June 27, 2022

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HUD Announces More Funding For Areas Hit By Natural Disasters

FHA And HUD

The Department of Housing and Urban Development has been very busy in 2021 and 2022 responding to natural disasters and announcing the latest federal disaster assistance in areas hardest hit by storms, fires, flooding, and more. 

Homeowners in federally-declared disaster areas soon learn about the FHA’s foreclosure moratoriums and options for recovering damaged or destroyed homes using FHA 203(h) and FHA 203(k) Rehabilitation Loans (amongst multiple options).

Now, HUD has announced further assistance for current and future disaster areas in the form of “Allocations for Community Development Block Grant Disaster Recovery” plus the start of something called CDBG-DR Consolidated Waivers and Alternative Requirements Notice.”

That notice is described by the HUD press release as being “ a critical step taken by the department to open access to more than $2 billion in federal funds to help communities equitably recover and improve long-term resilience to disasters and future climate impacts”.

The HUD Consolidated Notice offers guidance on the use of disaster recovery money at least in part as a set of guidelines that “require Community Development Block Grant-Disaster Recovery (CDBG-DR) grantees to incorporate disaster mitigation measures into all recovery activities involving construction and to advance equitable distribution” of disaster assistance funding.

“As our nation continues to grapple with disasters ranging from hurricanes to wildfires, HUD is aware of the urgent need for equitable recovery and resilience,” said HUD Secretary Marcia L. Fudge, who was quoted in the HUD press release issued in January 2022.  

Fudge adds, “HUD’s consolidated notice ensures that climate justice and racial equity remain central in our work to deliver swift recovery and keep resiliency at the forefront. The Department looks forward to continuing to work with communities so that they can get their disaster recovery and mitigation funds as quickly as possible.”

The HUD press release announcing the funding initiatives mentions climate change, disasters related to it, and how such problems can disproportionately affect some Americans more than others.

“Low-income residents and people of color often bear more of the impact when climate-related disasters strike. Responding to this fact, HUD’s Consolidated Notice will accelerate community recovery and ensure that inclusive resilience and mitigation remain central to disaster recovery.”

HUD has pledged to support “equitable resilience as a core component of its Climate Action Plan” which has been developed as “an agency-wide strategy to advance climate adaptation and resilience, reduce greenhouse gas emissions, and deliver environmental justice.”

The initiatives mentioned above collectively represent some $5 billion in funding; last year 10 states experienced 15 natural disasters; HUD’s goals include building “climate resilience in low- and moderate-income communities”.

Bruce Reichstein - FHA News Author

By Bruce Reichstein

February 2, 2022

Bruce Reichstein has spent over three decades as an experienced FHA and VA home loan mortgage banker and underwriter where he was responsible for funding “Billions” in government backed mortgage loans. He is the Managing Editor for FHANewsblog.com where he educates homeowners on the specific guidelines for obtaining FHA guaranteed home loans.

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