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August 25, 2006
FOR IMMEDIATE RELEASE
KATRINA ONE YEAR LATER:
BUSH ADMINISTRATION HOUSING POLICY LETS GULF COAST, AMERICA DOWN
Washington, DC – Democratic Members of the
House Financial Services Committee, led by Ranking Democratic Member Barney
Frank, today released a report detailing the Bush Administration’s housing
failures in the year since Hurricanes Katrina and Rita seriously damaged
America’s Gulf Coast region. Today’s report demonstrates the Bush
Administration’s failed response to the housing needs caused by Hurricane
Katrina, which includes the legendary failures of FEMA, the indifference of
HUD (the federal agency responsible for housing policy) to the crisis,
woefully inadequate requests for housing reconstruction funds, and
opposition to numerous Congressional efforts to provide affordable rental
housing for working families. The conclusion is inescapable: the Bush
Administration’s response to the housing crisis spawned by Hurricane Katrina
has been an abject failure.
“The housing response to Hurricane Katrina has
been a national embarrassment and if reality matched their rhetoric, New
Orleans and the Gulf Coast would be a much better place one year later,”
said Congressman Barney Frank. “The Bush Administration opposed bipartisan
legislation that would have potentially sent hundreds of millions of dollars
in non-taxpayer funds for affordable housing to the Gulf Coast. They even
turned their backs on Republican efforts to rebuild the region.”
As
the White House and members of the administration gear up for their public
relations blitz next week, the reality of the housing situation in the Gulf
Coast is disturbing. The White House has also thrown up barriers or refused
to support both House Republican and bipartisan initiatives to deal with the
housing crisis, for example, the Housing Fund as part of the reforms of
Fannie Mae and Freddie Mac, and Rep. Baker’s (R-LA) bill to rebuild
Louisiana. Today’s report spells out in detail the Bush Administration’s
failure to respond to the critical housing needs caused by last year’s
natural disasters. For example:
Delayed Reconstruction of Housing Units
Damaged by Hurricane Katrina
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The Bush Administration has strenuously
opposed a GSE Affordable Housing Fund. Had it not opposed this fund and
the broader GSE reform bill (HR 1461) hundreds of millions of dollars
would already be going to the Gulf Coast for housing reconstruction.
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The Administration’s slow response to
housing needs delayed the pace of reconstruction. While House Democrats
unveiled a vigorous housing funding plan, the Administration’s initial
request was so inadequate that the amount Congress later approved ($11.5
billion in CDBG funds alone) was 8 times the Administration request.
Subsequent pressure from Gulf Coast members frustrated by the
Administration’s opposition to a housing reconstruction bill (HR 4100)
forced the Administration to ask for more funds to meet housing needs.
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The Bush Administration has consistently
opposed efforts to rebuild affordable rental housing for working and low
income families, even opposing a requirement that a portion of CDBG
reconstruction funds go for this purpose. Instead of funding repair of
public housing units that could be readily repaired, the Administration is
demolishing 5,000 units, with HUD Secretary Jackson publicly opposing
rebuilding parts of New Orleans.
A Hole in the Disaster Housing Safety Net;
Impeding Return of Residents to their Local Communities
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The Bush Administration and Congressional
Republicans opposed Democratic initiatives made right after Katrina hit
for emergency housing vouchers for dislocated households (modeled after a
successful program used after the 1994 Northridge Earthquake).
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Instead, the Bush Administration relied on
the Section 408 FEMA rental assistance program, which it mismanaged -
making it difficult for large numbers of qualified households to receive
assistance. FEMA’s repeated refusal to obey Congress’ legislative
directive to issue clear eligibility criteria for the program has made it
harder for families discolated after Katrina hit to get rental assistance
and return to their local communities.
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After FEMA spent billions of dollars on
manufactured homes and RV trailers, tens of thousands went unused for long
periods of time, while displaced families lacked housing. Trailers should
have been used to house families near where they lived or sited on
homeowners’ properties - to make it easier for them to move back to their
community.
Bush Administration Failures
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In February, the Administration issued a
report stating that one of its “Lessons Learned” is that HUD should be in
charge of long-term disaster housing needs. Yet, a year after Katrina hit,
FEMA is still in charge of the Administration’s housing response to
Katrina.
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In November, 2005, the Bush Administration
tried to kick out 53,000 families on just two weeks notice from lodging in
hotels and motels. Only a public outcry and successful lawsuits forced
the Administration to give families more time to find alternative housing.
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Immediately after Katrina hit, the
Administration encouraged Houston and other cities to co-sign long-term
leases of up to one year to house Katrina evacuees. Two months later, the
Administration broke its word and forced these communities to break these
leases.
To view the entire report, click
here.
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