Recovery Loans Available for Storm Damage
April 20, 2007
AUGUSTA – Governor John Baldacci today announced that the Maine State Housing Authority will be offering low-interest loans for families whose homes were damaged or destroyed by the Patriots’ Day Storm.
“This program was created to give families a fast response, to make money for repairs available as soon as possible,” Governor Baldacci said. “It’s difficult to comprehend the damage some areas of the state have suffered unless you see it up close. We were hit hard and a lot of people need help. This will give them a place to turn.”
The Maine Housing Disaster Recovery Loan program was started last year after a damaging spring storm struck York County.
The loans will be available to residents in any county that is declared a disaster area by the federal government. Once the declaration has been made, the loans will be available.
Governor Baldacci discussed the program after meeting Friday with Federal Emergency Management Agency Director R. David Paulison in Portland.
The Governor and Paulison discussed disaster response and recovery before being briefed about storm damage in Portland and traveling to areas in York County that were hit by the storm.
Loans are available for both home repair and replacement. Home repair loans of up to $15,000 are available at 3 percent interest for families who qualify. Home replacement loans of up to $303,000 are available at 5.3 percent interest.
There are income restrictions on the loans. In York County, for example, household income cannot exceed $75,000; in Cumberland County, the threshold is $78,000.
Loans from the program are made through participating local banks. Kennebunk Savings Bank is partnering with the Maine State Housing Authority for York County residents. MSHA is working to bring additional partner banks into the program for other counties.
For more information about the loan program, people can contact their local banks or call the Maine State Housing Authority at 626-4600 or toll free at 1-800-452-4603.