Community Disaster Loan Act of 2005

Community Disaster Loan Act of 2005 - Authorizes the transfer of up to $300 million in certain disaster relief funds to the Disaster Assistance Direct Loan Program (DADLP) for the cost of direct loans authorized by the Robert T. Stafford Disaster Relief and Emergency Assistance Act (the Act) to assist local governments in providing essential services. Authorizes the transfer, also, of up to $1 million of such funds to the DADLP for administrative expenses.

Amends the Act to eliminate the $5 million limit on the amount of any community disaster loans (but keep the limit of 25% of the local government annual operating budget for the fiscal year in which the major disaster occurs).

Repeals the requirement that repayment of all or part of any such loans be cancelled to the extent that the local government's revenues during the three fiscal years following the major disaster are insufficient to meet its operating budget. (Retains denial of such a government's eligibility for further assistance during any period in which it is in arrears on required repayment of such a loan.)

[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4024 Introduced in House (IH)]







109th CONGRESS
  1st Session
                                H. R. 4024

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


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            October 7, 2005

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

_______________________________________________________________________

                                 A BILL


 
 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.
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