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Gov. Scott: Action Plan Submitted for $616 Million for Housing, Economic Development Following Hurricane Irma

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Governor Rick Scott today announced the state’s action plan for the $616 million allocated to Florida’s long-term recovery efforts from Hurricane Irma has been submitted to the U.S. Department of Housing and Urban Development (HUD). The funding comes to the state through the Community Development Block Grant – Disaster Recovery (CDBG-DR) program and will be used to replace and repair damaged homes, build new affordable housing and provide grants to severely impacted businesses. HUD now has 45 days to provide feedback or to approve the plan. CDBG-DR funding is provided to a state after all other resources have already been exhausted, including federal assistance through FEMA and the Small Business Administration as well as private insurance.

Governor Scott said, “Even before Hurricane Irma made landfall, we began working with the federal government to express the diverse needs our state would face following a storm of this magnitude and how best to address those needs. Since the storm, we have worked tirelessly along-side community and business leaders to build stronger communities that are better prepared for future disasters. I’m glad that DEO submitted this plan to help families in our state.”

This federal grant program requires that at least 80 percent of funding be used to address needs in the hardest-hit counties and ZIP codes as determined by HUD. These areas include Brevard, Broward, Collier, Duval, Lee, Miami-Dade, Monroe, Orange, Polk and Volusia counties, as well as ZIP codes 32136, 32091, 32068 and 34266.

Over the past few months, the Florida Department of Economic Opportunity (DEO) visited with each of the 14 hardest-hit communities to hear directly from community leaders about their remaining needs following Hurricane Irma. Additionally, surveys were sent to each community, seeking input on how to best support local long-term recovery.

Cissy Proctor, Executive Director of DEO, “We are thankful to these communities for their commitment and partnership to determine the best way to use this funding to make a difference across the state. We are committed to helping Floridians recover, particularly families who do not have the resources to rebound as quickly after a disaster.”

Together, with Florida’s hardest-hit communities, the state has proposed to allocate the majority of CDBG-DR funding to address housing needs through programs that:

  • Repair and replace damaged homes;
  • Construct hundreds of new affordable rental housing units;
  • Purchase land for the development of affordable housing; and
  • Provide assistance through grants to support impacted businesses.

Additionally, the state action plan includes opportunities to address critical economic and infrastructure needs in our urban centers and rural communities, specifically those of the Florida Keys which experienced the brunt of this devastating storm. Also, this plan helps to support the needs of new Floridians who moved to our state from Puerto Rico following Hurricane Maria.

For more information about the CDBG-DR program or to view the state action plan, click here.

Volunteer Florida Distributes $5 Million to Fund Hurricane Irma Recovery Efforts

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Volunteer Florida, the state’s agency responsible for securing volunteers and donations before, during and after disasters, distributed more than $5 million from the Florida Disaster Fund Hurricane Irma Recovery Grant today. Following a competitive Request for Proposal process, 33 different organizations, providing crucial repair, restoration and reconstruction or replacement services throughout Florida, were selected to receive the funding.

The Florida Disaster Fund was established to assist communities as they respond to and recover from emergencies or disasters. Last September, Governor Scott activated the fund to finance organizations, like the recent grantees, that serve those impacted by Hurricane Irma.

“Volunteer Florida is proud to support organizations that invest in Florida’s future and prove the state’s resiliency,” said Vivian Myrtetus, CEO of Volunteer Florida. “From community-wide transformations to satisfying individual needs, these funds will be used to ensure the devastating effects of Hurricane Irma do not stand in the way of Floridians’ continued success.”

