Washington – U.S. Housing and Urban Development Secretary Shaun Donovan today announced HUD will speed federal disaster assistance to counties in Tennessee and provide support to homeowners and low-income renters forced from their homes following severe storms and flooding.

On Friday, President Obama issued a disaster declaration for Chester, Clay, Decatur, Jackson, Overton, and Wayne Counties. The President’s declaration allows HUD to offer foreclosure relief and other assistance to certain families living in these counties.

“Families who may have been forced from their homes need to know that help is available to begin the rebuilding process,” said Donovan. “Whether it’s foreclosure relief for FHA-insured families or helping these counties to recover, HUD stands ready to help in any way we can.”

HUD is:

• Offering the State of Tennessee the ability to re-allocate existing federal resources toward disaster relief – HUD’s Community Development Block Grant (CDBG) and HOME programs give the State the flexibility to redirect millions of dollars to address critical needs, including housing and services for flood 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. For more information about these and other HUD programs designed to assist disaster victims, visit HUD’s website.

About the U.S. Department of Housing and Urban Development

HUD is the nation’s housing agency committed to sustaining homeownership; creating affordable housing opportunities for low-income Americans; and supporting the homeless, elderly, people with disabilities and people living with AIDS. The Department also promotes economic and community development and enforces the nation’s fair housing laws. More information about HUD and its programs is available on the Internet at www.hud.gov and espanol.hud.gov.

Washington – The Federal Housing Administration (FHA) today suspended Taylor, Bean and Whitaker Mortgage Corporation (TBW) of Ocala, Florida, thereby preventing the Company from originating and underwriting new FHA-insured mortgages. The Government National Mortgage Association (Ginnie Mae) is also defaulting and terminating TBW as an issuer in its Mortgage-Backed Securities (MBS) program and is ending TBW’s ability to continue to service Ginnie Mae securities. This means that, effective immediately, TBW will not be able to issue Ginnie Mae securities, and Ginnie Mae will take control of TBW’s nearly $25 billion Ginnie Mae portfolio.

FHA and Ginnie Mae are imposing these actions because TBW failed to submit a required annual financial report and misrepresented that there were no unresolved issues with its independent auditor even though the auditor ceased its financial examination after discovering certain irregular transactions that raised concerns of fraud. FHA’s suspension is also based on TBW’s failure to disclose, and its false certifications concealing, that it was the subject of two examinations into its business practices in the past year.

“Today, we suspend one company but there is a very clear message that should be heard throughout the FHA lending world – operate within our standards or we won’t do business with you,” said HUD Secretary Shaun Donovan.

FHA Commissioner David Stevens said, “TBW failed to provide FHA with financial records that help us to protect the integrity of our insurance fund and our ability to continue a 75-year track record of promoting, preserving and protecting the American Dream. We were also troubled that the Company not only failed to disclose it was a target of a multi-state examination and a separate action by the Commonwealth of Kentucky, but then falsely certified that it had not been sanctioned by any state. FHA won’t tolerate irresponsible lending practices.”

Ginnie Mae President Joseph Murin said, “I would like to reassure TBW’s customers whose loans serve as collateral for Ginnie Mae securities that, although this action will result in a new servicer, the transition will be seamless for them.”

TBW’s immediate suspension is for a temporary period pending the completion of an investigation by HUD’s Office of Inspector General, an ongoing review by the Department’s Office of Housing, and any legal proceedings that may ensue. TBW is the third largest direct endorsement lender of FHA-insured loans and the eighth largest issuer of Ginnie Mae mortgage-backed securities. FHA decided that TBW’s immediate suspension is in the best interest of the public and is necessary to protect the financial interests of the Department.

TBW may appeal its immediate suspension by submitting a written request for a hearing before an Administrative Law Judge within 30 days. Such a request will not delay the action FHA is announcing today.

In conjunction with TBW’s suspension, HUD sent notices of proposed debarment to TBW’s Chief Executive Officer, Paul R. Allen, and TBW’s President, Ray Bowman. Mr. Allen’s proposed debarment alleges that he submitted false and/or misleading information to Ginnie Mae regarding TBW’s delay in submitting its audited financial reports for fiscal year ending on March 31, 2009. Mr. Bowman’s proposed debarment alleges that he submitted two false certifications to HUD on TBW’s Yearly Verification Report. Mr. Allen and Mr. Bowman have thirty days to contest the proposed debarments.

About The Department of Housing and Urban Development

HUD is the nation’s housing agency committed to sustaining homeownership; creating affordable housing opportunities for low-income Americans; and supporting the homeless, elderly, people with disabilities and people living with AIDS. The Department also promotes economic and community development and enforces the nation’s fair housing laws.

About Ginnie Mae

Ginnie Mae is a wholly-owned government corporation within the U.S. Department of Housing and Urban Development. Ginnie Mae pioneered the mortgage-backed security (MBS), guaranteeing the very first security in 1971. An MBS enables a mortgage lender to aggregate and sell mortgage loans as a security to investors. Ginnie Mae securities carry the full faith and credit of the United States Government, which means that, even in difficult times, an investment in Ginnie Mae is one of the safest an investor can make.

