FAR FROM HOME: SPECIAL REPORT - Louisiana State University · far from home: deficiencies in federal disaster housing assistance after hurricanes katrina and rita and recommendations

U.S. GOVERNMENT PRINTING OFFICE

WASHINGTON :

1

47-251

COMMITTEE PRINT " ! 111th Congress 1st Session

S. PRT.

2009

111–7

FAR FROM HOME: DEFICIENCIES IN FEDERAL DISASTER

HOUSING ASSISTANCE AFTER HURRICANES KATRINA AND RITA AND

RECOMMENDATIONS FOR IMPROVEMENT

SPECIAL REPORT

PREPARED BY THE

AD HOC SUBCOMMITTEE ON DISASTER RECOVERY

OF THE

COMMITTEE ON HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS UNITED STATES SENATE

FEBRUARY 2009

Available via http://www.gpoaccess.gov/congress/index.html

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.#13

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1

47-251

COMMITTEE PRINT " ! 111th Congress 1st Session

S. PRT.

2009

111–7

FAR FROM HOME: DEFICIENCIES IN FEDERAL DISASTER

HOUSING ASSISTANCE AFTER HURRICANES KATRINA AND RITA AND

RECOMMENDATIONS FOR IMPROVEMENT

SPECIAL REPORT

PREPARED BY THE


OF THE

COMMITTEE ON HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS UNITED STATES SENATE

FEBRUARY 2009

Available via http://www.gpoaccess.gov/congress/index.html

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ress

.#13

(II)

COMMITTEE ON HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS

JOSEPH I. LIEBERMAN, Connecticut, Chairman CARL LEVIN, Michigan DANIEL K. AKAKA, Hawaii THOMAS R. CARPER, Delaware MARK L. PRYOR, Arkansas MARY L. LANDRIEU, Louisiana CLAIRE MCCASKILL, Missouri JON TESTER, Montana ROLAND W. BURRIS, Illinois MICHAEL BENNET, Colorado

SUSAN M. COLLINS, Maine TOM COBURN, Oklahoma JOHN MCCAIN, Arizona GEORGE V. VOINOVICH, Ohio JOHN ENSIGN, Nevada LINDSEY GRAHAM, South Carolina

MICHAEL L. ALEXANDER, Staff Director BRANDON L. MILHORN, Minority Staff Director and Chief Counsel

TRINA DRIESSNACK TYRER, Chief Clerk


MARY L. LANDRIEU, Louisiana, Chairman CLAIRE MCCASKILL, Missouri ROLAND W. BURRIS, Illinois

LINDSEY GRAHAM, South Carolina

DONNY R. WILLIAMS, JR., Staff Director CHARLIE MARTEL, Chief Investigative Counsel ALAN KAHN, Investigator and Senior Counsel

AMANDA FOX, Professional Staff Member EVAN GLABERSON, Legal Clerk

APRILLE C. RAABE, Minority Staff Director KELSEY STROUD, Chief Clerk

COMMITTEE ON HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS DURING THE 110TH CONGRESS

JOSEPH I. LIEBERMAN, Connecticut, Chairman CARL LEVIN, Michigan DANIEL K. AKAKA, Hawaii THOMAS R. CARPER, Delaware MARK L. PRYOR, Arkansas MARY L. LANDRIEU, Louisiana BARACK OBAMA, Illinois CLAIRE MCCASKILL, Missouri JON TESTER, Montana

SUSAN M. COLLINS, Maine TED STEVENS, Alaska GEORGE V. VOINOVICH, Ohio NORM COLEMAN, Minnesota TOM COBURN, Oklahoma PETE V. DOMENICI, New Mexico JOHN WARNER, Virginia JOHN E. SUNUNU, New Hampshire

MICHAEL L. ALEXANDER, Staff Director BRANDON L. MILHORN, Minority Staff Director and Chief Counsel

TRINA DRIESSNACK TYRER, Chief Clerk

AD HOC SUBCOMMITTEE ON DISASTER RECOVERY DURING THE 110TH CONGRESS

MARY L. LANDRIEU, Louisiana, Chairman THOMAS R. CARPER, Delaware MARK L. PRYOR, Arkansas

TED STEVENS, Alaska PETE V. DOMENICI, New Mexico

DONNY R. WILLIAMS, JR., Staff Director APRILLE C. RAABE, Minority Staff Director

KELSEY STROUD, Chief Clerk


(III)

C O N T E N T S

Page EXECUTIVE SUMMARY ..................................................................................... 1

I. Subcommittee Investigation .......................................................................... 1 II. FEMA’s Post-Katrina Housing Response ..................................................... 5

