HUD ANNOUNCES MILLIONS
WASHINGTON - HUD Secretary Andrew Cuomo today announced that
the Department has freed up $10 million in assistance for
individuals living in 66 counties of North Dakota hit hard by the
recent floods that have ravaged the upper midwest.
IN DISASTER ASSISTANCE
NORTH DAKOTA, SOUTH DAKOTA AND MINNESOTA
In announcing the aid, Cuomo authorized the waiver of
regulations governing already allocated Community Development
Block Grant (CDBG) and HOME Investment Partnership Program funds,
allowing the state of North Dakota to use the money to rebuild
"With the massive destruction of property and the temporary
loss of jobs caused by the floods, thousands of individuals will
experience severe economic and personal hardships," said Cuomo.
"The easing of the guidelines that determine how CDBG and HOME
funds are to be used, as well as the leeway we're granting to
FHA-insured mortgage lenders, will help facilitate the recovery
process in a meaningful way."
With the waivers, local officials will be able to use
community development grants for new housing construction, the
repair or construction of buildings used for the general conduct
of government, and the modification of certain relocation
Regulations suspended under the HOME program include those
pertaining to tenant-based rental assistance, matching
contribution requirements, maximum per-unit subsidy requirements,
and property standards.
The Federal Housing Administration, the government-owned
mortgage insurer that is a part of HUD, is making allowances to
mitigate the hardships faced by individuals residing in the
presidentially declared disaster areas of North Dakota, South
Dakota and Minnesota.
A special FHA mortgage program enables eligible buyers to
finance 100 percent of the cost of purchasing a home, including
closing fees, within one year of the disaster declaration, and
requires no downpayment.
In addition, there is an immediate 90-day moratorium on the
foreclosure of all FHA-insured mortgages on properties in flood-
damaged areas, and lenders are being strongly urged to provide
forbearance on FHA-insured home mortgage loans, including
refinancing, reamortization and the waiver of late fees.
Similarly, the Government National Mortgage Association,
another entity within HUD, is encouraging all single-family,
multifamily, and manufactured housing security issuers to provide
as much forbearance as possible to homeowners in North Dakota,
South Dakota and Minnesota who cannot make their mortgage
In return for their cooperation, Ginnie Mae will make the
lenders' payments to the holders of those Ginnie Mae securities
through June 1997 if more than five percent of the lenders' loan
portfolio is in the affected areas.
"Collectively, the Department is committed to doing all it
can to help the families whose lives have been interrupted by the
events that have taken place," Cuomo said. "Special programs
can't erase the pain and suffering these families have
experienced, but they can play an essential role in rebuilding
strong, vibrant communities."
Content Archived: January 20, 2009