More information about HUD and Ginnie Mae is available on the Internet at www.hud.gov, espanol.hud.gov and www.ginniemae.gov

Washington, D.C. – Senior Obama Administration officials met today with top executives from servicers participating in the Making Home Affordable loan modification program to discuss ways to improve effectiveness and efficiency of the program. The meeting – led by Treasury Assistant Secretary for Financial Institutions Michael S. Barr, Treasury Assistant Secretary for Financial Stability Herb Allison, FHA Commissioner David Stevens and HUD Senior Advisor to the Secretary William Apgar – addressed challenges to modifications, strategies for improvement, and collective goals that the servicers and Administration are committed to reaching.

“With over 200,000 trial loan modifications already under way, we are on track to meet our goals,” said Treasury Secretary Tim Geithner. “Still, too many homeowners are at risk of foreclosure right now. Today’s meeting was an opportunity to identify ways to accelerate the program and bring relief faster.”

Servicers in attendance committed to significantly increasing the rate at which they are performing loan modifications. The Administration has established a goal of reaching half a million trial modifications begun by November 1, 2009.

“I am confident that the best practices shared today, combined with more transparent reporting methods, better communication among all parties, and a strong commitment from servicers, will ensure that we can ramp up the MHA program’s pace to meet these ambitious goals,” said HUD Secretary Shaun Donovan.

The Administration officials detailed in the meeting the Administration’s plans to take three important steps to improve the program’s performance. First, we will begin publicly reporting results under the program based on servicer-specific performance. This will include the number of trial modification offers each servicer has extended to eligible borrowers, the number of trial plans that are underway, the number of final modifications, and eventually, the long term success of those modifications. The first report will be released by August 4th.

Second, we will work with servicers to set more exacting operational metrics to measure the performance of the program, such as average borrower wait time for inbound borrower inquiries, the completeness and accuracy of information provided applicants, document handling, and response time for completed applications.

Third, in order to minimize the likelihood that borrower applications are overlooked or that applicants are inadvertently denied a modification, the Administration has also asked Freddie Mac, in its role as compliance agent, to develop a “second look” process pursuant to which Freddie Mac will audit a sample of MHA modification applications that have been declined. Freddie Mac will coordinate with servicers to address specific cases that arise and to address general operational weaknesses where errors prove more systematic.

More information about the Making Home Affordable program is available at www.makinghomeaffordable.gov

WASHINGTON – In the Obama Administration’s continued effort to stimulate community development and job growth, U.S. Housing and Urban Development Secretary Shaun Donovan today announced nearly 700 grants totaling $360 million in funding through the American Recovery and Reinvestment Act of 2009 (Recovery Act). To view the list of grantees receiving funding under this round of grants, visit HUD’s Recovery Act website.

The grants awarded today represent over half of the Recovery Act-funded grants available through the Community Development Block Grant (CDBG) Program, which primarily benefit low- to moderate-income families. CDBG enables state and local governments to undertake a wide range of activities intended to create suitable living environments, provide affordable housing and create economic opportunities. Under the Recovery Act, recipients give priority to prudent responsible that can award contracts through a bidding process within 120 days of the grant agreement. A total of $1 billion will be awarded nationwide by HUD in Recovery Act Community Development Block Grants.

“Today, we make another critical investment in the economic recovery of our communities,” said Donovan. “I am proud to announce this $360 million in Community Development Block Grant funding to state and local governments throughout the country, which will create jobs and help to revitalize the nation’s hardest hit neighborhoods. President Obama and I are anxious to put this money to work for long-term, sustainable community and economic development.”

President Obama directed all Recovery Act funding to be spent responsibly and in a transparent manner in order to provide a necessary economic boost, create jobs, and strengthen America’s middle class. In a letter to CDBG recipients of Recovery Act funds, Donovan wrote, “In accepting these funds, it is imperative that you be good stewards of these precious taxpayer dollars by focusing your efforts on the Recovery Act goals of investing in infrastructure that will create or sustain jobs in the near-term and generate maximum economic benefits in the long-term.”

Since 1974, CDBG has provided more than $127 billion to state and local governments to target their own community development priorities. The rehabilitation of affordable housing and the construction and improvement of public facilities have traditionally been the largest uses of CDBG funds although the program is also an important catalyst for job growth and business opportunities. Annual CDBG funds are distributed to communities according to statutory formulas based on population, poverty, pre-1940 housing stock, growth lag, and housing overcrowding.

HUD is committed to implementing Recovery Act investments swiftly and effectively as they generate tens of thousands of jobs, modernize homes to make them energy efficient, and help the families and communities hardest hit by the economic crisis. The Recovery Act includes $13.61 billion for projects and programs administered by HUD, nearly 75 percent of which was allocated to state and local recipients only eight days after President Obama signed the Act into law. The CDBG funding was among the 75 percent that was allocated during that time. Now as grant recipients’ spending plans are approved, HUD is officially making funding available to spend. The remaining 25 percent of HUD Recovery Act funds will be awarded through a competitive process in the coming weeks and months.

About the Department of Housing and Urban Development

HUD is the nation’s housing agency committed to sustaining homeownership; creating affordable housing opportunities for low-income Americans; and supporting the homeless, elderly, people with disabilities and people living with AIDS. The Department also promotes economic and community development and enforces the nation’s fair housing laws. More information about HUD and its programs is available on the Internet at www.hud.gov and espanol.hud.gov.

WASHINGTON – U.S. Housing and Urban Development announced today the final allocations of more than 10,000 vouchers to local public housing authorities across the country to provide permanent supportive housing for homeless veterans.

For a local breakdown of the rental vouchers announced today, visit HUD’s website.

