HUD Archives: News Releases

HUD No. 01-044
Further Information:
In the Washington, DC area: 202/708-0685
Or contact your local HUD office
For Release
May 5, 2001


WASHINGTON - Working closely with the Federal Emergency Management Agency (FEMA), HUD announced today it will expedite federal assistance to flood-damaged communities in Iowa and provide support to homeowners and low-income renters who live in 13 affected counties.

"The flooding has caused human suffering in terms of loss of homes and businesses and dislocation of lives," HUD Secretary Mel Martinez said. "We're ready to help with the rebuilding process in any way we can."

President Bush on Wednesday declared Allamakee, Buchanan, Clayton, Clinton, Des Moines, Dubuque, Jackson, Lee, Louisa, Muscatine, Ringgold, Scott and Wapello counties in Iowa as federal disaster areas. Following the President's action, HUD will provide staff to Disaster Field Offices set up by FEMA to provide information on programs designed to meet the immediate housing needs of those whose homes have been damaged or destroyed.

HUD will:

  • Provide Temporary Housing and Shelter for Disaster Victims - 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 Regulatory and Administrative Relief for Disaster Victims - HUD will grant a 90-day moratorium on foreclosures and forbearance on foreclosures of Federal Housing Administration-insured homes, a move potentially affecting some 5,000 homeowners.

  • Modify the Mechanism for Community Development and Housing Assistance - HUD will permit communities to redirect 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 in disaster areas.

  • Provide Public Housing Reserve for Disasters and Emergencies - HUD will provide funding to public housing authorities to rehabilitate flood-damaged properties after FEMA financing and insurance proceeds have been allocated and disbursed.
  • Make Available Single-Family Home Mortgage Insurance - HUD's Section 203(h) program enables the FHA to insure mortgages to 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.
  • 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.

For more information about these and other HUD programs to assist disaster victims, visit HUD's web site.



Content Archived: March 26, 2010