UNITED STATES DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT OFFICE OF PUBLIC AFFAIRS CONFERENCE CALL HOUSING ASSISTANCE FOR RESIDENTS AFFECTED BY GULF COAST HURRICANES Washington, D.C. Thursday, April 26, 2007 2 1 PARTICIPANTS: 2 DONALD E. POWELL Federal Coordinator for Gulf Coast Rebuilding 3 ALPHONSO JACKSON 4 Secretary, U.S. Department of Housing and Urban Development 5 R. DAVID PAULISON 6 FEMA Administrator 7 D.J. NORDQUIST U.S. Department of Housing and Urban Development 8 17 18 19 * * * * * 20 21 22 BETA COURT REPORTING www.betareporting.com (202) 464-2400 800-522-2382 3 1 P R O C E E D I N G S 2 MODERATOR: Good morning. At this 3 time, I would like to welcome everyone to 4 your conference call. All lines have been 5 placed on mute to prevent any background 6 noise. 7 After the speaker remarks, there 8 will be a question and answer session. 9 If you would like to ask a question 10 during that time, simply press the star, then 11 the number one on your telephone key pad. If 12 you would like to withdraw your question, 13 press the pound key. 14 Now, let me turn the call over to 15 your host for today's conference call. 16 MS. NORDQUIST: Good morning, 17 everybody. Thank you for joining us. 18 My name is D.J. Nordquist, and I'm 19 the head of public affairs at the U.S. 20 Department of Housing and Urban Development. 21 Thanks for participating. 22 As you know, today, the Bush BETA COURT REPORTING www.betareporting.com (202) 464-2400 800-522-2382 4 1 Administration is making an important 2 announcement about housing assistance for 3 residents affected by the Gulf Coast 4 hurricanes of 2005. The principals on 5 today's call are the Federal Coordinator for 6 Gulf Coast Rebuilding, Chairman Don Powell; 7 HUD Secretary Alfonso Jackson; and FEMA 8 Administrator Dave Paulison. 9 Following their opening remarks, 10 we'll be happy to take questions from members 11 of the media on a first come, first served 12 basis. 13 As the moderator just mentioned, 14 media on the conference call will be able to 15 ask questions by pressing star one on your 16 phone. The conference coordinator will 17 introduce you and then you'll be able to ask 18 a question. 19 Finally, you will be receiving a 20 joint news release shortly about today's 21 announcement, along with a fact sheet. It 22 will also be available at hud.gov and the BETA COURT REPORTING www.betareporting.com (202) 464-2400 800-522-2382 5 1 other agencies' websites. 2 With that, let me introduce 3 Chairman Don Powell, Federal Coordinator for 4 Gulf Coast Rebuilding. 5 COORDINATOR POWELL: Thank you, and 6 thank each of you for joining us today for 7 this important announcement. 8 As it has been mentioned, I'm here 9 today with HUD Secretary Jackson. Also 10 joining us by telephone is FEMA Administrator 11 Paulison. 12 We're going to make an important 13 announcement regarding the people who were 14 displaced by Hurricane Katrina and Rita. 15 President Bush is strongly 16 committed to rebuilding the Gulf Coast better 17 and stronger and continuing to support the 18 residents of the Gulf Coast have endured an 19 unprecedented tragedy. 20 We understand the importance of 21 minimizing the uncertainty so residents can 22 move on with their lives. BETA COURT REPORTING www.betareporting.com (202) 464-2400 800-522-2382 6 1 Today, we're here to announce 2 several things regarding temporary housing. 3 First, all temporary housing 4 assistant programs, including the trailers, 5 mobile homes, and rental housing will be 6 extended until March 1, 2009. 7 In addition, this extension will 8 also provide more time for the States to get 9 the federal funding already in the system to 10 move more quickly to rebuild their affordable 11 housing and rental stock and help homeowners 12 transition into permanent housing and rebuild 13 their lives. 14 Second, we have developed the 15 parameters of the rental housing program 16 where HUD will take over management on behalf 17 of FEMA beginning on September the 1st of 18 this year. 19 HUD will use their extensive 20 experience in case management to help 21 residents transition to longer-term housing. 22 We plan to consult the appropriate BETA COURT REPORTING www.betareporting.com (202) 464-2400 800-522-2382 7 1 congressional committees for the best way to 2 fund and structure the program. 3 Third, beginning on March the 1st 4 2008, individuals in both the rental housing 5 and travel trailer and mobile home programs 6 will pay a portion of the cost, which will 7 begin at $50 per month and incrementally 8 increase each month after until the program 9 concludes on March the 1st 2009. 