“Numerous men and women voluntarily leave their families and put their lives on the line to ensure that we, their fellow Americans, live safely in our homes,” said HUD Secretary Shaun Donovan, who announced the $75 million in funding last month with Veterans Affairs Secretary Eric K. Shinseki. “These vouchers offer veterans a permanent home and critically needed supportive services to those who have served our nation.”

HUD’s Veterans Affairs Supportive Housing Program (HUD-VASH) will provide local public housing agencies with 10,290 rental assistance vouchers specifically targeted to assist homeless veterans in their area. Public housing authorities, that administer HUD’s Housing Choice Voucher Program (HCV), work closely with Veteran Affairs Medical Centers to manage the program. In addition to the rental assistance, VA Medical Centers provide supportive services and case management to eligible homeless veterans.

“The announcement of an additional 10,290 HUD-VASH vouchers for homeless Veterans and their families allows us to take another giant step forward with a collaborative effort to reach some of the most vulnerable Veterans; including women Veterans and Veterans with children,” said Secretary of Veterans Affairs Eric K. Shinseki “We will connect these Veterans with dedicated case managers to insure they receive the health care and benefit assistance to help them to move on with their lives with dignity.”

HUD allocates the housing vouchers to local public housing agencies across the country that are specifically targeted to homeless veterans based on a variety of factors, including the number of reported homeless veterans and the proximity of a local VA Medical Center with the capacity to provide case management.

HUD’s HCV program (Section 8) allows participants to rent privately owned housing and generally pay no more than 30 percent of annual adjusted income. The VA will offer eligible homeless veterans clinical and supportive services through its medical centers across the U.S and Puerto Rico. The VA addresses the needs of more than 100,000 homeless veterans who access VA health care annually.

In the last two years, HUD has provided $150 million that will sustain 20,000 vouchers to support the housing and service needs of homeless veterans across America. In its proposed 2010 budget, the Obama Administration demonstrates its support of homeless veterans by renewing these and other special purpose vouchers.

Local communities or “Continuums of Care” that receive HUD homeless assistance will work with local VA Medical Centers to identify eligible participants. The VA will then screen homeless veterans to determine their eligibility. Those eligible vets will receive treatment and regular case management to retain the voucher. VA Medical Center case managers will also work closely with local housing agencies to help participants find suitable housing. Participating local housing agencies will also determine income eligibility in accordance to HUD regulations for the HCV program.

About the Deparment of Housing and Urban Development

HUD is the nation’s housing agency committed to increasing homeownership, particularly among minorities; creating affordable housing opportunities for low-income Americans; and supporting the homeless, elderly, people with disabilities and people living with AIDS. The Department also promotes economic and community development and enforces the nation’s fair housing laws. More information about HUD and its programs is available on the Internet at www.hud.gov and espanol.hud.gov.

WASHINGTON – U.S. Department of Housing and Urban Development Secretary Shaun Donovan announced the availability of $113 million in HOPE VI funding today in a keynote address on the future of urban revitalization at the National Press Club during the Brookings Institution’s event, “From Despair to Hope: Two HUD Secretaries on Urban Revitalization and Opportunity.” Donovan joined former HUD Secretary Henry Cisneros in a comprehensive discussion about the HOPE VI revitalization program and the Obama Administration’s proposed Choice Neighborhoods Initiative, which seeks to build on the lessons from HOPE VI and expand urban revitalization beyond public housing. The full text of Donovan’s speech is available here.

“The HOPE VI Program has improved the conditions of low-income communities across this nation,” said Donovan. “However, HOPE VI was developed in response to the concentrated poverty that resulted not in spite of government housing policy in the twentieth century – but often because of it. Now is the time for us to take the lessons learned from HOPE VI, build on the accomplishments, and broaden the scope of the program for broader impact. Today’s funding announcement is the first step toward this new comprehensive approach, because for the first time, we are encouraging housing authorities to incorporate early childhood education components into the HOPE VI planning process.”

Donovan announced that HUD will award additional points to public housing authorities (PHA) that incorporate early childhood education into their applications for HOPE VI funding. HOPE VI grants aim not only to redevelop the physical location of a community, but also to positively impact the lives of the residents. In addition to the family economic self-sufficiency-based Community and Supportive Services (CSS) program, points will be given to applicants (a maximum of 5 points) who demonstrate the commitment to implement and/or form a significant partnership with an institution that implements a comprehensive, high-quality, results-oriented early childhood education program that utilizes best practices. Points will also be awarded for factors related to green development and energy efficiency strategies.

Donovan introduced the Choice Neighborhoods Initiative in HUD’s FY2010 budget proposal in May 2009. The FY2010 budget HUD requests $250 million for a Choice Neighborhoods Initiative, $130 million over the level appropriated for HOPE VI in fiscal year 2009. The initiative would challenge public, private and nonprofit partners to extend neighborhood transformation efforts beyond public housing and link housing interventions more closely with school reform and early childhood innovation.

“Choice Neighborhoods will continue the effort we are starting with today’s announcement,” Donovan continued. “We want to continue and expand on the progress made under HOPE VI, to alleviate the intense concentration of poverty in many urban neighborhoods. Such concentration undermines the promise of affordable housing to serve as a platform for individual advancement and community revitalization.”

