U.S. Housing and Urban Development (HUD) recently announced that it will speed up federal disaster assistance to the State of Texas and provide support to homeowners and low-income renters forced from their homes due to Hurricane Harvey.
“Today, our thoughts and prayers are with those who are beginning the process of recovering from Hurricane Harvey,” HUD Secretary Ben Carson said. “As FEMA begins to assess the damage and respond to the immediate needs of residents, HUD will be there to offer assistance and support the longer-term housing recovery efforts,” Carson added.
To date, President Trump issued a disaster declaration for Aransas, Bee, Brazoria, Calhoun, Chambers, Fort Bend, Galveston, Goliad, Harris, Jackson, Kleberg, Liberty, Matagorda, Nueces, Refugio, San Patricio, Victoria and Wharton counties in Texas. The declaration allows HUD to offer mortgage and foreclosure relief and other assistance to certain families living in impacted counties.
Toward that end, HUD is assisting Texas and local governments in re-allocating existing federal resources toward disaster relief. Specifically, HUD’s Community Development Block Grant (CDBG) and HOME programs give municipalities the flexibility to redirect millions of dollars in annual formula funding to address critical needs, including housing and services for disaster victims. HUD is working with state and local officials to explore streamlining the department’s CDBG and HOME programs to expedite the repair and replacement of damaged housing.
HUD is also granting a 90-day moratorium on foreclosures and forbearance on foreclosures of Federal Housing Administration (FHA)-insured home mortgages. There are approximately 200,000 FHA-insured homeowners living in the impacted counties.
HUD provides FHA insurance to disaster victims who have lost their homes and must rebuild or buy another home. Borrowers from participating FHA-approved lenders may be eligible for 100 percent financing. Further, HUD’s 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.
In addition, HUD will offer state and local governments federally guaranteed loans for housing rehabilitation, economic development, and repair of public infrastructure. The department will share information with FEMA and the state on housing providers that may have available units in the impacted counties.