The grantees are as follows:

  • Centro Campesino: $250,000.00
  • Florida Regional Interfaith Interagency Emergency Network in Disaster, Inc.: $250,000.00
  • Volusia Interfaith Agencies Networking in Disaster: $250,000.00
  • Rebuilding Together Tampa Bay, Inc.: $250,000.00
  • St. Johns Housing Partnership, Inc.: $250,000.00
  • Lake and Sumter Recovery, Inc.: $250,000.00
  • Catholic Charities of the Diocese of Palm Beach, Inc.: $250,000.00
  • Habitat for Humanity of Lee and Hendry Counties, Inc.: $250,000.00
  • Long Term Recovery Group, Monroe County: $250,000.00
  • The Immokalee Unmet Needs Coalition: $250,000.00
  • Samuel’s House (DBA KeysStrong.org): $250,000.00
  • Hearts & Hands Disaster Recovery: $250,000.00
  • Florida Conference of the UMC Disaster Recovery Ministry, Central Florida: $175,000.00
  • Florida Conference of the UMC Disaster Recovery Ministry, Northeast Florida: $175,000.00
  • Florida Conference of the UMC Disaster Recovery Ministry, Tampa Bay: $175,000.00
  • Florida Conference of the UMC Disaster Recovery Ministry, Collier County: $175,000.00
  • Florida Conference of the UMC Disaster Recovery Ministry, Monroe County: $175,000.00
  • Compass 82: $150,000.00
  • Disaster Services Corporation, St. Vincent de Paul, USA: $150,000.00
  • United Way of Broward County: $150,000.00
  • The Business & Technology Development Corporation: $150,000.00
  • Recover Pinellas: $128,619.00
  • Catholic Charities of the Archdiocese of Miami, Inc.: $106,092.00
  • BRACE: $100,000.00
  • Feeding Northeast Florida: $100,000.00
  • Orange County Long Term Recovery Group: $100,000.00
  • Farm Share, Inc.: $100,000.00
  • Catholic Charities, St. Augustine Regional Office: $100,000.00
  • National Church Residences Foundation: $100,000.00
  • Northeast Florida Builders Association, Builders Care, Inc.: $100,000.00
  • Naples Senior Center at JFCS: $100,000.00
  • LTRO of Citrus County: $100,000.00
  • St. Johns/Putnam County Long Term Recovery Organization: $50,000.00

Volunteer Florida is the Governor’s lead agency for volunteerism and national service in Florida, administering more than $32 million in federal, state and local funding to deliver high-impact national service and volunteer programs in Florida. Volunteer Florida promotes and encourages volunteerism to meet critical needs across the state, and also serves as Florida’s lead agency for volunteers and donations before, during and after disasters.  

Established in accordance with Section 14.29 (9), Florida Statutes, the Volunteer Florida Foundation is a 501(c)(3) organization. The Florida Disaster Fund, administered by the Volunteer Florida Foundation, was established in 2004 to assist with needs unmet by other disaster relief organizations.

Commissioner Adam H. Putnam’s Statement on House Passing Disaster Spending Bill with Funding for Florida Agriculture

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TALLAHASSEE, Fla.–Florida Commissioner of Agriculture Adam H. Putnam today issued the following statement following the U.S. House of Representatives passing an $81 billiondisaster spending bill, which includes $2.6 billion for agricultural assistance:

“Today’s vote is an important first step to get Florida’s farmers, ranchers and growers, who suffered more than $2.5 billion damages from Hurricane Irma, long-awaited and desperately needed relief. Without this emergency assistance, Florida agriculture cannot fully recover from the unprecedented damage it suffered.

“I want to thank Representative Rooney, Representative Buchanan, Governor Rick Scott and the members of Florida’s congressional delegation who supported this effort and fought for Florida agriculture over the last days, weeks and months. But even with today’s vote, much work remains, and I will continue to work with leaders in Washington to make sure this emergency assistance becomes a reality.”

In the wake of Hurricane Irma, Commissioner Putnam announced that Florida agriculture sustained more than $2.5 billion in damages. In weeks following Hurricane Irma, and again this week, Commissioner Putnam traveled to D.C. to discuss the agricultural damage and to request federal assistance with Florida’s Congressional Delegation.

