Equity and Inclusion Campaign Summary: The Gulf Coast Multifamily and Assisted Housing Recovery Act

Problem: The Congressional Research Service estimated that 88,000 persons age 65 or older were displaced by Hurricane Katrina – of that group 45,000 were 75 or older. Furthermore, almost 15 percent of all displaced seniors had incomes below the poverty line. While recovery has primarily focused on restoring owner-occupied and rental housing, assisted housing for our elderly and disabled residents has not received a great deal of attention. In particular, 123 properties of Section 202 (elderly) and Section 811 (disabled) - 5,261 total units - were impacted by Hurricanes Katrina and Rita in Louisiana. As of February 2008, 602 of these units were still offline. Furthermore, for every unit of Section 202 housing, there are 10 eligible low-income seniors on the waiting list.

Solution: To address the immediate need for HUD-assisted housing in the Gulf Coast, the Landrieu-Cochran-Wicker “Gulf Coast Multifamily and Assisted Housing Recovery Act” would:

• Authorize $125 million for additional Section 202 (senior) housing and $75 million for additional Section 811 (disabled) housing
Note: This provision would create almost 1,500 new 202/811 units.

• Authorize $4 million to cover gaps in reconstruction costs for damaged Section 202 properties being rebuilt in Louisiana

• Require the U.S. Department of Housing & Urban Development (HUD) Secretary to adopt a budget-based rent increase policy for Sec. 202/811 properties in the Gulf Coast to help deal with post-disaster cost increases and expenses
Note: This provision would address the current problem where Gulf Coast Sec. 202/811 properties are facing cost increases not covered under the current HUD operating cost adjustment factor policy. HUD would be required to take a look at actual budgets for these properties and fund accordingly.

• Require a study on Gulf Coast project-based contracts cancelled by HUD after Katrina/Rita.

• Require HUD to maintain contracts for Section 8 project-based assistance in disaster areas until the date specified in the contract or not less than three months after the dwelling units are made habitable
Note: This provision would ensure there is no loss of project-based assistance contracts in the Gulf Coast.

• Require HUD to transfer Section 8 project based assistance to appropriate existing or planned projects
Note: This provision would address the problem where countless project-based developments are sitting vacant while other developments in the community are in need of such project-based assistance.

• Require HUD, not later than October 1, 2008, to develop a comprehensive housing disaster plan for Federally-assisted properties to ensure
Note: This ensures there will be no repeat of post-Katrina issues where countless 202/811 properties were offline for months with no clear plan for replacement housing for displaced residents.