[House Report 109-607]
[From the U.S. Government Publishing Office]
109th Congress Rept. 109-607
HOUSE OF REPRESENTATIVES
2d Session Part 1
======================================================================
NATURAL DISASTER HOUSING REFORM ACT OF 2006
_______
July 28, 2006.--Ordered to be printed
_______
Mr. Oxley, from the Committee on Financial Services, submitted the
following
R E P O R T
[To accompany H.R. 5393]
[Including cost estimate of the Congressional Budget Office]
The Committee on Financial Services, to whom was referred the
bill (H.R. 5393) to provide for the Department of Housing and
Urban Development to coordinate Federal housing assistance
efforts in the case of disasters resulting in long-term housing
needs, having considered the same, report favorably thereon
without amendment and recommend that the bill do pass.
CONTENTS
Page
Purpose and Summary.............................................. 1
Background and Need for Legislation.............................. 2
Hearings......................................................... 3
Committee Consideration.......................................... 3
Committee Votes.................................................. 3
Committee Oversight Findings..................................... 4
Performance Goals and Objectives................................. 4
New Budget Authority, Entitlement Authority, and Tax Expenditures 4
Committee Cost Estimate.......................................... 4
Congressional Budget Office Estimate............................. 4
Federal Mandates Statement....................................... 6
Advisory Committee Statement..................................... 6
Constitutional Authority Statement............................... 7
Applicability to Legislative Branch.............................. 7
Section-by-Section Analysis of the Legislation................... 7
Changes in Existing Law Made by the Bill, as Reported............ 8
Purpose and Summary
H.R. 5393, the ``Natural Disaster Housing Reform Act of
2006'' has two main functions: to designate the Department of
Housing and Urban Development (HUD) as the lead Federal agency
in natural disasters (subject to a Stafford Act declaration)
where long-term housing needs exist and to make changes to the
Stafford Act to facilitate post-Katrina recovery.
H.R. 5393 would allow, after a Presidential disaster
declaration under the Stafford Act, a governor to request that
the President find a long-term housing response. Upon making a
finding that disaster victims may be displaced from their
residences for more than 30 days, the President may designate
HUD as the lead agency to provide housing assistance to
disaster victims. Housing assistance is broadly defined in
order to provide HUD a comprehensive array of options to meet
long-term housing needs. This flexibility will offer
significant improvements to existing law that sharply limits
housing options for disaster victims. While HUD is the lead
agency, DHS primacy in the management of natural disaster
response is retained.
The legislation also amends the Stafford Act in the
following ways:
--Allows a disaster victim to reject an offer for a travel
trailer without being denied other forms of housing assistance.
--Requires that a disaster victim be notified before a
travel trailer is delivered to or placed on their property.
--Allows a disaster victim to contribute their own funds in
order to meet cost-effectiveness criteria for temporary housing
other than a travel trailer.
--Authorizes the use of ``Katrina Cottages'', a form of
modular housing.
--Limits the concentration of trailers on a site to no more
than 3 to avoid the creation of FEMA trailer parks.
--Requires Federal, state and local governments to create
evacuation plans for disaster victims occupying FEMA trailers
in the event of an impending disaster.
--Authorizes DHS/FEMA to pay security deposits, utility
fees and make minor repairs to rental units to make them fit
for occupation.
--Authorizes the placement of modular and manufactured
housing in special flood hazard areas.
Background and Need for Legislation
Hurricane Katrina and the floods accompanying the storm
destroyed or rendered uninhabitable more than 300,000
residences and caused $96 billion in estimated damage to the
Gulf Coast region, making it the most costly natural disaster
in the nation's history. The scale and scope of the event
almost immediately overwhelmed natural disaster response
mechanisms at all levels of government. The housing crisis was
compounded by limitations in current law. One of the immediate
crises to quickly escalate in severity related directly to the
substantial damage inflicted upon residential properties and
surrounding infrastructure. Acting through mechanisms available
to the Federal government, displaced residents were housed in
emergency shelters, on cruise ships and in hotel rooms.
According to FEMA data, these arrangements remained in force
for several months at a cost of more than $4 billion.
As recovery began its slow start, the government, again
acting through existing authority, began an aggressive campaign
to purchase temporary housing in the form of travel trailers.
According to FEMA data, more than 122,000 mobile home units
were purchased for the purpose of housing storm victims with a
cost to the government to purchase these units at approximately
$7.58 billion. Follow-on costs required to site and inspect
these units resulted in an average per unit cost of $70,000,
culminating in approximately at the very least $12.58 billion
in expenses related to temporary housing.
