[StBernard] Rep. Melancon Votes Again for Massive $6.4 Billion Hurricane Relief Bill

[Westley Annis]

	WASHINGTON, DC - U.S. Rep. Charlie Melancon voted again today in
support of the U.S. Troop Readiness, Veterans' Care, Katrina Recovery, and
Iraq Accountability Appropriations Act (H.R. 2206), commonly referred to as
the new Iraq/Katrina Supplemental Appropriations bill.  The final bill
provides $6.419 billion in hurricane recovery and relief funding for
Louisiana and other Gulf Coast states and waives the 10% local match
required for disaster recovery projects.  The President indicated today that
he would sign the Supplemental if it is also passed by the Senate.
	 
	"Louisianians have been crossing their fingers and hoping for this
hurricane recovery money for far too long," said Rep. Melancon.  "After
several attempts, it appears we finally have a bill that both Congress and
the President support, and help is on the way at last for the people of
south Louisiana still struggling to rebuild."
	 
	"The Emergency Supplemental provides over $6.4 billion in hurricane
recovery funding for the Gulf Coast, including $1.3 billion for levees in
south Louisiana and relief for our fishermen, schools, colleges and
universities, and local governments.  We are also removing a huge roadblock
to Louisiana's recovery:  the 10% local match required for disaster recovery
projects like rebuilding schools and removing debris.  This bill fully
waives the local match and takes a huge burden off of our cash-strapped
local governments that are struggling to rebuild."
	 
	Rep. Melancon continued, "I want to thank the House leadership for
staying true to their word that they would keep all of our hurricane
recovery needs in the final supplemental bill.  With their commitment and
support, today we are taking a huge step forward in our recovery in south
Louisiana.  I will keep working with the rest of our delegation to make sure
our most critical needs - hurricane recovery, hurricane protection, and
coastal restoration - all remain national priorities and we get the help we
deserve from our government." 
	 
	Among the hurricane recovery needs Rep. Melancon had called for that
are included in this latest version of the supplemental bill are: a waiver
of the 10% local match required for FEMA disaster recovery projects,
language allowing Hurricane Rita and Katrina community disaster loans to be
forgiven, direct disaster relief for Gulf Coast fishermen, $1.3 billion in
funding for construction of the levee protection system on both the east and
west bank in New Orleans and surrounding parishes, money for K-12 teacher
recruitment and higher education assistance, the extension of a federal
grant program for critically needed social services, and billions in funding
for FEMA disaster recovery grants. 
	 
	The bill also includes $99.5 billion to fund the wars in Iraq and
Afghanistan, which is over $4 billion more than the President requested. $3
billion is included for Mine Resistant Ambush Protected Vehicles, which have
specially designed bottoms that help deflect the force of roadside bombs,
the principal killer of U.S. forces in Iraq. An additional $5 billion is
also appropriated to ensure that returning troops and veterans receive the
health care that they have earned with their service. 
	 
	Finally, the bill includes provisions increasing the minimum wage by
$2.10 over two years, to $7.25 an hour.  It also includes a $4.8 billion
package of small business tax relief, which is fully offset.  
	 
	Specifically, the supplemental includes the following provisions and
funding to assist Louisiana and other Gulf Coast states with hurricane
recovery:
	 
	$110 Million for Fisheries Disaster Assistance.  This includes $85
million for fisheries disaster assistance programs, including the first
substantial direct relief for shrimpers since the 2005 storms.  It also
includes $24 million for scanning and mapping as well as debris removal in
Louisiana's traditional fishing grounds and $1 million to improve
forecasting for maritime navigation at high priority seaports along the
Gulf.
	 
	Waiver of Local Match for Disaster Recovery Projects.  The
supplemental includes language waiving for Katrina- and Rita-affected
communities provisions of the Robert T. Stafford Act that require localities
to match 10 percent of the cost for disaster recovery projects before the
remaining 90 percent is filled by the federal government.  This language
requires the federal government to pay 100% of the disaster recovery
projects, which include emergency sheltering, repair of public buildings,
debris removal, and assistance to individuals.  
	 
	Shortly after the House Katrina Working Group was formed in
February, Rep. Melancon joined Majority Whip Clyburn in introducing
legislation -- the Hurricane Katrina and Rita Federal Match Relief Act of
2007 -- to waive this local match requirement. FEMA has already provided
approximately $7.5 billion in Public Assistance grants to communities
affected by Katrina and Rita, and this number will continue to rise as the
recovery continues. Removing the state and local match for federal
assistance grants would allow Louisiana to invest an estimated additional
$1.2 billion in critical needs, such as repairing our police stations, fire
stations and other important infrastructure. The local match requirement has
been waived 32 times since 1985 when per capita rebuilding costs have been
excessive.  
	 
