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124. GAO-19-232 Disaster Victims not inspected by HUD for damages when applicants where denied by SBA

  • 5-14-2019
  • 124

GAO-19-232 2017 CDBG-DR Grants Page 22:
"Including SBA applicants that were denied assistance."

"Florida and Puerto Rico included SBA applicants whose units were not inspected because they were denied disaster loans, although the extent to which these units sustained damages was unknown. Florida estimated approximately $1.8 billion and Puerto Rico approximately $1.5 billion in housing needs for these SBA applicants. Florida and Puerto Rico officials told us that they included these applicants because being denied did not necessarily mean that these applicants did not experience losses. For example, SBA applicants can be denied loan assistance based on their inability to repay, despite potentially having unmet needs. Similarly, HUD officials explained that they consider applications that SBA has denied as a potential indicator of unmet needs."

For those of you in Florida, Puerto Rico or any other state or commonwealth that were denied by the SBA and not inspected you will have the right to have HUD CDBG-DR inspect your home and provide you with a damage assessment.

You also are nearly 100% qualified for a Hardship waiver because you have been "Denied" or "Declined" by the SBA and under the HUD Guidance of Nov. 16, 2011 that identifies you has an automatic hardship.

You will be provided HUD CDBG-DR grants after you report to your state grantee that you were declined by the SBA. Your state may not offer this information. The Datafeed the states subscribe to will not always provide data related to Declined loans and Cancellation codes related to agency declined loans.

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