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May 30th, 2007
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House turns back on 'equal' bill
By JIMMY GALVAN Managing Editor

The U.S. House of Representatives once again took another swipe at Texas in turning back an amendment, which would have provided equal treatment for communities devastated by Hurricane Rita.

The amendment, backed by the entire Texas delegation and proposed by U.S. Congressman Kevin Brady (RWoodlands), 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 260-163.

"I wasn't surprised but I'm not discouraged either," Brady said. "This is a new Congress and they just don't know how devastating Hurricane Rita was in Texas.

"I think we actually educated some of the Democratic leaders about the impact of the hurricane," Brady said. "Even though we lost the vote, I have had some pretty good discussions about helping Texas. We lost the first inning but I'm not sure about the end of the game right now. I feel pretty good that we are going to get some help."

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," Brady said. "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 percent of the fund's first-year assistance while Mississippi will get 30 percent.

Under Brady's amendment Louisiana and Mississippi were scaled back a mere five percent each, providing 10 percent 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," Brady said. "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 percent) would receive approximately $364 million, Mississippi (20 percent) would receive $104 million and Texas (10 percent) would have received $52 million in for communities in East and Southeast Texas that remain in desperate need of adequate housing.

Brady said the bill would now go to the Senate where it will probably head to a conference committee where it will be amended.

"There should be two or three more opportunities to try to get help," Brady said.

"The debate on this bill really gave us a chance to raise the awareness on Hurricane Rita's effect in southeast Texas.

The Brady amendment directs a small portion of the Affordable Housing Fund to ensure equal treatment to rebuild communities in both Louisiana and Texas recovering from Hurricane Rita. The modified allocations are as follows:

t Texas Department of Housing and Community Affairs - 10 percent for affordable housing needs arising from Hurricane Rita.

t Louisiana Housing Finance Agency - 70 percent for affordable housing needs arising from Hurricanes Rita and Katrina.

t Mississippi Development Authority - 20 percent for affordable housing needs arising from Hurricanes Rita and Katrina.

"Our argument was that you can't split a hurricane along state lines," Brady said.

"When you help the family in Lake Charles, you have to equally help the family in Jasper as well.

"I didn't like the vote and I would have preferred to win," Brady said. "But I think we put ourselves in a position to get some help."