New federal stimulus checks are unlikely, but many states are continuing to provide targeted relief using federal funds. Texas is one such state, and it is ready to assist homeowners. This Texas homeowner stimulus check, known as the Texas Homeowners Assistance Fund, is funded by funds obtained by the state from the American Rescue Plan Act of 2021. This stimulus payment is now available to Texas homeowners.
What Is the Texas Homeowners Assistance Fund?
With more than $840 million, the Texas Department of Housing and Community Affairs (TDHCA) recently established the Texas Homeowners Assistance Fund. The programme aims to assist homeowners who have struggled to pay their mortgage, home insurance, property taxes, and other home-related expenses as a result of the coronavirus pandemic.
TDHCA is in charge of this programme, which began accepting applications this week. Eligible households can receive up to $40,000 in back mortgage payments and up to $25,000 in back property insurance, taxes, and other related expenses.
TDHCA will send the Texas homeowner stimulus check directly to mortgage servicers, property tax authorities, insurance companies, and others for those who are eligible.
It took Texas nearly a year to get this programme up and running, almost a year after U.S. lawmakers approved the funds. Last April, the Treasury Department issued guidelines for homeowner assistance programmes. TDHCA submitted its plan to the Treasury Department in September and received federal approval in January.
Many other states, such as California and New York, began this programme much earlier. The $1.9 trillion American Rescue Plan Act, passed in March 2021, set aside more than $10 billion to assist homeowners.
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Texas, on the other hand, has run pilot programmes to assist homeowners. The state has distributed approximately $5 million to over 600 households through two pilot programmes, according to TDHCA.
Who Will Receive the Texas Homeowner Stimulus Check?
The applicant must owe one or more mortgage payments, property insurance, property tax, and other related expenses to be eligible for the Texas homeowner stimulus check. Furthermore, to be eligible, the applicant’s household income must be at or below 100 percent of the Area Median Income, and the applicant must own and occupy a primary residence in Texas.
In addition, the applicant must have experienced financial hardship as a result of the coronavirus pandemic after January 21, 2020. Homeowners will have to demonstrate that they suffered financial hardship as a result of the COVID-19 pandemic.
Homeowners will be required to submit supporting documentation, such as proof of identification, proof of income, proof of occupancy, and a delinquent statement, as part of the application process.
According to TDHCA, it is collaborating with organisations across the state to assist households with the application process.