[Congressional Record (Bound Edition), Volume 151 (2005), Part 20]
[Extensions of Remarks]
[Page 27885]
[From the U.S. Government Publishing Office, www.gpo.gov]




   INTRODUCTION OF MORTGAGE AND RENTAL ASSISTANCE REAUTHORIZATION ACT

                                 ______
                                 

                        HON. CAROLYN B. MALONEY

                              of new york

                    in the house of representatives

                       Thursday, December 8, 2005

  Mrs. MALONEY. Mr. Speaker, today Representatives Maxine Waters (D-
CA), Charlie Melancon (D-LA) and I introduced the Mortgage and Rental 
Assistance Reauthorization Act to give victims of Hurricane Katrina the 
same housing aid awarded to New Yorkers in the aftermath of 9/11.
  Once fully implemented, the Mortgage and Rental Assistance (MRA) 
program was one of the most useful FEMA programs following 9/11. This 
grant program provided direct mortgage or rent payments for individuals 
still living in their home, but were experiencing difficulties in 
making payments. When FEMA administered the program in New York, 
recipients were required to have a loss of income of at least 25 
percent to quality. Rent or mortgage payments lasted up to eighteen 
months. This program was particularly useful for people who lost their 
job as a result of 9/11 and could not afford to pay their rent or 
mortgage.
  Unfortunately, 9/11 was the last disaster for which this program was 
available. The Disaster Mitigation Act of 2000 eliminated this program 
because it was considered too costly and difficult to administer (the 
enactment date was 18 months and the attacks of 9/11 occurred after 
this act was signed into law, but before enactment). The Disaster 
Mitigation Act of 2000 merged temporary housing assistance with grants 
to individuals and families. This merge now limits the assistance FEMA 
is allowed to provide victims of disasters.
  On December 1, 2005, the three-month mortgage suspension on mortgages 
for victims of Katrina expired and many individuals are now faced with 
mortgage bills they are unable to afford. This week the Bush 
Administration announced a limited loan program to assist victims 
having difficulty paying their mortgage.
  This program was instrumental in stabilizing New York's economy after 
9/11, it is beyond me why we are now refusing to get the people of the 
Gulf Coast the very same aid we got in New York. The offering of loans 
to pay off loans unfairly straddle Katrina victims with more debt. When 
Congress debated converting reconstruction aid to Iraq from grants to 
loans, the Administration threatened a veto. Why should reconstruction 
of the Gulf Coast be any different?

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