[StBernard] Governor Blanco, Mayor Nagin, LRA Board Members travel to Washington, DC urging federal fun

[Westley Annis]

Governor Blanco, Mayor Nagin, LRA Board Members travel to Washington, DC urging federal funding for the Road Home shortfall

Program slated to run short in early 2008 

WASHINGTON - Governor Kathleen Babineaux Blanco traveled to Washington, DC today for an intense visit on Capitol Hill, urging Members of Congress to provide the $3-$4 billion needed to fully fund the Road Home program. Accompanied by New Orleans Mayor Ray Nagin, city recovery director Ed Blakely, Louisiana Recovery Authority Chairman Dr. Norman C. Francis, LRA Board Member David Voelker and LRA Executive Director Andy Kopplin, the Governor will meet with House and Senate leadership over the next two days, including the House Democratic Caucus, the Congressional Black Caucus, Senate Minority Leader Mitch McConnell and individual Members of Louisiana's Delegation, hoping to secure the funding necessary to help homeowners rebuild. 

"The Road Home is the largest housing program ever launched in response to a major disaster, and the size and scope of its need has simply surpassed early federal estimates," Governor Blanco said. "The program is projected to serve nearly 50,000 more homeowners than originally anticipated by FEMA, and is on track to run out of funding in January, less than 100 days from today. House Speaker Nancy Pelosi, Majority Whip Jim Clyburn and Senate Majority Leader Harry Reid and their colleagues have been generous in their commitment to fund this program. Now we urge all Members of Congress to help finish the job." 

"We appreciate the generosity that the Congress and the American people have shown since the failures of the federal levees," said Mayor Nagin. "We are calling on Congress again to fill the Road Home shortfall. This is critical to our residents who want to move home and it is essential to the full recovery of our city." 

To date, the Road Home has received more than 184,000 applications, and more than 61,000 homeowners have received their awards, totaling more than $4.2 billion. 

At the current rate of grant payouts of 10,000 a month, and at the current average award per grant of $70,000 per homeowner, the Road Home program is projected to exhaust its existing budget by the first of the year.

To ensure that each and every eligible homeowner receives the grant they need to repair and elevate their home Louisiana has requested that Congress provide approximately $3.3 billion in additional funding and issue a legislative directive to FEMA that will allow the state to effectively utilize $1.17 billion of Hazard Mitigation Grant Program funds that have been allocated to Louisiana but have been tied up in red tape for more than a year.

In addition to calling on leaders in Washington to appropriate additional funds for the program, Governor Blanco and the Louisiana Legislature have also committed $1 billion to fill the Road Home shortfall.

"With rebuilding funds in the hands of more than 61,000 Louisiana homeowners, the Road Home program would be more than halfway complete if FEMA's initial damage estimates were correct, and because state leaders have worked tirelessly to improve the quality and pace of the program, we can see that significant program has been made," said Francis. 

"But now we are faced with a new challenge as Louisiana's need has proven much greater than any early estimates could fathom, and we need Congress and the White House to take action to address it. We have an opportunity to build on the speed and momentum that the program has now. I urge leaders in Washington to act quickly to avoid unnecessary disruptions that would be another setback to thousands of homeowners that have already been through so much."

In recent months, as the rate of applications passed original estimates for the number of homeowners who would be eligible for the program, it became clear that the $7.5 billion originally allocated by the federal government for the Road Home was insufficient.

According to an analysis by ICF international, the contractor running the program, three main factors have contributed to the deficit:

*	Increase in eligible homeowners: About 50,000 additional homeowners with major or severe damage are likely to be found eligible for the program, far more than FEMA data initially indicated; 
*	Actual damages are higher than FEMA estimated: The level of damage per house had been greater than projected and construction costs are significantly higher than anticipated; and
*	
	Lower than expected insurance payments to homeowners: On average, insurance payments are covering a smaller than expected percentage of the damages.

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The Louisiana Disaster Recovery Foundation
Louisiana's Fund for Louisiana's People
www.louisianahelp.org