10 And finally, beginning immediately, 11 FEMA will allow residents of its mobile home 12 and travel trailers to purchase their 13 dwelling at fair market value. 14 As you know, the current extension 15 was to end on August 31st. However, as the 16 Office of the Gulf Coast Rebuilding worked 17 with HUD and FEMA to evaluate the need, we 18 recognized that some individuals need more 19 time. 20 We believe this is a coordinated, 21 integrated approach to help those families 22 who need more time and further assistance to BETA COURT REPORTING www.betareporting.com (202) 464-2400 800-522-2382 8 1 move from temporary housing and transition to 2 self- sufficiency. 3 This extension will provide 4 stability to residents while at the same time 5 providing incentives and more assistance to 6 help them transition into a longer-term 7 housing solution. 8 Thank you and I will now turn it 9 over to Secretary Jackson. 10 SECRETARY JACKSON: Thank you, 11 Chairman Powell. 12 Over 800,000 people were displaced 13 due to the overwhelming destruction of the 14 2005 Gulf Hurricanes. 15 Unfortunately, some of the people 16 remain displaced today, as Chairman Powell 17 said. 18 Disaster housing continues to be a 19 need for many of the storm victims. 20 As we transition to long-term 21 programs, HUD is the final stage of 22 developing a plan that will allow us to take BETA COURT REPORTING www.betareporting.com (202) 464-2400 800-522-2382 9 1 over management of the rental housing program 2 on behalf of FEMA. 3 That's what we do at HUD-long-term 4 housing. HUD and FEMA are working on the 5 mechanics of the new arrangement, and we'll 6 consult with Congress, as Chairman Powell 7 said, for the appropriate structure. 8 Following this new framework, we 9 will not only ensure that affected 10 families continue to get housing assistance 11 they need but also will provide them with the 12 individual services that will help them 13 rebuild their lives. 14 According to FEMA estimates, almost 15 40,000 affected families remain in rental 16 housing. HUD's role will provide the 17 financial, education, job training, and a 18 helping hand they need to succeed in the new 19 communities. 20 Once approved, here's how we will 21 expect the new assistance between FEMA and 22 HUD disaster housing assistance to work: BETA COURT REPORTING www.betareporting.com (202) 464-2400 800-522-2382 10 1 After consulting with Congress, 2 FEMA will give HUD the resources to extend 3 rental assistance to families who already are 4 living in rental housing units paid by FEMA. 5 We anticipate FEMA will 6 transfer management of the program to HUD 7 September 1st 2007. 8 HUD will provide the time-tested 9 principles of case management to assist the 10 families and providing the community support 11 and safety that these families need to get 12 back home. 13 Following the case management, HUD 14 will use transitional approach to help 15 families become self-sufficient beginning as 16 early as March 2008. 17 Starting on that date, HUD will 18 begin to reduce the rental subsidy gradually 19 over the following 12 months. 20 As Chairman Powell said, it will be 21 $50 a month, March 1st 2008; then April $50; 22 and then in June it will be another $50. BETA COURT REPORTING www.betareporting.com (202) 464-2400 800-522-2382 11 1 We expect that the administration 2 of the new Disaster Housing Voucher Program 3 will be in conjunction with the public 4 housing agencies around the nation. These 5 agencies have the experience in administering 6 the rental assistance program, including 7 Hurricane Assistance Program already in 8 place. 9 This program, which has helped 10 30,000 families, will now help the other 11 families in need. The Senior or Disabled 12 Housing and Homeless will also be affected by 13 this program. 14 We believe that this is the best 15 approach that we can take and now I will turn 16 it over to Administrator Paulison. 17 ADMINISTRATOR PAULISON: Well, 18 thank you, Secretary Jackson, and quite 19 frankly I'm pleased to be here with my 20 colleagues, Chairman Powell and Secretary 21 Jackson, to announce this extension. 22 You know, we've made significant BETA COURT REPORTING www.betareporting.com (202) 464-2400 800-522-2382 12 1 progress,but the-I think everyone recognizes 2 that the devastated impact of these storms is 3 going to continue to hamper the ability of 4 many to get back on their feet and to obtain 5 the self-sufficiency that you heard Chairman 6 Powell talk about. 