Union Calendar No. 23
106TH CONGRESS
1ST SESSION
H. R. 707
[Report No. 106–40]
A BILL
To amend the Robert T. Stafford Disaster Relief
and Emergency Assistance Act to authorize a
program for predisaster mitigation, to streamline
the administration of disaster relief, to control
the Federal costs of disaster assistance, and for
other purposes.
MARCH 3, 1999
Reported with amendments, committed to the Committee
of the Whole House on the State of the Union, and or-
dered to be printed
IB
Union Calendar No. 23
106TH CONGRESS
1ST SESSION
H. R. 707
[Report No. 106–40]
To amend the Robert T. Stafford Disaster Relief and Emergency Assistance
Act to authorize a program for predisaster mitigation, to streamline
the administration of disaster relief, to control the Federal costs of
disaster assistance, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
FEBRUARY 11, 1999
Mrs. FOWLER (for herself, Mr. TRAFICANT, Mr. BOEHLERT, and Mr. BORSKI)
introduced the following bill; which was referred to the Committee on
Transportation and Infrastructure
MARCH 3, 1999
Additional sponsors: Mr. TERRY, Mr. DOOLITTLE, Mr. NADLER, Ms.
BERKLEY, and Mr. SWEENEY
MARCH 3, 1999
Reported with amendments, committed to the Committee of the Whole House
on the State of Union, and ordered to be printed
[Strike out all after the enacting clause and insert the part printed in italic]
[For text of introduced bill, see copy of bill as introduced on February 11, 1999]
A BILL
To amend the Robert T. Stafford Disaster Relief and Emer-
gency Assistance Act to authorize a program for
predisaster mitigation, to streamline the administration
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of disaster relief, to control the Federal costs of disaster
assistance, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Disaster Mitigation and
Cost Reduction Act of 1999’’.
SEC. 2. AMENDMENTS TO ROBERT T. STAFFORD DISASTER
RELIEF AND EMERGENCY ASSISTANCE ACT.
Except as otherwise specifically provided, whenever in
this Act an amendment or repeal is expressed in terms of
an amendment to, or repeal of, a section or other provision
of law, the reference shall be considered to be made to a
section or other provision of the Robert T. Stafford Disaster
Relief and Emergency Assistance Act (42 U.S.C. 5121 et
seq.).
TITLE I—PREDISASTER HAZARD
MITIGATION
SEC. 101. FINDINGS AND PURPOSE.
(a) FINDINGS.—Congress finds that—
(1) greater emphasis needs to be placed on iden-
tifying and assessing the risks to State and local com-
munities and implementing adequate measures to re-
duce losses from natural disasters and to ensure that
critical facilities and public infrastructure will con-
tinue to function after a disaster;
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(2) expenditures for post-disaster assistance are
increasing without commensurate reduction in the
likelihood of future losses from such natural disasters;
(3) a high priority in the expenditure of Federal
funds under the Robert T. Stafford Disaster Relief
and Emergency Assistance Act should be to imple-
ment predisaster activities at the local level; and
(4) with a unified effort of economic incentives,
awareness and education, technical assistance, and
demonstrated Federal support, States and local com-
munities will be able to increase their capabilities to
form effective community-based partnerships for miti-
gation purposes, implement effective natural disaster
mitigation measures that reduce the risk of future
damage, hardship, and suffering, ensure continued
functioning of critical facilities and public infrastruc-
ture, leverage additional non-Federal resources into
meeting disaster resistance goals, and make commit-
ments to long-term mitigation efforts in new and ex-
isting structures.
(b) PURPOSE.—It is the purpose of this title to estab-
lish a predisaster hazard mitigation program that—
(1) reduces the loss of life and property, human
suffering, economic disruption, and disaster assist-
ance costs resulting from natural hazards; and
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(2) provides a source of predisaster hazard miti-
gation funding that will assist States and local gov-
ernments in implementing effective mitigation meas-
ures that are designed to ensure the continued func-
tioning of critical facilities and public infrastructure
after a natural disaster.
SEC. 102. STATE MITIGATION PROGRAM.
