[StBernard] Buy-out -- Is this correct?

[Westley Annis]

It seems to me that people are using the word "buy-out" in a couple of
different ways.  I wonder if somebody -- Craig? -- can confirm that my
understanding is correct. As I understand it, there are essentially two
different kinds of possible "buy-outs."  (1) If the $4.2 billion gets
approved by Congress, under Blanco's plan, everybody with over 2 feet of
water -- a "severely damaged" house -- gets pre-K fair market value, minus
insurance, as a CBDG grant. That grant is capped at $150K. You can use that
money to rebuild, repair, or relocate; that is totally up to you. (2) In
addition, certain areas may be deemed "mitigation" areas. That is where FEMA
buys you out on the condition that the property remain out of commerce --
green space -- with nobody rebuilding there. FEMA has done this in the past,
in other areas of the country after other floods, and when it has, these
types of buy-outs are not reduced by insurance. FEMA pays you 75% of your
pre-disaster FMV, and the local gov't pays you 25%. STB will ask the
resident to settle for FEMA's payment of 75% of pre-K FMV as a buy-out in
the mitigation areas, in effect "donating" the parish's 25% back to the
Parish.  

The way I understand it, pretty much everybody in the parish will be
eligible for the CBDG grant, option (1), if it happens.  In addition, the
council is proposing that certain areas (around the canals, Buccaneer Villa
North above Patricia, Carolyn Park above Patricia) be deemed "mitigation
areas" and handled through option (2).  Do I have this right?  

Ck