For more information about the Florida Department of Agriculture and Consumer Services, visit FreshFromFlorida.com.

Gov. Rick Scott: Congress Must Pass Hurricane Disaster Relief Funding

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NAPLES, Fla. – Today, Governor Rick Scott issued the below statement urging Congress to pass a disaster relief funding package which includes critical funding for local school districts enrolling students displaced from Puerto Rico, supports key infrastructure projects, and provides relief for citrus and agriculture in Florida.

Governor Scott said, “For more than three months, Floridians have been fighting to recover from the horrible destruction of Hurricane Irma, especially those in Florida’s citrus industry. Now, while we continue to recover from Hurricane Irma, we are also lending a helping hand to our neighbors from Puerto Rico who have been displaced by Hurricane Maria and are now coming to Florida.

“The much-needed disaster relief funding recently proposed by the U.S. House of Representatives is encouraging. For months, I have been urging the federal government to assist Florida’s recovery and I am glad to see that they have listened to our requests and included it in their proposal. The recovery funding would aid Florida citrus growers, help our school districts educate displaced students from Puerto Rico, and assist to repair Florida infrastructure. Now, Congress must vote and pass a bill immediately.

“Congress also needs to make it clear that the funding included in their package for infrastructure projects should go toward the needed critical repairs to the federal Herbert Hoover Dike surrounding Lake Okeechobee. As Hurricane Irma was bearing down on our state, we were forced to evacuate communities surrounding the lake due to safety concerns identified by the Army Corps of Engineers. The lake reached dangerous levels, and Florida cannot go through another hurricane season without exploring all avenues of federal funding to fix the dike. For the first time, we secured $50 million in state funding to help expedite these federal repairs this year, and it is imperative that Congress acts on this federal project now.” 

Action taken by Governor Scott to urge federal disaster relief:

  • On October 5th, the Governor entered into a host-state agreement with FEMA – Florida is the only state willing to enter into this type of agreement to help families displaced by Hurricane Maria.
  • On October 6th, Governor Scott spoke with U.S. Secretary of Agriculture Sonny Perdue.
  • On October 11th, Governor Scott traveled to Washington D.C. joined by Agriculture Commissioner Adam Putnam to meet with members of the Florida congressional delegation to discuss Hurricane Irma and Florida’s citrus industry.
  • On October 11th, Governor Scott met with Chairman of the House Appropriations Committee Congressman Rodney Frelinghuysen, Chairman of the House Committee On Agriculture Congressman Mike Conaway, Chairman of the House Committee on Homeland Security Congressman Michael McCaul, and Congresswoman Jenniffer González-Colón.
  • On October 11th , November 13th and November 17th, the Governor spoke with White House Office of Management and Budget Director Mick Mulvaney.
  • On October 30th, the Governor’s office sent a letter Office of Management and Budget. See the letter HERE.
  • On November 9th, the Governor activated the State Emergency Response Team to assist families displaced by Hurricane Maria. See the Governor’s press release HERE.
  • On November 15th, the Governor sent a letter to U.S. Senate Majority Leader Mitch McConnell and House Speaker Ryan urging them to support Florida’s recovery following Hurricane Irma, Florida’s efforts to support those displaced from Puerto Rico by Hurricane Maria and the U.S. Army Corps of Engineers ongoing repairs to the Herbert Hoover Dike. See the Governor’s letter HERE.
  • On November 28th, Governor Scott spoke with U.S. Department of Housing and Urban Development Secretary Ben Carson.
  • On December 15th, the Governor spoke to House Speaker Paul Ryan urging immediate action to help Florida citrus growers.
  • On December 19th, the Governor spoke with Chairman of the Senate Appropriations Subcommittee on Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Senator John Hoeven.
  • On December 19th, the Governor spoke with Congressman Vern Buchanan regarding citrus relief.
  • On December 20th, Governor Scott spoke with U.S. Secretary of Agriculture Sonny Perdue.