7 The extension is going to allow 8 FEMA and our partners to develop a more 9 innovative, responsive, flexible and but at 10 the same time compassionate solutions to help 11 people get back on their feet. 12 I mean I'm proud of the tremendous 13 progress we've made, but we can't be 14 satisfied until everyone possible, every 15 disaster victim possible, has really 16 successfully navigated the road back to 17 recovery. 18 Now, we have made tremendous 19 progress. Since the hurricane, we have 20 provided rental assistance to over 870,000 21 households. And today, we have less than 22 33,000 remaining. BETA COURT REPORTING www.betareporting.com (202) 464-2400 800-522-2382 13 1 We're proud of the role that we've 2 been in providing housing assistance 3 immediately following Hurricane Katrina and 4 for a short time we managed more public 5 housing units than other agency in the 6 nation. 7 But that's not our job. The fact 8 is that we're not in the long-term housing 9 business. That's why I'm really pleased to 10 get this extension includes the transition 11 and the responsibility through the Department 12 of Housing and Urban Development who really 13 do this professionally. 14 And we're going to continue to play 15 a role. 16 Under the plan that you've heard 17 Chairman Powell and Secretary Jackson lay 18 out, FEMA will allow residents of the mobile 19 homes and travel trailers so to either 20 purchase their dwellings at fair market value 21 or will also give the residents an option to 22 rent the units. BETA COURT REPORTING www.betareporting.com (202) 464-2400 800-522-2382 14 1 We're going to continue to manage 2 the mobile home and travel trailer operations 3 throughout the Gulf and we'll also continue 4 to engage HUD as well as our state and local 5 officials really in a collaborative effort to 6 identify alternative housing solutions for 7 those that are still in those mobile homes 8 and travel trailers. 9 Again, we've made great progress. 10 Over the last I'd say 20 months or so, FEMA 11 has housed more than 120,000 households in 12 travel trailers, mobile homes. And today, 13 we're right around 86,000. But most of 14 those, probably 80 percent of those, are on 15 their own property while the homes are being 16 rebuilt. 17 So I really look forward to the day 18 that everyone of these victims are out of 19 these travel trailers, out of the mobile 20 homes, and back in their own homes. 21 And I think this is a step in the 22 right direction. Thank you. BETA COURT REPORTING www.betareporting.com (202) 464-2400 800-522-2382 15 1 SECRETARY JACKSON: Thank you, very 2 much. Questions? 3 MS. NORDQUIST: If we could open up 4 the line for questions, please? 5 Go ahead. Press star one on your 6 phone. 7 MODERATOR: The first question 8 comes from Mr. Dave Cohen with WWL Radio. 9 MR. COHEN: Chairman Powell, you 10 said that folks will be able to purchase 11 their trailers and mobile homes at fair 12 market value. Do you have any idea what fair 13 market value for those dwellings is? 14 COORDINATOR POWELL: I would 15 probably-I have some ideas, but I think 16 probably Administrator Paulison is better 17 equipped to answer that question than I 18 because he's had experience in Florida and 19 some other markets. 20 ADMINISTRATOR PAULISON: Yeah, 21 we're-you know, most of those-most of the 22 units are actually travel trailers and the BETA COURT REPORTING www.betareporting.com (202) 464-2400 800-522-2382 16 1 fair market value if we take away what it 2 cost us to move those and to break them down, 3 you know, they're probably just a few hundred 4 dollars that they're going to be worth. 5 Now the mobile homes will be worth 6 more. But we're going to make it as we can 7 for people to purchase these that want to. 8 You know, we'll look at what is it costing us 9 to maintain it. What is it going to cost us 10 to move it somewhere else? What would it 11 cost us to store it and take that off of what 12 a normal-a mobile home of that age would 13 cost. 14 So we're going to make it as easy 15 as possible. You know, we have a year before 16 this goes into effect, if they can just sit 17 there and save those trailers as they are 18 now. 19 So we're working out the prices, 20 and, again, we want to make it as fair as 21 possible to make them as affordable as 22 possible to the people staying in them. BETA COURT REPORTING www.betareporting.com (202) 464-2400 800-522-2382 17 1 MR. COHEN: And again, just to 2 reiterate, you said for a few hundred dollars 3 you know current travel trailer residents 4 will be able to buy their current travel 5 trailers and what about people who are not 6 currently living in trailer, will there be an 7 opportunity for them to buy them? 8 ADMINISTRATOR PAULISON: You know, 9 we have-we are selling these on a regular 10 basis through GSA, the ones that we have in 11 excess. We're actually closing out about 800 12 a week by the people who are moving out of 13 these, and those are made available through 14 the GSA web site to purchase those. 