Section 201(c) (42 U.S.C. 5131(c)) is amended—
(1) by striking ‘‘and’’ at the end of paragraph
(1);
(2) by striking the period at the end of para-
graph (2) and inserting ‘‘; and’’; and
(3) by adding at the end the following:
‘‘(3) set forth, with the ongoing cooperation of
local governments and consistent with section 409, a
comprehensive and detailed State program for miti-
gating against emergencies and major disasters, in-
cluding provisions for prioritizing mitigation meas-
ures.’’.
SEC. 103. DISASTER ASSISTANCE PLANS.
Section 201(d) (42 U.S.C. 5131(d)) is amended to read
as follows:
‘‘(d) GRANTS FOR DISASTER ASSISTANCE AND HAZ-
ARD IDENTIFICATION.—The President is authorized to make
grants for—
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‘‘(1) not to exceed 50 percent of the cost of im-
proving, maintaining, and updating State disaster
assistance plans including, consistent with section
409, evaluation of natural hazards and development
of the programs and actions required to mitigate such
hazards; and
‘‘(2) the development and application of im-
proved floodplain mapping technologies that can be
used by Federal, State, and local governments and
that the President determines will likely result in sub-
stantial savings over current floodplain mapping
methods.’’.
SEC. 104. PREDISASTER HAZARD MITIGATION.
Title II (42 U.S.C. 5131–5132) is amended by adding
at the end the following:
‘‘SEC. 203. PREDISASTER HAZARD MITIGATION.
‘‘(a) GENERAL AUTHORITY.—The President may es-
tablish a program to provide financial assistance to States
and local governments for the purpose of undertaking
predisaster hazard mitigation activities that are cost effec-
tive and substantially reduce the risk of future damage,
hardship, or suffering from a major disaster.
‘‘(b) PURPOSE OF ASSISTANCE.—
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), a State or local government that receives
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financial assistance under this section shall use the
assistance for funding activities that are cost effective
and substantially reduce the risk of future damage,
hardship, or suffering from a major disaster.
‘‘(2) DISSEMINATION.—The State or local gov-
ernment may use not more than 10 percent of finan-
cial assistance it receives under this section in a fis-
cal year for funding activities to disseminate infor-
mation regarding cost effective mitigation technologies
(such as preferred construction practices and mate-
rials), including establishing and maintaining centers
for protection against natural disasters to carry out
such dissemination.
‘‘(c) ALLOCATION OF FUNDS.—The amount of finan-
cial assistance to be made available to a State, including
amounts made available to local governments of such State,
under this section in a fiscal year shall—
‘‘(1) not be less than the lesser of $500,000 or 1.0
percent of the total funds appropriated to carry out
this section for such fiscal year; but
‘‘(2) not exceed 15 percent of such total funds.
‘‘(d) CRITERIA.—Subject to the limitations of sub-
sections (c) and (e), in determining whether to provide as-
sistance to a State or local government under this section
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and the amount of such assistance, the President shall con-
sider the following criteria:
‘‘(1) The clear identification of prioritized cost-
effective mitigation activities that produce meaningful
and definable outcomes.
‘‘(2) If the State has submitted a mitigation pro-
gram in cooperation with local governments under
section 201(c), the degree to which the activities iden-
tified in paragraph (1) are consistent with the State
mitigation program.
‘‘(3) The extent to which assistance will fund ac-
tivities that mitigate hazards evaluated under section
409.
‘‘(4) The opportunity to fund activities that
maximize net benefits to society.
‘‘(5) The ability of the State or local government
to fund mitigation activities.
‘‘(6) The extent to which assistance will fund
mitigation activities in small impoverished commu-
nities.
‘‘(7) The level of interest by the private sector to
enter into a partnership to promote mitigation.
‘‘(8) Such other criteria as the President estab-
lishes in consultation with State and local govern-
ments.
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‘‘(e) STATE NOMINATIONS.—
‘‘(1) IN GENERAL.—The Governor of each State
may recommend to the President not less than 5 local
governments to receive assistance under this section.
The recommendations shall be submitted to the Presi-
dent not later than October 1, 1999, and each October
1st thereafter or such later date in the year as the
President may establish. In making such rec-
ommendations, the Governors shall consider the cri-
teria identified in subsection (d).
‘‘(2) USE.—
‘‘(A) GENERAL RULE.—In providing assist-
ance to local governments under this section, the
President shall select from local governments rec-
ommended by the Governors under this sub-
section.
