

			    THE WHITE HOUSE

		     Office of the Press Secretary

________________________________________________________________________
							 April 15, 1994

	  PRESIDENT CLINTON MAKES AVAILABLE $809.5 MILLION FOR 
	  CALIFORNIA EARTHQUAKE RECOVERY; $23 MILLION FOR OTHER 
			     DISASTER RELIEF


     The President today notified the Congress that he will make
available $832.1 million in emergency budget resources for the Small
Business Administration (SBA) and several other Federal agencies to
assist disaster recovery efforts, primarily in response to the January
earthquake in southern California. Vice President Gore will announce the
action upon his arrival this afternoon at Los Angeles International
Airport.

     "Our Administration is doing everything we can to respond to the
continuing needs of individuals, families, businesses, and communities
arising from the January earthquake," the President said.

     "California's economic future depends in part on a strong recovery
from the earthquake, and the loans and other assistance included in this
package will help considerably. Our departments and agencies will
continue to monitor events in California and take whatever actions are
needed to meet Federal responsibilities there," the President added.

     Most of the funds made available today are directed toward the
economic revival of southern California's earthquake-damaged areas,
including business loans, infrastructure repair, and housing.  This most
recent action by the President brings the amount of federal resources
provided to California in response to the January earthquake to a total
of $10.3 billion.

     Of the $832.1 million the President is making available,
approximately $809.5 million will be directed to California earthquake
recovery relief. That total includes $652.5 million in SBA disaster loans
(supported by $150 million in budget authority); $53 million for the
Department of Commerce for economic development projects under the
Economic Development Administration, including establishment of a local
Infrastructure Development Fund to upgrade damaged facilities not
eligible for other Federal assistance; $30 million to the Department of
Housing and Urban Development for the acquisition or repair of damaged
multifamily rental properties; and $39 million to the Department of
Health and Human Services for community services, repair of damaged
health facilities, to assist frail and impaired senior citizens, and for
other purposes.

     In addition to the assistance for California, the funds announced
today also include $18 million for the Department of Interior for
conservation, acquisition, and reconstruction activities following the
1993 Midwest floods.

     Finally, $5.1 million of the $832.1 million will be directed to
Interior for its Office of Surface Mining Reclamation and Enforcement
abandoned mine reclamation fund.  The funds will be used to remove
debris and to stabilize land around abandoned coal mine sites in
Kentucky affected by major mudslides caused by recent excessive
precipitation.  The President declared 64 counties in Kentucky a
disaster area on March 16 due to severe snow and ice storms.

     The package announced today, which was put together by Office of
Management and Budget Director Leon E. Panetta, uses a total of $329.1
million in budget authority from the $550 million contingency fund
provided to the President under Public Law 103-211, the Emergency
Supplemental Appropriations Act of 1994, to support emergency disaster
needs.  The funds will be available to the agencies in 15 days.

     Combined with the $133 million from the fund already designated by
the President for emergency use, a total of $462.1 million has been
designated to be released, leaving $87.9 million in the fund.

     In addition to those listed above, agencies receiving funds for
California are the Department of the Interior, General Services
Administration, National Aeronautics and Space Administration, and Legal
Services Corporation.
 
     Upon his arrival at Los Angeles International Airport at 4:30 p.m.
PDT today, the Vice President is expected to meet with reporters to
discuss the Administration's release of the disaster funds.  Fact
sheets on the emergency funds are attached.




    NORTHRIDGE EARTHQUAKE FACT SHEET DEPARTMENT OF COMMERCE ECONOMIC
		       DEVELOPMENT ADMINISTRATION


CONTINGENCY FUND RELEASE

*    $53 million is provided to the Economic
     Development Administration (EDA) to assist in the
     economic recovery of communities affected by the 
     earthquake.

*    This includes $50 million for the creation of a 
     local Infrastructure Development Fund that will 
     make funds available to repair or upgrade local 
     infrastructure damaged by earthquake which is not 
     eligible for other Federal assistance.

*    Also included is $3 million in grants for tourism 
     promotion.  

PROGRAM DESCRIPTION

*    The Infrastructure Development Fund will be 
     capitalized by EDA and will be administered by the 
     City of Los Angeles and other local jurisdictions. 
     These funds will be used to leverage existing 
     financing through matching grants, loans, 
     insurance, and subordinated debt.  Local 
     communities will identify the infrastructure 
     projects to receive assistance. 