III. HUD’s Post-Katrina Housing Role ............................................................... 12 IV. FEMA’s Strategy and Planning Before, During, and After Katrina ......... 19

Chapter One—The History of Federal Disaster Response ........................ 25 I. Disaster Response and Recovery Prior to 1950 ........................................... 25

II. 1950 to 1979 ................................................................................................... 27 III. Creation of FEMA and Review of Pre-Katrina Disaster Responses .......... 28

A. FEMA ....................................................................................................... 28 B. Stafford Act of 1988 ................................................................................ 30 C. Hurricane Hugo ....................................................................................... 30 D. The Loma Prieta Earthquake ................................................................ 30 E. Hurricane Andrew ................................................................................... 32 F. The Northridge Earthquake ................................................................... 33 G. Transition From the Clinton to the Bush Administration .................. 34

IV. September 11, 2001, Creation of the Department of Homeland Security, and FEMA’s Incorporation Into DHS ........................................................... 35

Chapter Two—The Stafford Act ....................................................................... 37 I. Presidential Declaration and FEMA’s Authority to Direct Disaster

Assistance ....................................................................................................... 37 II. The Two Major Housing Programs—Emergency Shelter and Individual

Assistance ....................................................................................................... 38 A. Emergency Shelter Under Section 403 .................................................. 39 B. Assistance to Individuals and Households Under Section 408 ............ 39 C. Conditions and Restrictions for Section 408 Housing Assistance ....... 42

III. Flexibility and Discretion in the Stafford Act Was Not Exercised ............ 43 IV. Public Assistance for State and Local Infrastructure and Services—

Cost Shares .................................................................................................... 45 V. The Post-Katrina Emergency Management and Reform Act (PKEMRA) 47

Chapter Three—FEMA’s Post-Katrina Housing Assistance Programs ... 49 I. Introduction: FEMA Housing Programs and FEMA’s Overall Post-

Katrina Housing Assistance ......................................................................... 49 A. FEMA’s Housing Programs Summarized .............................................. 51 B. The Positive Side of FEMA’s Response: The Volume of FEMA

Assistance ................................................................................................ 53 II. The Immediate Response to Katrina: FEMA’s Early Decisions Define

and Limit Housing Options ........................................................................... 55 A. Seven Factors That Limited FEMA’s Housing Options ....................... 57 B. Consequences of FEMA’s Limited Options ............................................ 68

III. FEMA’s Section 403 Shelter Assistance ...................................................... 75 A. Section 403 Assistance Generally .......................................................... 75 B. Operation and Termination of Section 403 Programs .......................... 75 C. Criticism of FEMA’s Flawed Administration of its Section 403 Pro-

grams ........................................................................................................ 86


PageIV

IV. The Post-Section 403 ‘‘Housing Gap’’ and FEMA’s Unsuccessful Attempt to Launch a Rental Repair Program ............................................................ 88

V. FEMA’s Section 408 Housing Assistance ..................................................... 93 A. The Section 408 Eligibility Process ........................................................ 94 B. The Section 408 Rental Assistance Program ........................................ 96 C. Trailers and Mobile Homes .................................................................... 105 D. The Alternative Housing Pilot Program (AHPP) .................................. 119 E. Recoupment ............................................................................................. 120

VI. The Relationship of FEMA Public Assistance to Individual Housing 121 VII. FEMA’s Internal After-Action Report Confirms Problems With Post-

Katrina Housing Response ............................................................................ 123 A. Housing Programs, Procedures and Organization Were Insufficient

for a Large Scale Catastrophic Disaster ................................................ 124 B. There Was No Catastrophic Disaster Operational Plan ...................... 125 C. Policies Were Unclear and Inconsistently Applied ............................... 125 D. Delay and Exclusion ............................................................................... 126 E. Inadequate Staff, Poor Training and Insensitive Conduct .................. 126

VIII. Summary of Findings .................................................................................... 126

Chapter Four—The Role of the Department of Housing and Urban Development in Post-Katrina Housing ....................................................... 131

I. HUD’s Role in FEMA’s Post-Katrina Housing Response ........................... 136 A. The Katrina Disaster Housing Assistance Program (KDHAP) ........... 137 B. The Disaster Voucher Program (DVP) .................................................. 141 C. The Disaster Housing Assistance Program (DHAP) ............................ 142 D. Additional HUD Support ........................................................................ 151

II. The Decision Not to Utilize HUD in Lead Housing Role After Hurricane Katrina ........................................................................................................... 156 A. HUD’s Losing Battle With The White House and DHS ....................... 158 B. FEMA’s Conflict Over HUD’s Role ........................................................ 161 C. Alternate FEMA Planning Decisions During First Three Weeks of

