II 

109TH CONGRESS 

2D SESSION S. 2319 

To provide for the recovery from Hurricane Katrina, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

FEBRUARY 16, 2006 

Mr. OBAMA introduced the following bill; which was read twice and referred 

to the Committee on Finance 

A BILL 

To provide for the recovery from Hurricane Katrina, and 

for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Hurricane Katrina Re5 covery Act of 2006’’. 

6 SEC. 2. TABLE OF CONTENTS. 

7 The table of contents for this Act is as follows: 

Sec. 1. Short title. 

Sec. 2. Table of contents. 

TITLE I—TRANSPARENCY AND ACCOUNTABILITY DURING THE 

HURRICANE KATRINA RECOVERY AND RELIEF EFFORT 

Sec. 101. Definitions. 

Sec. 102. Establishment and functions. 

Sec. 103. Reports of the Government Accountability Office. 


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Sec. 104. Administrative and support services. 

Sec. 105. Public reporting. 

Sec. 106. Authorization of appropriations. 

Sec. 107. Termination of office. 

TITLE II—FAMILY LOCATOR SYSTEM 

Sec. 201. Definitions. 

Sec. 202. National emergency family locator system. 

Sec. 203. Authorization of appropriations. 

TITLE III—EVACUATION OF INDIVIDUALS WITH SPECIAL NEEDS 

Sec. 301. Findings and purpose. 

Sec. 302. Evacuation plans for individuals with special needs. 

Sec. 303. Report to Congress. 

TITLE IV—HURRICANE KATRINA EMERGENCY HEALTH 

WORKFORCE 

Sec. 401. Definitions. 

Sec. 402. National emergency health professionals volunteer corps. 

Sec. 403. Health professional database. 

Sec. 404. Protection of health professional volunteers. 

Sec. 405. Preparedness training requirements. 

Sec. 406. Liability protections. 

Sec. 407. General waiver authority. 

TITLE V—HEALTH PROVISIONS 

Sec. 501. Repair and disparities grants. 

TITLE VI—HOUSING AND COMMUNITY REBUILDING 

Sec. 601. Definitions. 

Sec. 602. Affordable housing fund. 

Sec. 603. Public housing capital fund reserves for emergencies and natural disasters. 

Sec. 604. Community Development Block Grant assistance. 

Sec. 605. CDBG loan guarantee program. 

Sec. 606. Capacity building for community development and affordable housing. 

Sec. 607. Prohibition of placement of families in substandard dwelling units. 

Sec. 608. Fair housing enforcement. 

Sec. 609. Housing counseling for families in temporary shelters. 

Sec. 610. Availability of HUD inventory properties. 

Sec. 611. Equitable distribution of affordable HOME program funds. 

TITLE VII—FINANCIAL SERVICES PROVISIONS 

Sec. 701. Definitions. 

Sec. 702. Hurricane Katrina regulatory relief. 

Sec. 703. Flexibility in capital and net worth standards for small affected institutions. 

Sec. 704. Waiver of certain limitation on certain bank investments to promote 

the public welfare. 

Sec. 705. Emergency authority to guarantee checks cashed for victims of Hurricane Katrina. 

Sec. 706. Technical assistance for minority institutions. 


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Sec. 707. Implementing Katrina disaster relief through the CDFI Fund. 

TITLE VIII—EXPANDED OPPORTUNITY AND SMALL BUSINESS 

PROVISIONS 

Sec. 801. Definitions. 

Sec. 802. Increased procurement goal for certain Federal contracts for recovery 

from Hurricane Katrina. 

Sec. 803. Local participation goal for participation in Federal procurement contracts in areas affected by Hurricane Katrina. 

Sec. 804. Hurricane recovery-related contracts to require 40 percent of contract 

workers be local residents. 

Sec. 805. Apprenticeship and other requirements for post-hurricane reconstruction. 

Sec. 806. Technical Assistance Program for Small Business Owners’ Recovery. 

TITLE IX—RELIEF FOR INSTITUTIONS OF HIGHER EDUCATION 

Sec. 901. Findings; sense of Congress. 

Sec. 902. Definitions. 

Sec. 903. Institutional grants for faculty retention. 

Sec. 904. Loan forgiveness. 

Sec. 905. Regulations. 

Sec. 906. Emergency designations. 

TITLE X—INCREASED ACCESS TO REFUNDABLE PORTION OF 

CHILD TAX CREDIT 

Sec. 1001. Reduction in income threshold used to calculate refundable portion 

of child tax credit. 

Sec. 1002. Increase in percentage earned income used to calculate refundable 

portion of child tax credit. 

Sec. 1003. Working family tax relief. 

TITLE XI—SENSE OF SENATE 

Sec. 1101. Sense of the Senate regarding source of certain funding. 

1 TITLE I—TRANSPARENCY AND 

2 ACCOUNTABILITY DURING 

3 THE HURRICANE KATRINA 

4 RECOVERY AND RELIEF EF5 FORT 

6 SEC. 101. DEFINITIONS. 

7 In this title: 


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1 (1) CHIEF FINANCIAL OFFICER.—The term 

2 ‘‘Chief Financial Officer’’ means the Hurricane 

3 Katrina Recovery Chief Financial Officer. 

4 (2) OFFICE.—The term ‘‘Office’’ means the Of5 fice of the Hurricane Katrina Recovery Chief Finan6 cial Officer. 

7 SEC. 102. ESTABLISHMENT AND FUNCTIONS. 

8 (a) ESTABLISHMENT.—There is established within 

9 the Executive Office of the President, the Office of the 

10 Hurricane Katrina Recovery Chief Financial Officer. 

11 (b) CHIEF FINANCIAL OFFICER.— 

12 (1) APPOINTMENT.—The Hurricane Katrina 

13 Recovery Chief Financial Officer shall be the head 

14 of the Office. The Chief Financial Officer shall be 

15 appointed by the President, by and with the advice 

16 and consent of the Senate. 

17 (2) QUALIFICATIONS.—The Chief Financial Of18 ficer shall— 

19 (A) have the qualifications required under 

20 section 901(a)(3) of title 31, United States 

21 Code; and 

22 (B) have knowledge of Federal contracting 

23 and policymaking functions. 

24 (c) AUTHORITIES AND FUNCTIONS.— 


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1 (1) IN GENERAL.—The Chief Financial Officer 

2 shall— 

3 (A) be responsible for the efficient and ef4 fective use of Federal funds in all activities re5 lating to the recovery from Hurricane Katrina; 

6 (B) strive to ensure that— 

7 (i) priority in the distribution of Fed8 eral relief funds is given to individuals and 

9 organizations most in need of financial as10 sistance; and 

11 (ii) priority in the distribution of Fed12 eral reconstruction funds is given to busi13 ness entities that are based in Louisiana, 

14 Mississippi, Alabama, or Florida or busi15 ness entities that hire workers who resided 

16 in those States on August 28, 2005; 

17 (C) perform risk assessments of all pro18 grams and operations related to recovery from 

19 Hurricane Katrina and implement internal con20 trols and program oversight based on risk of 

21 waste, fraud, or abuse; 

22 (D) report directly to the head of the Of23 fice regarding financial management matters; 


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1 (E) oversee all financial management ac2 tivities relating to the programs and operations 

3 of the Hurricane Katrina recovery effort; 

4 (F) develop and maintain an integrated ac5 counting and financial management system, in6 cluding financial reporting and internal con7 trols, which— 

8 (i) complies with applicable account9 ing principles, standards, and require10 ments, and internal control standards; 

11 (ii) complies with such policies and re12 quirements as may be prescribed by the 

13 Director of the Office of Management and 

14 Budget; 

15 (iii) complies with any other require16 ments applicable to such systems; and 

17 (iv) provides for— 

18 (I) complete, reliable, consistent, 

19 and timely information which is pre20 pared on a uniform basis and which is 

21 responsive to the financial information 

22 needs of the Office; 

23 (II) the development and report24 ing of cost information; 


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1 (III) the integration of account2 ing and budgeting information; and 

3 (IV) the systematic measurement 

4 of performance; 

5 (G) monitor the financial execution of the 

6 budget of Federal agencies relating to recovery 

7 from Hurricane Katrina in relation to actual 

8 expenditures, and prepare and submit to the 

9 head of the Office timely performance reports; 

10 (H) have access to all records, reports, au11 dits, reviews, documents, papers, recommenda12 tions, or other material which are the property 

13 of Federal agencies or which are available to 

14 the agencies, and which relate to programs and 

15 operations with respect to which the Chief Fi16 nancial Officer has responsibilities; 

17 (I) request such information or assistance 

18 as may be necessary for carrying out the duties 

19 and responsibilities provided by this section 

20 from any Federal, State, or local governmental 

21 entity, including any Chief Financial Officer 

22 under section 902 of title 31, United States 

23 Code, and, upon receiving such request, insofar 

24 as is practicable and not in contravention of 

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1 mental entity or Chief Financial Officer under 

2 section 902 shall cooperate and furnish such re3 quested information or assistance; 

4 (J) to the extent and in such amounts as 

5 may be provided in advance by appropriations 

6 Acts, be authorized to— 

7 (i) enter into contracts and other ar8 rangements with public agencies and with 

9 private persons for the preparation of fi10 nancial statements, studies, analyses, and 

11 other services; and 

12 (ii) make such payments as may be 

13 necessary to carry out this section; 

14 (K) for purposes of the Improper Pay15 ments Information Act of 2002 (31 U.S.C. 

16 3321 note), perform, in consultation with the 

17 Office of Management and Budget, the func18 tions of the head of an agency for any activity 

19 relating to the recovery from Hurricane Katrina 

20 that is not currently the responsibility of the 

21 head of an agency under that Act; and 

22 (L) transmit a report, on a quarterly basis, 

23 regarding any program or activity identified by 

24 the Chief Financial Officer as susceptible to 

25 significant improper payments under section 


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1 2(a) of the Improper Payments Information Act 

2 of 2002 (31 U.S.C. 3321 note) to the appro3 priate inspector general. 

4 (2) ACCESS.—Except as provided in paragraph 

5 (1)(I), this subsection does not provide to the Chief 

6 Financial Officer any access greater than permitted 

7 under any other law to records, reports, audits, re8 views, documents, papers, recommendations, or 

9 other material of any Office of Inspector General es10 tablished under the Inspector General Act of 1978 

11 (5 U.S.C. App.). 

12 (3) COORDINATION OF AGENCIES.—In the per13 formance of the authorities and functions under 

14 paragraph (1) by the Chief Financial Officer the 

15 President (or the President’s designee) shall act as 

16 the head of the Office and the Chief Financial Offi17 cer shall have management and oversight of all 

18 agencies performing activities relating to the recov19 ery from Hurricane Katrina. 

20 (4) REGULAR REPORTS.— 

21 (A) IN GENERAL.—Every month the Chief 

22 Financial Officer shall submit a financial report 

23 on the activities for which the Chief Financial 

24 Officer has management and oversight respon25 sibilities to— 


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1 (i) the Committee on Homeland Secu2 rity and Governmental Affairs of the Sen3 ate; 

4 (ii) the Committee on Homeland Se5 curity of the House of Representatives; 

6 (iii) the Committees on Appropria7 tions of the Senate and House of Rep8 resentatives; and 

9 (iv) the Committee on Government 

10 Reform of the House of Representatives. 

11 (B) CONTENTS.—Each report under this 

12 paragraph shall include— 

13 (i) the extent to which Federal relief 

14 funds have been given to individuals and 

15 organizations most in need of financial as16 sistance; 

17 (ii) the extent to which Federal recon18 struction funds have been made available 

19 to business entities that are based in Lou20 isiana, Mississippi, Alabama, or Florida or 

21 business entities that hire workers who re22 sided in those States on August 28, 2005; 

23 and 


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1 (iii) the extent to which Federal agen2 cies have made use of sole source, no-bid 

3 or cost-plus contracts. 

4 (C) FIRST REPORT.—The first report 

5 under this paragraph shall be submitted for the 

6 first full month for which a Chief Financial Of7 ficer has been appointed. 

8 (d) RESPONSIBILITIES OF CHIEF FINANCIAL OFFI9 CERS.—Nothing in this Act shall be construed to relieve 

10 the responsibilities of any Chief Financial Officer under 

11 section 902 of title 31, United States Code. 

12 (e) AVAILABILITY OF RECORDS.—Upon request to 

13 the Chief Financial Officer, the Office shall make the 

14 records of the Office available to the Inspector General 

15 of any Federal agency performing recovery activities relat16 ing to Hurricane Katrina, or to any Special Inspector 

17 General designated to investigate such activities, for the 

18 purpose of performing the duties of that Inspector General 

19 under the Inspector General Act of 1978 (5 U.S.C. App.). 

20 SEC. 103. REPORTS OF THE GOVERNMENT ACCOUNT21 ABILITY OFFICE. 

22 The Government Accountability Office shall provide 

23 quarterly reports to the committees described under sec24 tion 102(c)(4)(A) relating to all activities and expendi25 tures overseen by the Office, including— 


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1 (1) the accuracy of reports submitted by the 

2 Chief Financial Officer to Congress; 

3 (2) the extent to which agencies performing ac4 tivities relating to the recovery from Hurricane 

5 Katrina have made use of sole source, no-bid or 

6 cost-plus contracts; 

7 (3) whether Federal funds expended by State 

8 and local government agencies were spent for their 

9 intended use; 

10 (4) the extent to which Federal relief funds 

11 have been distributed to individuals and organiza12 tions most affected by Hurricane Katrina and Fed13 eral reconstruction funds have been made available 

14 to business entities that are based in Louisiana, Mis15 sissippi, Alabama, or Florida or business entities 

16 that hire workers who resided in those States on Au17 gust 28, 2005; and 

18 (5) the extent to which internal controls to pre19 vent waste, fraud, or abuse exist in the use of Fed20 eral funds relating to the recovery from Hurricane 

21 Katrina. 

22 SEC. 104. ADMINISTRATIVE AND SUPPORT SERVICES. 

23 (a) IN GENERAL.—The President shall provide ad24 ministrative and support services (including office space) 

25 for the Office and the Chief Financial Officer. 


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1 (b) PERSONNEL.—The President shall provide for 

2 personnel for the Office through the detail of Federal em3 ployees. Any Federal employee may be detailed to the Of4 fice without reimbursement, and such detail shall be with5 out interruption or loss of civil service status or privilege. 

6 SEC. 105. PUBLIC REPORTING. 

7 (a) NEWSPAPER REPORTING.—A summary of the 

8 monthly financial report required under section 102(c)(4) 

9 shall be published in a newspaper of general circulation 

10 in each county or parish affected by Hurricane Katrina, 

11 and shall include— 

12 (1) the total amount of Federal reconstruction 

13 expenditures for the preceding month; 

14 (2) the percentage of those expenditures made 

15 available to business entities that are based in Lou16 isiana, Mississippi, Alabama, or Florida or business 

17 entities that hire workers who resided in those 

18 States on August 28, 2005; 

19 (3) the percentage of Federal expenditures 

20 which involve sole source or cost-plus contracts; 

21 (4) information on how to access a full copy of 

22 the report on an accessible Federal Government 

23 website; and 


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1 (5) an electronic mail address and a toll-free 

2 telephone number through which local residents may 

3 contact the Office to report fraud, waste, or abuse. 

4 (b) PUBLIC AVAILABILITY OF CONTRACT AWARD IN5 FORMATION.— 

6 (1) REQUIREMENT.—Not later than 30 days 

7 after the award of a Hurricane Katrina-related con8 tract by an executive agency, the chief financial offi9 cer shall make publicly available the following infor10 mation with respect to the contract: 

11 (A) The name and address of the con12 tractor. 

13 (B) The date of award of the contract. 

14 (C) The number of offers received in re15 sponse to the solicitation. 

16 (D) The total amount of the contract. 

17 (E) The contract type, including a general 

18 description of the items or services to be pro19 cured under the contract. 

