Dallas accused of blocking evacuee aid

[TexasStooge]

City cites cash-flow problem in refusing to sign any more leases

By EMILY RAMSHAW / The Dallas Morning News

DALLAS, Texas - Hurricane Katrina evacuees and community activists lashed out Monday at Mayor Laura Miller, accusing her of blocking millions of dollars in federal assistance by refusing to have the city sign leases for displaced families.

The Mayor's Disaster Relief Fund – a private effort by Ms. Miller and local churches and corporations to aid storm victims after a painfully slow federal response – has helped clear out downtown shelters by subsidizing apartments and utilities for hundreds of registered evacuees.

But critics say "Project Exodus" has done nothing for the thousands of people living in area hotels and relatives' homes whose wallets are getting perilously thin.

"The permanent housing has not been extended to us," said Chandra Nelson, a New Orleans evacuee who has been staying at a Quality Inn in Dallas since the storm. "They've been allowing us to stay without paying. But time is running out."

Houston, with a pledge of reimbursement from the Federal Emergency Management Agency, has approved a $10 million emergency appropriation and signed leases for about 25,000 displaced persons, said Frank Michel, spokesman for Houston Mayor Bill White.

But Dallas officials say they've advanced FEMA millions of dollars and don't want to put any more taxpayer dollars at risk. The federal government needs to come up with a better option, they said.

"We can't afford to do that," Ms. Miller said. "It is a huge liability we will not take on."

Almost daily, FEMA sends out lists of costs the agency will reimburse municipalities for, City Manager Mary Suhm said.

The apartment program is one of them, she said. But Dallas doesn't have the cash lying around to support it, particularly in the traditionally low-flow months of October, November and December. Dallas residents pay property taxes in January.

"We've already advanced [FEMA] $2.5 million to $3 million, and we haven't got a check yet," Ms. Suhm said. "I'm looking for the most effective and efficient way to do this without causing jeopardy to the citizens who live here and pay taxes."

Signing leases for all of the city's evacuated families would cost the city up to $5 million a month, Ms. Miller said after a Monday morning budget briefing. Even with the reimbursement, she said, cash flow would be a problem.

"You'll have to ask Houston" how they're affording the cost, Ms. Miller said. "The city of Dallas' taxpayers should not be signing apartment leases for all these people."

If FEMA thinks this program is the way to go, Ms. Suhm said, officials should set up a housing office in Dallas and pour federal money directly into it – instead of funneling it through the state and the city. She's mentioned this to federal officials, she said, and they're considering it.

Hurricane evacuees, flanked by representatives from the Association of Community Organizations for Reform Now, or ACORN, said Monday they're thankful that the mayor's fund has helped so many people staying in Dallas shelters. But for those who have been put up in hotels and motels, they say, money is running out, and aid has yet to arrive.

And while the mayor and Ms. Suhm have been creative in finding ways to finance housing for displaced people, including selling Mardi Gras beads and soliciting large donations from corporations, ACORN representatives don't think a cash-flow problem is a reason not to sign leases. What part of "federal reimbursement" do top officials not understand, they ask?

"By doing this, Mayor Miller has said 'no' to millions of dollars in federal funding that would help stabilize Katrina survivors and get them on their feet," said ACORN chair Bobbie McGee. "It makes no sense to refuse to partner with FEMA. It makes no sense to refuse funding that would house people in desperate need."

Ms. Miller's fund, which is two-thirds of the way to its $3 million goal, is designed to subsidize the needs of hurricane evacuees relocated from Dallas shelters through their first 60 days in the city. The mayor, who spent Monday morning on the phone with Homeland Security officials in Washington, said they're working quickly to fix "the day 61 problem."

Ms. Suhm said she understands the concerns of those living in hotels and relatives' homes, trying to get by on their $2,000 debit cards from FEMA. She said that the Red Cross is still supporting these people and that the mayor's fund would focus on them as soon as city shelters are empty. That could be as early as this weekend.

Ms. Miller said she hoped to start relocating evacuees at the Sheraton Park Central, a hotel that has more than 600 – including 75 babies.

Cities across the state are devising their own systems to get evacuees out of shelters and into temporary housing, said Laird Basehoar, a FEMA spokeswoman based in Austin. Federal restrictions prohibit FEMA from signing apartment leases. But cities that foot the bill for evacuees will be reimbursed for all of their expenses, she said.

Mr. Michel, Mr. White's spokesman, said Houston has relocated close to 25,000 hurricane evacuees – most of them from city shelters – by signing leases and letters of intent on apartments.

But its challenge is hardly over. Houston still has about 54,000 people staying in hotel and motel rooms, Mr. Michel said.

Houston isn't concerned about cash flow, he said. FEMA still owes the city $3 million in reimbursements from Tropical Storm Allison in 2001, he said. That storm flooded portions of southeast Texas, including the Houston area.

"You have to fight these battles continually," he said. "So far, it's working for us."