15 So, you know, anyone in the country 16 can buy these if they want to. 17 The ones that people are living in, 18 though, obviously, they'll have first 19 priority for those particular units. 20 MR. COHEN: And for a few hundred 21 dollars, you said? 22 ADMINISTRATOR PAULISON: Well, the BETA COURT REPORTING www.betareporting.com (202) 464-2400 800-522-2382 18 1 ones we're selling in Florida right now, the 2 last ones we've been selling, the travel 3 trailers now, are, you know, we've been 4 selling for right around five or six hundred 5 dollars, right in that range. 6 The mobile homes are going for much 7 more obviously, but don't forget the travel 8 trailers, the people that by the time we get 9 to the end of this program, they'll be in 10 those trailers for three and sometimes four 11 years. 12 So they're pretty much at the end 13 of their normal life expectancy for the type 14 of use they've had. You know, they're 15 designed for camping, and people have been 16 living in them a long time. 17 So as far as the actual residual 18 value of selling them, it's not that much 19 left over. 20 MR. COHEN: Thank you. 21 MODERATOR: The next question comes 22 from Ms. Natalie Chandler with the BETA COURT REPORTING www.betareporting.com (202) 464-2400 800-522-2382 19 1 Clarion-Ledger News. 2 MS. CHANDLER: Yes, Secretary 3 Jackson, I had a question about the grant 4 program and a lot of residents have 5 complained about the slowness of it, and I 6 know y'all are trying to protect against 7 fraud, but is there anyway you can find a 8 middle ground between that and getting money 9 to the people more quickly to maybe try to 10 get them out of these trailers? 11 SECRETARY JACKSON: I think that 12 you're specifically speaking to Louisiana, 13 because I think Mississippi has done a very 14 good job toward making sure the grants are to 15 the persons. 16 We have worked out an arrangement 17 with Louisiana, and I think you will begin to 18 see this process moving much quicker than it 19 was before, and that the people will begin to 20 rebuild in the area. 21 What we found that was very 22 important is that rather than having a BETA COURT REPORTING www.betareporting.com (202) 464-2400 800-522-2382 20 1 compensation program initially as Louisiana 2 had said, they were having a phased in 3 program where the money was being held in 4 escrow. 5 That was not what they submitted to 6 us. But to date, the Governor, the Louisiana 7 Recovery Authority, and our staff has worked 8 out an agreement that we're going directly 9 back to the grant program that is very 10 similar to that in Mississippi. 11 MS. CHANDLER: And do you know if 12 Mississippi has change their rules for the 13 second phase of the program, because as I 14 understood, it was the same as the holding it 15 in the escrow account. 16 SECRETARY JACKSON: We're working 17 through the details right now with 18 Mississippi on that process. 19 You're absolutely correct that the 20 second phase was similar to the first phase 21 of what occurred in Louisiana. 22 MS. CHANDLER: So that you BETA COURT REPORTING www.betareporting.com (202) 464-2400 800-522-2382 21 1 anticipate that will be speeded up in 2 Mississippi, the second phase? 3 SECRETARY JACKSON: Yeah, I think 4 that clearly we will be in the process of 5 resolving that, and if you want to get back 6 with us in a couple of weeks, we will have an 7 answer for you. 8 MS. CHANDLER: Okay. 9 MODERATOR: The next question comes 10 from Mr. Bill Walsh from the Times-Picayune. 11 MR. WALSH: Yeah, I had a couple of 12 questions. One is I wasn't aware that you 13 all had the statutory authority to transfer 14 this responsibility? Is that what you're 15 going to have to talk to Congress about? 16 SECRETARY JACKSON: No, I think 17 what we're talking to Congress about and you 18 can chime in Administrator Paulison and 19 Chairman Powell, what we're talking to 20 Congress about is to make sure that we're 21 doing exactly what is in the best interest of 22 the persons in the Gulf Coast and to get BETA COURT REPORTING www.betareporting.com (202) 464-2400 800-522-2382 22 1 their approval. 2 Through the Stafford Act, as I read 3 it and as our general counsel has read it, 4 FEMA has the power and the right to 5 transfer and to work with us and have us to 6 serve as a subsidiary of them in this 7 process. 