HUD SPEEDS DISASTER RELIEF TO FLOOD-RAVAGED ILLINOIS

WASHINGTON - The Department of Housing and Urban Development today announced it will expedite assistance to help communities, homeowners and low-income renters living in six flood-damaged counties in Illinois.

President Bush declared Carroll, Hancock, Henderson, Jo Daviess, Rock Island and Whiteside counties federal disaster areas after persistent flooding which began on April 18. HUD will provide staff to Disaster Field Offices set up by the Federal Emergency Management Agency (FEMA) to provide information on programs designed to meet the immediate housing needs of those whose homes have been damaged or destroyed.

"I know the residents of these communities along the Mississippi are anxious to begin the rebuilding process and HUD is ready to help in any way we can," said HUD Secretary Mel Martinez. "Together with other branches of the federal family we can help these communities fight back and be better than ever."

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, a move potentially affecting nearly 3,000 homeowners;
  
• 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.

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

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