In just two and a half months, more than 17,000 Michigan homeowners have asked the state for help paying their mortgage, property taxes, utilities or other fees because of hardships created during the pandemic.

The Michigan Homeowner Assistance Fund, or MIHAF, was immediately more popular than Mary Townley expected. Townley, the director of homeownership for the Michigan State Housing Development Authority, said within a week of the Feb. 14 portal opening for applications, close to 9,000 people had asked for help.

“I knew there was a problem in Michigan, but I didn’t realize it was such a big problem,” she said.

More than $121 million was made available for grants of up to $25,000 for people who were at risk of losing their homes because of the ill effects of the coronavirus pandemic, such as a decrease in income or an increase in living expenses. The grants are limited to families that make no more than 150 percent of the federal area median income, or $134,250 for a family of four.

So far, the process of sifting through applications has been slow going, with more than 2,200 completed and just 812 approved as of Friday afternoon. But Townley said more staff begins this week, bringing the number of workers to 60 and ensuring the applications will be processed faster.

And while there are nearly 13,000 applications that are still under review, an additional 2,126 households have been approved for funds, and are just waiting for banks or others to indicate that they’ll accept the money.

Townley said the high proportion of requests that are being canceled — nearly half of the completed applications — indicates that lenders are being flexible with homeowners and creating their own payment plans and workarounds, so the state money isn’t necessary. It’s a good thing, she said, as it allows the money to be used in cases where residents have no other options. Other times, cancellations occur if there are duplicate applications or if a homeowner can’t be reached.

On average, homeowners are getting $8,066 in assistance. Mortgage help is the number one request, followed by help paying property taxes and utilities. Others have requested assistance paying for homes purchased on a land contract or for mobile home loans. Condo fees, home insurance and mobile home park fees are also eligible expenditures for the program.

Shama Mounzer, the integration executive director with the Wayne Metropolitan Community Action Agency, said previously the program’s inclusion of delinquent home insurance, mobile home payments, land contracts and other fees that are usually excluded means the program is likely to reach more residents.

“It’s another group of people we were unable to reach in the past,” she said.

The funds must be used by September 2026, but Townley said she expects them to be depleted by the middle of 2024.

“People are struggling,” she said.

The fund will pay property taxes going back to 2019, something Towley said she argued for, even though the pandemic was not recognized until 2020.

She said homeowners “had great intentions” to pay their 2019 bills, but were unable to after losing jobs or having other expenses at the start of 2020. The state’s treasury department, she said, agreed.

The bulk of those who receive grants from the state make less than 100 percent of the area median income, and Townley said many have been grateful for the help. One couple, she said, had gone through all their savings and weren’t sure they would be able to stay in their home. With the state aid, she said, they have been able to.

“They’re fine now,” she said. “For a while there, they didn’t think that they were fine at all. It’s wonderful that we have this program.”

For more information or to apply to the program, visit mi.gov/mihaf, call (844) 756-4423 or visit a state housing counseling office.