HURRICANE KATRINA RECOVERY (HKR) FACT SHEET

HURRICANE KATRINA RECOVERY ASSISTANCE PROGRAMS Casualties, Disasters, and Theft 1. FEMA Disaster Housing Program The Disaster Housing Program provides housing assistance in the form of a grant to individuals whose homes sustained damage as a result of a Presidentially declared disaster. To qualify for assistance, the damaged home must be your primary residence, and be located in the disaster-declared area. If insured, a claim should be filed. This program provides grants for lodging expense reimbursement, minimal home repairs, rental assistance and Mortgage and Rental Assistance. A determination of the types of housing assistance you are eligible to receive will be made if you apply. Managing organization U.S. Department of Homeland Security http://www.dhs.gov/dhspublic Eligibility criteria In order to qualify for this benefit program, you must be a national, citizen or dual citizen of the US whose home was destroyed or damaged by a Presidentially declared major disaster. Program contact information & web resources Additional general information can be found at: http://www.fema.gov/tabs_disaster.shtm http://fema.gov Individuals can apply for assistance by calling 1-800-621-FEMA, or on-line at www.fema.gov. Insured homeowners should first file a claim with their home insurer before contacting FEMA. An inspection is performed and a determination is made on your eligibility for one of the following types of assistance: Lodging expense reimbursement, minimal home repairs, rental assistance and Mortgage and Rental Assistance. 2. Military Personnel and Civilian Employees’ Claim Act of 1964 (COMDINST M5890.9) The Military Personnel and Civilian Employees’ Claim Act of 1964 (31 U.S.C 3721), (MPCECA) provides statutory authority for the settlement of claims for the loss of, damage to, or destruction of certain property of military personnel or civilian employees occurring incident to their service. Form CG-4111 or CG-4112 must be completed, approved by your supervisor, and sent to MLCLANT Legal. These forms can be found by accessing the link below. http://www.uscg.mil/ccs/cit/cim/forms1/form_cg.html 3. Coast Guard Mutual Assistance Single Incident, Group Situation, Individual Assistance, Immediate and Long-Term Need CGMA Phone Number: (800) 881-2462 Assistance may be provided to help with immediate needs when a client or their immediate family members are affected by a disaster. CGMA can provide assistance to help our clients through the disaster and reestablish their normal lifestyle with items not provided for by the Coast Guard, other government agencies, insurance coverage, the American Red Cross or other relief organizations. Assistance must be given only to individuals on a case-by-case basis. Assistance under this provision is generally authorized for disaster relief by providing assistance as follows: Immediate Need: Due to the time sensitive nature of these cases, initial assistance should be provided as a loan only for items immediately needed to prevent privation (food, shelter, and clothing). Clients should complete the basic CGMA Application for Assistance (CGMA Form 5), without full financial disclosure 9/11/05 v.1 1 required and sign the CGMA check (CGMA Form 52) indicating receipt of the assistance and repayment authorization. Clients should be advised to return after the disaster has passed to provide additional financial information, discuss repayment options and determine if additional assistance is needed. Additional Need: After the disaster has passed, additional assistance may be considered for basic essentials such as food, uniforms, civilian clothing, beds and linens, eating table and chairs, temporary lodging etc., not covered by other sources. Assistance under other sections may also be considered to help reestablish a household. The client will be expected to provide full financial disclosure to obtain additional assistance. CGMA believes that everyone should arrange for, and maintain, adequate health, life, vehicle, homeowners or renters insurance as part of their normal budget. Clients should not consider CGMA as an alternative to having adequate or no insurance. Loans, grants, and loans converted into grants are not automatic and should not be expected in lieu of adequate insurance. Therefore, assistance for disaster relief will normally be in the form of a loan. A grant, a combination of a loan and grant, or converting a loan into a grant may be considered only when circumstances indicate that providing a loan will offer little prospect of real help, and repaying a loan would result in a serious financial hardship on the family. Full financial disclosure will be required demonstrating the need for a grant vs. a loan. 4. Federal