Grants & Mortgage Relief for North Carolina Homeowners

In response to the devastation caused by Tropical Storm Helene, the U.S. Department of Housing and Urban Development (HUD) has stepped in to provide critical disaster relief for North Carolina. This announcement comes as part of the federal effort to support recovery in areas severely impacted by the storm, which began on September 25, 2024. The federal aid will supplement state, tribal, and local recovery initiatives, helping communities get back on their feet.

President Biden issued a major disaster declaration covering numerous counties in North Carolina, including Alexander, Alleghany, Ashe, Buncombe, and many others, as well as the Eastern Band of Cherokee Indians. This declaration activated several forms of federal assistance aimed at alleviating the immediate and long-term financial burdens residents may face. Effective immediately, HUD has implemented several measures designed to support both homeowners and renters in these affected areas.

Mortgage Relief for Affected Homeowners

To provide immediate financial relief, HUD announced a 90-day moratorium on foreclosures for mortgages insured by the Federal Housing Administration (FHA). This applies to FHA-insured mortgages, including loans made to Native American borrowers through the Section 184 Indian Home Loan Guarantee program. In addition to this moratorium, a 90-day extension will automatically apply to Home Equity Conversion Mortgages (reverse mortgages) as well.

This means that homeowners struggling to make mortgage payments due to the disaster can avoid foreclosure during this critical period. HUD encourages affected homeowners to reach out to their mortgage servicers immediately to explore their relief options. Even those with conventional mortgages may be eligible for additional assistance, depending on their lender.

For FHA-insured mortgage holders needing more information on relief options, HUD advises contacting the FHA Resource Center at 1-800-304-9320. Further details about disaster relief for FHA homeowners are also available on the FHA Disaster Relief webpage.

Assistance for Rebuilding and Rehabilitation

For homes that have been destroyed or significantly damaged by the storm, HUD’s Section 203(h) program offers FHA insurance to disaster victims. This program allows eligible individuals to secure 100% financing for the reconstruction or replacement of their homes, including closing costs. Borrowers working with FHA-approved lenders can benefit from this program as they navigate the difficult process of rebuilding.

Additionally, for homeowners looking to repair or rehabilitate their damaged properties, HUD’s Section 203(k) loan program provides a streamlined option. This program enables individuals to finance both the purchase or refinance of a home, along with necessary repairs, through a single mortgage. This flexibility can help many disaster-stricken homeowners restore their homes without having to juggle multiple loans or financing arrangements.

Sharing Housing Resources and Support

In collaboration with FEMA and state authorities, HUD will share vital information on housing providers and available units in the impacted areas. Public Housing Agencies (PHAs) and multi-family housing owners will also be connected with recovery efforts to ensure that displaced individuals can find temporary or permanent housing solutions.

Moreover, HUD is leveraging its subject matter experts to assist FEMA and local governments in navigating HUD’s various housing programs. This coordination aims to streamline access to resources for those in need of immediate housing.

Flexibility for Grant Recipients and Public Housing Agencies

To further support local recovery efforts, HUD is offering flexibility to grant recipients of key programs such as the Community Development Block Grant (CDBG) Program, the HOME Investment Partnership Program, and several others. These recipients can apply for waivers or suspensions of certain program requirements to better respond to the disaster. This flexibility is essential for speeding up the recovery process and ensuring that resources reach the people and projects that need them most.

Public Housing Agencies (PHAs) are also being granted similar flexibility. PHAs operating in the declared disaster area can apply for waivers that allow them to bypass some regulatory and administrative requirements. This can expedite repairs and other critical services for public housing residents. PHAs interested in applying for waivers are encouraged to review the latest Federal Register Disaster Relief Notice guidance and submit their requests within four months of the disaster declaration.

Tribal Relief and Housing Counseling

HUD is also extending relief to tribal communities and their designated housing entities. Tribes affected by the storm can apply for regulatory waivers that grant additional administrative flexibility during the recovery process. For assistance, tribes are urged to contact their local HUD Office of Native American Programs or email [email protected].

In addition to these programs, HUD-approved housing counseling agencies are on standby to assist those affected by the disaster. These agencies can provide guidance on available resources and offer foreclosure prevention counseling at no charge. Importantly, homeowners do not need to have an FHA-insured mortgage to receive help from a HUD-approved counseling agency. This service is available to all who need it, with multilingual support provided via telephone at 1-800-569-4287.

Addressing Housing Discrimination Post-Disaster

Unfortunately, housing discrimination can become more prevalent following natural disasters, as some individuals face difficulties accessing housing. HUD’s Office of Fair Housing and Equal Opportunity is ready to assist those who believe they’ve encountered housing discrimination. If you feel your rights have been violated, you should file a complaint with HUD as soon as possible. Complaints can be submitted by calling 1-800-669-9777 or through the HUD website.

It’s important to act quickly, as HUD may not be able to assist if the complaint is filed more than one year after the discriminatory act. For individuals with limited English proficiency or those who are deaf or hard of hearing, HUD offers additional support through translation services and the Federal Relay Service.

Conclusion of Relief Measures

The measures introduced by HUD aim to support a swift recovery for the people of North Carolina in the wake of Tropical Storm Helene. By providing immediate foreclosure relief, making financing available for home repairs, and offering flexibility in housing programs, HUD ensures that communities can begin to rebuild quickly and effectively. These efforts underscore the federal government’s commitment to helping citizens recover from disasters and restore stability to their lives. For those affected, staying informed about available resources and reaching out to HUD for assistance can make a significant difference during these challenging times.