There have been 248 HOPE VI Revitalization grants awarded to 130 housing authorities since 1993 – totaling $6 billion. These grants have transformed severely distressed public housing developments to mixed-income communities. Revitalization grant funds are used for an array of activities, including: demolition of severely distressed public housing; acquisition of sites for off-site construction; capital costs of major rehabilitation, new construction and other physical improvements; and community and supportive service programs for residents, including those relocated as a result of revitalization efforts.

HUD will pay relocation costs for residents whose apartments are being demolished. Relocated residents in good standing will be given an opportunity to move back to the newly constructed units at the site, or will be given Housing Choice Vouchers (Section 8) that will subsidize their rents in privately owned apartments if they choose not to return to public housing.

The 2009 HOPE VI Notice of Funding Availability (NOFA) can be accessed at http://www.grants.gov. PHAs have until November 17th, 2009 to compete for the Revitalization grants. The maximum grant award is $22 million. It is anticipated that five to six grant awards will be made.

Applicants must refer to the 2009 General Section for important application information and requirements, including submission requirements, which changed for 2009. In FY2009, HUD is continuing its requirement that applicants submit their applications electronically through http://www.grants.gov.

About the Department of Housing and Urban Development

HUD is the nation’s housing agency committed to sustaining homeownership; creating affordable housing opportunities for low-income Americans; and supporting the homeless, elderly, people with disabilities and people living with AIDS. The Department also promotes economic and community development and enforces the nation’s fair housing laws. More information about HUD and its programs is available on the Internet at www.hud.gov and espanol.hud.gov.

WASHINGTON

In addition to the annual report, HUD Secretary Shaun Donovan announced that HUD will, for the first time ever, begin measuring homelessness on a quarterly basis to gain a better understanding of the impact of the current economic crisis on homelessness. The first “Homeless Pulse Project” for the first quarter of 2009 is now available.

A homeless person

“The annual report tells us a great deal but it also begs many questions about how today’s housing crisis and job losses are playing out in our shelters and on our streets,” said Secretary Donovan. “The Administration’s aggressive approach to economic recovery recognizes that during these difficult times, families in certain areas of the country are at extreme risk of falling into homelessness. With our new Quarterly Homeless Pulse Report, we will be able to better understand the impact of the current economic crisis on homelessness across the country.”

According to the 2008 Annual Homeless Assessment Report, between 2007 and 2008, the number of sheltered homeless individuals remained virtually the same while the number of homeless families seeking shelter increased by nine percent overall, and by nearly 56 percent in suburban and rural areas.

HUD measures homelessness through the Annual Homeless Assessment Report in two ways:

• Point-In-Time ‘Snapshots – these data account for sheltered and unsheltered homeless persons on a single night, usually at the end of January. Comparing point-in-time counts over time can reveal important trends about the seasonality of homelessness (see summary of findings).
• Homeless Management Information Systems – these data provide more detailed information on persons who access a shelter over the course of a full year. In the 2008 AHAR, 222 local communities contributed HMIS data to produce national estimates of sheltered homeless. HUD estimates that approximately 1.6 million persons experienced homelessness and found shelter between October 1, 2007 and September 30, 2008.

The changing patterns of homelessness between 2007 and 2008 also provide potential indicators of how the economic crisis may be affecting homelessness in America. For example, many more sheltered homeless persons are coming from housed living arrangements just prior to entering the shelter system and most of these persons appear to be wearing out their welcome with family and friends. The report also demonstrates that many more people are coming from stable living arrangements, or places where they lived for one year or more.

HUD’s year-long sample of HMIS data found the following characteristics of all sheltered homeless persons (see p. 25):

• Geographic – 68 percent are in principal cities – 32 percent are in suburban and rural areas.
• Household Type – 68 percent are individuals – 32 percent are persons in families with children.
• Race – 62 percent are members of minorities.
• Gender – 64 percent of all sheltered homeless adults are men and 36 percent are women.
• Age – 40 percent of all homeless individuals are 31-to-50 years old.
• Veteran Status – 12 percent of all sheltered homeless adults are veterans.

HUD’s NEW Quarterly Homeless Pulse Report

HUD’s first “Homeless Pulse Project” focuses on data from nine geographically diverse areas across the country. These communities measured the number of homeless individuals seeking shelter from January to March, 2009 (see attached).

1. Phoenix/Mesa/Maricopa County, Arizona
2. Bridgeport, Stratford, and Fairfield, Connecticut
3. Washington, DC
4. Lakeland/Winterhaven/Polk County, Florida
5. Kentucky Balance of State
6. Shreveport/Bossier/Northwest, Louisiana
7. New York City
8. Cleveland/Cuyahoga County, Ohio
9. Richmond/Henrico, Chesterfield, and Hanover Counties, Virginia

These areas reported the following changes in their sheltered homeless population during the first quarter of 2009:

About the Department of Housing and Urban Development

HUD is the nation’s housing agency committed to sustaining homeownership; creating affordable housing opportunities for low-income Americans; and supporting the homeless, elderly, people with disabilities and people living with AIDS. The Department also promotes economic and community development and enforces the nation’s fair housing laws. More information about HUD and its programs is available on the Internet at www.hud.gov and espanol.hud.gov

WASHINGTON

Today’s announcement coincides with the tenth anniversary of the Supreme Court’s ruling in Olmstead v. L.C. & E.W. which affirmed the rights of individuals with disabilities to live independently. To commemorate this landmark decision, President Obama declared 2009 the Year of Community Living.

