Gulf Coast Hurricane Housing Recovery Act

H.R. 1227- Section by Section, as reported by Financial Services Committee, 03/07/07

SHORT TITLE. Gulf Coast Hurricane Housing Recovery Act of 2007

TITLE 1. COMMUNITY DEVELOPMENT BLOCK GRANTS

Section 101. Flexibility of Federal Funds for Road Home Program. (a) Provides that $1.175 billion in FEMA Hazard Mitigation Grant Program (HMGP) funds previously made available to the State of Louisiana shall be made available under terms of the CDBG funds made available to the State and shall be deemed approved by HUD for such use Currently Louisiana’s Road Home program proposes to combine CDBG and HMGP funds for grants to homeowners to rehabilitate their homes and for purchase of homes for open space. HUD approved use of CDBG funds for this, but FEMA will not approve funds, based on the feature of the Road Home Program that provides incentives for homeowners to stay in the state, and based on the feature that such incentives shall not apply to elderly persons. This provision would free up HMGP funds for State use.

(b) Also requires State to submit monthly reports on use of CDBG funds for its “Road Home” program. The monthly reports would include number of applications, number of households assisted, and total and average per household amounts of assistance provided.

(c) Transfers $15 million of CDBG amounts previously made available to the State of Louisiana to the New Orleans Redevelopment Authority, for a pilot program to leverage private capital to assemble, redevelop, and re-sell parcels of land in New Orleans.

(d) Requires GAO to complete quarterly reports on the use of the $1.175 billion in transferred Road Home funds, to identify any waste, fraud, or abuse involved in such funds, and certify anytime such waste, fraud and abuse exceeds 10% of funds expended.

Section 102. Treatment of Benefits from Other Programs Under Road Home Program. Eliminates prohibition in previous CDBG supplemental spending bills which prevent “duplication of benefits,” except that such elimination shall not result in a “windfall gain” to any person. The existing duplication of benefits provision requires deducting from homeowner grants the amount the homeowner receives from hazard insurance, flood insurance, and other FEMA disaster payments. The way this provision has been implemented in Louisiana has apparently resulted in many homeowners not receiving sufficient funding to complete their repairs.

Section 103. Elimination of Prohibition of Use for Match Requirement. (a) Permits all CDBG supplemental funds made available for Hurricanes Katrina, Rita, or Wilma to be used as a match for other federal programs (including FEMA). (b) Permits localities that use CDBG funds for such purpose to rely on FEMA environmental reviews in lieu of completing a separate environmental review for HUD purposes.

Section 104. Reimbursement of CDBG Amounts Used for Rental Housing Assistance. Authorizes appropriations, from previously appropriated FEMA supplemental Hurricane funds, for reimbursement of regular CDBG funds that cities or counties used to provide rental assistance for Katrina, Rita, or Wilma evacuees.


TITLE II. PUBLIC HOUSING

Section 201. Survey of Public Housing Residents. Requires HUD to provide for the conducting of a survey by an independent entity or organization of public housing residents residing in the Housing Authority of New Orleans (HANO) public housing units at the time Hurricane Katrina hit land, to determine whether they want to return to HANO public housing, and if so, when. The survey is to be done with the participation of HANO residents and resident councils, with a report detailing survey results to be submitted to Congress within 60 days of the bill’s enactment.

Section 202. Right of Return for Previous Residents of Public Housing. Requires HANO to make available by August 1st the greater of 3,000 public housing units (or comparable units with comparable rent burden) or a sufficient number of units to accommodate residents that responded that they want to return. Pre-Katrina HANO public housing residents shall have a right to return to a HANO public housing unit (or comparable unit). To exercise this right, residents must give notice by August 1st and agree to return no later than October 1st. HANO shall also provide relocation assistance for residents, and provide a preference for projects where the resident previously lived, or if not possible, a preference for units in the same or adjoining census tract, or neighborhood.

Section 203. One-for-One Replacement of all Public Housing Units. Prohibits HANO from demolishing or disposing of any public housing unit unless a plan is in place to provide a public housing or comparable replacement unit with comparable affordability provisions to public housing units for each lost unit, and to implement right of return provisions. Plans shall involve the active participation of residents, resident councils, and City of New Orleans at every phase of the process, with opportunity for comment.

Section 204. Protection for Public Housing Residents in Hurricane Areas. Prohibits any public housing authority (PHA) in areas affected by Hurricanes Katrina or Rita from transferring any public housing units for a period of two years unless the buyer agrees to maintain existing affordability provisions for “the longest feasible period.” Prohibits any such PHA from demolishing any units except pursuant to a plan to replace such units with public housing or comparable units, and prohibits demolition of habitable units unless the PHA provides a suitable, comparable unit to all displaced tenants. Provides a right of return for dislocated residents from such public housing agencies, and requires relocation assistance for returning residents.

Section 205. Reports on Proposed Conversions of Public Housing Units. Requires HUD to send a report to Congress within 15 days of bill enactment identifying all public housing units located in areas impacted by Hurricanes Katrina and Rita, which have plans to transfer ownership to other entities or organizations. Relevant information is to be included for each proposal, including project name, number of units, new owner, income and rent provisions, affordability restrictions, and proposed date of transfer.

Section 206. Authorization of Appropriations for Repair and Rehabilitation. Authorizes such sums as are necessary to carry out repair, rehabilitation, and development of HANO public housing units, and for community and supportive services for HANO residents.

