Hardest-hit fund will stop accepting new applications

The Nevada Affordable Housing Assistance Corp. announced Tuesday that the state’s hardest-hit fund is temporarily suspending origination of new applications.

With one of the highest foreclosure rates in the nation, Nevada was awarded more than $150 million in hardest-hit funds available to qualified homeowners.

The U.S. Treasury approved the nonprofit NAHAC, under the arm of the Nevada’s Housing Finance Agency, to oversee distribution of the fund.

Since the beginning of the year, the hardest-hit fund has had a significant increase in homeowners seeking assistance in keeping their homes, NAHAC acting director Elisabeth Daniels said.

For that reason, starting Friday, NAHAC will no longer accept new applications until further notice.

“Getting these funds to the homeowners presently in the application process is paramount,” Daniels said. “We did not want to overextend our commitment of funds without having allocated all of the funds currently requested.”

Daniels said the Treasury affirmed the decision to temporarily stop taking new applications so the nonprofit corporation could honor those applications already in the process.

As of third quarter, the fund has paid out more than $14.5 million for first mortgage reductions and more than $8.3 million for second mortgages.

Nearly 1,400 unemployed or underemployed Nevadans are receiving assistance from the fund.

As soon as all current applications have been decided and an accurate accounting of funds has been made, the hardest-hit fund will request additional resources from the Treasury and resume taking new applications, Daniels said.