Mortgage and Financial Relief Information for Lahaina and Maui Island Wildfire Residents

 

 

In light of the devastating fire that our community has faced, we want to assure you that we are here to support you through this challenging time. We understand the immense impact this tragedy has had, and we are committed to providing you with the necessary information and resources to help rebuild and heal.

Please know that our hearts go out to everyone affected by this fire. We are actively working to gather information about available support services, relief efforts, and ways to contribute to the recovery process. We are in this together, and we will do everything in our power to help our community come together and overcome this adversity.

If you have any questions, concerns, or specific needs, please don’t hesitate to reach out. Our lines of communication are open, and we are dedicated to assisting you in any way we can. Your resilience and strength during this challenging time inspire us, and we are committed to standing by your side every step of the way.

Stay strong, and remember that the spirit of our community will shine through even in the darkest of times.

Below is a list of various credit and financial industry resources for our many friends, family, and extended ohana who have lost business, homes and loved ones. Further down, we also have some helpful information on food assistance, pet reunification, trauma and grief counseling, and other resources for Maui residents.

As we learn more, and as additional resources and assistance programs come online, we’ll update this post, and provide updates to this blog.

 

Mortgage Forbearance:

You may be eligible for mortgage payment forbearance if you are a Maui resident experiencing financial difficulty as a result of the wildfires, we encourage you to contact your mortgage servicer immediately.

To ensure you do not receive negative information reported on your credit report that could make your financial recovery even more difficult, it will be important to continue to make your monthly mortgage payments until you have a forbearance agreement in place with your servicer.

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HUD Foreclosure Moratorium:

Effective August 11th, The U.S. Department of Housing and Urban Development has placed a 90-Day moratorium on foreclosure actions for mortgages in Maui County insured by the Federal Housing Administration.

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Food Assistance:

Individuals on Maui in need of food assistance can visit one of the Maui Food Bank’s locations.

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FEMA Assistance:

FEMA, the Federal Emergency Management Administration, encourages Hawaii residents to register for federal assistance by visiting DisasterAssistance.gov, through the FEMA App, or by calling 1-800-621-3362.

Residents who use a relay service, such as video relay or captioned telephone service, can give the FEMA operator the number for that service.

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US Small Business Administration (SBA) Home and Personal Property Loans:

These loans are available to those in federally-declared disaster areas to help with personal property repair and replacement costs not covered by insurance.

• Renters (those who do not own a home) may be eligible to borrow up to $100,000 to replace personal property, cars, etc. lost or destroyed in the fire.
• Homeowners may be eligible to borrow up to $500,000 for up to 30 years, subject to your ability to repay.

Secondary homes or vacation properties are not eligible for these loans. However, qualified rental properties may be eligible for assistance under SBA’s business physical disaster loan program.

Terms:

• First payment deferred for 12 months
• No interest for 12 months
• For applicants unable to obtain credit elsewhere:
• The interest rate will not exceed 4%
• SBA will determine whether an applicant can obtain credit elsewhere.

Restrictions: 

• SBA loan proceeds cannot be used to upgrade a property. Only to restore it.

Collateral:

The SBA will require collateral when available. But they will not decline a loan simply because of a lack of collateral. This is good news to those whose homes have been destroyed.

Note: You may be eligible for up to a 20% loan amount increase above the real estate damage, as verified by SBA, for improvements that will help prevent risk of future property damage caused by a similar disaster – in this case, fireproofing. 

• Apply online for an SBA disaster assistance loan. SBA’s inspectors will estimate the cost of damage once your application is completed and submitted.

Complete, sign, and date IRS Form 4506-T with your application, giving permission for the IRS to provide SBA with your tax return information.

 

The U.S. Small Business Administration (SBA) encourages homeowners, renters, businesses and nonprofits to apply for low interest disaster loans. Businesses can apply for up to $2 million for physical damage or economic injury. During her visit today, SBA Administrator Guzman will visit with local small business owners to discuss resources available to support their recovery.

Economic Injury Disaster Loans

This is the emergency loan program for businesses referenced above. This SBA loan program SBA can provide up to $2 million* to help meet financial obligations and operating expenses that could have been met had the disaster not occurred.

The loan amount will be based on your actual economic injury and your company’s financial needs, regardless of whether the business suffered any property damage.

*Your business may qualify for, both: An EIDL and a physical disaster loan.

The maximum combined loan amount is $2 million. A separate SBA Disaster Assistance program known as business physical disaster loans covers property damage.

 

Business Physical Disaster Loans:

The SBA Business Physical Disaster Loan program will lend up to $2 million to qualified businesses who have lost real estate, inventory, equipment, vehicles, and other property to a federally declared disaster, such as the Lahaina fire.

These loan proceeds may be used for the repair or replacement of the following:

• Real property
• Machinery
• Equipment
• Fixtures
• Inventory
• Leasehold improvements

The SBA Business Physical Disaster Loan covers disaster losses not fully covered by insurance. If you are required to apply insurance proceeds to an outstanding mortgage on the damaged property, you can include that amount in your disaster loan application.

If you make improvements that help reduce the risk of future property damage caused by a similar disaster, you may be eligible for up to a 20 percent loan amount increase above the real estate damage, as verified by the SBA.

Terms:

The interest rate on SBA Physical Disaster Loans will not exceed 4 percent if you cannot obtain credit elsewhere.

For businesses and nonprofit organizations with credit available elsewhere, the interest rate will not exceed 8 percent.

SBA determines whether the applicant has credit available elsewhere. Repayment terms can be up to 30 years, depending on your ability to repay the loan.

Restrictions:

You may not use the disaster loan to upgrade or expand your business, except as required by building codes.

