IRS & HUD Aid for Flood Victims

Low-income communities throughout Colorado have been especially hard-hit by the torrential rains, which have caused eight deaths, destroyed an estimated 1,800 homes, and caused $2 billion in property losses. As a result, the Internal Revenue Service is temporarily waiving some of its rules for low-income housing projects so that owners and operators of low-income housing facilities will be able to provide temporary emergency housing to Colorado families who have been displaced by the recent storms and flooding. Specifically, the IRS will not enforce income limits on displaced persons in need of housing.

Additionally, the U.S. Department of Housing and Urban Development (HUD) is providing support to homeowners and low-income renters forced from their homes due to severe storms, flooding, landslides and mudslides. Among other actions, HUD granted a 90-day moratorium on foreclosures and forbearance on foreclosures of Federal Housing Administration (FHA)-insured home mortgages.

If you have questions about how this might affect you, please see the following IRS and HUD announcements:

Source: Legal Alert on Aid for Flood Victims provided by Peck, Shaffer & Williams LLP