[StBernard] Gov. Blanco, LRA Outline Preliminary Housing Proposal; Public Input to Help Shape Plan

[Westley Annis]

Gov. Blanco, LRA Outline Preliminary Housing Proposal; Public Input to Help
Shape Plan

Bulk of Federal Recovery Dollars Aimed at Repairing, Rebuilding, Relocating
Homes

LAKE CHARLES, La. - Gov. Kathleen Babineaux Blanco and the Louisiana
Recovery Authority outlined a proposal today for repairing, rebuilding, and
relocating homes in Louisiana that were impacted by hurricanes Katrina and
Rita. The proposal would give residents the funding they need to get back
into their homes and to help re-establish their lives in Louisiana. Blanco
stressed that the rebuilding plan is preliminary and invited public input on
the proposal. 

The plan -- presented at an LRA meeting in Southwest Louisiana, where
Hurricane Rita struck in September -- would provide repair, rebuilding, or
relocation assistance for homeowners rebuilding in Louisiana up to $150,000,
minus insurance reimbursements and FEMA aid, based on their home's pre-storm
value. As outlined by Blanco, the goal of the plan is to rebuild housing in
Louisiana and to do so in a way that would make Louisiana's housing stock
safer and stronger. Homeowners who are not interested in rebuilding in
Louisiana would be able to sell their homes at 60 percent of their pre-storm
value. The Governor's housing program would also help build and replace
affordable rental housing in the areas affected by the storms. According to
LRA estimates, the two hurricanes destroyed well over 200,000 owner occupied
homes and rental units in South Louisiana. 

"In creating our housing plan, I envision a Louisiana where every person who
wants to return home can return home," Blanco said. "We must tackle our
rebuilding with the pace of a sprinter and the heart of a distance runner." 

She promised to move as quickly as possible to put federal recovery dollars
to work for homeowners. Of the $6.2 billion already allocated to Louisiana
for recovery, Blanco has pledged that the lion's share will go to housing.
She also committed to using the additional $4.2 billion requested by the
White House last week for safely rebuilding Louisiana homes, once the
additional funding is approved by Congress. 

Walter Leger, Chairman of the LRA Housing and Redevelopment Task Force,
said, "The objectives of the program are to get people back into their homes
in a way that protects their personal investment. That means helping people
return to homes and neighborhoods that are safer and stronger."

In the next few weeks the state will launch a website and call center to
initiate direct contact with homeowners who could be eligible for assistance
in rebuilding, Blanco said. Homeowners who have previously registered with
FEMA and had major or severe damage to a home they occupied at the time of
the storms will be asked to complete a pre-applications registry. 

The goal is to begin to open case files for registrants so the state will be
ready to distribute aid when Congress approves the additional $4.2 billion.
Until then, local governments will rely on community planning and
neighborhood input to determine where residents can or should rebuild
safely. Housing counselors at local recovery centers will begin scheduling
appointments with individuals who are eligible for relief.

The options for dealing with damaged homes include:

*	Repair -- for homes that need repair/mitigation. Louisiana would
contribute to the cost of repairs up to the pre-storm value of the home (not
to exceed $150,000). Affordable loans would cover any gaps.
	
*	Rebuild - for homes that cannot be repaired but can safely be
rebuilt. Louisiana would contribute the pre-storm value to the cost of an
equivalent house on the same property (not to exceed $150,000). Affordable
loans would cover any gaps.
	
*	Buyout/Relocate - when the owner chooses to sell an existing
property for its full pre-storm value (not to exceed $150,000) to rebuild or
relocate elsewhere in a designated area. Louisiana would contribute the
pre-storm value to the cost of an equivalent house in a designated area.
Affordable loans would cover any gap.
	
*	Sell - Louisiana would offer 60 percent of the pre-storm value (not
to exceed $150,000) to secure blighted properties from owners who do not
want to repair or rebuild in Louisiana.
	

Under the proposal, residents who lived within the floodplain but did not
have insurance will have their assistance reduced by 30 percent. Blanco said
she will insist that any person rebuilding in the floodplain must build to
new standards and carry flood insurance.

The Governor pledged to hold town hall meetings to gather input on the
proposal and to encourage residents to register for aid. She has also
proposed using $1 billion to create incentives for building rental units and
affordable housing in mixed-income communities. 

"In the not too distant future, I predict the sounds of hammers and saws
will be ringing through all of our communities as our houses come back. And
not too long after that, we will hear the voices of children return to our
streets," Blanco said.

In other business, the LRA recommended to the Governor and Louisiana
Legislature an action plan for allocating the $6.2 billion in Community
Development Block Grants already allocated to Louisiana.

Blanco had already announced her plans for investing the money, with the
bulk of dollars allocated to housing and the remainder dedicated to
restoring infrastructure (such as utility and sewer systems) and supporting
economic development (with small business bridge loans and other business
incentives). 

The LRA also approved recommendations to the Governor and Louisiana
Legislature for $220 million in supplemental appropriations in Social
Services Block Grants awarded to Louisiana in response to the hurricanes.
The issue now goes to the Joint Legislative Committee on the Budget for
consideration. 

Under the proposal, the Department of Social Services would be allocated
$34.2 million:
* $17.6 million for child welfare services
* $14.4 for child care services 
* $2.2 million for the monitoring and oversight of Louisiana's entire SSGB
allocation 

The Department of Health and Hospitals would be allocated $101.7 million:
* $80,000 for behavioral health services
* $21.7 million for preventive and primary care

The Louisiana State University Health Sciences Center would be allocated $70
million:
* $50 million for the Health Sciences Center
* $20 million for the health care services division

The Louisiana Family Recovery Corps would be allocated $15 million.

The LRA also heard presentations on a number of topics significant to the
recovery. Andres Duany of Duany, Plater-Zyber, & Co. described redesign
plans for the Lake Charles and Vermilion Parish areas gathered after two
separate week-long public meetings. Sen. Mary Landrieu gave a presentation
on flood control in the Netherlands and Outer Continental Shelf Revenue
Sharing efforts. The board also heard presentations on Southwest Louisiana
recovery from Lake Charles Mayor Randy Roach, Calcasieu Parish Administrator
Mark McMurry, Cameron Parish resident Ernie Broussard and Port of Lake
Charles official Adam McBride.

The Louisiana Recovery Authority is committed to addressing the short- and
long-term needs of the recovery. More information about the housing proposal
and documents from this meeting can be found on the LRA's website at
www.lra.louisiana.gov