Lawyers' Committee for Civil Rights Under Law
1401 New York Avenue, NW
Suite 400
Washington, DC 20005

For Immediate Release
Contacts Kim Alton, Lawyers’ Committee
(202) 662-8600

FEMA Transitioning Evacuees in Apartments

I. Overview
As of March 1, 2006 FEMA began transitioning evacuees in emergency sheltering/apartments paid for directly by state and local agencies (called Section 403), to regular rental assistance issued by FEMA to evacuees (called Section 408). The transition will occur at different times for different people, as evacuees and state agencies receive notice from FEMA.

Who is notifying who?

FEMA—Evacuee: FEMA has begun to send letter to evacuees in emergency sheltering apartments (Section 403) notifying them if they are eligible or ineligible for Rental Assistance (Section 408). FEMA will base eligibility for Section 408 Rental Assistance during this transition on the evacuee’s most recent rental assistance determination.
* Letters will be sent to all locations except Houston, TX

Caution: Evacuees must pay attention to whether their letters say they are eligible for 403 or 408. Evacuees may receive a letter that says they have been ELIGIBLE for 403 assistance but are now INELIGIBLE for 408 assistance because the FEMA system thinks that an evacuee is trying to apply for double benefits. In this case, an evacuee can talk to a FEMA representative and file an appeal.

FEMA — Region/ State: FEMA will send a list to state agencies notifying them of all evacuees in their state and indicate who is eligible or not eligible for rental assistance and to whom FEMA sent notices.

State—Landlord/Evacuee: Within 15 days of receiving notice from FEMA, a State must provide a 30-day lease termination notice to the landlord and the evacuee.

What is 408 Financial Housing Assistance?
FEMA will provide financial assistance by check or direct deposit to eligible individuals or households to use for renting housing.

Assistance will continue every three months for 18 months after the disaster, or until an evacuee reached his or her maximum limit of assistance from FEMA ($26,500). In order to receive continuing assistance, every three months the evacuee must complete and submit a checklist of documents needed to request additional assistance.

Fair Market Rent (FMR): If an evacuee is currently living in the State of Louisiana, where an average apartment is now very expensive, FEMA will adjust the amount of your rental assistance by 120% of the current FMR so that an evacuee can cover the cost of an apartment. If an evacuee currently lives in New Orleans or Baton Rouge, she or he will receive an additional adjustment of 120% of revised FMR for Louisiana. These are the only two adjustments in the nation so far.

408 Financial Housing Assistance will NOT cover expenses for Food, Utilities, Moving, Storage, Furniture, or Housing Security Deposits.

II. Who is eligible for Section 408 Rental Assistance?
• Those with a former residence located in a declared disaster area.
• Those without insurance or their insurance does not cover damage to former residence.
• Those currently not able to live in their former residence.

Why am I not eligible?
• You have other adequate rent free housing you could use.
• You were able to return to your home immediately after the hurricane.
• Your former residence was located in a designated flood, hazard area and your community is not participating in the National Flood Insurance Program.
• You are currently sharing a living space with the same person you lived with prior to the storm, and this person already receives 408 Assistance.

III. Those Eligible for 408 Assistance with Leases Ending BY March 31st
• Will receive rental assistance by check or direct deposit.
* If you live in the State of Louisiana you will receive rental assistance at 120% of the Fair Market Rate in order to cover the cost of rent in your area.

• May renegotiate your lease with the same landlord or find a new landlord.
• FEMA will not provide money for utilities unless your utilities are part of your rental price.
• FEMA will not provide money for a security deposit.

*If you do not receive any sort of notice from FEMA or the State, by March 31st, 2006, the State will extend and pay for your lease on a month-to-month basis until you receive the notice.

IV. Those Eligible for 408 Assistance with Leases Ending AFTER March 31st
•State will notify the landlord that it is terminating its commitment under the lease.
•May remain in apartment using rental assistance from FEMA until end of lease, or until you are no longer eligible for rental assistance.

o If the evacuee is the signer on the lease, she or he will receive rental assistance by check or direct deposit.

o If a local/state agency signed the lease, a private company contracted by the government will make rental payments to the landlord on behalf of the evacuee until the lease expires.

*If the landlord refuses to change the lease, FEMA will provide rental assistance for three months, and evacuee must find a new apartment.

• If the landlord and evacuee want FEMA to continue direct rental payments, the evacuee must become the signer on the current lease. Then, a company contracted through FEMA will enter an agreement with the landlord to pay evacuee’s rent on a month-to-month basis for the remainder of the lease, or as long as the evacuee is eligible for rental assistance.

* The amount the contractor pays for rent will depend on the actual number of bedrooms in the apartment for the first three months of the transition. After, FEMA will provide an amount of rental assistance based on the number of bedrooms needed for the size of the family. For example, if a mother is living in a three bedroom apartment with her baby, FEMA will only give the mother the amount of money she needs to rent a two-bedroom apartment, and the mother will have to pay for the extra bedroom out of her own pocket.

• At the end of the original lease, FEMA will provide the evacuee rental assistance by check or direct deposit in three-month periods, as long as she or he is eligible.
• FEMA will not provide money for utilities unless your utilities are part of your rental price.
• FEMA will not provide money for a security deposit.V. Those INELIGIBLE for 408 Assistance
• FEMA will send notices by April 15th to the evacuee and to local and state agencies identifying who is ineligible.
• States will send a 30-day lease termination to the landlord and to the evacuee no later than April 30, 2006.

*If a notice comes after April 30th , the State will provide emergency sheltering for an additional 30 days.

• The evacuee must leave the apartment after 30 days of the lease termination notice, or pay for the apartment and sign a new lease with the landlord.

• FEMA will pay the cost of terminating a lease early.Caution:
• Evacuees have a right to know why FEMA denied their application. Therefore, they should look for a specific reason for a denial on every denial letter from FEMA. Knowing and understanding the reasons for a denial will help an evacuee appeal FEMA’s decision.

• FEMA denial and approval letters contain a line called “Amount of Grant” with a dollar amount printed underneath. Denial letters show the amount $0.00. This means that you should not wait to receive a grant, instead you should file an appeal as soon as possible.

VI. Those Who Want to Appeal the Decision or Have a Pending Appeal
• An evacuee has 60 days from the date on your notice to appeal FEMA’s decision.
• An evacuee remains ineligible for rental assistance if she or he is waiting for a decision on an appeal on a request for 408 assistance, and she or he will receive a lease termination notice.

For assistance with appeals contact Legal Assistance Hotlines:
• Disaster Legal Project: 1-877-521-6242
• MS Center for Legal Services: 1-800-959-6752

VII. Those that have reached the limit for FEMA financial assistance but still have a continuing and verified (by FEMA) need for housing.
• To be eligible to receive Section 408 Direct Housing Assistance, the evacuee head-of-household must submit a request to FEMA for continued assistance after reaching the limit for financial assistance.

o Evacuee will have to complete and provide a checklist of documents needed to request continued direct assistance.

o FEMA will notify evacuee of his or her eligibility.

• Direct Housing Assistance is a temporary housing unit leased or purchased by FEMA for those that lack available housing resources. At the end of the 18 month period following the storm, FEMA may begin to charge rent for these units.

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