[StBernard] Rep. Baker announces $74.5 million grant for Katrina cottages

[Westley Annis]

WASHINGTON – U.S. Rep. Richard Baker, R-Baton Rouge, today announced a $74.5 million grant from the Federal Emergency Management Agency (FEMA) to begin construction of Katrina cottages.   

This grant, part of a $400 million Alternative Housing Pilot Program, will allow the State of Louisiana to partner with private firms in the construction of an estimated 450-600 homes in South Louisiana.  Today’s long-awaited announcement comes months after the Louisiana Housing Finance Agency (LHFA) began planning for the program.  FEMA announced plans to distribute this funding in December, but was unable to do so until LHFA submitted a completed proposal.  The proposal submitted by LHFA and approved by FEMA includes a 10% administrative fee, or nearly $7.5 million, for LHFA to administer the program.   

In early 2006, Rep. Baker spearheaded the Katrina cottage model, which provides an alternative to “trailer cities,” and instead proposes the use of safer, more cost-effective, and longer-term alternative housing.  At Baker’s urging, House and Senate leaders last September adopted amendments to the Stafford Act which will allow Katrina cottages to be used in response to future disasters across the nation.    

“Although I have been discouraged by delays at the State level, I am pleased we are finally moving forward,” Rep. Baker said.  “ Louisiana has a unique opportunity to show the nation how to effectively provide long-term housing for disaster victims.  Housing people in cramped FEMA trailers for several years is unacceptable.  We can put people in quality housing, provide opportunities for homeownership and leave communities with an asset that will appreciate in value over time.   

“The Katrina cottage is safer, more attractive, and more cost-effective in the long run,” Baker added.  “Clearly the government must discontinue its practice of throwing billions at stop-gap measures that are ineffective and an inefficient use of tax-payer dollars, and this model brings us closer to achieving that goal.”  

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