Earlier this week, HUD announced that the Department will expedite federal disaster assistance to the State of Texas and provide support to homeowners and low-income renters that are left without a home due to Hurricane Harvey.
Currently, President Trump has issued a disaster declaration for 18 counties in Texas: Aransas, Bee, Brazoria, Calhoun, Chambers, Fort Bend, Galveston, Goliad, Harris, Jackson, Kleberg, Liberty, Matagorda, Nueces, Refugio, San Patricio, Victoria and Wharton. More counties may be added at a later date.
HUD’s disaster assistance will include:
- Reallocating existing federal resources toward disaster relief– HUD is currently contacting State and local officials to explore streamlining the Department’s Development Block Grant (CDBG) and HOME programs in order to expedite the repair and replacement of damaged housing;
- Granting immediate foreclosure relief– HUD is granting a 90-day moratorium on foreclosures and forbearance on foreclosures of Federal Housing Administration (FHA)-insured home mortgages. There are approximately 200,000 FHA-insured homeowners living in these impacted counties;
- 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 may be eligible for 100 percent financing;
- 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
- 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.
- 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.
Also earlier this week, the Internal Revenue Service (IRS) announced that Hurricane Harvey storm victims located in disaster declared counties will have until January 31, 2018 to file certain individual and business tax returns and make certain tax payments. According to Novogradac, Rev. Proc. 2014-49 provides temporary relief from certain requirements of Internal Revenue Code (IRC) Section 42 for agencies and owners of low-income housing tax credit (LIHTC) properties.
NAHRO’s thoughts are with all those impacted by Hurricane Harvey. We offer whatever help we can provide to all impacted affordable housing and community development organizations and their residents during this difficult time. We have also reached out to affected public housing authorities with information and resources, and are working on additional support.