[StBernard] Allocation of Second CDBG Appropriation Action Plan Published for Review

[Westley Annis]

Allocation of Second CDBG Appropriation Action Plan Published for Review

Public Invited to Comment on Action Plan for $4.2 Billion


BATON ROUGE, La. (November 30, 2006) - The Louisiana Recovery Authority (LRA) and Office of Community Development (OCD) published an Action Plan for public comment today. The proposed plan contains technical changes to the way federal Community Development Block Grant (CDBG) funds are allocated to the state and addresses federal statutory requirements for serving low- to moderate-income families. Although the state has previously published program descriptions linked with the use of these funds, including the Road Home Housing Programs, HUD requires an Action Plan that documents those dollars that are tied to the second appropriation of disaster funds totaling $4.2 billion. 

Congress has appropriated to Louisiana a total of $10.41 billion in disaster recovery monies. These funds were appropriated in separate appropriation bills. The first was awarded as $6.21 billion on December 30, 2005, while the se! cond was awarded as $4.2 billion on June 15, 2006. This Action Plan illustrates how the state will adhere to the additional requirements included by Congress and HUD in the second appropriation. Those additional requirements include:

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	No funds from the second appropriation may be used as matching funds for other federal government programs.
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	Of the second appropriation, at least $811,907,984 of Louisiana's allocation must be used for repair, rehabilitation, and reconstruction (including demolition, site clearance and remediation) of affordable rental housing stock including public and other HUD-assisted housing in the impacted areas.
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	Before Louisiana expends any funds to meet the minimum requirement for affordable rental housing, the Governor of Louisiana shall demonstrate to HUD Secretary Jackson's satisfaction that the State will provide funds or has identified resources sufficient to meet the key disaster recovery needs for repair, rehabilitation, and reconstruction of affordable rental housing stock, including public housing disaster recovery in the most impacted areas.
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	Louisiana must target 70 percent of its disaster recovery funds for the second appropriation toward the disaster recovery needs in the New Orleans-Metairie-Bogalusa Metropolitan Area.
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	Both appropriations of disaster CDBG funds must demonstrate that more than 50 percent of the funds benefit low- to moderate-income families.

The LRA Board of Directors approved the allocation formula for how program expenditures should be divided between the two appropriations at their November board meeting. No program changes are proposed in the Action Plan, as it was designed to solely address the technical allocation of funds as mandated by HUD. 

Citizens, community leaders and elected officials can access the plan online by clicking http://www.doa.louisiana.gov/cdbg/dractionplans.htm <http://www.doa.louisiana.gov/cdbg/dractionplans.htm>  and opening Proposed Action Plan for the Use of Disaster Recovery Funds Allocated by P.L. 109-234, or request a copy by phone by calling (225) 342-7412.

Once public input is reviewed, the final pla! n will be presented to the LRA Board for a final vote, and then considered for approval by Governor Kathleen Babineaux Blanco, the State Legislature, and HUD. 

Hurricanes Katrina and Rita devastated South Louisiana, claiming 1,464 lives, destroying more than 200,000 homes and 18,000 businesses and inflicting about $25 billion in insured losses. The Louisiana Recovery Authority (LRA) is the planning and coordinating body that was created in the aftermath of these storms by Governor Kathleen Babineaux Blanco to lead one of the most extensive rebuilding efforts in the world. The LRA is a 33-member body which is coordinating across jurisdictions, supporting community recovery and resurgence, ensuring integrity and effectiveness, and planning for the recovery and rebuilding of Louisiana.


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