20 (F) With respect to a procurement carried 

21 out using procedures other than competitive 

22 procedures— 

23 (i) the authority for using such proce24 dures under section 303(c) of title III of 

25 the Federal Property and Administrative 


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1 Services Act of 1949 (41 U.S.C. 253(c)) or 

2 section 2304(c) of title 10, United States 

3 Code; and 

4 (ii) the number of sources from which 

5 bids or proposals were solicited. 

6 (G) The general reasons for selecting the 

7 contractor. 

8 (H) An electronic mail address and toll9 free telephone number through which local resi10 dents may contact the agency to report fraud, 

11 waste, or abuse. 

12 (2) PUBLIC AVAILABILITY.—The information 

13 required under paragraph (1) shall be made avail14 able by— 

15 (A) publishing in a newspaper of general 

16 circulation in the local government unit where 

17 a majority of the contract is to be performed; 

18 and 

19 (B) posting on an accessible Federal Gov20 ernment website. 

21 (3) DEFINITION.—In this section, the term ‘‘ex22 ecutive agency’’ has the meaning provided in section 

23 4 of the Office of Federal Procurement Policy Act 

24 (41 U.S.C. 403). 


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1 SEC. 106. AUTHORIZATION OF APPROPRIATIONS. 

2 There are authorized to be appropriated such sums 

3 as necessary to carry out this Act. 

4 SEC. 107. TERMINATION OF OFFICE. 

5 (a) IN GENERAL.—The Office and position of Chief 

6 Financial Officer shall terminate 1 year after the date of 

7 enactment of this Act. 

8 (b) EXTENSION.—The President may extend the date 

9 of termination annually under subsection (a) to any date 

10 occurring before 5 years after the date of enactment of 

11 this Act. 

12 (c) NOTIFICATION.—The President shall notify the 

13 committees described under section 102(c)(4)(A) 60 days 

14 before any extension of the date of termination under this 

15 section. 

16 TITLE II—FAMILY LOCATOR 

17 SYSTEM 

18 SEC. 201. DEFINITIONS. 

19 In this title— 

20 (1) the term ‘‘Department’’ means the Depart21 ment of Homeland Security; 

22 (2) the terms ‘‘emergency’’ and ‘‘major dis23 aster’’ have the same meaning as in section 102 of 

24 the Robert T. Stafford Disaster Relief and Emer25 gency Assistance Act (42 U.S.C. 5122); 


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1 (3) the term ‘‘Secretary’’ means the Secretary 

2 of Homeland Security; and 

3 (4) the term ‘‘System’’ means the National 

4 Emergency Family Locator System established 

5 under this title. 

6 SEC. 202. NATIONAL EMERGENCY FAMILY LOCATOR SYS7 TEM. 

8 (a) IN GENERAL.—Not later than 180 days after the 

9 date of enactment of this Act, the Secretary shall establish 

10 within the Department the National Family Locator Sys11 tem. 

12 (b) PURPOSES.—The purposes of the System are 

13 to— 

14 (1) enable individuals displaced by an emer15 gency or major disaster to provide to the Depart16 ment the name and location of the displaced individ17 uals, and any other relevant information, using the 

18 telephone, the Internet, and other means determined 

19 to be appropriate by the Secretary; and 

20 (2) enable the Department— 

21 (A) to compile the information collected 

22 under paragraph (1); and 

23 (B) to provide the information collected 

24 and compiled under the System to the family 

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1 gency or major disaster and law enforcement 

2 officials. 

3 (c) CONSIDERATIONS.—In establishing the System 

4 under subsection (a), the Secretary shall take into account 

5 and, to the maximum extent practicable, incorporate into 

6 the System— 

7 (1) intermediary-based locator systems, such as 

8 the National Next of Kin Registry; and 

9 (2) information from existing family locator 

10 databases, such as the Family News Network of the 

11 International Committee of the Red Cross. 

12 SEC. 203. AUTHORIZATION OF APPROPRIATIONS. 

13 There are authorized to be appropriated such sums 

14 as are necessary to carry out this title. 

15 TITLE III—EVACUATION OF INDI16 VIDUALS WITH SPECIAL 

17 NEEDS 

18 SEC. 301. FINDINGS AND PURPOSE. 

19 (a) FINDINGS.—Congress makes the following find20 ings: 

21 (1) Many of the lives lost to Hurricane Katrina 

22 and the flooding that ensued could have been pre23 vented had everyone been evacuated before the hur24 ricane came ashore. 


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1 (2) Many people who were not evacuated lacked 

2 the resources to evacuate. 

3 (3) Many people who lacked the resources to 

4 evacuate— 

5 (A) did not have access to any means of 

6 transportation to evacuate; 

7 (B) had neither a vehicle nor the funding 

8 to pay for transportation out of the threatened 

9 areas; and 

10 (C) did not have access to, nor could they 

11 afford, temporary accommodations outside the 

12 threatened areas. 

13 (4) Many elderly and disabled individuals, in14 cluding those in hospitals and nursing homes, were 

15 physically incapable of leaving on their own. 

16 (5) In St. Bernard Parish, Louisiana, an esti17 mated 34 of 60 residents in the St. Rita nursing 

18 home perished in the rising flood waters in the after19 math of Hurricane Katrina. 

20 (6) A more effective predisaster and 

21 postdisaster plan for evacuation that addressed the 

22 requirements of those with special needs, such as 

23 those without transportation or those with physical 

24 disabilities, could have helped save lives. 


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1 (b) PURPOSE.—The purpose of this title is to ensure 

2 the preparation of communities for future natural, acci3 dental, or deliberate disasters by ensuring that the States 

4 prepare for the evacuation of individuals with special 

5 needs. 

6 SEC. 302. EVACUATION PLANS FOR INDIVIDUALS WITH SPE7 CIAL NEEDS. 

8 The Secretary of Homeland Security, acting through 

9 the Office of State and Local Government Coordination 

10 and Preparedness, shall take appropriate actions to ensure 

11 that each State, in its homeland security strategy or other 

12 homeland security plan, provides detailed and comprehen13 sive information regarding its predisaster and postdisaster 

14 plans for the evacuation of individuals with special needs, 

15 including low-income individuals and families, disabled in16 dividuals, the homeless, individuals who do not speak 

17 English, and the elderly, in an emergency that would war18 rant their evacuation, including plans for the provision of 

19 food, water, and shelter for evacuees. 

20 SEC. 303. REPORT TO CONGRESS. 

21 (a) IN GENERAL.—Not later than 1 year after the 

22 date of enactment of this Act, the Secretary of Homeland 

23 Security shall submit to Congress a report setting forth 

24 the plans of the States to evacuate individuals with special 


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1 needs in an emergency that would warrant their evacu2 ation. 

3 (b) CONTENTS.—The report submitted under sub4 section (a) shall include a discussion of— 

5 (1) whether the States have the resources nec6 essary to implement fully their evacuation plans; and 

7 (2) the manner in which the plans of the States 

8 are integrated with the response plans of the Fed9 eral Government for an emergency that would re10 quire the evacuation of individuals with special 

11 needs. 

12 TITLE IV—HURRICANE KATRINA 

13 EMERGENCY HEALTH WORK14 FORCE 

15 SEC. 401. DEFINITIONS. 

16 In this title: 

17 (1) CORPS.—The term ‘‘Corps’’ means the Na18 tional Emergency Health Professionals Volunteer 

19 Corps established under section 402. 

20 (2) FEMA.—The term ‘‘FEMA’’ means the 

21 Federal Emergency Management Agency of the 

22 Emergency Preparedness and Response Directorate 

23 of the Department of Homeland Security. 

24 (3) HEALTH PROFESSIONAL.—The term 

25 ‘‘health professional’’ means a physician, nurse, 


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1 mental health provider, paramedic, pharmacist, pub2 lic health practitioner, veterinarian, epidemiologist, 

3 statistician, laboratorian, infectious disease spe4 cialist, or other individual provider of health-related 

5 services, as designated by the Secretary. 

6 (4) SECRETARY.—The term ‘‘Secretary’’ means 

7 the Secretary of Health and Human Services. 

8 SEC. 402. NATIONAL EMERGENCY HEALTH PROFESSIONALS 

9 VOLUNTEER CORPS. 

10 (a) IN GENERAL.—Not later than 6 months after the 

11 date of enactment of this Act, the Secretary shall establish 

12 a National Emergency Health Professionals Volunteer 

13 Corps to provide for an adequate supply of health profes14 sionals in the case of a Federal, State, or local emergency. 

15 The Corps shall be headed by a Director to be appointed 

16 by the Secretary. 

17 (b) DUTIES.—The Director of the Corps shall con18 duct the following activities: 

19 (1) Analysis of need to determine the number 

20 and types of Corps volunteers necessary. 

21 (2) Determination of minimum licensing or 

22 credentialing standards for each type of Corps vol23 unteers. 

24 (3) Recruitment and retention of health profes25 sionals. 


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1 (4) Development of the Corps volunteer certifi2 cation program in accordance with subsection (d). 

3 (5) Development of training programs. 

4 (6) Development of protocols for contact and 

5 deployment of Corps volunteers. 

6 (7) Coordination of Corps volunteers with Med7 ical Reserve Corps and other volunteer networks. 

8 (c) COMPOSITION.—The Corps shall be composed of 

9 health professionals who— 

10 (1) have training and expertise in the areas of 

11 medicine, nursing, mental health, public health, 

12 pharmacy, dentistry, emergency medical services, 

13 veterinary science, laboratory science, and other 

14 areas as determined appropriate by the Director of 

15 the Corps; 

16 (2) have been certified in accordance with the 

17 certification program developed under subsection 

18 (b)(4); 

19 (3) are geographically diverse in residence; and 

20 (4) are willing to be deployed in case of emer21 gency. 

22 (d) CERTIFICATION.—The Director of the Corps, in 

23 collaboration with the Director of FEMA and the Admin24 istrator of the Health Resources and Services Administra25 tion, shall establish a program for the periodic certifiVerDate Aug 31 2005 02:32 Feb 18, 2006 Jkt 049200 PO 00000 Frm 00023 Fmt 6652 Sfmt 6201 E:\BILLS\S2319.IS S2319

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1 cation of health professionals who volunteer for the Corps 

2 which shall include, with respect to the health professional 

3 involved, an assessment of— 

4 (1) the professional expertise and training of 

5 the professional, including licensure and 

6 credentialing as appropriate; 

7 (2) the completion by the professional of the 

8 training programs developed under subsection 

9 (b)(5), as required by the Director; and 

10 (3) the preparedness of the professional for 

11 emergency response which may include written ex12 amination and hands-on skill assessment. 

13 (e) DEPLOYMENT.— 

14 (1) IN GENERAL.—During a Federal, State, or 

15 local emergency (as designated by the Secretary or 

16 the Secretary of Homeland Security), the Secretary, 

17 in consultation with the Secretary of Homeland Se18 curity, shall have the authority to deploy members of 

19 the Corps to areas of need, based on the medical ex20 pertise required. 

21 (2) LIMITATION.—State and local officials shall 

22 have no authority to deploy members of the Corps, 

23 but may request the services of such members. 

24 (f) COMPENSATION, EXPENSES, AND TRANSPOR25 TATION.—While engaged in performing duties as a memVerDate Aug 31 2005 02:32 Feb 18, 2006 Jkt 049200 PO 00000 Frm 00024 Fmt 6652 Sfmt 6201 E:\BILLS\S2319.IS S2319

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1 ber of the Corps pursuant to an assignment by the Sec2 retary (including periods of travel to facilitate such assign3 ment), members of the Corps who are not otherwise em4 ployed by the Federal Government shall be— 

5 (1) compensated for temporary or intermittent 

6 services as experts or consultants as provided for 

7 under section 3109 of title 5, United States Code; 

8 and 

9 (2) allowed travel or transportation expenses, 

10 including per diem in lieu of subsistence, as provided 

11 for under section 5703 of such title. 

12 (g) AUTHORIZATION OF APPROPRIATIONS.—There is 

13 authorized to be appropriated such sums as may be nec14 essary to carry out this Act (and the amendments made 

15 by this Act) for each of fiscal years 2006 through 2010. 

16 SEC. 403. HEALTH PROFESSIONAL DATABASE. 

17 (a) ESTABLISHMENT.—Not later than 12 months 

18 after the date of enactment of this Act, the Director of 

19 the Centers for Disease Control and Prevention (referred 

20 to in this section as the ‘‘Director’’), in collaboration with 

21 the Administrator of the Health Resources and Services 

22 Administration, State medical and nursing licensing 

23 boards, medical and nursing professional societies, and 

24 other relevant entities, shall establish a national database 

25 of health professionals (including physicians, nurses, and 


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1 other health professionals determined appropriate by the 

2 Director) to increase health preparedness for Federal 

3 emergencies. 

4 (b) REQUIREMENTS OF DATABASE.—The database 

5 established under subsection (a) shall include— 

6 (1) with respect to each health professional list7 ed in the database— 

8 (A) the name and contact information of 

9 the professional; 

10 (B) the State or States in which the pro11 fessional is licensed or certified; 

12 (C) the area or areas in which the profes13 sional has specialty or subspecialty training; 

14 and 

15 (D) a description of the emergency re16 sponse training received by the professional; 

17 and 

18 (2) the name of each member of the Corps, the 

19 Medical Reserve Corps, the National Disaster Med20 ical System, the Commissioned Corps of the Public 

21 Health Services, and any other relevant federally22 sponsored or administered programs. 

23 (c) ACCESSIBILITY.—The Director shall ensure that 

24 the database established under subsection (a) is electroni25 cally accessible by State and local health departments. In 


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1 the case of a disaster or other emergency that results in 

2 a loss of electrical power, the Director shall ensure that 

3 the affected State or locality has access to the database 

4 through other means. 

5 (d) UPDATING OF INFORMATION.—The Director 

6 shall, on at least a biennial basis, provide for the updating 

7 of the information contained in the database. 

8 SEC. 404. PROTECTION OF HEALTH PROFESSIONAL VOLUN9 TEERS. 

10 Section 4303(13) of title 38, United States Code, is 

11 amended by adding at the end the following: ‘‘Such term 

12 shall include physicians or other health professionals (as 

13 defined in section 401 of the Hurricane Katrina Recovery 

14 Act of 2006) who are providing medical treatment or serv15 ices related to a major disaster as declared by the Presi16 dent under the authority of the Robert T. Stafford Dis17 aster Relief and Emergency Assistance Act (42 U.S.C. 

18 5121 et seq.), including members of the National Emer19 gency Health Professionals Volunteer Corps, health pro20 fessionals who are activated by the Federal Emergency 

21 Management Agency, and other health professionals who 

22 provide services on a volunteer basis in a formal capacity 

23 as determined by the Secretary of Health and Human 

24 Services or the Secretary of Homeland Security. The SecVerDate Aug 31 2005 02:32 Feb 18, 2006 Jkt 049200 PO 00000 Frm 00027 Fmt 6652 Sfmt 6201 E:\BILLS\S2319.IS S2319

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1 retary shall promulgate guidelines to implement the pre2 vious sentence’’. 

3 SEC. 405. PREPAREDNESS TRAINING REQUIREMENTS. 

4 (a) CHILDREN’S HOSPITALS THAT OPERATE GRAD5 UATE MEDICAL EDUCATION PROGRAMS.—Section 340E 

6 of the Public Health Service Act (42 U.S.C. 256e) is 

7 amended by adding at the end the following: 

8 ‘‘(h) REQUIREMENT TO PROVIDE DISASTER PRE9 PAREDNESS TRAINING.—To be eligible to receive a pay10 ment under this section, a children’s hospital shall provide 

11 disaster preparedness training as part of any approved 

12 graduate medical residency training program provided by 

13 the hospital.’’. 

