[Weekly Compilation of Presidential Documents Volume 30, Number 31 (Monday, August 8, 1994)]
[Pages 1605-1607]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
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 is 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.

[[Page 1606]]

[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 Transportation 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 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

[[Page 1607]]

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 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.