[StBernard] HUD Secretary announces disaster assistance for La. storm victims

[Westley Annis]

HUD Secretary announces disaster assistance for La. storm victims
Posted: Aug 30, 2012 3:58 PM by Melissa Canone

WASHINGTON - U.S. Housing and Urban Development Secretary Shaun Donovan
today announced HUD will speed federal disaster assistance to the State of
Louisiana and provide support to homeowners and low-income renters forced
from their homes due to Hurricane Isaac.

Yesterday, President Obama issued a disaster declaration for Acadia, Allen,
Ascension, Assumption, Avoyelles, Cameron, East Baton Rouge, East Feliciana,
Franklin, Iberia, Iberville, Jefferson, Jefferson Davis, Lafourche,
Livingston, Morehouse, Natchitoches, Orleans, Ouachita, Plaquemines, Pointe
Coupee, Rapides, St. Bernard, St. Charles, St. Helena, St. James, St. John
the Baptist, St. Martin, St. Mary, St. Tammany, Tangipahoa, Terrebonne,
Vermilion, Washington, and West Baton Rouge Parishes. The President's
declaration allows HUD to offer foreclosure relief and other assistance to
certain families living in these counties.

"Families who may have been forced from their homes need to know that help
is available to begin the rebuilding process," said Donovan. "Whether it's
foreclosure relief for FHA-insured families or helping these counties to
recover, HUD stands ready to help in any way we can."

HUD is:

Offering the State of Louisiana and other entitlement communities the
ability to re-allocate existing federal resources toward disaster relief -
HUD's Community Development Block Grant (CDBG) and HOME programs give the
State and communities the flexibility to redirect millions of dollars to
address critical needs, including housing and services for disaster victims.
HUD is currently contacting State and local officials to explore
streamlining the Department's CDBG and HOME programs in order to expedite
the repair and replacement of damaged housing;

Granting immediate foreclosure relief - HUD granted a 90-day moratorium on
foreclosures and forbearance on foreclosures of Federal Housing
Administration (FHA)-insured home mortgages;

Making mortgage insurance available - HUD's Section 203(h) program provides
FHA insurance to disaster victims who have lost their homes and are facing
the daunting task of rebuilding or buying another home. Borrowers from
participating FHA-approved lenders are eligible for 100 percent financing,
including closing costs;

Making insurance available for both mortgages and home rehabilitation -
HUD's Section 203(k) loan program enables those who have lost their homes to
finance the purchase or refinance of a house along with its repair through a
single mortgage. It also allows homeowners who have damaged houses to
finance the rehabilitation of their existing single-family home; and

Offering Section 108 loan guarantee assistance - HUD will offer state and
local governments federally guaranteed loans for housing rehabilitation,
economic development and repair of public infrastructure.

Information on housing providers and HUD programs -The Department will share
information with FEMA and the State on housing providers that may have
available units in the impacted counties. This includes Public Housing
Agencies and Multi-Family owners. The Department will also connect FEMA and
the State to subject matter experts to provide information on HUD programs
and providers.