Since Aug. 13, the U.S. Department of Housing and Urban Development (HUD) has announced disaster relief efforts across six states due to presidentially declared major disasters resulting from a hurricane, flooding, tornadoes and landslides.
A few days after President Joe Biden issued a major disaster declaration in Florida stemming from Hurricane Denby, HUD announced the implementation of federal disaster assistance for the counties of Columbia, Dixie, Gilchrist, Hamilton, Lafayette, Levy, Manatee, Sarasota, Suwannee and Taylor. The aid includes grants for temporary housing and home repairs along with low-cost loans to cover uninsured property losses.
Six days later, a similar announcement followed in South Dakota due to severe weather there, which impacted an estimated 28% of the state’s total area. Severe storms, straight-line winds and flooding were among the weather events across the state.
Two days after that, the president issued a similar disaster declaration in both Nebraska and Kansas. In Nebraska, HUD described the weather events as “severe storms, straight-line winds, tornadoes and flooding,” which occurred in mid-May. In Kansas, residents were impacted by “a severe storm, straight-line winds, tornadoes, and flooding” on May 19.
On Aug. 23, the president issued another disaster declaration for the state of Vermont resulting from more severe weather that occurred from July 9-11, including a storm, mudslides, landslides and flooding. And on Monday morning, HUD issued a new disaster aid notice for New Hampshire that is tied to similarly severe weather from July 10-13.
Each state included in these relief efforts has received a 90-day moratorium on foreclosures of mortgages insured by the Federal Housing Administration (FHA), as well as foreclosures of mortgages to Native American borrowers under the Section 184 Indian Home Loan Guarantee program.
There is also a 90-day extension automatically granted for federally insured reverse mortgages through the Home Equity Conversion Mortgage (HECM) program. This relief, including the moratorium and extension, applies for 90 days following the date of the disaster declaration issued by the White House.
Severe weather is more regularly interacting with the fundamentals of the housing market, particularly on the topic of insurance. Major carriers have been reassessing the viability of business in certain states that are more prone to severe weather events, while heightened costs have been passed on to consumers in ways that advocates argue is unsustainable.
A report published last month by Matic found that home insurance premiums have risen by as much as $865 this year for homeowners who originally purchased their policies in 2021. The mortgage industry and federal regulators are aiming to determine the best courses of action to mitigate the financial burdens on both homeowners and insurance carriers.
Lawmakers have taken notice in dedicated congressional hearings and in policy statements, particularly as voters express concerns about housing ahead of this fall’s general election.
From presidential to congressional candidates, housing has become an important issue for the electorate. More than 20 federal agencies recently updated their climate adaptation plans, with HUD highlighting the steps it is taking to increase the stock of climate-resilient and energy-efficient homes.
