The following statement was issued by Brian A. Hudson, Sr., Executive Director of the Pennsylvania Housing Finance Agency on June 30, 2011:

The HEMAP Program has received an appropriation of $2 million in the State Budget for the upcoming fiscal year (2011/2012). The Agency has determined that this is insufficient for continued operation of the Program. The "Notice of Unavailability of Funds” (attached) published in The Pennsylvania Bulletin on May 28, 2011 is in effect. As set forth in the Notice, and in accordance with Act 91, PHFA will be unable to approve any more loans under the HEMAP Program effective July 1, 2011. In addition, the program may be unable to fund any additional approved applications still in the pipeline and not yet closed due to the lack of funds.

Lenders and counseling agencies are reminded that PHFA has funds available under the federal Emergency Homeowners Loan Program (EHLP) and we encourage application to this program. Any new applications for mortgage assistance should be completed as an EHLP application. All HEMAP files outstanding and in process at the counseling agencies should be submitted to PHFA within the normal 30 day time frame. These applications will be reviewed for possible EHLP eligibility.

Lenders and servicers are reminded that Act 91 requires compliance with the Act 91 Notice prior to instituting a foreclosure action in accordance with Section 409-C. The attached Notice provided notice about the insufficiency of funding. The Agency will be publishing a supplemental notice in the Pa Bulletin to confirm the date certain, which is 90 days after publication of the Notice, (August 27, 2011) after which mortgagees may take legal action to enforce a mortgage without any additional restriction or requirement under Act 91.

Additional information will be available here from time to time and we encourage all consumers, lenders, servicers, counseling agencies and interested parties to continuously monitor this website for guidance and updates.

We continue to urge lenders and servicers to provide an opportunity to their mortgagors to apply for EHLP assistance. PHFA expects to have funds available to fund qualified EHLP applicants through September 2011.