Fannie Mae Places 4,600 Katrina Evacuees in Rent-Free Housing; Company Fulfills Pledge to Provide 1,500 Properties
May 03 2007 - 11:00AM
PR Newswire (US)
WASHINGTON, May 3 /PRNewswire-FirstCall/ -- Fannie Mae announced on
Thursday that it has fulfilled its pledge to provide 1,500
single-family properties from its inventory of Real Estate Owned
(REO) for temporary housing for individuals and families displaced
by Hurricane Katrina. Nearly 4600 evacuees have been provided
temporary shelter at no cost through the company's initiative. "In
the wake of Katrina, we've made a concerted effort to assist those
who were uprooted by the storm," said Daniel H. Mudd, President and
Chief Executive Officer. "Providing safe, free shelter to families
who were displaced and enabling them to enroll their kids in school
and regain some sense of normalcy as they continue to rebuild their
lives is one way we've been able to help." Fannie Mae has donated
about $9 million in what is expected to be a $25 million total
commitment to the effort to house evacuees in its REO properties.
The company has made the properties available for rent-free leasing
for up to 18 months, and is also making $15,000 available for down
payment and closing cost assistance for qualified evacuee families
who wish to purchase any Fannie Mae-owned home any time during
their rent-free lease period. To date, 80 families have taken
advantage of the assistance and purchased the Fannie Mae-owned
properties. In addition, Fannie Mae has partnered with housing
counselors, such as United Way and National Urban League
affiliates, to begin working with families 6 months before their
rent-free leases expire to help them prepare for the transition.
Assistance can include homeownership counseling, helping families
find a new place to live and job training. Working with the Federal
Emergency Management Agency, Catholic Charities, and other
non-profits, the company began placing families in the dwellings
immediately following the storm. The initial properties were
located in states with the highest concentration of evacuees,
including Alabama, Arkansas, Florida, Georgia, Mississippi,
Oklahoma, Tennessee and Texas. Today, Katrina evacuees are living
rent-free in Fannie Mae-owned properties in 20 different states.
"This has been a great and welcome opportunity to work with Fannie
Mae in helping families, most of whom had lost virtually everything
during the storm," said Ethel Higgins-Harris, Program Director,
Emergency Assistance Program of Catholic Charities Atlanta, which
helped to identify and place more than 450 families in the REO
properties. "It is a wonderful partnership in service to victims of
Hurricane Katrina." "We've been inspired by the resiliency of the
evacuees we've worked with and the partners who have helped to make
this initiative work," Mudd continued. "As we work collaboratively
to help rebuild communities throughout the Gulf region, we will
continue to do all we can to help families devastated by the storm
get back on their feet." For more information, or to arrange an
interview with a family participating in the REO initiative, please
contact Chrissie McHenry at 202-752-1297. DATASOURCE: Fannie Mae
CONTACT: Chrissie McHenry of Fannie Mae, +1-202-752-1297, or Media
Hotline, 1-888-326-6694, or Consumer Resource Center,
1-800-732-6643 Web site: http://www.fanniemae.com/
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