The U.S. Department of Housing and Urban Development (HUD) has announced federal disaster assistance for the U.S. Virgin Islands following Tropical Storm Ernesto, which occurred from August 13 to August 16, 2024. This move comes after President Biden issued a major disaster declaration for the region.
HUD's immediate actions include a 90-day moratorium on foreclosures of mortgages insured by the Federal Housing Administration (FHA), as well as those guaranteed under the Section 184 Indian Home Loan Guarantee program. Additionally, there is an automatic 90-day extension for Home Equity Conversion Mortgages. The moratorium and extension are effective from the date of the President’s disaster declaration.
Homeowners affected by the storm are advised to contact their mortgage or loan servicer promptly for assistance. Those with conventional mortgages may also qualify for additional relief through their mortgage holder. For more information, homeowners can call the FHA Resource Center at 1-800-304-9320 or visit the FHA Disaster Relief site.
HUD is making mortgage insurance available through its Section 203(h) program, which provides FHA insurance to disaster victims whose homes require reconstruction or replacement. Borrowers from participating FHA-approved lenders can receive 100 percent financing, including closing costs.
The department is also offering financing options through HUD's Section 203(k) loan program, allowing individuals to finance both the purchase or refinance of a house and its repair with a single mortgage. This option is available for homeowners looking to rehabilitate damaged existing homes.
Information about housing providers and HUD programs will be shared with FEMA and state authorities to identify available units in impacted areas, including those managed by Public Housing Agencies and Multi-Family owners.
Flexibility is being provided to Community Planning and Development Grantees who can apply for administrative flexibility in response to major disasters declared in the U.S. Virgin Islands (DR-4841-VI). Public Housing Agencies can also seek waivers and flexibilities for disaster relief and recovery efforts.
Tribes and Tribally Designated Housing Entities have access to regulatory waivers by contacting their local Office of Native American Programs or emailing Codetalk@hud.gov.
HUD-approved housing counseling agencies are prepared to assist those affected by natural disasters in determining their needs and resources available. These services are free of charge for foreclosure prevention counseling.
For those facing housing discrimination post-disaster, HUD's Office of Fair Housing and Equal Opportunity offers support. Complaints can be filed by calling HUD at 1-800-669-9777 or visiting their website.