	$1.433 billion for East and West Bank Levee Protection in New
Orleans and Surrounding Parishes.   Rep. Melancon urged House appropriators
to include this additional levee money in the supplemental bill after he
learned that the Army Corps was facing a budget shortfall on critical south
Louisiana levee projects due to increased labor and material costs in the
region.  The President's request originally proposed taking money from other
hurricane protection projects in order to make up the shortfall, but Rep.
Melancon and House appropriators agreed that direct funding would better
ensure that all critical hurricane protection projects have enough money.
$1.3 billion of the funds will go to Louisiana to cover the identified
shortfalls in levee repair w! ork in New Orleans and the surrounding
parishes.  Another $25.3 million is specifically provided to the Southeast
Louisiana Urban Flood Control Project (SELA) for crucial flood control and
drainage projects in New Orleans and surrounding parishes.  An additional
$107.7 million is appropriated to Mississippi for hurricane storm damage
reduction, flood damage reduction and ecosystem restoration.
	 
	Community Disaster Loan Forgiveness (estimated value: $320 million).
Rep. Melancon asked House appropriators to add a provision to the
supplemental making Katrina- and Rita-affected communities eligible for
Community Disaster Loan forgiveness.  The loans were provided by the federal
government to hurricane-affected local governments immediately following
Katrina and Rita to help them continue daily operations, such as payroll for
law enforcement and emergency responders.  Many local governments do not
have the ability to repay this massive debt, as their tax bases were
devastated by the storms.  Rep. Melancon has argued that, in the past, CDLs
have been forgiven following many other major disasters, including Hurricane
Andrew and the September 11th! terrorist attacks.  The Stafford Act has
historically required forgiveness of such loans when independent audits
determine the fiscal recovery of affected local communities is insufficient
to repay the loans after a three-year grace period.  Congressional budgeters
estimated this loan forgiveness would relieve Katrina and Rita affected
local governments of $320 million in debt they don't have the tax base to
repay.
	 
	$4.1 Billion For the FEMA Disaster Relief Fund (DRF).  The DRF funds
FEMA disaster recovery grants, which are used for vital recovery projects
like repairing sewage and water treatment facilities; rebuilding public
buildings like schools, firehouses, and police departments; and hauling away
debris from the storm.  In Louisiana alone, there are over 23,000 of these
public assistance projects to repair and rebuild public buildings and
infrastructure.  
	 
	Extension Of FEMA Utility Subsidy Program For Essential Parish
Employees (estimated to be valued at $10 million). (identical to H.R. 858,
which Rep. Melancon introduced in early February).  Will extend for one more
year FEMA's authority to reimburse parish governments for the cost of paying
utility bills for essential government employees still working and living in
temporary housing (i.e., FEMA trailers).  Devastated parish governments have
used this program as an incentive to encourage essential employees, such as
law enforcement officers, to stay in the community and continue working for
the parish.
	 
	$30 Million For K-12 Education Recruitment Assistance And $30
Million For Higher Education Assistance.  This funding provision will
provide much-needed emergency funding to schools and institutes of higher
education in Louisiana and other hurricane-affected states along the Gulf
Coast.  The purposes and concept are similar to a longer-term recovery bill
Rep. Melancon joined House Education and Labor Committee Chairman George
Miller in introducing in early March, The Revitalizing New Orleans by
Attracting America's Leaders (RENEWAAL) Act of 2007.  The RENEWAAL Act
provides incentives to qualified teachers and principals that stay in or
return to hurricane-impacted public schools and commit to work there for at
least three years.  The bill will also a! ssist these educators with
relocation costs to move back, housing and student loan forgiveness. In
addition, higher education institutions that are still struggling with the
aftermath of Hurricanes Rita and Katrina would receive help in recruiting
and retaining faculty and students.   The funding in the emergency
supplemental will be used for the same purposes.
	 
	Extension Of Education Waiver. (identical to H.R. 1262, which Rep.
Melancon introduced in early March). This language will extend a federal
waiver for one more year - until September 30, 2008 - that gives school
districts impacted by Hurricanes Katrina and Rita more flexibility in
drawing down and utilizing federal money for recovery efforts.
Specifically, the waiver will allow schools to continue to use state money
for the 10% local match required by FEMA in order for them to be eligible
for the 90% federal reimbursement for recovery projects.  The bill will also
allow school districts to use federal funds appropriated by Congress in the
Defense/Emergency Supplemental Appropriations bill (H.R. 2863) to pay for
expenses state money would normally be used for, such as teachers' salaries
and school operational needs.  Last fall, Rep. Melancon was an original
co-sponsor of successful legislation that extended the waiver until
September 30th, 2007.  
	 
	$20 Million for Disaster Mitigation at NASA facilities along the
Gulf Coast.  The bill includes $20 million for disaster mitigation
activities at NASA facilities in the Gulf Coast region.  The bill also
allows NASA to use up to $48 million in previously appropriated funding to
replenish Shuttle/International Space Station programs, which NASA used to
pay for immediate repairs to NASA facilities after Hurricanes Katrina and
Rita.
	 
