Bill Summaries: H1200 (2019-2020 Session)

Tracking:
  • Summary date: May 26 2020 - View summary

    Part I

    Directs the State Controller to transfer $200 million for the 2019-20 fiscal year from the Coronavirus Relief Reserve to the Coronavirus Relief Fund (both established by SL 2020-4). 

    Requires funds awarded under the act that are returned or repaid to the Housing Finance Agency (Agency) to be deposited to the fund from which it was disbursed to be used pursuant to the act and the federal CARES Act.

    Require unspent funds to be carried forward and appropriated for the 2020-21 fiscal year pursuant to the act and the federal CARES Act.

    Part II

    Appropriates $100 million in nonrecurring funds from the Coronavirus Relief Reserve to the Home Protection Program Fund. Requires the Agency to use the appropriated funds consistent with the statutory requirements and limitations regarding the Home Protection Program (program) set forth in GS 122A-5.14 with modifications concerning participant eligibility, grants awarded, eligibility evaluation and assistance referrals. Establishes eligibility for individuals who are residential property owners in the State, are experiencing financial hardship or a job loss as a result of the COVID-19 pandemic and unable to make mortgage payments, has a household income of no more than 350% of the federal poverty level, and has requested relief from the mortgagee and has been denied. Provides for direct monthly grants to the eligible participant's mortgagee subject to seven restrictions, including limiting application to one household member, requiring the subject property to be the sole and primary residence of the eligible participant, and capping awards at $6,000 per eligible participant in the form of monthly direct payments to the mortgagee of no more than $1,000 for six months. Sets out repayment requirements when the property is sold for profit during a period 10 years from the last grant disbursement. Allows the Agency to use federally certified housing counselors to conduct intake and eligibility evaluation for the program and coordinate with the counselors to administer the grant disbursements and direct payments. Requires applicants to be provided with referrals to specified counseling and financial and foreclosure prevention assistance. Exempts the Agency from the rulemaking requirements of Article 2A, GS Chapter 150B.

    Directs the Agency to report to the specified NCGA committee and division by January 1, 2021, as specified, including reporting on items including a list of mortgagees that denied a request for relief to an individual applying under the program.

    Allows up to 10% of allocated funds to be used by the Agency for administration, staffing, and technical support to housing counseling agencies and nonprofits providing housing and counseling support in the State.

    Requires $5 million of the allocated funds to be provided in the form of grants to federally certified housing counseling agencies in the State for administrative, staffing, and technology costs.

    Requires $5 million of the allocated funds to be provided in the form of grants to nonprofits that provide legal assistance to homeowners facing foreclosure in the State.

    Part III

    Appropriates $100,000 in nonrecurring funds from the Coronavirus Relief Reserve to the Agency to establish and administer a rental assistance grant program (grant program). Establishes eligibility criteria for the grant program to require individuals to be a tenant of a residential property in the State, experiencing hardship or a job loss as a result of the COVID-19 pandemic and unable to make rental payments pursuant to the lease agreement, and whose household income is no more than 100% of the subject area median income during the preceding calendar year. Provides for the award of grants as direct payments to the eligible participant's landlord, with six requirements and limitations, including restricting application to one household member, requiring that the rental property must be the sole and primary residence of the eligible participant, and capping awards at $6,000 per eligible participant in the form of monthly direct payments which cannot exceed the lesser of 70% of the adjusted monthly gross household income of the eligible participant or $1,000, for no more than six months. Requires the Agency to provide grants to federally certified housing counseling agencies and State approved rehousing agencies to conduct intake and eligibility evaluations, coordinate grant administration and disbursement, and assess individuals' needs and provide referrals for financial assistance, legal services, or other housing stabilization services.

    Allows up to 20% of the appropriated funds to be used by the Agency to develop and administer the a utility assistance grant fund (utility fund). Establishes utility fund eligibility to include individuals who are a tenant or owner of a residential property in the State, are experiencing hardship or a job loss as a result of the COVID-19 pandemic and unable to make utility payments, and whose household income is no more than 80% of the subject area median income during the preceding calendar year. Provides for utility fund awards in the form of direct payments to the utility providers, subject to six requirements and limitations, including restricting application to one household members, requiring the subject property to be the sole and primary residence of the eligible participant, and capping awards at $1,800 per eligible participant in the form of monthly direct utility payments up to $150 or $300 depending on household income.

    Exempts the Agency from the rulemaking requirements of Article 2A of GS Chapter 150B for the adoption of procedures for the grant program and the utility fund.

    Directs the Agency to report to the specified NCGA committee and division by January 1, 2021, as specified, including on a summary of applications, grants awarded and denied, and general demand of the grant program.