‘‘(B) WAIVER.—Upon request of a local gov-
ernment, the President may waive the limitation
in subparagraph (A) if the President determines
that extraordinary circumstances justify the
waiver and that granting the waiver will further
the purpose of this section.
‘‘(3) EFFECT OF FAILURE TO NOMINATE.—If a
Governor of a State fails to submit recommendations
under this subsection in a timely manner, the Presi-
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dent may select, subject to the criteria in subsection
(d), any local governments of the State to receive as-
sistance under this section.
‘‘(f) SMALL IMPOVERISHED COMMUNITIES.—For the
purpose of this section, the term ‘small impoverished com-
munities’ means communities of 3,000 or fewer individuals
that are economically disadvantaged, as determined by the
State in which the community is located and based on cri-
teria established by the President.
‘‘(g) FEDERAL SHARE.—Financial assistance pro-
vided under this section may contribute up to 75 percent
of the total cost of mitigation activities approved by the
President; except that the President may contribute up to
90 percent of the total cost of mitigation activities in small
impoverished communities.
‘‘(h) AUTHORIZATION OF APPROPRIATIONS.—There is
authorized to be appropriated to carry out this section
$25,000,000 for fiscal year 1999 and $80,000,000 for fiscal
year 2000.
‘‘(i) AUTHORIZATION OF SECTION 404 FUNDS.—Effec-
tive October 1, 2000, in addition to amounts appropriated
under subsection (h) from only appropriations enacted after
October 1, 2000, the President may use, to carry out this
section, funds that are appropriated to carry out section
404 for post-disaster mitigation activities that have not
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been obligated within 30 months of the disaster declaration
upon which the funding availability is based.
‘‘(j) REPORT ON FEDERAL AND STATE ADMINISTRA-
TION.—Not later than 18 months after the date of enact-
ment of the Disaster Mitigation and Cost Reduction Act
of 1999, the President, in consultation with State and local
governments, shall transmit to Congress a report evaluating
efforts to implement this section and recommending a proc-
ess for transferring greater authority and responsibility for
administering the assistance program authorized by this
section to capable States.’’.
SEC. 105. INTERAGENCY TASK FORCE.
The President shall establish an interagency task force
for the purpose of coordinating the implementation of the
predisaster hazard mitigation program authorized by sec-
tion 203 of the Robert T. Stafford Disaster Relief and
Emergency Assistance Act. The Director of the Federal
Emergency Management Agency shall chair such task force.
SEC. 106. MAXIMUM CONTRIBUTION FOR MITIGATION
COSTS.
(a) 
IN
GENERAL.—Section 
404(a) 
(42 
U.S.C.
5170c(a)) is amended by striking ‘‘15 percent’’ and insert-
ing ‘‘20 percent’’.
(b) APPLICABILITY.—The amendment made by sub-
section (a) shall apply to major disasters declared under
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the Robert T. Stafford Disaster Relief Act and Emergency
Assistance Act after January 1, 1997.
SEC. 107. CONFORMING AMENDMENT.
The heading for title II is amended to read as follows:
‘‘TITLE II—DISASTER PREPARED-
NESS AND MITIGATION AS-
SISTANCE’’.
TITLE II—STREAMLINING AND
COST REDUCTION
SEC. 201. MANAGEMENT COSTS.
(a) IN GENERAL.—Title III (42 U.S.C. 5141–5164) is
amended by adding at the end the following:
‘‘SEC. 322. MANAGEMENT COSTS.
‘‘(a) IN GENERAL.—Notwithstanding any other provi-
sion of law (including any administrative rule or guid-
ance), the President shall establish by rule management cost
rates for grantees and subgrantees. Such rates shall be used
to determine contributions under this Act for management
costs.
‘‘(b) MANAGEMENT COSTS DEFINED.—Management
costs include indirect costs, administrative expenses, associ-
ated expenses, and any other expenses not directly charge-
able to a specific project under a major disaster, emergency,
or emergency preparedness activity or measure. Such costs
include the necessary costs of requesting, obtaining, and ad-
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ministering Federal assistance and costs incurred by a
State for preparation of damage survey reports, final in-
spection reports, project applications, final audits, and re-
lated field inspections by State employees, including over-
time pay and per diem and travel expenses of such employ-
ees, but not including pay for regular time of such employ-
ees.
