Real estate and flood hazard groups are urging the Department of Housing and Urban Development to make permanent a waiver that has allowed homeowners to use 203(k) loans to repair and elevate their homes to prevent future flood damage and lessen the financial burden of flood insurance requirements.

In response to Hurricane Sandy, HUD waived certain restrictions on Federal Housing Administration's 203(k) loans to make renovation financing more available — namely, a provision that prevents borrowers from using the loans to make changes to a property's foundation and rules out paying for elevation changes.

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