In response to the multiple levels of failure to respond to
the storm and its aftermath, the Administration conducted a
review of government performance across all areas of
responsibility, including the provision of disaster housing
resources. The Administration found that ``the Departments of
Veterans Affairs (VA), Housing and Urban Development (HUD), and
Agriculture (USDA) also offered thousands of housing units
nationwide to FEMA for temporary assignment to evacuees. FEMA
officials stated that the need to negotiate conditional
requirements in some cases prevented them from accepting some
Federal agencies' offers of housing resources. Most of the
thousands of housing units made available by other Federal
agencies were not offered to evacuees and were never used.''
Moreover, the Administration found that despite offers from
the Departments of Veterans Affairs (VA), Housing and Urban
Development (HUD) and Agriculture (USDA) as well as the private
sector to provide thousands of housing units nationwide, FEMA
focused its housing efforts on cruise ships and trailers, which
were expensive. HUD, with extensive expertise and perspective
on large-scale housing challenges and its nation-wide
relationships with State public housing authorities, was not
substantially engaged by FEMA in the housing process until late
in the effort. FEMA's temporary and long-term housing efforts
also suffered from the failure to pre-identify workable sites
and available land and the inability to take advantage of
housing units available with other Federal agencies.
Such findings led to an Administration recommendation that
HUD be designated as lead Federal agency for the provision of
more flexible and cost effective housing assistance in the
event of a natural disaster. Further, the Administration
acknowledged the need to emphasize locating independent housing
as a means of utilizing existing and available housing
resources and limiting the use of travel trailers and mobile
homes.
Hearings
No hearings were held on H.R. 5393 during the 109th
Congress.
Committee Consideration
The Committee on Financial Services met in open session on
June 14, 2006, and ordered reported H.R. 5393, the Natural
Disaster Housing Reform Act of 2006, to the House by a voice
vote.
Committee Votes
Clause 3(b) of rule XIII of the Rules of the House of
Representatives requires the Committee to list the record votes
on the motion to report legislation and amendments thereto. No
record votes were taken with in conjunction with the
consideration of this legislation. A motion by Mr. Oxley to
report the bill to the House with a favorable recommendation
was agreed to by a voice vote. During the consideration of this
bill, no amendments were considered.
Committee Oversight Findings
Pursuant to clause 3(c)(1) of rule XIII of the Rules of the
House of Representatives, the Committee has held hearings and
made findings that are reflected in this report.
Performance Goals and Objectives
Pursuant to clause 3(c)(4) of rule XIII of the Rules of the
House of Representatives, the Committee establishes the
following performance related goals and objectives for this
legislation:
H.R. 5393, the ``Natural Disaster Housing Reform Act of
2006'' has two main functions: to designate the Department of
Housing and Urban Development (HUD) as the lead Federal agency
in natural disasters (subject to a Stafford Act declaration)
where long-term housing needs exist and to make changes to the
Stafford Act to facilitate post-Katrina recovery. These changes
will offer significant improvements to existing law that
sharply limits housing options for disaster victims.
New Budget Authority, Entitlement Authority, and Tax Expenditures
In compliance with clause 3(c)(2) of rule XIII of the Rules
of the House of Representatives, the Committee adopts as its
own the estimate of new budget authority, entitlement
authority, or tax expenditures or revenues contained in the
cost estimate prepared by the Director of the Congressional
Budget Office pursuant to section 402 of the Congressional
Budget Act.
Committee Cost Estimate
The Committee adopts as its own the cost estimate prepared
by the Director of the Congressional Budget Office pursuant to
section 402 of the Congressional Budget Act of 1974.
Congressional Budget Office Estimate
Pursuant to clause 3(c)(3) of rule XIII of the Rules of the
House of Representatives, the following is the cost estimate
provided by the Congressional Budget Office pursuant to section
402 of the Congressional Budget Act of 1974:
July 28, 2006.
Hon. Michael G. Oxley,
Chairman, Committee on Financial Services,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 5393, the Natural
Disaster Housing Reform Act of 2006.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Julie
Middleton.
Sincerely,
Donald B. Marron,
Acting Director.
Enclosure.
H.R. 5393--Natural Disaster Housing Reform Act of 2006
Summary: H.R. 5393 would make the Department of Housing and
Urban Development (HUD) the lead agency to distribute housing
assistance following a major disaster if the area affected by
the disaster will need long-term housing assistance of 30 days
or more. Under the bill, HUD would be responsible for providing
financial assistance, temporary or permanent housing units,
assistance for home repair, and technical assistance following
major disasters.