Commissioner Adam H. Putnam’s Statement on Inclusion of Funding for Florida Agriculture in Disaster Spending Bill

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TALLAHASSEE, Fla.–Florida Commissioner of Agriculture Adam H. Putnam today issued the following statement regarding the U.S. House of Representatives’ proposed $81 billion disaster spending bill, which includes $2.6 billion for agricultural assistance:

“Florida’s farmers, ranchers and growers suffered unprecedented damage from Hurricane Irma, and today’s announcement of proposed emergency funding for Florida agriculture is the first bit of good news we’ve heard in months.

“I want to thank Representative Rooney, Governor Rick Scott and the entire Florida congressional delegation for working tirelessly to get Florida agriculture the relief it desperately needs. I will continue to work with leaders in Washington to make sure that this funding becomes a reality so Florida’s agriculture industry can continue to do what it does best: feed our state, our country and the world.”

In the wake of Hurricane Irma, Commissioner Putnam announced that Florida agriculture sustained more than $2.5 billion in damages. In weeks following Hurricane Irma, Commissioner Putnam joined Governor Rick Scott in Washington D.C to discuss the agricultural damage and to request federal assistance with Florida’s Congressional Delegation.

For more information about the Florida Department of Agriculture and Consumer Services, visit FreshFromFlorida.com.

Gov. Scott: More Than 1 Million Volunteer Hours Served Following Hurricanes Irma and Maria

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Governor Rick Scott and Volunteer Florida today announced that volunteers have served more than one million hours in Florida following Hurricanes Irma and Maria. To date, more than 22,500 volunteers have donated their time to assist those affected by these storms, and disaster relief organizations have documented 1,003,394 hours of volunteer service. Volunteer Florida continues to encourage Floridians who want to volunteer to find more information about their local volunteer organizations and opportunities HERE.
Governor Scott said, “As families come together to celebrate Thanksgiving with their loved ones, we are all thankful for the hard work of the many selfless volunteers who have responded to those in need following Hurricanes Irma and Maria. I’m proud to recognize the thousands of volunteers from across the state who have dedicated more than one million hours to helping others. We will continue to work together to help families recover from these storms and I encourage all Floridians who are able to consider volunteering in their own communities.”
As the state’s lead agency for volunteers and donations before, during, and after disasters, Volunteer Florida works closely with the Florida Division of Emergency Management, local and state government, the private sector, and nonprofit partners to coordinate volunteers and donations during times of need. Additionally, the Volunteer Florida Foundation administers the Florida Disaster Fund, the state’s official private fund for disaster response and recovery. The Florida Disaster Fund has raised more than $14.5 million to support those impacted by Hurricane Irma.
Volunteer Florida Chief Executive Officer Vivian Myrtetus said, “Volunteers are a critical part of Florida’s emergency response efforts, serving side-by-side with emergency management personnel in the days, weeks, months, and years following major disasters. We are proud of our state’s volunteers and grateful for the strong support of Governor Scott and the Division of Emergency Management.”

Nelson seeks funding for schools impacted by Irma, Maria

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As Congress begins work on a third disaster supplemental bill to help fund recovery efforts in areas hit hardest by Hurricanes Maria, Irma and Harvey, U.S. Sen. Bill Nelson (D-FL) today urged Senate appropriators to include in the bill additional funding to help schools impacted, both directly and indirectly, by the storms.
It’s been nearly two months since Hurricane Maria devastated the island of Puerto Rico and already more than 140,000 Puerto Ricans have arrived in Florida, with tens of thousands more expected to arrive in the coming months. Among those evacuating to the mainland are thousands of children and students looking to continue their educations by enrolling in schools throughout Florida.
According to local school districts, more 3,300 displaced students have already enrolled in schools throughout Orange and Osceola counties, while more than 600 students have enrolled in schools in Miami-Dade County. The sudden influx of students can place a tremendous strain on a local school district’s budget and resources.
“In the wake of Hurricanes Katrina and Rita, Congress acted to ensure additional resources were allocated to ensure our schools could serve and educate children, especially those displaced by the storms,” the lawmakers wrote. “We ask Congress to take a similar approach that recognizes the financial needs of our schools to support students and their families experiencing homelessness in this time of dire need.”
Congress is expected to take up and pass a third disaster supplemental bill before the end of the year.
In addition to Nelson, the letter sent today was signed by Sens. Richard Blumenthal (D-CT), Kamala Harris (D-CA), Edward Markey (D-MA), Christopher Murphy (D-CT) and Elizabeth Warren (D-MA).
Following is text of the senators’ letter, a pdf copy is available here.