8 They did that with public housing 9 residents, the 30,000, so that we've already 10 housed. And they're doing it now with all of 11 the persons. 12 So it's an interagency 13 agreement that occurs that can occur at the 14 request of FEMA and Homeland Security. 15 ADMINISTRATOR PAULISON: Secretary 16 Jackson is right on target. You know, FEMA 17 will continue to pay for and reimburse HUD 18 for the expenses of this, so we have the 19 legal authority to mission assign an agency 20 to do work for FEMA, and this is the right 21 thing to do. 22 I mean HUD is the experts in BETA COURT REPORTING www.betareporting.com (202) 464-2400 800-522-2382 23 1 housing. FEMA is not. You know, we can do 2 the short-term and immediately after a storm, 3 but quite frankly the long-term housing 4 belongs to an agency that is really the 5 experts in doing this, and HUD is the right 6 agency for that. 7 MR. WALSH: And how many people are 8 we talking about this affecting this 9 extension through 2009? 10 ADMINISTRATOR PAULISON: Well, 11 we're talking about not only that the 33,000 12 or 34,000 that are currently in apartments 13 that are being transferred to HUD. But the 14 extension also applies to the 88 or 87 or 15 88,000 people that are in mobile homes and 16 travel trailers throughout the Gulf Coast. 17 So it's quite a few people, and I 18 shouldn't say people. They're actually 19 families that are affected by this. It's 20 anyone who FEMA is subsidizing now, whether 21 it's in an apartment or whether it's in a 22 mobile home or travel trailer is affected by BETA COURT REPORTING www.betareporting.com (202) 464-2400 800-522-2382 24 1 this extension through March of 2009. 2 COORDINATOR POWELL: It's in excess 3 of 100,000 family units. 4 ADMINISTRATOR PAULISON: That's 5 correct, Chairman. 6 MR. WALSH: And so people who are 7 in travel trailers right now will they have 8 the option of moving to an apartment? 9 ADMINISTRATOR PAULISON: Yes, in 10 fact, the ones that are in the group 11 sites-don't forget of these people that are 12 in travel trailers are actually in the 13 driveway rebuilding their homes. 14 So those have a-they have an end 15 game. There's a-they know where they're 16 going to be going. 17 But the other 20 percent now are a 18 combination of those in our group sites, in 19 commercial travel trailer parks or in some 20 adjustable sites. 21 We're going to focus on the ones 22 that are in FEMA's group sites that you are BETA COURT REPORTING www.betareporting.com (202) 464-2400 800-522-2382 25 1 very familiar with and focus on start moving 2 those out as we can into apartments as we 3 find available apartment space. 4 You know you lived down this. You 5 know that that's-there's not a lot of that, 6 but we're going to try to do it as much as we 7 can and get as many people out during-you 8 know, between now and when this program 9 ends]. 10 COORDINATOR POWELL: Yeah. I would 11 just add I think it's important, too, 12 that-and the states know this-that the monies 13 that they've used, that they received through 14 the CDBG is dedicated to some affordable 15 housing so it's important to get those 16 programs up and going. 17 MR. WALSH: And will people be 18 placed into HUD's Section 8 Program? 19 SECRETARY JACKSON: No. Let me say 20 this: That we will work with the people, as 21 Chairman Powell has said, and we will begin 22 to step down the rents in March. BETA COURT REPORTING www.betareporting.com (202) 464-2400 800-522-2382 26 1 But for those persons who are 2 physically or mentally disabled or the 3 elderly, we will have to, through this 4 process, work out how we make sure that 5 they're taken care of, because in many cases, 6 they will not be in a position to take care 7 of themselves, even at the end of the 18 8 month-18 months, I'm sorry. 9 MR. WALSH: Mm hmm. Okay. And one 10 last question for Director Paulison. Are you 11 going to be contacting everyone who has-is in 12 the FEMA trailer now and asking them whether 13 they want to purchase it? 14 COORDINATOR POWELL: Yes, we will. 15 The ones in the group sites, I don't know 16 that that's convenient for them to purchase 17 because, you know, those sites will be-we'll 18 start closing those down. 19 But I think there will be a big 20 interest in those in the commercial trailer 21 parks to purchase those mobile homes and even 22 some people in-that are have travel trailers BETA COURT REPORTING www.betareporting.com (202) 464-2400 800-522-2382 27 1 backed up in the driveway that maybe want to 2 keep those. 