“As individuals with disabilities leave institutional care, it is essential that they have housing options that will allow them to live independently,” said HUD Secretary Shaun Donovan. “As we prepare to launch this initiative, we also want to make certain that we get input from local housing experts, disability rights advocates and others who can help us target this assistance to those who need it most. We also recognize how important it is for HUD and HHS to coordinate our resources to enable community-living for those individuals that live with disabilities.”

HUD’s Notice of Funding Availability (NOFA) will make $30 million in voucher assistance available to support approximately 4,000 Housing Choice Vouchers for non-elderly disabled families. HUD is making a 1,000 of those vouchers available specifically for individuals transitioning out of nursing homes and other institutions. These vouchers directly support a $1.75 billion initiative of the U.S. Department of Health and Human Services (HHS) to help persons who reside in health care settings move to community-based living. While HHS’ Money Follows the Person (MFP) program offers health care, case management and other services to qualified families, it does not include funding for housing. HUD’s funding initiative is designed to fill that gap.

The remaining 3,000 Housing Choice Vouchers are available to assist any non-elderly disabled family. The Department is encouraging local housing authorities to give strong consideration to using some or all of these vouchers to provide housing for those non-elderly persons that are living in the community, but are at-risk for institutionalization.

About the Department of Housing and Urban Development

HUD is the nation’s housing agency committed to sustaining homeownership; creating affordable housing opportunities for low-income Americans; and supporting the homeless, elderly, people with disabilities and people living with AIDS. The Department also promotes economic and community development and enforces the nation’s fair housing laws. More information about HUD and its programs is available on the Internet at www.hud.gov and espanol.hud.gov.

WASHINGTON – The U.S. Department of Housing and Urban Development today announced that more than $58 million is available for a broad range of housing counseling programs to help families find and preserve housing. The funding is an increase of $11 million, or 23 percent, over last year. These grants will be awarded competitively to hundreds of HUD-approved counseling agencies and State Housing Finance Agencies that offer a variety of services including how to purchase or rent a home, how to avoid foreclosure, how to improve credit scores, and how to qualify for a reverse mortgage.

“Now, more than ever, it is crucial that American families make informed decisions about their housing choices,” said HUD Secretary Shaun Donovan. “These counseling agencies are also vital to the success of the President’s Making Home Affordable Plan which is helping families avoid foreclosure and remain in their homes.”

HUD-approved counseling agencies provide homeownership counseling as well as financial literacy education to renters and homeless individuals and families. This year HUD’s Housing Counseling Grant program will provide approximately $47 million for comprehensive counseling; $8 million for Reverse Mortgage Counseling, $2 million for supplemental funding for Loan Document Review Counseling, and $1 million in supplemental funding for Fair Lending and Mortgage Fraud Analysis and Counseling.

National and regional agencies distribute much of HUD’s housing counseling grant funding to community-based grassroots organizations that provide advice and guidance to low- and moderate-income families seeking to improve their housing conditions. In addition, these larger organizations help improve the quality of housing counseling services and enhance coordination among their counseling providers.

HUD will award grants to approximately 400 applicants. Applications may be downloaded from HUD’s website including instructions on submitting proposals via Federal Express (FedEx), United Parcel Services (UPS), and the U.S. Postal Service. Applications must be postmarked on or before July 17th and received by the designated reviewing office within five days.

About the Department of Housing and Uirban Development

HUD is the nation’s housing agency committed to sustaining homeownership, particularly among minorities; creating affordable housing opportunities for low-income Americans; and supporting the homeless, elderly, people with disabilities and people living with AIDS. The Department also promotes economic and community development, and enforces the nation’s fair housing laws. More information about HUD and its programs is available on the Internet at www.hud.gov and espanol.hud.gov.

WASHINGTON - U.S. Housing and Urban Development Secretary Shaun Donovan today announced HUD is allocating $3.7 billion in disaster aid to 11 States to help them recover from dozens of natural disasters last year. The emergency funding will support the States’ long-term disaster recovery and is in addition to $2.4 billion HUD already allocated through its Community Development Block Grant (CDBG) Program. Donovan announced the additional funding following a tour of flood-damaged areas of Cedar Rapids, Iowa with Agriculture Secretary Tom Vilsack, Governor Chet Culver and Congressman David Loebsack.

Donovan also announced that nearly $312 million is available to States that spend their existing funding on programs that reduce potential damages from future disasters. This Disaster Recovery Enhancement Fund is designed to encourage States to design forward-thinking recovery plans that will reduce the risks of loss of life and the extent of future damage.

The following states are receiving additional disaster recovery funds from HUD:

State		Today’s Allocation	Prior 2008 Allocations	Total
Texas		$1,743,001,247	$1,314,990,193	$3,057,991,440
Louisiana		$620,467,205	$438,223,344	$1,058,690,549
Iowa		$516,713,868	$281,987,957	$798,701,825
Indiana		$253,340,079	$162,055,588	$415,395,667
Illinois		$127,207,128	$59,325,555	$186,532,683
Missouri		$78,625,549	$25,012,379	$103,637,928
Wisconsin		$75,200,572	$49,097,341	$124,297,913
Tennessee		$71,881,834	$20,636,056	$92,517,890
Arkansas		$70,181,041	$25,042,358	$95,223,399
Florida		$63,606,850	$17,457,005	$81,063,855
California		$39,531,784	n/a	$39,531,784
TOTAL		$3,659,757,157	$2,393,827,776	$6,053,584,933

“These States are enduring tremendous hardships as they try to piece together their local communities following last year’s natural disasters,” said Donovan. “Our job is to support them in any way possible and to encourage them to take positive steps toward reducing the risk of catastrophe in the future.”

