The Housing Finance Agency Innovation Fund for the Hardest Hit Housing Markets was established in February 2010 through the Dodd-Frank Wall Street Reform and Consumer Protection Act . The program was to be funded with $7.6 billion intended to reduce mortgage principal on negative-equity properties, provide assistance for unemployed or under-employed borrowers and help eliminate second liens as well as cover costs for delinquent payments, short sales and deeds-in-lieu of foreclosure. But a report from the Office of the Special Inspector General for the Troubled Asset Relief Program found that only 3 percent of the funds have been distributed as of Jan. 1. California has only used 2 percent of the $2 billion allocated for the Golden State, though New Jersey’s 0.1 percent usage rate was the lowest of any state. Oregon’s 16 percent was the highest utilization rate.
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