14 (b) MEDICARE GRADUATE MEDICAL EDUCATION

15 PROGRAMS.— 

16 (1) IN GENERAL.—Section 1886(h) of the So17 cial Security Act (42 U.S.C. 1395ww(h)) is amended 

18 by adding at the end the following: 

19 ‘‘(8) REQUIREMENT FOR DISASTER PREPARED20 NESS TRAINING.—In order to be eligible to receive a 

21 payment under this subsection, a hospital shall pro22 vide disaster preparedness training as part of any 

23 approved medical residency training program pro24 vided by the hospital.’’. 


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1 (2) EFFECTIVE DATE.—The amendment made 

2 by paragraph (1) shall take effect on January 1, 

3 2007. 

4 SEC. 406. LIABILITY PROTECTIONS. 

5 Section 224 of the Public Health Service Act (42 

6 U.S.C. 233) is amended by adding at the end the fol7 lowing: 

8 ‘‘(q) VOLUNTEER SERVICES PROVIDED BY HEALTH

9 PROFESSIONALS DURING DISASTERS.— 

10 ‘‘(1) IN GENERAL.—Notwithstanding any other 

11 provision of law, for purposes of this section, a vol12 unteer health professional, in providing a qualifying 

13 health service related to a major disaster as declared 

14 by the President under the authority of the Robert 

15 T. Stafford Disaster Relief and Emergency Assist16 ance Act (42 U.S.C. 5121 et seq.), shall be deemed 

17 to be an employee of the Public Health Service. The 

18 preceding sentence is subject to the provisions of 

19 this subsection. 

20 ‘‘(2) VOLUNTEER HEALTH PROFESSIONAL.—In 

21 providing a qualifying health service to an indi22 vidual, a health professional shall for purposes of 

23 this subsection be considered to be a volunteer 

24 health professional if the following conditions are 

25 met: 


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1 ‘‘(A) The service is provided to the indi2 vidual as a result of the occurrence of a major 

3 disaster as declared by the President under the 

4 authority of the Robert T. Stafford Disaster 

5 Relief and Emergency Assistance Act. 

6 ‘‘(B) The service is a qualifying health 

7 service (as defined in paragraph (3)(B)). 

8 ‘‘(C) Neither the health professional or any 

9 institution receives any compensation for the 

10 service from the individual or from any third11 party payor (including reimbursement under 

12 any insurance policy or health plan, or under 

13 any Federal or State health benefits program). 

14 With respect to compliance with such condition, 

15 the health professional may receive repayment 

16 from a Federal or State agency for reasonable 

17 expenses incurred by the health professional in 

18 the provision of the service to the individual. 

19 ‘‘(3) DEFINITIONS.— 

20 ‘‘(A) HEALTH PROFESSIONAL.—In this 

21 subsection, the term ‘health professional’ means 

22 a physician, nurse, mental health provider, 

23 pharmacist, paramedic, and other individual 

24 provider as designated by the Secretary. 


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1 ‘‘(B) QUALIFYING HEALTH SERVICE.—In 

2 this subsection, the term ‘qualifying health 

3 service’ means any medical assistance provided 

4 during, and as the result of the occupancy of, 

5 a major disaster as declared by the President 

6 under the authority of the Robert T. Stafford 

7 Disaster Relief and Emergency Assistance Act. 

8 ‘‘(4) APPLICATION OF PROVISIONS.—Subsection 

9 (g) (other than paragraphs (3) through (5)) and 

10 subsections (h), (i), and (l) shall apply to a volunteer 

11 health professional for purposes of this subsection to 

12 the same extent and in the same manner as such 

13 subsections apply to an officer, governing board 

14 member, employee, or contractor of an entity de15 scribed in subsection (g)(4), subject to paragraph 

16 (5) and subject to the following: 

17 ‘‘(A) The first sentence of paragraph (1) 

18 applies in lieu of the first sentence of subsection 

19 (g)(1)(A). 

20 ‘‘(B) In the case of a health professional 

21 who is determined by the Secretary pursuant to 

22 subsection (g)(1)(E) to be a volunteer health 

23 professional, this subsection applies to the 

24 health professional (with respect to the institu25 tion or facility sponsoring the health profesVerDate Aug 31 2005 02:32 Feb 18, 2006 Jkt 049200 PO 00000 Frm 00031 Fmt 6652 Sfmt 6201 E:\BILLS\S2319.IS S2319

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1 sional for any cause of action arising from an 

2 act or omission of the health professional occur3 ring on or after the date on which the Secretary 

4 makes such determination and until the major 

5 disaster involved has ended. 

6 ‘‘(C) Subsection (g)(1)(F) applies to a 

7 health professional for purposes of this sub8 section only to the extent that, in providing 

9 health services to an individual, each of the con10 ditions specified in paragraph (2) is met. 

11 ‘‘(5) AUTHORIZATION OF APPROPRIATIONS.— 

12 ‘‘(A) IN GENERAL.—For purposes of mak13 ing payments for judgments against the United 

14 States (together with related fees and expenses 

15 of witnesses) pursuant to this section arising 

16 from the acts or omissions of volunteer health 

17 professionals, there is authorized such sums as 

18 may be necessary in each fiscal year. 

19 ‘‘(B) FUND.—The Secretary shall establish 

20 a fund for purposes of this subsection. Each fis21 cal year amounts appropriated under subpara22 graph (A) shall be deposited in such fund. 

23 ‘‘(C) ESTIMATES.—Not later than May 1 

24 of each fiscal year, the Attorney General, in 

25 consultation with the Secretary, shall submit to 


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1 the Congress a report providing an estimate of 

2 the amount of claims (together with related fees 

3 and expenses of witnesses) that, by reason of 

4 the acts or omissions of volunteer health profes5 sionals, will be paid pursuant to this subsection 

6 during the calendar year that begins in the fol7 lowing fiscal year. Subsection (k)(1)(B) applies 

8 to the estimate under the preceding sentence re9 garding volunteer health professionals to the 

10 same extent and in the same manner as such 

11 subsection applies to the estimate under such 

12 subsection regarding officers, governing board 

13 members, employees, and contractors of entities 

14 described in subsection (g)(4). 

15 ‘‘(D) TRANSFERS.—Not later than Decem16 ber 31 of each fiscal year, the Secretary shall 

17 transfer from the fund under subparagraph (B) 

18 to the appropriate accounts in the Treasury an 

19 amount equal to the estimate made under sub20 paragraph (C) for the calendar year beginning 

21 in such fiscal year, subject to the extent of 

22 amounts in the fund. 

23 ‘‘(6) REGULATIONS.—The Secretary may issue 

24 regulations for carrying out this subsection.’’. 


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1 SEC. 407. GENERAL WAIVER AUTHORITY. 

2 Notwithstanding any other provision of law, the Sec3 retary and the Secretary of Homeland Security shall have 

4 the authority to waive any requirement of Federal law ap5 plicable to health professions if such requirement would 

6 limit the ability of health professionals to provide volun7 teer medical services related to a major disaster as de8 clared by the President under the authority of the Robert 

9 T. Stafford Disaster Relief and Emergency Assistance Act 

10 (42 U.S.C. 5121 et seq.). 

11 TITLE V—HEALTH PROVISIONS 

12 SEC. 501. REPAIR AND DISPARITIES GRANTS. 

13 (a) CONSTRUCTION AND REPAIR GRANTS.—The Sec14 retary of Health and Human Services (referred to in this 

15 section as the ‘‘Secretary’’) shall make grants to public 

16 health facilities and loans to private health facilities, for 

17 the purpose of constructing, modernizing, or repairing 

18 hospitals, clinics, health centers, laboratories, and other 

19 health facilities in a Hurricane Katrina disaster area dam20 aged as a result of Hurricane Katrina to— 

21 (1) construct hospitals, clinics, health centers, 

22 laboratories, mental health and substance abuse fa23 cilities that meet the standards of the Joint Com24 mission on the Accreditation of Healthcare Organi25 zations (referred to in this title as ‘‘JCAHO’’); 


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1 (2) repair or modernize such public or private 

2 hospitals or public facilities as provide health care or 

3 health related services; and 

4 (3) bring hospitals and public health facilities in 

5 compliance with such JCAHO standards and re6 quirements of the Centers for Medicare & Medicaid 

7 Services. 

8 (b) HEALTH DISPARITY GRANTS.—The Secretary, 

9 acting through the Administrator of the Health and 

10 Human Resources Administration and the Director of the 

11 Office of Minority Health, and in consultation with the 

12 Director of the Office of Community Services and the Di13 rector of the National Center for Minority Health and 

14 Health Disparities, shall make grants to assist individuals, 

15 hospitals, businesses, schools, minority health associa16 tions, nonprofit organizations, community-based organiza17 tions, healthcare clinics, foundations, and other entities in 

18 communities in a Hurricane Katrina disaster area and 

19 that disproportionately experience disparities in health 

20 status and healthcare which are seeking— 

21 (1) to improve the health of minority individ22 uals in the community and to reduce disparities in 

23 health status and healthcare by assisting individuals 

24 in accessing Federal programs or by other means; 

25 and 


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1 (2) to coordinate the efforts of governmental 

2 and private entities regarding the elimination of ra3 cial and ethnic health status and healthcare. 

4 (c) APPLICATION.— 

5 (1) IN GENERAL.—To obtain a grant under this 

6 section, an applicant shall submit to the Secretary 

7 an application in such form and in such manner as 

8 the Secretary may require. 

9 (2) CONSTRUCTION AND REPAIR GRANTS.—An 

10 application for a grant under subsection (a) shall de11 scribe, with such specificity as the Secretary shall 

12 require, the damage sustained as a result of Hurri13 cane Katrina and the steps proposed to address the 

14 damage. 

15 (3) HEALTH DISPARITY GRANTS.—An applica16 tion for a grant under subsection (b) shall dem17 onstrate that the communities to be served are those 

18 that disproportionately experience disparities in 

19 health status and healthcare and shall set forth a 

20 strategic plan for reducing those disparities by— 

21 (A) describing the coordinated health, eco22 nomic, human, community, and physical devel23 opment plan and related activities proposed for 

24 the community; 


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1 (B) identifying the projected amount of 

2 Federal, State, local and private resources that 

3 will be available in the area and the private and 

4 public partnerships to be used (including any 

5 participation by or cooperation with univer6 sities, colleges, foundations, nonprofit organiza7 tions, medical centers, hospitals, health clinics, 

8 school districts, or other private and public en9 tities); 

10 (C) identifying the funding requested 

11 under any Federal program in support of the 

12 proposed activities; 

13 (D) identifying benchmarks for measuring 

14 the success of carrying out the strategic plan; 

15 (E) demonstrating the ability to reach and 

16 service the targeted underserved minority com17 munity populations in a culturally appropriate 

18 and linguistically responsive manner; and 

19 (F) demonstrating a capacity and infra20 structure to provide long-term community re21 sponse that is culturally appropriate and lin22 guistically responsive to communities that dis23 proportionately experience disparities in health 

24 and healthcare. 


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1 (d) DEFINITION.—In this section, the term ‘‘Hurri2 cane Katrina disaster area’’ means an area which the 

3 President has designated as a disaster area as a result 

4 of Hurricane Katrina of August 2005. 

5 (e) AUTHORIZATION OF APPROPRIATIONS.—There 

6 are authorized to be appropriated to carry out this section, 

7 such sums as may be necessary for fiscal years 2006 

8 through 2010, not to exceed $500,000,000. 

9 TITLE VI—HOUSING AND 

10 COMMUNITY REBUILDING 

11 SEC. 601. DEFINITIONS. 

12 In this title, the following definitions shall apply: 

13 (1) AFFECTED FAMILY.—The term ‘‘affected 

14 family’’ means a person or household whose primary 

15 residence, as of August 28, 2005— 

16 (A) was located in an area within which 

17 the President declared, under the Robert T. 

18 Stafford Disaster Assistance and Emergency 

19 Relief Act, a major disaster to have occurred 

20 pursuant to Hurricane Katrina; and 

21 (B) was, as a result of Hurricane Katrina, 

22 destroyed or damaged to such an extent that 

23 the residence is not habitable. 

24 (2) COVERED PROPERTY.—The term ‘‘covered 

25 property’’ means any property that— 


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1 (A) is designed as a dwelling for occupancy 

2 by 1 to 4 families; 

3 (B) was previously subject to a mortgage 

4 insured under the National Housing Act (12 

5 U.S.C. 1701 et seq.); and 

6 (C) is owned by the Secretary pursuant to 

7 the payment of insurance benefits under such 

8 Act. 

9 (3) SECRETARY.—The term ‘‘Secretary’’ means 

10 the Secretary of Housing and Urban Development. 

11 SEC. 602. AFFORDABLE HOUSING FUND. 

12 (a) IN GENERAL.—Section 1337 of the Housing and 

13 Community Development Act of 1992 (12 U.S.C. 4567) 

14 is amended to read as follows: 

15 ‘‘SEC. 1337. AFFORDABLE HOUSING FUND. 

16 ‘‘(a) ESTABLISHMENT AND PURPOSE.— 

17 ‘‘(1) IN GENERAL.—Each enterprise shall es18 tablish and manage an affordable housing fund in 

19 accordance with this section. 

20 ‘‘(2) PURPOSE.—The purpose of each afford21 able housing fund established under paragraph (1) 

22 shall be— 

23 ‘‘(A) to increase home ownership for ex24 tremely low- and very low-income families; 


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1 ‘‘(B) to increase investment in housing 

2 in— 

3 ‘‘(i) low-income areas, and areas des4 ignated as qualified census tracts; or 

5 ‘‘(ii) an area of chronic economic dis6 tress pursuant to section 143(j) of the In7 ternal Revenue Code of 1986 (26 U.S.C. 

8 143(j)); 

9 ‘‘(C) to increase and preserve the supply of 

10 rental and owner-occupied housing for ex11 tremely low- and very low-income families; and 

12 ‘‘(D) to increase investment in economic 

13 and community development in economically 

14 underserved areas. 

15 ‘‘(b) ALLOCATION OF AMOUNTS BY ENTERPRISES.— 

16 ‘‘(1) IN GENERAL.—In accordance with regula17 tions issued by the Director under subsection (l), 

18 and subject to paragraph (2), each enterprise shall 

19 allocate to the affordable housing fund of that enter20 prise— 

21 ‘‘(A) in 2006, 3.5 percent of the after-tax 

22 income of that enterprise for 2005; and 

23 ‘‘(B) in each year after 2006, 5 percent of 

24 the after-tax income of that enterprise for the 

25 preceding year. 


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1 ‘‘(2) LIMITATION.—An enterprise shall not be 

2 required to make an allocation to the affordable 

3 housing fund of that enterprise in any year unless— 

4 ‘‘(A) that enterprise is classified by the Di5 rector at the time of such allocation as ade6 quately capitalized; and 

7 ‘‘(B) that enterprise generated after-tax 

8 income for the preceding year. 

9 ‘‘(3) DETERMINATION OF AFTER-TAX IN10 COME.—For purposes of this section, the term 

11 ‘after-tax income’ means, with respect to an enter12 prise in any year, the amount reported by that en13 terprise for such year in the annual report of that 

14 enterprise for such year that is filed with the Securi15 ties and Exchange Commission, except that for any 

16 year in which no such filing is made by that enter17 prise or such filing is not timely made, such term 

18 means the amount determined by the Director based 

19 on the income tax return filings of that enterprise. 

20 ‘‘(c) SELECTION OF ACTIVITIES FUNDED USING AF21 FORDABLE HOUSING FUND AMOUNTS.—Amounts from 

22 the affordable housing fund of the enterprise may be used, 

23 or committed for use, only for activities that— 

24 ‘‘(1) are eligible under subsection (d) for such 

25 use; and 


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1 ‘‘(2) are selected for funding by the enterprise 

2 in accordance with the process and criteria for such 

3 selection established under subsection (l)(2)(C). 