Assuming appropriation of the necessary funds, CBO
estimates that implementing H.R. 5393 would cost $9 million
over the 2007-2011 period, mostly for new planning activities
and additional staff at these agencies. CBO expects that there
would be no significant change in the cost of providing housing
assistance following a major disaster under this bill because
the federal agency administering housing benefits would change,
but the benefits available to households would not be changed.
Enacting this bill would not affect direct spending or
revenues.
H.R. 5393 contains an intergovernmental mandate as defined
in the Unfunded Mandates Reform Act (UMRA) because it would
authorize the Secretary of HUD to preempt state and local
regulation of flood plains. CBO estimates that state and local
governments would incur little, if any, direct costs as a
result of that preemption; therefore, the annual threshold
established in UMRA would not be exceeded ($64 million in 2006,
adjusted annually for inflation). The bill contains no new
private-sector mandates as defined in UMRA.
Estimated cost to the Federal Government: The estimated
budgetary impact of H.R. 5393 is shown in the following table.
The costs of this legislation fall within budget function 450
(community and regional development).
------------------------------------------------------------------------
By fiscal year, in millions of
dollars--
---------------------------------------
2007 2008 2009 2010 2011
------------------------------------------------------------------------
CHANGES IN SPENDING SUBJECT TO APPROPRIATION
Estimated Authorization Level... 2 2 2 2 2
Estimated Outlays............... 1 2 2 2 2
------------------------------------------------------------------------
Basis of estimate: For this estimate, CBO assumes that H.R.
5393 will be enacted near the end of 2006 and that the
necessary amounts will be appropriated for each year. Estimates
of outlays are based on historical spending patterns for this
activity. Assuming appropriation of the necessary funds, CBO
estimates that implementing H.R. 5393 would cost $9 million
over the 2007-2011 period.
Under current law, the Federal Emergency Management Agency
(FEMA) provides financial and other assistance after a disaster
through the Individuals and Households Program (IHP). The IHP
provides up to $27,200 in financial help and housing
assistance, including temporary housing and repair and
replacement of housing, as well as other assistance following a
major disaster. Households can receive IHP assistance for up to
18 months. Under current law, HUD assists FEMA with the
disaster housing assistance program.
Under H.R. 5393, FEMA would continue to manage the housing
assistance program for a period of up to 29 days. If assistance
is needed after 29 days, HUD would become the primary federal
agency administering the housing assistance program in
conjunction with FEMA. For this estimate, CBO estimates that
HUD would need to increase the number of staff working in its
disaster housing program at a cost of less than $500,000 a
year.
In addition, the bill would require FEMA to develop
evacuation plans for areas where a disaster has been declared,
and FEMA is providing assistance under IHP. FEMA would be
required to maintain the plans for 18 months beginning on the
date the disaster is declared. Based on information from FEMA,
CBO estimates that developing evacuation plans for the 40 to 50
disasters that are typically declared each year would cost from
$1 million to $2 million a year.
Finally, the bill would direct FEMA, when practical, to
site temporary manufactured housing units used to provide
emergency housing assistance on individual parcels of property
and to limit the number of units that could be placed on each
parcel to three. This provision could make citing temporary
housing more costly than establishing large concentrations of
emerging manufactured housing limits. CBO cannot predict
whether FEMA would find it practicable to locate temporary
housing in this way, nor whether any additional costs would be
significant.
Estimated impact on State, local, and tribal governments:
H.R. 5393 contains an intergovernmental mandate as defined in
UMRA because it would authorize the Secretary of HUD to preempt
state and local regulation of flood plains. Under current
federal regulations, mobile homes or readily fabricated
dwellings, provided by the federal government in response to a
disaster, may not be placed in a flood zone if such placement
is inconsistent with the National Flood Insurance Program or
more restrictive standards of state and local governments. This
bill would preempt those more restrictive standards by allowing
the Director of FEMA to locate permanent, semi-permanent, or
temporary housing in those flood zones, regardless of federal,
state, or local regulations that prohibit such activity. CBO
estimates that state and local governments would incur little,
if any, direct costs as a result of that preemption; therefore,
the annual threshold established in UMRA would not be exceeded
($64 million in 2006, adjusted annually for inflation).
Estimated impact on the private sector: This bill contains
no new private-sector mandates as defined in UMRA.
Estimate prepared by: Federal Costs: Julie Middleton.