3 So we will be contacting all of 4 them, telling them that they're available for 5 purchase, if they chose to do so. 6 MR. WALSH: Thank you. 7 MODERATOR: My next question comes 8 from Mr. Mike Snyder of the Houston 9 Chronicle. 10 MR. SNYDER: Yes, this for anyone 11 who can answer it. 12 I'm wondering if anyone has an 13 estimate of the cost of this extension of 14 housing assistance and whether or not the 15 funding is in place or whether you have to go 16 back to Congress and ask for it. 17 COORDINATOR POWELL: Yeah, this-the 18 estimated cost will be in excess of a billion 19 dollars. 20 MR. SNYDER: A billion, did you 21 say? 22 COORDINATOR POWELL: Yes, sir. BETA COURT REPORTING www.betareporting.com (202) 464-2400 800-522-2382 28 1 That's for the trailer program and for the 2 housing program. 3 MR. SNYDER: Okay. And what are -- 4 COORDINATOR POWELL: That's 5 estimated. 6 MR. SNYDER: --what's the status of 7 arranging to have that money available? 8 COORDINATOR POWELL: We're not 9 going to-we will not be requesting additional 10 money at this point in time. We believe the 11 money is there. 12 SECRETARY JACKSON: Clearly in 13 place. 14 COORDINATOR POWELL: Right. 15 SECRETARY JACKSON: As 16 Administrator Paulison said, this is an 17 interagency agreement between us and the 18 Department of Homeland Security, specifically 19 FEMA. And FEMA has the money, disaster money 20 on hand, so we will be using that money to 21 make sure that we carry out the program. 22 MR. SNYDER: So in that sense, BETA COURT REPORTING www.betareporting.com (202) 464-2400 800-522-2382 29 1 you'll almost be acting as a-like a 2 subcontractor of FEMA. In other words, 3 you'll be using their funding rather than 4 money that's been budgeted for HUD, existing 5 HUD programs? 6 SECRETARY JACKSON: That's 7 absolutely correct. But with not 8 subcontractor. It's an interagency 9 agreement. We're working in tantamount 10 with each other, and when you're 11 subcontracting, you're working for someone, 12 but we're working according to the edict of 13 the President of the United States, President 14 Bush. 15 And he's saying that we must work 16 as partners in this collaborative agreement 17 to make sure that these persons are housed 18 and continually housed. 19 MR. SNYDER: Thank you. 20 MODERATOR: My next question comes 21 from Ms. Anna Radelat from Gannett. 22 MS. RADELAT: This is for anybody. BETA COURT REPORTING www.betareporting.com (202) 464-2400 800-522-2382 30 1 I guess the first thing I would like to know 2 is the breakdown of where the travel trailers 3 and rental assistance is? How many in 4 Louisiana? How many in Mississippi? And 5 what's going on in Texas, if that could be 6 provided? 7 COORDINATOR POWELL: Yeah, we've 8 got that data and can provide it to you. The 9 apartment population, let me just tell you 10 that of the approximately 33,000 that 11 Administrator Paulison talks about, most of 12 those are in Texas, and of which about 17,000 13 are in Texas and about 13,000 in Houston 14 alone. 15 And the majority of them, the 16 balance are in Louisiana with some small 17 amount in Mississippi and Alabama. 18 In the trailer population, there's 19 about 85,000 that are located in trailers in, 20 and the majority of those are in Louisiana; 21 about 55,000 in Louisiana and 26,000 in 22 Mississippi and then some scattered in other BETA COURT REPORTING www.betareporting.com (202) 464-2400 800-522-2382 31 1 states. 2 Trailers, most of them are in 3 Mississippi and Texas, as I mentioned. 4 MS. RADELAT: Well, will this 5 program affect the alternative housing folks 6 or not? 7 I mean it seems that they would be 8 separate. 9 ADMINISTRATOR PAULISON: It is 10 separate. It's a-you know, it's a-it just 11 takes a little bit of everything to make sure 12 we find places for people to stay. So the 13 alternative housing program will go along 14 with this program to make sure we get people 15 in some decent housing and out of these 16 travel trailers and mobile homes. 17 MS. RADELAT: Why did you decide to 18 do this? I mean in Andrew people were kept 19 in their trailers for as long as they wanted 20 and they didn't have to pay for them. So why 21 was this done differently? 22 ADMINISTRATOR PAULISON: I don't BETA COURT REPORTING www.betareporting.com (202) 464-2400 800-522-2382 32 1 know that-I think this is a new program that 2 we're using to come up with some innovative 3 ideas. In Andrew, they didn't stay in there 4 forever. Normally, it's 18 months, you know, 5 when we start moving people out. And don't 6 forget in Andrew, we had hundreds and 7 hundreds of families and people living in 8 tents. Go down to Harris Field. You know, I 9 was the Fire Chief down there. 