The U.S. Department of Housing and Urban Development (HUD) has announced the implementation of federal disaster assistance for the state of Iowa, ordering Federal assistance to State, tribal, and local recovery efforts in areas affected by severe storms and tornadoes from April 26 to April 27, 2024.
President Biden issued a major disaster declaration in the counties of Clarke, Harrison, Mills, Polk, Pottawattamie, Ringgold, Shelby, and Union. In response to this declaration, HUD has initiated several measures effective immediately.
Firstly, HUD is providing a 90-day moratorium on foreclosures of mortgages insured by the Federal Housing Administration (FHA), as well as foreclosures of mortgages to Native American borrowers guaranteed under the Section 184 Indian Home Loan Guarantee program. A 90-day extension has also been granted automatically for Home Equity Conversion Mortgages. These measures are effective as of the President’s disaster declaration date.
Homeowners affected by the disaster are advised to contact their mortgage or loan servicer immediately for assistance. Conventional mortgage holders may also be eligible for additional relief through their mortgage holder.
In addition to these measures, HUD is making mortgage insurance available through its Section 203(h) program which provides FHA insurance to disaster victims. Borrowers from participating FHA approved lenders are eligible for 100 percent financing including closing costs.
HUD's Section 203(k) loan program is also being made available to finance the purchase or refinance of a house along with its repair through a single mortgage. Homeowners can also finance the rehabilitation of their existing homes if damaged.
HUD will share information with FEMA and the State on housing providers that may have available units in the impacted counties. The Department will also connect FEMA and the State to subject matter experts to provide information on HUD programs and providers.
Recipients of Community Development Block Grant (CDBG) Program, Housing Opportunities for Persons With HIV/AIDS (HOPWA) Program, Continuum of Care (CoC) Program, Emergency Solutions Grants (ESG) Program, HOME Program, and Housing Trust Fund (HTF) Program funds can apply for needed administrative flexibility in response to natural disasters.
Public Housing Agencies can apply for needed waivers and flexibilities for disaster relief and recovery. Tribes and their Tribally Designated Housing Entities can also apply for needed administrative flexibility through regulatory waivers.
HUD-approved housing counseling agencies are ready to assist those impacted by natural disasters to determine assistance needs and available resources. HUD's Office of Fair Housing and Equal Opportunity is available to assist people who believe they have experienced housing discrimination following a disaster.
