TAMPA—Florida credit unions—again—are bracing for the impact of a Category 4-5 hurricane, with Milton bearing down on the Gulf Coast Tuesday.
The Category 5 storm registered sustained winds of 180 mph Monday, but had weakened Tuesday to a Category 4 hurricane—still packing fierce 145-mph winds. The storm is expected to slam into west central Florida late Wednesday.
“As you can imagine our first priority is making sure our team is safe,” LSCU President Samantha Beeler told CUToday.info Tuesday morning. “We have a few team members that are in the path of the storm, so we're making sure they either are evacuated or feel safe and are listening to the local authorities.”
Beeler said on Tuesday Florida CUs were repeating their activities from two weeks ago when Hurricane Helene headed inland.
“Our credit unions are doing much the same. Many of them are already closed, starting today, in order to help prepare,” Beeler said.
Devastated By Flooding
Beeler reminded that Milton is hitting a region that was just devastated by flooding from Helene
“If the Weather Channel is right, they will be flooded again. Roads are still filled with debris from Helene,” she said. “In Tampa they are using pretty extreme language, some of the strongest we've heard in recent days, telling folks they must get out today, and if they don't…Help will be on the way eventually, but the flooding looks to be worse than what we had with Helene.”
Beeler acknowledged the damage from Milton, especially in the Tampa area, could be worse than the previous storm.
“Milton has set its eye on Tampa Bay. And it won't just be the storm surge, it will also be the wind…There's more than 15 million people under a flood watch right now and 11 million people are at risk for tropical tornadoes. It is the worst-case scenario for central Florida right now,” Beeler said.
Beeler acknowledged that it’s hard to recall when Floridians last had to live through back-to-back, high-powered hurricanes.
Generators A Priority
“Milton is going to sustain hurricane force winds as it moves inland, and the flooding and the devastation…It's going to impact all of Florida,” Beeler said. “Every storm is unique, as is its impact on credit unions. As of today, we've delivered about 100 generators post Helene. Those were mostly in Georgia because Georgia went without power longer. But you can't use a generator when you can't plug it into any of your electrical connections because they’ve been compromised by flooding. On the east coast of Florida, we’ll probably be able to get some generators, hopefully as many as the credit unions need. We just got a restocking shipment yesterday at our Tallahassee office.”
But the long-term rebuilding needs will take more of the league’s resources, Beeler said.
“So, grant dollars are going out from our foundation and those are still available. We are looking for help to replenish those funds,” she said.
Beeler said LSCU does expect CU branch damage from Milton, especially in the Tampa area.
“Two big hurricanes in a row, this is something the credit union system, in the long run, must prepare for because these events are just happening more frequently and at a greater magnitude,” Beeler said.
Louisianna League Responds
In Louisianna, Luminate Tuesday shared information with credit unions ahead of Milton’s impact.
The league, crediting LeeAnn Persick, Xplore Federal Credit Union’s VP of lending for the idea, suggested modifying skip-a-pay payments and loss draft assistance from previously used successful COVID protocols to meet the needs of hurricane survivors.
Jeff Caire, chief lending officer at New Orleans Firemen’s Federal Credit Union, shared best practices for homes deemed a total loss.
“When homes are classified as a total loss in communities facing widespread devastation, we generally provide a two-three month automatic extension on the loan, and we waive the escrow to ease the burden on our members,” said Caire.
Caire also highlighted a loan product developed in response to Hurricane Katrina that continues to help members today.
“After Katrina, we created a HELOC Repair and Renovation loan designed to allow members to borrow against future equity from major repairs or renovations," Caire noted. "The loan is priced slightly higher than a traditional HELOC and permits multiple draws based on the project’s scope of work. Appraisers provide both the 'as-is' and 'completed' values of the home, and the draws are made in three or four stages, depending on the work needed. This product is especially helpful for members who may not have insurance, offering them a way to repair their homes."
Credit unions wishing to donate to disaster relief funds:
- National CU Foundation’s CUAid
- Carolina’s CU Foundations Disaster Relief Fund
- Southeastern CU Foundation’s Disaster Relief Fund
- Tennessee Credit Union League Aid