[StBernard] Senate Adopts Landrieu Amendment That Frees Funds to Redevelop Disaster Impacted Properties

[Westley Annis]

Senate Adopts Landrieu Amendment that Frees Funds to Redevelop
Disaster-Impacted Properties

 

WASHINGTON - The United States Senate late last night unanimously adopted an
amendment authored by Senator Mary Landrieu, D-La., to make $2.25 billion in
Neighborhood Stabilization Program (NSP) dollars in the Economic Recovery
Package available to redevelop properties damaged or destroyed by natural
disasters. The NSP was created in the 2008 Foreclosure Prevention Act to
allocate money to localities for repurchasing, rehabilitating, renting or
reselling foreclosed or blighted properties. Sen. Landrieu's provision
expands the eligible uses of these funds to include properties impacted by
natural disasters. 

            "The inclusion of this commonsense provision in the package is a
huge win for Louisiana, the Gulf Coast and Midwestern states that have been
devastated by recent natural disasters - and it comes at no additional cost
to taxpayers," Sen. Landrieu said. 

The percentage of homes along the Gulf Coast that were destroyed as a result
of Hurricanes Katrina and Rita far exceeds the foreclosure rate in
Louisiana. Almost 80 percent of the homes in St. Bernard Parish sustained
major or severe damage as a result of the 2005 storms. Louisiana received
$38 million in NSP funds in last year's foreclosure bill, but none could be
used to redevelop Katrina and Rita-destroyed properties.

"We have another opportunity to send NSP funds to Louisiana in the economic
recovery package," Sen. Landrieu said. "The provision the Senate passed last
night provides the flexibility to free this money to redevelop properties
destroyed by disasters, which will greatly benefit the recovery effort along
the Gulf Coast." 

Almost 8,000 disaster-impacted properties in Louisiana will benefit from the
Landrieu provision: 3,887 in Orleans Parish, 3,790 in St. Bernard Parish,
115 in Jefferson Parish and 15 in Washington Parish. All of these properties
have cleared environmental review and are "shovel ready." In addition,
properties in Presidentially-declared disaster areas in the Midwest will be
able to use these funds to redevelop disaster-destroyed properties. 

"Thousands of blighted properties dot neighborhoods all across Louisiana,
including many sold to the state through its Road Home program after Katrina
and Rita," said Paul Rainwater, Executive Director of the Louisiana Recovery
Authority. "These properties are more than just eyesores - they pose threats
to safety and public health and deter economic development and rebuilding in
many communities.

"Having a source of federal funds dedicated to demolishing these blighted
homes is necessary to restore our struggling neighborhoods, redevelop
returning communities and remove some routinely flooded properties from
commerce. We thank Senator Landrieu for recognizing what a drain these
properties are on Louisiana."

"This amendment marks a critical step forward for the people of New Orleans
who want to see their neighborhoods come back," said Richard Monteilh,
Executive Director of the New Orleans Redevelopment Authority (NORA).
"Stimulus funding can now be accessed by disaster-impacted cities like New
Orleans to redevelop demolished or vacant properties."

According to the National Foreclosure Prevention and Neighborhood
Stabilization Task Force, the NSP funds in the bill will help communities
hit hard by foreclosures to purchase and rehabilitate an additional 57,000
properties. In doing so, this program will also create 45,000 jobs. 

Should the Economic Recovery Package pass the Senate, the Senate's version
will be reconciled with the version passed by the House of Representatives. 

Cosponsors of Sen. Landrieu's amendment include: Sen. Charles Grassley,
R-Iowa; Sen. Tom Harkin, D-Iowa; Sen. Kay Bailey Hutchison, R-Texas; Sen.
Thad Cochran, R-Miss.; Sen. Ben Nelson, D-Neb.; and Sen. Roger Wicker,
R-Miss.