WASHINGTON - U.S. Housing and Urban Development (HUD) Secretary Shaun Donovan and Iowa Attorney General Tom Miller will host a press call tomorrow announcing the latest consumer education efforts for the historic $25 billion mortgage servicing settlement. In April, a Federal District Court approved The Justice Department, The Department of Housing and Urban Development and 49 state attorneys general landmark $25 billion agreement with the nation's five largest mortgage servicers (Ally/GMAC, Bank of America, Citi, JP Morgan Chase, and Wells Fargo) to address mortgage loan servicing and foreclosure abuses. The settlement will provide up to $25 billion in relief to borrowers and direct payments to the states and federal government. This settlement is the largest multi-state settlement since the Tobacco Settlement in 1998.

WHO:            U.S. Housing and Urban Development Secretary Shaun Donovan and Iowa Attorney General Tom Miller

WHAT:          Press Conference Call with HUD Secretary Donovan and Iowa Attorney General Miller Announcing Latest Consumer Education Efforts

In addition to this capital advance, three-year rental subsidy will help cover rent and operating costs

WASHINGTON - More very low-income senior citizens in Iowa will have access to affordable supportive housing thanks to $2.3 million in housing assistance announced today by the U.S. Department of Housing and Urban Development (HUD). These funds will help non-profit organizations produce accessible housing, offer rental assistance, and facilitate supportive services for the elderly

The grant funding awarded under HUD's Sections 202 Supportive Housing program will kick start construction or major rehabilitation for more than 97 housing developments in 42 different states and Puerto Rico.  In Iowa, 15 additional elderly households will be affordably housed with access to needed services in Burlington where "West Central Illinois Area Agency on Aging" was awarded $2,147,500.

"The Obama Administration is committed to helping our senior citizens find a decent, affordable place to live that is close to needed healthcare services and transportation," said HUD Secretary Shaun Donovan.  "Recent bipartisan changes to HUD's supportive housing programs will allow us to better serve some of our more vulnerable populations who would otherwise be struggling to find a safe and decent home of their own."

In Burlington, the capital advance funds will be used to construct a single story 15 unit facility and an additional $156,300 three-year HUD rental subsidy will help cover rent and operating costs.  The one-bedroom units will feature adjustable height shelving, lever handles and be designed for wheelchair adaptability.  The project is in close proximity to a grocery store, wellness center, and other desirable neighborhood amenities.  Residents will have access to a daily door-to-door transport service.

Enacted early this year with strong bipartisan support, the Frank Melville Supportive Housing Investment Act and the Section 202 Supportive Housing for the Elderly Act provided needed enhancements and reforms to HUD's programs.  Nonprofit grant recipients will now receive federal assistance that is better connected to state and local health care investments, allowing greater numbers of vulnerable elderly individuals to access the housing they need even more quickly.

Section 202 Capital Advances will provide $545 million nationwide to 97 projects in 42 States and Puerto.  In addition to funding the construction, acquisition, and rehabilitation of multifamily developments, HUD's Section 202 program will also provide $54 million in rental assistance so that residents only pay 30 percent of their adjusted incomes.  Section 202 provides very low-income elderly persons 62 years of age or older with the opportunity to live independently in an environment that provides support services to frail elderly resident.

HUD provides these funds to non-profit organizations in two forms:

 

  • Capital Advances.  This is funding that covers the cost of developing, acquiring, or rehabilitating the development.  Repayment is not required as long as the housing remains available for occupancy by very low-income elderly persons for at least 40 years.

  • Project Rental Assistance Contracts.  This is funding that goes to each development to cover the difference between the residents' contributions toward rent and the cost of operating the project.

 

Residents must be "very low income" with household incomes less than 50 percent of their median for that area.  However, most households that receive Section 202 assistance earn less than 30 percent of the median for their area.  Generally, this means that a one-person household will have an annual income of about $13,500.

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Foreclosure protection offered to displaced families in two counties

WASHINGTON - U.S. Housing and Urban Development Secretary Shaun Donovan today announced HUD will speed federal disaster assistance to the State of Iowa and provide support to homeowners and low-income renters forced from their homes following last month's severe storms and flooding.

Yesterday, President Obama issued a disaster declaration for Dubuque and Jackson 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:

Ø  Offering the State of Iowa 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;

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

Ø  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;

Ø  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

Ø  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.

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WASHINGTON - The U.S. Department of Housing and Urban Development (HUD) today announced that it is charging John and Nancy Meany, owners of an apartment building in Traer, Iowa, with violating the Fair Housing Act for refusing to accommodate a request from a family with a child with cerebral palsy.  HUD brings the charge on behalf of the child and her mother, claiming the owners refused to allow the seven-year-old girl to have a medically-prescribed emotional support animal. Additionally, the owners allegedly told the mother that if she got the animal, she would have to either move or pay more money to stay.

The Fair Housing Act makes it unlawful for landlords to refuse a reasonable accommodation in their rules, policies, practices, or services when needed to provide persons with disabilities an equal opportunity to use or enjoy a dwelling. It is also against the law to impose different rules and restrictions on those who make such request, including charging them extra.

"Threatening parents with eviction for requesting an emotional support animal for a child with disabilities or charging more for having one is against the law," said John Trasviña, HUD Assistant Secretary for Fair Housing and Equal Opportunity. "HUD is committed to ensuring that landlords comply with fair housing laws and provide the accommodations that may be necessary for tenants with disabilities to have the same opportunities to enjoy their homes."

According to HUD's charge, the mother and her daughter were aware of the housing provider's "no-pet policy" when they moved in and did not contest it at that time.  Later, recalling that the Labrador retriever who previously lived with them had alleviated stress for her daughter, the mother asked the owners to permit the daughter to have a dog live with them, and provided documentation of the need for the animal from the daughter's pediatrician and therapist.  The owners denied the request, stating, "We are not intending to modify the 'no pet policy' on our property." The owners further stated that if the mother insisted on bringing the dog in to help her daughter to better cope with her condition, they would collect a $200 deposit and charge an extra $25 per month more for rent.

The mother and child eventually moved out of the building to another apartment, which cost more and was much farther from the child's school. 

HUD's charge will be heard by a United States Administrative Law Judge unless any party to the charge elects to have the case heard in federal district court. If an administrative law judge finds after a hearing that discrimination has occurred, he may award damages to aggrieved persons for the discrimination.

The judge may also order injunctive relief and other equitable relief to deter further discrimination, as well as payment of attorney fees. In addition, the judge may impose fines in order to vindicate the public interest. If the matter is decided in federal court, the judge may also award punitive damages to aggrieved persons.

FHEO and its partners in the Fair Housing Assistance Program investigate more than 10,000 housing discrimination complaints annually. People who believe they are the victims of housing discrimination should contact HUD at 1-800-669-9777 (voice), (800) 927-9275 (TTY).

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