Tax Relief for Hurricane Victims www.irs.gov provides disaster relief information, topics, and forms for all other tax relief questions. A. Hurricane Katrina Victims will have until January 3, 2006 to file & pay taxes with an original or extended due date on or after Aug. 29, 2005. Victims of Hurricane Katrina will have until Jan. 3, 2006 to file any returns, pay any taxes or make any deposits due. This extends and expands relief is available in all the counties and parishes listed in IRS news release IR-2005-91. It applies to any return, tax payment or tax deposit with an original or extended due date that fell on or after Aug. 29, 2005. The IRS will abate interest and any late filing, late payment or failure to deposit penalties that would otherwise apply. This relief includes the Sept. 15 due date for estimated taxes and for calendar-year corporate returns with automatic extensions; the Oct. 17 deadline for individuals who received a second extension for filing their individual income tax returns; and the Oct. 31 deadline for filing quarterly federal employment and excise tax returns. B. General Tax Rules for Casualty Cases If a personal residence loss is caused by such a presidentially declared disaster, significant tax advantages are available to the affected taxpayer. IRC Sec. 1033(h), effective for property involuntarily converted/destroyed (on or after September 1, 1991, modifies the general tax treatment of such casualty losses by easing the rules on the replacement of personal property and extending the overall replacement period. Recently issued Rev. Rule 95-22 clarifies the application of the provision of Sec. 1033(h). Insurance proceeds are generally divided into two types, those for unscheduled personal property and those for scheduled property and the principal residence. Scheduled property could include things like art works, coins, jewelry, etc., that are specifically covered by the insurance policy. IRC Sec. 1033(h) provides that for unscheduled personal property, no gain shall be recognized because of the receipt of insurance proceeds, regardless of how the proceeds are used. This provision permits the taxpayer to ignore having to determine the basis of personal property destroyed or damaged, and keep track of amounts spent on replacement property. This applies even if little or none of the proceeds are spent on replacement personal property. Scheduled property would not qualify for this related treatment. The new provision treats proceeds received for the residence and scheduled contents as proceeds for a single item of property. The proceeds would be treated as a "common pool" of funds from which the taxpayer would only recognize gains to the extent the 9/11/05 v.1 2 funds received exceed the cost of appropriate replacement property. Additionally, Rev. Rule. 95-22 makes it clear that the replacement property could be either scheduled personal property or the replacement residence in any proportion C. Federal Income Tax Deduction for Casualty Losses Description The program offers tax relief for casualty losses that result from the destruction of, or damage to your property from any sudden, unexpected, or unusual event such as a flood, hurricane, tornado, fire, earthquake or even volcanic eruption. Casualty losses are generally deductible only in the year the casualty occurred. However, if you have a deductible loss from a disaster in a Presidentially declared disaster area, you can choose to deduct that loss on your tax return for the year immediately preceding the year of the casualty. If you have already filed your return for the preceding year, the loss may be claimed in the preceding year by filing an amended return, Form 1040X (PDF) (Form 1120X for corporations). Eligibility criteria In order to qualify for this benefit program, you must be a victim of a Presidentially declared disaster and you must be a taxpayer who is interested in receiving tax information and preparation assistance. Description The program offers tax relief for casualty losses that result from the destruction of, or damage to your property from any sudden, unexpected, or unusual event such as a flood, hurricane, tornado, fire, earthquake or even volcanic eruption. Program contact information & web resources For additional information contact: Internal Revenue Service Tax forms and Publications W:CAR:MP:FP 1111 Constitution Ave NW Washington DC 20224 Or visit our website: http://www.irs.gov/taxtopics/tc500.html 5. Federal Disaster Unemployment Insurance Description The Disaster Unemployment Assistance (DUA) program provides unemployment benefits to individuals who have become unemployed as a result of a Presidentially declared major disaster. Eligibility criteria In order to qualify for this benefit