Government Assistance Programs can Help You Rebuild Your Home after a Disaster
Tornadoes, earthquakes, hurricanes, wildfires, superstorms. Natural disasters can strike anywhere in the country at any time of the year, and with disastrous results to lives and property. Immediately after disaster strikes, the process of recovery begins. A key step in this process is the declaration by government officials of a disaster area. This declaration opens up many paths to government funding to help homeowners rebuild or start over when a natural disaster has damaged or destroyed their home. Here are some of the ways the government can help.
Low-Interest Loans
Financial assistance may help you rebuild after a disaster in the form of low-interest, long-term loans from the government. Although administered through the Small Business Administration in conjunction with FEMA, an SBA Disaster Recovery Loan is available for homeowners as well as small businesses to recover after a declared disaster. Under this program, homeowners may borrow up to $200,000 to repair or replace a primary residence, along with up to an additional $40,000 to repair or replace personal property.
Programs are currently available for victims of Hurricane Maria, Hurricane Irma and Hurricane Harvey. You can find out if you are eligible and apply online at the SBA disaster assistance website.
Grants
Taking out a loan is not the only way to get government help. If you don’t have sufficient insurance to cover the costs of your home repair or rebuilding, you may be eligible for a grant or direct assistance from the Individuals and Households Program. While you are not required to accept an SBA Disaster Recovery Loan to receive this government assistance, it may help you in the competitive process of demonstrating grant eligibility.
Tax Relief
Taxpayers can obtain tax relief for casualty losses caused by presidentially declared disasters. Visit the IRS Tax Relief in Disaster Situations website to see if you qualify after one of the recent hurricanes or other disasters caused by storms, tornadoes, straight-line winds and flooding across the south and other areas of the U.S. Tax relief may also be had through the Disaster Assistance and Emergency Relief Program.
Disaster-Specific Programs
A FEMA Sheltering and Temporary Essential Power (STEP) program currently provides $10 million in grants to homeowners in the Florida Keys to repair their primary homes which were damaged yet not completely destroyed by Hurricane Irma. The idea behind the STEP program is to provide urgent repairs to make the house livable while fuller repairs are undertaken. For example, funds could be used to ensure the house has a functional kitchen, bathroom and sleeping area, and heating or air conditioning as needed.
This rapid repair program offers assistance for homes that can be made livable for $20,000 or less. Single family, owner-occupied residences damaged by disaster in Monroe County (the Florida Keys) are eligible for assistance. Funds are paid to the county, which pays for the repairs. For more information, call 1-800-960-5860 or visit the Monroe County website.
To learn more about all the government resources that may be available to help you rebuild after a disaster, find the nearest Disaster Recovery Center by entering your address at the FEMA Disaster Recovery Center Locator. You can also visit DisasterAssistance.gov to find local assistance, apply for assistance online, or track the status of your claim. Current programs offer assistance to homeowners in certain California counties ravaged by wildfires, in addition to assistance for homeowners in communities hard hit by Hurricane Maria. To date, the government has approved over $661 million to more than 350,000 individuals and households in Puerto Rico, and over $20 million to 7,539 individuals and households in the U.S. Virgin Islands.
