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# Legislative Bulletin..............................................March 20, 2007

**Contents:**

**H.R. 1227**---Gulf Coast Hurricane Housing Recovery Act

H.R. 1227---Gulf Coast Hurricane Housing Recovery Act (*Waters, D-CA*)

**[Order of Business]{.underline}**: The bill is scheduled to be
considered on Tuesday, March 20^th^, subject to a likely structured rule
and self-executing manager's amendment. More details will be provided in
a subsequent RSC document.

**[Summary (as reported by the Financial Services
Committee)]{.underline}**: H.R. 1227 would increase housing assistance
for the areas of the Gulf Coast hit by hurricanes in 2005 (Katrina,
Rita, and Wilma). Highlights by title are as follows:

***[Title I: Community Development Block Grants (CDBGs)]{.underline}***

-   Allows \$1.175 billion in the Federal Emergency Management Agency's
    (FEMA) Hazard Mitigation Grant Program (HMGP), previously made
    available to the State of Louisiana, to be made available under
    Louisiana's Road Home Program (which combines CDBG and HMGP funds).
    FEMA has not permitted the release of such funds because of certain
    features of the Road Home Program.

-   Requires Louisiana to report monthly on the use of such funds.

-   Requires the Government Accountability Office (GAO) to report
    quarterly on the use of the transferred funds above, to identify any
    waste, fraud, or abuse, and to certify anytime such waste, fraud,
    and abuse exceeds 10% of funds expended. GAO would have to make
    recommendations to prevent further waste, fraud, and abuse.

-   Transfers \$15 million of unexpended CDBG funds previously made
    available to the state of Louisiana to the New Orleans Redevelopment
    Authority, for a **new pilot program** to blend private and public
    capital to acquire (from willing sellers), assemble, redevelop, and
    re-sell parcels of land in New Orleans. Removes Stafford Act
    restrictions on the use of properties acquired with disaster-relief
    funds.

-   Allows all CDBG supplemental funds to be used as a state-match for
    other federal programs (including FEMA), and allows localities that
    use CDBG funds in this way to rely on FEMA environmental reviews
    instead of completing a separate environmental review for Department
    of Housing and Urban Development (HUD) purposes.

-   Authorizes appropriations ("such sums") from previously appropriated
    FEMA funds for 2005 hurricane relief for the reimbursement of
    regular CDBG funds that cities or counties used to provide rental
    assistance for evacuees from Hurricanes Katrina, Rita, Wilma, and/or
    Dennis.

***[Title II: Public Housing]{.underline}***

-   Directs HUD to provide for the conducting of a survey by an
    independent entity or organization of public housing residents
    residing in the Housing Authority of New Orleans (HANO) public
    housing units when Hurricane Katrina made landfall (August 29,
    2005), to determine whether (and when) they want to return to HANO
    public housing or continue to receive federal rental housing
    assistance elsewhere.

-   Requires HANO to make available for occupancy by August 1, 2007, the
    greater of 3,000 public housing units (or comparable units with
    comparable rent burden) or the number of units to accommodate
    residents who said in the survey above that they want to return.
    HANO residents who were there on August 28, 2005, would have a right
    to return to a HANO public housing unit (or comparable unit), as
    long as they file notice by August 1, 2007, and identify a move-in
    date of not later than October 1, 2007. Returning residents would
    have to be given preference of location in the same housing project
    in which they were living---or, if the prior is not available, the
    same census tract---of, if the prior is not available, the
    neighboring census tract---or, if the prior is not available, the
    same neighborhood.

-   HANO could not deny residence to a returning resident (except if
    some other federal law prevents occupancy) and would have to provide
    relocation assistance (consistent with current law).

-   Prohibits HANO from demolishing or disposing of any public housing
    unit (including uninhabitable units and units approved for
    demolition) absent a plan to replace such units with comparable
    units, involving local stakeholders, allowing for right-of-return
    (as above), and furthering fair housing under the Civil Rights Act
    of 1968. HUD would have to directly monitor and supervise the
    enforcement of these requirements.

-   Prohibits any public housing authority (PHA) in areas affected by
    Hurricanes Katrina or Rita from transferring ownership of any public
    housing units for a period of two years, unless the buyer agrees to
    maintain existing affordability provisions for "the longest feasible
    period" (not defined). Then applies similar restrictions (including
    a replacement plan and right-of-return) to demolishing or disposing
    of any public housing unit in non-HANO areas affected by Hurricanes
    Katrina and Rita.

-   Authorizes "such sums as may be necessary" for repairing,
    rehabilitating, and developing HANO public housing units, and for
    providing community and supportive services for HANO residents.

-   Requires HUD to report to Congress (within 30 days and then
    quarterly thereafter) on compliance with the provisions of this
    title.

