[StBernard] Rep. Baker on Baker Plan

[Westley Annis]

WASHINGTON - U.S. Rep. Richard H. Baker, R-Baton Rouge, issued the following
statement today following his unsuccessful effort to gain passage this year
of legislation (H.R. 4100) to establish the Louisiana Recovery Corporation
(LRC), a federal agency with the proposed mission to provide financial
stability to property owners through the purchase of damaged or destroyed
property from willing sellers, and to facilitate the redevelopment of areas
of Louisiana devastated by Hurricanes Katrina and Rita:

"It is in the time of difficulty that we are most tested.  When our belief
that tomorrow will be better than today is badly shaken, it is imperative we
do not give up on ourselves.  No matter the circumstances, we must try
again.  We must continue to pursue that which is possible and never give in
to hopelessness.

"I know that many Louisianians were hopeful that the Louisiana Recovery
Corporation would be created by the Congress, which would have provided a
systematic method to begin the long recovery.  I want all my Louisiana
friends to know that down to the very last minute I did everything I could
to make it happen, but I did not succeed.  

"It is now apparent that I will have to return to Congress next year and
start over.  God willing, that is what I will do.  Although disappointed, I
will not give up.

"I have every assurance from Senator Shelby, the Chairman of the Senate
Banking Committee, that he will assign every resource to assess our plan and
develop an appropriate solution.  I have every confidence that the
Administration will bring their expertise to bear on the problem.  

"I should also make clear that every single member of the House and Senate
from Louisiana was focused, motivated, and dedicated to the goal of passing
H.R. 4100.  The Governor and members of her Louisiana Recovery Authority, as
well, provided tremendous effort and assistance.  Mayor Nagin and his
consultants at ULI, State Senator Schedler, State Rep. LaFonta, Councilman
Batt, and other state and local officials added instrumental advice and
support.  Chairman of the Financial Services Committee, Michael Oxley, and
ranking member, Barney Frank, were incredibly helpful and supportive.  In
fact, from Louisiana to Washington, Republican and Democrat, conservative to
liberal, many, many people joined together in support of the plan, and I am
grateful to them all.  There was broad support for taking action, but the
time available was simply too short for the necessary steps to be taken.

"To displaced homeowners, without a home, trying to figure out what the
future holds, I want to assure you of the steps I intend to take, and of the
time now required to implement the new solution.

"First, in my capacity as Chairman of the Capital Markets subcommittee, I
will seek to obtain a commitment from the appropriate Congressional leaders
to push for the maximum forbearance from financial regulators.  This action
is to ensure that you have the longest possible period to be relieved from
paying your mortgage obligation.  

"Second, I will return to Washington to meet with members of the Senate to
develop a new plan, in January, before regular business resumes.  Most
members of the House have already expressed support for the provisions of
H.R. 4100, so obtaining Senate approval early next year is critical.

"Third, I will request that local leaders utilize the resources of the
Louisiana Recovery Authority in order to develop and finalize a local plan
for redevelopment. This is an essential step, which would have been required
even if H.R. 4100 had passed.  The LRC would redevelop only after local
communities developed the local plans.  We should proceed as if the bill has
passed, so when resources are made available, they can be deployed
immediately.

"Fourth, I will request of the Governor that she designate funds to the
Louisiana Recovery Authority sufficient to insure the preparation of the
recovery plan.  These resources should assist communities that otherwise
would be unable to successfully create their redevelopment plan.  This
assistance should be made available from funds given to Louisiana in the
most recent supplemental appropriation.   

"Finally, I have little doubt that H.R. 4100, or something similar, will
ultimately be adopted by the Congress.  However, it will not be achieved
easily and will not come without significant hard work.  In fact, the
Administration has made it clear that Louisiana must speak with one voice on
any major plan for redevelopment.  Every parish governing authority, every
city council, all homeowner groups and community leaders should write their
own statement of support for the principles of H.R. 4100.  All of the
authorities or commissions that have been created since the storms should
also adopt resolutions of support. This is essential in convincing the
Congress and the Administration to act.

"The steps I have indicated that I will take would have had to be taken no
matter what plan is adopted. So let´s get on with the work.  For my part, I
know I have to work harder.  Perhaps there is a better plan to be found.
But what I want the Louisiana people to understand, from me to you, is that
I will not give up.  And I hope you will not give up on Louisiana.

"My prayers go out to Louisiana and her citizens, though I also pray that
next year we will find greater reason to celebrate the holidays."