4 ‘‘(d) ELIGIBLE ACTIVITIES.—Amounts from the af5 fordable housing fund of an enterprise shall be eligible for 

6 use, or for commitment for use, only for assistance for— 

7 ‘‘(1) the production, preservation, and rehabili8 tation of rental housing, including housing under the 

9 programs identified in section 1335(a)(2)(B), except 

10 that amounts provided from any such affordable 

11 housing fund may be used for the benefit only of ex12 tremely low- and very low-income families; 

13 ‘‘(2) the production, preservation, and rehabili14 tation of housing for home ownership, including such 

15 forms as downpayment assistance, closing cost as16 sistance, and assistance for interest-rate buy-downs, 

17 that— 

18 ‘‘(A) is available for purchase only for use 

19 as a principal residence by families that qualify 

20 both as— 

21 ‘‘(i) extremely low- and very-low in22 come families at the times described in 

23 subparagraphs (A) through (C) of section 

24 215(b)(2) of the Cranston-Gonzalez NaVerDate Aug 31 2005 02:32 Feb 18, 2006 Jkt 049200 PO 00000 Frm 00042 Fmt 6652 Sfmt 6201 E:\BILLS\S2319.IS S2319

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1 tional Affordable Housing Act (42 U.S.C. 

2 12745(b)(2)); and 

3 ‘‘(ii) first-time homebuyers, as such 

4 term is defined in section 104 of the Cran5 ston-Gonzalez National Affordable Housing 

6 Act (42 U.S.C. 12704), except that any 

7 reference in such section to assistance 

8 under title II of such Act shall for pur9 poses of this section be considered to refer 

10 to assistance from the affordable housing 

11 fund of the enterprise; 

12 ‘‘(B) has an initial purchase price that 

13 meets the requirements of section 215(b)(1) of 

14 the Cranston-Gonzalez National Affordable 

15 Housing Act; and 

16 ‘‘(C) is subject to the same resale restric17 tions established under section 215(b)(3) of the 

18 Cranston-Gonzalez National Affordable Hous19 ing Act and applicable to the participating ju20 risdiction that is the State in which such hous21 ing is located; and 

22 ‘‘(3) leveraged grants under subsection (e). 

23 ‘‘(e) LEVERAGED GRANTS.— 

24 ‘‘(1) IN GENERAL.—Pursuant to regulations 

25 issued by the Director, each enterprise shall carry 


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1 out a program under this subsection to make lever2 aged grants from amounts in the affordable housing 

3 fund of that enterprise, subject to the requirements 

4 under this subsection. 

5 ‘‘(2) ELIGIBLE PURPOSES.—Amounts from the 

6 affordable housing fund of an enterprise for a lever7 aged grant may be used only for— 

8 ‘‘(A) the development, preservation, reha9 bilitation, or purchase of affordable housing 

10 that meets underserved needs for affordable 

11 housing; 

12 ‘‘(B) community or economic development 

13 activities in economically underserved areas; or 

14 ‘‘(C) a combination of the activities identi15 fied in subparagraphs (A) and (B). 

16 ‘‘(3) ELIGIBLE SPONSORS.— 

17 ‘‘(A) IN GENERAL.—A leveraged grant 

18 under this subsection may be made only on be19 half of an eligible sponsor that meets such re20 quirements as the Director shall establish for 

21 experience and success in carrying out the types 

22 of activities proposed under the application of 

23 such eligible sponsor. 


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1 ‘‘(B) DEFINITION.—For purposes of this 

2 section the term ‘eligible sponsor’ includes the 

3 following entities: 

4 ‘‘(i) A low-income housing fund. 

5 ‘‘(ii) A housing finance agency of a 

6 State or unit of general local government. 

7 ‘‘(iii) A nonprofit organization having 

8 as one of its principal purposes the devel9 opment or management of affordable hous10 ing. 

11 ‘‘(iv) A community development finan12 cial institution. 

13 ‘‘(v) A national nonprofit housing 

14 intermediary. 

15 ‘‘(vi) A community development cor16 poration. 

17 ‘‘(vii) A community development enti18 ty. 

19 ‘‘(4) ELIGIBLE USES.—Amounts from the af20 fordable housing fund of an enterprise may be used 

21 under this subsection only for the following types of 

22 leveraged grants: 

23 ‘‘(A) To provide loan loss reserves. 

24 ‘‘(B) To capitalize a revolving loan fund. 


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1 ‘‘(C) To provide equity capitalization of an 

2 affordable housing fund. 

3 ‘‘(D) To provide equity capitalization of a 

4 community development or economic develop5 ment fund. 

6 ‘‘(E) For risk-sharing loans. 

7 ‘‘(F) For the funding of a specific, detailed 

8 investment plan that identifies the specific types 

9 of uses and the expected timeframes with re10 spect to such uses. 

11 ‘‘(5) APPLICATIONS.— 

12 ‘‘(A) IN GENERAL.—The Director shall 

13 provide, in the application process established 

14 under subsection (l)(2)(C), for an eligible spon15 sor under paragraph (3), to submit an applica16 tion to an enterprise for a leveraged grant 

17 under this subsection. 

18 ‘‘(B) CONTENT OF APPLICATION.—Each 

19 application required under subparagraph (A) 

20 shall include a detailed description of— 

21 ‘‘(i) the types of affordable housing or 

22 community or economic development activi23 ties for which the leveraged grant is made; 


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1 ‘‘(ii) the type of eligible leveraged 

2 grants under paragraph (4) to be made in 

3 the project; 

4 ‘‘(iii) the types, sources, and amounts 

5 of other funding for the project; and 

6 ‘‘(iv) the expected timeframe of the le7 veraged grant. 

8 ‘‘(6) LIMITATIONS.—The Director shall by reg9 ulation ensure that— 

10 ‘‘(A) a leveraged grant under this sub11 section is designed— 

12 ‘‘(i) to alleviate the need for afford13 able housing in underserved markets, as 

14 identified in section 1335(a) as having the 

15 greatest need for such housing; or 

16 ‘‘(ii) to address community and eco17 nomic development needs in economically 

18 underserved areas having the greatest 

19 need; and 

20 ‘‘(B) ensure that any returns from a lever21 aged grant— 

22 ‘‘(i) accrue to the affordable housing 

23 fund of the enterprise; and 

24 ‘‘(ii) are available for use only as pro25 vided under this section. 


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1 ‘‘(f) LIMITATIONS ON USE.— 

2 ‘‘(1) AMOUNTS FOR HOME OWNERSHIP.—Of 

3 any amounts allocated pursuant to subsection (b) in 

4 each year to the affordable housing fund of an enter5 prise, not less than 10 percent shall be used for ac6 tivities under subsection (d)(2). 

7 ‘‘(2) AMOUNTS FOR LEVERAGED GRANTS.—Of 

8 any amounts allocated pursuant to subsection (b) in 

9 each year to the affordable housing fund of an enter10 prise, not more than 12.5 percent shall be used for 

11 leveraged grants under subsection (e). 

12 ‘‘(3) DEADLINE FOR COMMITMENT OR USE.— 

13 Any amounts allocated to the affordable housing 

14 fund of an enterprise shall be used or committed for 

15 use within 2 years of the date of such allocation. 

16 ‘‘(4) USE OF RETURNS.—Any return on invest17 ment of any amounts allocated pursuant to sub18 section (b) to the affordable housing fund of an en19 terprise shall be available for use by that enterprise 

20 only for eligible activities under subsection (d). 

21 ‘‘(5) ADMINISTRATIVE COSTS.—The Director 

22 shall, by regulation— 

23 ‘‘(A) provide that, except as provided in 

24 subparagraph (B), amounts allocated to the af25 fordable housing fund of an enterprise may not 


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1 be used for administrative, outreach, or other 

2 costs of— 

3 ‘‘(i) that enterprise; or 

4 ‘‘(ii) any recipient of amounts from 

5 the affordable housing fund; and 

6 ‘‘(B) limit the amount of any such con7 tributions that may be used for administrative 

8 costs of that enterprise of— 

9 ‘‘(i) maintaining the affordable hous10 ing fund of that enterprise; and 

11 ‘‘(ii) carrying out the program under 

12 this section. 

13 ‘‘(6) PROHIBITION OF CONSIDERATION OF USE

14 FOR MEETING HOUSING GOALS.— 

15 ‘‘(A) IN GENERAL.—In determining com16 pliance with the housing goals under this sec17 tion, the Director may not consider amounts 

18 used under this section for eligible activities 

19 under subsection (d). 

20 ‘‘(B) CREDIT FOR PURCHASES OF MORT21 GAGES.—The Director shall give credit toward 

22 the achievement of the housing goals under this 

23 section to purchases of mortgages for housing 

24 that receives funding under this section, but 


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1 only to the extent that such purchases are fund2 ed other than under this section. 

3 ‘‘(7) PROHIBITION OF CERTAIN SUBGRANTS.— 

4 The Director shall, by regulation, ensure that 

5 amounts from the affordable housing fund of an en6 terprise awarded under this section to a national 

7 nonprofit housing intermediary are not used for the 

8 purpose of distributing subgrants to other nonprofit 

9 entities. 

10 ‘‘(g) CONSISTENCY OF USE WITH HOUSING

11 NEEDS.— 

12 ‘‘(1) QUARTERLY REPORTS.— 

13 ‘‘(A) IN GENERAL.—The Director shall re14 quire each enterprise to submit a report, on a 

15 quarterly basis, to the Director and the afford16 able housing board established under subsection 

17 (j) describing the activities funded under this 

18 section during such quarter with amounts from 

19 the affordable housing fund of the enterprise 

20 established under this section. 

21 ‘‘(B) PUBLIC AVAILABILITY.—The Direc22 tor shall make each report submitted under 

23 subparagraph (A) publicly available. 

24 ‘‘(C) REVIEW BY AFFORDABLE HOUSING

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1 view each report by an enterprise to determine 

2 the consistency of the activities funded under 

3 this section with the criteria for selection of 

4 such activities established under subsection 

5 (l)(2)(C). 

6 ‘‘(2) REPLENISHMENT.—If the affordable hous7 ing board determines that an activity funded by an 

8 enterprise with amounts from the affordable housing 

9 fund of that enterprise is not consistent with the cri10 teria established under subsection (l)(2)(C)— 

11 ‘‘(A) the affordable housing board shall no12 tify the Director; and 

13 ‘‘(B) the Director shall require the enter14 prise to allocate to such affordable housing 

15 fund (in addition to amounts allocated in com16 pliance with subsection (b)) an amount equal to 

17 the sum of the amounts from the affordable 

18 housing fund used and further committed for 

19 use for such activity. 

20 ‘‘(h) CAPITAL REQUIREMENTS.—The utilization or 

21 commitment of amounts from the affordable housing fund 

22 of an enterprise shall not be subject to the risk-based cap23 ital requirements established under section 1361(a). 

24 ‘‘(i) REPORTING REQUIREMENT.—Each enterprise 

25 shall include, in the report required under section 309(m) 


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1 of the Federal National Mortgage Association Charter Act 

2 or section 307(f) of the Federal Home Loan Mortgage 

3 Corporation Act, as applicable, a description of the actions 

4 taken by the enterprise to utilize or commit amounts allo5 cated under this section to the affordable housing fund 

6 of the enterprise established under this section. 

7 ‘‘(j) AFFORDABLE HOUSING BOARD.— 

8 ‘‘(1) APPOINTMENT.— 

9 ‘‘(A) IN GENERAL.—The Director shall ap10 point an affordable housing board of 7, 9, or 11 

11 persons. 

12 ‘‘(B) MEMBERSHIP.—The affordable hous13 ing board established under this section shall 

14 include— 

15 ‘‘(i) the Director, or the Director’s 

16 designee; 

17 ‘‘(ii) the Secretary of Housing and 

18 Urban Development, or the Secretary’s 

19 designee; 

20 ‘‘(iii) the Secretary of Agriculture, or 

21 the Secretary’s designee; 

22 ‘‘(iv) 2 persons from for-profit organi23 zations or businesses actively involved in 

24 providing or promoting affordable housing 


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1 for extremely low- and very low-income 

2 households; and 

3 ‘‘(v) 2 persons from nonprofit organi4 zations actively involved in providing or 

5 promoting affordable housing for extremely 

6 low- and very low-income households. 

7 ‘‘(2) TERMS.— 

8 ‘‘(A) IN GENERAL.—Except as provided in 

9 subparagraph (B), the term of each member of 

10 the affordable housing board appointed under 

11 paragraph (1) (but not including members ap12 pointed under clauses (i), (ii), and (iii)) shall be 

13 3 years. 

14 ‘‘(B) INITIAL APPOINTEES.— 

15 ‘‘(i) IN GENERAL.—The Director shall 

16 appoint the initial members of the afford17 able housing board not later than the expi18 ration of the 60-day period beginning on 

19 the date of the enactment of the Hurricane 

20 Katrina Recovery Act of 2006. 

21 ‘‘(ii) BOARD SIZE.—As designated by 

22 the Director at the time of appointment, of 

23 the members of the affordable housing 

24 board first appointed under paragraph (1) 


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1 (but not including members appointed 

2 under clauses (i), (ii), and (iii))— 

3 ‘‘(I) in the case of a board having 

4 7 members— 

5 ‘‘(aa) 1 shall be appointed 

6 for a term of 1 year; and 

7 ‘‘(bb) 1 shall be appointed 

8 for a term of 2 years; 

9 ‘‘(II) in the case of a board hav10 ing 9 members— 

11 ‘‘(aa) 2 shall be appointed 

12 for a term of 1 year; and 

13 ‘‘(bb) 2 shall be appointed 

14 for a term of 2 years; and 

15 ‘‘(III) in the case of a board hav16 ing 11 members— 

17 ‘‘(aa) 2 shall be appointed 

18 for a term of 1 year; and 

19 ‘‘(bb) 3 shall be appointed 

20 for a term of 2 years. 

21 ‘‘(3) DUTIES.—The affordable housing board 

22 shall meet not less than quarterly— 

23 ‘‘(A) to determine extremely low- and very 

24 low-income housing needs; 


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1 ‘‘(B) to advise the Director with respect 

2 to— 

3 ‘‘(i) establishment of the selection cri4 teria under subsection (l)(2)(C) that pro5 vide for appropriate use of amounts from 

6 an affordable housing fund of an enter7 prise to meet such needs; and 

8 ‘‘(ii) operation of, and changes to, the 

9 program under this section appropriate to 

10 meet such needs; and 

11 ‘‘(C) to review the reports submitted by an 

12 enterprise under subsection (g)(1)— 

13 ‘‘(i) to determine whether the activi14 ties funded using amounts from the afford15 able housing funds of the enterprises com16 ply with the regulations issued under sub17 section (l)(2)(C); and 

18 ‘‘(ii) to inform the Director of such 

19 determinations, for purposes of subsection 

20 (g)(2). 

21 ‘‘(4) EXPENSES AND PER DIEM.—Members of 

22 the board shall receive travel expenses, including per 

23 diem in lieu of subsistence, in accordance with sec24 tions 5702 and 5703 of title 5, United States Code. 


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1 ‘‘(5) ADVISORY COMMITTEE.—The board shall 

2 be considered an advisory committee for purposes of 

3 the Federal Advisory Committee Act (5 U.S.C. 

4 App.). 

5 ‘‘(6) DURATION.—The board shall have contin6 ued existence until terminated by law. 

7 ‘‘(k) DEFINITION.—For purposes of this section, the 

8 term ‘economically underserved area’ means an area that 

9 predominantly includes census tracts for which— 

10 ‘‘(1) at least 20 percent of the population is 

11 below the poverty line (as such term is defined in 

12 section 673(2) of the Omnibus Budget Reconcili13 ation Act of 1981 (42 U.S.C. 9902(2)), including 

14 any revision required by such section), applicable to 

15 a family of the size involved; or 

16 ‘‘(2) median family income does not exceed the 

17 greater of— 

18 ‘‘(A) 80 percent of the median family in19 come for the metropolitan statistical area in 

20 which such census tracts are located; or 

21 ‘‘(B) 80 percent of the median family in22 come for the State in which such census tracts 

23 are located. 

