(The Center Square) – Maine is rolling out a new $50 million program to buoy homeowners struggling with mortgage payments, utility bills and other expenses amid record high inflation.

The new Homeowner Assistance Fund, which is backed with federal American Rescue Plan Act funds, authorizes the Maine Bureau of Consumer Credit Protection to provide direct relief to homeowners at risk of foreclosure and other hardships created by the COVID-19 pandemic.

Gov. Janet Mills said the program will provide support for Mainers to pay their mortgage, utilities, property taxes "and other expenses that can help get them through this tough time."

"The pandemic has been hard for a lot of Maine people, stretching wallets thinner and forcing hard-working folks to reach deeper in their pockets to make ends meet," she said.

To be eligible, homeowners must demonstrate a pandemic-related hardship, meet income limits and own and occupy a one- to four-unit dwelling in Maine, according to the Mills administration.

Under the program, homeowners can apply for up to $25,000 in mortgage benefits, including up to $15,000 in property tax assistance and $10,000 in utility payment relief.

Maximum benefits under all aspects of the program cannot exceed $25,000 per household, according to the Mills administration.

Payments will be made on behalf of homeowners directly to creditors including mortgage servicers, municipalities, or utility companies, officials said.

Maine received more than $4.5 billion from the ARPA relief package, including money for businesses and direct payments to residents and funding for local governments.

The Mills administration has rolled out similar relief programs using ARPA funds and targeting other industries including health care, child care and the state's farming sector.

Members of the state's congressional delegation who pushed for the ARPA funding praised the creation of the homeowner relief program.

"The American Rescue Plan was designed to help families and communities recover from the lingering impacts of the COVID-19 pandemic, and this program displays how the legislation is continuing to deliver on those goals," said Sen. Angus King, I-Maine.

Rep. Chellie Pingree, D-Maine, said the relief means qualifying homeowners in Maine "won’t have to choose between buying groceries or gas and paying their electric bills or mortgage."