The


Federal
Housing
Administration
(FHA)
on
Friday
announced
two
new
key
responses
to
its
ongoing
disaster
recovery
efforts
in
the
wake
of
an
accelerating
trend
of
extreme
weather
events.
These
include
an
extension
of
a
foreclosure
moratorium
for
victims
of
hurricanes
Helene
and
Milton,
as
well
as
a
new

pre-disaster
housing
partnership
with
the


Federal
Emergency
Management
Agency
(FEMA).

FHA
formalized
the
foreclosure
moratorium
extension
in
Mortgagee
Letter
(ML)
2024-25,
requiring
lenders
to
immediately
implement
the
extension
that
is
now
set
to
expire
on
April
11,
2025.

“This
extension
provides
homeowners
with
FHA-insured
mortgages
in
Presidentially
Declared
Major
Disaster
Areas
(PDMDAs)
additional
time
to
access
federal,
state,
or
local
housing
resources;
consult
with
HUD-approved
housing
counselors;
and/or
rebuild
their
homes,”
FHA
said
in
its
announcement.

The
extensions
are
warranted
due
to
the
sweeping
devastation
caused
by
the
back-to-back
impact
of
the
hurricanes,
including
“extensive
property
damage
sustained,
and
the
reduced
capacity
for
those
impacted
to
access
needed
resources,”
FHA
explained.

Several
localities
across
the
states
of
Florida,
Georgia,
North
Carolina,
South
Carolina,
Tennessee
and
Virginia
are
currently
designated
as
PDMDAs
due
to

Helene
and
Milton.

“When
disaster
strikes,
we
know
that
families
and
communities
need
not
only
resources,
but
time
to
recover,”
said

Adrianne
Todman,
acting
secretary
of
the


U.S.
Department
of
Housing
and
Urban
Development
(HUD).
“Today,
by
extending
our
foreclosure
moratorium,
we
continue
the

Biden-Harris
administration’s
efforts
to
help
those
affected
by
the
catastrophic
Hurricanes
Helene
and
Milton
to
repair
and
rebuild
their
homes,
communities,
and
lives.”

While
an
automatic
90-day
foreclosure
moratorium
was
imposed
in
the
immediate
aftermath
of
the
storms,
the
extent
of
the
damage
and
impact
for
residents
necessitates
the
extension,
the
agency
explained.
FHA
is
also
extending
deadlines
for

servicers
to
“perform
certain
legal
actions
related
to
foreclosure
for
an
additional
180
days
following
the
end
of
the
foreclosure
moratoriums.”

“Because
the
consecutive
Hurricanes
Helene
and
Milton
caused
a
great
deal
of
damage
and
disruption,
FHA
believes
it
is
appropriate
to
extend
our
foreclosure
moratoriums
by
120
days,”
FHA
Commissioner

Julia
Gordon
said
in
a
statement.
“This
extension
will
provide
more
time
for
homeowners
to
review
a
range
of
options
with
their
mortgage
servicer
if
they
are
unable
to
resume
regular
mortgage
payments
due
to
the
impact
of
the
disaster.”

Additionally,
HUD
announced
a
new
partnership
with
FEMA
that
is
designed
to
expand
post-disaster
housing
efforts
by
establishing
the
“Pre-Disaster
Housing
Initiative.”
This
targets
specific
states
with
preemptive
assistance
in
case
a
disaster
strikes.

“During
an
eight-month
period,
both
agencies
will
provide
technical
assistance
and
guidance
to
Kentucky,
Michigan,
and
Missouri
state
officials
and
emergency
managers
to
maximize
housing-centric
planning
that
can
help
mitigate
potential
housing
shortfalls
in
communities
when
disasters
strike,”
FHA
said
in
its
announcement.

These
particular
states
were
chosen
because
they
“provide
a
wide
cross
section
of
perspectives
on
the
challenges
of
planning
and
executing
post-disaster
housing
missions,”
the
agency
explained.
These
attributes
include
geographic
diversity,
a
higher
frequency
of
disaster
declarations,
and
the
types
of
disasters
they
and
other
surrounding
states
are
likely
to
face.

Each
state
will
have
the
chance
to
establish
their
own
priorities
and
expected
outcomes.
They’re
expected
to
engage
with
their
local
communities
during
the
process
“to
develop
a
disaster
housing
strategy
that
can
be
executed
when
needed,”
according
to
FHA.

Todman
added
in
a
statement
that
the
agencies
will
not
simply
wait
for
another
disaster
to
strike
before
acting,
since
preemptive
action
can
make
a
pronounced
difference
in
mitigating
challenges
stemming
from
disasters.

“[W]hen
disasters
do
strike,
we
have
an
obligation
to
help
communities
rebuild,”
she
said.
“That’s
why
I
am
calling
on

Congress
to
move
swiftly
to
approve
the
president’s

$12
billion
request
for
HUD’s
disaster
recovery
funding,
so
we
can
help
Americans
rebuild
their
homes,
now.”

The
interagency
partnership
can
also
help
to
strengthen
ties
between
HUD
and
FEMA,
according
to
Colt
Hagmaier,
FEMA’s
assistant
administrator
for
recovery.

“This
partnership
remains
a
priority
for
both
FEMA
and
HUD
and
we
are
thrilled
to
see
the
exponential
impacts
of
this
initiative
throughout
the
nation,”
he
said
in
a
statement.

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