    [Public Papers of the Presidents of the United States: William J. Clinton (1994, Book II)]
    [August 2, 1994]
    [Pages 1409-1411]
    [From the U.S. Government Publishing Office www.gpo.gov]

    Teleconference Remarks Announcing Additional California Earthquake
    Assistance
    August 2, 1994

        Mayor Richard Riordan. Mr. President, we'd like to thank you for the
    very quick response you've given to our letter of last Thursday and the
    extraordinary effort that your A-plus team is still doing for our great
    city.
        Mayor Judy Abdo. We also want to say how grateful we are for the
    people who have worked so hard together to find these solutions. And
    Santa Monica is particularly grateful for the quick and decisive
    response that you've made.
        The President. Well, I just want to say that it's been a privilege
    for all of us here in Washington to work with you to help get southern
    California back on its feet again.
        I visited Los Angeles a couple of days after the earthquake and saw
    that destruction, and I was terribly moved by it. And now, in some ways,
    it's more moving to hear about all the progress that's been made in just
    6 months. I think the people of southern California have certainly
    showed a great deal of courage and resilience, and you have all shown
    strong leadership. And I very much appreciate that.

    [Mayor Riordan and Mayor Abdo discussed the extensive damage to housing
    and stated that Federal assistance was critical to the recovery effort
    in that area.]

        The President. What about the ghost towns in the areas, both in Los
    Angeles and Santa Monica? That's still a problem, isn't it?
        Senator Dianne Feinstein. Well, Mr. President, may I say something
    here?
        The President. Sure.
        Senator Feinstein. Oh, I think it was--James Lee, was it a month ago
    we went to them, the ghost towns, with Richard Alarcon?
        The President. I don't think he's on the phone.
        Senator Feinstein. Oh, he's not on the line. Richard, do you
    remember when it was?
        The President. I know you toured the areas.

    [Senator Feinstein discussed damaged and abandoned apartment buildings
    and expressed appreciation for increased HUD funding to alleviate the
    problem.]

        The President. Well, one of the things that we found out and that
    Henry Cisneros talked to me a lot about was that years after the natural
    disasters that struck the Bay Area in northern California and in
    southern Florida, there are still these ghost towns, and communities are
    still suffering. Now it's more expensive to fix it than if we'd done it
    right away.
        And so, I thought maybe what I would do is let Secretary Cisneros
    just talk a little bit about what he's been working with you, Senator
    Feinstein, Senator Boxer, and the mayors and the other members of your
    delegation on.

    [Secretary of Housing and Urban Development Henry Cisneros explained
    that $225 million will be made available through the Community
    Development Block Grant Program to help rebuild abandoned
    neighborhoods.]

        The President. Thank you, Henry. I am really pleased with the idea
    that you came up with, and I identify with the solution a lot because
    it's a source of funds I'm familiar with and

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    something I've used myself in my former life when I was a Governor.
        Today I sent the formal request to Congress to provide $225 million
    in additional disaster assistance for the Los Angeles area, $200 million
    to Los Angeles, $25 million to Santa Monica, as a downpayment on our
    partnerships with the cities to solve this ghost town problem. This goes
    beyond the typical Federal disaster response, and it's possible frankly
    because we've been able to reallocate some other disaster funds. It
    doesn't meet the total need, and I know we'll have to have full
    cooperation and participation from local governments in the States as we
    go through this. But it is a very good beginning, and it gives you a
    chance to begin to get rid of this problem.
        Mayor?

    [Mayor Riordan thanked the President for the extra funds and the
    flexibility to direct the money where it is most needed. Mayor Abdo then
    stated that while Santa Monica does not have ghost neighborhoods, the
    money will be used to repair abandoned buildings.]

        The President. Senator Feinstein?
        Senator Feinstein. Mr. President, I want to just ask Judy one
    question. Judy, do you know how many units that $25 million will cover?

    [Mayor Abdo explained that they will not know how many units the money
    will cover until they find out how much money will be needed after the
    SBA loans have been distributed. Senator Feinstein then thanked
    Secretary Cisneros for his efforts.]

        Secretary Cisneros. Thank you very much, Senator.
        Senator Feinstein. And I'm going to miss a vote, so I'm going to
    have to sign off.
        The President. Thank you, Senator.
        Senator Feinstein. Thank you, Mr. President.
        The President. Well, I just wanted to make one final comment before
    we all sign off. Today we are marking the 6-month milestone in your
    recovery effort by releasing a report prepared by our Office of
    Management and Budget that describes what's been done so far. And I
    really want to thank again our FEMA Director, James Lee Witt, Secretary
    Pena, Erskine Bowles, our SBA Administrator, and of course, Henry
    Cisneros for all their hard work.
        So far we have identified $11.9 billion in Federal assistance to
    meet California's need after the earthquake. That's the largest amount
    ever provided to an individual disaster. And with the assistance,
    obviously, of both of you, Mayor Riordan, Mayor Abdo, and the hard work
    of your Senators and the California congressional delegation, Congress
    enacted that emergency relief package in record time.
        Our report shows now that record numbers of applications for
    assistance have been received. FEMA has accepted over 600,000
    registrations, which is twice the previous all-time high for Hurricane
    Hugo. The SBA has accepted over 200,000 disaster loan applications to
    repair homes and businesses, which is more than for the Midwest floods,
    Hurricane Andrew, the Loma Prieta earthquake, and Hurricane Hugo
    combined. And I know that Henry has signed over 12,600 leases providing
    homes to families who were displaced by the earthquake. So we've tried
    to be creative and flexible in our response.
        Secretary Pena's now-famous cost-plus-time contracting proposal led
    to the opening of damaged freeways in record time, faster than even I
    believed it could be done, and I'm an incurable optimist. And the SBA
    Administrator, Erskine Bowles, exercised his discretionary authority so
    that disaster loans went to larger numbers of major employers to retain
    communities. The Commerce Secretary developed new and innovative
    programs to help rebuild infrastructure and assist small businesses that
    don't otherwise qualify for Federal assistance. So we've tried to be
    quick and flexible and helpful.
        And I just want to say again, looking back on the last 6 months, I
    feel good about what all of us have done together. But I know the job is
    not finished. And I hope this announcement today will give you, the
    leaders, as well as the citizens of southern California assurances
    that--my personal pledge and our entire administration--we're still
    committed over the long haul to make sure that we get over the
    Northridge earthquake and we make it, over the long run, a net plus for
    the people of southern California because of the rebound.

    [The mayors expressed their appreciation to the President. Secretary
    Cisneros then discussed his

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    plans to visit Los Angeles, and the mayors thanked him also.]

        The President. Thank you very much. Goodbye.

    Note: The teleconference began at 4:46 p.m. The President spoke from the
    Oval Office at the White House. During the teleconference, Senator
    Feinstein referred to Richard Alarcon, member, Los Angeles City Council.