HUD Archives: News Releases

Kristine Foye
(617) 994-8218

For Release
May 26, 2006


Today, U.S. Department of Housing and Urban Development announced a number of resources it is making available
in areas affected by the flooding in New England.

President Bush declared parts of Massachusetts, New Hampshire, and Maine federal disaster areas on May 25, 2006, which puts into motion federal recovery programs designed to help those affected.

"As soon as the President issued the disaster declaration, we took immediate action to protect FHA mortgage
holders in the affected areas," said Taylor Caswell, HUD regional director."We also are giving municipalities the flexibility to use their HUD funding to address immediate needs."

The Federal Housing Administration (FHA) is the arm of HUD that insures mortgages against default. The resources also include enabling states and local communities to access HUD funds for recovery efforts.

FHA-Insured Mortgages of Single Family Homes

  • Delinquent Mortgages. On a case-by-case basis, HUD will forbear mortgages that are delinquent. This policy applies if the homeowner becomes delinquent as a result of temporary disruptions in employment due to the disaster. For more information mortgage holders can call 1-800-CALL-FHA.
  • Moratorium on Foreclosures. HUD is directing mortgage lenders to delay foreclosure in federally declared disaster areas for a period of 90 days from the date the President declared the disaster. The moratorium
    applies to the initiation of foreclosures and foreclosures already in progress. Homeowners who find themselves
    in this situation can call 1-800-CALL-FHA for assistance.
  • Servicing Actions. In addition to the moratorium, HUD strongly recommends lenders take actions to protect homeowners whose properties were directly affected. These include mortgage modification, refinancing, and waiver of late fees. For more information, call 1-800-CALL-FHA.
  • Financing Home Rehabilitation. HUD's Section 203(k) program enables homeowners who have damaged houses to refinance existing debt to make needed repairs to their homes.
  • Mortgage Insurance for Disaster Victims. HUD has a special mortgage insurance program, Section 203(h),
    to assist disaster victims. The program allows people whose residences were destroyed or damaged to such
    an extent that reconstruction or replacement is necessary to be eligible for 100 percent financing for a new home. For more information, call 1-800-CALL-FHA.

Community Planning and Development Funding (awarded to states and municipalities)

  • Redirecting HUD Grants. Community Development Block Grant, HOME, and Emergency Shelter Grant
    recipients may redirect previously awarded funding to disaster recovery activities. Grantees should contact
    their local HUD office for guidance and approval.

Public Housing

  • HUD is in the process of working with housing authorities to assess damage and to identify funding sources
    for needed repairs.

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


Content Archived: March 17, 2011