NEW ORLEANS – Hurricane Katrina evacuees around the nation who faced a deadline Saturday for checking out of their government-funded hotel rooms have received a reprieve: Federal officials will keep paying for the rooms beyond the Jan 7 date as they iron out issues arising from a class-action lawsuit.
One issue: The Federal Emergency Management Agency, which inherited the program from the American Red Cross, still does not have up-to-date records on the identities of evacuees in the hotel program or where they are staying, according to court papers filed last week by government lawyers.
Under a federal judge’s ruling last month, FEMA is required to keep the hotel program running until Feb. 7. However, U.S. District Judge Stanwood Duval said FEMA could stop paying for hotel rooms beginning Jan. 7 for evacuees who have been approved or disapproved for other FEMA housing aid, such as a trailer or rental assistance.
Now, the Jan. 7 date no longer holds, according to a flyer being distributed to hotels in the program. It says: “The program will continue for all evacuees in all states until further notice pending the resolution of certain issues now in litigation.”
As of mid-December, FEMA was footing the bill for an estimated 41,000 rooms, and the program had cost the agency $350 million.
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