Impact on State, Local, and Tribal Governments: Melissa
Merrell. Impact on the Private Sector: Fatimot Ladipo.
Estimate approved by: Peter H. Fontaine, Deputy Assistant
Director for Budget Analysis.
Federal Mandates Statement
The Committee adopts as its own the estimate of Federal
mandates prepared by the Director of the Congressional Budget
Office pursuant to section 423 of the Unfunded Mandates Reform
Act.
Advisory Committee Statement
No advisory committees within the meaning of section 5(b)
of the Federal Advisory Committee Act were created by this
legislation.
Constitutional Authority Statement
Pursuant to clause 3(d)(1) of rule XIII of the Rules of the
House of Representatives, the Committee finds that the
Constitutional Authority of Congress to enact this legislation
is provided by Article 1, section 8, clause 1 (relating to the
general welfare of the United States) and clause 3 (relating to
the power to regulate interstate commerce).
Applicability to Legislative Branch
The Committee finds that the legislation does not relate to
the terms and conditions of employment or access to public
services or accommodations within the meaning of section
102(b)(3) of the Congressional Accountability Act.
Section-by-Section Analysis of the Legislation
Section 1. Short title
This section establishes the short title of the bill, the
``Natural Disaster Housing Reform Act of 2006.''
Section 2. HUD as lead agency in cases of disasters resulting in long-
term housing needs
This section provides that HUD will be designated as lead
Federal agency in those instances where a natural disaster
results in long-term housing needs. HUD would be required to
consult with DHS and FEMA in the execution of these duties and
will staff, train and equip its headquarters, regional, field
and area offices to execute these duties. The section also
broadly defines housing assistance to include financial
assistance, provision of transitional, temporary and permanent
housing units, as well as assistance for the repair,
replacement and construction of housing.
This section also outlines the process for determining if
long-term housing needs exists is as follows: Governor assesses
damage to housing stock, makes a finding that individuals and
families will be displaced from primary residences for a period
of more than 30 days and makes a request to the President for
long-term housing assistance; the President assesses housing
needs in the disaster area (or any subdivisions of a disaster
area) and issues a determination with regard to the Governor's
request; and the President will provide any long-term housing
assistance exclusively through HUD, however the DHS/FEMA will
retain their primacy in coordinating the response to natural
disasters.
Section 3. Federal assistance to individual households
This section authorizes the use of modular housing in those
instances where it is cost-effective or no more expensive to do
so. The section provides that individuals and households must
be contacted prior to being provided manufactured housing
assistance and if such assistance is rejected, will remain
eligible for other forms of disaster housing assistance.
Individuals may also contribute from their own funds to make
modular housing a cost-effective option for the Federal
government.
The section also sets forth the authority for DHS/FEMA to
pay security deposits, utility fees and make minor repairs to
rental units to make them fit for occupation. The section
authorizes the use of semi-permanent housing as a form of
disaster housing assistance to individuals and families,
authorizes the placement of modular and manufactured housing in
special flood hazard areas, discourages the creation of trailer
parks or trailer cities as a form of disaster housing
assistance and requires DHS/FEMA, states and communities to
create and maintain disaster evacuation plans for individuals
and families receiving disaster housing assistance.
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italic, existing law in which no change is
proposed is shown in roman):
SECTION 408 OF THE ROBERT T. STAFFORD DISASTER RELIEF AND EMERGENCY
ASSISTANCE ACT
SEC. 408. FEDERAL ASSISTANCE TO INDIVIDUALS AND HOUSEHOLDS.
(a) * * *
(b) Housing Assistance.--
(1) * * *
(2) Determination of areas for which disaster results
in long-term housing needs.--
(A) State request.--After the occurrence and
declaration of a major disaster, the Governor
of a State containing any area that is subject
to the declaration by the President of such
major disaster may request the President to
determine, for all or any part of such area in
the State, that the disaster will result in
long-term housing needs.
(B) Standard.--Upon a request pursuant to
subparagraph (A), the President shall determine
whether to grant such request. The President
shall grant such a request and determine that
the major disaster will result in long-term
housing needs with respect to an area if the
President finds that the disaster will displace
individuals or households in the area from
their predisaster primary residences, or will
render such predisaster primary residences in
the area uninhabitable, for a period of 30 days
or more.
[(2)] (3) Determination of appropriate types of
assistance.--
(A) * * *
* * * * * * *
(C) Manufactured modular housing.--In making
any determination of cost effectiveness under
subparagraph (A), the President shall consider
whether or not manufactured modular housing can
be provided to an individual or household at a
cost to the Government that is less than the
same cost necessary to provide other readily
fabricated dwellings.
