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One year after wildfire, HUD extends assistance timeline to those rebuilding homes on Maui

The original deadline for those seeking mortgage insurance for disaster relief will be pushed out to August 2025

The U.S. Department of Housing and Urban Development (HUD) and the Federal Housing Administration (FHA) on Thursday announced an expansion of relief measures to homeowners on the Hawaiian island of Maui who are seeking to rebuild single-family homes after the devastating wildfire that destroyed the town of Lahaina.

This week marks the one-year anniversary of the outbreak of the fire and federal regulators are making new relief immediately available.

“Effective immediately, eligible borrowers and renters in Maui County who lost their homes, and are in the process of rebuilding or buying another home, can continue to use FHA’s 203(h) Mortgage Insurance for Disaster Victims program to receive up to 100% financing,” HUD announced.

Released in concert with the announcement was an FHA notice of a temporary partial waiver for the 203(h) program. This extends a requirement for impacted Maui residents that typically “requires that an FHA case number is assigned within one year of the Presidentially-Declared Major Disaster Area (PDMDA) declaration.”

FHA explained that the unique circumstances of the situation on Maui, coupled with its isolation from the U.S. mainland, necessitated such relief.

“Because of Maui’s unique geographic location, which is making recovery efforts more difficult, and the sheer extent of the destruction from the wildfires, [HUD] has issued a partial waiver of the one-year requirement,” the notice stated.

“Mortgages through FHA’s 203(h) Mortgage Insurance for Disaster Victims Program for borrowers impacted by the Hawaii Wildfires disaster will be eligible for insurance if the application for insurance is filed through the waiver period, which will expire on August 10, 2025,” according to the waiver, which was signed by FHA Commissioner Julia Gordon and adds an additional year of eligibility.

Additionally, the White House outlined the Biden-Harris administration’s priorities for “ongoing and long-term recovery efforts, including moving residents from temporary shelters into longer term housing solutions, supporting home rebuilding efforts, and ensuring that new homes are climate resilient, so families can stay safe as climate-fueled extreme weather events become more frequent due to climate change,” according to HUD’s announcement.

HUD acting secretary Adrianne Todman said the support is necessary to provide “support for homeowners to ensure that they can rebuild and stay on Maui,” she explained.

Late last week, more than 10,000 victims of the disaster — including homeowners, businesses and other individuals — were awarded a collective $4 billion settlement from seven defendants: the State of Hawaii, the County of Maui, Hawaiian Electric, Kamehameha Schools, West Maui Land Co., Hawaiian Telcom and Spectrum/Charter Communications.

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