*    Eligible projects would include earthquake damaged 
     non-public infrastructure ineligible for FEMA 
     assistance, such as a privately-owned water 
     system, and repair projects in which it makes 
     economic sense to upgrade the infrastructure 
     beyond pre-earthquake specifications. 

*    The tourism grant would be used to conduct an 
     international media campaign promoting Los Angeles 
     as a convention and tourism destination.  Los 
     Angeles is the second most popular U.S. 
     destination for foreign visitors, and accounts for 
     over 17% of all tourist visits to U.S. cities.  
     These funds will be matched by locally-generated 
     funds. 




	    NORTHRIDGE EARTHQUAKE FACT SHEET
	       HEALTH AND HUMAN SERVICES
     ADMINISTRATION FOR CHILDREN AND FAMILIES (ACF)
  HEALTH RESOURCES AND SERVICES ADMINISTRATION (HRSA)
	     ADMINISTRATION ON AGING (AOA)
	  SOCIAL SERVICES ADMINISTRATION (SSA)
	  NATIONAL INSTITUTES FOR HEALTH (NIH)

CONTINGENCY FUND RELEASE

*    $39 million is provided for a coordinated program 
     to address community health and social service 
     needs arising from the earthquake.  Individual 
     program elements are as follows:

*    Administration for Children and Families ($20 
     million)- This includes $11.2 million for 
     Community Services Block Grants to provide 
     services to the low-income population, such as 
     home repairs, employment assistance, food, and 
     clothing; $7 million for Social Services Block 
     Grants for mental health and substance abuse 
     services, case management, counselling and other 
     supportive services; $1 million for Head Start, 
     primarily for emergency and long-term mental 
     health services to children, families and staff; 
     and $0.8 million for Runaway and Homeless Youth 
     for facility repairs, mental health and substance 
     abuse treatment and youth employment and training.

*    Health Resources and Services Administration ($10 
     million) -This includes $6 million for Community 
     and Migrant Health Centers to repair damaged 
     facilities and provide additional services and $4 
     million to support multi-disciplinary outreach 
     teams to identify and serve people with health 
     problems caused by the earthquake.

*    Administration on Aging ($6.75 million) - AoA will 
     provide Disaster Advocacy Services focusing on the 
     most frail and impaired older persons, emphasizing 
     relocation, in-home chore, and repair services.  

*    Social Security Administration ($1.25 million) -
     Funds will be used to relocate the damaged San 
     Fernando branch office and finalize unprocessed 
     claims in offices affected by the earthquake.

*    National Institute for Health ($1 million) -
     Replace equipment for NIH research grantees.

PROGRAM SUMMARY

*    Funds will be distributed through existing 
     regulatory and grant procedures.  Services will be 
     coordinated with those being provided through 
     State and FEMA funding.

		    NORTHRIDGE EARTHQUAKE FACT SHEET
		      SMALL BUSINESS ADMINISTRATION
			  DISASTER LOAN PROGRAM

CONTINGENCY FUND RELEASE
     
*    $150 million is provided to support $652.5 million 
     in additional lending to victims of the Northridge 
     earthquake. These funds are needed because initial 
     loan demand estimates now appear to have been too 
     low.  

*    $0.5 million is provided to support three 
     investigators and two auditors to work on fraud 
     detection and deterrence activities related to the 
     disaster assistance program in southern 
     California.

PROGRAM DESCRIPTION

*    SBA direct disaster loans are provided to 
     homeowners, renters, and businesses to repair or 
     replace damage to real property to its pre-
     disaster condition.  Businesses of any size are 
     eligible, as are non-profit organizations.  Also, 
     economic injury disaster loans (EIDLs) are 
     available for working capital to small businesses 
     and small agricultural cooperatives.

*    Interest rates are currently 3.63 percent or 7.25 
     percent for home loans, and 4 percent or 7.7 
     percent for business loans, with the higher rate 
     applying if the applicant has credit available 
     elsewhere.  Maximum loan terms are 30 years.  

*    Home loans are limited to $200,000 for real estate 
     and $40,000 for personal property.  Business loans 
     are limited to $1.5 million for real estate, 
     machinery and equipment, inventory and all other 
     physical and economic losses.  Within these 
     limits, the loan amount may be increased by up to 
     20 percent to finance mitigating measures that 
     will prevent future property damage. 

