HUD ANNOUNCES DISASTER ASSISTANCE FOR STORM VICTIMS IN FOURTEEN IOWA COUNTIES
Temporary housing and foreclosure protection offered to displaced families

KANSAS CITY - Housing and Urban Development Regional Director Macie Houston today announced she would speed federal disaster assistance to fourteen Iowa counties and provide support to homeowners and low-income renters.

On May 25, 2004, President Bush declared Bremer, Buchanan, Butler, Cass, Cerro Gordo, Clayton, Delaware, Fayette, Hancock, Humboldt, Jones, Linn, Mitchell and Pocahontas counties as federal disaster areas. The declaration covers damage to private and public property affected by the recent severe storms, tornadoes and flooding.

"HUD is here to help the families whose homes have been damaged or destroyed," said Houston. "Working closely
with FEMA, the Small Business Administration and local officials, we want to give families the help they need to recover from this disaster."

HUD will:

• Grant immediate foreclosure relief - HUD will grant a 90-day moratorium on foreclosures and forbearance
  on foreclosures of Federal Housing Administration-insured homes;
  
  
• Provide temporary housing and shelter - HUD will work with FEMA to identify vacant public housing and HUD-owned properties that can be used as temporary housing for those forced from their homes;
  
  
• Offer 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;
  
  
• Make available mortgage insurance - 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;
  
  
• Make available insurance for both mortgages and rehabilitation - HUD's Section 203(k) loan program enables those who have lost their homes to finance both the purchase or refinancing of a house along with
  its repair or rebuilding through a single mortgage. It also allows homeowners who have damaged houses to finance the rehabilitation of their existing single-family home.
  
  
• Work with local governments to streamline re-allocating federal resources to disaster relief - HUD's Community Development Block Grant (CDBG) program gives local governments in Iowa the flexibility to redirect millions of dollars to address critical needs, including housing and services for storm victims.

For more information about these and other HUD programs designed to assist disaster victims, visit HUD's disaster relief website.

HUD is the nation's housing agency committed to increasing minority homeownership, creating affordable housing opportunities for low-income Americans, supporting the homeless, elderly, people with disabilities and people living with AIDS. The Department also promotes economic and community development as well as enforces the nation's
fair housing laws. More information about HUD and its programs is available on the Internet.

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