[StBernard] House panel on housing to grill Powell

[Westley Annis]

House panel on housing to grill Powell

Baker wants answers for bill’s rejection

By GERARD SHIELDS
Advocate Washington bureau 
Published: Mar 9, 2006 

WASHINGTON — President Bush’s hand-picked federal point man for hurricane
recovery will walk into the legislative lion’s den today when he goes before
a House subcommittee on housing.

The appearance of Donald Powell, federal coordinator for Gulf Coast
rebuilding, comes as plans to rebuild more than 200,000 damaged homes in
Louisiana appear to be in limbo.

Powell will be going before a committee that includes U.S. Rep. Richard
Baker, R-Baton Rouge. Powell and the White House rejected Baker’s housing
plan to use at least $20 billion in treasury bonds to buy damaged property
for redevelopment.

Powell can expect to receive some pointed questions in the hearing. The full
House Financial Service Committee approved the Baker bill in December, 50-9.

“I do expect the subject of the hearing to be why the administration has
chosen not to support the bill,” Baker said.

Instead, Gov. Kathleen Blanco and her advisory panel, the Louisiana Recovery
Authority, accepted a $4.2 billion Community Development Block Grant housing
plan offered by Bush. Combined with previous CDBG funds, the Blanco housing
proposal calls for $8.25 billion to be used for damaged owner-occupied homes
or affordable rental property.

“Assuming we get the CDBG money, that will allow us to accomplish the needs
of the Baker bill,” said Walter Isaacson, authority vice chairman.

But earlier this week, the House Appropriation Committee stripped marking
the $4.2 billion solely for Louisiana, instead designating it as
housing-related community development funds. The committee does not earmark
disaster funds for a state, said John Scofield, committee spokesman.

“Disasters know no boundaries,” Scofield said.

Several states, including Texas, California and Mississippi are now calling
for treatment equal to Louisiana. In a visit to New Orleans Wednesday, Bush
called on Congress to give Louisiana the $4.2 billion he requested.

Bush’s visit encouraged Blanco’s office, but officials acknowledged being
worried about the status of the $4.2 billion.

“People are sick and tired of fighting and justifying that we need it,”
spokeswoman Denise Bottcher said.

Anything less than $4.2 billion won’t help in the recovery, Louisiana
leaders said.

“We’re very comfortable that we can make a case for this number,” said Andy
Kopplin, authority executive director. “We went house by house to arrive at
this number of $4.2 billion.”

U.S. Sen. Thad Cochran, R-Miss., said Wednesday he is inclined to grant
Bush’s request.

“We want to give the president what he wants,” said Cochran, chairman of the
Senate Appropriations Committee.

The original $4.2 billion was targeted to the Stafford Act. Baker and U.S.
Rep. William Jefferson, D-New Orleans, objected to the move, saying that
would allow the money to be used only for elevating homes or demolishing
them, not repairs.

As it stands before the House Appropriations Committee, the money is not
tied to the Stafford Act.

Bush and Powell have rejected the Baker proposal, saying they do not want
the government in the real estate business.

“We appreciate Congressman Baker’s leadership on important issues concerning
recovery of the Gulf,” said Powell spokeswoman D.J. Nordquist. “However, we,
the LRA, the governor and the mayor are all pleased with the monies the
president has requested as necessary to meet Louisiana’s remaining needs.”

Isaacson, too, said that, although the Baker bill appears shelved at this
point, Baker should be credited with moving the housing issue forward.

“The White House and everybody agreed that the Baker bill helped get us to
this position,” he said.

Baker, however, is not giving up, hoping to move the legislation through
Congress. The Senate recently held a hearing on the bill.

“It’s still my intention to go ahead,” Baker said.