‘‘(c) REVIEW.—The President shall review the manage-
ment cost rates established under subsection (a) not later
than 3 years after the date of establishment of such rates
and periodically thereafter.’’.
(b) APPLICABILITY.—Section 322 of the Robert T.
Stafford Disaster Relief and Emergency Assistance Act (as
added by subsection (a) of this section) shall apply as fol-
lows:
(1) Subsections (a) and (b) of such section 322
shall apply to major disasters declared under such
Act on or after the date of enactment of this Act.
Until the date on which the President establishes the
management cost rates under such subsection, section
406(f) shall be used for establishing such rates.
(2) Subsection (c) of such section 322 shall apply
to major disasters declared under such Act on or after
the date on which the President establishes such rates
under subsection (a) of such section 322.
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SEC. 202. ASSISTANCE TO REPAIR, RESTORE, RECON-
STRUCT, OR REPLACE DAMAGED FACILITIES.
(a) CONTRIBUTIONS.—Section 406(a) (42 U.S.C.
5172(a)) is amended to read as follows:
‘‘(a) CONTRIBUTIONS.—
‘‘(1) IN
GENERAL.—The President may make
contributions—
‘‘(A) to a State or local government for the
repair, restoration, reconstruction, or replace-
ment of a public facility which is damaged or
destroyed by a major disaster and for associated
expenses incurred by such government; and
‘‘(B) subject to paragraph (2), to a person
who owns or operates a private nonprofit facility
damaged or destroyed by a major disaster for the
repair, restoration, reconstruction, or replace-
ment of such facility and for associated expenses
incurred by such person.
‘‘(2) CONDITIONS FOR ASSISTANCE TO PRIVATE
NONPROFIT FACILITIES.—
‘‘(A) IN
GENERAL.—The President may
make contributions to a private nonprofit facil-
ity under paragraph (1)(B) only if—
‘‘(i) the facility provides critical serv-
ices (as defined by the President) in the
event of a major disaster; or
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‘‘(ii)(I) the owner or operator of the fa-
cility has applied for a disaster loan under
section 7(b) of the Small Business Act (15
U.S.C. 636(b)); and
‘‘(II) has been determined to be ineli-
gible for such a loan; or
‘‘(III) has obtained such a loan in the
maximum amount for which the Small
Business Administration determines the fa-
cility is eligible.
‘‘(B) CRITICAL SERVICES DEFINED.—In this
paragraph, the term ‘critical services’ includes,
but is not limited to, power, water, sewer, waste-
water treatment, communications, and emer-
gency medical care.’’.
(b) MINIMUM FEDERAL SHARE.—Section 406(b) (42
U.S.C. 5172(b)) is amended to read as follows:
‘‘(b) MINIMUM FEDERAL SHARE.—The Federal share
of assistance under this section shall be not less than 75
percent of the eligible cost of repair, restoration, reconstruc-
tion, or replacement carried out under this section.’’.
(c) LARGE IN-LIEU CONTRIBUTIONS.—Section 406(c)
(42 U.S.C. 5172(c)) is amended to read as follows:
‘‘(c) LARGE IN-LIEU CONTRIBUTIONS.—
‘‘(1) FOR PUBLIC FACILITIES.—
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‘‘(A) IN GENERAL.—In any case in which a
State or local government determines that the
public welfare would not be best served by re-
pairing, restoring, reconstructing, or replacing
any public facility owned or controlled by such
State or local government, the State or local gov-
ernment may elect to receive, in lieu of a con-
tribution under subsection (a)(1)(A), a contribu-
tion of 75 percent of the Federal share of the
Federal estimate of the cost of repairing, restor-
ing, reconstructing, or replacing such facility
and of management expenses.
‘‘(B) USE OF FUNDS.—Funds contributed to
a State or local government under this para-
graph may be used to repair, restore, or expand
other selected public facilities, to construct new
facilities, or to fund hazard mitigation measures
which the State or local government determines
to be necessary to meet a need for governmental
services and functions in the area affected by the
major disaster.