Response ................................................................................................... 163 D. Attempts to Convey HUD’s Capabilities ............................................... 164 E. Ultimate Decision and Responsibility .................................................... 166

III. Calls to Expand HUD’s Role in the Future ................................................. 167 A. Demands Since 2005 and FEMA’s Response in 2009 ........................... 168 B. Formalization of DHAP .......................................................................... 169 C. DHAP-IKE ............................................................................................... 170

IV. Unanswered Questions .................................................................................. 171 A. Recognition, But Inaction, Regarding Housing Stock .......................... 172 B. Ability to Provide Housing Stock: Half of the Equation ...................... 173 C. Translating HUD’s Housing Capabilities to a Catastrophic Setting .. 178 D. Remaining Questions: Funding, the Other Half of the Equation ....... 181

V. Summary of Findings .................................................................................... 183

Chapter Five—The Effects of Federal Assistance After Katrina For State and Local Government ......................................................................... 186

I. Mississippi ...................................................................................................... 188 A. State Government ................................................................................... 188 B. Local Governments .................................................................................. 191

II. Louisiana ........................................................................................................ 193 A. The Louisiana Recovery Authority (LRA) ............................................. 193 B. City of New Orleans ................................................................................ 195 C. Housing Statistics ................................................................................... 199

III. Texas ............................................................................................................... 201 A. Harris County .......................................................................................... 201 B. City of Houston, Mayor Bill White ........................................................ 203

IV. Summary of Findings .................................................................................... 209


PageV

Chapter Six—Legal Action as a Consequence of FEMA’s Post-Katrina Housing Response ............................................................................................ 211

I. Class Action Litigation .................................................................................. 211 A. McWaters, et al. v. FEMA ....................................................................... 212 B. ACORN, et al. v. FEMA .......................................................................... 217 C. Ridgely, et al. v. FEMA ........................................................................... 218

II. Individual Claims—Public Interest Law Organizations ............................. 220 A. Need for Legal Assistance With Trailers, Section 408 Assistance,

Access, Eviction, and Delay Resulting From Housing Response ......... 220 B. Additional Housing Assistance Resulting From Legal Efforts ............ 223 C. Continued Problems ................................................................................ 223

Chapter Seven—FEMA’s Inability to Implement a Disaster Housing Strategy ............................................................................................................... 225

I. Introduction: FEMA Acknowledged the Need For Catastrophic Housing Plan Prior to Katrina, But Failed to Prepare and Implement Such a Plan .............................................................................................................. 225

II. The 2002 Plan ................................................................................................ 227 III. February 2004 Catastrophic Disaster Housing Strategy ........................... 229 IV. The 2005 Plan—The ‘‘Hurricane Pam’’ Exercise ......................................... 230

A. The Hurricane Pam Exercise ................................................................. 230 B. The 2005 Plan and Its Housing Provisions ........................................... 231

V. The 2002, 2004 and 2005 Plans Were Not Implemented or Operational Prior to Hurricanes Katrina and Rita .......................................................... 234

VI. FEMA’s Unsuccessful Housing Planning Immediately After Hurricane Katrina ........................................................................................................... 237 A. FEMA Did Not Use Pre-Katrina Housing Plans .................................. 237 B. FEMA Attempts to Draft a New Strategic Housing Plan Imme-

diately After Hurricane Katrina ............................................................ 238 VII. The 2004 National Response Plan and 2008 National Response Frame-

work ................................................................................................................ 241 VIII. FEMA’s Initial National Disaster Housing Strategy: Noncompliance

With PKEMRA ............................................................................................... 242 A. Congress Required FEMA to Prepare and Submit a National Dis-

aster Housing Strategy ........................................................................... 242 B. FEMA Submitted an Initial Strategy a Year After the Statutory

Deadline, Following Congressional Pressure and Senate Investiga-tion ............................................................................................................ 244

C. The Initial Strategy Failed to Comply With FEMA’s Legal Require-ments Under PKEMRA and Lacked Operational Housing Plans ....... 245

IX. FEMA’s Final National Disaster Housing Strategy: An Improved Foundation For Policy Reform, But More Planning and Development is Needed ........................................................................................................ 248 A. The Final NDHS—Text of the Strategy and Ten Key Components ... 249 B. Annexes to the Final Strategy Address the PKEMRA Requirements 258

X. Summary of Findings .................................................................................... 270

RECOMMENDATIONS ........................................................................................ 274



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