Time for an update on the latest developments on Louisiana’s Road Home program which compensates hurricane/flood damaged homeowners. It’s quite a mess indeed. Very few people have received their grants thus far. The program reports that 140,243 people have applied and there have been only 22,174 closings as of May 28. And now the program faces some very messy funding issues.
The progam is facing an enormous shortfall of funds which has triggered a nasty battle over who will make up the deficit. The shortfall is at least $2.9 billion but may end up as much as $5 billion or more according to a state auditor. The state says the feds ought to pay. The feds say this isn’t their fault blaming the state for paying out for wind damage rather than just flood damage which they claim they opposed from the start. There is evidence that is not the case however as the state points out their plan, approved by HUD, clearly stated homeowners would be compensated “regardless of cause of damage.”
As for Congress, as reported in the Times Picayune, Dollar Bill Jefferson has found “congressional allies
“don’t trust our numbers” and expect the
state to invest its own money in filling the Road Home
shortfall.” He also stated that members of Congress believe Louisiana has wasted money along the way.
This His view has credence given remarks by Rep. Maxine Water recently…
Taking her own shot at state officials, Waters said
she’s not convinced that the projected Road Home
shortfall is real.