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June 21, 2011



Senator Applauds Additional Resources Available to Montanans Displaced by Flood Disaster


(Washington, D.C.) – Montana’s senior U.S. Senator Max Baucus today applauded the news that Montana homeowners and low-income renters forced from their homes from severe flooding will now have additional federal disaster assistance through the U.S. Housing and Urban Development Department.


“This is just one more way we can circle up around the folks most impacted by severe flooding across the state. There are still hundreds of people who are unable to return to their homes because of this disaster. This is one resource to ease the heavy burden facing our flood victims. I’m going to keep looking under every rock for additional ways to support families and businesses most severely impacted by this disaster,” Baucus said.


When floodwaters hit, Baucus staff contacted HUD officials to prepare any and all appropriate resources for Montanans forced from their homes. Last week’s Presidential Disaster Declaration cleared the way for HUD to offer foreclosure relief and other assistance to certain families living in counties and Indian Reservations in Montana.


Additional information from the U.S. Housing and Urban Development Department:


HUD is:


·         Offering the State of Montana and other entitlement communities the ability to re-allocate existing federal resources toward disaster relief – HUD's Community Development Block Grant (CDBG) and HOME programs give  the State and communities  the flexibility to redirect millions of dollars to address critical needs, including housing and services for disaster  victims. HUD is currently contacting State and local officials to explore streamlining the Department's CDBG and HOME programs in order to expedite the repair and replacement of damaged housing;


·           Granting immediate foreclosure relief – HUD granted a 90-day moratorium on foreclosures and forbearance on foreclosures of Federal Housing Administration (FHA)-insured home mortgages;


·          Making mortgage insurance available – HUD's Section 203(h) program provides FHA insurance to disaster victims who have lost their homes and are facing the daunting task of rebuilding or buying another home. Borrowers from participating FHA-approved lenders are eligible for 100 percent financing, including closing costs;


·         Making insurance available for both mortgages and home rehabilitation – 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. It also allows homeowners who have damaged houses to finance the rehabilitation of their existing single-family home; and


·         Offering Section 108 loan guarantee assistance – HUD will offer state and local governments federally guaranteed loans for housing rehabilitation, economic development and repair of public infrastructure. 


·         Information on housing providers and HUD programs -The Department will share information with FEMA and the State on housing providers that may have available units in the impacted counties.  This includes Public Housing Agencies and Multi-Family owners.  The Department will also connect FEMA and the State to subject matter experts to provide information on HUD programs and providers. Read about these and other HUD programs designed to assist disaster victims.





 Contact: Baucus: Kate Downen 406-224-5056/Jennifer Donohue (202) 224-2651/Kathy Weber 406-657-6790





Kathy Weber

Montana Press Secretary| U.S. Senator Max Baucus| 406-657-6790| baucus.senate.gov


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