Today in response to a question posed by Congresswoman Carolyn B. Maloney (D-NY) at a hearing of the Financial Services Committee, Federal Housing Administration (FHA) Commissioner Carol Galante announced that the Department of Housing and Urban Development (HUD) will streamline the approval of FHA loan applications of multifamily apartment owners in New York and New Jersey.
These expedited approvals will assist multifamily apartment owners seeking to refinance their mortgages and rehabilitate their building due to the severe impact caused by Superstorm Sandy. The streamlined process will be effective immediately in an effort to accelerate FHA refinancing and increase access to rental housing for low and moderate income families.
Rep. Maloney issued the following statement on HUD's decision:
"I strongly support HUD's actions in ensuring that those affected by Superstorm Sandy have all the resources available to rebuild and rehabilitate after such a devastating storm."
"The National Hurricane Center has just called Superstorm Sandy the second costliest in this nation's history, and the extraordinary damage caused by this storm clearly calls for an exceptional federal response. I applaud HUD for doing its part and answering the call to provide New Yorkers with the tools they need to continue their recovery."
Since Superstorm Sandy hit the Northeast, HUD has taken a number of steps to assist homeowners in their rebuilding process. In addition to the streamlined approvals for FHA loans, HUD has provided
* $1.7 billion in recovery funds to the state of New York;
* Foreclosure relief for families with FHA-insured loans;
* FHA insurance to disaster victims for both mortgages and home rehabilitation; and
* Loan guarantee assistance for economic development and repair of public infrastructure.