Arizona is using taxpayer money to cover mortgages for people who can’t afford homes, and it’s part of a nationwide scheme. This program, in effect since 2021, has paid over $9.9 billion to help struggling homeowners across the U.S. But what does this mean for the average American taxpayer? Arizona alone has secured nearly $200 million from the U.S. Treasury under the Homeowner Assistance Fund (HAF), and the state is using it to prop up its housing market.
The HAF funding isn’t just a lifeline for delinquent homeowners—it’s turning into free money. That’s right. Arizona’s program has transformed these federal funds into grants, meaning people don’t have to pay them back. So, who’s footing the bill? The taxpayers. And it’s not just helping homeowners; it’s also inflating housing prices across the state.
Here’s a breakdown of where Arizona’s $200 million is going:
$11.65 million for a vendor/application system
$1.17 million for housing department staff
$2 million for housing counseling contracts
$869,000 for community engagement
$111.2 million for mortgage reinstatement
$29.8 million for mortgage payment assistance
$9 million for delinquent property taxes
And the list goes on.
This program isn’t just about saving homes from foreclosure. It’s helping with everything from utility payments to HOA fees. So, who’s really benefiting here? The state has prioritized homeowners who earn less than the area’s median income and those who have suffered racial or ethnic prejudice. But don’t think that’s all. If you’re struggling in one of the U.S. territories, a majority-minority Census tract, or even on an Indian reservation, you might also qualify.
But this isn’t just about the struggling masses. The state’s funding is going toward helping people with first mortgages, reverse mortgages, even second mortgages and loans secured by manufactured housing. It’s a blanket solution that benefits anyone who can tap into the funds, regardless of their financial situation.
While this sounds like a generous initiative, there’s a catch. This system isn’t doing anything to address the bigger issue of unaffordable housing. Instead, it’s just kicking the can down the road. The idea of bailing out people who can’t afford their homes may only end up driving housing prices higher, making it even harder for working-class Americans to afford a home.
The bottom line? Arizona is using taxpayer dollars to cover the mortgage payments of those who shouldn’t even be in homes they can’t afford. This is just another example of government overreach that ultimately harms the very people it claims to help. The federal government is bailing out homeowners, but it’s the American taxpayer who will feel the long-term consequences.
Sources:
https://x.com/jeff4liberty247/status/1901839156629881244
https://x.com/AnnaEconomist/status/1902059428678902117
https://home.treasury.gov/system/files/136/HAFP-0106-Arizona-Grantee-Plan.pdf
