Louisiana Gov. Blanco reveals rebuilding plan
There appear to be a number of plans and proposals, but not much action yet. Here's the latest plan:
Gov. Kathleen Blanco outlined a $7.5 billion plan to help Louisiana residents rebuild, repair or sell their hurricane-damaged homes, although uncertainties remain about whether Congress will provide the money and which state agency will distribute it.
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Assistance would be capped at a maximum $150,000 per homeowner under the proposal. But direct relief is still months away, and homeowners receiving the aid could be taking on more debt to rebuild.
The draft faces scrutiny from local officials, state lawmakers and the affected residents; and it depends in large part on federal dollars awaiting congressional approval.
The plan would provide money to repair or rebuild damaged homes and to relocate people who want to build elsewhere in Louisiana. For those who don't want to relocate or rebuild in Louisiana, the plan would buy them out at 60 percent of the pre-storm home value.
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An estimated 128,000 owner-occupied homes had major damage by the storms and 210,000 more received minor damage, according to Blanco's Louisiana Recovery Authority.
According to the article, there are no restrictions on what neighborhoods would be eligible, but construction under the program would be subject to new federal building codes that "haven't been finalized", which some residents worry might "price them out of rebuilding." The article also says that anyone rebuilding in the flood plain would be required to buy flood insurance, which could pose another economic barrier. The article also explains various other limitations, deductibles, and conditions, some relating to previous FEMA or insurance payouts.
There's no mention if this is being coordinated with the Bring Back New Orleans Commission, or how it fits the various urban planning concepts proposed in their initial report, or whether a proposed Crescent City Recovery Corporation would control the funds as recommended by the Commission.
With no restrictions by neighborhood, Blanco's plan does seem to be in conflict with the most controversial part of the BBNO plan, which would require each neighborhood to make a case for rebuilding and present a plan to the commission. It also called for a four-month moratorium on building permits. Some critics view these provisions as a play by Mayor Nagin and developers (one of whom is on the Commission) to freeze out Lower 9th Ward residents and set up a land grab.