Louisiana criticizes federal plan for homeowners

[cal04]

Source: Reuters

More Louisiana homeowners may not be able to repair hurricane-blighted properties after federal changes in how aid money is distributed, a state agency said on Monday.

The Louisiana Recovery Authority said state and federal authorities ended an impasse over how to deliver federal grants by agreeing to pay out lump sums to reimburse homeowners for damage sustained in hurricanes Katrina and Rita.

But the new plan could make it easier for lenders to seize the grants of up to $150,000 to satisfy unpaid mortgages and expose people to contractor fraud because it lacks protections established by the state-designed Road Home program, LRA officials said.

"H.U.D. basically said, 'You've got to do lump sum payments.' So if we end up with increased blight, it's because of HUD's policy," Recovery Authority housing task force chair Walter Leger said.

Read more: http://news.yahoo.com/s/nm/20070410/us_nm/neworleans_homeowners_dc

[BayCityProgressive]

1. it is clear what is happening here

Bush is the American Mugabe..he is clearing out the undesirables so that the vulture capitalists who support him can make a buck.

[Kurovski]

2. k&r. (NT)

[youngdem]

3. Actually, this isn't a big deal. Probably a good thing, actually

I live here in Nola. Here's the skinny.

First, LRA (Louisiana Road Home) contracted with a company that is simply NOT up to the task of evaluating the grant applications and awarding the funds.

Result? There are over 105,000 HOUSEHOLDS that are eligible and have applied for a grant, and the vendor was only handing out 400-1000 per MONTH, meaning it was gonna take FIVE YEARS PLUS to hand out the grant, which would have killed the city.

The LRA is simplifying the process for the vendor by allowing lump sum grants. This allows the lender (or the homeowner if the home is owned outright) to act as the bursar. This is taking TONS of work off the hands of the vendor allowing them to better focus on handing out the money, speeding up aid to more families.

The lenders are better prepared to handle construction disbursements anyway as they do it ALL the time for construction and construction plus loans. All this BS about lenders getting a chance to seize the money is a bunch of sour grapes by people who don't wanna give their lenders what is owed due to the prolonged period where they were not making regular or any payments. The bank has now and ALWAYS has had a first right to ANY funds lent or borrowed in the name of the property.

Really, the problem here is that applicants don't want to give the lender any crack at the funds. Sorry. Not reality. People need to get current with their lenders as well as repairing their homes.

Plus, a lump sum arrangement allows outright owners to better control costs, reduce construction time and contract with a general contractor for a total repair much easier than if that homeowner had to go back and forth to the LRA to get disbursements. Trust me - I deal with these folks several times a month. Dealing with the LRA is like dealing with the DMV if the DMV was run by hydrocephalic baboons.

This is much ado about nothing. Our more pressing needs are more funds for wetlands restoration, crime prevention, school improvement, basic infrastructure, more small business gap loans and grants, levees, and more visitors.

[Acadia Blue]

4. There are many of us who fall in the cracks. I can't repair my 4 acres

of downed trees because the insurance won't cover it, and I certainly am not going to deplete all our retirement for it. Thus I am in a donut hole. And like everyone else I can't finsh getting my house fixed because there are no workers. At least I have a roof. Most damage on the North shore was wind and trees. And some water got in with the hole in the roof.

No one outside of Louisiana knows how really bad it is here.

[youngdem]

5. You got that right. No one knows

Every time I have a visitor down and give them the tour, they cry. They say they didn't have any idea how bad it actually is, STILL.

Sorry about your trees. You should try contacting lumber companies if you haven't already. It may be too old now, but late last summer a client of ours got free tree removal because the trees were of decent quality. Some companies will clear your land of downed trees for free or discounted if the trees have any timber value. Then, all you have to do is clear brush.

Bummer that most folks don't realize that their trees are uninsured unless it is hitting an insured structure. I am in construction and many of our clients were effected in the same way.

Best of luck to you.

[bleedingheart]

6. I was visiting your city back in October...I was shocked at the damage

I know a number of different folks told me to come back because they wanted tourists to return to help boost the economy...my trip was for business so we went to a number of restaurants to wine and dine customers

[youngdem]

7. Thanks for coming. I hope you return

The city for tourists is in great shape. Uptown looks normal, the French Quarter never closed, really. The sights are pretty much open. The casino is open. Museums are all open. So, for tourists, it's fine.