10 This is a long, long term, much 11 longer than a term that Andrew was as far as 12 the numbers of people, the amount of very 13 devastated-don't forget we had 90,000 square 14 miles and, you know, over a million and half 15 people that had to be evacuated. 16 The recovery is going to be much 17 longer in this area than it is going to be it 18 was Andrew. So that's why we've got this 19 long-term program. That's why we're working 20 as partners with HUD to find apartments for 21 people to stay in, for them to take over the 22 housing program, 'cause they're going to be BETA COURT REPORTING www.betareporting.com (202) 464-2400 800-522-2382 33 1 there a while. It's not going to be 2 something where they can move back in homes 3 in a short time like we did with Andrew. 4 SECRETARY JACKSON: I think to add 5 what Administrator Paulison said, it's very 6 important for us to realize that many of the 7 persons that we're talking about do not have 8 homes to go back to. They have vacant lots 9 to date. 10 We, Administrator Paulison, 11 Chairman Powell and I have made many trips 12 back to Louisiana. This is a very difficult 13 and unique situation. And we're trying to do 14 everything we can to stabilize the lives of 15 these persons who have been affected by 16 Hurricane Katrina; and, therefore, we must 17 use new and very innovative techniques to try 18 to address this issue. 19 Does that mean that we don't want 20 any of these persons to come back? We want 21 everyone who wants to come back home to come 22 back home. And we'll do everything in our BETA COURT REPORTING www.betareporting.com (202) 464-2400 800-522-2382 34 1 power in that process to get them back. 2 But during that period of time that 3 they can't come back, it's important that we 4 stabilize their lives and the lives of these 5 families. 6 COORDINATOR POWELL: I would just 7 add, too-I think it's important again to make 8 sure that everybody understands that the CDBG 9 money, part of that money is not only for the 10 road home program or for people can replace 11 their single families, but part of that money 12 is also dedicated to affordable housing. So 13 this extended period of time gives time for 14 the states and the locals to engage and 15 increase the speed of rebuilding the 16 affordable housing. 17 As Secretary Jackson said, these 18 people don't have a place to go. So that's 19 the reason the CDBG money has been allocated 20 for affordable housing. 21 MS. RADELAT: One last question. 22 This phasing in, you know, where the people BETA COURT REPORTING www.betareporting.com (202) 464-2400 800-522-2382 35 1 have to start paying part of the cost of 2 living the trailers, and I guess part of the 3 cost of their rent. 4 Is there a limit on that? I mean 5 it was first $50 a month and then it's going 6 to be in a couple of months after that 7 another $50, so that would be $100 a month. 8 Is there a cap or is it just-how 9 high does the escalation go? 10 SECRETARY JACKSON: Hopefully, 11 the persons will be able to phase out 12 completely. Those persons who can, we will 13 do it. Those who can't- remember I said to 14 you a few minutes ago, that when we find 15 physically, mentally disabled, when we find 16 the senior citizens or the elderly, they 17 might not be in a position to necessarily 18 phase out of the program, but those who can 19 phase out of the program, we will do 20 everything in our power to help them phase 21 out of the program. See you have-- 22 MS. RADELAT: Because I mean the BETA COURT REPORTING www.betareporting.com (202) 464-2400 800-522-2382 36 1 people who are living in trailers, they're 2 not paying rent. So what's the maximum 3 they're going to pay for rent for their 4 trailers? 5 I guess that's the way it would 6 work. 7 ADMINISTRATOR PAULISON: Yeah. 8 We're not going to charge any more than what 9 the normal fair market rent would be for a 10 mobile home, you know, people in a commercial 11 park- 12 COORDINATOR POWELL: So in essence, 13 that's a cap. 14 ADMINISTRATOR PAULISON: It will be 15 a cap on whatever that is. And don't forget 16 the travel trailers now are not going to be 17 nearly as much as far as the rent as a mobile 18 home. 19 So somebody living in a 25-foot 20 travel trailer is not going to pay the same 21 rent as somebody living in a 60-foot mobile 22 home. BETA COURT REPORTING www.betareporting.com (202) 464-2400 800-522-2382 37 1 There's going to be a big 2 difference there. 3 And also, don't forget that this 4 thing doesn't start for another year. 5 SECRETARY JACKSON: That's correct. 