U.S. Housing and Urban Development Secretary Steve Preston yesterday announced HUD will speed federal disaster assistance to dozens of counties and parishes in Texas and Louisiana following Hurricane Ike. This assistance will support homeowners and low-income renters and includes foreclosure relief for families whose homes are insured through HUD's Federal Housing Administration (FHA).

"Hurricane Ike cut a wide path across Louisiana and Texas, and possibly uprooted many families," said Preston. "FHA's foreclosure moratorium will give these families the breathing room they need to put their lives back together without worrying about the prospect of losing their homes."

Hurricane Ike brought with it 100 mph winds and up to 16 inches of rain, enough to put most of Galveston underwater. And up to 140,000 people ignore evacuation orders.

In addition to the assistance, HUD is:

• Offering states and local 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 the flexibility to redirect millions of dollars to address critical needs, including housing and services for tornado victims. HUD is currently contacting State and local officials to explore their needs for streamlining the Department's CDBG and HOME programs in order to expedite the repair and replacement of damaged housing;

• 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 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.

Published: September 16, 2008

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