[StBernard] South Louisiana Communities Need Disaster Loan Forgiveness

[Westley Annis]

Dear Friend, 

            Ever since Hurricanes Katrina and Rita, south Louisianians have
seen our fair share of empty promises from the federal government. 

            In January 2010, Vice President Joe Biden visited south
Louisiana and made a crystal-clear commitment (see the video here
<https://iqs3.solutions.lmit.com/iqextranet/iqClickTrk.aspx?&cid=quorum_vitt
er-iq&crop=19230.156072154.13640326.15092090&redirect=http%3a%2f%2fwww.youtu
be.com%2fwatch%3fv%3dcnVc7h1zH2Y> ) that the Obama administration would
forgive Community Disaster Loans (CDLs) issued to local governments who had
to make very tough budget decisions immediately after the devastation of the
2005 storms.  The vice president emphatically said to these local officials,
"When you apply [for loan forgiveness].you're gonna get the money!" 

            But that just hasn't been the case. More than a year since the
vice president made this statement, only 25 percent of valid local
government applicants have been granted full forgiveness.  56 percent have
received nothing at all, and another 19 percent have received only part of
what they're due.  That means that 75 percent of Louisiana applicants have
not gotten the result Vice President Biden so clearly and emphatically
promised them. 

            Essentially, FEMA is requiring that local governments must incur
three years of deficits to qualify for forgiveness.  But this unfair
requirement paralyzes local governments that made very tough decisions after
the hurricanes and slashed their budgets in order to operate within their
means. Just because the Obama administration doesn't understand the concept
of operating within their means doesn't make it OK to punish local
governments who do. 

            I recently led 14 Louisiana parish and local officials in
sending a letter to Vice President Biden demanding that he and the Obama
administration make good on their word to forgive Community Disaster Loans
from Hurricanes Katrina and Rita.  Click here
<https://iqs3.solutions.lmit.com/iqextranet/iqClickTrk.aspx?&cid=quorum_vitt
er-iq&crop=19230.156072154.13640326.15092090&redirect=http%3a%2f%2fvitter.se
nate.gov%2fpublic%2findex.cfm%3fFuseAction%3dPressRoom.PressReleases%26amp%3
bContentRecord_id%3d1e427fc5-f18e-f1b2-ef2c-bfe1fad2174d%26amp%3bRegion_id%3
d%26amp%3bIssue_id%3d>  to see the letter and the full list of officials who
signed it with me, and click here
<https://iqs3.solutions.lmit.com/iqextranet/iqClickTrk.aspx?&cid=quorum_vitt
er-iq&crop=19230.156072154.13640326.15092090&redirect=http%3a%2f%2fwww.nola.
com%2fopinions%2findex.ssf%2f2011%2f05%2fvice_president_joe_biden_shoul.html

>  to read an editorial in the New Orleans Times-Picayune supporting our

efforts. 

            We're urgently requesting a meeting with Vice President Biden
and FEMA Administrator Craig Fugate to discuss in detail our frustrations
with the CDL forgiveness process.  Many local government agencies in south
Louisiana are still struggling to avoid further layoffs and provide basic
constituent services, and we must cut through the red tape and find a
solution that treats our communities fairly by giving them full CDL
forgiveness. 

Sincerely, 

David Vitter 
United States Senator