[StBernard] Louisiana’s Recovery Continues Its Economic Impact in 2009

[Westley Annis]

Louisiana's Recovery Continues Its Economic Impact in 2009

More than $1.2 billion invested in housing, infrastructure since January

BATON ROUGE, La. - Almost four years into its recovery from hurricanes Katrina and Rita, the state of Louisiana continues to invest hundreds of millions in infrastructure and housing, including programs that promote safer building practices, repair public infrastructure and bolster the rental market.

In the first six months of 2009, the state invested more than $1.2 billion through its two largest sources of federal recovery funds, a pace of more than $7 million a day, Louisiana Recovery Authority Executive Director Paul Rainwater reported at the LRA's August meeting.

"As we pause to remember the massive destruction hurricanes Katrina and Rita wrought on our state, we must also acknowledge the unprecedented recovery effort underway almost four years after these disasters," Rainwater said. "We continue to invest millions in rebuilding projects and in the future of Louisiana's communities and their infrastructure and in its people and their homes. Though challenges remain, each day we move closer to the safer and stronger Louisiana we've envisioned."

In the first half of 2009, the state paid $617 million through the FEMA Public Assistance program for hurricanes Katrina and Rita rebuilding projects and another $670 million in Community Development Block Grant funds.

"While we have a lot more work to do, there has been tremendous progress over the past four years. Louisiana's rebuilding efforts have certainly come a long way. We will continue to work with our federal, state and local partners to make sure this progress continues," said Mark Cooper, director of the Governor's Office of Homeland Security and Emergency Preparedness, which administers the FEMA PA program.

In total, Louisiana has paid $4.7 billion through the FEMA PA program, which reimburses state and local entities for emergency work, debris removal and rebuilding or replacing damaged public infrastructure. Since launching the "Express Pay" program in 2008, it has processed more than 7,400 requests for payment in an average of five working days, paying out $1.42 billion.

In less than four years, Louisiana has spent more than $9.4 billion of its allocation of CDBG funds for Katrina and Rita recovery, which funds housing programs, including the Road Home, infrastructure improvements and economic development projects.

Between January and June of 2009 the state held 3,153 Road Home closings, disbursing a total of $464 million in Road Home grants, including $289.7 million in elevation funding. In total, the program has paid almost $8 billion to 124,504 homeowners across Louisiana. The average homeowner award is $64,055. Fewer than 600 cases remain in appeals.

The Small Rental program produced 1,039 rental units in the first half of 2009, which is roughly 57 percent of the program's total closings. This production included 891 units that now offer affordable rents. In total, the program has disbursed more than $85 million to landlords, creating 1,876 rental units.

The state's Piggyback program, which pairs CDBG funds with GO Zone Tax Credits to create mixed-income and affordable housing developments, opened nine developments in the first half of 2009. In total, 11 developments have been completed, representing 1,525 rental units, 738 of which will offer affordable rents. Seventeen more developments are under construction. Once complete, these complexes will produce more than 2,900 units statewide. The Piggyback program thus far represents a CDBG investment of $215 million in mixed-income and affordable housing developments.

The state's Long Term Community Recovery program, a $700 million pool of funds set aside for affected parishes' recovery projects, approved $192 million in locally envisioned infrastructure projects between January and June of 2009. In total, 134 infrastructure projects are approved, giving parishes access to almost $423 million in CDBG funds. The state has funded projects ranging from street repair to the creation of health clinics.

*	Visit http://lra.louisiana.gov <http://lra.louisiana.gov/action.cfm?md=emaillist&task=addMessageClickThru&msgid=686&uid=kfeReTl%3B&encoded=1&redirect=http%3A%2F%2Flra%2Elouisiana%2Egov>  to view Rainwater's presentation to the LRA board.

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.

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