[StBernard] News You Can Use - Time Sensitive Information

[Westley Annis]

Louisiana Recovery Authority Proposal Needs Revision
 
 
I recently had the chance to review the Louisiana Recovery Authority's
Action Plan amendment that was published last week.  The entire document can
be downloaded here:
http://www.doa.la.gov/cdbg/dr/Action%20Plan%20Amendment%20No%201_Housing_FIN
AL.pdf <http://www.doa.la.gov/cdbg/dr/Action Plan Amendment No
1_Housing_FINAL.pdf>  
 
I am writing to summarize (at least the part that deals with individual
homeowners) this 33 page document for you and to recommend you take action
on this critically important topic.  We are currently in a public comment
period that ends at 5:00 pm next Monday, April 17.  For this reason, I
request that you give some time and consideration to this important issue
and take action quickly, if you see fit.
 
Summary for section on "Housing Program"
 
Financial incentives will be available for homeowners who wish to 
 
Repair their house (not a total rebuild), 
Rebuild their house (on the same site as the previous residence), 
Buyout / Relocate (Sell their house to the State and then move to another
location in Louisiana), and
Sell (sell your house and move somewhere out of state)
 
In order to receive assistance under the LRA plan, you must be willing to
allow the LRA to communicate with FEMA about your information, verify that
you did in fact own the home, and agree to rebuild under the State's new
Uniform Construction Code, meet local zoning requirements, and meet FEMA
guidelines for base flood elevations.  Additionally, you must agree to
occupy the house for at least 3 years and maintain homeowners and flood
insurance on the property.  You must also agree to turn over any additional
insurance claims (not defined as just flood insurance or flood and
homeowner's insurance) you receive after you get funding from the program.
 
Easy enough.
 
The most assistance you can receive under the program will be $150,000.
This benefit amount is available through a myriad of structures which I have
reviewed several times, but honestly don't completely understand, so I will
not try to clarify them here.    I am going to the meeting this evening and
hope to have this clarified.  If so, I will communicate this to you
tomorrow.
 
The program is dependent on funding from the federal government.   Current
funding levels do not allow for the program to operate as defined above.  
 
While some funding has been allocated by the feds, there is not enough money
to go around to allow everyone the benefits described above.  Therefore, the
Louisiana Recovery Authority's intention (as of today) is to simply provide
benefit for those of us who 1) were not in a FEMA flood plain and were
flooded or 2) who have incomes below 70% of the area median income (I could
not determine what this was for our area).  The area median income figure
would be adjusted for family size.
 
The game plan is that if Congress appropriates another $4.2 billion, then
everyone will be able to participate in the program.
 
To me this is not right and that's why I am asking you to take action.
 
Let's assume for must a moment that the area median income is $50,000.
Please note that I do not know this to be the case, but I needed an number
for illustration.  
 
Case 1:  Under the current guidelines, a person with $35,000 of income could
stand to receive $150,000 of benefits, while the neighbor who worked a
little more overtime the same year and earned $35,100 would receive nothing!
 
Case 2:  Two families have $36,000 of income.  Both are expecting babies
near year end.  One delivers their newborn on December 30th, therefore has a
family of 3.  The other has their baby on January 2, and has a family of 2.
The person with the December child receives benefits while the January birth
was two days too late.
 
Case 3:  A fairly wealthy individual owns a $500,000 house.  Because his
$2,000,000 investment portfolio is heavily allocated in municipal bonds, tax
deferred annuities, and retirement plans, his income (for tax purposes) is
only $20,000.  Compare this to the hard working 30 year old who made $36,000
working overtime at the refinery.  In this case, the wealthy investor can
receive $150,000, while the hard worker receives nothing.
 
Obviously, I think there has to be a better way to divvy up the pot.  By
drawing a line in the sand at 70% of area median income, there will be
countless incidents of benefits received  by those who didn't really need
them and benefits denied to those who could have really used them.  
 
My suggestion is to let everyone participate to the extent they had damage,
capped by the amount that the program can afford.  If the additional $4.2
billion doesn't arrive, lower the cap to $85,000 of benefit per household as
opposed to simply cutting off those who missed a criteria because of their
unusual circumstances.
 
If you would like to comment on this, you have two choices.  First, I've
attached a form you can print out, complete and mail to the LRA.  Their
address is:  Action Plan Comments, Office of Community Development, PO Box
94095, Baton Rouge, LA  70804-9095.  You can also fax this form to 225 342
1947.
 
To air your comments on line, you can go to the following site and complete
the form:  http://wwwprodapp.doa.la.gov/OCDSurvey/survey.cfm 
 
If you would like to air your opinion face to face, there's a meeting
tonight, 4/12/06 from 3 - 9 pm at the New Orleans Center for Creative Arts,
2800 Chartres Street (near Franklin Ave) New Orleans.
 
I honestly believe that if enough voices come out and / or send in their
comments, the LRA will hear them and modify their proposal so that it is
fair to all of us affected by Katrina.
 
 
Paul V. Perez