Last September, Congress appropriated more than $6 billion in supplemental funding for “necessary expenses related to disaster relief, long-term recovery, and restoration of infrastructure, housing and economic revitalization in areas affected by hurricanes, floods, and other natural disasters occurring during 2008.” There were 76 major disasters that occurred in 2008 in 35 States, Puerto Rico and the U.S. Virgin Islands. These disasters included the Midwest floods, Hurricanes Gustav and Ike, and the California wildfires. HUD quickly allocated a third of this funding and today the Department is announcing the balance of this disaster recovery funding.

In determining the allocations announced today, HUD focused on two factors:

Combined unmet housing, infrastructure and business needs

This is each State’s relative share of these estimated unmet needs based on available data provided by the Federal Emergency Management Agency (FEMA) and the Small Business Administration (SBA); and,

Recovery Challenge Risk Level

HUD has estimated the relative level of recovery challenges confronting these States. To do this, HUD used information from the 2005 Hurricanes to estimate what factors predicted if a household would be displaced for an extended period of time and how long it takes for a neighborhood to recover. That analysis found that the extent of concentrated neighborhood damage and the severity of damage to particular properties are very good predictors for long-term vacancy.

Disaster Recovery Enhancement Fund

HUD is creating a $312 million Disaster Recovery Enhancement Fund to encourage States to undertake long-term disaster strategies that focus on reducing the risk of damage from future natural disasters. This fund is reserved for States that spend their CDBG funds on specific disaster recovery activities likely to reduce the extent of damage in the future. These projects may include:

• Buyout payments for homeowners living in high-risk areas;
• Optional relocation payments to encourage residents to move to safer locations;
• Home improvement grants to reduce damage risks (property elevation, reinforced garage doors and windows, etc.);
• Improving and enforcing building codes; and
• Developing forward-thinking land-use plans that reduce development in high-risk areas.

Since 1992, HUD’s CDBG Program has allocated approximately $31 billion to support the long-term disaster recovery of state and local governments, as well as tribal governments.

About the Deparment of Housing and Urban Development

WASHINGTON- Department of Housing and Urban Development (HUD) Secretary Shaun Donovan and the National Fair Housing Alliance (NFHA) rolled out their national media campaign to fight foreclosures and discrimination.

NFHA and HUD have partnered to create a national media campaign that informs consumers about alternatives to foreclosure, how to avoid predatory loan terms and how to recognize and report rental discrimination. NFHA’s members nationwide, the Leadership Conference on Civil Rights, and other groups will assist with distributing the materials.

“Many families, particularly minorities, have been victims of aggressive and misleading marketing of risky loan products and foreclosure rescue scams,” said HUD Secretary Donovan. “As we implement President Obama’s Making Home Affordable plan to deal with the foreclosure crisis we need to ensure that families in trouble with their mortgages are not hurt a second time with scams. Foreclosure scams are destructive, devastating, and deceptive, and I’m thrilled that the National Fair Housing Alliance, in partnership with HUD is launching an ad campaign to address the fair housing challenges in the foreclosure crisis, including predatory lending and foreclosure scams.”

Secretary Donovan spoke at NFHA’s annual conference “Fair Housing in the 21st Century: Realizing a More Perfect Union” at the Hyatt Regency Capitol Hill in Washington, DC.

“Today, we are witnessing the devastating effects of the foreclosure crisis in communities across the country – a loss of wealth and housing security, depleted tax-bases, reduced social and municipal services, and less funding for schools,” said Shanna L. Smith, NFHA President and CEO. “Every day, communities of color and lower-income borrowers are disproportionately shouldering the fallout of years of abusive and predatory lending. We are happy to be able to partner with HUD today to make sure all families know their rights.”

The campaign is designed to target: (1) families in immediate need to refinance; (2) families in or on the brink of foreclosure; (3) families facing eviction or already in the rental market: and (4) families ready to purchase a home.

The media campaign includes print ads and posters addressing foreclosure prevention, predatory lending and rental discrimination in English, Spanish and Chinese; television public service announcements (PSA) in English and Spanish; radio PSAs in English and Spanish; a movie slide; and an airport diorama. In total, 26 products with some variations in English, Spanish and Chinese will be produced for this campaign.

Foreclosure prevention – Materials drive consumers to the Making Home Affordable website (www.makinghomeaffordable.gov), where consumers can learn about alternatives to foreclosure, get linked to HUD-certified housing counseling agencies, and reach their servicers.

Anti-Predatory Lending – Materials drive consumers to HUD’s website at www.hud.gov/fheopredatorylending. There, consumers can learn how to access the media campaign materials, information, website links and contact information for government, public and private groups/businesses about mortgage lending opportunities and how to recognize and report lending discrimination.

Rental Housing Discrimination – Materials drive consumers to HUD’s website at www.hud.gov/fairhousing. Consumers will be more aware of how to recognize and report rental discrimination and find links to government and non-profit enforcement and counseling agencies.

The Fair Housing Act prohibits housing discrimination on the basis of race, color, national origin, religion, sex, familial status and disability. It also covers all housing transactions and services, including advertising, rentals, sales, lending, and insurance, as well as harassment.