‘‘(2) FOR PRIVATE NONPROFIT FACILITIES.—
‘‘(A) IN GENERAL.—In any case where a
person who owns or operates a private nonprofit
facility determines that the public welfare would
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not be best served by repairing, restoring, recon-
structing, or replacing such facility, such person
may elect to receive, in lieu of a contribution
under subsection (a)(1)(B), a contribution of 75
percent of the Federal share of the Federal esti-
mate of the cost of repairing, restoring, recon-
structing, or replacing such facility and of man-
agement expenses.
‘‘(B) USE OF FUNDS.—Funds contributed to
a person under this paragraph may be used to
repair, restore, or expand other selected private
nonprofit facilities owned or operated by the per-
son, to construct new private nonprofit facilities
to be owned or operated by the person, or to fund
hazard mitigation measures that the person de-
termines to be necessary to meet a need for its
services and functions in the area affected by the
major disaster.
‘‘(3) MODIFICATION OF FEDERAL SHARE.—The
President shall modify the Federal share of the cost
estimate provided in paragraphs (1) and (2) if the
President determines an alternative cost share will
likely reduce the total amount of Federal assistance
provided under this section. The Federal cost share for
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purposes of paragraphs (1) and (2) shall not exceed
90 percent and shall not be less than 50 percent.’’.
(d) ELIGIBLE COST.—
(1) IN
GENERAL.—Section 406(e) (42 U.S.C.
5172(e)) is amended to read as follows:
‘‘(e) ELIGIBLE COST.—
‘‘(1) IN GENERAL.—For the purposes of this sec-
tion, the estimate of the cost of repairing, restoring,
reconstructing, or replacing a public facility or pri-
vate nonprofit facility on the basis of the design of
such facility as it existed immediately before the
major disaster and in conformity with current appli-
cable codes, specifications, and standards (including
floodplain management and hazard mitigation cri-
teria required by the President or by the Coastal Bar-
rier Resources Act (16 U.S.C. 3501 et seq.)) shall be
treated as the eligible cost of such repair, restoration,
reconstruction, or replacement. Subject to paragraph
(2), the President shall use the cost estimation proce-
dures developed under paragraph (3) to make the esti-
mate under this paragraph.
‘‘(2) MODIFICATION OF ELIGIBLE COST.—In the
event the actual cost of repairing, restoring, recon-
structing, or replacing a facility under this section is
more than 120 percent or less than 80 percent of the
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cost estimated under paragraph (1), the President
may determine that the eligible cost be the actual cost
of such repair, restoration, reconstruction, or replace-
ment. The government or person receiving assistance
under this section shall reimburse the President for
the portion of such assistance that exceeds the eligible
cost of such repair, restoration, reconstruction, or re-
placement.
‘‘(3) USE OF SURPLUS FUNDS.—In the event the
actual cost of repairing, restoring, reconstructing, or
replacing a facility under this section is less than 100
percent but not less than 80 percent of the cost esti-
mated under paragraph (1), the government or person
receiving assistance under this section shall use any
surplus funds to perform activities that are cost-effec-
tive and reduce the risk of future damage, hardship,
or suffering from a major disaster.
‘‘(4) EXPERT PANEL.—Not later than 18 months
after the date of enactment of the Disaster Mitigation
and Cost Reduction Act of 1999, the President, acting
through the Director of the Federal Emergency Man-
agement Agency, shall establish an expert panel, in-
cluding representatives from the construction indus-
try, to develop procedures for estimating the cost of
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repairing, restoring, reconstructing, or replacing a fa-
cility consistent with industry practices.
‘‘(5) SPECIAL RULE.—In any case in which the
facility being repaired, restored, reconstructed, or re-
placed under this section was under construction on
the date of the major disaster, the cost of repairing,
restoring, reconstructing, or replacing such facility
shall include, for purposes of this section, only those
costs which, under the contract for such construction,
are the owner’s responsibility and not the contractor’s
responsibility.’’.
(2) EFFECTIVE DATE.—The amendment made by
paragraph (1) shall take effect on the date of enact-
ment of this Act, and shall only apply to funds ap-
propriated after the date of enactment of this Act; ex-
cept that paragraph (1) of section 406(e) of the Rob-
ert T. Stafford Disaster Relief and Emergency Assist-
ance Act (as amended by paragraph (1) of this sub-
section) shall take effect on the date that the proce-
dures developed under paragraph (3) of such section
take effect.
