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U.S. House Rejects Housing Aid for Rita Communities

By: Jessica Peetoom
| Published 05/23/2007

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Brady Amendment Falls 163-260

WASHINGTON, D.C. -- On Tuesday, May 22, the U.S. House turned back an amendment by U.S. Congressman Kevin Brady (R-The Woodlands), which provided equal treatment for Texas communities devastated by Hurricane Rita as Louisiana communities hurt by the same hurricane. The amendment, backed by the entire Texas delegation, would have directed Texas to receive 10 percent of the new Affordable Housing Fund to help families build affordable houses - which would have made $52 million available for new housing. The amendment failed 163-260.

The amendment, designed to prevent Washington from splitting Hurricane Rita along state lines, was offered to H.R. 1427, the Federal Housing Finance Reform Act of 2007.

"It's unfair that Hurricane Rita victims in Texas are ignored while communities in Louisiana get help for the same storm and the same devastation," said Brady. "Housing is the number one need in east and southeast Texas and we've got families who are hurting terribly from Rita."

Under the current bill, Louisiana would receive 75% of the fund's first year assistance while Mississippi will get 30%. Under Brady's amendment Louisiana and Mississippi were scaled back a mere 5% each, providing 10% for Texas which saw 70,000 homes damaged or destroyed in Hurricane Rita.

Brady is not giving up and is working with Financial Services Chairman Barney Frank to address the inequity.

"While the vote is disappointing, this doesn't necessarily mean that Congress will turn its back on our Texas communities. This is a new Congress that needed to be educated about the 'forgotten hurricane'. We got their attention and I'm hopeful that before the bill goes to the President that we'll get some help for Texas. We're going to fight hard to get it in."

The CBO estimates that the Affordable Housing fund will distribute a total of $520 million in its first year. Therefore, as divided by Brady's amendment, Louisiana (70%) would receive approximately $364 million, Mississippi (20%) would receive $104 million and Texas (10%) would have received $52 million in for communities in East and Southeast Texas that remain in desperate need of adequate housing.
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