6 ADMINISTRATOR PAULISON: We have 7 time to work out that process and exactly 8 what we're going to charge. We're not 9 going-we're not going to kick people out. 10 We just want them to get back to 11 self- sufficiency and, you know, to make sure 12 that they can do that, and that's the way it 13 is-I think it's going to be a good program to 14 work that Chairman Powell and Secretary 15 Jackson and I put together. 16 COORDINATOR POWELL: So in essence 17 you have a cap. 18 SECRETARY JACKSON: But there is 19 no- 20 COORDINATOR POWELL: You have a 21 cap. 22 SECRETARY JACKSON: Right. And BETA COURT REPORTING www.betareporting.com (202) 464-2400 800-522-2382 38 1 there is no litmus test at this point. 2 Everyone is going to be served, as 3 Administrator Paulison said, for the year. 4 You have to understand that the average rent 5 is about $850. And we're saying to the 6 person that next March we will begin to 7 evaluate each individual person to see where 8 they are. 9 Now you must understand also that a 10 number of the people are working today in 11 Houston, in Dallas, in Austin, in Baton 12 Rouge. They have jobs. And so we're 13 basically giving those persons who are 14 working a moratorium for another year. And 15 so we must begin to ask them to take some 16 responsibility for input in their living 17 conditions. And I think that's only right. 18 But those who are not able, as we 19 said again, we'll reiterate, physically, 20 mentally handicapped, the seniors, we're 21 going to work with them and we will come up 22 with an agreement between the Homeland BETA COURT REPORTING www.betareporting.com (202) 464-2400 800-522-2382 39 1 Security, HUD, and the Coordinator as to how 2 we address those issues. 3 And that's the mandate from the 4 President. 5 MS. NORDQUIST: Okay. Last 6 question, please? 7 SECRETARY JACKSON: That was it. 8 MS. NORDQUIST: Okay. 9 MODERATOR: This question comes 10 from Ms. Leslie Eaton of the New York Times. 11 MS. EATON: Hi, there. Can you 12 hear me? 13 SECRETARY JACKSON: Yes. 14 MS. NORDQUIST: Oh, yeah. 15 MS. EATON: Okay. Good. I'm 16 sorry. I'm a little confused about the rent. 17 It starts at $50 and then it remains at $50 18 for a while or it goes up immediately or? 19 ADMINISTRATOR PAULISON: There's 20 two things going on. One is the rent that 21 we're already paying for people in 22 apartments. They're going to have start BETA COURT REPORTING www.betareporting.com (202) 464-2400 800-522-2382 40 1 picking up parts of that in March of '08. 2 MR. EATON: Mm hmm. 3 ADMINISTRATOR PAULISON: And that 4 will start off at $50 a month. The next 5 month it will go up another $50 until we get 6 to-all the way into March of '09, when the 7 program ends. 8 Those in trailers, in travel 9 trailers, will have to start paying rent 10 starting in March of '08; again, starting as 11 little as $50 and will go up and they'll be 12 cap on those based on what that trailer would 13 normally rent for or that mobile home would 14 normally rent for. 15 So, again, that will go into March 16 of '09. 17 MS. EATON: It'll basically go from 18 $50 to a hundred to a hundred-fifty to- 19 SECRETARY JACKSON: That's correct. 20 Let me say this to you: I think that if 21 you're a little confused, what we have said 22 is that we're looking at each individual in BETA COURT REPORTING www.betareporting.com (202) 464-2400 800-522-2382 41 1 their particular situation. If they are 2 capable of doing it, yes, the rent will go 3 up. 4 MS. EATON: Mm hmm. 5 SECRETARY JACKSON: But if they're 6 not, then we will work together, all three of 7 us, that is the Homeland Security, HUD, and 8 the Coordinator to make sure that those who 9 are not able to participate in paying or 10 downgrading in their subsidy, we will work 11 with them to make sure that they're not 12 displaced. 13 COORDINATOR POWELL: Let me 14 emphasize two things, too. It doesn't 15 commence, as has been said repeatedly here- 16 MS. EATON: All right. 17 COORDINATOR POWELL: Until March of 18 2008, and it does have a cap. 19 MS. EATON: Great. Thanks. 20 MS. NORDQUIST: Okay. Thank you, 21 everybody for joining us today. If you have 22 any further questions, please feel free to BETA COURT REPORTING www.betareporting.com (202) 464-2400 800-522-2382 42 1 follow up with the press office at Gulf Coast 2 Rebuilding. It's (202) 572-8994. HUD is 3 (202) 708-0685, and FEMA is (202) 646-4600. 4 Thank you very much. Have a great 5 day. 6 (Whereupon, 10:35 a.m., the 7 PROCEEDINGS were adjourned.) 8 * * * * * 9 10 11 12 13 14 15 16 17 18 19 20 21 22 BETA COURT REPORTING www.betareporting.com (202) 464-2400 800-522-2382