Understanding the Homeowner Assistance Fund and HOA Dues

The COVID-19 pandemic brought widespread financial hardship to homeowners across the country. In response, the federal government launched the Homeowner Assistance Fund (HAF), a critical resource aimed at helping Americans avoid foreclosure, utility shutoffs, and other housing-related crises. For those living in homeowners associations (HOAs), the HAF may even help cover unpaid association dues in select states.

This article explains what the Homeowner Assistance Fund is, how it works, and how it applies to HOA communities.

What Is the Homeowner Assistance Fund?

Established under the American Rescue Plan Act of 2021, the Homeowner Assistance Fund was designed to help homeowners affected by the pandemic catch up on housing-related expenses. The fund allocates nearly $10 billion to support mortgage payments, utility bills, insurance premiums, and—in some cases—HOA assessments.

Each state received a minimum of $50 million in funding, with additional distributions provided to tribal governments, U.S. territories, and the District of Columbia. To access these funds, each state was required to submit a plan to the U.S. Department of the Treasury. Once approved, the state could begin distributing aid through designated housing finance agencies.

States Participating in the HAF Program

Most U.S. states have approved and active HAF programs. However, implementation and available aid vary.

States with Active HAF Programs Include:

• Alabama, Arizona, Arkansas, California, Georgia, Hawaii, Kentucky, Louisiana, Maryland, Nebraska, New Jersey, New York, North Carolina, Oklahoma, Pennsylvania, Rhode Island, Tennessee, Vermont, Virginia
  
  

States Currently in Pilot Phases Include:

• Colorado, District of Columbia, Florida, Massachusetts, Michigan, Mississippi, Montana, Nevada, Ohio, Oregon, Texas, Wyoming
  
  

States with Approved but Inactive Programs Include:

• Alaska, Connecticut, Delaware, Illinois, Indiana, Iowa, Kansas, Minnesota, Missouri, New Hampshire, New Mexico, South Carolina, South Dakota, Washington, West Virginia, Wisconsin
  
  

For the most accurate and current information, homeowners should contact their state’s housing authority directly.

Does the HAF Cover HOA Dues?

While the fund was initially designed to address mortgage and utility delinquencies, some state plans have extended coverage to include HOA and condo association dues. In these states, HOA dues are considered necessary housing-related costs, particularly because delinquency can lead to fines, liens, or even foreclosure.

As of now, states that include HOA dues as eligible expenses under HAF include:

• Alabama
  
  
• Arizona
  
  
• Georgia
  
  
• Hawaii
  
  
• Kentucky
  
  
• Nebraska
  
  
• New York
  
  
• North Carolina
  
  
• Oklahoma
  
  
• Tennessee
  
  
• Vermont
  
  
• Virginia
  
  

If you're a homeowner in one of these states and are behind on your HOA dues, you may be eligible for financial assistance through your state’s HAF program.

Who Qualifies for HAF Assistance?

To qualify, homeowners generally must meet two criteria:

1. Income Eligibility: Your household income must be at or below 150% of the area median income (AMI), as defined by the U.S. Department of Housing and Urban Development (HUD).
   
   
2. Financial Hardship: You must demonstrate financial hardship related to the COVID-19 pandemic after January 21, 2020. This may include job loss, reduced income, or significant medical expenses.
   
   

In some cases, additional documentation may be required, such as mortgage statements, utility bills, or proof of HOA dues.

Applying for Assistance with HOA Dues

If you live in an HOA and believe you qualify, your first step should be to review your state’s HAF program guidelines. You can usually find this information on your state’s housing finance agency website.

You should also:

• Speak with your HOA board or property management company. Some associations may already be familiar with the HAF process and can provide helpful documentation or guidance.
  
  
• Gather evidence of your financial hardship and HOA dues statements.
  
  
• Apply directly through your state’s designated HAF application portal.
  
  

In most cases, funds are disbursed directly to your mortgage servicer, utility company, or HOA to pay off outstanding balances.

What If Your State Doesn’t Cover HOA Dues?

If your state’s HAF program doesn’t currently support HOA dues, don’t panic. Some states may update their plans as the needs of homeowners evolve. In the meantime:

• Check with your HOA about potential payment plans or fee waivers.
  
  
• Explore other local or nonprofit financial assistance programs.
  
  
• Stay in communication with your HOA to avoid escalating penalties.
  
  

Why HOA Dues Matter in Times of Financial Hardship

Delinquent HOA dues can have serious consequences. Associations rely on dues to maintain shared amenities, pay for insurance, and manage operational costs. When dues go unpaid, it can strain community resources—and in some states, it can result in legal action or foreclosure.

That’s why programs like the HAF are so important for HOA residents. They help preserve housing stability not just for individual homeowners, but for entire communities.

The Importance of Staying Informed

Because HAF program rules vary by state and continue to evolve, it’s critical for homeowners and HOA boards to stay informed. Homeowners should routinely check their state’s housing agency website for updates, and HOA boards should communicate openly with residents about available financial relief.

Conclusion: Protecting Homeowners and Communities

The Homeowner Assistance Fund has played a crucial role in helping Americans maintain housing stability during an unpredictable period. While not every state includes HOA dues in their approved use of funds, many do—and more may follow. If you’re struggling with dues or mortgage payments, now is the time to explore your options.

Understanding how these programs work and taking action early can help you avoid penalties and protect your home.

For HOA boards looking to better support their residents during times of financial stress, working with an experienced property management company can help ensure you stay compliant with changing regulations while maintaining transparency and stability.

Looking for expert guidance managing your community’s finances and navigating HOA regulations? Gordon James Realty can help. Contact our team today to learn how we support associations through compliance, budgeting, and proactive community management.

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