(4) HUD administration.--In accordance with section 2
of the Natural Disaster Housing Reform Act of 2006, in
the case of any area for which any major disaster is
determined, pursuant to paragraph (2), to result in
long-term housing needs, the President shall carry out
the functions under this section relating to housing
assistance, including this subsection and subsections
(c) and (d), acting through the Secretary of Housing
and Urban Development.
(5) Consent of owner.--
(A) In general.--Notwithstanding paragraph
(2), the President shall seek the consent of
each individual or household prior to providing
such individual or household with manufactured
modular housing assistance.
(B) Rejection of manufactured modular housing
assistance.--If an individual or household does
not provide consent under subparagraph (A),
such individual or household shall remain
eligible for any other assistance available
under this section.
(6) Owner contribution.--Nothing in this section
shall be construed to prevent an individual or
household from contributing, in addition to any
assistance provided under this section, such sums as
are necessary in order to obtain manufactured modular
housing that is of greater size or quality than that
provided by the President under this section.
(c) Types of Housing Assistance.--
(1) Temporary housing.--
(A) Financial assistance.--
(i) * * *
(ii) Amount.--The amount of
assistance under clause (i) shall be
based on the fair market rent for the
accommodation provided plus the amount
of any security deposit for the
accomodation, the amount of any utility
fees associated with the accomodation,
and the cost of any transportation,
utility hookups, or unit installation
not provided directly by the President.
* * * * * * *
(2) Repairs.--
(A) In general.--The President may provide
financial assistance for--
[(i)] (i)(I) the repair of owner-
occupied private residences, utilities,
and residential infrastructure (such as
a private access route) damaged by a
major disaster to a safe and sanitary
living or functioning condition; and
[(ii)] (II) eligible hazard
mitigation measures that reduce the
likelihood of future damage to such
residences, utilities, or
infrastructure.
(ii) the repair, to a safe and
sanitary living or functioning
condition, of existing rental units
that, upon such repair, will be used as
alternate housing accomodations for
individuals or households described in
paragraph (1).
(B) Relationship to other assistance.--A
recipient of assistance provided under [this
paragraph] subparagraph (A)(i) shall not be
required to show that the assistance can not be
met through other means, except insurance
proceeds.
(C) Maximum amount of assistance.--The amount
of assistance provided to a household under
[this paragraph] subparagraph (A)(i) shall not
exceed $5,000, as adjusted annually to reflect
changes in the Consumer Price Index for All
Urban Consumers published by the Department of
Labor.
* * * * * * *
(4) Permanent or semi-permanent housing
construction.--The President may provide financial
assistance or direct assistance to individuals or
households to construct permanent or semi-permanent
housing [in insular areas] in--
(A) insular areas outside the continental
United States and in other remote locations in
cases in which--
[(A)] (i) no alternative housing
resources are available; and
[(B)] (ii) the types of temporary
housing assistance described in
paragraph (1) are unavailable,
infeasible, or not cost-effective[.];
and
(B) any area in which the President declared
a major disaster or emergency in connection
with Hurricane Katrina of 2005 during the
period beginning on August 28, 2005, and ending
on December 31, 2007.
(d) Terms and Conditions Relating to Housing Assistance.--
(1) Sites.--
(A) * * *
* * * * * * *
(C) Sites located in a floodplain.--
Notwithstanding any other provision of law,
including section 9 of title 44, Code of
Federal Regulations (or any corresponding
similar regulation or ruling), any permanent,
semi-permanent, or temporary housing provided
under this section, including any readily
fabricated dwelling, manufactured housing, or
manufactured modular housing, may be located in
any area identified by the Director as an area
having special flood hazards under section 102
of the Flood Disaster Protection Act of 1973
(42 U.S.C. 4012a)).
(D) Individual sites for manufactured modular
housing.--Manufactured modular housing made
available under this section--
(i) shall, whenever practicable, be
located on a site that is a discrete
and separate parcel of land; and
(ii) may not be located on a site
that--
(I) is managed by the
Director; and
(II) contains 3 or more other
manufactured modular housing
units.
* * * * * * *
(j) Evacuation Plans.--The Director, in consultation with the
Governor of each State and the heads of such units of local
government as the Director may determine, shall develop and
maintain detailed and comprehensive mass evacuation plans for
individuals or households receiving assistance under this
section for the 18-month period beginning on the date of the
declaration of the disaster for which such assistance is
provided.