WASHINGTON – A record 10,552 fair housing discrimination complaints were filed in fiscal year 2008, according to a report just released by the U.S. Department of Housing and Urban Development. The report, which is produced for Congress each year, shows that a large portion of the complaints, 44 percent, were filed by persons with disabilities. Thirty-five percent, or 3,699, of the complaints alleged discrimination based on race.

“Despite progress, housing discrimination continues in America. We must put a stop to it and stand up for anyone who is unlawfully denied a home of their own,” said John Trasviña, HUD Assistant Secretary for Fair Housing and Equal Opportunity. “Fighting against housing discrimination and affirmatively furthering fair housing are twin priorities of HUD and the Obama Administration.”

The report describes HUD’s enforcement activities that resulted in housing and monetary relief for individuals subjected to illegal discrimination, as well as fines and required education for entities charged with discrimination. For example, HUD obtained:

• A loan modification for a Hispanic couple that included forgiveness of the entire amount of the second loan, approximately $75,000; provision of a 5 percent fixed interest-rate mortgage; and waiver of all closing costs, points, and fees associated with the loan modification.
• A $20,000 settlement for a mother who was denied the opportunity to rent a house because she had a child.
• A $40,000 settlement for a family with a disability that was denied a reasonable accommodation for their child. In addition, $2,500 was donated to an autism group and another $2,500 to an early childhood development center.

In addition, the report also shows the importance of the partnership between HUD and its FHIPs, private fair housing groups and FHAPs, state and local agencies. “HUD has an array of weapons to combat housing discrimination,” said Trasviña. “Most important are the partnerships with state, local and other agencies, private fair housing organizations and responsible industry officials who, together with HUD are on the front lines to advance fair housing and fair lending policies.”

People who believe they are the victims of housing discrimination should contact HUD at 1-800-669-9777 (voice), 800-927-9275 (TTY). Additional information is available at www.hud.gov/fairhousing.

About the Department of Housing and Urban Development

HUD is the nation’s housing agency committed to sustaining homeownership; creating affordable housing opportunities for low-income Americans; and supporting the homeless, elderly, people with disabilities and people living with AIDS. The Department also promotes economic and community development and enforces the nation’s fair housing laws. More information about HUD and its programs is available on the Internet at www.hud.gov and espanol.hud.gov.

WASHINGTON – Speaking to the National Association of Home Builders Spring Board of Directors Meeting, U.S. Housing and Urban Development Secretary Shaun Donovan today announced that the Federal Housing Administration (FHA) will allow homebuyers to apply the Obama Administration’s new $8,000 first-time homebuyer tax credit toward the purchase costs of a FHA-insured home. Donovan said that today’s action will help stabilize the nation’s housing market by stimulating home sales across the country.

The American Recovery and Reinvestment Act of 2009 offers homebuyers a tax credit of up to $8,000 for purchasing their first home. Families can only access this credit after filing their tax returns with the IRS. The announcement details FHA’s rules allowing state Housing Finance Agencies and certain non-profits to ‘monetize” up to the full amount of the tax credit (depending on the amount of the mortgage) so that borrowers can immediately apply the funds toward their down payments. Home buyers using FHA-approved lenders can apply the tax credit to their down payment in excess of 3.5 percent of appraised value or their closing costs, which can help achieve a lower interest rate. To read the FHA’s new mortgagee letter, visit HUD’s website.

“We believe this is a real win for everyone,” said Donovan. “Today, the Obama Administration is taking another important step toward accelerating the recovery of the nation’s housing market. Families will now be able to apply their anticipated tax credit toward their home purchase right away. At the same time we are putting safeguards in place to ensure that consumers will be protected from unscrupulous lenders. What we’re doing today will not only help these families to purchase their first home but will present an enormous benefit for communities struggling to deal with an oversupply of housing.”

Currently, borrowers applying for an FHA-insured mortgage are required to make a minimum 3.5 percent downpayment on the purchase of their home. Current law does not permit approved lenders to monetize the tax credit to meet the required 3.5 percent minimum down payment, but, under the terms of today’s announcement, lenders can now monetize the tax credit for use as additional down payment, or for other closing costs, which can help achieve a lower interest rate. Buyers financing through state Housing Finance Agencies and certain non-profits will be able to use the tax credit for their downpayments via secondary financing provided by the HFA or non-profit. In addition to the borrower’s own cash investment, FHA allows parents, employers and other governmental entities to contribute towards the downpayment. Today’s action permits the first-time homebuyer’s anticipated tax credit under the Recovery Act to be applied toward the family’s home purchase right away. Unlike seller-funded down-payment assistance, which was a vehicle for abuse, this program will allow homebuyers to shop for the best home price and services using their anticipated tax credit.

According to estimates by the National Association of Home Builders, the Administration’s homebuyer tax credit will stimulate 160,000 home sales across the nation – 101,000 of which will be first-time buyers who will receive the credit. Another 59,000 existing homeowners will be able to buy another home because a first-time buyer purchased their home. Given FHA’s current market share, it’s estimated that thousands of families will be able to purchase a home by allowing the anticipated tax credit to be applied toward their purchase together with an FHA-insured mortgage.

Homebuyers should beware of mortgage scams and carefully compare benefits and costs when seeking out tax credit monetization services. Programs will vary from organization to organization and borrowers should consider whether the services make sense for them, as well as what company offers the most suitable and affordable option.

For every FHA borrower who is assisted through the tax credit program, FHA will collect the name and employer identification number of the organization providing the service as well as associated fees and charges. FHA will use this information to track the business closely and will refer any questionable practices to the appropriate regulatory agencies, as necessary.

