directed at homeowner relief. Congress created a Homeowners Assistance Fund (HAF). That fund is intended to support homeowners impacted by the pandemic to help them stay in their homes and avoid foreclosure. TDHCA is the designated HAF administrator in Texas.
The program developed by TDHCA extends to homeowners who have delinquent taxes that could subject them to foreclosure. Eligible homeowners will be able to apply to TDHCA and if they qualify, receive a grant (not a loan) whereby TDHCA will send a check directly to their local tax office to pay delinquent taxes on their homestead - up to $25K. Basic eligibility guidelines will be:
- Have fallen behind on one or more payments: mortgage, property tax, property insurance, HOA/condo association fees.
- Household income at or below 100% Area Median Income (AMI)
- Own and occupy their home in Texas as their primary residence
- Household experienced a qualified financial hardship after January 21, 2020, such as lost income or increased expenses due to the pandemic.
Applicants will need to be able to provide:
- A form of identification – DL, SS card, Military ID, State ID card, Birth Certificate, etc.
- Income verification – pay stub, W2, IRS Form 1099, tax return, employer attestation, etc.
- Evidence of delinquency – a delinquent tax statement, demand letter from tax attorney, etc.
Interested homeowners can go to www.TexasHomeownerAssistance.com or contact them on their toll-free number 833-651-3874 to get more information and to apply.