October 30, 2012
U.S. Department of Housing and Urban Development
U.S. Housing and Urban Development Secretary Shaun Donovan today announced HUD will speed federal disaster assistance to New York State and New Jersey, providing support to homeowners and low-income renters forced from their homes due to Hurricane Sandy.
Today, President Obama issued a disaster declaration for Bronx, Kings, Nassau, New York, Richmond, Suffolk, and Queens counties in New York. The President also issued a disaster declaration for Atlantic, Cape May, Essex, Hudson, Middlesex, Monmouth, Ocean and Union Counties in New Jersey. These declarations allow HUD to offer foreclosure relief and other assistance to certain families living in these counties.
“Families who may have been forced from their homes need to know that help is available to begin the rebuilding process,” said Donovan. “Whether it’s foreclosure relief for families with FHA-insured loans or helping these counties to recover, HUD stands ready to help in any way we can.”
Ø Granting immediate foreclosure relief
– HUD granted a 90-day moratorium on foreclosures and forbearance on foreclosures of Federal Housing Administration (FHA)-insured home mortgages;
Ø Making mortgage insurance available
– HUD's Section 203(h) program provides FHA insurance to disaster victims who have lost their homes and are facing the daunting task of rebuilding or buying another home. Borrowers from participating FHA-approved lenders are eligible for 100 percent financing, including closing costs;
Ø Making insurance available for both mortgages and home rehabilitation
– HUD's Section 203(k) loan program enables those who have lost their homes to finance the purchase or refinance of a house along with its repair through a single mortgage. It also allows homeowners who have damaged houses to finance the rehabilitation of their existing single-family home; and
Ø Information on housing providers and HUD programs -The Department will share information with FEMA and the State on housing providers that may have available units in the impacted counties. This includes Public Housing Agencies and Multi-Family owners. The Department will also connect FEMA and the State to subject matter experts to provide information on HUD programs and providers.