[StBernard] Housing assistance for Gulf Coast hurricane victims extended for 18 months

[Westley Annis]

Housing assistance for Gulf Coast hurricane victims extended for 18 months;
but in March 2008 people in rental housing, travel trailer and mobile home
programs will pay a portion of the cost; people in FEMA trailers to be
allowed to purchase them

Temporary housing assistance programs for Gulf Coast hurricane victims have
been extended by 18 months until March 1, 2009, according to federal
Coordinator for Gulf Coast Rebuilding Donald E. Powell, U.S. Department of
Housing and Urban Development Secretary Alphonso Jackson and FEMA head R.
David Paulison.

HUD and FEMA are also working on a plan whereby HUD would take over
management of the rental housing program on behalf of FEMA beginning on
Sept. 1, 2007. GCR, HUD and FEMA are working on the mechanics of the new
arrangement and will consult with Congress on the most appropriate structure
for transferring management responsibilities.  

Also, in March 2008, individuals in both the rental housing and travel
trailer and mobile home programs will pay a portion of the cost, which will
begin at $50 per month and incrementally increase each month thereafter
until the program concludes on March 1, 2009.

In addition, beginning immediately, FEMA will allow residents of its mobile
homes and travel trailers to purchase their dwellings at a fair and
equitable price. Seniors and the disabled whose primary source of income is
Supplemental Security Income (SSI) or other fixed income that make them
eligible to receive assistance under existing HUD programs will be
protected. HUD will actively work to transition these individuals into its
properties or programs for seniors and the disabled.

"We understand the importance of minimizing uncertainty for Gulf Coast
residents who have endured this unprecedented tragedy," Powell said.  "This
coordinated, 18-month extension will provide stability to residents while
providing effective incentives and assistance to help them transition into
long-term housing solutions." 

"The overwhelming scale of this human tragedy has meant families have been
displaced for an unprecedented period of time.  Such a reality calls for an
unprecedented, compassionate response," said Secretary Jackson. "As disaster
housing needs continue and move into a longer-term program, HUD is working
to ensure the affected families will continue to get the housing assistance
they need as well as the individual services that will help them rebuild
their lives."

"This extension allows FEMA and our partners to be responsive in developing
innovative, flexible and compassionate solutions to help disaster victims
get back on their feet," said FEMA's Paulison. "While we are proud of the
tremendous progress we've made, we won't be satisfied until every disaster
victim has successfully navigated the road to recovery."

 

Under the proposed parameters of the FEMA-HUD Disaster Housing Assistance
Program (DHAP), local public housing agencies (PHAs) would administer the
program under Stafford Act. FEMA would provide resources to HUD to extend
rental assistance to up to 40,000 hurricane-affected families who are
already living in rental units paid for by FEMA.  Families are expected to
experience a seamless transition under the new program.  

Between now and Sept. 1, 2007, FEMA plans to provide HUD with a list of its
current renters so that HUD can assume their rental assistance.  Under the
proposed program, beginning on March 1, 2008, HUD would use a transitional
approach to help families continue along the path to self-sufficiency. For
example, starting on that date, the level of assistance would be reduced by
$50 per month successively, with the goal of leading the family closer to
complete housing independence at the end of the 18-month extension.

For example, if a family has an $850 rental apartment, they would be
required to contribute $50 toward their rent starting in March 2008, which
would rise to $100 in April 2008; $150 in May 2008, etc.  In addition,
beginning on March 1, 2008, families in FEMA travel trailers and mobile
homes would begin to pay a share of the monthly costs, which will also
incrementally increase until the program reaches its conclusion on March 1,
2009.  

To the extent allowable by law, seniors and the disabled who qualify would
continue to receive the full subsidy required to pay their rent (either in
an apartment or in travel trailers and mobile homes) throughout the duration
of the extended 18-month program.

FEMA will continue to manage its mobile home and travel trailer operations
throughout the Gulf, and also will continue to engage HUD, as well as state
and local officials, on a collaborative effort to identify alternative
housing solutions for those in mobile home and travel trailer residents.  As
with the HUD program, beginning on March 1, 2008, individuals in the
trailers and mobile homes will pay a small portion of the cost, beginning at
$50 per month; FEMA will increase the amount of rent charged incrementally
on the travel trailers and mobile homes until the family reaches its ability
to pay, according to a FEMA formula based on income.  

Beginning immediately, FEMA is setting up a process to allow victims of
Katrina and Rita who have been living in travel trailers and mobile homes to
purchase those units at a reduced cost. The adjusted fair market cost will
take into account FEMA's monthly expenses for maintaining the units and its
standard cost for deactivating the units.  This initiative will allow those
residents who have been unable to move on to purchase their own units, thus
facilitating their return to self-sufficiency.