News Roundup

Louisiana Governor Says HUD Approves Plan for Louisiana’s Recovery

Bayou Buzz
by Steve Sabludowsky

BATON ROUGE, La- HUD’s Secretary Alphonso Jackson has approved $368.4 million for Louisiana’s action plan. Today Governor Kathleen Babineaux Blanco learned Hud has approved $368.4 million for Louisiana’s action plan to help the state recover from the devastation of Hurricanes Katrina and Rita.

Here are comments from Governor Blanco:

This crucial funding is part of $6.2 billion in Community Development Block Grant (CDBG) assistance HUD has allocated to Louisiana. The Governor submitted this phase of the action plan to HUD in April following legislative approval.

“Secretary Jackson delivered outstanding news to the people Louisiana today with his approval of the first phase of our action plan for Louisiana´s recovery,” said Governor Blanco. “As we continue to pave the road to recovery, these much needed funds help our citizens, businesses, and communities get back on their feet. This renews their hope that we are making progress. I thank HUD for their approval of this portion of our action plan. I am confident they will respond quickly when we submit the final portion of our housing plan.”

The $368 million approved today will support Louisiana’s Small Business Bridge Loan Program ($95 million); local government emergency infrastructure, such as fire houses, police stations and sewer systems ($95 million); state building infrastructure, such as schools, universities and ports ($142.5 million); and start-up costs for The Road Home housing plan ($17.1 million). The remainder of the funds will support administrative costs and planning.

“This plan will go a long way toward rebuilding infrastructure, supporting struggling mom and pop businesses and helping homeowners who may have lost everything,” said Secretary Jackson. “As we move along Louisiana´s road to recovery, HUD will work overtime to help rebuild healthy and vital communities that families can proudly call home.”

“This is great news for businesses and communities throughout South Louisiana who have been struggling to rebuild after the hurricanes,” said Louisiana Recovery Authority Chairman Norman C. Francis. “It also means that we have start-up money for our Road Home housing plan, which we will send to HUD for approval as soon as the legislature approves it. We are grateful for the assistance that our legislature, Secretary Jackson and our other partners in Washington have given to us as we work tirelessly to give our people, our businesses and our communities the support they need to rebound.”

Details of Louisiana´s action plan approved today include:

• Louisiana Bridge Loan Program ($95 million) -Hurricanes Katrina and Rita affected 81,000 small businesses in the state. Loans provided through this program will offer up to $100,000 in temporary working capital to businesses located in 37 affected parishes. By guaranteeing loan funds provided by participating banks, this bridge loan program will offer six month, interest-free financing to qualifying small business owners who choose to remain in their affected areas.

• Start-up costs for The Road Home Housing Program ($17.1 million) - As Louisiana continues to develop The Road Home Housing Program, a registration process and a method for managing case files for thousands of homeowners seeking housing assistance must be developed. This program will fund a call center, develop plans for The Road Home assistance centers, and train adequate staff and counselors needed to implement the more comprehensive homeowner assistance program currently being developed by the state. HUD´s review of The Road Home Housing Program will occur as soon as the Legislature approves the plan and it is sent to Washington.

• Local Government Emergency Infrastructure ($95 million) - This program will assist parishes that have adopted the latest available base flood elevations from the Federal Emergency Management Agency (FEMA) and new statewide building standards. Offered on a first-come, first-serve basis, funding provided under this program will assist these parishes in matching FEMA assistance to fund their most pressing infrastructure repair/replacement projects.

• State Building Infrastructure Program ($142.5 million) - Approximately 1,500 state buildings were damaged by Hurricanes Katrina and Rita, leaving Louisiana with $1.5 billion in uninsured losses. While FEMA will cover 90 percent of these losses, the state still faces a shortfall at a time when its tax base has been severely reduced. Due to the labor shortage needed to make needed repairs, Louisiana developed a framework that places emphasis on its highest priority projects.