     *    Eligibility:  For physical disaster loans, 
     must be located in disaster area and suffered a 
     physical property loss as a result.  Must 
     demonstrate an ability to repay the loan.  
     Individuals, business concerns, charitable and 
     nonprofit organizations are eligible to apply for 
     assistance.  For economic injury loans, must be a 
     small business concern located in the disaster 
     area.  Must be unable to obtain credit elsewhere.  
     Must furnish 
     evidence of the cause and extent of injury 
     claimed.  

*    Application procedure:  All potential applicants 
     should first register with FEMA at the nearest 
     Disaster Application Center (DAC).  FEMA refers 
     victims with incomes above minimum thresholds and 
     all business victims and self-employed homeowners 
     or renters to SBA for possible loan assistance.  
     SBA will provide assistance in preparing the loan 
     application.  Loan applications can be submitted 
     by mail or in person.

						  

		    NORTHRIDGE EARTHQUAKE FACT SHEET
	      NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

CONTINGENCY FUND RELEASE

*    $20.8 million is provided to cover earthquake-
     related costs in NASA's Space Shuttle and Space 
     Station programs.

*    $9.4 million is for repairing damage to equipment 
     and buildings owned by the Federal Government.  
     This includes damaged NASA-owned equipment in 
     contractor facilities located less than three 
     miles from the earthquake's epicenter.  

*    $11.4 million is for NASA's share of contractor 
     "indirect" costs that must be reimbursed by the 
     government.  These earthquake-related overhead 
     expenses include debris removal, setting up and 
     recalibrating machine tools, and employee "lost 
     time" when work sites were inaccessible.


PROGRAM SUMMARY

*    The Federal Government owns facilities in Downey, 
     CA, and Palmdale, CA, that are used for 
     maintaining and modifying NASA's four Space 
     Shuttle orbiters.  Buildings at Downey were harmed 
     by the earthquake, and a Space Shuttle orbiter at 
     Palmdale for servicing had some of its thermal 
     protection tiles damaged.   Other equipment for 
     the Space Shuttle program was damaged at both 
     sites.

*    Contractor facilities owned by Rockwell 
     International and its Rocketdyne subsidiary 
     sustained damage in three locations northeast of 
     Los Angeles: Canoga Park, DeSoto, and Plummer.  
     Work for NASA at these facilities includes 
     developing the Space Station's power system and 
     manufacturing and servicing the Space Shuttle's 
     main engines.  

*    NASA is liable for some contractor indirect costs 
     resulting from the earthquake because of the cost-
     reimbursement nature of these contracts.  
     Allocation of these costs to NASA and other 
     Federal agencies is consistent with Federal 
     Acquisition Regulations.  




	    NORTHRIDGE EARTHQUAKE FACT SHEET
	    GENERAL SERVICES ADMINISTRATION

CONTINGENCY FUND RELEASE

*    A total of $6.7 million is provided, consisting of 
     $5.2 million to repair damaged buildings and $1.5 
     million to establish telecommuting centers.

*    Two Federal buildings in Los Angeles sustained 
     substantial damage in the earthquake, the Van Nuys 
     Federal Building and the Federal Building at 11000 
     Wilshire Boulevard.  Ten other buildings sustained 
     minor damage.  Also, some GSA-leased space 
     sustained structural damage which forced GSA to 
     relocate the tenants.

*    To ease congestion on the earthquake-damaged 
     freeways, GSA has opened three telecommuting 
     centers for use by Federal employees.  Two 
     additional centers will be opened shortly.

PROGRAM SUMMARY

*    GSA owns 12 and leases 142 buildings in the 
     affected area.  In general, GSA must pay repair 
     costs on federally-owned buildings while the 
     lessor pays the cost on leased buildings.  GSA can 
     incur costs associated with relocating Federal 
     employees from damaged leased buildings.

*    The telecommuting centers each include 30 fully-
     furnished workstations (15 with computers), 
     telephones, fax machines conference rooms and an 
     administrative manager to operate the center.  
     Current centers are in Santa Clarita Valley, Van 
     Nuys/Sherman Oaks and Thousand Oaks.




















	    NORTHRIDGE EARTHQUAKE FACT SHEET
	       DEPARTMENT OF THE INTERIOR
		 NATIONAL PARK SERVICE 

CONTINGENCY FUND RELEASE

*    $5 million is provided for emergency technical 
     assistance provided by the National Trust for 
     Historical Preservation and for rehabilitation 
     grants administered through the California State 
     Historic Preservation Officer for nationally 
     designated historic properties damaged by the 
     earthquake.

