HUD ANNOUNCES DISASTER ASSISTANCE FOR VIRGINIA IN AFTERMATH OF GASTON
President Bush's Declaration Covers Colonial Heights, Hopewell, Petersburg, Richmond and Chesterfield, Dinwiddie, Hanover, Henrico and Prince George Counties

RICHMOND - Housing and Urban Development Secretary Alphonso Jackson today announced that he has directed
all Single Family FHA-approved lenders to provide relief to families with FHA insured mortgages affected by Tropical Storm Gaston.

The assistance is available as a result of President Bush's disaster declaration on Friday, September 3rd, covering
the cities of Colonial Heights, Hopewell, Petersburg and Richmond and Chesterfield, Dinwiddie, Hanover, Henrico and Prince George counties.

The relief includes a special 90-day moratorium on Single Family foreclosures. Jackson is also encouraging other,
non-FHA lenders to undertake actions such as mortgage modification, refinancing, and waiver of late charges.
There are some 36,000 active FHA-insured mortgages in the Richmond metropolitan area with a total dollar value
of $3.2 billion.

In addition, HUD announced it will expedite the use of federal assistance in damaged communities and provide
support to homeowners and low-income renters who live in the 25 affected counties.

"Nothing can erase the suffering that Virginia families have experienced in the wake of Gaston," Secretary Jackson said. "Fortunately, we have several flexible tools that will help speed disaster recovery efforts in the affected communities. We stand ready to help with the rebuilding process in any way we can."

HUD will also:

• Grant Immediate Foreclosure Relief - HUD will grant a 90-day moratorium on foreclosures and forbearance on foreclosures of Federal Housing Administration-insured homes;
  
  
• 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; 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.
  
  
• Provide Temporary Housing and Shelter - HUD will work with FEMA to identify vacant multi-family housing,
  public housing units and HUD-owned homes that can be used as temporary housing for those forced from
  their homes;
  
  
• Reprogram and Accelerate Federal Block Grants - HUD will permit communities to redistribute 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;

For more information about these and other HUD programs designed to assist disaster victims, visit HUD's website
at www.hud.gov/disarelf.cfm.

In addition, the Virginia Department of Emergency Management and the Federal Emergency Management Agency
have opened a Disaster Recovery Center at 730 East Broad Street, 2nd Floor, in downtown Richmond. It will be
open from 10 a.m. to 7 p.m., Monday through Saturday, and from Noon to 5 p.m. on Sunday to provide information about and application assistance for disaster aid.

Assistance also is available from these agencies by calling 1-800-621-FEMA (3362) or, for the hearing- or speech-impaired, at (TTY) 1-800-462-7585.

###