COEUR d'ALENE - A program is under development to provide emergency mortgage relief to underemployed or unemployed homeowners at risk of foreclosure, according to the U.S. Department of Housing and Urban Development.

Homeowners can receive 24 months of mortgage relief payments or assistance up to $50,000.

Federal legislation reforming Wall Street and providing consumer protection, sponsored by Democratic lawmakers, set aside $1 billion to HUD to implement what is being called the Emergency Homeowners' Loan Program.

"I get calls every week from people saying they can't make their mortgage payments," said Ela Conner, a mortgage loan originator in the real estate department at Mountain West Bank, where she helps people refinance mortgages and buy homes.

The program is being designed to prevent widespread mortgage foreclosures and distress sales of homes.

"This seems like it's one of the better programs out there," Conner said. "It doesn't just look like a handout. It would be nice to have people get this help so we can stop the bleeding."

Susan Semba, the Idaho Housing and Finance Association's vice president of homeownership lending, said the money homeowners get through the program would be "forgiven" over five years at 20 percent per year.

To be eligible, homeowners must have experienced a substantial reduction in income due to involuntary but temporary unemployment or underemployment resulting from adverse economic or medical conditions.

The homeowner must have income equal to, or less than, 120 percent of the area median income, prior to the adverse conditions. For Kootenai County, 120 percent of area median income is $68,400.

The homeowner must have current income that is at least 15 percent lower than they had prior to adverse conditions.

The homeowner also must certify foreclosure is probable at the time he or she applies for the mortgage relief payments. The homeowner must show they're going to be able to resume payments of mortgage obligations when he or she regains full employment.

Also, it must be the homeowner's principal residence, and be a single-family residence, condominium, cooperative or manufactured home.

There are several other conditions for receiving the mortgage relief payments.

The emergency mortgage relief payments will terminate if the homeowner's income increases to more than 85 percent of what it was before any adverse economic or medical conditions, or they sell the mortgage property or refinance for cash out.

Further information: HUD at (202) 708-0317.