FEMA unit sales create new doubts

Auctions last month of mobile homes and travel trailers originally purchased for hurricane survivors but now stored in Hope yielded more than the millions of dollars successful bidders will pay the federal government.

The auctions of 1,047 units raised $7.2 million, but also have provoked more concern about the units, which have been no stranger to controversy since they were constructed in 2005 and largely went unused after Hurricane Katrina and Hurricane Rita struck the Gulf Coast.

People within the industry expressed worry the auctions of the three lots will flood the market with mobile homes, undercutting private dealers. And state regulators wonder whether the units will fall under their authority.

The auctions by the U.S. General ...