How Colorado homeowners still reeling from the COVID pandemic can apply for financial assistance

The clock is running out on millions in federal COVID mortgage assistance and 15 area governments and nonprofits are trying to get the money out the door.

Colorado received about $175 million from the American Rescue Plan Act to fund mortgage assistance in 2021. By the end of January, however, about $121 million remained unspent, so the Department of Local Affairs expanded its pilot program for distributing the money before a December 2024 deadline.

Aurora received $1.75 million to launch the Aurora Emergency Mortgage Assistance Program, which offers eligible homeowners $10,000 to $40,000 to help them remain in their homes.

“Aurora has always been known for being an affordable city. But we are experiencing an increase in housing prices, just like any other place in Colorado,” said Alicia Montoya, the city’s manager of housing and community development. “There aren’t a whole lot of resources for our homeownership community, and this is one, and so we absolutely jumped on it and want to make this money available.”

The issue has grown more urgent, some program managers said, as home prices continue to rise making it less likely that a homeowner who loses their house to foreclosure will be able to buy again in Colorado.

Until January, the state’s Emergency Mortgage Assistance Program was running a small pilot program in which four Colorado nonprofits were chosen to distribute funds. By Jan. 31, $19.9 million had been distributed, according to DOLA, leaving $121 million still available to be allocated. About $34 million of the total funding for the program is set aside for legal assistance to homeowners, homeownership counseling and program administration.

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Any Coloradan looking for emergency mortgage assistance should visit the Department of Local Affairs website to apply. Applications can be processed by any agency, no matter where the person seeking help lives in Colorado. 

People who receive funding can use it to help cover mortgage payments, homeowners association fees or liens, condominium association fees, utilities, delinquent property taxes and homeowner’s insurance premiums.

Applications from people facing a pending foreclosure are prioritized.

If an application is approved, the money is sent directly to the mortgage provider or lender. If an application is denied, applicants have 60 days to appeal.

Applications take about 30 days to process, Montoya said. It can take a mortgage lender up to 90 days to receive and process payment.

The program has helped restore hope and security to people across Colorado, said Miranda Minton, homeownership manager for Neighbor to Neighbor in Fort Collins, one of the organizations distributing the funds across the state.

“What we know is that housing comes first,” she said. “And if people feel threatened by losing their house, it’s very impactful to the entire family. What we’re hearing from people is that we’re saving their livelihood and their lives just by being able to secure their housing.”

Neighbor to Neighbor started with the program in November 2021, and since then has helped distribute about $6.5 million to more than 500 households, she said.

In February, alone, the organization distributed about $1 million to people who needed it. “I think the need is more than we know right now,” Minton said. “So I’m really excited to be a part of this and it makes my heart happy.”

La Puente Home Inc., in Alamosa, has assisted about 1,000 households and has distributed about $10.3 million since the pilot program started. 

The organization has about $7 million left to distribute and will soon request more money from the state when money dries up to help continue meeting people’s needs in the San Luis Valley, said Callie Adams, director of crisis prevention at La Puente Home.

The rise of foreclosure filings, and the rush for loan modifications to resolve large forbearance balances, shows how people are still affected by the pandemic, Minton said.

“A homeowner buys a home in order to build generational wealth, and it is an investment over time, and when that investment is interrupted by two years of not being able to work or leave your home or incur extra expenses, that economic effect goes far into the future, much farther than people think,” Adams said.

“I don’t think anyone realizes how bad the fallout is going to be,” she continued. “I don’t even think that we’ve seen the harshness of it yet.”

Melissa Richardson, who received assistance, told Neighbor to Neighbor she is thankful for the support.

“This assistance is going to provide the fresh start that we need to finally overcome the financial struggles that we were in for so long,” she told Neighbor to Neighbor in a written statement shared with The Colorado Sun.

Another person who submitted a comment to Neighbor to Neighbor anonymously said they were facing foreclosure. However, less than a month after submitting their application, it was approved with help from Neighbor to Neighbor. “I am so thankful my kids and I will be able to keep our home,” the person wrote.

MORE: For more information about the State’s Emergency Mortgage Assistance Program, visit www.MortgageHelpCO.org. For assistance with application status, email, dola_haf_client_support@state.co.us.