Congressman Dave Loebsack Urges FEMA to Waive Rent for Temporary Housing Program

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Washington, DC – November 3, 2009 – (RealEstateRama) — Congressman Dave Loebsack, joined by the Iowa delegation, wrote to Administrator Fugate, urging FEMA to waive rent for the temporary housing program. FEMA recently granted an extension of the temporary housing program for an additional seven months until June 27, 2010. While this extension allows disaster victims an additional seven months to seek affordable housing, several problems remain within the temporary housing program. Currently, FEMA will charge residents the fair market value of rent, minus certain deductions, which places a heavy burden on many Iowans as they work to recover from the floods of last summer.

“Many of Iowa’s communities are still struggling to rebuild and many families who for a variety of reasons, ranging from delayed home repair to the current economic downturn, have had additional difficulties finding their footing,” the letter states.

The letter notes that, “many of the families that remain in temporary housing have children in the middle of the school year.  Uprooting families at this time could create significant and unnecessary problems.  In addition, there continues to be a lack of affordable housing options in the Cedar Rapids area in particular.  As we enter the traditionally harsh winter months in Iowa, transitioning to new homes will also be difficult.”

The letter was written by Congressman Dave Loebsack, Senator Chuck Grassley, Senator Tom Harkin, Congressman Tom Latham, Congressman Leonard Boswell, Congressman Steve King, and Congressman Bruce Braley. A full copy of the letter is below.

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The Honorable W. Craig Fugate
Administrator
Federal Emergency Management Agency
500 C Street S.W.
Washington, D.C. 20472

Dear Administrator Fugate,

Thank you for the recent approval of a seven month extension of FEMA’s temporary housing program as a result of the State of Iowa’s disaster in 2008, FEMA-1763-DR-IA.  The extension is helpful.  However, the State of Iowa has requested an additional extension and a waiver for the collection of rent from occupants residing in FEMA temporary housing units.  We ask that the State’s request be given all due consideration.

The housing program which was originally set to expire on November 27, 2009 will now give disaster victims until June 27, 2010 to find appropriate residences.  Unfortunately, several problems remain due to the decision of FEMA to charge these disaster victims up to fair market rent.  While deductions may be available, this could equate to $920 in Cedar Rapids, $735 in Waterloo, and $741 in Louisa County per month for a three bedroom temporary home without any deductions.

We believe there is a continued need to work with disaster victims to identify a permanent housing solution and applaud FEMA’s efforts with those that have already vacated temporary housing.  However, many of the families that remain in temporary housing have children in the middle of the school year.  Uprooting families at this time could create significant and unnecessary problems.  In addition, there continues to be a lack of affordable housing options in the Cedar Rapids area in particular.  As we enter the traditionally harsh winter months in Iowa, transitioning to new homes will also be difficult.

The Stafford Act provides that after the end of the housing program’s initial 18-month period, the program may be extended if it is determined that “due to extraordinary circumstances an extension would be in the public interest.” The Stafford Act, while allowing for the charge of rent for each temporary housing unit, does not require this charge.  For Iowa, an additional case can be made that a waiver of rent collection is justified because of the same “extraordinary circumstances” which originally led to the program’s extension.

Many of Iowa’s communities are still struggling to rebuild and many families who for a variety of reasons, ranging from delayed home repair to the current economic downturn, have had additional difficulties finding their footing.  We respectfully urge your timely consideration of this request and thank you for your time.

Contact: Sabrina Siddiqui 202-226-6476

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