24 ‘‘(l) REGULATIONS.— 


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1 ‘‘(1) IN GENERAL.—The Director shall issue 

2 regulations to carry out this section. 

3 ‘‘(2) REQUIRED CONTENTS.—The regulations 

4 issued under this subsection shall include— 

5 ‘‘(A) authority for the Director to audit, 

6 provide for an audit, or otherwise verify the ac7 tivities of an enterprise, to ensure compliance 

8 with this section; 

9 ‘‘(B) a requirement that the Director en10 sure that the affordable housing fund of each 

11 enterprise is audited not less than annually to 

12 ensure compliance with this section; 

13 ‘‘(C) requirements for a process for appli14 cation to, and selection by, an enterprise for ac15 tivities to be funded with amounts from the af16 fordable housing fund of that enterprise, which 

17 shall provide that— 

18 ‘‘(i) selection shall based upon specific 

19 criteria, including a prioritization of fund20 ing based upon— 

21 ‘‘(I) greatest impact; 

22 ‘‘(II) geographic diversity; 

23 ‘‘(III) ability to obligate amounts 

24 and undertake activities so funded in 

25 a timely manner; 


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1 ‘‘(IV) in the case of rental hous2 ing projects under subsection (d)(1), 

3 the extent to which rents for units in 

4 the project funded are affordable, es5 pecially for extremely low-income fam6 ilies; and 

7 ‘‘(V) in the case of rental housing 

8 projects under subsection (d)(1), the 

9 extent of the duration for which such 

10 rents will remain affordable; and 

11 ‘‘(ii) an enterprise may not— 

12 ‘‘(I) require for such selection 

13 that an activity involve financing or 

14 underwriting of any kind by the enter15 prise (other than funding through the 

16 affordable housing fund of the enter17 prise); and 

18 ‘‘(II) give preference in such se19 lection to activities that involve such 

20 financing; and 

21 ‘‘(D) requirements to ensure that amounts 

22 from the affordable housing fund of an enter23 prise used for rental housing under subsection 

24 (d)(1) are used only for the benefit of extremely 

25 low- and very-low income families. 


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1 ‘‘(3) LIMITATION.—Any regulations issued by 

2 the Director pursuant to this section shall be no 

3 more restrictive on the activities of the enterprise in 

4 connection with the allocation of after-tax income 

5 under this section than the regulations issued to im6 plement the Affordable Housing Program of the 

7 Federal Home Loan Banks pursuant to section 10(j) 

8 of the Federal Home Loan Bank Act (12 U.S.C. 

9 1430(j)).’’. 

10 (b) CONFORMING AMENDMENT.—The Housing and 

11 Community Development Act of 1992 (12 U.S.C. 4562 et 

12 seq.) is amended by striking section 1338. 

13 SEC. 603. PUBLIC HOUSING CAPITAL FUND RESERVES FOR 

14 EMERGENCIES AND NATURAL DISASTERS. 

15 (a) AVAILABILITY OF FUNDS SET-ASIDE IN PRE16 VIOUS YEARS.—Notwithstanding any other provision of 

17 law, any amounts set-aside in fiscal years 2003, 2004, and 

18 2005, for use under section 9(k) of the United States 

19 Housing Act of 1937 (42 U.S.C. 1437g(k)) and remaining 

20 unobligated on the date of the enactment of this Act shall 

21 be available for use under such section (not including 

22 paragraph (4) of such section) for emergencies and other 

23 disasters occurring in fiscal year 2005, and shall remain 

24 available until expended. 

25 (b) AUTHORIZATION OF APPROPRIATIONS.— 


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1 (1) IN GENERAL.—In addition to any other 

2 amounts authorized to be appropriated under any 

3 other provision of law, there is authorized to be ap4 propriated for fiscal year 2006, for use under section 

5 9(k) of the United States Housing Act of 1937 (42 

6 U.S.C. 1437g(k)), $100,000,000, to remain available 

7 until expended. 

8 (2) LIMITATION ON USE.—Any amounts made 

9 available under paragraph (1) shall be used only for 

10 activities conducted in any area for which the Presi11 dent declared a major disaster or emergency under 

12 title IV of the Robert T. Stafford Disaster Relief 

13 and Emergency Assistance Act in connection with 

14 Hurricane Katrina. 

15 SEC. 604. COMMUNITY DEVELOPMENT BLOCK GRANT AS16 SISTANCE. 

17 (a) AUTHORIZATION OF APPROPRIATIONS.—In addi18 tion to any other amounts authorized to be appropriated 

19 under any other provision of law, there is authorized to 

20 be appropriated for fiscal year 2006, for activities author21 ized under title I of the Housing and Community Develop22 ment Act of 1974 (42 U.S.C. 5301 et seq.), $250,000,000, 

23 to remain available until expended. 

24 (b) LIMITATION ON USE.— 


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1 (1) IN GENERAL.—Any amounts made available 

2 under subsection (a) shall be used only for disaster 

3 relief, long-term recovery, and mitigation in commu4 nities in any area for which the President declared 

5 a major disaster or emergency under title IV of the 

6 Robert T. Stafford Disaster Relief and Emergency 

7 Assistance Act in connection with Hurricane 

8 Katrina, except those activities reimbursable by the 

9 Federal Emergency Management Agency or avail10 able through the Small Business Administration. 

11 (2) PROJECTS IN PROGRESS.—In the case of 

12 any project or activity in an area described in para13 graph (1) that was underway before the Presidential 

14 declaration with respect to such area, the project or 

15 activity may not be provided any amounts made 

16 available under this section unless the disaster or 

17 emergency for which such declaration was made, di18 rectly impacted the project. 

19 (c) ALLOCATION.— 

20 (1) IN GENERAL.—Subject to subsection (d), 

21 any amounts made available under subsection (a) 

22 shall be awarded by the Secretary to States (includ23 ing Indian tribes for all purposes under this section) 

24 to be administered by each State in conjunction with 

25 its Community Development Block Grants program. 


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1 (2) ENTITLEMENT COMMUNITY ELIGIBILITY.— 

2 Notwithstanding paragraph (2) of section 106(d) of 

3 the Housing and Community Development Act of 

4 1974 (42 U.S.C. 5306(d)), States may provide as5 sistance with amounts made, available under this 

6 section to entitlement communities. 

7 (d) SUPPLEMENTATION REQUIREMENT.—Each State 

8 shall provide not less than 10 percent in non-Federal pub9 lic matching funds or its equivalent value (other than ad10 ministrative costs) for any funds allocated to that State 

11 under this section. 

12 (e) WAIVER.— 

13 (1) AUTHORITY OF SECRETARY.— 

14 (A) IN GENERAL.—In administering any 

15 amounts made available under this section, the 

16 Secretary may waive, or specify alternative re17 quirements for, any provision of any statute or 

18 regulation that the Secretary administers in 

19 connection with the obligation by the Secretary 

20 or the use by the recipient of such amounts (ex21 cept for requirements related to fair housing, 

22 nondiscrimination, labor standards, and the en23 vironment), upon a finding that such waiver is 

24 required to facilitate the use of such amounts, 


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1 and would not be inconsistent with the overall 

2 purpose of the statute. 

3 (B) ACTIVITIES BENEFITTING PERSONS OF

4 LOW- AND MODERATE-INCOME.—The Secretary 

5 may waive any requirements that activities ben6 efit persons of low- and moderate-income, ex7 cept that at least 50 percent of the amounts 

8 made available under this section shall benefit 

9 primarily persons of low- and moderate-income 

10 unless the Secretary makes a finding of compel11 ling need. 

12 (2) PUBLICATION.—The Secretary shall publish 

13 in the Federal Register any waiver of any statute or 

14 regulation authorized under this section not later 

15 than 5 days before the effective date of such waiver. 

16 SEC. 605. CDBG LOAN GUARANTEE PROGRAM. 

17 (a) AUTHORIZATION OF APPROPRIATIONS.—In addi18 tion to any other amounts authorized to be appropriated 

19 under any other provision of law, there is authorized to 

20 be appropriated for fiscal year 2006, for costs (as such 

21 term is defined in section 502 of the Federal Credit Re22 form Act of 1990 (2 U.S.C. 661a) of guarantees under 

23 section 108 of the Housing and Community Development 

24 Act of 1974 (42 U.S.C. 5308), $10,000,000, to remain 

25 available until expended. 


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1 (b) LIMITATION ON USE.—Any amounts made avail2 able under subsection (a) shall be used only for guarantees 

3 for obligations of an eligible public entity (as such term 

4 is defined in section 108(o) of the Housing and Commu5 nity Development Act of 1974 (42 U.S.C. 5308(o))) for 

6 financing activities conducted in any area for which the 

7 President declared a major disaster or emergency under 

8 title IV of the Robert T. Stafford Disaster Relief and 

9 Emergency Assistance Act in connection with Hurricane 

10 Katrina. 

11 SEC. 606. CAPACITY BUILDING FOR COMMUNITY DEVELOP12 MENT AND AFFORDABLE HOUSING. 

13 (a) AUTHORIZATION OF APPROPRIATIONS.—In addi14 tion to any other amounts authorized to be appropriated 

15 under any other provision of law, there is authorized to 

16 be appropriated for fiscal year 2006, to carry out part 4 

17 of the HUD Demonstration Act of 1993 (42 U.S.C. 9814 

18 et seq.), $4,500,000, to remain available until expended. 

19 (b) LIMITATIONS ON USE.—Any amounts made 

20 available under subsection (a) shall be used only for capac21 ity-building activities for community development corpora22 tions or community housing development organizations 

23 undertaking community development or affordable hous24 ing activities in any area for which the President declared 

25 a major disaster or emergency under title IV of the Robert 


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1 T. Stafford Disaster Relief and Emergency Assistance Act 

2 in connection with Hurricane Katrina. 

3 SEC. 607. PROHIBITION OF PLACEMENT OF FAMILIES IN 

4 SUBSTANDARD DWELLING UNITS. 

5 Notwithstanding any other provision of law, no finan6 cial assistance may be provided in any form by any agency 

7 of the Federal Government to provide a temporary or per8 manent residence for an affected family that— 

9 (1) is uninhabitable; or 

10 (2) that does not comply with the housing qual11 ity standards established under section 8(o)(8)(B) of 

12 the United States Housing Act of 1937 (42 U.S.C. 

13 1437f(o)(8)(B)). 

14 SEC. 608. FAIR HOUSING ENFORCEMENT. 

15 (a) AUTHORIZATION OF APPROPRIATIONS.—In addi16 tion to any other amounts authorized to be appropriated 

17 under any other provision of law, there is authorized to 

18 be appropriated for fiscal year 2006, $10,000,000 for ac19 tivities under section 561 of the Housing and Community 

20 Development Act of 1987 (42 U.S.C. 3616a). 

21 (b) LIMITATIONS ON USE.—Any amounts made 

22 available under subsection (a) shall be used for activities 

23 under section 561 of the Housing and Community Devel24 opment Act of 1987 (42 U.S.C. 3616a) carried out in— 

25 (1) States affected by Hurricane Katrina; or 


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1 (2) States that the Secretary determines have a 

2 substantial number of persons who relocated to such 

3 State as a result of displacement caused by such 

4 Hurricane. 

5 (c) ELIGIBLE ACTIVITIES.—Amounts made available 

6 under subsection (a) may be used by the Secretary for 

7 costs to the Department of Housing and Urban Develop8 ment of hiring and training individuals who are members 

9 of affected families, or who are unemployed as a result 

10 of the elimination of a previous employment position due 

11 to Hurricane Katrina, to serve in regional offices of the 

12 Department located in States described in subsection (b) 

13 and conduct activities under section 561 of the Housing 

14 and Community Development Act of 1987 (42 U.S.C. 

15 3616a). 

16 SEC. 609. HOUSING COUNSELING FOR FAMILIES IN TEM17 PORARY SHELTERS. 

18 (a) AUTHORIZATION OF APPROPRIATIONS.—In addi19 tion to any other amounts authorized to be appropriated 

20 under any other provision of law, there is authorized to 

21 be appropriated for fiscal year 2006, $10,000,000 for as22 sistance under section 106 of the Housing and Urban De23 velopment Act of 1968 (12 U.S.C. 1701x). 

24 (b) LIMITATION ON USE.—Any amounts made avail25 able under subsection (a) shall be used for activities under 


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1 section 106 of the Housing and Urban Development Act 

2 of 1968 (12 U.S.C. 1701x) to assist affected families liv3 ing in temporary shelters or other temporary housing situ4 ations to obtain a permanent residence. 

5 SEC. 610. AVAILABILITY OF HUD INVENTORY PROPERTIES. 

6 (a) IN GENERAL.—Notwithstanding any other provi7 sion of law, the Secretary shall make covered properties 

8 available for occupancy by affected families, as provided 

9 in this section. 

10 (b) SIX-MONTH RESERVATION FOR USE ONLY BY

11 AFFECTED FAMILIES.— 

12 (1) REQUIREMENT TO OFFER ONLY TO AF13 FECTED FAMILIES.—During the 6-month period be14 ginning on the date of the enactment of this Act, the 

15 Secretary may not dispose of any covered property 

16 under any provision of law other than this Act and 

17 may not offer, or enter into any agreement for dis18 position of, a covered property under any other such 

19 provision. 

20 (2) REQUEST AND OCCUPANCY.—If, during the 

21 period referred to in paragraph (1), an affected fam22 ily makes a request in such form as the Secretary 

23 may require, to occupy a covered property, the Sec24 retary shall, in accordance with the selection criteria 

25 established under subsection (d), make the covered 


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1 property available to that affected family for occu2 pancy in accordance with the terms under subsection 

3 (e). 

4 (c) CONTINUED AVAILABILITY.— 

5 (1) AVAILABILITY FOR AFFECTED FAMILIES.— 

6 During the 18-month period that begins upon the 

7 conclusion of the period under subsection (b)(1), the 

8 Secretary shall offer each covered property for occu9 pancy by affected families, but, except as provided in 

10 paragraph (2), may— 

11 (A) dispose of covered properties under 

12 other applicable provisions of law; and 

13 (B) offer and enter into agreements for 

14 disposition of covered properties under such 

15 other provisions. 

16 (2) REQUEST AND OCCUPANCY.—If, during the 

17 period referred to in paragraph (1), an affected fam18 ily makes a request, in such form as the Secretary 

19 may require, to occupy a covered property for which 

20 the Secretary has not entered into any agreement 

21 for disposition under any other provision of law, the 

22 Secretary shall, in accordance with the selection cri23 teria established under subsection (d), make the cov24 ered property available to that affected family for 


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1 occupancy in accordance with the terms under sub2 section (e). 

3 (d) SELECTION CRITERIA.— 

4 (1) IN GENERAL.—The Secretary shall establish 

5 criteria to select an affected family to occupy a cov6 ered property for which more than 1 family has sub7 mitted such a request. 

8 (2) PREFERENCE.—The criteria established 

9 under paragraph (1) shall provide preference for af10 fected families having incomes not exceeding the me11 dian income for the area in which the primary resi12 dence of that affected family was located. 

13 (e) OCCUPANCY TERMS.— 

14 (1) IN GENERAL.—Occupancy in a covered 

15 property under this section shall be subject to the 

16 following terms: 

17 (A) FIVE YEARS RENT-FREE.—The af18 fected family may reside in the property under 

19 the terms of a lease (or renewable leases) which 

20 shall provide for rent-free occupancy, but which 

21 in no case may extend beyond the expiration of 

22 the 5-year period beginning upon initial occu23 pancy of the property by that family. 

