State offering loans to homeowners affected by flooding

Recognizing that most insurance companies no longer offer flood coverage, State Treasurer Alex Giannoulias recently announced a new state program to help homeowners in Cook and Kane counties affected by the recent flooding with cleanup costs.

Homeowners are still cleaning up, two weeks after Illinois was hit with heavy rainfall and massive flooding that resulted in many communities being declared disaster areas.

The loan program couldn’t have come at a better time for Debra Jackson, 45, a homeowner in south suburban Harvey.

“My basement got flooded, and I lost everything down there,” Jackson told the Defender. “I don’t have any insurance so I was out of luck when it came to my items. But thanks to the state I may be able to get some of my stuff back.”

But other homeowners who do have insurance said while it’s nice that the state is making an effort to help residents, more needs to be done.

“I am looking at about $40,000 in water damage, and I know my insurance is not going to cover everything,” said Will Paige, 35, a homeowner in west suburban Forest Park.

“It would be better if these were not loans but grants that we do not have to pay back. Homeowners are already having it rough with subprime loans so why would the state offer us yet another loan to repay?”

Through the State Treasurer’s office, residents who expect insurance to cover their damages can qualify for one-year bridge loans with interest-only payments. The loans are designed so they can be paid off in one lump sum when insurance or aid comes through.

Underinsured residents can qualify for low-interest loans with repayment terms of up to five years. The underinsured storm victims must make payments on the interest and principal for loans exceeding one year.
Also, loans with terms longer than two years require a compliance review.

Giannoulias said there was no time to seek non-repayable grants to help homeowners because help was needed right away.

“Many times, storm victims need to make immediate repairs to their homes while they wait for insurance or aid payments,” he said. “We help them obtain affordable rates so they can rebuild and get their lives back on track without delay.”

Under the Opportunity Illinois: Disaster Recovery Loan Program, the Treasurer’s office obtains below-market interest rates for storm victims in declared disaster areas.

The homeowners would then finance their disaster repairs through participating lenders.

Cook County Board President Todd Stroger declared a state of emergency on Sept. 14 after eight inches of rain damaged buildings and roadways and led to many flood-related displacements.

The formal declarations, which make Kane and Cook counties eligible for the Opportunity Illinois: Disaster Recovery Program, are the first step toward obtaining federal assistance, Stroger said.

For more information, call the Disaster Recovery hotline at (866) 523-0641 or email opportunityillinois@treasurer.state.il.us.

______

suburbs

This is great for those than can afford to take on additional expenses, however what about the homeowners that already have a hardtime with meeting expenses. Also I would like to know where is FEMA for our communities. For the last week I've read and watched on the news where they have visited areas in the northern areas of chicago, but what about homeowners that sustained damage from the south sides of Chicago to the south suburban areas. It's as though those areas were not affected and yet they were but clearly are not getting the media attention or the Federal Assistance that is needed. I am sympathetic but it is disheartening watching on the news where they show people who's damage was limited to their basements only and still have their property damaged assessed by FEMA. My self and other neighbors sustained damage to our basements as well and the bottom line is it doesn't matter if you had 12 inches of sewer water or more ultimately the same risk are involved mold and inhabitable living conditions. Loss of appliances and furnaces the list goes on and on. One of my neighbors is an eldery lady that lives alone and all she can do is cry because she is on a fixed income and her basement is ruined. She can't afford a loan. We need help!

State offering loans to homeowners affected by flooding

Also in OUR CITY: