To make funds available for community disaster loans to assist local governments in providing essential services following Hurricane Katrina, and for other purposes.

October 7, 2005

Mr. BAKER (for himself and Mr. JEFFERSON) introduced the following bill; which was referred to the Committee on Transportation and Infrastructure

To make funds available for community disaster loans to assist local governments in providing essential services following Hurricane Katrina, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the `Community Disaster Loan Act of 2005'.

SEC. 2. AVAILABILITY OF AMOUNTS FOR COMMUNITY DISASTER LOAN PROGRAM.

(a) Cost of Direct Loans-

(1) AUTHORITY TO TRANSFER AMOUNTS- Of the amounts provided in Public Law 109-62 for `Disaster Relief', up to $300,000,000 may be transferred to the Disaster Assistance Direct Loan Program for the cost of direct loans authorized by section 417 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5184) to be used to assist local governments in providing essential services.

(2) TERMS AND CONDITIONS- Amounts transferred under paragraph (1) shall be subject to the following terms and conditions:

(A) Such amounts may be used to subsidize gross obligations for the principal amount of direct loans not to exceed $400,000,000 under section 417 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act.

(B) Notwithstanding section 417(b) of such Act, the amount of any loan issued using such amounts may exceed $5,000,000.

(C) Notwithstanding section 417(c)(1) of such Act, repayment of all or any part of a loan issued using such amounts may not be canceled.

(D) The cost of modifying such loans shall be as defined in section 502 of the Congressional Budget Act of 1974 (2 U.S.C. 661a).

(b) Administrative Expenses- Of the amounts provided in Public Law 109-62 for `Disaster Relief', up to $1,000,000 may be transferred to the Disaster Assistance Direct Loan Program for administrative expenses to carry out the direct loan program authorized by section 417 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act.

SEC. 3. COMMUNITY DISASTER LOAN AMOUNTS AND REPAYMENT.

(a) Loan Amounts- Section 417(b) of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5184(b)) is amended--

(1) by striking `based on need, shall' and inserting `based on need and shall'; and

(2) by striking `, and shall not exceed $5,000,000'.

(b) Repayment- Section 417(c) of such Act (42 U.S.C. 5184(c)) is amended by striking `(c) Repayment- ' and all that follows through `(2) CONDITION ON CONTINUING ELIGIBILITY- A local government' and inserting the following:

`(c) Condition on Continuing Eligibility- A local government'.

(c) Applicability- The amendments made by subsections (a) and (b) shall apply to any loan made under section 417 of such Act after the date of enactment of this Act.

END