November 14, 2017

Dear Chairman Cochran, Vice Chairman Leahy, Chairman Blunt, and Ranking Member Murray,
As Congress crafts a supplemental appropriations package to help areas affected by recent disasters, including Hurricanes Maria, Irma, and Harvey, we ask you to consider the needs of local educational agencies (LEAs), Head Start agencies and early childhood education programs, in addition to colleges and universities. As many students are forced out of their schools as a result of these disasters, it is critical to think about the areas both directly affected by the natural disasters, as well as the areas that are enrolling displaced students.
Without additional resources, our public schools, and colleges and universities will not be able to create an environment where our students can learn, which is absolutely critical for students who have been forced out of their old schools.
The school systems in Puerto Rico and the U.S. Virgin Islands are in a state of crisis. Many schools on the island remain closed, without electricity and water, one month after Hurricane Maria hit the island. It could be several weeks or even months before students can return to their schools.
With numerous weeks and possibly months of closed doors, thousands of children are displaced and meet the federal definition of homelessness in the education subtitle of the McKinney-Vento Act. Students are further challenged by a lack of food and a safe space that they have come to rely on at school.
It is vital that Congress consider these needs and provide significant funds to address the needs of students, families, and staff the areas affected by recent storms and natural disasters.
Across Florida, Texas, Puerto Rico and the U.S. Virgin Islands, our schools, Head Start agencies, and other early childhood education programs, will need substantial financial assistance to restart school operations, capital funding to repair and rebuild facilities, and funding for supplemental health, including mental health services for students and staff affected by the storms.
As thousands of Puerto Rico residents are being forced to leave their homes and schools, LEAs in Florida, New York, and many other states are welcoming the families and children. While some have been able to temporarily relocate to mainland campuses, most students are left with few resources and limited options.
It is important that LEAs serving children from preschool through grade 12, Head Start agencies, colleges and universities have the necessary resources to provide a high-quality education for all of their students, especially evacuees who are trying to restart their education and rebuild their lives. In addition, these students may need additional language supports to learn the English language, which should be carefully considered as you put together additional aid packages.
In the wake of Hurricanes Katrina and Rita, Congress acted to ensure additional resources were allocated to ensure our schools could serve and educate children, especially those displaced by the storms. We ask Congress to take a similar approach that recognizes the financial needs of our schools to support students and their families experiencing homelessness in this time of dire need.
We stand ready to work with you to address the educational needs of all students affected by these devastating hurricanes. Thank you for your attention to this matter.

Sincerely,

More than One Billion in Reinsurance Payments Now in Florida Market as Irma Claims Are Paid

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Reinsurance Providing the Capital to Pay Claims and Write New Business

