HUD ANNOUNCES DISASTER ASSISTANCE FOR MINNESOTA

WASHINGTON - Working closely with the Federal Emergency Management Agency, HUD announced today it will expedite federal assistance to flood- and tornado-damaged communities in Minnesota and provide support to homeowners and low-income renters who live in 10 affected counties and on two Indian Reservations.

"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 yesterday declared Benton, Chippewa, Freeborn, Goodhue, Houston, St. Louis, Stevens, Wabasha, Washington, Winona, and Yellow Medicine counties, and the Tribal governments of Prairie Island and Upper Sioux, in Minnesota as federal disaster areas. The declaration covers damage from severe storms, tornadoes and flooding that struck the state beginning March 23. 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.

Working closely with the FEMA, HUD will:

• Provide Temporary Housing and Shelter - 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 Foreclosure Relief - HUD will grant a 90-day moratorium on foreclosures and forbearance on foreclosures of Federal Housing Administration-insured homes;
• Redirect and Accelerate Federal Block Grants - HUD will permit communities to divert 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;
• 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 exhausted;
• 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, including closing costs; 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.

In addition, HUD is providing technical assistance and guidance to tribes or tribally designated housing entities when obtaining assessment updates on how to utilize HUD funds to address immediate housing and community development needs. Potential options include amending any Indian Community Development Block Grant (ICDBG) funds, and submitting an application for ICDBG Imminent Threat Grants to address threats to health and safety.

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

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