WASHINGTON – U.S. Housing and Urban Development Secretary Steve Preston today approved plans from the State of Louisiana and the City of New Orleans seeking to recover from the effects of high foreclosures and declining home values. Funded under HUD's new Neighborhood Stabilization Program (NSP), Louisiana and New Orleans will target emergency assistance to particular neighborhoods by acquiring and redeveloping foreclosed properties that might otherwise become sources of abandonment and blight.
The State of Louisiana intends to target $34.2 million to high-need communities within the Bayou State and New Orleans will direct $2.3 million to certain of its neighborhoods to help control the potential for abandonment and blight. With HUD's approval, Louisiana and New Orleans will be able to implement their action plans shortly.
"It is critical that we work closely with State and local governments to put this money to work as quickly as possible to help these communities recover from the effects of foreclosure and declining property values," said Preston. "Stabilizing neighborhoods is what this program is all about. HUD will continue to work closely with these communities to make certain these funds are targeted to neighborhoods with the greatest needs."
HUD's Neighborhood Stabilization Program was created under the Housing and Economic Recovery Act of 2008 and provides nearly $4 billion to every State and certain local communities experiencing particularly high foreclosure problems and risk of property abandonment. The program permits these State and local governments to purchase foreclosed homes at a discount and to rehabilitate or redevelop them in order to respond to rising foreclosures and falling home values.
State and local governments can use their neighborhood stabilization grants to acquire land and property; to demolish or rehabilitate abandoned properties; and/or to offer down payment and closing cost assistance to low- to moderate-income homebuyers (household incomes not exceed 120 percent of area median income). In addition, these grantees can create "land banks" to assemble, temporarily manage, and dispose of vacant land for the purpose of stabilizing neighborhoods and encouraging re-use or redevelopment of urban property.
The NSP Program also seeks to prevent future foreclosures by requiring housing counseling for families receiving homebuyer assistance. In addition, the Agency seeks to protect future homebuyers by requiring States and local grantees to ensure that new homebuyers under this program obtain a mortgage loan from a lender who agrees to comply with sound lending practices.
This page is located on the U.S. Department of Housing and Urban Development's Homes and Communities Web site at http://www.hud.gov/news/release.cfm?CONTENT=pr08-179.cfm
WASHINGTON – Recognizing the tremendous unmet housing, economic and infrastructure needs following this year's natural disasters, U.S. Housing and Urban Development Secretary Steve Preston today announced HUD will immediately allocate more than $2.1 billion to 13 States and Puerto Rico. The emergency funding is provided through HUD's Community Development Block Grant (CDBG) Program and will support the States' long-term disaster recovery.
"Families, businesses and communities are struggling to rebuild following this year's natural disasters. Today, we are making another installment of disaster assistance to help them get back on their feet," said Preston. "Once we have conducted a more thorough year-end analysis, HUD will make further allocations to States struggling to recover from dozens of storms in 2008."
HUD is announcing disaster recovery funding to the following States:
| State | Allocation | Affordable Housing Minimum* |
| Arkansas | $20,294,857 | $2,154,443 |
| Florida | 17,457,005 | 1,853,185 |
| Georgia | 4,570,779 | 485,221 |
| Illinois | 41,984,121 | 4,456,913 |
| Indiana | 95,042,622 | 10,089,450 |
| Iowa | 125,297,142 | 13,301,183 |
| Kentucky | 3,217,686 | 341,580 |
| Louisiana | 438,223,344 | 46,520,525 |
| Mississippi | 6,283,404 | 667,028 |
| Missouri | 13,979,941 | 1,484,070 |
| Puerto Rico | 17,982,887 | 1,909,011 |
| Tennessee | 20,636,056 | 2,190,664 |
| Texas | 1,314,990,193 | 139,595,563 |
| Wisconsin | 25,039,963 | 2,658,170 |
| Total | 2,145,000,000 | 227,707,006 |
*Congress requires each state to devote a portion of its funding to support affordable rental housing.
In September, Congress appropriated more than $6 billion in supplemental funding for "necessary expenses related to disaster relief, long-term recovery, and restoration of infrastructure, housing and economic revitalization in areas affected by hurricanes, floods, and other natural disasters occurring during 2008." Congress further directed HUD to allocate $2.145 billion of this disaster funding within 60 days of enactment.
Congress also required that States devote "not less than $650 million" to support affordable rental housing (see chart). In determining the allocations announced today, HUD focused on two factors:
After the end of calendar year 2008, HUD will make a final review of long-term disaster recovery needs for all states affected by disasters in 2008 to allocate the remaining $3.972 billion. This review will include unmet housing, infrastructure and economic revitalization needs. The Department will publish a notice providing guidance to these states and to assist them in their long-term recovery planning. Once these local action plans are developed, they will be provided to HUD for review.
