WALLINGFORD, CT – May 17, 2010 – (RealEstateRama) — As a result of March’s severe storms and flooding, help is available to support the state of Connecticut and its homeowners and low-income renters, according to U.S. Housing and Urban Development (HUD) officials.
The federal disaster declaration on April 23 for Fairfield, Middlesex and New London Counties allows HUD to offer foreclosure relief and other assistance to certain residents living in these counties.
- Offering the State of Connecticut the ability to re-allocate existing federal resources toward disaster relief – HUD’s Community Development Block Grant (CDBG) and the Home Investment Partnerships Program, known as the HOME program, give the state the flexibility to redirect millions of dollars to address critical needs, including housing and services for homeowners and low-income renters who are flood victims. HUD is currently contacting state and local officials to explore streamlining the Department’s CDBG and HOME programs in order to expedite the repair and replacement of damaged housing;
- Granting immediate foreclosure relief – HUD granted a 90-day moratorium beginning April 23 on foreclosures and forbearance on foreclosures of Federal Housing Administration (FHA)-insured home mortgages;
- 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;
- 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 refinancing 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
- Offering Section 108 loan guarantee assistance – HUD will offer state and local governments 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.
FEMA’s mission is to support our citizens and first responders and to ensure that as a nation we work together to build, sustain, and improve our capability to prepare for, protect against, respond to, recover from, and mitigate all hazards.