In early September, almost the entire state of Florida was affected by Hurricane Irma, creating over 700,000 claims estimated at $4.6 billon with only 30 percent of claims closed, per preliminary filings with the Florida Office of Insurance Regulation. Meanwhile catastrophe modeling firms project Florida (and rest of US) property insurance losses (residential, commercial and private flood) will eventually reach $20 billion. Puerto Rico’s experience with Hurricane Maria demonstrates what Irma could have done to Florida with a different path, very similar to Hurricane Matthew’s near miss last year. Floridians well remember the horrific hurricane years of 2004 and 2005 and know that 2017 could have been much worse. Fortunately, just over a month later, many homeowners and businesses are in the process of rebuilding and opening for business after receiving prompt payment for their insurance claims. These payments were made quickly due to the prudent decisions by the insurance industry, the regulator and the Florida Legislature to invest in reinsurance over the past decade.
For the past 10 years, the Florida Legislature and private insurers alike have made strategic investments in reinsurance to back private policies and policies held by Citizens Insurance, as well as the Florida Hurricane Catastrophe Fund (FHCF). The Florida Office of Insurance Regulation has regulated the market in such a way as to encourage the formation of a “home grown” domestic insurance business that has created a competitive market and many insurer choices for Floridians. In turn this has reduced the potential taxpayer burden by creating opportunities for home owners to find insurance outside of the Citizens residual market.
The use of reinsurance has “globalized” Florida’s risk thus leading to lower insurance prices and reducing the burden on Florida’s taxpayers. Recently, the historically low cost of reinsurance has incentivized private insurance firms to increase investments in reinsurance. Hurricane Irma’s residential property damage will likely not reach a level that will trigger the FHCF, however, the storm serves as a warning of what could have been. Had Irma stayed on the original track through much of South Florida, damage would likely have been much more severe. Hurricane Irma serves as proof positive that the Florida Legislature acted prudently when making decisions to invest in more private reinsurance, making more capital available should future storms have a more catastrophic impact.
“Private reinsurers called us the day after Irma’s landfall and asked us how much money they should wire into our accounts. By now several billion dollars have been wired into the accounts of Florida domestic insurers. Reinsurance supplements our capital and these expedited reinsurance payments allow us to speed claim payments to our customers and provide liquidity so there is no constraint on writing new business. A healthy reinsurance market unrestrained by regulatory or tax protectionism is absolutely necessary for our market to meet Florida consumers’ needs,” said Don Matz, President of Tower Hill Insurance Group. Tower Hill is a top ten Florida home insurer.
“Florida absorbs reinsurance from around the world. The biggest share comes from Bermuda reinsurers, the largest providers of reinsurance to our domestic home insurance market,” said Cecil Pearce, President of the Florida Insurance Council. “More than 40 percent of Irma home insurance claims in Florida will likely ultimately be reimbursed by Bermuda reinsurers. Florida’s insurance regulators have long recognized this and maintain an excellent relationship with Bermuda’s insurance regulator. Bermuda maintains robust regulatory capital requirements, transparent risk disclosures and requires public financial statements for its regulated reinsurers. Bermuda’s reinsurance regulation has been found by the NAIC to meet or exceed US state based regulatory requirements.”
“In terms of property catastrophe claims, we are still seeing loss development following the recent hurricanes, and this will continue for some time,” said Eric Andersen, CEO of Aon Benfield, Florida’s largest reinsurance broker. “We are working with our clients to understand the impact of these losses on the market overall, recognizing that there are many variables at play. Reinsurers are promptly paying their Florida clients’ reinsurance claims for Hurricane Irma, and in this regard more than $1 billion has been already advanced at this time. As claims develop further we anticipate reinsurers will continue to provide funds to clients. Reinsurers play a critical role in providing liquidity in Florida’s home insurance market, and in so doing promote the diversification of risk globally and the narrowing of the protection gap – the difference between economic losses and insured losses when a natural catastrophe occurs. This helps to promote capital efficiency in the risk transfer process.”
“The value reinsurers provide is three-fold,” explained Brad Kading, President and Executive Director of the Association of Bermuda Insurers and Reinsurers (ABIR). “First, advancing cash for liquidity so insurance clients can pay consumer claims; second, transferring risk around the world and diversifying it, so the cost of hurricanes is not solely paid by policyholders and taxpayers in the affected area; and, third, by providing balance-sheet protection so while insurers are liquidating assets to pay claims, additional funds provided by reinsurers allow them to continue selling new insurance contracts daily and still meet regulatory capital targets. That helps consumers get repairs made faster and helps local economies to recover, rebuild and return to productivity.”
The Florida Insurance Council’s mission is to provide value through education, research, and representation before consumer, legislative, regulatory, and judiciary organizations. The Council is dedicated to the highest standards of business ethics and professionalism; committed to promoting and protecting the viability of the insurance market; resolved to earn consumer confidence and trust, and determined to foster a positive public image of the insurance community.

