A unique alliance of community and consumer organizations, labor unions, and the financial services industry is calling upon the federal government to provide substantial and immediate additional assistance to homeowners in the Gulf region to rebuild.

In a letter to President Bush and Congressional leaders, the alliance supported initial efforts to provide aid to Gulf Coast homeowners but pointed out that significant gaps remain due to the scale of the devastation. Many Gulf Coast residents simply do not have access to the financial resources needed to return and rebuild their homes or begin paying their mortgages. The organizations warned that unless immediate and significant additional action is taken to provide the resources necessary to rebuild damaged or destroyed housing many homeowners who wish to return home will lose their homes.

The organizations acknowledged that a successful rebuilding effort will involve cooperation with state and local governments and the private sector and they strongly supported the President’s proposal to allocate $4.2 billion to homeowners in New Orleans. This amount should not be restricted, but targeted to those with the greatest needs. They urged Congress to fund this proposal and to then begin consideration of the additional assistance that will be necessary. The organizations recommended that Community Development Block Grant funds that have already been appropriated be targeted to uninsured and underinsured consumers who want to rebuild. They urged consideration of adequate compensation to homeowners who will be unable to rebuild and called for innovative forms of assistance, including additional grants, subsidized loans or loan guarantees and additional initiatives to help communities to rebuild.

The organizations listed below stand ready to work cooperatively with the Administration and Congressional leaders as they move forward in putting forth proposals that will assist homeowners to return, rebuild and revitalize the communities that were so devastated by these disasters.

AFL-CIO
ACORN
Catholic Charities USA
Center for Responsible Lending Coalition for Fair and Affordable Lending
Consumer Federation of America
Consumer Mortgage Coalition
Housing Policy Council, Financial Services Roundtable Housing Education and Economic Development of Mississippi
Independent Community Bankers Association
Leadership Conference on Civil Rights
Mississippi Center for Justice
Mortgage Bankers Association
National Association for the Advancement of Colored People (NAACP)
National Association of Consumer Advocates
National Community Reinvestment Coalition
National Consumer Law Center
National Fair Housing Alliance
National Home Equity Mortgage Association 

Media Contacts:
ACORN - Kevin Whelan, 985-960-1108
Center for Responsible Lending - Mike Flagg, 202-349-1862
Consumer Federation of America - Travis Plunkett, 202-387-6121 x 105
Consumer Mortgage Coalition - Anne Canfield, 202-544-3550
Mortgage Bankers Association - Theresa Schofield, 202-557-2924
National Community Reinvestment Coalition - Rachel Maleh, 202-464-2717
Housing Policy Council, The Financial Services Roundtable - Jennifer Smith, 202-589-2426