FEMA hurricane housing tab near $3 billion

NEW ORLEANS, Aug. 26 (UPI) -- Federal officials insist they are not going to provide long-term housing for people displaced by the 2005 hurricanes on the U.S. Gulf Coast.

The Government Accountability Office said this week the tab for hotels and rental assistance for victims of Katrina and Rita had reached nearly $3 billion, which compares to less than $250 million spent on the previous six storms combined.

Officials told USA Today Tuesday the cost will continue to grow for the foreseeable future due to a continuing shortage of housing, although the Federal Emergency Management Agency is warning that funding will run out next spring.

"We're not here to establish long-term permanent housing," said Jim Stark, head of FEMA's Gulf Coast Recovery Office. "It is going to be a challenge as we approach three years."

Lawmakers and advocates in the area told USA Today Washington was dragging its feet in facilitating construction of affordable housing for the poor and elderly who are dependent on FEMA for a home.