your employment or self-employment must have been lost or interrupted as a direct result of a major disaster and you must have been determined not eligible for regular state unemployment insurance. File with the local unemployment insurance office nearest you, regardless of the state where the job was lost. Payment will be made to an unemployed worker, who as a direct result of a major disaster:      No longer has a job; Is unable to reach the place of work; Was to commence work and does not have a job or is unable to reach the job; Has become the breadwinner for the household because the head of household died. [If you became a breadwinner due to the death of a self-employed individual, you are considered an unemployed worker for DUA purposes]; or Cannot work because of a disaster-incurred injury. With exceptions for persons with an injury and for self-employed individuals performing activities to return to self-employment, individuals must be able to work and available for work, which are the same requirements to be eligible for state unemployment insurance benefits. Managing organization U.S. Department of Labor http://www.dol.gov/ 9/11/05 v.1 3 Program contact information & web resources You can also call: 877-872-5627 People who are hearing impaired may call this toll-free TTY number: 877-889-5627 More information about this program and where to apply for benefits under this program is available at: http://workforcesecurity.doleta.gov/unemploy/disaster.asp 6. Federal Home Mortgage Insurance for Disaster Victims Description This program can help individuals purchase a new home or rebuild their house if they are victimized by a major disaster. While HUD does not lend money directly to buyers to rebuild or purchase, FHA-approved lenders make loans through this special insurance program. The Section 203(h) program allows the Federal Housing Administration (FHA) to insure mortgages made by qualified lenders to victims of a major disaster who have lost their homes and are in the process of rebuilding or buying another home. Eligibility criteria In order to qualify for this benefit program, you must be a current or prospective homeowner with a home destroyed or damaged by a Presidentially declared major disaster. Managing organization U.S. Department of Housing and Urban Development http://www.hud.gov/ Also, https://hud.gov/katrina/index HUD also has a toll free emergency hotline 1-888-297-8685 Program contact information & web resources To read more about this program, go to: http://www.hud.gov/offices/hsg/sfh/ins/203h-dft.cfm 7. Federal Economic Disaster Injury Loans for Small Businesses Description If your small business has suffered substantial economic injury, regardless of physical damage, and is located in a declared disaster area, you may be eligible for financial assistance from the U.S. Small Business Administration. Small businesses and small agricultural cooperatives that have suffered substantial economic injury resulting from a physical disaster or an agricultural production disaster designated by the Secretary of Agriculture may be eligible for the SBA's Economic Injury Disaster Loan Program. Substantial economic injury is the inability of a business to meet its obligations as they mature and to pay its ordinary and necessary operating expenses. An EIDL can help you meet necessary financial obligations that your business could have met had the disaster not occurred. It provides relief from economic injury caused directly by the disaster and permits you to maintain a reasonable working capital position during the period affected by the disaster. Eligibility criteria The SBA provides EIDL assistance only to those businesses we determine are unable to obtain credit elsewhere. You may request an EIDL for the amount of economic injury and operating needs, but not in excess of what your business could have paid had the disaster not occurred. In determining your eligible amount, the SBA will look at the total of your debt obligations, operating expenses that mature during the period affected by the disaster, plus the amount you need to maintain a reasonable working capital position during that period, and expenses you could have met and a working capital position you could have maintained had the disaster not occurred. The amount of your economic injury does not automatically represent the dollar amount of your loan eligibility; the SBA will evaluate the information you provide and determine the reasonableness of your loan request. Managing organization U.S. Small Business Administration www.sba.gov 9/11/05 v.1 4 Program contact information & web resources For more information about this program, please visit: http://www.sba.gov/disaster_recov/loaninfo/ecoinjury.html 8. Military Reservist