President Bush Declares Major Disaster
for Twelve Illinois Counties Hit by Tornadoes

The head of the Federal Emergency Management Agency (FEMA) announced on May 15, 2003 that President Bush has declared a major disaster for Illinois, opening the way for the use of federal disaster funds to help meet the recovery needs of families and businesses devastated by the string of violent tornadoes and other extreme weather that struck the state last week.

Michael D. Brown, FEMA (http://www.fema.gov/) Director and Under Secretary for the Emergency Preparedness and Response Directorate, a part of the Department of Homeland Security, said the President authorized the aid immediately after receiving FEMA's analysis of the state's expedited request for federal relief. The declaration covers damage to private property from severe storms, tornadoes and flooding that occurred over the period of May 6-11.

"President Bush acted quickly in ordering disaster aid for Illinois because he knows how destructive these storms have been," Brown said. "FEMA will be there to do whatever it takes to help get all those in need back on the road to recovery as fast as possible."

Following the declaration, Brown designated the following 12 counties eligible for aid to stricken residents and business owners: Adams, Alexander, Brown, Fulton, Hancock, Mason, Massac, Pope, Pulaski, Schuyler, Tazewell and Woodford.

Working closely with the FEMA, HUD will:

• Provide Temporary Housing and Shelter - HUD will work with FEMA to identify vacant public housing and HUD-owned homes that can be used as temporary housing for those forced from their homes;
  
• Grant Immediate Foreclosure Relief - HUD will grant a 90-day moratorium on foreclosures and forbearance on foreclosures of Federal Housing Administration-insured homes, a move potentially affecting nearly 3,000 homeowners;
  
• Redirect and Accelerate Federal Block Grants - HUD will permit communities to divert Community Development Block Grants (CDBG) and HOME funds for disaster recovery efforts;
  
• Provide Section 108 Loan Guarantees - HUD will permit state and local governments participating in the CDBG program to obtain federally guaranteed loans for housing rehabilitation, economic development and repair of public infrastructure;
  
• Provide Public Housing Reserve for Disasters and Emergencies - HUD will provide funding to public housing authorities to rehabilitate storm-damaged properties after FEMA financing and insurance proceeds have been exhausted;
  
• Make Available Single-Family Home Mortgage Insurance - HUD's Section 203(h) program enables the FHA to insure mortgages of disaster victims who have lost their homes and are in the process of rebuilding or buying another home. Borrowers are eligible for 100 percent financing, including closing costs; and,
  
• Make Available Programs for Damaged or Destroyed Properties - HUD's Section 203(k) loan program enables homebuyers and homeowners who have lost their homes to finance both the purchase and/or refinancing of a house and the cost of its rehabilitation through a single mortgage. It also allows homeowners who have damaged houses to finance the rehabilitation of their existing single-family home. This program encourages lenders to make mortgages available to borrowers who would not otherwise qualify for conventional loans on affordable terms and to residents of disadvantaged neighborhoods.