[StBernard] HUD approves Governor Blanco's plan for Louisianas recovery

[Westley Annis]

HUD approves Governor Blanco's plan for Louisiana's recovery 

$368 million to support small business assistance, rebuilding critical
infrastructure and start-up costs for The Road Home 

BATON ROUGE, La- Today Governor Kathleen Babineaux Blanco learned from
Housing and Urban Development (HUD) Secretary Alphonso Jackson that he has
approved $368.4 million for Louisiana's action plan to help the state
recover from the devastation of Hurricanes Katrina and Rita. 

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.

To read the full text of Louisiana's approved action plan, visit
http://www.doa.louisiana.gov/cdbg/DRactionplans.htm
<http://www.doa.louisiana.gov/cdbg/DRactionplans.htm> .


-30-


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