On Friday, the Federal Housing Administration (FHA) rolled out two important initiatives to bolster disaster recovery efforts amid rising instances of extreme weather.
These initiatives include an extension of the foreclosure moratorium for those affected by hurricanes Helene and Milton, as well as a new partnership with the Federal Emergency Management Agency (FEMA) aimed at improving pre-disaster preparedness.
Foreclosure Moratorium Extension
In a recent Mortgagee Letter (ML) 2024-25, the FHA outlined the details of this foreclosure moratorium extension, which mandates that lenders swiftly implement the new policies.
Homeowners can now breathe easier, as the moratorium will last until April 11, 2025.
The FHA stated that this extension provides homeowners with FHA-insured mortgages crucial extra time to tap into various housing resources made available by federal, state, or local agencies.
It also encourages them to consult certified housing counselors to navigate reconstruction efforts for their homes, which have been significantly impacted by the hurricanes.
Collaboration with FEMA
As of now, numerous regions in Florida, Georgia, North Carolina, South Carolina, Tennessee, and Virginia have been designated as Presidentially Declared Major Disaster Areas (PDMDAs) due to the destruction caused by hurricanes Helene and Milton.
Adrianne Todman, acting secretary of the U.S. Department of Housing and Urban Development (HUD), underscored the necessity of not just resources but also time for survivors to recuperate after such disasters.
With the moratorium extension, the administration seeks to aid hurricane victims as they embark on the journey of rebuilding.
Future Initiatives and Funding
The original plan featured a 90-day automatic foreclosure moratorium following the storms.
However, the overwhelming damage experienced warranted an extended reprieve.
In addition to this, the FHA will allow servicing companies an extra 180 days to carry out specific foreclosure-related legal activities after the moratorium ends.
FHA Commissioner Julia Gordon stated that given the extensive devastation wrought by the hurricanes, a further 120-day foreclosure moratorium extension is appropriate.
This added time empowers homeowners to collaborate with their mortgage servicers to explore viable options for managing payments that may have become burdensome due to the aftermath of the disasters.
On another front, HUD introduced a fresh collaboration with FEMA, termed the “Pre-Disaster Housing Initiative.” This initiative aims to bolster housing support systems before disasters strike, targeting key states to provide proactive assistance.
Over the next eight months, HUD and FEMA will work together to offer technical support and guidance to officials and emergency managers in Kentucky, Michigan, and Missouri.
This collaboration is intended to enhance housing-related planning and mitigate the likelihood of housing shortages following unforeseen disasters.
The selection of these states was thoughtful, based on their distinctive challenges and diverse experiences concerning post-disaster housing, including varying geographic traits and a history of frequent disaster declarations.
Each participating state will determine its own goals while engaging with local communities to establish a responsive disaster housing strategy that can be activated when needed.
Todman highlighted the critical nature of preparedness when facing disasters and called on Congress to act quickly in approving the president’s $12 billion funding proposal for HUD’s disaster recovery efforts.
She emphasized the urgency of assisting Americans as they work to rebuild their homes.
Colt Hagmaier, FEMA’s assistant administrator for recovery, remarked that strengthening the connection between HUD and FEMA is a significant priority for both agencies.
He expressed optimism about the beneficial impact this initiative is expected to have across the nation, enhancing disaster recovery solutions for affected communities.
Source: Housingwire