Daily Real Estate News  |  September 15, 2005  |   NAR Urges Congressional Action for Hurricane Relief The NATIONAL ASSOCIATION OF REALTORSŪ today strongly recommended that the U.S. Department of Housing and Urban Development make all of its vacant housing units, including foreclosed homes and Section 8 properties, available to victims of Hurricane Katrina. In a written statement submitted into the record by U.S. Rep. Gary Miller (R-Calif.) at a hearing held by U.S. House of Representatives' Subcommittee on Housing and Community Opportunity, NAR also spoke out in favor of many other government actions and laws that would provide relief to the people and communities that hardest hit by the hurricane. “The aftermath of Hurricane Katrina is a disaster unlike any ever experienced in the United States,” NAR said. “Extraordinary measures are going to be necessary to rebuild these communities, and return normalcy to the many victims devastated by Hurricane Katrina.” Many of the bills that NAR supports are related to natural disaster relief insurance. Among them:

“Flood Insurance Program Enhanced Borrowing Authority Act of 2005 (H.R. 3669),” which has already passed the U.S. House of Representatives, would temporarily increase the National Flood Insurance Program’s borrowing authority to pay claims after the devastating tragedies of Hurricane Katrina.

“Homeowners' Insurance Availability Act (H.R. 846)” would establish a federal program making reinsurance coverage available in order to improve the availability of homeowners’ insurance. As Louisiana, Mississippi, and Alabama strive to rebuild, a program of this type could assure that homeowners’ insurance is available and affordable to residents who wish to continue living in their communities.

"Policyholder Disaster Protection Act (H.R. 2668)" allows insurance companies to create reserve funds from pre-tax dollars in order to pay claims arising from future major natural disasters. This could help to protect insurance companies from devastating claims, like the ones they will face with Hurricane Katrina. Helping Victims Get Back on Their Feet Other actions backed by NAR would protect consumers and homeowners who have been affected by the hurricane. For example, due to mail disruptions, victims may be unable to receive proper billing notices from creditors, let alone pay them, for weeks and possibly months to come. NAR says victims should not have their credit histories suffer from late payments, which could prevent them from obtaining credit to rebuild their lives or purchase homes. By amending the Fair Credit Reporting Act, creditors would be prohibited from filing late payment information with credit bureaus during a state of emergency declared in a disaster such as Hurricane Katrina. NAR also encouraged Congress to waive penalties for good Samaritans who have broken occupancy requirements in order to provide housing for Katrina victims. Rebuilding Communities In addressing long-term solutions to rebuild after the hurricane, NAR says federal assistance will be needed to encourage private sector growth and development. “The need for significant amounts of capital to construct new housing will become acute,” NAR's statement says. As an incentive for rebuilding, NAR encourages Congress to enact some version of a bipartisan bill (H.R. 1549) that would provide a tax credit for up to half the cost of constructing or rehabilitating affordable housing. “This mechanism or similar incentive would be an important aid to generate capital for restoring housing to decimated communities,” NAR says. Likewise, small businesses in the three affected states will need economic assistance to allow them to once again assume the key role that they play in the region's economy. NAR asked Congress to act quickly to bolster the programs of the Small Business Administration. “We would ask that attention be paid to reviewing the eligibility criteria for SBA's [Small Business Administration] disaster assistance programs to ensure that these programs are able to address the needs of the area's smallest businesses—those owned and operated by independent contractors,” NAR says. Full NAR Statement Available Online Read NAR's full statement, which discusses several other initiatives that NAR believes would help individuals and the economy rebuild after the disaster. —REALTORŪ Magazine Online