24 (B) OPTION TO PURCHASE.—At any time 

25 during the occupancy of a covered property by 


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1 an affected family under subparagraph (A), 

2 such affected family may purchase the property 

3 from the Secretary at price equal to the lesser 

4 of— 

5 (i) the fair market value of the prop6 erty as of the time of initial occupancy by 

7 such family, as determined by the Sec8 retary; or 

9 (ii) the fair market value of the prop10 erty as of the time of such purchase, as de11 termined by the Secretary, less the cost of 

12 any repairs or improvements made by the 

13 family during occupancy of such property. 

14 (2) NOTIFICATION.—The Secretary shall peri15 odically inform each affected family occupying a cov16 ered property of the availability of the property for 

17 purchase under this subsection. 

18 (f) OUTREACH.—The Secretary shall take such ac19 tions as may be appropriate to inform affected families 

20 of the availability of covered properties under this section. 

21 SEC. 611. EQUITABLE DISTRIBUTION OF AFFORDABLE 

22 HOME PROGRAM FUNDS. 

23 The Secretary shall take such actions as may be ap24 propriate to ensure that not less than 20 percent of the 

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1 ston-Gonzalez National Affordable Housing Act (42 

2 U.S.C. 12701 et seq.) located in any area for which the 

3 President declared a major disaster or emergency under 

4 title IV of the Robert T. Stafford Disaster Relief and 

5 Emergency Assistance Act in connection with Hurricane 

6 Katrina, shall be made affordable to households with in7 comes below the poverty line, as such line is published in 

8 the Federal Register by the Department of Health and 

9 Human Services under the authority of section 673(2) of 

10 the Community Services Block Grant Act (42 U.S.C. 

11 9902(2)). 

12 TITLE VII—FINANCIAL SERVICES 

13 PROVISIONS 

14 SEC. 701. DEFINITIONS. 

15 Except as otherwise specified, in this title— 

16 (1) the terms ‘‘appropriate Federal banking 

17 agency’’ and ‘‘Federal banking agencies’’ have the 

18 same meanings as in section 3 of the Federal De19 posit Insurance Act; 

20 (2) the term ‘‘automated teller machine oper21 ator’’ has the same meaning as in section 904 of the 

22 Electronic Fund Transfer Act; 

23 (3) the term ‘‘Board’’ means the Board of Gov24 ernors of the Federal Reserve System; 


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1 (4) the term ‘‘consumer adversely affected by 

2 Hurricane Katrina’’ means an individual residing in, 

3 or whose business was located within, a qualified 

4 disaster area on August 28, 2005, who was dis5 placed or otherwise adversely affected by Hurricane 

6 Katrina of 2005; 

7 (5) the terms ‘‘creditor’’has the same meaning 

8 as in section 103 of the Truth in Lending Act; 

9 (6) the term ‘‘insured credit union’’ has the 

10 same meaning as in section 101 of the Federal 

11 Credit Union Act; 

12 (7) the term ‘‘insured depository institution’’ 

13 has the same meaning as in section 3 of the Federal 

14 Deposit Insurance Act; and 

15 (8) the term ‘‘qualified disaster area’’ means 

16 any area within Alabama, Louisiana, or Mississippi 

17 in which the President, pursuant to section 401 of 

18 the Robert T. Stafford Disaster Relief and Emer19 gency Assistance Act, has determined, in August 

20 2005 that a major disaster exists due to Hurricane 

21 Katrina. 

22 SEC. 702. HURRICANE KATRINA REGULATORY RELIEF. 

23 (a) WRITTEN GUIDANCE AND FORBEARANCE POL24 ICY.—The Federal banking agencies and the National 

25 Credit Union Administration shall— 


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1 (1) provide written guidance for insured deposi2 tory institutions and insured credit unions in imple3 menting the voluntary actions described in sub4 section (b), and any other permissible forbearance, 

5 to ensure that such insured depository institutions 

6 are not negatively impacted by acting in accordance 

7 with the intention of Congress; and 

8 (2) take such forbearance policy into consider9 ation as they examine or audit the financial status 

10 of insured depository institutions and insured credit 

11 unions. 

12 (b) VOLUNTARY POLICY TO PROVIDE RELIEF FOR

13 CONSUMERS AFFECTED BY HURRICANE KATRINA.—It is 

14 the sense of Congress that— 

15 (1) a voluntary moratorium on the payment of 

16 both principal and interest, by those who are not in 

17 a position to pay, on unsecured loans and other ex18 tensions of credit made or extended, on or before 

19 August 28, 2005, including small business and con20 sumer loans, should be established by creditors for 

21 a 1-year period beginning on August 28, 2005, with 

22 respect to any consumer adversely affected by Hurri23 cane Katrina; 

24 (2) creditors should refrain from negative re25 porting under the Fair Credit Reporting Act with 


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1 respect to any loans described in paragraph (1) to 

2 any consumer reporting agency during the 1-year 

3 period described in that paragraph; 

4 (3) during the 1-year period beginning on the 

5 date of enactment of this Act— 

6 (A) all automated teller machine operators 

7 should waive any fees or surcharges for use of 

8 such machines by any consumer adversely af9 fected by Hurricane Katrina, and who is not 

10 customers of such operators; and 

11 (B) all insured depository institutions and 

12 insured credit unions should waive any fees or 

13 surcharges on any consumer adversely affected 

14 by Hurricane Katrina who is a customer of any 

15 such insured depository institution or credit 

16 union for use by the customers of automated 

17 teller machines that are not operated by the in18 sured depository institution or credit union; 

19 (4) during the 1-year period beginning on the 

20 date of enactment of this Act, it is vital that insured 

21 insured depository institutions and insured credit 

22 unions continue to provide financial services to con23 sumers displaced or otherwise adversely affected by 

24 Hurricane Katrina, which includes the cashing of 

25 Federal Government assistance and benefit checks; 


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1 (5) during the 1-year period beginning on the 

2 date of enactment of this Act, insured depository in3 stitutions and insured credit unions should volun4 tarily waive any limitation on the availability of 

5 funds deposited by any consumer adversely affected 

6 by Hurricane Katrina, in the form of insurance 

7 claim checks that is otherwise authorized to be im8 posed under the Expedited Funds Availability Act; 

9 and 

10 (6) all creditors should waive any fees for late 

11 periodic payments on any outstanding balance in 

12 any credit card account under an open end consumer 

13 credit plan (as such terms are defined in the Truth 

14 in Lending Act) when a consumer adversely affected 

15 by Hurricane Katrina proffers evidence that the late 

16 payment was due to— 

17 (A) an interruption of mail with respect to 

18 the payment itself or the receipt by the con19 sumer of a billing statement due to Hurricane 

20 Katrina; or 

21 (B) the inability of the consumer to access 

22 funds on deposit in any insured depository in23 stitution or insured credit union due to Hurri24 cane Katrina. 


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1 SEC. 703. FLEXIBILITY IN CAPITAL AND NET WORTH 

2 STANDARDS FOR SMALL AFFECTED INSTITU3 TIONS. 

4 (a) IN GENERAL.—Notwithstanding section 38 of the 

5 Federal Deposit Insurance Act, section 216 of the Federal 

6 Credit Union Act, or any other provision of Federal law, 

7 during the 5-year period beginning on the date of enact8 ment of this Act, the appropriate Federal banking agency 

9 and the National Credit Union Administration may for10 bear from taking any action required under any such sec11 tion or provision, on a case-by-case basis, with respect to 

12 any undercapitalized insured depository institution or 

13 undercapitalized insured credit union that is not signifi14 cantly or critically undercapitalized, if such agency or Ad15 ministration determines that— 

16 (1) the insured depository institution or insured 

17 credit union maintains its principal place of business 

18 within a qualified disaster area; 

19 (2) the total assets of the insured depository in20 stitution or insured credit union as of August 28, 

21 2005, was less than $500,000,000; 

22 (3) the insured depository institution or insured 

23 credit union derives more than 50 percent of its 

24 total deposits from persons who normally reside 

25 within, or whose principal place of business is nor26 mally within, a qualified disaster area; 


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1 (4) the insured depository institution or insured 

2 credit union was adequately or well capitalized as of 

3 August 28, 2005; 

4 (5) the reduction in the capital or net worth 

5 category of the insured depository institution or in6 sured credit union is a direct result of Hurricane 

7 Katrina; and 

8 (6) forbearance from any such action— 

9 (A) would facilitate the recovery of the in10 sured depository institution or insured credit 

11 union from the disaster, in accordance with a 

12 recovery plan or a capital or net worth restora13 tion plan established by such depository institu14 tion or credit union; and 

15 (B) would be consistent with safe and 

16 sound practices. 

17 (b) CAPITAL AND NET WORTH CATEGORIES DE18 FINED.—For purposes of this section, the terms relating 

19 to capital categories for insured depository institutions 

20 have the same meaning as in section 38(b)(1) of the Fed21 eral Deposit Insurance Act and the terms relating to net 

22 worth categories for insured credit unions have the same 

23 meaning as in section 216(c)(1) of the Federal Credit 

24 Union Act. 


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1 SEC. 704. WAIVER OF CERTAIN LIMITATION ON CERTAIN 

2 BANK INVESTMENTS TO PROMOTE THE PUB3 LIC WELFARE. 

4 (a) NATIONAL BANKS.—Investments described in the 

5 first sentence of the paragraph designated ‘‘Eleventh’’ of 

6 section 5136 of the Revised Statutes of the United States 

7 (12 U.S.C. 24) that are made by a national bank in a 

8 qualified disaster area shall not be taken into account for 

9 purposes of any limitations contained in such paragraph 

10 on the aggregate amount of such investments. 

11 (b) STATE BANKS.—Investments described in the 

12 first sentence of the 23rd undesignated paragraph of sec13 tion 9 of the Federal Reserve Act (12 U.S.C. 338) that 

14 are made by a State member bank in a qualified disaster 

15 area shall not be taken into account for purposes of any 

16 limitations contained in such paragraph on the aggregate 

17 amount of such investments. 

18 SEC. 705. EMERGENCY AUTHORITY TO GUARANTEE 

19 CHECKS CASHED FOR VICTIMS OF HURRI20 CANE KATRINA. 

21 (a) FDIC.— 

22 (1) IN GENERAL.—Subject to subsection (d), 

23 the Federal Deposit Insurance Corporation (in this 

24 section referred to as the ‘‘Corporation’’) shall estab25 lish, in accordance with emergency guidance issued 

26 by the Board under subsection (d)(1), an emergency 


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1 program under which an insured depository institu2 tion may obtain, subject to subsection (d)(2), a com3 mitment from the Corporation to indemnify the in4 sured depository institution for any loss suffered by 

5 the institution through cashing a check or share 

6 draft that— 

7 (A) is presented for payment by any indi8 vidual who, as of August 28, 2005, resided in 

9 a qualified disaster area; and 

10 (B) is subsequently uncollectible. 

11 (2) LIMITATION.—Payments under paragraph 

12 (1) may not exceed $2,000 for each such check or 

13 share draft. 

14 (3) SOURCE OF FUNDS FOR PAYMENTS.—Any 

15 payments required to be made by the Corporation 

16 pursuant to a commitment under paragraph (1) to 

17 an insured depository institution shall be drawn 

18 from funds available for such purposes under sub19 section (c). 

20 (b) NCUA.— 

21 (1) IN GENERAL.—Subject to subsection (d), 

22 the National Credit Union Administration (in this 

23 section referred to as the ‘‘Administration’’) shall es24 tablish, in accordance with emergency guidance 

25 issued by the Board under subsection (d)(1), an 


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1 emergency program under which an insured credit 

2 union may obtain, subject to subsection (d)(2), a 

3 commitment from the Administration to indemnify 

4 the insured credit union for any loss suffered by the 

5 credit union through cashing a share draft or check 

6 that— 

7 (A) is presented for payment by any indi8 vidual who, as of August 28, 2005, resided in 

9 a qualified disaster area; and 

10 (B) is subsequently uncollectible. 

11 (2) LIMITATION.—Payments under paragraph 

12 (1) may not exceed $2,000 for each such check or 

13 share draft. 

14 (3) SOURCE OF FUNDS FOR PAYMENTS.—Any 

15 payments required to be made by the National Cred16 it Union Administration pursuant to a commitment 

17 under paragraph (1) to an insured credit union shall 

18 be drawn from funds available for such purposes 

19 under subsection (c). 

20 (4) LIMITED EXTENSION OF CHECK CASHING

21 SERVICES.—Notwithstanding any limitation in sec22 tion 107(12) of the Federal Credit Union Act with 

23 regard to field of membership, an insured credit 

24 union may cash any check presented for payment by 

25 any individual described in paragraph (1)(A). 


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1 (c) REIMBURSEMENT FROM FEDERAL RESERVE

2 SURPLUSES.—Section 7(b) of the Federal Reserve Act (12 

3 U.S.C. 289(b)) is amended by adding at the end the fol4 lowing new paragraph: 

5 ‘‘(4) ADDITIONAL TRANSFERS TO COVER CER6 TAIN RELIEF EFFORTS RESULTING FROM HURRI7 CANE KATRINA.— 

8 ‘‘(A) IN GENERAL.—Subject to subpara9 graph (C), from the surplus funds of the Fed10 eral reserve banks maintained pursuant to sub11 section (a)(2), the Federal reserve banks shall 

12 transfer to the Board for transfer to the Fed13 eral Deposit Insurance Corporation and the Na14 tional Credit Union Administration, such sums 

15 as are necessary to meet any payments required 

16 under subsection (a)(1) or (b)(1) of section 805 

17 of the Hurricane Katrina Recovery Act of 2006. 

18 In the event that the total amount of requests 

19 for indemnification received by the Federal De20 posit Insurance Corporation and the National 

21 Credit Union Administration exceed the max22 imum amount specified under subparagraph 

23 (C), the sums transferred to the Federal De24 posit Insurance Corporation and the National 

25 Credit Union Administration, respectively, shall 


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1 be in proportion to the amount of payments re2 quired under subsections (a)(1) and (b)(1) of 

3 section 805 of the Hurricane Katrina Recovery 

4 Act of 2006, respectively. 

5 ‘‘(B) ALLOCATION BY FEDERAL RESERVE

6 BOARD.—Of the total amount required to be 

7 paid by the Federal reserve banks under this 

8 paragraph, the Board shall determine the 

9 amount that each such bank shall pay. 

10 ‘‘(C) MAXIMUM AMOUNT.—The total 

11 amount transferred under subparagraph (A) 

12 from all Federal reserve banks shall not exceed 

13 $200,000,000. 

14 ‘‘(D) REPLENISHMENT OF SURPLUS FUND

15 PROHIBITED.—No Federal reserve bank may 

16 replenish such bank’s surplus fund by the 

17 amount of any transfer by such bank under 

18 subparagraph (A).’’. 

19 (d) EMERGENCY GUIDANCE AND LIMITATIONS.— 

20 (1) IN GENERAL.—The Board, after consulting 

21 the Federal Deposit Insurance Corporation and the 

22 National Credit Union Administration, shall, upon 

23 the date of enactment of this Act, promptly issue ap24 propriate guidance— 


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1 (A) to carry out the purposes of this sec2 tion and administer the programs established in 

3 accordance with this section; 

4 (B) to reduce the incidence of fraud and 

5 any other cause of loss to the greatest extent 

6 possible, consistent with the purpose of this 

7 Act; 

8 (C) to require insured depository institu9 tions and insured credit unions to exercise due 

10 diligence in determining the eligibility of any 

11 check presented by any individual for indem12 nification under this section, including such 

13 measures as verification of Social Security iden14 tification numbers and other identifying infor15 mation, as the Board may determine to be 

16 practicable; 

17 (D) to provide insured depository institu18 tions and insured credit unions with reasonable 

19 guidance, in light of the emergency cir20 cumstances presented by Hurricane Katrina, so 

21 as to meet the requirements for indemnification 

22 under this section, including the sharing of in23 formation on checks that have been presented 

24 for indemnification; and 


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1 (E) notwithstanding any other provision of 

2 Federal or State law, to provide for the right of 

3 the Board, on behalf of the Federal reserve 

4 banks and through the Federal Deposit Insur5 ance Corporation and the National Credit 

6 Union Administration, to recover from any in7 sured depository institution or insured credit 

8 union the amount of any indemnification paid 

9 to such depository institution or credit union 

10 with respect to any check, to the extent of the 

11 amount so paid, if the insured depository insti12 tution or insured credit union collects on the 

13 check. 

