U.S. Housing and Urban Development Secretary Shaun Donovan, who also chairs President Obama's Hurricane Sandy Rebuilding Task Force, today announced that the Federal Housing Administration (FHA) will speed the approval of applications of multifamily apartment owners in New York and New Jersey seeking to refinance their mortgages, substantially rehabilitate their properties or construct new developments in areas impacted by Hurricane Sandy.
Effective immediately, the streamlined approval process announced today is intended to accelerate access to mortgage financing for apartment owners and to facilitate recovery in the multifamily residential sector in both states that were especially hard hit by Sandy.
"Today's announcement is intended to make certain that those multifamily apartment owners in New York and New Jersey get priority treatment when applying for FHA-insured mortgages," said Donovan. "We have to do everything we can to support the long-term rebuilding efforts in these impacted areas to the greatest degree we can and this is one way we can."
On December 7, 2012, the President issued an Executive Order establishing the Hurricane Sandy Rebuilding Task Force and directed Donovan to lead the Task Force and, to the extent permitted by law, align relevant programs and authorities with a long-term rebuilding plan that supports the region's economic vitality, enhance infrastructure, and ensure appropriate accountability. Accordingly, the notice issued today applies to any multifamily project applying for mortgage insurance in presidentially declared disaster areas in New York or New Jersey, whether or not the property was directly damaged by the recent storms.