$1B homeowner program mainly benefited 3 states

— -- A $1 billion federal program to help distressed homeowners in much of the country mainly helped people in just three states and very few in some others, government data show.

Almost half the homeowners aided by the Emergency Homeowners' Loan Program are in Pennsylvania, Maryland and Connecticut, based on preliminary figures from the Department of Housing and Urban Development.

As previously reported, the program closed to applicants on Sept. 30 with more than half of its $1 billion unspent. Leftover funds return to the U.S. Treasury.

Fewer than 12,000 applicants were approved before the program expired, short of the 30,000 target.

Funds were allotted for 32 states and Puerto Rico based on population and unemployment.

Not only was much money unspent, but what was spent exceeded targets in some states and was well below them in others.

•Pennsylvania, Maryland and Connecticut were initially allotted $179 million, but received $46 million more because they used up their initial funds, HUD spokesman Brian Sullivan says.

HUD allowed those states, along with Delaware and Idaho, to run their own programs because they already had similar ones. HUD ran the program for the other states and contracted with housing counseling agencies to process applicants.

•HUD initially expected almost 22,000 homeowners to get help in the other 27 states and Puerto Rico. Only 27% of that goal was reached, preliminary numbers show.

Puerto Rico fared best. With funds to help 652 homeowners, it got 468 preliminary approvals, or 72%. South Dakota hit 52% of its maximum allocation.

•In five states — Utah, Iowa, Arkansas, Missouri and North Dakota— less than 10% of the expected number of homeowners received preliminary approvals. North Dakota's allocation allowed for 43 borrowers to get help; just four got preliminary approvals.

•New York state has 458 preliminary approvals — 17% of its maximum allocation for 2,633 loans. Its total will likely go up because a data transmission problem delayed some applications there, Sullivan says.

The program provides up to $50,000 in no-interest loans, which are forgiven if recipients stay in their homes five years.

HUD is closing loans now. Final numbers are expected by Jan. 1.