HUD Secretary Announces Disaster Assistance For Greensburg, Kansas Tornado Victims

Temporary housing and foreclosure protection offered to displaced families

May 7, 2007 -- WASHINGTON - U.S. Housing and Urban Development Secretary Alphonso Jackson today announced HUD will speed federal disaster assistance to tornado-ravaged Kiowa County, Kansas and provide support to homeowners and low-income renters forced from their homes following last week's devastating storms.

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Yesterday, President Bush declared Kiowa County, Kansas a federal disaster area. This presidential declaration triggers a variety of federal assistance including grants for temporary housing and home repairs, low-cost loans to cover uninsured property losses, and other programs to help individuals and business owners recover from the effects of the disaster.

"The good people of Greensburg should know that HUD will do anything and everything it can to provide for their immediate as well as their long-term needs," said Jackson. "HUD will work closely with the State of Kansas to target available resources to the people and places that are in desperate need."

HUD is:

* Offering the State of Kansas the ability to re-allocate existing federal resources toward disaster relief - HUD's Community Development Block Grant (CDBG) and HOME programs give the State the flexibility to redirect millions of dollars to address critical needs, including housing and services for tornado victims. HUD is currently in discussions with State officials to waive certain requirements under HUD's CDBG and HOME programs to expedite the repair and replacement of damaged housing.

* Granting immediate foreclosure relief - HUD granted a 90-day moratorium on foreclosures and forbearance on foreclosures of Federal Housing Administration (FHA)-insured homes;

* Providing temporary housing and shelter - HUD will work with FEMA to identify vacant public housing and HUD-owned properties that can be used as temporary housing for those forced from their homes;

* 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;

* 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 are eligible for 100 percent financing, including closing costs; and

* 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.

For more information about these and other HUD programs designed to assist disaster victims, visit www.hud.gov/offices/cpd/communitydevelopment/programs/dri/

Source: HUD