Nelson calls on feds to help students affected by storms

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U.S. Sen. Bill Nelson (D-FL) is leading a group of senators in calling on the U.S. Dept. of Education to use its discretion to help students displaced or otherwise unable to continue their education in the wake of Hurricanes Irma and Maria.
“Nearly 250,000 college students have been displaced by Hurricanes Irma and Maria in the middle of their academic year,” the senators wrote today in a letter to Secretary of Education Betsy DeVos. “We respectfully request you work closely with students and institutions in Puerto Rico and the U.S. Virgin Islands to ensure students have the ability to continue their education without having to worry about the stress of how they will have to pay for it.”
According to the U.S. Department of Education, approximately two-thirds of the 246 schools in Puerto Rico and the USVI remain closed as the islands struggle to restore power after the storms.
“Nearly 10 percent of Puerto Rico’s population have federal student loans,” the lawmakers wrote. “Many of these students continue to be without power, telephone, or internet service needed to make payments on their loans or to request assistance from their student loan servicers. … we urge you to exercise your discretion to enroll borrowers impacted by Hurricane Maria in interest-free administrative forbearance for a minimum period of six months, or until Puerto Rico and the U.S. Virgin Islands are no longer considered to be in a disaster zone.”
In addition to Nelson, the letter was signed by Sens. Patty Murray (D-WA), Richard Blumenthal (D-CT), Cory Booker (D-NJ), Maria Cantwell (D-WA), Kirsten Gillibrand (D-NY), Kamala Harris (D-CA), Christopher Murphy (D-CT) and Elizabeth Warren (D-MA).
Following is the text of the lawmakers’ letter, a PDF copy is available here.

October 20, 2017

The Honorable Betsy DeVos
Secretary
U.S. Department of Education
400 Maryland Avenue, SW
Washington, D.C. 20202-8510
Dear Secretary DeVos,
We write with great concern for students and borrowers who have been affected by Hurricanes Irma and Maria. Puerto Rico and the U.S. Virgin Islands have suffered catastrophic damages due to these storms, knocking out Puerto Rico’s electric grid and leaving 3.4 million Americans with no power in the days following the storm. There are a number of concerns we must address as the island continues to recover and rebuild, including the fact that colleges and universities had to close their doors until they are able to restore functioning capacity. According to the most recent data we have received from the U.S. Department of Education (“Department”), approximately two thirds of the 246 campuses in Puerto Rico and the U.S. Virgin Islands are closed or have an operational status of unconfirmed. Thousands of students and families in Puerto Rico do not have access to the educational opportunities as a result of schools shutting down and many of these students have invested personal resources to build their future.
Nearly 250,000 college students have been displaced by Hurricanes Irma and Maria in the middle of their academic year and many of these students rely on federal grants and loans to pay for school. During a time of chaos and distress for colleges, universities, and the students they serve in the affected areas, we are concerned that both institutions and students will have a difficult time navigating through the complex student aid processes, such as rules governing the return of Title IV funding and subsidized loan eligibility. We urge the Department to offer critical assistance to students, as well as the colleges and universities, by expanding direct outreach to inform individuals of their options, particularly options for students and borrowers unable to complete their school year as a result of the hurricanes.
In addition, we urge you to use the statutory discretion available for you to expand the waiver of requirements for students to repay their balance of Pell Grant awards, particularly for those students who have had to temporarily discontinue their education due to the disaster affecting their institution or local community. This will bring further relief to students during this time of distress.
Nearly 10 percent of the Puerto Rico’s population have federal student loans. Many of these students continue to be without power, telephone, or internet service needed to make payments on their loans or to request assistance from their student loan servicers. Unfortunately, the Department has not yet published any robust instructions for these borrowers beyond instructing them to contact their servicers, which many cannot do. Your Department has unfettered authority during a national emergency to automatically enroll borrowers into administrative forbearance and to do so without charging borrowers interest that will capitalize on their loans. We urge you to exercise your discretion to enroll borrowers impacted by Hurricane Maria in interest-free administrative forbearance for a minimum period of six months, or until Puerto Rico and the U.S. Virgin Islands are no longer considered to be in a disaster zone.
We also urge you to direct federal student loan servicers to extend or suspend deadlines for providing student loan documentation, such as annual documentation of income for the income-driven repayment plans, for impacted borrowers for as long as the law allows and until Puerto Rico and the U.S. Virgin Islands are no longer considered to be in a disaster zone.
As the affected areas continue to rebuild after Hurricane Irma and Maria, we respectfully request you work closely with students and institutions in Puerto Rico and the U.S. Virgin Islands to ensure students have the ability to continue their education without having to worry about the stress of how they will have to pay for it. We thank you for your attention to this matter.

