Introductory Statement on S. 1668
Mr. President, today, Senator Landrieu and I come to the floor to introduce the Gulf Coast Housing Recovery Act of 2007. This bill will help jump-start economic development in the communities devastated by Hurricanes Katrina and Rita. It…
Mr. President, today, Senator Landrieu and I come to the floor to introduce the Gulf Coast Housing Recovery Act of 2007. This bill will help jump-start economic development in the communities devastated by Hurricanes Katrina and Rita. It will also help bring people home so they can resume their lives.
At the outset, let me recognize Senator Landrieu for all of her efforts to secure assistance for the people of Louisiana, who suffered the lion's share of damage from the 2005 hurricanes. She has worked tirelessly, every day since the storms, to ensure that Louisianans and others in the gulf coast can return to vibrant towns and cities. I also want to recognize the work of Congresswoman Waters and Financial Services Chairman Frank, who laid the groundwork for this legislation in the House. They did an outstanding job of ushering a housing recovery bill through the House.
The bill we are introducing today does the following: it authorizes additional funding to help rebuild the gulf coast; it requires the Federal, state and local governments to take additional actions to bring people home; and it requires accountability on the part of FEMA, HUD, and the states and cities receiving Federal funds.
Almost 2 years after the devastation of Hurricane Katrina, hundreds of thousands of people remain in limbo, wondering if they will be able to return home. The population in New Orleans remains at about half of pre-Katrina levels, though local groups and residents have made clear that many more want to return. Unfortunately, many of these families have no home to return to, and there is great uncertainty about whether adequate services will be available if they do return. As of April of this year, less than half of New Orleans' public schools, a third of its child care centers, and half of its hospitals were open.
Over 82,000 families from across the devastated region are still living in FEMA trailers, which were recently found to contain toxic chemicals. Over 32,000 families are receiving temporary rental assistance through HUD, and over 11,000 others are receiving temporary rental assistance through HUD. Tens of thousands of other families are being assisted by cities, counties and individuals throughout the gulf region and our country.
Much has already been done to help restore the gulf coast. Billions of dollars have been spent to house evacuees and clean up areas of Texas, Louisiana, Alabama and Mississippi. In addition, emergency CDBG funds have been appropriated to help families start to rebuild their homes and their lives. While these funds are finally getting to people in need, the reach of these funds is limited, to a great extent, to those who owned homes prior to the storms. Both Louisiana and Mississippi have understandably focused their efforts on getting homes rebuilt, and I support their efforts to help people whose largest asset was washed away. However, we must not forget the large number of residents who were renters at the time of the storms, many of whom held jobs that were critical to the economy and the culture of the gulf coast, including jobs necessary for the tourism and fishing industries.
In New Orleans, over half of the rental housing was flooded. We have an obligation, as a fair society, to ensure that all of our citizens in the gulf coast, including renters, are given the opportunity to return home, and the bill that Senator Landrieu and I are introducing today will do that.
This bill helps to do six key things that are necessary to help those displaced as a result of the hurricanes return to thriving cities and towns: it helps to bring people home; it replaces lost housing; it creates homeownership opportunities; it spurs economic and community development; it provides continued assistance to evacuees; and it requires accountability so that funds are properly used.
There are numerous provisions in our bill that will help families of all income levels return to a stronger gulf coast. I want to highlight a few of these provisions.
While most of the funds already provided to individuals for rebuilding efforts have gone to homeowners, even those funds have proven to be insufficient. The Louisiana Road Home program has pledged all of its funds, leaving many eligible homeowners without any assistance. This bill authorizes funding necessary to make this program whole so long as the State of Louisiana puts up $1 billion of its own funds towards this shortfall. I will be working with Senator Landrieu over the coming weeks to get a better sense of the exact amount needed in this program, why a shortfall of this amount exists, and to determine the legitimate uses of these funds.
Prior to the storm, there were over 5,200 families living in public housing in New Orleans, and thousands of others throughout the Gulf States. Many of these families include people with disabilities, seniors, and children. We cannot turn our backs on them.
HUD is currently running the Housing Authority of New Orleans, HANO, and it plans to demolish much of the public housing without replacing many of the affordable units. I believe this is shortsighted. I understand that in rebuilding New Orleans, there are many who advocate deconcentrating poverty, and I believe we can achieve this goal without sacrificing needed affordable housing. Under the bill we are introducing today, every unit of public housing that was occupied prior to the storm must be replaced, but not necessarily with a traditional public housing unit, nor in a traditional public housing setting.
In order to facilitate the replacement of public housing in New Orleans, this bill takes HANO out of HUD's hands, and puts it into judicial receivership. HANO has been a troubled agency for many years, and HUD control has not led to enough improvement. We need significant change at this agency.
This bill helps to spur much-needed development. It requires $55 million from funds previously given to the State of Louisiana to be used to help finance community development pilot programs in the State so that land can be acquired, bundled sold for redevelopment. In addition, the bill establishes an innovative program, the FHA-New Orleans Homeownership Opportunities Initiative, under which HUD will transfer to the New Orleans Redevelopment Authority properties which are under HUD control to be used for homeownership opportunities for low-income families.
While providing large amounts of Federal funds to the disaster area, it is important to ensure that funds are used correctly and are not subject to waste, fraud and abuse. This bill has stringent monitoring and reporting requirements that apply to FEMA, HUD, and the States receiving emergency funds so that the Congress can keep tabs on the disaster spending and ensure funds are being used efficiently and effectively to help rebuild and strengthen the gulf coast.
The Gulf Coast Housing Recovery Act of 2007 is a critical step towards rebuilding the gulf coast. It is supported by a broad coalition of national organizations, including the AARP, ACORN, Enterprise Community Partners, Lawyers Committee for Civil Rights Under Law, the Mortgage Bankers Association, the National Alliance to End Homelessness, the NAACP, the National Association of Homebuilders, the National Association of Realtors, the National Fair Housing Alliance, the National Low Income Housing Coalition, US Jesuit Conference, Volunteers of America, as well as Gulf Coast organizations such as Alabama Arise, Catholic Charities of New Orleans, Greater New Orleans Fair Housing Action Center, the Louisiana Association of Nonprofit Organizations, and Providence Community Housing.
Again, I would like to thank my colleague Senator Landrieu for her work to restore the lives of so many of her constituents and others in the gulf coast region. I urge my colleagues to support this bill so that needed housing and community development activities can be undertaken in the gulf coast.
Mr. President, I ask unanimous consent that the text of the bill and letters of support be printed in the Record.