[StBernard] Home But Program Worth Consideration

[Westley Annis]

>From "The Record" - Troy, NY

<"http://www.troyrecord.com/site/news.cfm?BRD=1170&dept_id=7018&newsid=15965
926&PAG=461&rfi=9">

Home buy program worth consideration 
By:, The Poughkeepsie Journal:01/20/2006

Government officials are facing some terrible choices in the
hurricane-ravaged city of New Orleans. They know the city will be smaller in
the wake of Hurricane Katrina. 
 
They realize resources are limited as the city tries to rebound.
Yet, many people in the worst-hit outlying areas of the city center
understandably don't want to let go of what's left of their homes. So they
are outraged by some of the recommendations put forth by a mayor-appointed
citizens' commission set up to devise a rebuilding strategy. This commission
advocates a four-month building moratorium in certain sections of the city,
during which time neighborhoods would have the chance to demonstrate if
there is enough commitment from landowners there to bring these areas back
to life.
While a building moratorium sounds counterintuitive, the commission's point
is clear: The city can't provide services to outlying areas if they include
only a few, isolated homes. Besides, government regulations may make it
impossible for federal funds to go to neighborhoods vulnerable to future
flooding of the scale brought on by Katrina.
The commission says each of the city's 13 neighborhood development districts
should have until mid-May to devise a rebuilding plan. If government
officials deem the plans unrealistic, they could buy out the remaining
residents.
Ideally, anyone with the wherewithal and resources to renovate their home
should be allowed to do so. But the city needs to adopt a smart, overall
vision about rebuilding to make the most of the federal aid.
While New Orleans officials grapple with these heartbreaking issues, U.S.
Rep. Richard Baker, R-La., has proposed a bill that would create a
corporation to buy homes from residents who don't want to rebuild. The
homeowners would be freed from their mortgages and get at least 60 percent
of their equity. Through this newly set up corporation, the government would
then sell the property to private development.
This program would, at least, help those homeowners who want to sell. In the
process, it would help the city identify the neighborhoods where there is a
commitment to stay.
Congress should approve this idea, providing there is a cap on how much debt
the corporation can incur. Facing grave choices that will change
neighborhoods forever, New Orleans needs all the help it can get.