-   Requires any entity that receives funds under this title for
    construction, development, rehabilitation, or repair of public
    housing units verify that all workers employed by such entity and
    engaged in such activity have an immigration status that allows them
    to legally be employed and have a valid ID or documentation
    indicating such immigration status.

***[Title III: Disaster Voucher Program and Project-Based Rental
Assistance]{.underline}***

-   Extends the expiration date of HUD's Disaster Voucher Program (DVP)
    from September 30, 2007 to January 1, 2008. The DVP program provides
    rental assistance to families living in areas impacted by Hurricanes
    Katrina and Rita who were voucher holders, public housing residents,
    families assisted under the Section 8 project-based program, and/or
    homeless persons at the time of the hurricane. The Democrat staff of
    the Financial Services Committee writes that, "This extension will
    give time to work through DVP transition issues through the FY 2008
    appropriations bill process."

-   [Requires]{.underline} HUD to make appropriate adjustments under the
    most recent FY2007 Continuing Resolution to provide
    [full]{.underline} Section 8 (tenant-based rental) voucher funding
    for public housing agencies impacted by Hurricanes Katrina, Rita,
    and Wilma. (Reportedly, HUD believed such adjustments were
    discretionary.)

-   Provides that a project-based housing assistance payment contract
    for a covered multifamily housing project could not be terminated
    because of damage to the project by Hurricane Katrina or Rita. The
    expiration of such contracts would be the later of the actual
    contract date or at least three months after the dwelling units (or
    replacement units somewhere else) are habitable.

-   Requires HUD to promptly review and approve all feasible proposals
    to restore Section 8 project-based assistance to multifamily housing
    projects damaged by Hurricanes Katrina or Rita, including proposals
    to transfer the contract to another site or owner. Proposals would
    have to be submitted to HUD no later than October 1, 2007. Provides
    for the transfer of certain Section 8 contracts.

-   Authorizes "such sums as may be necessary" for FY2008 to provide
    tenant replacement vouchers for all public housing units and
    assisted housing units in the Hurricane Katrina and Rita areas that
    are not put back into use for occupancy.

-   Authorizes "such sums as may be necessary" to provide 4,500 new
    housing vouchers for project-based rental assistance for supportive
    housing units for the elderly, disabled persons, and homeless
    people. 3,000 of these vouchers would be earmarked for Louisiana (or
    its designee), upon its request.

-   Provides "such sums" so that, upon the termination of the DVP (see
    above), vouchers can still be made available for families in the DVP
    program from the local housing agency in which each family is living
    at the time. If a family becomes ineligible for voucher assistance,
    this transferred voucher assistance would terminate for such family.

-   Requires HUD to make "a good faith effort" (not defined) to identify
    all households eligible for DVP assistance that are not currently
    receiving such assistance and notify them of their eligibility or of
    their right, if available, to return to their previous public
    housing unit.

***[Title IV: Damages Arising from FEMA Actions]{.underline}***

-   Authorizes "such sums as may be necessary" for HUD to reimburse
    landlords who participated in FEMA's city lease program for actual,
    documented damages incurred by such landlord as a result of FEMA's
    "abrogation" of commitments to reimburse communities for leases
    entered into under such program.

***[Title V: FHA Single Family Housing]{.underline}***

-   Prohibits HUD, in the case if any property consisting of
    one-to-four-family residences that is subject to a mortgage insured
    by the Federal Housing Authority (FHA) and was damaged or destroyed
    by Hurricane Katrina or Rita, from denying conveyance of the
    property title to HUD or from denying or reducing payment of the
    insurance benefits, as long as there was no failure on the part of
    the mortgagee or servicer to provide the required hazard insurance
    coverage. Full insurance benefits could be paid, even if the
    property is not suitable for conveyance.

***[Title VI: Fair Housing Enforcement]{.underline}***

-   Authorizes such sums as may be necessary in FY2008 and FY2009 (yet
    not less than \$5 million per year) for fair housing activities in
    areas affected by Hurricanes Katrina and Rita. If the total amount
    appropriated to carry out fair housing activities for either FY2008
    or FY2009 is less than \$50 million, then at least 5% of the total
    amount for the fiscal year would have to be available for the
    Hurricanes Katrina and Rita areas.

***[Title VII: Improved Distribution of Federal Hurricane Housing Funds
for Hurricane Relief]{.underline}***

-   Requires GAO to study and report to Congress, within 6 months of
    this bill's enactment, on methods of improving the distribution of
    federal housing funds to assist states covered by this legislation
    with recovery from hurricanes. The bill includes seven matters that
    the GAO report would have to address, including program requirements
    that can be streamlined and recommendations for reducing the
    duplication of benefits.