Sincerely,

Nelson seeks answers after FEMA denies 90% of Florida flood claims in wake of Irma

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U.S. Sen. Bill Nelson sent the following letter today to the head of FEMA raising concerns that one of the agency’s top administrators in charge of overseeing the National Flood Insurance Program was previously a senior executive at a company accused of lowballing claims for victims of Hurricane Sandy.
Nelson’s letter comes on the heels of reports today in the Palm Beach Post that nine out of ten of flood claims resolved by the National Flood Insurance Program in the wake of Hurricane Irma have been denied.
“NFIP policyholders must have confidence in the claims process,” Nelson wrote. “Unfortunately, this could be seen by some as a case of the fox guarding the hen house.”
Below is the text of Nelson’s letter to FEMA Administrator Brock Long.
A copy of today’s Palm Beach Post report is available here.
A 60 Minutes report on the companies accused of lowballing flood insurance claims following Superstorm Sandy is here.  
A Washington Examiner report on the FEMA executive’s previous ties to one of the companies accused of lowballing Sandy claims is here.

October 17, 2017

The Honorable William B. Long
Administrator
Federal Emergency Management Agency
500 C St., SW
Washington, DC 20472
Dear Administrator Long:
I am writing you to express my concern over recent reporting that approximately 90 percent of resolved claims administered though the National Flood Insurance Program (NFIP) in Florida have so far been denied.
In reviewing the very high level of claims denied to date, I am reminded of serious charges brought against the NFIP by whistleblowers and Superstorm Sandy victims that accused the program of fraudulently reducing and denying claims.  These allegations were detailed in a March 2015 investigation by CBS’ “60 Minutes”.
These concerns are reinforced by the fact that a top NFIP administrator was once an executive for a FEMA subcontractor accused of lowballing Sandy claims.  Unfortunately, this could be seen by some as a case of the fox guarding the hen house.  NFIP policyholders must have confidence in the claims process.
Given these developments, I ask that you immediately:

  • Ensure that all claims are treated fairly and handled expeditiously.
  • Detail what safeguards FEMA has put in place post-Sandy to prevent Hurricane Harvey, Irma, Maria and Nate victims’ flood insurance claims from being fraudulently denied or reduced.
  • Certify that appeals be handled through an open, transparent and independent process.

Families forced out of their homes by these storms deserve prompt and just assistance.  I look forward to your response and reassurance that all claimants will be treated fairly by FEMA.

Sincerely,