PROGRAM DESCRIPTION

*    In excess of $50 million in property damage was 
     done to nationally registered historic properties 
     in southern California as a result of the 
     Northridge earthquake and related aftershocks.  To 
     facilitate restoration, the $5 million will be 
     used for immediate site surveys and technical 
     assistance to affected historic properties.



	    NORTHRIDGE EARTHQUAKE FACT SHEET
	       DEPARTMENT OF THE INTERIOR
	   MINERALS MANAGEMENT SERVICE (MMS)


CONTINGENCY FUND RELEASE

*    $0.5 million is provided for seismic research on 
     offshore oil and gas facilities.

*    The funds will be used by the Minerals Management 
     Service   Royalty and Offshore Minerals Management 
     Program. 


PROGRAM SUMMARY

*    MMS is responsible for the management of energy 
     and mineral resources on the Nation's Outer 
     Continental Shelf (OCS).    Included in this 
     activity is the conduct of environmental     
     studies and assessments on the OCS as well as the 
     regulation     of exploration, development, and 
     production to ensure safe and environmentally 
     responsible activities. 

*    MMS will use these funds to complete a seismic 
     monitoring network by installing two strong motion 
     instruments on the seafloor offshore California; 
     to evaluate the effect of earthquakes on platform 
     operating facilities; and to assess the effects of 
     seismic ground motions on the integrity of 
     offshore pipeline systems.






		    NORTHRIDGE EARTHQUAKE FACT SHEET
		       LEGAL SERVICES CORPORATION 

CONTINGENCY FUND RELEASE

*    $0.5 million is provided for the Legal Services 
     Corporation.  

*    Of this amount, $450,000 is for emergency legal 
     assistance.  The Corporation will use this money 
     to assist earthquake victims in establishing 
     eligibility for disaster assistance addressing 
     other legal issues, such as fraudulent home repair 
     contractors.  
*    The Corporation will use the remaining $50,000 to 
     repair legal services facilities damaged by the 
     earthquake. 

PROGRAM SUMMARY

*    The Legal Services Corporation funds private 
     attorneys, non-profit organizations, and State and 
     local agencies that provide free civil legal 
     assistance to the poor.  

*    The Legal Services Corporation is a private, non-
     profit corporation which is outside the Federal 
     Government.  









		MIDWEST FLOOD FACT SHEET
	       DEPARTMENT OF THE INTERIOR
	  U.S. FISH AND WILDLIFE SERVICE (FWS)

CONTINGENCY FUND RELEASE

*    A total of $12 million is provided for the 
     following activities:

*    $5.0 million is provided to FWS to assist 
     landowners in voluntary projects to restore 
     wetland flood storage capabilities in watersheds 
     affected by the Midwest flood. 

*    $4.0 million is provided to FWS to acquire private 
     lands from willing sellers in conjunction with the 
     USDA's Soil Conservation Service's Emergency 
     Wetlands Reserve Program.

*    $2.0 million is provided to FWS to meet its 
     statutory responsibility to assist USDA in 
     determining preferred parcels to enroll in the 
     wetlands reserve program, and to assist in the 
     restoration of the enrolled wetlands.

*    $1.0 million will be used by FWS to acquire land 
     for the National Wildlife Refuge System, to 
     promote a more normal hydrological regime for the 
     Midwest Rivers, thereby lessening future flood 
     risks.
 
PROGRAM SUMMARY

*    The Private Lands program has successfully worked 
     with landowners and other cooperators to create 
     easements on private land, which is then restored 
     to functioning wetlands.  FWS will use this $5 
     million to target this program to river basins 
     affected by the Midwest flood, where the USDA 
     Wetlands Reserve Program is not also heavily 
     involved, and where wetlands restoration can be 
     expected to produce significant flood water 
     retention benefits.

*    FWS will spend $4 million, in close cooperation 
     with USDA, in order to leverage the resources of 
     USDA's Emergency Wetlands Reserve Program (EWRP).  
     The FWS funds would be used to buy property 
     ineligible for the EWRP, in order to assemble 
     coordinated buyout deals to restore whole areas to 
     natural river hydrology, and encourage farmers and 
     others to relocate from flood-prone land.

*    FWS has a statutory responsibility to work with 
     USDA in choosing acres to be enrolled in the USDA 
     Wetlands Reserve Program, and then to provide 
     technical assistance to the landowners in 
     associated wetlands restoration work.  FWS will 
     spend $2 million to help USDA most effectively use 
     the approximately $100 million available through 
     the EWRP.




