HOUSE DEMOCRATS' ACTIONS TO ADDRESS KATRINA HOUSING NEEDS

 

RENTAL HOUSING ASSISTANCE:

 

Problem-  FEMA has failed across the board in addressing rental housing assistance needs:

(a)  Five months after Katrina hit, and even in defiance of a Congressional directive, FEMA still has not issued eligibility criteria for ongoing rental housing assistance under the Section 408 program

(b)  On November 15th, FEMA gave some 50,000 families living in motels just two weeks to find alternative housing.  Under pressure, FEMA extended the deadline, which is now expiring.

(c)  On November 23rd, FEMA announced the termination of its program to reimburse communities for leases they co-signed on behalf of displaced families, cutting short many longer term leases.

(d)  FEMA's trailer policies have been marked by concerns over concentrating the poor in isolated communities, overpaying for trailers, and delays and confusion in making them available

 

Democratic Actions-  Just after Katrina hit, House Democrats called for emergency housing vouchers for 350,000 displaced families, and introduced legislation [HR 4197, the CBC bill] to fund these vouchers.  Democrats have pressed FEMA since October to issue guidelines for continued rental assistance under the 408 program, and succeeded in getting a directive in the Katrina supplemental for FEMA to issue such guidelines by January 13^th [which FEMA has ignored]. Democrats also pressed for extensions of FEMA's arbitrary motel reimbursement deadlines, and have questioned FEMA about their policies on trailers.

 

 

 

REBUILDING:

 

Problem-  Significant numbers of homeowners lack the resources and insurance proceeds necessary to rebuild their homes, and large numbers of affordable rental housing units need funds for repaired.

 

Democratic Actions-  House Democrats have taken a number of actions to address rebuilding needs:

(a)  GSE Affordable Housing Fund.  House Democrats developed this proposal and succeeded in attaching this to the GSE bill that passed the House [HR 1461] - which would fund some $1 billion for Katrina affected areas to rebuild affordable housing units and promote homeownership opportunities. The Bush Administration opposes the fund, and as a result, the fund is on hold.

(b)  CDBG.  House Democrats succeeded in getting $13 billion authorized for CDBG in a Financial Services Committee-passed bill (HR 4100), and Congress then appropriated $11.5 billion in the Katrina Supplemental. [The Administration had asked for only $1.5 billion in its budget request].

(c)  Flood Insurance.  Rep. Gene Taylor introduced legislation (HR 3822) (also in CBC bill) to create a flood insurance buy-in option to help homeowners rebuild their homes.  Democrats offered this in the Financial Services Committee, losing on a largely party line 34-32 vote.

(d)  Baker Bill.  House Democrats negotiated with Rep. Baker to improve his bill (HR 4100) to create a Louisiana Recovery Corporation to help homeowners and stabilize communities.  The Financial Services Committee passed the bill 50 to 9.  The Bush Administration opposes the bill.

(e)  Repair of Public Housing Units.  The CBC bill [HR 4197] proposes $200 million for the repair of damaged public housing units.  Though the Administration acknowledges there are over 14,000 damaged public housing units, it has failed to ask Congress for any money for repair.

 

 

COMMUNITIES THAT HAVE WELCOMED DISPLACED PERSONS:

 

Problem-  Many communities outside areas affected by Katrina were generous in helping persons displaced by Katrina, including giving up their own housing vouchers. The Bush Administration's response to such generosity has been to (a) refuse to reimburse housing agencies for vouchers they gave up to displaced families, (b) cut off reimbursement for co-leases FEMA encouraged, and (c) create crises in communities nationwide by trying to cut of the motel/hotel reimbursement program on short notice.

 

Democratic Actions-  (a) In October, House Democrats asked FEMA to reimburse housing agencies for the cost of vouchers given to displaced persons [thus freeing these vouchers back up for local residents) - a request FEMA has ignored.  (b) After FEMA threatened to kick families out of motels on two weeks notice just before Christmas, House Democrats successfully pressed FEMA to extend their deadline.

 

[Prepared by the Minority Staff of the House Financial Services Committee (2/8/06)]