[StBernard] Lawmakers provide directions to Road Home

[Westley Annis]

Lawmakers provide directions to Road Home
Land bank, NORA to handle properties 
Monday, June 19, 2006
By Laura Maggi
Capital bureau 

BATON ROUGE -- In the last few days of the session, lawmakers have come to
agreements on how to deal with the scores of hurricane-damaged properties
expected to be purchased by the state in the coming months and years through
the Louisiana Recovery Authority's housing program. 

Under Senate Bill 445 by Sen. Lydia Jackson, D-Shreveport, which was sent to
Gov. Kathleen Blanco on Sunday evening, a nonprofit corporation will be set
up under the Louisiana Housing Finance Agency to receive the property and
decide what to do with it. 

Several senators said that it is their understanding that the Louisiana Road
Home Housing Corporation would hold the titles to property bought by the
state, but the intention of recovery authority officials is to transfer
bundles of land to local groups to make the redevelopment decisions. 

The Senate also gave final approval to Senate Bill 709 by Sen. Edwin Murray,
D-New Orleans, to expand the bonding powers of the New Orleans Redevelopment
Authority, which lawmakers said would better equip the organization to
handle tracts of land purchased by the state. 

"It keeps in place the emphasis on local control and planning that is
embodied in the Road Home program," said Jackson during debate about the
provision creating the corporation, which was added as an amendment to her
bill on the House side. The creation of the entity is backed by the Blanco
administration and the recovery authority. 

But Sen. Walter Boasso, R-Arabi, had some questions about the corporation,
saying there should be specific language in the bill that lays out how
property will be transferred to local entities. 

"We definitely have to have a place to hold these properties," said Boasso,
asking that the legislation be put in a conference committee to make sure
that any problems with the proposal are hammered out. "But what we are doing
is giving up the rights of the locals." 

Several New Orleans legislators countered that some entity needs to be
created while local governments draw up their plans. "This allows for, at
the local level, there to be some flexibility," said Sen. Ann Duplessis,
D-New Orleans. 

The corporation will have a seven-member board appointed by the governor,
with three members from the parishes most hard-hit by Hurricane Katrina and
three from the parishes most affected by Hurricane Rita. As property is
purchased by the state through the housing program, from people who take the
buyout or relocate options in that plan, the titles would be transferred to
the nonprofit corporation, therefore shielding the state from environmental
liability for the land, Jackson said. 

The proposal gives the corporation wide authority to deal with the property,
including whether to "finance, own, lease as lessee or lessor, sell,
exchange, donate or otherwise hold or transfer a property interest in
housing stock damaged" by the storms. 

In an interview, Jackson said the legislation narrowly tailors the
corporation's powers to align with the recovery authority's housing
proposal, saying that state officials want redevelopment to be spearheaded
at the local level. But in some cases, such as in rural areas that do not
have the entities or ability to deal with this property, the corporation
might have to decide what to do with it, she said. 

By a 23 to 14 vote, the Senate rejected Boasso's motion to send the proposal
to a conference committee to review the language creating the corporation,
instead sending the legislation to Blanco. 

The Senate quickly passed Murray's bill to rework NORA's bonding powers to
be able to handle economic development projects, as well as expanding the
group's board from seven to 11 members. The proposal was initially opposed
by New Orleans Mayor Ray Nagin, who rescinded his objection after a
discussion with Murray two weekends ago. 

NORA has long come under criticism for not dealing adequately with New
Orleans' pre-Katrina blighted-housing problem. But lawmakers have argued
that given proper support and authority, the group could be tapped to take
bundles of property bought by the state and either develop them according to
neighborhood plans or sell them to private developers. 

In approving the NORA bill late last week, the House added two amendments
that remove any "per diem" for days that are worked for board members and
ensure that each New Orleans legislator will have only one appointment to
the board. The board is appointed by the mayor from a pool of nominees
suggested by the Orleans Parish legislative delegation. 

. . . . . . . 

Laura Maggi can be reached at lmaggi at timespicayune.com or (225) 342-5590.