14 (2) COMPLIANCE WITH GUIDANCE CONDI15 TION.—The emergency guidance issued under para16 graph (1) shall require any insured depository insti17 tution or insured credit union seeking a commitment 

18 under subsection (a)(1) or (b)(1) to demonstrate 

19 that the institution or credit union is in compliance 

20 with the guidance in such manner as the Board de21 termines to be appropriate and practicable. 

22 (3) PER INDIVIDUAL PER INSTITUTION LIMITA23 TION.—No specific insured depository institution or 

24 insured credit union may be indemnified for losses 


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1 in excess of $2,000 with respect to checks and share 

2 drafts presented by any 1 individual. 

3 (e) RULE OF CONSTRUCTION.—No provision of this 

4 section shall be construed as affecting any right or obliga5 tion of an insured depository institution or insured credit 

6 union to take any action against any person in connection 

7 with a fraudulent check, a fraudulent negotiation of a 

8 check, or any other wrongful act. 

9 (f) EFFECTIVE DATE.— 

10 (1) IN GENERAL.—Subject to paragraph (2), 

11 the provisions of this section shall apply to checks or 

12 share drafts presented to an insured depository in13 stitution or an insured credit union during the pe14 riod beginning on August 28, 2005, and ending Au15 gust 28, 2006. 

16 (2) LIMITED EXTENSION.—The period de17 scribed in paragraph (2) may be extended once for 

18 an additional 180 days, if— 

19 (A) the Board, after consulting with the 

20 Federal Deposit Insurance Corporation and the 

21 National Credit Union Administration, deter22 mines that the continuing impact of Hurricane 

23 Katrina on financial intermediation between 

24 consumers and depository institutions or credit 

25 unions, on payment networks, and on other 


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1 forms of communication require an extension of 

2 the programs established under this section in 

3 order to continue to meet the immediate needs 

4 of victims of the disaster; and 

5 (B) notice of such determination is pub6 lished in the Federal Register at least 5 days 

7 before the end of the period described in para8 graph (1). 

9 SEC. 706. TECHNICAL ASSISTANCE FOR MINORITY INSTITU10 TIONS. 

11 (a) MINORITY DEPOSITORY INSTITUTIONS.— 

12 (1) IN GENERAL.—The Federal Deposit Insur13 ance Corporation and the Director of the Office of 

14 Thrift Supervision shall provide such technical as15 sistance to minority financial institutions affected by 

16 Hurricane Katrina as may be appropriate to pre17 serve the safety and soundness of such financial in18 stitutions, prevent the insolvency of such institu19 tions, and enable the institutions to recovery from 

20 the adverse financial impact of Hurricane Katrina 

21 on the customers of the institutions, the assets of 

22 the institutions, and any real or personal property 

23 securing such assets. 

24 (2) MINORITY INSTITUTION DEFINED.—For 

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1 nancial institution’’ has the same meaning as in sec2 tion 308(b) of the Financial Institutions Reform, 

3 Recovery, and Enforcement Act of 1989. 

4 (b) MINORITY CREDIT UNIONS.— 

5 (1) IN GENERAL.—The National Credit Union 

6 Administration shall provide such technical assist7 ance to minority credit unions affected by Hurricane 

8 Katrina as may be appropriate to preserve the safety 

9 and soundness of such credit unions, prevent the in10 solvency of such credit unions, and enable the credit 

11 unions to recovery from the adverse financial impact 

12 of Hurricane Katrina on the customers of the credit 

13 unions, the assets of the credit unions, and any real 

14 and personal property securing such assets. 

15 (2) DEFINITIONS.—For purposes of this sub16 section, the following definitions shall apply: 

17 (A) MINORITY CREDIT UNION.—The term 

18 ‘‘minority credit union’’ means an insured cred19 it union— 

20 (i) of which a majority of the share 

21 draft account holders are predominately 

22 minority; or 

23 (ii) in the case of community develop24 ment credit union, the community served 


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1 by the credit union is predominantly mi2 nority. 

3 (B) MINORITY.—The term ‘‘minority’’ has 

4 the same meaning as in section 308(b)(2) of the 

5 Financial Institutions Reform, Recovery, and 

6 Enforcement Act of 1989. 

7 SEC. 707. IMPLEMENTING KATRINA DISASTER RELIEF 

8 THROUGH THE CDFI FUND. 

9 (a) AUTHORIZATION OF APPROPRIATIONS.—In addi10 tion to amounts appropriated to the Community Develop11 ment Financial Institutions Fund (hereafter in this sec12 tion referred to as the ‘‘Fund’’) for fiscal year 2006 to 

13 carry out the purposes of the Community Development 

14 Banking and Financial Institutions Act of 1994, there are 

15 authorized to be appropriated to the Fund (which may be 

16 derived by transfer from funds appropriated for ‘‘Disaster 

17 Relief’’ in Public Law 109–62), such sums as may be nec18 essary for fiscal year 2006 to carry out such Act for the 

19 purposes of, and in the manner provided in, this section. 

20 (b) ASSISTANCE PROVIDED BY THE FUND FOR HUR21 RICANE KATRINA ASSISTANCE.— 

22 (1) IN GENERAL.—Amounts appropriated pur23 suant to the authorization under subsection (a) shall 

24 be available to the Fund under the Community De25 velopment Banking and Financial Institutions Act of 


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1 1994 for the purposes of such Act, including tech2 nical and training assistance, awards under the 

3 Bank Enterprise Act of 1991, equity investments, 

4 deposits, and other forms of financial assistance to 

5 community development financial institutions, in ac6 cordance with paragraph (2). 

7 (2) ADJUSTMENTS TO CRITERIA.—In providing 

8 assistance under paragraph (1), the Community De9 velopment Banking and Financial Institutions Act of 

10 1994 shall be applied with the following adjust11 ments: 

12 (A) DESIGNATION OF ASSISTED AREAS.— 

13 Notwithstanding section 107(b) of the Commu14 nity Development Banking and Financial Insti15 tutions Act of 1994, the Fund shall limit the 

16 selection of community development financial 

17 institution applicants for assistance pursuant to 

18 this section to any financial institution that— 

19 (i) is located in a Hurricane Katrina 

20 affected area; or 

21 (ii) demonstrates to the satisfaction of 

22 the Fund that the financial institution has 

23 the ability to provide capital, credit or fi24 nancial services within the Hurricane 

25 Katrina affected area. 


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1 (B) WAIVER OF MATCHING REQUIRE2 MENTS.—In the case of an applicant with se3 vere constraints on available sources of match4 ing funds, the Fund may reduce or waive the 

5 matching requirements of section 108(e)(1) of 

6 the Community Development Banking and Fi7 nancial Institutions Act of 1994 for such appli8 cant for purposes of this subsection. 

9 (C) WAIVER OF LIMITATIONS ON CERTAIN

10 FORMS OF ASSISTANCE.—The limitation con11 tained in section 113(c) of the Community De12 velopment Banking and Financial Institutions 

13 Act of 1994 shall not apply to assistance pro14 vided under this subsection in accordance with 

15 section 113 of such Act. 

16 (D) APPLICATION OF BANK ENTERPRISE

17 ACT OF 1991.—In making assistance under this 

18 subsection available in the manner provided in 

19 section 114 of the Community Development 

20 Banking and Financial Institutions Act of 

21 1994, the Bank Enterprise Act of 1991 shall be 

22 applied under section 114(a)(2)— 

23 (i) by substituting ‘‘Hurricane 

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1 graph (3), for ‘‘qualified distressed com2 munity’’; and 

3 (ii) with respect to lifeline accounts, 

4 by taking into account only lifeline ac5 counts offered in an Hurricane Katrina af6 fected area. 

7 (3) HURRICANE KATRINA AFFECTED AREA DE8 FINED.—For purposes of this section, the term 

9 ‘‘Hurricane Katrina affected area’’ means any coun10 ty (as defined in section 2 of title 1, United States 

11 Code) that— 

12 (A) is within an area in which the Presi13 dent, pursuant to section 401 of the Robert T. 

14 Stafford Disaster Relief and Emergency Assist15 ance Act, has determined, in August 2005 that 

16 a major disaster exists due to Hurricane 

17 Katrina; and 

18 (B) has been designated by the Federal 

19 Emergency Management Agency as an area in 

20 which public assistance or individual assistance 

21 is available as a result of Hurricane Katrina. 


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1 TITLE VIII—EXPANDED OPPOR2 TUNITY AND SMALL BUSI3 NESS PROVISIONS 

4 SEC. 801. DEFINITIONS. 

5 In this title— 

6 (1) the term ‘‘Administrator’’ means the Ad7 ministrator of the Small Business Administration; 

8 (2) the term ‘‘area affected by Hurricane 

9 Katrina’’ means a county (as that term is defined in 

10 section 2 of title I, United States Code) in Alabama, 

11 Louisiana, Mississippi, or Texas in which the Presi12 dent declared a major disaster under section 401 of 

13 the Robert T. Stafford Disaster Relief and Emer14 gency Assistance Act (42 U.S.C. 5170) as a result 

15 of Hurricane Katrina; 

16 (3) the term ‘‘hurricane reconstruction con17 tractor’’ means a person or entity receiving Federal 

18 funds under the Robert T. Stafford Disaster Relief 

19 and Emergency Assistance Act (42 U.S.C. 5121 et 

20 seq.), or party to a contract funded under such Act, 

21 for repair or reconstruction in the area affected by 

22 Hurricane Katrina; 

23 (4) the term ‘‘local business’’ means any busi24 ness incorporated in or owned by a person residing 

25 in the area affected by Hurricane Katrina; 


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1 (5) the term ‘‘local resident’’ means a person 

2 who had a permanent residence in the area affected 

3 by Hurricane Katrina before August 28, 2005; and 

4 (6) the terms ‘‘small business concern’’ and 

5 ‘‘small business concern owned and controlled by so6 cially and economically disadvantaged individuals’’ 

7 have the same meaning as in section 3 and 8 of the 

8 Small Business Act, respectively (15 U.S.C. 632, 

9 637). 

10 SEC. 802. INCREASED PROCUREMENT GOAL FOR CERTAIN 

11 FEDERAL CONTRACTS FOR RECOVERY FROM 

12 HURRICANE KATRINA. 

13 For purposes of section 15(g)(1) of the Small Busi14 ness Act (15 U.S.C. 644 (g)(1)), the Government-wide 

15 goal for procurement contracts awarded to small business 

16 concerns owned and controlled by socially and economi17 cally disadvantaged individuals for recovery and recon18 struction activities related to Hurricane Katrina shall be 

19 15 percent. 


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1 SEC. 803. LOCAL PARTICIPATION GOAL FOR PARTICIPA2 TION IN FEDERAL PROCUREMENT CON3 TRACTS IN AREAS AFFECTED BY HURRICANE 

4 KATRINA. 

5 (a) IN GENERAL.—There is established a Govern6 ment-wide goal for procurement contracts awarded to local 

7 businesses in the area affected by Hurricane Katrina. 

8 (b) AMOUNT.—For each of fiscal years 2006 and 

9 2007, the goal shall be 30 percent of the total value of 

10 all prime contract and subcontract awards for such fiscal 

11 year. 

12 (c) ADMINISTRATION.—The goal established under 

13 this section shall be administered by the Administrator in 

14 the same manner as the goals established under section 

15 15(g)(1) of the Small Business Act (15 U.S.C. 644(g)(1)). 

16 SEC. 804. HURRICANE RECOVERY-RELATED CONTRACTS TO 

17 REQUIRE 40 PERCENT OF CONTRACT WORK18 ERS BE LOCAL RESIDENTS. 

19 Any contract awarded after the date of the enactment 

20 of this Act by the Federal Government for recovery or re21 construction activities to be carried out in the area af22 fected by Hurricane Katrina shall include a requirement 

23 that at least 40 percent of the workers performing the 

24 work under the contract be local residents. 


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1 SEC. 805. APPRENTICESHIP AND OTHER REQUIREMENTS 

2 FOR POST-HURRICANE RECONSTRUCTION. 

3 (a) APPRENTICESHIP PROGRAMS.—A hurricane re4 construction contractor shall utilize an apprenticeship pro5 gram certified under subsection (b). 

6 (b) CERTIFICATION.—An apprenticeship program 

7 may be certified by the Administrator under this section 

8 if such program— 

9 (1) is— 

10 (A) certified by a State employment serv11 ices authority or other local authority that over12 sees apprenticeship and job training programs; 

13 or 

14 (B) registered with the Bureau of Appren15 ticeship and Training of the Department of 

16 Labor under part 29 of chapter 1 of title 29, 

17 Code of Federal Regulations; 

18 (2) includes a preapprenticeship program that 

19 helps prepare individuals for the apprenticeship pro20 gram and for the basics tests necessary to become 

21 an apprentice. 

22 SEC. 806. TECHNICAL ASSISTANCE PROGRAM FOR SMALL 

23 BUSINESS OWNERS’ RECOVERY. 

24 (a) ESTABLISHMENT.—Not later than 30 days after 

25 the date of enactment of this Act, the Department of Com26 merce shall establish a program for qualified private or 


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1 nonprofit sector entities to provide information and tech2 nical assistance to small business concerns to meet man3 agement related needs, including strategies for locating 

4 and hiring local residents as well as implementing new 

5 business processes and shifting production to services or 

6 goods in demand arising from the consequences of Hurri7 canes Katrina. 

8 (b) AUTHORIZATION OF APPROPRIATIONS.—There 

9 are authorized to be appropriated such sums as necessary 

10 to carry out this section. 

11 TITLE IX—RELIEF FOR INSTITU12 TIONS OF HIGHER EDU13 CATION 

14 SEC. 901. FINDINGS; SENSE OF CONGRESS. 

15 (a) FINDINGS.—Congress finds the following: 

16 (1) Historically Black Colleges and Universities 

17 (HBCUs) play an essential role in the education of 

18 African-Americans, and in the fabric of the Gulf 

19 Coast region. 

20 (2) Historically, 65 percent of all Black physi21 cians, 50 percent of all Black engineers, and 35 per22 cent of all Black lawyers have graduated from 

23 HBCUs. 

24 (3) Three Historically Black Colleges and Uni25 versities in New Orleans, Dillard University, Xavier 


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1 University, and Southern University at New Orle2 ans, sustained over $600,000,000 in hurricane dam3 age, lost $60,000,000 in revenues, and were unable 

4 to conduct classes during the fall semester of 2005. 

5 (4) Months after the devastation caused by the 

6 hurricanes, these 3 HBCUs have reopened, although 

7 with reduced student enrollments, reduced faculty 

8 numbers, and often in relocated settings. 

9 (5) Revitalizing these institutions of higher edu10 cation in the Gulf Coast region will be a vital ele11 ment in attracting middle and upper income families 

12 back to the Gulf Coast region, and in ensuring sus13 tained economic recovery for the region’s lower in14 come families. 

15 (6) Revitalizing the Gulf Coast economy will de16 pend on providing a highly skilled workforce. 

17 (7) The return of qualified academic profes18 sionals and administrators is a vital element in the 

19 revitalization of affected institutions of higher edu20 cation in the Gulf Coast region. 

21 (8) Many of the scientific, health, technology, 

22 and cultural industries of the Gulf Coast region are 

23 dependent on local institutions of higher education. 

