Washington, DC – The House of Representatives, today, debated H.R. 1427, Federal Housing Finance Reform Act.  This bill would substantially strengthen the oversight of Fannie Mae, Freddie Mac, and the 12 Federal Home Loan Banks, collectively referred to as the housing government-sponsored enterprises (GSEs).  The bill would also establish a new Affordable Housing Fund to be supported by required contributions from Fannie Mae and Freddie Mac.  Congressman Al Green (TX-09) proposed an amendment to allot percentages of the affordable housing fund to address affordable housing needs in Texas and Alabama which occurred as a result of Hurricanes Katrina and Rita.  Congressman Al Green announced and then subsequently withdrew his amendment, upon receiving assurance from House Financial Services Committee Chairman Barney Frank that his concerns for the affordable housing needs of Gulf Coast States will be addressed in conference.

In the first year of the housing fund's operation, 75 percent of the fund would go to Louisiana, and 25 percent would go to Mississippi to help address some of effects of Hurricanes Katrina and Rita.  The housing needs that have resulted from Hurricanes Katrina and Rita extend beyond these two states.  In Texas, over 75,000 homes suffered major damage or were destroyed.  Of these, an estimated 40,000 were uninsured.  These homeowners are likely to face average damage repair and construction costs of $10,000 that will not be reimbursed by FEMA or insurance.  In Alabama, only $8 million was allocated to counties, such as South Mobile and Coden County, which sustained the most significant damage in the State.

"Nobody can argue about the impact of the hurricanes on Louisiana and Mississippi.  I have been to these states on multiple occasions and witnessed first hand the devastation. Texas and Alabama have also experienced much devastation," started Congressman Green.  "My amendment would allot 45 percent of the Affordable Housing Fund to Louisiana, and divide the remaining 55 percent equally among Mississippi, Texas, and Alabama.  I commend Chairman Frank on his assurance to consider the concerns of these states in conference.  In so doing we can treat Texas and Alabama equitably and send a strong signal to our friends in those states that we have not forgotten them. The scarcity of affordable housing extends through states along the Gulf Coast. Displaced families in all 4 states have few choices as they await housing that will take many years to rebuild. Affordable housing assistance is critical for providing all those who survived the devastation of these hurricanes with the best opportunity to rebuild their lives and regain the opportunity fulfill the American dream of home ownership."

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