March 31, 2010
HUD SECRETARY ANNOUNCES DISASTER ASSISTANCE FOR RHODE ISLAND STORM VICTIMS
Foreclosure protection offered to displaced families in four counties
WASHINGTON - U.S. Housing and Urban Development Secretary Shaun Donovan today announced HUD will speed federal disaster assistance to four counties in Rhode Island and provide support to homeowners and low-income renters forced from their homes following the ongoing severe storm and flooding this month.
On Monday, President Obama issued a disaster declaration for Kent, Newport, Providence and Washington Counties. The President's declaration allows HUD to offer foreclosure relief and other assistance to certain families living in
"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."
Offering the State of Rhode Island 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 flood 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
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. For
more information about these and other HUD programs designed to assist disaster victims, visit HUD's
HUD is the nation's housing agency committed to sustaining homeownership; creating affordable housing opportunities for low-income Americans; and supporting the homeless, elderly, people with disabilities and people living with AIDS. The Department also promotes economic and community development and enforces the nation's fair housing laws. More information about HUD and its programs is available on the Internet at www.hud.gov and espanol.hud.gov.