***[Title VIII: Commending Americans for Their Rebuilding
Efforts]{.underline}***

-   Expresses a congressional commendation of "the actions and efforts
    by the remarkable individuals and organizations who contributed to
    the hurricane relief efforts" and of "the selfless dedication of
    private individuals and community spirit" in rebuilding the Gulf
    Coast region.

-   This title also lists eight related findings, including:

> \--"over 500,000 individuals in the United States have volunteered
> their time in helping rebuild the Gulf Coast region in the aftermath
> of Hurricane's Katrina and Rita;
>
> \--"over \$3,500,000,000 in cash and in-kind donations have been made
> for hurricane victims;
>
> \--"over 10,000,000 college students have devoted their spring and
> fall breaks to hurricane relief efforts;
>
> \--"faith-based organizations, such as Jewish Family Services,
> Lutheran Disaster Response, the United Methodist Committee on Relief,
> Presbyterian Disaster Assistance, the National Baptist Convention of
> America, Inc., the Progressive National Baptist Convention, the
> Southern Baptist Convention, and the African Methodist Episcopal
> Church have contributed tens of thousands of man-hours for hurricane
> relief; and
>
> \--"community-based organizations, such as the Boys and Girls Club of
> America, Junior League, Boy and Girl Scouts of America, and the YMCA,
> have had thousands of members volunteer with the cleanup in the Gulf
> States."

**[Additional Background]{.underline}**: Congress has already provided
nearly \$16.5 billion specifically for housing assistance in the 2005
Gulf Coast Hurricane areas.

**[RSC Bonus Fact]{.underline}**: According to the U.S. Census Bureau,
the counties in Louisiana most affected by Hurricane Katrina lost an
aggregate of 344,781 people between July 1, 2005 and January 1, 2006.
<http://www.census.gov/Press-Release/www/emergencies/impacted_gulf_estimates.html>.

**[Committee Action]{.underline}**: On February 28, 2007, the bill was
referred to the Financial Services and the Transportation and
Infrastructure Committees. On March 6, 2007, the Financial Services
Committee marked up, amended, and ordered the bill reported to the full
House by a vote of 50-16. On March 16^th^, the Transportation and
Infrastructure Committee discharged the bill without taking any official
action.

**[Possible Conservative Concerns]{.underline}**: Some conservatives may
be concerned that the bill would make permanent a temporary housing
program (DVP), thereby increasing the pool of Section 8 vouchers.
Additionally, some conservatives may regard the requirement for HUD to
provide tenant replacement vouchers for all units not made suitable for
occupancy as overly broad, since this provision goes beyond addressing
the needs of people who were living in public housing on the day that
Katrina and/or Rita hit.

Furthermore, some conservatives may be concerned about all the
open-ended authorizations in the bill (the "such sums" with no fiscal
year limitations) and about the state-and-local pre-emption (discussed
below in the mandates section).

Lastly, some conservatives may be concerned that this bill aims to get
people back into public housing, rather than out of it. The bill
contains no incentives to get out of public housing.

**[Administration Position]{.underline}**: An Administration position on
the reported bill was not available at press time.

**[Cost to Taxpayers]{.underline}**: As reported, H.R. 1227 would
increase mandatory spending by \$224.0 million in FY2007, by \$969.0
million over the FY2007-FY2011 period, and by \$\$245.0 million over the
FY2008-FY2012 (for the purpose of PAYGO). **As such, this legislation
would violate House Rule XXI, Section 10, and be subject to a PAYGO
point of order on the House floor.**

Additionally, H.R. 1227 would authorize an estimated \$845.0 million in
FY2008 and \$1.343 billion over the FY2008-FY2012 period. The bill would
not affect revenues.

**[Does the Bill Expand the Size and Scope of the Federal
Government?]{.underline}**: Yes, the bill would crate several new
programs and make permanent one temporary program.

**[Does the Bill Contain Any New State-Government, Local-Government, or
Private-Sector Mandates?]{.underline}**: Yes---one intergovernmental
mandate. Specifically, the bill would preempt state and local laws by
prohibiting HANO and any other manager of replacement public housing
units from excluding households that request to be placed in replacement
units. The bill contains no private sector mandates.

**[Does the Bill Comply with House Rules Regarding Earmarks/Limited Tax
Benefits/Limited Tariff Benefits?]{.underline}**: The Financial Services
Committee, in House Report 110-51, notes that, "H.R. 1227 does not
contain any congressional earmarks, limited tax benefits, or limited
tariff benefits as defined in clause 9 of rule XXI."

**[Constitutional Authority]{.underline}**: The Financial Services
Committee, in House Report 110-51, cites constitutional authority in
Article I, Section 8, Clause 1 (relating to the general welfare of the
United States) and Clause 3 (relating to the power to regulate
interstate commerce).

**[RSC Staff Contact]{.underline}**: Paul S. Teller,
<paul.teller@mail.house.gov>, (202) 226-9718