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HUD says it will consider climate risk when underwriting loans (VA, Agriculture, etc.), promoting new energy-efficient housing and updating guidelines for grants.<\/span><\/span><\/span><\/p>\n<\/div>\n WASHINGTON \u2013 The U.S. Department of Housing and Urban Development (HUD) announced a plan Thursday to tackle the effects of global warming. Provisions include factoring in climate risk when underwriting loans, incentivizing the construction of energy-efficient housing and updating grant guidelines that provide states funding to rebuild infrastructure after a major natural disaster.<\/span><\/span><\/span><\/p>\n The move is part of a wider strategy led by the White House and 20 other federal agencies more than a month after Hurricane Ida left 95 people dead as it flooded Louisiana, New York and New Jersey.<\/span><\/span><\/span><\/p>\n \u201cHUD is taking an agency-wide approach to prioritize climate resilience because we cannot put America on the path to building a stronger and more sustainable housing infrastructure without addressing the impacts of climate change,\u201d HUD Secretary Marcia Fudge said in a statement.<\/span><\/span><\/span><\/p>\n HUD is working with the U.S. Department of Veterans Affairs and the U.S. Department of Agriculture to integrate climate-related financial risk into underwriting standards and loan terms and conditions.<\/span><\/span><\/span><\/p>\n HUD mortgage financing programs, primarily its insurance programs, enable billions of dollars to fund the purchase, refinancing, construction and rehabilitation of single-family homes and multifamily housing, assisted housing and health care facilities.<\/span><\/span><\/span><\/p>\n Many low-income or first-time homeowners rely on federal financing programs.<\/span><\/span><\/span><\/p>\n Federal agencies don\u2019t currently take into account climate risk issues, such as flooding, wildfires or subsidence when underwriting loans.<\/span><\/span><\/span><\/p>\n Though the details are being ironed out, factoring climate risk could affect policies as early as 18 months from now that would protect homeowners and last several years.<\/span><\/span><\/span><\/p>\n HUD hopes to incentivize developers through grants and tax credits to build resilient infrastructure that is energy- and water-efficient.<\/span><\/span><\/span><\/p>\n\n