Hurricane Katrina Emergency Relief CDBG Flexibility Act of 2005 - Directs the Secretary of Housing and Urban Development (HUD) to: (1) suspend the community development block grant public services cap for FY2005-FY2008 for communities directly or indirectly affected by Hurricane Katrina or Hurricane Rita; (2) consider the specific economic circumstances of each indirectly affected community in determining the length of such suspension; and (3) waive or find alternative specified public hearing requirements in FY2006 for a directly affected community.
Authorizes similar fund use in directly affected nonentitlement areas, and provides that such amounts shall not be considered for statewide limitation purposes.
Defines: (1) "directly affected community" as a unit of general local government or area that is located in an area for which the President has declared a major disaster as a result of Hurricane Katrina or Hurricane Rita; and (2) "indirectly affected community" as a unit of general local government or area that is a metropolitan city, urban county, or Indian tribe that is not a directly affected community and is determined by the Secretary to have been significantly affected economically by the occurrence of Hurricane Katrina or Hurricane Rita (including from the presence of Katrina- or Rita-evacuated persons).