Delegation urges hurricane loan forgiveness

NEW ORLEANS (AP) - Members of Louisiana's congressional

delegation are calling on FEMA to issue regulations for the

cancellation of disaster loans issued to Gulf Coast communities

after Hurricane Katrina.

The lawmakers in a letter this week to Federal Emergency

Management Agency Administrator David Paulison urged issuance of

the regulations by year's end.

The delegation fears that some local governments, hospitals and

sheriff's departments won't be able to repay FEMA loans.

FEMA says it provided nearly $1.3 billion in community disaster

loans in Louisiana and Mississippi after the 2005 hurricanes.

Congress authorized the agency to forgive the loans if local

governments show an inability to repay.

(Copyright 2008 by The Associated Press. All Rights Reserved.)