Cook County launches $20M mortgage assistance program

Hope for more federal relief funds is running thin

Homeowners in suburban Cook County can apply for mortgage assistance starting Friday as part of another coronavirus recovery program funded by CARES Act money, but uncertainty remains on when more federal relief is coming.

The $20 million program will dole out payments of up to $10,000 directly to mortgage collectors, giving homeowners reprieve for one to three months on overdue or future payments, Cook County Board President Toni Preckwinkle announced at a Thursday news conference. The fund is estimated to help between 2,500 and 3,000 homeowners, with an average of about $7,800 per individual.

“We knowthat recovery will not happen overnight,” Preckwinkle said. “We will feel the effects of COVID-19 for years to come. Unfortunately, the pandemic remains far from over. … We must do whatever it takes to help people stay in their homes and keep their families safe.”

To be eligible, applicants must prove they underwent a COVID-19related financial hardship, made at most $127,400 before or after the hardship, incurred a mortgage arrearage after March 27 and have not received other CARES Act-funded mortgage assistance, according to the county’s website. Two groups will each be guaranteed 25% of the funds: those living in areas hit hardest by the pandemic, and those making under 80% of the median income.

Commissioner Alma Anaya, D- Chicago, said Cook County must absolutely not relive the horror of the 2008 housing crash, which she personally experienced.

“My family lost our home, our home that was full of memories, childhood memories,” Anaya said. “I know the devastation that can cause to working families when they lose their home, they lose the place where they’re used to going to after school or after work. So it’s extremely important that we do something about that beforewe get to the insecurity that will be happening for a lot of our families.”

The mortgage program aligns with a rental assistance fund the county rolled out in August. Ultimately, about 3,500 renters were awarded a grant, but at least a thousand more applied andwere not selected, Preckwinkle said.

In both announcements, officials stressed that Cook County will struggle withoutmore federal help.

“We absolutely, positively need another federal stimulus program,” Rich Monocchio, executive director of the Housing Authority of Cook County, said Thursday. “This county is doing so much in terms of homeownership and rental assistance. But we know that more is going to be needed.”

Echoing her demands from earlier this summer, Preckwinkle dinged Washington for being “nowhere near ready to approve” a second coronavirus stimulus bill thatwould include further unemployment benefits. She said the situation is particularly dire because across the U.S., local governments are looking to Washington for resources.

“It’s profoundly disappointing,” Preckwinkle had said Wednesday at an unrelated news conference. “We hope that there’ll be a change in leadership at the top of this country and more willingness to address the challenges that local units of government face.”