Disaster Housing Assistance Scenarios  

Release Date: July 3, 2001
Release Number: 1379-52

» More Information on Texas Severe Storms & Flooding

Houston, TX -- The Federal Emergency Management Agency (FEMA) Disaster Housing Program is designed to provide affected individuals and families with a safe place to live, either through grants to make basic home repairs, or funds to pay rent for another place to live. The U. S. Small Business Administration (SBA) also provides low-interest, long-term loans to homeowners, renters and businesses of all sizes to assist in their recovery.

FEMA assistance alone cannot make disaster victims whole. Full recovery will depend on a partnership of local, state and federal agencies, community and volunteer organizations, and residents themselves.

What follows are hypothetical scenarios that illustrate the different kinds of assistance that might be made available to victims. In practice, each registration is reviewed on a case-by-case basis.

Those who live within declared counties and suffered disaster-related damages, physical damage or economic loss related to the flooding - including renters and business owners - should contact FEMA at 800-462-9029 (TTY 800-462-7585) to register for disaster aid.

Home damaged - Insurance
Suppose a homeowner had damage to her property but has flood insurance that covers all expenses necessary to make the residence habitable. During the few days that her home was uninhabitable, she was able to stay with friends. Because she has no uninsured emergency expenses, she does not need an emergency housing grant from FEMA. In order to qualify for additional assistance for remaining losses that were not covered by her insurance, she should register with FEMA. She may qualify for a low-interest loan from the U.S. Small Business Administration (SBA) to help restore her property to its pre-disaster condition.

Home damaged - No Insurance
Perhaps a homeowner has several thousand dollars in damage to his property but does not have flood insurance. Depending upon the level of damage, he may be eligible for a grant from FEMA to cover the necessary costs to make his home safe and livable or rental assistance to live temporarily at an alternate location. He also may qualify for a low-interest loan from the SBA to help restore his property to its pre-disaster condition. Note: Homeowners should start cleanup and repairs in the interest of health and safety. Save all receipts, along with photos or other documentation of damage.

Apartment damage
Suppose an apartment building is damaged, and the renters have to move out. Renters may be eligible for a grant from FEMA to cover two months of rent at a new location. Each case may be reviewed to see if the assistance should be extended beyond two months. Renters may also apply for a low-interest loan from SBA to repair or replace their damaged personal property. The owner of the business may not receive funds from FEMA to repair his property, since it is considered a business. However, he may qualify for a low-interest loan from SBA to cover leasehold improvements, machinery and equipment, inventory, and economic injury due to the disaster.

Home damage - no insurance - limited temporary housing options available
A family of four sustains severe damage to their home but does not have flood insurance. They stayed in a shelter immediately following the flood, then in a motel, and later with relatives, who are far away from the family's work and the children's child-care center. The repairs on their home will be extensive. After registering with FEMA, they apply for a low-interest SBA loan, which provides funds to repair their home to its pre-disaster condition. There are no suitable rental options in the area. They obtain a permit to begin rebuilding. As an interim solution, the family may be provided a trailer that is set up in their driveway, where utilities can be accessed from their home. They would live in the temporary trailer while their home is being repaired, an estimated three months.

Note: Only a small percentage of FEMA housing assistance is in the form of temporary travel trailer housing. This option is limited to serious cases that cannot be satisfied through the regular FEMA/state assistance programs.

Automobiles
If flooding damages a car and insurance does not cover the loss, the person may be eligible for a low-interest loan from the SBA to repair or replace her car. If she does not qualify for a SBA loan, she may be eligible for a state-administered Individual and Family Grant. If the damaged vehicle is the applicant's primary or essential vehicle, the applicant may qualify under the state Individual and Family Grant program to repair or assist in replacing the vehicle.

Last Modified: Friday, 17-Oct-2003 16:17:44