Economic Injury Disaster Loan Program Description The purpose of the Military Reservist Economic Injury Disaster Loan program (MREIDL) is to provide funds to eligible small businesses to meet its ordinary and necessary operating expenses that it could have met, but is unable to meet, because an essential employee was "called-up" to active duty in their role as a military reservist. These loans are intended only to provide the amount of working capital needed by a small business to pay its necessary obligations as they mature until operations return to normal after the essential employee is released from active military duty. The purpose of these loans is not to cover lost income or lost profits. MREIDL funds cannot be used to take the place of regular commercial debt, to refinance long-term debt or to expand the business. Eligibility criteria Federal law requires SBA to determine whether credit in an amount needed to accomplish full recovery is available from non-government sources without creating an undue financial hardship to the applicant. The law calls this credit available elsewhere. Generally, SBA determines that over 90% of disaster loan applicants do not have sufficient financial resources to recover without the assistance of the Federal government. Because the Military Reservist economic injury loans are taxpayer subsidized, Congress intended that applicants with the financial capacity to fund their own recovery should do so and therefore are not eligible for MREIDL assistance. Credit Requirements: SBA's assistance is in the form of loans, as such SBA must have a reasonable assurance that such loans can and will be repaid. Collateral Requirements: Loans of $5,000 or less do not require collateral. Loans in excess of $5,000 require the pledging of collateral to the extent that it is available. Normally the collateral would consist of a first or second mortgage on the business property. In addition, personal guaranties by the principals of the business are required. The SBA will not decline a loan for lack of collateral, but you must pledge available collateral. Managing organization U.S. Small Business Administration www.sba.gov Program contact information & web resources For more information about this program, please visit: http://www.sba.gov/disaster_recov/loaninfo/militaryreservist.html 9. American Bar Association Disaster Legal Services Hotlines: If you need long-term legal help because of the disaster, the ABA Young Lawyers Division/FEMA toll-free hotline is: Alabama: 1-800-354-6154 Louisiana: 1-800-310-7029 Mississippi: 1-866-255-4495 Texas: 1-800-504-7030 10. If you are a victim of being unlawfully evicted from your apartment or rental property, you can contact your state’s Office of the Attorney General at: Alabama Office of the Attorney General (334) 242-7300 Louisiana Office of the Attorney General (225) 326-6705 and (800) 351-4889 Mississippi Office of the Attorney General (601) and (888) 528-5780 Texas Office of the Attorney General (512) 463-2100 and (800) 252-8011 9/11/05 v.1 5 If a Landlord attempts to breach the lease contract by early termination of the lease and/or non-payment, they could be liable for consequential damages, subject to Unfair and Deceptive Trade Practices (Triple damages plus attorney’s fees and court costs). Servicemembers are protected by the Servicemembers Civil Relief Act (SCRA) Sections 531, 534, 537, and 538 Service members can not be evicted without a court order; there can be no seizure of personal property without a court order. Violations of the SCRA are subject to criminal action. 11. Coast Guard Legal Assistance Contact Numbers: (866) 811-3323 (314) 539-3199 12. Customer Service Numbers Credit Cards American Express Bank of America Best Buy Capital One CHASE Citi Bank Discover Home Depot Lowes MBNA Military STAR Target Walmart Banks Bank of America CHASE/Bank One Hibernia Navy Federal USAA Washington Mutual Wells Fargo Whitney Utilities AllTel Bell South DSL Bell South Phone Charter Cable Cingular Wireless Cleco Electric Cox Cable Direct TV Enterergy Electric Nextel Sprint T-Mobile Verizon 800-255-8359 888-321-2375 888-757-6500 866-310-8205 866-246-4252 318-484-7400 504-304-8444 800-494-4388 800-368-3749 800-639-6111 888-211-4727 800-937-8997 800-922-0204 800-423-1000 800-935-9935 800-666-4417 888-868-8123 800-531-2265 800-788-7000 800-869-3557 877-611-9448 800-528-4800 800-732-9194 800-365-0292 800-955-7070 800-432-3117 800-950-5114 800-347-2683 800-677-0232 800-444-1408 800-421-2110 877-891-7827 800-659-2396 800-966-6546 9/11/05 v.1 6 Insurance AllState Farmer's Geico Liberty Mutual MetLife Progressive State Farm USAA 800-547-8676 800-435-7764 877-206-0215 617-357-9500 800-422-4272 800-776-4737 800-732-5246 800-531-8222 9/11/05 v.1 7