Section 207. Compliance of Existing Requests for Proposals. Subjects any existing request for qualification or proposal related to HANO public housing units to the provisions of this Title.

Section 208. Reports on Compliance. Requires HUD to submit to Congress within 30 days and thereafter quarterly a report on compliance with the provisions of this Title.

Section 209. Requirements Regarding Public Housing Construction Workers. Requires any recovery funds used under this Title for construction, development, rehabilitation, or repair of public housing units verify that all workers have an immigration status that allows them to legally be employed, and have a valid ID or documentation indicating such immigration status.


TITLE 3. DISASTER VOUCHER PROGRAM AND PROJECT-BASED RENTAL ASSISTANCE.

Section 301. Extension of DVP Program. Extends HUD Disaster Voucher Program (DVP) from September, 2007 through January 1, 2008. The DVP program, using funds previously appropriated from Hurricane supplemental bills, provides rental assistance to families living in areas impacted by Hurricanes Katrina and Rita who were voucher holders, public housing residents, families assisted under the Section 8 project-based program, and or homeless persons at the time of the hurricane. This extension will give time to work through DVP transition issues through the FY 2008 appropriations bill process.

Section 302. Clarification of Voucher Allocation Formula for Fiscal Year 2007. Provides further clarification that the Secretary shall make appropriate adjustments under the FY 2007 Continuing Resolution to provide adequate voucher funding for public housing agencies impacted by Hurricanes Katrina, Rita, and Wilma. The CR changed the voucher funding formula to base FY 2007 PHA funding on prior year’s voucher leasing and cost data. It included language that provides HUD with authority to make adjustments for Gulf state PHAs that had lower voucher expenditures last year, to ensure full voucher funding for those agencies. However, after enactment of the CR, HUD started raising concerns about whether it would use such authority. This provision would clarify that HUD should make such appropriate adjustments.

Section 303. Preservation of Project-Based Housing Assistance Payments Contracts for Dwelling Units Damaged or Destroyed. Requires HUD to promptly review and approve all feasible proposals to restore Section 8 project-based assistance to projects damaged by Hurricanes Katrina or Rita, including proposals to transfer the contract to another site or owner. Proposals are to be submitted no later than October 1st.

Section 304. Tenant Replacement Vouchers for All Lost Units. Requires HUD to provide, upon request of a public housing agency, tenant replacement vouchers for all public housing units and assisted housing units that are not brought back on line.

Section 305. Voucher Assistance for Supportive Housing. Authorizes such sums as may be necessary for 4,500 new housing vouchers for project-based rental assistance for supportive housing units for seniors, disabled persons, and homeless persons. 3,000 of such vouchers shall be made available to the State of Louisiana or its designee or designees, up their request. Also waives for such vouchers the statutory limits on the percentage of project-based vouchers a PHA may use overall and in a particular project.

Section 306. Transfer of DVP Vouchers to Permanent Voucher Program. Provides that upon the termination of the Disaster Voucher Program (DVP), vouchers be made available for families in the DVP program, to be administered by the local housing agency in which each family is living at such time. Such vouchers are temporary, ie., will disappear when the existing family is no longer eligible for voucher assistance.

Section 307. Identification and Notification of DVP-Eligible Households Not Assisted. Requires HUD to make a good faith effort to identify all households eligible for DVP assistance not currently receiving assistance and notify them or their rights for DVP assistance or their right, if available, to return to their previous assisted unit.


TITLE IV. DAMAGES ARISING FROM FEMA ACTIONS.

Section 401. Authorization of Appropriations to Reimburse Landlords for Damages Due to FEMA Management of City Lease Program. Authorizes appropriations for HUD to reimburse landlords from actual, documented damages incurred by such landlord as a result of FEMA’s abrogation of commitments to reimburse communities for leases entered into under the Section 403 program.


TITLE V. FHA SINGLE FAMILY HOUSING.

Section 501. Treatment of Non-Conveyable Properties. Prohibits HUD from denying conveyance of title and full payment of insurance benefits under FHA insured 1- to 4-unit properties on the basis of the condition of the property or a on failure to repair the property, as long as the mortgagee or servicer did not fail to provide hazard or flood insurance as required. This requirement addresses problems in HUD payment claims for properties for which title may not be conveyable.


TITLE VI. FAIR HOUSING ENFORCEMENT.

Section 601. Fair Housing Initiatives Program. Authorizes such sums as may be necessary, and no less than $5 million a year in FY 2008 and 2009 for fair housing activities in areas affected by Hurricanes Katrina and Rita.


TITLE VII. IMPROVED DISTRUBTION OF FEDERAL HURRICANE HOUSING FUNDS FOR HURRICANE RELIEF.

Section 701. GAO Study of Improved Distribution of Federal Housing Funds For Hurricane Relief. Requires a GAO study and report, within 6 months of bill enactment, to examine methods of improving the distribution of Federal housing funds to assist states covered by this Act with recovery from hurricanes.


TITLE VII. COMMENDING AMERICANS FOR THEIR REBUILDING EFFORTS.

Section 801. Commending Americans. Congressional Finding commending the actions and efforts by individuals and organizations that contributed to the hurricane recovery effort, and recognizing that the rebuilding of the Gulf Coast region rests on private individuals and community spirit. Identifies a number of such efforts and organizations.