HUD No. 07-143
September 26, 2007
HUD SECRETARY ANNOUNCES DISASTER ASSISTANCE
FOR ILLINOIS FLOOD VICTIMS
Foreclosure protection offered to displaced families in Land of Lincoln
WASHINGTON - U.S. Housing and Urban Development Secretary Alphonso Jackson today announced HUD will speed federal disaster assistance to certain flood-ravaged counties in Illinois and provide support to homeowners and low-income renters forced from their homes following severe storms and flooding.
Yesterday, President Bush declared DeKalb, Grundy, Kane, LaSalle, Lake, and Will Counties a federal disaster area. This presidential declaration triggers a variety of federal assistance including grants for temporary housing and
home repairs, low-cost loans to cover uninsured property losses, and other programs to help individuals and
business owners recover from the effects of the disaster.
"Those who are forced from their homes due to these severe storms need to know that help is available," said Jackson. "Whether its foreclosure relief for FHA-insured families or helping these counties to rebuild, HUD stands
ready to help in any way we can."
- Offering the State of Illinois 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 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.
HUD is the nation's housing agency committed to increasing homeownership, particularly among minorities;
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 and espanol.hud.gov.