(e) ASSOCIATED EXPENSES.—
(1) IN GENERAL.—Section 406 (42 U.S.C. 4172)
is amended by striking subsection (f).
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(2) OTHER ELIGIBLE COSTS.—Section 406(e) (42
U.S.C. 5172(e)), as amended by subsection (d) of this
section, is amended by adding at the end the follow-
ing:
‘‘(6) OTHER ELIGIBLE COSTS.—For purposes of
this section, other eligible costs include the following:
‘‘(A) COSTS OF NATIONAL GUARD.—The cost
of mobilizing and employing the National Guard
for performance of eligible work.
‘‘(B) COSTS OF PRISON LABOR.—The costs
of using prison labor to perform eligible work,
including wages actually paid, transportation to
a worksite, and extraordinary costs of guards,
food, and lodging.
‘‘(C) OTHER LABOR COSTS.—Base and over-
time wages for an applicant’s employees and
extra hires performing eligible work plus fringe
benefits on such wages to the extent that such
benefits were being paid before the disaster.’’.
(3) EFFECTIVE DATE.—Paragraphs (1) and (2)
shall take effect on the date on which the President es-
tablishes management cost rates under section 322(a)
of the Robert T. Stafford Disaster Relief and Emer-
gency Assistance Act (as added by section 201(a) of
this Act). The amendment made by paragraph (1)
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shall only apply to disasters declared by the President
under such Act after the date on which the President
establishes such cost rates.
SEC. 203. FEDERAL ASSISTANCE TO INDIVIDUALS AND
HOUSEHOLDS.
(a) IN GENERAL.—Section 408 (42 U.S.C. 5174) is
amended to read as follows:
‘‘SEC. 408. FEDERAL ASSISTANCE TO INDIVIDUALS AND
HOUSEHOLDS.
‘‘(a) GENERAL AUTHORITY.—Subject to the require-
ments of this section, the President, in consultation with
the Governor of the affected State, may provide financial
assistance, and, if necessary, direct services, to disaster vic-
tims who as a direct result of a major disaster have nec-
essary expenses and serious needs where such victims are
unable to meet such expenses or needs through other means.
‘‘(b) HOUSING ASSISTANCE.—
‘‘(1) ELIGIBILITY.—The President may provide
financial or other assistance under this section to in-
dividuals and families to respond to the disaster-re-
lated housing needs of those who are displaced from
their 
predisaster 
primary 
residences 
or 
whose
predisaster primary residences are rendered uninhab-
itable as a result of damage caused by a major disas-
ter.
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‘‘(2) DETERMINATION
OF
APPROPRIATE
TYPES
OF ASSISTANCE.—The President shall determine ap-
propriate types of housing assistance to be provided
to disaster victims under this section based upon con-
siderations of cost effectiveness, convenience to disas-
ter victims, and such other factors as the President
may consider appropriate. One or more types of hous-
ing assistance may be made available, based on the
suitability and availability of the types of assistance,
to meet the needs of disaster victims in the particular
disaster situation.
‘‘(c) TYPES OF HOUSING ASSISTANCE.—
‘‘(1) TEMPORARY HOUSING.—
‘‘(A) FINANCIAL ASSISTANCE.—
‘‘(i) IN GENERAL.—The President may
provide financial assistance under this sec-
tion to individuals or households to rent al-
ternate housing accommodations, existing
rental units, manufactured housing, rec-
reational vehicles, or other readily fab-
ricated dwellings.
‘‘(ii) AMOUNT.—The amount of assist-
ance under clause (i) shall be based on the
fair market rent for the accommodation
being furnished plus the cost of any trans-
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portation, utility hookups, or unit installa-
tion not being directly provided by the
President.
‘‘(B) DIRECT ASSISTANCE.—
‘‘(i) IN GENERAL.—The President may
also directly provide under this section
housing units, acquired by purchase or
lease, to individuals or households who, be-
cause of a lack of available housing re-
sources, would be unable to make use of the
assistance provided under subparagraph
(A).
‘‘(ii) PERIOD
OF
ASSISTANCE.—The
President may not provide direct assistance
under clause (i) with respect to a major dis-
aster after the expiration of the 18-month
period beginning on the date of the declara-
tion of the major disaster by the President,
except that the President may extend such
period if the President determines that due
to extraordinary circumstances an extension
would be in the public interest.
