The government has launched a new initiative aimed at helping homeowners who owe more on their properties than their homes are worth.

As part of the program, which was first announced in March, the Federal Housing Administration (FHA) will allow lenders to provide “underwater” borrowers with refinanced loans backed by the government. Lenders are also required to forgive at least 10% of the original mortgage amount. As many as 1.5 million households are expected to benefit from the program. However, data provided by CoreLogic showed that as of June, 11 million homes have underwater mortgages.

The Obama administration reportedly injected $14 billion from the existing $75-billion mortgage assistance program into the initiative, which took effect last Tuesday. Officials said the funds will be used to provide incentive payments for lenders and coverage for losses from borrowers who have undergone the foreclosure process.

Borrowers who are updated on their mortgages, as well as those who have already received loan modifications through other government initiatives, are qualified to join the program. However, the program is limited only to borrowers who owe at least 15% more than their home’s current value.

Despite the high expectations for the program, government officials admitted that ensuring its success will be quite a challenge. FHA Commissioner David Stevens said that the initiative “requires significant coordination and operational execution by several parties to be successful.”

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