NAR Backs Legislation to Help Hurricane Katrina Evacuees

Business Wire, Sept 15, 2005

WASHINGTON -- The National Association of Realtors(R) has offered a list of legislative remedies that will help people who lost their homes due to Hurricane Katrina find housing and recover from the storm. NAR presented a series of short-term and long-term solutions to help America recover from the devastation of Hurricane Katrina in a statement for the record at today's hearing before the U.S. House Financial Services Committee Subcommittee on Housing and Community Opportunity.

"Realtors(R) have been opening their wallets and scouring their databases to locate all kinds of spaces that can be used to house evacuees from Hurricane Katrina," said NAR President Al Mansell of Salt Lake City. "Once the immediate short-term needs of the victims of Hurricane Katrina have been met, long-term solutions will be needed to rebuild the impacted areas. Federal assistance will be needed to encourage private sector growth and development."

Realtors(R) applaud Congress and the U.S. Department of Housing and Urban Development for their leadership and swift assistance in helping evacuees find housing. NAR urged Congress to work with HUD to waive program requirements for a variety of housing programs, such as Section 8 rental properties, on a temporary basis. NAR also encouraged Congress to consider some sort of safe harbor legislation to protect Good Samaritan property owners who are providing temporary housing to evacuees from normal occupancy requirements.

NAR strongly supports two flood insurance bills approved by the House of Representatives. Realtors(R) back the Flood Insurance Program Enhanced Borrowing Authority Act of 2005, H.R. 3669, which would temporarily increase the National Flood Insurance Program's (NFIP) borrowing authority to pay claims resulting from Hurricane Katrina, and the Flood Insurance Clarification Act, H.R. 804, which would exclude certain NFIP payments from consideration as income when determining eligibility under any income-tested program.

NAR also recommends that Congress consider two homeowners insurance bills -- the Homeowners Insurance Availability Act, H.R. 846, which would establish a federal reinsurance program for homeowners insurance, and the Policyholder Disaster Protection Act, H.R. 2668, which would allow insurance companies to create reserve funds from pre-tax dollars to pay claims from major natural disasters.

Realtors(R) immediately rallied to help victims of Hurricane Katrina find emergency shelter. The Realtors(R) Relief Foundation has collected over $3.4 million from more than 8,500 donors, including the $1.15 million seed donation by NAR, to provide emergency relief to hurricane victims in Louisiana, Mississippi and Alabama, including displaced Realtors(R).

The Louisiana Association of Realtors(R), working with the Federal Emergency Management Agency (FEMA), the Department of Homeland Security and NAR, developed the Web site hurricanehousing.net. Realtors(R) around the country are identifying available housing in their communities and posting the information on the Web site, which gives evacuees direct access to housing resources in all 50 states and also provides information on federal and state assistance.

From an appropriations standpoint, NAR encouraged Congress to fully fund the hazard mitigation grant program, efforts to update and modernize flood plain maps and programs to alleviate the problem of repetitive flood loss claims under the NFIP.

"NAR believes these initiatives will help to reduce future disaster-related costs to the federal government through comprehensive mitigation strategies. We urge Congress to look carefully at these programs to protect against the fallout from future disasters," Mansell said.

After the immediate short-term needs are met, NAR urges Congress to work with HUD to expedite the availability of the 203k and Streamline Limited Repair Programs under the Single Family Mortgage Insurance Program; explore amending the Fair Credit Reporting Act to prohibit creditors from filing late payment information with credit bureaus during a declared state of emergency or similar disaster; provide tax relief so borrowers would not be taxed on mortgage loans that have been cancelled or forgiven; and revisit natural disaster insurance.

Realtors(R) also encourage Congress to enact legislation supported by a majority of the House and President Bush that would provide a tax credit for the construction or rehabilitation of affordable housing; extend expiring tax provisions for a shortened leasehold cost recovery period and for site preparation activities that include the cleanup of brownfields; and review eligibility criteria for the Small Business Administration's disaster assistance programs to ensure that these programs meet the needs of America's smallest businesses, including those owned and operated by independent contractors like Realtors(R).

"The aftermath of Hurricane Katrina is a disaster unlike any ever experienced in the United States. Americans' outpouring of support has been tremendous, but more will be needed. Extraordinary measures are going to be necessary to rebuild these communities and return normalcy to the many evacuees devastated by Hurricane Katrina. NAR stands ready to work with Congress and the administration on a variety of initiatives we think will help recovery efforts," Mansell said.