24 (b) SENSE OF CONGRESS.—It is the sense of Con25 gress that the assistance provided under this title to reviVerDate Aug 31 2005 02:32 Feb 18, 2006 Jkt 049200 PO 00000 Frm 00097 Fmt 6652 Sfmt 6201 E:\BILLS\S2319.IS S2319

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1 talize Historically Black Colleges and Universities in the 

2 Gulf Coast region is a first step toward revitalizing and 

3 restoring the economic, social, and cultural prosperity of 

4 the entire Gulf Coast region. 

5 SEC. 902. DEFINITIONS. 

6 In this title: 

7 (1) AFFECTED INSTITUTION.—The term ‘‘af8 fected institution’’ means a campus of the 3 Histori9 cally Black Colleges and Universities in New Orle10 ans, Louisiana, of Xavier University, Dillard Univer11 sity, and Southern University at New Orleans— 

12 (A) located in an area affected by a Hurri13 cane Katrina disaster; and 

14 (B) that was forced to close, relocate, or 

15 significantly curtail its activities as a result of 

16 damage directly sustained by a Hurricane 

17 Katrina disaster. 

18 (2) AFFECTED STATE.—The term ‘‘affected 

19 State’’ means the State of Louisiana. 

20 (3) AREA AFFECTED BY A HURRICANE KATRINA

21 DISASTER.—The term ‘‘area affected by a Hurricane 

22 Katrina disaster’’ means a county or parish, in an 

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1 sistance for individuals and households as a result of 

2 Hurricane Katrina. 

3 (4) FACULTY.—The term ‘‘faculty’’ means aca4 demic professionals, administrators, and staff em5 ployed by an affected institution as of August 28, 

6 2005. 

7 (5) HURRICANE KATRINA DISASTER.—The term 

8 ‘‘Hurricane Katrina disaster’’ means a major dis9 aster that the President declared to exist, in accord10 ance with section 401 of the Robert T. Stafford Dis11 aster Relief and Emergency Assistance Act (42 

12 U.S.C. 5170), and that was caused by Hurricane 

13 Katrina. 

14 (6) SECRETARY.—The term ‘‘Secretary’’ means 

15 the Secretary of Education. 

16 SEC. 903. INSTITUTIONAL GRANTS FOR FACULTY RETEN17 TION. 

18 (a) PURPOSE.—The purpose of this section is to sup19 port affected institutions in their efforts to revitalize their 

20 communities following Hurricane Katrina. 

21 (b) PROGRAM AUTHORIZED.— 

22 (1) AUTHORITY.—From funds made available 

23 under subsection (f), the Secretary shall award 

24 grants to each affected institution to assist the af25 fected institutions in recruiting and retaining stuVerDate Aug 31 2005 02:32 Feb 18, 2006 Jkt 049200 PO 00000 Frm 00099 Fmt 6652 Sfmt 6201 E:\BILLS\S2319.IS S2319

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1 dents and retaining faculty. The Secretary shall 

2 award grants under this section as soon as possible, 

3 but no later than 6 months after the date of the en4 actment of this Act. 

5 (2) DURATION; LIMITATION.—Each grant 

6 awarded to an affected institution under this section 

7 shall be awarded for a period of 5 years, and may 

8 not be renewed. An affected institution may not re9 ceive more than 1 grant under this section. 

10 (3) USE OF FUNDS.— 

11 (A) INCENTIVES FOR FACULTY.—Funds 

12 made available by a grant under this section 

13 shall be used by an affected institution to pro14 vide incentives for faculty employed by an af15 fected institution to remain in the Gulf Coast 

16 region at such affected institution. Such incen17 tives may include— 

18 (i) employing returning faculty to as19 sist in rebuilding facilities of the affected 

20 institution; 

21 (ii) developing and providing tem22 porary housing for returning faculty and 

23 their dependents who have been displaced 

24 from their homes; 


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1 (iii) continuing salaries and health 

2 benefits for returning faculty for up to 1 

3 year from the date the affected institution 

4 receives the grant; 

5 (iv) providing tuition assistance for 

6 returning faculty and their dependents; 

7 (v) creating innovative work and re8 search incentives for returning faculty; and 

9 (vi) any other incentives determined 

10 necessary by the affected institution and 

11 approved by the Secretary. 

12 (B) INSTITUTIONAL PROMOTION.—Not 

13 more than 5 percent of the funds made avail14 able by a grant under this section shall be used 

15 by an affected institution to promote the insti16 tution at job and college fairs, and through the 

17 media. 

18 (4) PREVAILING WAGES.—Wages paid, for pur19 poses of rebuilding an affected institution’s facilities 

20 under paragraph (3)(A)(i), to students or faculty in 

21 whole or in part with grant funds received under 

22 this section for employment as laborers, mechanics, 

23 or service employees shall be paid at rates not less 

24 than those prevailing in the locality as determined 

25 by the Secretary of Labor in accordance with secVerDate Aug 31 2005 02:32 Feb 18, 2006 Jkt 049200 PO 00000 Frm 00101 Fmt 6652 Sfmt 6201 E:\BILLS\S2319.IS S2319

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1 tions 3141, 3142, and 3145 of title 40, United 

2 States Code, or section 351 of title 41, United 

3 States Code, as the case may be. Notwithstanding 

4 any other provision of law, the requirements of this 

5 paragraph shall not be waived or suspended. 

6 (c) APPLICATIONS.—An affected institution of higher 

7 education desiring a grant under this section shall submit 

8 an application to the Secretary within 90 days of the date 

9 of enactment of this Act, in such manner and accompanied 

10 by such information as the Secretary may require. Each 

11 application shall— 

12 (1) demonstrate that the institution is an af13 fected institution as defined in section 1102(1); 

14 (2) specify the amount of grant funds re15 quested; 

16 (3) demonstrate the need of the affected insti17 tution for such grant by including in the applica18 tion— 

19 (A) evidence that, as a result of a Hurri20 cane Katrina disaster, the affected institution 

21 suffered a direct and significant economic im22 pact and a decline in student enrollment, hin23 dering the institution’s ability to continue full 

24 operation; 


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1 (B) evidence that, as a result of a Hurri2 cane Katrina disaster, the affected institution 

3 lost resources necessary to retain faculty, hin4 dering the affected institution’s ability to con5 tinue full operation; 

6 (C) an assessment of damage to the infra7 structure of the affected institution as a result 

8 of a Hurricane Katrina disaster; 

9 (D) information regarding additional needs 

10 created by a Hurricane Katrina disaster; and 

11 (E) other relevant data; and 

12 (4) contain a description of the affected institu13 tion’s plan to carry out the purposes of this section. 

14 (d) PRIORITY.—The Secretary shall give priority in 

15 awarding grants under this section to affected institutions 

16 most in need, as determined by the Secretary. 

17 (e) REPORTING REQUIREMENTS; REVIEWS.— 

18 (1) REPORTS.—Each affected institution receiv19 ing a grant under this section shall report to the 

20 Secretary no later than September 30 of each year 

21 of the 5-year period for which the grant is awarded. 

22 (2) CONTENTS.—The report shall include— 

23 (A) data on the populations served under 

24 this section; 


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1 (B) a description of the use of the grant 

2 funds received under this section, including a 

3 description of programs developed with such 

4 funds; 

5 (C) a financial statement accounting for 

6 the use of the grant funds; and 

7 (D) data on the impact of the grant on en8 rollment and retention at the affected institu9 tion, including data on the numbers and per10 centages of new and returning students, and 

11 the number and percentage of faculty that have 

12 been retained. 

13 (3) REVIEWS.—The Secretary shall conduct 

14 periodic reviews to ensure that grant funds are prop15 erly managed, and that the programs using such 

16 funds achieve their intended outcomes. 

17 (f) TRANSFER OF FUNDS.—Notwithstanding any 

18 other provision of law, of the amounts made available to 

19 the Department of Homeland Security under the heading 

20 ‘‘Disaster Relief’’ under the heading ‘‘Emergency Pre21 paredness and Response’’ of Public Law 109–62 (119 

22 Stat. 1991), $18,000,000 shall be available to the Sec23 retary of Education to carry out this section, which funds 

24 shall remain available through fiscal year 2010. 


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1 SEC. 904. LOAN FORGIVENESS. 

2 (a) STATEMENT OF PURPOSE.—The purpose of this 

3 section is to encourage students to continue attending, and 

4 to earn degrees from, affected institutions. 

5 (b) PROGRAM AUTHORIZED.—From funds made 

6 available under subsection (f), the Secretary shall carry 

7 out a program, through the holder of the loan, of assum8 ing the obligation to repay a qualified loan amount for 

9 a loan made under part B of title IV of the Higher Edu10 cation Act of 1965 (20 U.S.C. 1071 et seq.), and of can11 celing the obligation to repay a qualified loan amount for 

12 a loan made under part D or E of such title IV (20 U.S.C. 

13 1087a et seq.; 1087aa et seq.), in accordance with sub14 section (c), for any borrower, who— 

15 (1) returns to or enrolls in an affected institu16 tion in academic year 2005–2006, 2006–2007, or 

17 2007–2008; 

18 (2) obtains an associate’s degree or a bachelor’s 

19 degree from such institution; and 

20 (3) is not in default on a loan for which the 

21 borrower seeks forgiveness. 

22 (c) QUALIFIED LOAN AMOUNT.— 

23 (1) ASSOCIATE’S DEGREE.—Upon completion of 

24 an associate’s degree from an affected institution, 

25 the Secretary shall repay or cancel— 


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1 (A) in the case of a full-time student, 

2 $2,500 for each academic year of enrollment at 

3 such affected institution; or 

4 (B) in the case of a student enrolled less 

5 than full-time, $2,500 for the equivalent of 1 

6 academic year of enrollment as a full-time stu7 dent at such affected institution, as determined 

8 by the Secretary, 

9 not to exceed $5,000. 

10 (2) BACHELOR’S DEGREE.—Upon completion of 

11 a bachelor’s degree from an affected institution, the 

12 Secretary shall repay or cancel— 

13 (A) in the case of a full-time student, 

14 $2,500 for each academic year of enrollment at 

15 such affected institution; or 

16 (B) in the case of a student enrolled less 

17 than full-time, $2,500 for the equivalent of one 

18 academic year of enrollment as a full-time stu19 dent at such affected institution, as determined 

20 by the Secretary, 

21 not to exceed $10,000. 

22 (3) LIMITATION.—The Secretary shall repay or 

23 cancel under this section not more than the total 

24 outstanding Federal loan obligation of the student 


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1 for loans described in subsection (b), or $10,000, 

2 whichever is less. 

3 (4) PREVENTION OF ABUSE.—The Secretary is 

4 authorized to issue such regulations as may be nec5 essary to prevent borrowers from receiving repay6 ment or cancellation under this section for an exces7 sive period of enrollment in comparison to the enroll8 ment period which the Secretary determines is ap9 propriate to obtain an associate’s or a bachelor’s de10 gree. 

11 (5) ACADEMIC YEAR OF ENROLLMENT.—For 

12 the purpose of calculating loan repayment or can13 cellation under this section, the term ‘‘academic year 

14 of enrollment’’ means the academic year in which an 

15 affected institution reopens after Hurricane Katrina, 

16 or any subsequent academic year. 

17 (d) PRIORITY.—The Secretary shall give priority for 

18 repayment or cancellation under this section to students 

19 most in need, as determined by the Secretary. 

20 (e) RULE OF CONSTRUCTION.—Nothing in this sec21 tion shall be construed to authorize any refunding of any 

22 repayment or cancellation of a loan. 

23 (f) TRANSFER OF FUNDS.—Notwithstanding any 

24 other provision of law, of the amounts made available to 

25 the Department of Homeland Security under the heading 


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1 ‘‘Disaster Relief’’ under the heading ‘‘Emergency Pre2 paredness and Response’’ of Public Law 109–62 (119 

3 Stat. 1991), $9,000,000 shall be available to the Secretary 

4 of Education to carry out this section. 

5 SEC. 905. REGULATIONS. 

6 The Secretary is authorized to issue such regulations 

7 as may be necessary to carry out the provisions of this 

8 title. 

9 SEC. 906. EMERGENCY DESIGNATIONS. 

10 Sections 903 and 904 are designated as emergency 

11 requirements pursuant to section 402 of H. Con. Res. 95 

12 (109th Congress). 

13 TITLE X—INCREASED ACCESS 

14 TO REFUNDABLE PORTION 

15 OF CHILD TAX CREDIT 

16 SEC. 1001. REDUCTION IN INCOME THRESHOLD USED TO 

17 CALCULATE REFUNDABLE PORTION OF 

18 CHILD TAX CREDIT. 

19 (a) IN GENERAL.—Section 24(d) of the Internal Rev20 enue Code of 1986 (relating to portion of credit refund21 able) is amended— 

22 (1) by striking ‘‘as exceeds’’ and all that follows 

23 through ‘‘, or’’ in paragraph (1)(B)(i) and inserting 

24 ‘‘as exceeds $8,000, or’’, 


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1 (2) by striking ‘‘2001, the $10,000 amount’’ in 

2 paragraph (3) and inserting ‘‘2006, the $8,000 

3 amount,’’, and 

4 (3) by striking ‘‘2000’’ in paragraph (3)(B) and 

5 inserting ‘‘2005’’. 

6 (b) EFFECTIVE DATE.—The amendments made by 

7 this section shall apply to taxable years beginning after 

8 December 31, 2005. 

9 (c) APPLICATION OF SUNSET TO THIS SECTION.— 

10 Each amendment made by this section shall be subject to 

11 title IX of the Economic Growth and Tax Relief Reconcili12 ation Act of 2001 to the same extent and in the same 

13 manner as the provision of such Act to which such amend14 ment relates. 

15 SEC. 1002. INCREASE IN PERCENTAGE EARNED INCOME 

16 USED TO CALCULATE REFUNDABLE PORTION 

17 OF CHILD TAX CREDIT. 

18 (a) IN GENERAL.—Section 24(d)(1)(B)(i) of the In19 ternal Revenue Code of 1986 (relating to portion of credit 

20 refundable) is amended by striking ‘‘15 percent’’ and in21 serting ‘‘20 percent’’. 

22 (b) EFFECTIVE DATE.—The amendments made by 

23 this section shall apply to taxable years beginning after 

24 December 31, 2005. 


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1 (c) APPLICATION OF SUNSET TO THIS SECTION.— 

2 Each amendment made by this section shall be subject to 

3 title IX of the Economic Growth and Tax Relief Reconcili4 ation Act of 2001 to the same extent and in the same 

5 manner as the provision of such Act to which such amend6 ment relates. 

7 SEC. 1003. WORKING FAMILY TAX RELIEF. 

8 For purposes of section 24(d) of the Internal Revenue 

9 Code of 1986 (relating to portion of child tax credit made 

10 refundable), in the case of any taxable year beginning dur11 ing 2006 or 2007, with respect to any taxpayer who had 

12 a primary residence in Alabama, Louisiana, or Mississippi 

13 at any time during 2005 and maintains a primary resi14 dence in Alabama, Louisiana, or Mississippi for at least 

15 6 months during such taxable year, clause (i) of section 

16 24(d)(1)(B) of such Code shall be applied by substituting 

17 10 percent of the taxpayer’s earned income for such tax18 able year for the amount which would otherwise be deter19 mined under such clause for such taxable year. 

20 TITLE XI—SENSE OF SENATE 

21 SEC. 1101. SENSE OF THE SENATE REGARDING SOURCE OF 

22 CERTAIN FUNDING. 

23 It is the sense of the Senate that, except as otherwise 

24 provided in this Act, the funds necessary to carry out the 

25 purposes of this Act should be made available from otherVerDate Aug 31 2005 02:32 Feb 18, 2006 Jkt 049200 PO 00000 Frm 00110 Fmt 6652 Sfmt 6201 E:\BILLS\S2319.IS S2319

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1 wise unobligated amounts appropriated for hurricane re2 lief. 

Æ 


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