[StBernard] LRA Board Recommends Programs to Allocate Remaining Infrastructure Dollars

[Westley Annis]

LRA Board Recommends Programs to Allocate Remaining Infrastructure Dollars

Funding Plans Approved for State-of-the-Art Hospital, Private Schools, Fisheries and Parish Recovery Projects

BATON ROUGE, La. (December 18, 2006) - The Louisiana Recovery Authority (LRA) board of directors approved a range of funding plans Thursday for a new hospital, private schools and colleges, fisheries, infrastructure, parish recovery projects and small businesses. Should Governor Kathleen Babineaux Blanco, the Louisiana Legislature and the US Department of Housing and Urban Development (HUD) approve these plans, almost all of the state's $10.4 billion in Community Development Block Grants (CDBG) for housing, infrastructure and economic development will have been allocated. 

The board approved an action plan recommending the allocation of $74 million in CDBG funds allowing the state's Division of Administration to acquire land and commission architecture and engineering design work for the new Medical Center of Louisiana - New Orleans (MCLNO). 

The vote also cemented the LRA's commitment to support an additional allocation of $226 million for the hospital's construction. At the LRA's request, Louisiana State University (LSU) Health Care Services Division and the state's Division of Administration committed to submitting to the LRA revised strategic plans and financial analysis for the hospital that consider the possibility of future reforms of the state's health care financing system. 

The plan will come before Governor Blanco, the full Legislature and HUD for final approval. 

"We are pleased to support LSU's effort to build a state-of-the-art teaching and research hospital," said LRA Infrastructure and Transportation Task Force Chairman John T. Landry. "This joint venture between LSU and the Veterans Administration will provide top quality health care to residents throughout the New Orleans region."

MCLNO was recognized as an essential academic medical center for the delivery of three critical services by LSU in the Greater New Orleans region, including education, research and health care delivery. 

To address costly damages incurred by many private, non-profit schools, colleges and universities, the board approved a plan to recommit the allocation of up to $40 million of CDBG funds to cover the 10% non-federal match of the Federal Emergency Management Agency (FEMA) Public Assistance grants. 

It is estimated that private, non-profit schools and universities sustained nearly $500 million in damage, following Hurricanes Katrina and Rita. The board will consider final approval of the action plan amendment at a subsequent meeting, before the plan is considered by Governor Blanco, the Legislature and HUD. 

In a move to cover FEMA ineligible repairs to state buildings damaged by the storms, the board approved a resolution to recommend allocating an additional $135 million of CDBG funds to the State Building Infrastructure Program, increasing the funding for this program from $142.5 million to $277.5 million. 

It is estimated that state-owned buildings suffered approximately $1.71 billion in damage from Hurricane Katrina and $43 million in damage from Hurricane Rita. FEMA-ineligible repairs are expected to cost almost $220 million.

After hearing an update from city leaders, the board approved a recommendation to allocate $200 million in CDBG funds for the implementation of long-term community recovery planning efforts. This work will include economic, environmental, housing and public safety projects. The funding was recommended for approval under the agreement that:

*	The local communities select and submit projects to the LRA that address their local recovery needs
*	The local project prioritization must include broad-based community participation and approval, as indicated by inclusion in a broadly accepted recovery plan, public meeting and/or input opportunities, Council or Police Jury resolution, or other such mechanism
*	The projects prioritized by the local communities must be consistent with the LRA's priorities and with regional plans

Action Plan Amendments will now be published for public comment, setting the stage for final LRA board approval, then approval by Governor Blanco, the full Legislature and HUD. 

Several Southeast Asian fishermen contributed public comment in advance of the board's vote to support the allocation of $20 million in CDBG funds to help restore the fishing industry by restoring and improving infrastructure damaged by last year's storms. 

It is estimated that the fishing industry lost $582 million in damage and lost revenues following the hurricanes. The vast majority of that damage was sustained by privately-owned equipment and infrastructure, which are not eligible for FEMA Public Assistance. 

"The fisheries resource, for the most part, is recovering well following Katrina and Rita, and those in the industry who have been able to return to work are having success," said Louisiana Department of Wildlife and Fisheries (LDWF) Secretary Bryant Hammett. "The proposed CDBG assistance will enable a greater number of fishing industry businesses to resume work and contribute to the state's economic recovery."

The resolution noted the fishing industry's importance to the state's economy, as it generated more than $2 billion in annual revenues before the storms. 

Now, an Action Plan Amendment for assisting fisheries will be developed with input from the fishing industry, LDWF and others to make sure the dollars are spent as effectively as possible. Upon completion and final approval by the LRA Board, the measure will move to Governor Blanco, the full Legislature and HUD. 

In the final vote of the day, the board recommended approval of a $100 million dollar pilot grant program to help small businesses struggling to rebound from Hurricanes Katrina and Rita. The plan, announced by Governor Blanco and LRA officials last week, would be funded by redirecting funding previously committed to other small business loan programs. 

The $100 million is in addition to the $38 million already allocated for no interest loans. The additional funds would provide financial relief to sustain and restart small businesses in the most severely impacted areas, primarily in Orleans, St. Bernard, Plaquemines and Cameron Parishes. 

The program will come before the full legislature and HUD for final approval. The LRA, the Louisiana Department of Economic Development (LED) and the Office of Community Development are working to expedite this process. 

To be eligible for the program, businesses must be located in: 

*	Areas that flooded as a result of Katrina or Rita that experienced greater than 30 percent decline in revenue compared to the same quarter before the storm(s), or
*	The remaining 20 damaged parishes that experienced two losses due to the storms--more than $10,000 in tangible losses and greater than 30 percent decline in revenue.

The board also approved an amendment stating businesses with 50 or fewer employees at an individual branch would be considered for assistance on a case by case basis. 

Pending final approval of the proposed Action Plan amendment, the state will determine eligible amounts and expects to begin accepting applications in January. Interested businesses should sign up to receive updates at www.LouisianaForward.com < http://www.LouisianaForward.com> . 

In addition, the board approved a plan containing technical changes to the way CDBG funds are allocated to the state and address federal statutory requirements for serving low- to moderate-income families. 

Congress 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 second was awarded as $4.2 billion on June 15, 2006. The plan approved Thursday illustrated how the state will adhere to the additional requirements included by Congress and HUD in the second appropriation.

No program changes were proposed in the plan, as it was designed to solely address the technical allocation of funds as mandated by HUD. The plan now moves to Governor Blanco, the Legislature and HUD for final approval. 

During the afternoon session, the board heard an update from the state's Office of Community Development and the state's contractor, ICF International, on the Road Home homeowner assistance program. 

As of Thursday, the program had received more than 88,000 applications and held or scheduled almost 60,000 appointments. More than 10,100 benefit option letters had been sent to homeowners while grants averaged more than $78,000. 

Board resolutions and presentations for Thursday's board meeting are available on the LRA website at www.lra.louisiana.gov <http://www.lra.louisiana.gov> . 

Hurricanes Katrina and Rita devastated South Louisiana, claiming 1,464 lives, destroying more than 200,000 homes and 18,000 businesses. 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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