[StBernard] State of Louisiana Moving Forward with Plans for Potential Gustav, Ike Rebuilding Aid

[Westley Annis]

State of Louisiana Moving Forward with Plans for Potential Gustav, Ike Rebuilding Aid

BATON ROUGE, La. - The Louisiana Recovery Authority, heeding Governor Jindal's call to cut through red tape in recovery, is pushing forward plans to give federal rebuilding dollars to parishes to address their critical needs, including housing and infrastructure repair. The plans decentralize funding to allow local leaders to set priorities for their communities.

"While we do not yet know how much federal aid Louisiana will get from the pool of $6.5 billion set aside for rebuilding programs, we are moving aggressively forward with formulating programs and policies," said Paul Rainwater, executive director of the LRA. "One thing is clear: we must find a way to get communities rebuilding aid more quickly than the state did in the past, so we are looking for ways to simplify processes."

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	Click here for a fact sheet. <http://lra.louisiana.gov/action.cfm?md=emaillist&task=addMessageClickThru&msgid=21&uid=dGkdg%2Eo%3C&encoded=1&redirect=http%3A%2F%2Flra%2Elouisiana%2Egov%2Fassets%2Fdocs%2F100908ActionPlan%2Epdf> 

While FEMA and SBA assistance will be the first round of funding available for home repairs, in addition to insurance proceeds, the state will offer parishes the option to fund rebuilding programs to replace their lost housing stock. Early estimates show that Louisiana could have more than $1 billion in uninsured housing loss from hurricanes Gustav and Ike. 

The U.S. Department of Housing and Urban Development (HUD) administers the federal Community Development Block Grant (CDBG) program and has until November 30, 2008, to announce how it will allocate at least one-third of the pool of $6.5 billion in CDBG funds approved by the Congress in September for recovery in states affected by Gustav and Ike.

Louisiana estimates that it could get around $1 billion in CDBG funds for Gustav and Ike recovery, but this money has not yet been allocated to the state and is subject to federal approval of Louisiana's plans. Despite not having its allocation amount yet, the state is moving forward with publicly vetting its plans and seeking necessary approvals. 

Next Wednesday, October 15, the LRA board is slated to hear a presentation on and vote to approve a draft Action Plan for public comment that outlines potential uses for these funds, including housing and infrastructure repair programs to be run at the local level, aid for the agriculture and fishing industries, and economic recovery. LRA staff will reach out to local officials, legislators and the public to get input on the Action Plan.

Each parish will receive a pool of funds to administer rebuilding programs for housing and infrastructure locally. The state will outline allowable uses for the funds in the Action Plan and then work with parishes to approve their program design.

"We will push federal funds to local governments and give them choices on how they wish to address these critical needs rather than keeping the money in Baton Rouge," Rainwater said. "Our plan will outline some acceptable methods for administering programs, but we will not dictate how parishes prioritize their funding or who they choose to implement their programs."

Parishes may choose to use some or all of their allocations on housing, with the option to offer homeowners rebuilding incentives, elevation funding and voluntary buyouts. 

Following board approval, the LRA staff will work with local leaders and members of the public to gather input on the Action Plan. Federal regulations require the state publish action plans for public comment before submitting them to HUD for approval.

Any necessary changes will be made and the plan finally approved by the LRA board in November, with Legislative hearings and approval to follow.

Created in the aftermath of Hurricane Katrina and Hurricane Rita in 2005, the Louisiana Recovery Authority (LRA) is the coordinating and planning body leading the most extensive rebuilding effort in American history. The central point for hurricane recovery in Louisiana, the LRA works closely with the Governor's Office of Homeland Security and Emergency Preparedness (GOHSEP) and partners with state and federal agencies to oversee more than $20 billion worth of programs, speed the pace of rebuilding, remove hurdles and red tape and ensure that Louisiana recovers safer and stronger than before. For more information about the LRA and its 17-member board, visit lra.louisiana.gov.

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