		MIDWEST FLOOD FACT SHEET
	       DEPARTMENT OF THE INTERIOR
	 UNITED STATES GEOLOGICAL SURVEY (USGS)


CONTINGENCY FUND RELEASE

*    $5.0 million is provided to acquire high priority 
     mapping data for urbanized areas affected by the 
     Midwest flood of 1993. 

*    $1 million is provided to establish and operate a 
     clearinghouse to share data collected and 
     generated by the Scientific Assessment and 
     Strategy Team (SAST).

PROGRAM SUMMARY

*    The data to be collected -- mostly state-of-the-
     art, computer-generated digital maps of the areas 
     affected by the flood -- will be used by 
     decisionmakers in the flood restoration effort.  
     It is particularly important to have this 
     information for the urbanized areas of the 
     Midwest, because these areas received the greatest 
     economic damage, and will be the areas where the 
     greatest new investment is made.  This information 
     will help decisionmakers plan their investments so 
     as to reduce the risk of damage from future flood 
     events.  The data will also be useful long after 
     the flood recovery effort is completed, as an aid 
     in infrastructure planning.

*    Collecting valuable high priority information is 
     only part of the job.  This data must be easily 
     accessible to the Federal, State, and local 
     governments, and the private sector 
     decisionmakers, if it is truly to be a useful 
     tool.  The USGS will operate a clearinghouse for 
     this high priority data, thereby making the data 
     available to all who can benefit from it.




	     KENTUCKY LANDSLIDE FACT SHEET
	       DEPARTMENT OF THE INTERIOR
  OFFICE OF SURFACE MINING RECLAMATION AND ENFORCEMENT


CONTINGENCY FUND RELEASE

*    $5.1 million is provided to remove debris and 
     stabilize disturbed lands from major landslides 
     and mine blow outs caused by excessive levels of 
     precipitation on abandoned coal mine sites in 
     Kentucky.


PROGRAM SUMMARY

*    The Emergency Program under the Abandoned Mine 
     Reclamation Fund purpose is to provide immediate 
     relief from abandoned mine hazards that threaten 
     public health and safety.  Kentucky emergency 
     funds of $5 million, the maximum any one state can 
     legally receive for fiscal year 1994, have been 
     exhausted.  In addition, $5 million in non-
     emergency project funds has been provided to 
     handle emergency efforts.

*    An additional 29 sites have requested emergency 
     assistance for which no other funding is 
     available. 

*    On March 16th, the President made a disaster 
     declaration for 64 counties in Kentucky due to 
     severe snow and ice storms in mid-February.








		    NORTHRIDGE EARTHQUAKE FACT SHEET
		      HOUSING AND URBAN DEVELOPMENT
		  HOME INVESTMENT PARTNERSHIPS PROGRAM

CONTINGENCY FUND RELEASE

*    $30 million is provided for the HOME Investment 
     Partnerships Program.  The funds will be 
     distributed to HOME participating jurisdictions 
     for financing the acquisition and/or repair of 
     earthquake-damaged multifamily rental properties.

*    The program will allow localities to: (1) rebuild 
     damaged housing critical to neighborhood 
     revitalization efforts; (2) add to the existing 
     affordable housing stock in their communities; 
     (3)stem the increase in homelessness resulting 
     from the earthquake; and (4) catalyze the 
     rebuilding process in neighborhoods 
     disproportionately affected by the earthquake.

PROGRAM SUMMARY

*    Funds for the $30 million targeted program will be 
     channeled through the Department's existing HOME 
     program, with the new funds allocated based on 
     relative amounts of damage in affected 
     participating jurisdictions. 

*    In exchange for subsidized financing, borrowers 
     will enter into 55-year affordability 
     restrictions.  In addition, borrowers must be 
     willing to offer rehabilitated units first to 
     very-low-income households displaced by the 
     earthquake.
*    Localities will administer the program in the same 
     way that they administer HOME funds, with the 
     addition of new requirements to target the funding 
     for the acquisition and/or repair of earthquake 
     damaged properties.

*    Eligible applicants include nonprofit 
     organizations, private developers/owners and joint 
     ventures or partnerships among those entities who 
     are willing to commit to extended affordability 
     restrictions in exchange for funds to acquire 
     and/or repair earthquake-damaged multifamily 
     rental property.

*    Properties must be located within census tracts 
     that have high proportions of damaged buildings.

*    As with the regular HOME program, participating 
     jurisdictions will have the flexibility to set 
     conditions, with the exception of the 
     affordability restrictions and rehousing 
     requirements.  