Since 1974, HUD's Community Development Block Grant (CDBG) Program has allocated approximately $120 billion to state and local governments to target their own community development priorities. CDBG is one of HUD's oldest and most flexible programs. The rehabilitation of affordable housing and construction of public facilities and improvements have traditionally been the largest uses of the grants, although CDBG is also an important catalyst for job growth and business opportunities.
HUD is the nation's housing agency committed to increasing homeownership, particularly among minorities; creating affordable housing opportunities for low-income Americans; and supporting the homeless, elderly, people with disabilities and people living with AIDS. The Department also promotes economic and community development and enforces the nation's fair housing laws. More information about HUD and its programs is available on the Internet at www.hud.gov and espanol.hud.gov.
This page is located on the U.S. Department of Housing and Urban Development's Homes and Communities Web site at http://www.hud.gov/news/release.cfm?CONTENT=pr08-170.cfm
WASHINGTON – The U.S. Department of Housing and Urban Development (HUD) on November 1st will begin implementing its temporary disaster housing program to assist families displaced by Hurricanes Ike and Gustav. In anticipation of the start date, the Federal Emergency Management Agency (FEMA) has given the names of more than 6,500 eligible families to HUD which will provide temporary housing assistance until March 2010.
These families have been identified by FEMA as eligible for HUD's Disaster Housing Assistance Program-Ike (DHAP-Ike). This program will provide housing assistance and case management for homeowners and renters who were displaced by the 2008 hurricanes. Families whose homes received substantial damage and are likely uninhabitable during the 17-month program should register with FEMA at 1 (800) 621-FEMA (3362).
Only those families who meet FEMA's eligibility requirements for housing assistance under the Individuals and Households Program will be referred to HUD. An individual or a pre-disaster member of the household must be a United States citizen, a non-citizen national or a qualified alien. In addition, a person who is not a qualified alien, but whose child is a citizen, non-citizen national, or qualified alien, may apply for assistance on behalf of the child. The applicant must have incurred uninsured disaster-related losses in an area designated by the President for their primary residence. Eligible applicants who are expected to be unable to return to their home for a prolonged period of time due to substantial damage from the disaster will be referred to HUD.
Families who have already received a letter from FEMA informing them of their eligibility, should call HUD's Referral Call Center (RCC) toll-free 1 (866) 373-9509 to determine their current housing needs. The RCC representative will direct the family to the appropriate public housing authority (PHA), which will begin providing direct rental assistance to the residence of the individual's choice and start case management.
After all program requirements are met, the PHA will pay landlords either the Fair Market Rent (FMR) or the payment standard set by the local PHA, not to exceed the actual rent. For the first six months, the rent will be paid in full. Beginning May 1, 2009, the tenant will pay $50 towards the rent to accelerate their path to self sufficiency. Each month thereafter, the tenant's portion of the rent will increase by $50 until the tenant is paying the full rent or terminates from the program.
Starting in August 2009, families whose rent burden does not exceed 30 percent of post-disaster gross income, taking into account existing mortgages for personal residences that remain uninhabitable, will no longer be eligible for DHAP-Ike. As long as families' rent burden and mortgage continue to exceed 30 percent of post-disaster income and meet other program obligations, they will continue to receive assistance. The program ends March 13, 2010. Eligible families can live in a community outside of the disaster area and DHAP-Ike will subsidize their rent anywhere in the U.S.
Eligible applicants can actively seek and find housing prior to contact with the PHA. If the applicant finds a rental that currently is not listed, the PHA may encourage the landlord to register to participate in DHAP-Ike. Registering is a simple process that offers the landlord incentives to participate. Landlords can go to the HUD Web site at http://www.hud.gov/offices/pih/publications/ike.cfm for a sample rental agreement. For rental rates, landlords can contact their local PHA.
DHAP-Ike will be implemented as follows:
Media contacts: HUD Contact: Donna White 202-708-0685, FEMA News Desk: (202) 646-4600
HUD is the nation's housing agency committed to increasing homeownership, particularly among minorities; creating affordable housing opportunities for low-income Americans; and supporting the homeless, elderly, people with disabilities and people living with AIDS. The Department also promotes economic and community development and enforces the nation's fair housing laws. More information about HUD and its programs is available on the Internet at www.hud.gov and espanol.hud.gov. For more information about FHA products, please visit www.fha.gov.