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

[Westley Annis]

 "Several flood-prone areas may not be re-developed but Council members are
urging residents to re-build"
http://www.sbpg.net/cannizaro030806a.html

**Alas, It's my guess that ALL of St. Bernard Parish is considered
"flood-prone" areas when a Cat 3-5 Storm hits us (even with Levees
repaired).  As long as MRGO, and water is circling the area, the entire area
has a great chance to flood. Who is kidding who? Buying along a canal could
help trival, regular/May-type flooding. What's going to combat the big ones?
That's why folks decisions to rebuild, seek buyouts, relocations must be met
realistically. Craig was right when he said lots of people will not like the
plan they had devised months ago. This looks basically like the same plan.
Canals, 40 Arpent, etc. Is this illogical to reason such toward the new
mitigation/buyout/demo script given us yesterday. Plainly, it's
unimaginable, predictable and leaves so many with an empty gut. (no put
intended)..

Jer.

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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