WASHINGTON – The U.S. Department of Housing and Urban Development today announced that more than $117 million is available to eliminate dangerous lead-based paint hazards from lower income homes and protect young children from lead poisoning. The grants are being offered to States and local governments through HUD’s Lead-Based Paint Hazard Control and Lead Hazard Reduction Demonstration Programs.

“There is nothing more important than the health and safety of our children, and these grants are a significant investment in their futures,” said HUD Secretary Shaun Donovan. “These grants will support the efforts of state and local governments to clean up lead hazards in order to protect young children and their families from the lasting effects of lead poisoning.”

Even though lead-based paint was banned for use in the home in 1978, HUD estimates that approximately 24 million homes still have significant lead-based paint hazards today. Lead-contaminated dust is the primary cause of young children’s lead exposure and can lead to a variety of health problems, including reduced IQ, learning disabilities, developmental delays, reduced height, and impaired hearing. At higher levels, lead can damage a child’s kidneys and central nervous system and cause anemia, coma, convulsions and even death.

Applicants for this funding may be State, Tribal or local governments. Applications may be downloaded from the Office of Healthy Homes and Lead Hazard Control’s Website at www.hud.gov/lead. The application provides instructions, including submitting proposals by Federal Express (FedEx), United Parcel Services (UPS) and overnight Express Mail delivery services. The deadline for receiving grants is 5:00 PM EST, July 20, 2009.

This year, HUD is announcing individual funding opportunities for programs as they become available, an action that will speed up the application process for those seeking HUD funding and who would otherwise be required to wait for the publication of HUD’s comprehensive funding notice for all its competitive grant programs.

About the Deparment of Housing and Urban Development

HUD is the nation’s housing agency committed to sustaining homeownership, particularly among minorities; creating affordable housing opportunities for low-income Americans; and supporting the homeless, elderly, people with disabilities and people living with AIDS. The Department also promotes economic and community development, and enforces the nation’s fair housing laws. More information about HUD and its programs is available on the Internet at www.hud.gov and espanol.hud.gov.

Washington – Following a tour of the Esperanza Community Housing Corporation in South Central Los Angeles, Vice President Biden today announced that the U.S. Department of Housing and Urban Development is making nearly than $100 million in Recovery Act funding available to help eliminate dangerous lead-based paint and other health and safety hazards from low-income homes. HUD’s grants will help 53 local programs in 20 states and the District of Columbia to protect young children from lead poisoning and create jobs. To view a summary of local programs funded through the Recovery Act, visit HUD’s website.

The Vice President was joined by Los Angeles Mayor Antonio Villaraigosa, Rep. Xavier Becerra and U.S. Department of Housing and Urban Development Deputy Secretary Ron Simms on the visit to Esperanza Community Housing Corporation, which is receiving $875,000 to help identify and clean up lead and other health hazards in 225 homes in Los Angeles.

“It is unacceptable that some 40 percent of homes in this country still contain lead-based paints, the majority of which are in low-income areas where homes have not been renovated in decades,” said Vice President Biden. “These are our children, our next generation – and thanks to the Recovery Act, we are investing in their future by reducing lead paint in their homes, educating their families about its abundant hazards and improving the safety of the communities they grow up in.”

“In making these grants available today, the Department is acknowledging the importance of healthy homes and protecting our children from dangerous lead hazards,” said HUD Deputy Secretary Sims. “And not only will this program contribute to healthy, safe homes for all children and families, which is a top priority for HUD, but it will also support shovel-ready projects that are essential to getting Americans back to work and fixing the nation’s economic crisis quickly and efficiently.”

Funded through the American Recovery and Reinvestment Act of 2009 (Recovery Act), which was signed into law by President Obama on February 17, the grants to States and local governments are being offered by HUD’s Office of Healthy Homes and Lead Hazard Control. The recipients of these Recovery Act grants were qualified applicants in the FY08 funding cycle but were not initially awarded grants because of the limited number of funds available at that time. The grants will contribute to President Obama’s mission under the Recovery Act to create and sustain jobs and jumpstart the nation’s economy.

The Recovery Act includes $13.61 billion for projects and programs administered by HUD, nearly 75 percent of which was allocated to state and local recipients only eight days after President Obama signed the Act into law. The remaining 25 percent of funds will be awarded through a competitive grant process in the coming months. HUD is committed to implementing Recovery Act investments swiftly, but also effectively as they generate tens of thousands of jobs, modernize homes to make them energy efficient, and help the families and communities hardest hit by the economic crisis.

In addition, Secretary Donovan and the Department are committed to providing the highest level of transparency possible as Recovery Act funds are administered. It is vitally important that the American people are fully aware of how their tax dollars are being spent and can hold their federal leaders accountable. Every dollar of Recovery Act funds HUD awards can be reviewed and tracked at HUD’s Recovery Act website. The full text of HUD’s funding notices and tracking future performance of these grants is also available at HUD’s Recovery Act website.

About the Department of Housing and Urban Development

HUD is the nation’s housing agency committed to increasing homeownership, particularly among minorities; creating affordable housing opportunities for low-income Americans; and supporting the homeless, elderly, people with disabilities and people living with AIDS. The Department also promotes economic and community development, and enforces the nation’s fair housing laws. More information about HUD and its programs is available on the Internet at www.hud.gov and espanol.hud.gov.