Financing and Rebate Options for Purchasing a Safe Room
Safe Rooms can be a tough financial decision for many homeowners who would like the safety and peace of mind a safe room can provide for their families. The NSSA would like to provide some resources that might help you finance or offset some of the costs of a safe room with a rebate.
Credit Unions – Many local Credit Unions can provide financing options for the purchase of a safe room. Check with a local credit union in your area for financing. There are also certain Credit Unions that will provide safe room financing outside of the state in which they are located. Simple steps to try:
- Search the internet for “financing of safe rooms/storm shelters”
- Check out the financing options offered by our Produce Members on their websites
- Listed below are some possible credit unions to contact
Oklahoma Educators Credit Union- http://oecu.com/
FHA Financing – The FHA can provide financing options for homeowners who would like to build a safe room in their existing home or include the cost in new home construction. Any FHA mortgage lender should be able to give you information about FHA insured funding for safe rooms.
On January 14, 2000, as part of HUD/FHA’s continuing efforts to be responsive to public safety concerns, HUD began allowing borrowers to include windstorm shelters as an eligible work item for FHA 203(k) rehabilitation loans and FHA 203(b) financed new construction. Shelters financed with FHA-insured mortgages must be constructed consistent with the guidelines presented in FEMA publication 320
SBA Disaster Loans – Homeowners who receive a disaster assistance loan from the U.S. Small Business Administration (SBA) to repair or rebuild a damaged or destroyed home may use some of the loan proceeds to construct a safe room. The SBA can also increase the approved disaster loan by up to 20 percent to cover the cost of adding a safe room.
Origin of Funding
- Rebate programs are initially funded by FEMA HMGP grant loans made to individual states through the various FEMA Regional offices.
- States can then elect to set up rebate programs for homeowners to offset the costs of purchasing a residential safe rooms
- Every state sets up the administrative rules for the programs and the amount of the rebates to be offered. Normally, the states allow local jurisdictions who sign up to the program the ability to administer the program.
Searching for Funding
Homeowners should contact or search their State Emergency Management Department website for available rebate programs. Homeowners can contact your local county or city emergency management departments for information as well.
Listings for some Current State Rebate Programs
Texas: Panhandle Regional Planning Commission
Texas: Grayson County Emergency Management Residential SafeRoom Rebate Program
Texas: Wichita County Safe Room Rebate Program
Oklahoma: Oklahoma- Sooner Safe -Safe Room Rebate Program
Ohio: 2018 Ohio Safe Room Rebate Program