H.R. 836 - Emergency Homeowner Relief Program Termination Act
Posted by on April 13, 2011

H.R. 836, introduced by Rep. Jeb Hensarling on February 28, 2011, ends HUD’s Emergency Homeowners Relief Program and prevents $1 billion from being spent on this program that increases struggling homeowners’ debts. 


The Dodd-Frank Act established a $1 billion HUD Emergency Homeowner Relief Program, which provides loans or credit advances to unemployed borrowers who cannot pay their mortgages because of unemployment or reduction in income.  Payments under the program may be provided for 12 months, with a possible 12-month extension. The Obama Administration, in its FY 2012 budget proposal, estimates the program to have a 98 percent subsidy rate.  This means for every $1 spent on this Federal program, the taxpayers will lose 98 cents. The program was initially authorized in 1975 and was never funded during its 35 year history.