	Strengthens Tax Incentives For Building Affordable Rental Housing In
Hurricane-Affected Areas Of The Gulf Coast (estimated to be valued at $237
million).  The supplemental also strengthens tax incentives for building
affordable rental housing in hurricane-affected areas of the Gulf Coast.
Key provisions in the Katrina Housing Tax Relief Act of 2007, which Rep.
Melancon co-sponsored and spoke in support of when the House considered it
last month, were included in the supplemental:
	.        The GO Zone housing tax credits were extended for an
additional two years, making the deadline for units to be inhabited December
31, 2010 instead of the end of 2008.  At a hearing in March, the Ways and
Means Committee had learned that one of the key problems regarding housing
in the Gulf Coast region was that the 2008 deadline might not be met in some
hard-hit areas.   
	.        Language included preventing Community Development Block
Grants from being taken into account in determining whether a building is
federally subsidized under the low-income housing credit provisions of the
GO Zone Act. Federally subsidized properties receive a smaller credit than
those that are not subsidized, so this provision ensures that developers
could get the larger credit. This would apply to property built and
inhabited by December 31, 2010.

	*	Expanding access to low-income financing for home repairs
and reconstructions in hurricane-affected areas of the Gulf Coast.  Mortgage
Revenue Bonds are tax-exempt bonds that the state and local governments
issue through housing finance agencies to help fund low-interest mortgages
for low to moderate income, first time homebuyers.  MRB proceeds can also be
used to pay for rehabilitation of buildings over 20 years old so long as 50%
of the walls are retained.   This provision would help homeowners in the
Gulf Coast region by waiving the 20 year and existing walls rules to allow
buildings damaged by Katrina and Rita to qualify for rehabilitation using
MRB proceeds so long as the repair or re! construction is 25% or more of the
basis of the residence. This provision applies to financing provided before
the end of calendar year 2010. 

	 
	Housing Disaster Voucher Program Extension.  The Supplemental
includes a general provision extending the Disaster Voucher Program until
December 31, 2007.  The Disaster Voucher Program was created in the
Hurricane Katrina Supplemental in 2005 and was set to expire Sept. 30, 2007.
The Supplemental extends the program, but does not address funding, because
senior HUD officials have assured Congress that they will obligate any
remaining funding (approximately $80 million) by the expiration date of
Sept. 30, 2007.  The remaining funding will be obligated by Sept. 30, 2007
and the funds can be used until December 31, 2007.
	 
	Maintains Pre-Hurricane Allocation Levels for Section 8 Housing
Vouchers.  The U.S. Department of Housing and Urban Development Section 8
Housing program provides rent vouchers for low-income families.  Basing
Louisiana's 2007 allocations on the 2006 post-storm population numbers would
be disruptive to the affordable housing in Louisiana.  This provision will
hold Section 8 voucher allocations in hurricane-affected areas at pre-storm
levels to ensure that enough vouchers are available for displaced residents
that may be returning. 
	 
	Hurricane Housing Program Fungability Extension.  This provision
extends until December 30, 2007, a waiver allowing public housing
authorities in the most hurricane-impacted areas in Mississippi and
Louisiana the flexibility to combine separate funding streams (Section 8 and
Section 9) to assist tenants primarily in reconstruction and rehabilitation
efforts.
	 
	Social Services Block Grant Extension (estimated to be valued at
$150 million).   The $150 million in SSBG grants already appropriated will
be available for hurricane-affected areas along the Gulf Coast for two extra
years, until September 30, 2009.  SSBG funding provides critically needed
social services including programs for mental health, child welfare, and the
treatment of addictive disorders.  
	 
	$50 Million to Help State and Local Law Enforcement Curb Crime.
This funding is provided for local law enforcement initiatives in the Gulf
Coast region related to the aftermath of Hurricanes Katrina and Rita.
	 
	Extension of GO Zone Small Business Expensing (estimated to be
valued at $9 million).  The provision extends for one year (through December
31, 2008) increased expensing for qualified Section 179 GO Zone property in
hurricane affected parishes, including Plaquemines and St. Bernard.
Qualified property is personal property used in an active trade or business.
A business may currently expense $212,000, but the amount is decreased if a
business has bought more than $1.05 million in qualified property.  This
provision increases the expensing limit and phase-out level for 2007 to
$225,000 and $1.1 million, respectively, for property placed in service
after December 31, 2007 and before January 1, 2009.
	 
	$25 Million For Small Business Administration (SBA) Economic Injury
Disaster Loans.  Access to capital remains an impediment for the over
125,000 Gulf Coast businesses that were damaged or disrupted by Hurricanes
Katrina and Rita.  The bill provides $25 million to the Small Business
Administration for additional SBA Economic Injury Disaster Loans for Gulf
Coast businesses.  The proposal is estimated to have no revenue effect as it
comes from existing funds in the SBA Disaster Loan Account.
	 
	$35 Million for Transportation Rebuilding.  This bill includes $35
million in transit assistance for Katrina- and Rita-impacted communities.
Funds are available for either capital or operating costs including projects
like LA Swift.  It is a grant program to be administered by the Federal
Transit Authority.
	 
	$10 Million for Historic Preservation.  $10 million is appropriated
for historic preservation in the hurricane affected areas of Louisiana.  
	 
	$11 million for HUD and FEMA Inspector General offices, to increase
scrutiny of hurricane recovery dollars.
	 
	 
	-###-