The U.S. Department of Housing and Urban Development (HUD) has implemented federal disaster assistance for areas in the State of Vermont impacted by a severe storm and flooding from July 29 to July 30, 2021. On September 29, President Biden issued a major disaster declaration for the counties of Bennington and Windham, Vermont. The President’s declaration allows HUD to offer assistance to impacted families living in these counties.
Effective immediately, HUD is:
- Providing immediate foreclosure relief: HUD’s automatic 90-day moratorium on foreclosures of Federal Housing Administration (FHA)-insured home mortgages commenced on the date the Presidential declared a major disaster, and foreclosures of mortgages to Native American borrowers guaranteed under the Section 184 Indian Home Loan Guarantee program.
- Making mortgage insurance available: HUD’s Section 203(h) program provides FHA insurance to disaster victims whose homes were destroyed or damaged to such an extent that reconstruction or replacement is necessary, and are facing the task of rebuilding or buying another home. Borrowers from participating FHA-approved lenders are eligible for 100% financing, including closing costs.
- Making insurance available for both mortgages and home rehab: 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.
- Sharing information on housing providers and HUD programs: HUD will share information with FEMA and the State on housing providers that may have available units in the impacted counties, and also connect FEMA and the State to subject matter experts to provide information on HUD programs and providers
- Providing flexibility to Public Housing Authorities: Public Housing Authorities can apply for needed administrative flexibility through disaster waivers. HUD also released PIH Notice 2021-14, which granted administrative flexibilities to waive or establish alternative requirements for numerous statutory and regulatory requirements for various Public Housing Programs.