How to Apply:

You can apply online for an SBA disaster assistance loan. SBA will send an inspector to estimate the cost of your damage once you have completed and returned your loan application.

You must submit the completed loan application and a signed and dated IRS Form 4506-C giving permission for the IRS to provide SBA your tax return information.

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Office of Hawaiian Affairs Emergency Disaster Assistance Loans:

Native Hawaiians who have been affected by the disaster may be eligible for up to $20,000 in emergency loan assistance via the Office of Hawaiian Affairs.

Currently, these emergency loans are at an interest rate of 4%, with terms up to 7 years.

OHA will defer the first three months of payments and possibly up to six months depending upon your situation, circumstances and loss. The loss would have to impact your living environment or situation, your job, or your business.

For information about OHA Disaster Relief Loans, email NHRLF@ohaloanfund.org  or call 594-1835.

OHA Consumer Micro-Loans:

Depending on your circumstances, if you’re Native Hawaiian, you may also be eligible for OHA’s Consumer Micro-Loan Program. This program provides emergency loan assistance of up to $7,500 to qualified individuals.

These micro-loans are designed to provide assistance with shorter-term needs such as emergency car repairs, health crises, and deaths in the family.

Micro-loan payments can be up to five years. Applicants should have a credit score of at least 600, with two years of employment history.

Funding can occur within a week of a completed application.

Terms:

• Simple interest, fixed at 5%
• Up to five years duration
• Collateral not required
• No gross annual income limit
• Primary applicant must have sufficient income
• Co-applicant or guarantor can strengthen the loan

 

Restrictions:

Micro-loan proceeds may not be used for the following purposes:

• Debt Consolidation or Refinancing
• Vacations
• Investments
• Re-Lending by the borrower
• Home remodeling
• Past due utilities or rent
• Down payment loans
• Auto purchases

 

How to Apply:

Native Hawaiians over age 18 can apply online at this link.

For more information on the OHA Consumer Micro-Loan Program, contact Lareina Meinecke at (808) 594-1823, email cmlp@ohaloanfund.org, or contact your OHA neighbor island office.

Loss of Employment:

The Lahaina Fire is likely to affect thousands of jobs.

If you lost your job as a result of the fires, or if your employment has been at least temporarily disrupted, you may qualify for unemployment benefits. You can apply here.

There’s also an instructional video at the link.

The sooner you apply, the sooner you can start receiving unemployment benefits.

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Loss of Health Insurance:

If you expect to lose your health insurance as a result of job loss from the fire, you may qualify for a 60-day Special Enrollment Period.

During the 60 days following the loss of your job, you have a guaranteed right to purchase an Affordable Care Act—qualified health insurance plan, regardless of your medical history.

If you miss this special enrollment period, you will not be able to purchase a major medical insurance policy until after the general open enrollment period starts on November 1st, and it will not become effective until January 1st.

To avoid a lapse in coverage, take advantage of the special enrollment period.

Depending on your income and family size, you may also qualify for an Affordable Care Act subsidy to help you pay your health insurance premiums.

You can research available policies in your Zip Code, and even enroll in a new health plan by clicking here.

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Car Insurance and Loss from Fire:

If you just have the Hawaii state minimum coverage, it only covers liability. It won’t cover loss or damage as a result of fire. For that you need comprehensive coverage.

If you’re still making payments on your car, you probably have this coverage, as nearly all auto loans require borrowers to carry comprehensive coverage to protect the lender. If you don’t have comprehensive coverage on your car insurance policy, it won’t cover loss by fire.

However, if your car was parked in your garage when it was damaged or destroyed, you may have some coverage under your homeowner’s insurance or renter’s insurance policy. Check the language of your policy for details.

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Farmers, Ranchers, and Agriculture businesses:

The Hawai‘i Department of Agriculture (HDOA) will be establishing an emergency agricultural loan program to assist Maui and Hawai‘i Island farmers and ranchers suffering damage from the high winds and wildfires this week.

In the meantime, agricultural operations impacted by the wildfires may contact the HDOA’s Agricultural Loan Program on O‘ahu at (808) 973-9458 for more information and to begin the process of applying for low-interest agricultural emergency loans. Loan applicants would need to provide estimates of losses and should document the damage with photos.

For agribusinesses needing loans of $50,000 or less, micro-loans involving less paperwork and swifter processing are also available.

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Crisis and Grief Counseling and Mental Health Support:

For Maui County residents, the Maui Community Mental Health Center is offering crisis mental health services to those experiencing emotional or psychological distress because of the wildfires.

• Call (808) 984-2150 or email mauiwellness@doh.hawaii.gov.
• After hours, contact Hawai‘i CARES to speak to a local counselor at (808) 832-3100, 1-800-753-6879, or call/text/chat 988.

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Beware of Disaster Fraud:

After a disaster, scam artists and identity thieves may attempt to take advantage of disaster survivors. Individuals should:

• Watch for and report any suspicious activity. Federal agencies such as FEMA and the SBA will never charge individuals for disaster assistance.
• Protect your identity and stay informed. Do not offer any personal information unless you are speaking with a verified federal, state, or local official.
• Stay tuned to trusted local media sources for updates on disaster fraud and scams.
• Share information from trusted sources and discourage others from sharing information from unverified sources.

Individuals can report suspected fraud or scams to the FEMA Investigations and Inspections Division by calling 1-866-223-0814 or emailing StopFEMAFraud@fema.dhs.gov.

Individuals can also file complaints of fraud, waste, or abuse with the U.S. Department of Justice National Center for Disaster Fraud’s (NCDF) Disaster Complaint Form.

Individuals who suspect they may be victims of identity theft should check in with local law enforcement and visit IdentityTheft.gov to report and recover from identity theft.