‘‘(iii) 
COLLECTION
OF
RENTAL
CHARGES.—After the expiration of the 18-
month period referred to in clause (ii), the
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President may charge fair market rent for
the accommodation being provided.
‘‘(2) REPAIRS.—The President may provide fi-
nancial assistance for the repair of owner-occupied
private residences, utilities, and residential infra-
structure (such as private access routes) damaged by
a major disaster to a habitable or functioning condi-
tion. A recipient of assistance provided under this
paragraph need not show that the assistance can be
met through other means, except insurance proceeds,
if the assistance is used for emergency repairs to
make a private residence habitable and does not ex-
ceed $5,000 (based on fiscal year 1998 constant dol-
lars).
‘‘(3) REPLACEMENT.—The President may pro-
vide financial assistance for the replacement of
owner-occupied private residences damaged by a
major disaster. Assistance provided under this para-
graph shall not exceed $10,000 (based on fiscal year
1998 constant dollars). The President may not waive
any provision of Federal law requiring the purchase
of flood insurance as a condition for the receipt of
Federal disaster assistance with respect to assistance
provided under this paragraph.
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‘‘(4) PERMANENT HOUSING CONSTRUCTION.—The
President may provide financial assistance or direct
assistance under this section to individuals or house-
holds to construct permanent housing in insular areas
outside the continental United States and other re-
mote locations in cases in which—
‘‘(A) no alternative housing resources are
available; and
‘‘(B) the types of temporary housing assist-
ance described in paragraph (1) are unavailable,
infeasible, or not cost effective.
‘‘(d) TERMS AND CONDITIONS RELATING TO HOUSING
ASSISTANCE.—
‘‘(1) SITES.—Any readily fabricated dwelling
provided under this section shall, whenever possible,
be located on a site complete with utilities, and shall
be provided by the State or local government, by the
owner of the site, or by the occupant who was dis-
placed by the major disaster. Readily fabricated
dwellings may be located on sites provided by the
President if the President determines that such sites
would be more economical or accessible.
‘‘(2) DISPOSAL OF UNITS.—
‘‘(A) SALE TO OCCUPANTS.—
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‘‘(i) IN
GENERAL.—Notwithstanding
any other provision of law, a temporary
housing unit purchased under this section
by the President for the purposes of housing
disaster victims may be sold directly to the
individual or household who is occupying
the unit if the individual or household needs
permanent housing.
‘‘(ii) SALES
PRICE.—Sales of tem-
porary housing units under clause (i) shall
be accomplished at prices that are fair and
equitable.
‘‘(iii) DEPOSIT
OF
PROCEEDS.—Not-
withstanding any other provision of law,
the proceeds of a sale under clause (i) shall
be deposited into the appropriate Disaster
Relief Fund account.
‘‘(iv) USE
OF
GSA
SERVICES.—The
President may use the services of the Gen-
eral Services Administration to accomplish
a sale under clause (i).
‘‘(B) OTHER METHODS OF DISPOSAL.—
‘‘(i) SALE.—If not disposed of under
subparagraph (A), a temporary housing
unit purchased by the President for the pur-
HR 707 RH
poses of housing disaster victims may be re-
sold.
‘‘(ii) DISPOSAL TO GOVERNMENTS AND
VOLUNTARY ORGANIZATIONS.—A temporary
housing unit described in clause (i) may
also be sold, transferred, donated, or other-
wise made available directly to a State or
other governmental entity or to a voluntary
organization for the sole purpose of provid-
ing temporary housing to disaster victims
in major disasters and emergencies if, as a
condition of such sale, transfer, or donation,
the State, other governmental agency, or
voluntary organization agrees to comply
with the nondiscrimination provisions of
section 308 and to obtain and maintain
hazard and flood insurance on the housing
unit.
‘‘(e) FINANCIAL ASSISTANCE TO ADDRESS OTHER
NEEDS.—
‘‘(1) MEDICAL, 
DENTAL, 
AND
FUNERAL
EX-
PENSES.—The President, in consultation with the
Governor of the affected State, may provide financial
assistance under this section to an individual or
household adversely affected by a major disaster to