[StBernard] HUD Approves Reallocation Funding to Bolster the Road Home

[Westley Annis]

HUD Approves Reallocation Funding to Bolster the Road Home

BATON ROUGE, La. -- The Department of Housing and Urban Development announced its approval of four Action Plan Amendments, including Louisiana's reallocation of funds to the Road Home program. 

Among the approved plans were those to expand the state's Small Firm Loan and Grant Program and funds for community planning capacity. Three were amendments to the first Action Plan for disaster recovery Community Development Block Grant funds - Amendments 13, 15, and 16 - and one was a change to the second Action Plan - Amendment 4. The plans, put forth by the Louisiana Recovery Authority and Governor Kathleen Babineaux Blanco, were approved by the Louisiana Legislature before going on to HUD. 


"We have gone to great lengths to ensure that homeowners who are eligible for Road Home grants have the dollars they need to rebuild. This reallocation was part of that effort," said LRA Housing Task Force Chairman Walter Leger. 

Yesterday President Bush signed legislation that Congress passed last week allocating an additional $3 billion to the Road Home program. To date, the program has provided critical funding to more than 68,000 homeowners across Louisiana's hurricane-hit parishes, totaling more than $4.2 billion. Because original federal estimates of housing damages were too low, and the initial outlay of funding was too little, the Road Home was facing a shortfall of $3- $4.5 billion.

"These Action Plan Amendments demonstrate the State's willingness to respond to the needs of its citizens as the recovery progresses," said Michael Taylor, director of the Disaster Recovery Unit, Office of Community Development, which administers the funds. "HUD has recognized the State's desire to be willing to move funding where it will be most effective and for that we are appreciative."

Included in today's approvals was the state's reallocation of $68 million to expand the Small Firm Loan and Grant Program to $180 million to allow more businesses to access to vital low-cost financing in the form of grants and zero-interest loans. To address potential shortfalls in the Road Home Homeowner Assistance Program, HUD has approved more than $625 million in reallocations from other CDBG disaster recovery programs to the Road Home.

In order to fund additional planning efforts the State has reallocated $3 million from the Technical Assistance Program to Planning activities to address ongoing planning needs resulting from the impact of Hurricanes Katrina and Rita at the local government level. 

All of the funding is part of $10.4 billion in CDBG funds that have been allocated to Louisiana to implement housing, economic development, and infrastructure recovery projects. 


About the Office of Community Development
The Office of Community Development (OCD) is the State's implementation body charged with the expenditure and programmatic oversight of federal Community Development Block Grant funds awarded for Louisiana's rebuilding initiatives. OCD works in concert with the Louisiana Recovery Authority to assure that program design adheres to the parameters and requirements of CDBG funds. OCD also works with federal, state, and local officials to assure that programs and initiatives meet the needs of communities and its citizens.

About the Louisiana Recovery Authority
The Louisiana Recovery Authority is the planning and coordinating body that was created in the aftermath of hurricanes Katrina and Rita by Governor Kathleen Babineaux Blanco to plan for the recovery and rebuilding of Louisiana. The authority is working with Governor Blanco to plan for Louisiana's future, coordinate across jurisdictions, support community recovery and resurgence, and ensure integrity and effectiveness. Working in collaboration with local, state and federal agencies, the authority is also addressing short-term recovery needs while simultaneously guiding the long-term planning process. Visit www.lra.louisiana.gov 
<http://www.lra.louisiana.gov>  to learn more.

To view the Action Plan Amendments:
Action Plan Amendment 4 
<http://www.roadcommunications.com/assets/other/Action%20Plan%20Amendment%204.pdf> 
Action Plan Amendment 13 
<http://www.roadcommunications.com/assets/other/Action%20Plan%20Amendment%2013.pdf> 
Action Plan Amendment 15 
<http://www.roadcommunications.com/assets/other/Action%20Plan%20Amendment%2015.pdf> 
Action Plan Amendment 16 
<http://www.roadcommunications.com/assets/other/Action%20Plan%20Amendment%2016.pdf> 

To view HUD Approval Letters:
Amendment 4 Approval Letter 
<http://www.roadcommunications.com/assets/other/HUD%20Approval%20Letter_4.pdf> 
Amendments 13, 15, 16 Approval Letter 
<http://www.roadcommunications.com/assets/other/HUD%20Approval%20Letter_13_15_16.pdf> 

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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