Louisiana Recovery Authority director: Hurricane recovery entering

New Orleans CityBusiness, Aug 25, 2008

The recovery from the 2005 hurricanes is entering its "final stage," said the executive director of the Louisiana Recovery Authority.

"We are now moving forward into the final stage of recovery and proving that great things are happening all around us," Paul Rainwater said. "School by school, block by block, the state of Louisiana is rebuilding and recovering from one of the world's largest disaster.

The Federal Emergency Management Agency has provided more than $32 billion to help Louisiana's recovery since hurricanes Katrina and Rita pounded the state in 2005. Katrina's third anniversary is Friday.

FEMA, the LRA and the Governor's Office of Homeland Security and Emergency Preparedness have used the funds for displaced families, repairing and rebuilding public buildings and mitigating structures against future disasters.

"In the three years since Hurricane Katrina, Louisiana's recovery includes countless examples of healing and rebirth," said Jim Stark, acting associate deputy administrator of FEMA's Gulf Coast Recovery Office.

"These examples serve as proof of the remarkable progress that has occurred to date and provide an optimistic indication of the restoration that is still to come. One strong indication is the federal funds now available to state and local governments throughout Louisiana. They have a substantial amount of money to draw from to begin rebuilding schools, hospitals, roads, courthouses and other projects that support their communities."

FEMA cites Individual Assistance grants totaling more than $6.1 billion that have helped homeowners and renters affected by the hurricanes. That figure includes:

- $4.1 billion for housing assistance: temporary housing, minimal home repair and permanent housing construction;

- $1.6 billion for other needs assistance: personal property replacement, vehicle repair/replacement and medical/dental expenses;

- $331.8 million in disaster unemployment assistance; and

- $96.6 million for crisis counseling services.

After the hurricanes, nearly 92,000 Louisiana families were housed in travel trailers or mobile homes at the peak of FEMA's emergency housing program. Today, 89 percent have moved out of the temporary units, FEMA said. FEMA also said 106 of the 111 FEMA- funded group sites in Louisiana have closed.

FEMA said there are fewer than 10,350 families in travel trailers or mobile homes throughout the state.

After the 2005 hurricanes, FEMA and the U.S. Department of Housing and Urban Development created the Disaster Housing Assistance Program to provide interim disaster housing assistance for Katrina and Rita victims. Through the program, families are provided short-term rental assistance and case management services. Through an interagency agreement, FEMA agreed to provide $565 million to cover rental assistance and case management services for approximately 45,000 families through March 2009.

Under FEMA's Public Assistance Program, $7.1 billion in federal funds have been approved to address the needs of state and local governments and certain private nonprofits. These funds can help the recovery of schools and universities, libraries, hospitals, churches, jails, community centers and police and fire stations. In the past year, the amount of eligible Public Assistance dollars has increased nearly $2 billion, with $1 billion committed to long-term rebuilding projects, FEMA said. So far, Louisiana has paid out more than $3.7 billion in Public Assistance funds to local applicants.

In March, Louisiana launched the Express Pay System, a program designed to reduce the wait time for local governments seeking reimbursement for rebuilding projects through FEMA's Public Assistance Program. FEMA says the average wait time for reimbursement is now 8 days, compared with 45 to 60 days before the launch of EPS. Since the launch of EPS, the state has invested more than $312 million, paying on more than 1,500 reimbursement request forms.

"We have seen real, substantial change for local applicants through the Express Pay System," Rainwater said. "The ability to pay contractors in a timely manner has made it possible for local governments to revitalize their communities with a renewed sense of confidence and optimism."

In the first two years after Katrina, the majority of Public Assistance funds were committed to recovery projects such as debris removal and emergency protective measures. A total of $3.2 billion has gone toward emergency work in Louisiana.

"The state of Louisiana has moved into the rebuilding of a much- needed infrastructure," said Mark Cooper, GOHSEP's director. "This year alone the state has streamlined 63 percent more Public Assistance funds in Louisiana. We will continue to work diligently to process funds and make sure that we do this in an efficient and accountable manner."

FEMA describes "noteworthy successes" in public sectors such as health care and research, education and public safety. More than $529 million in FEMA-funded grants have been provided for health and research projects to help health care providers and medical training programs around the state return to their pre-Katrina condition. Within the education sector, more than $2.4 billion in FEMA funding has been provided for the recovery of the state's education system, covering kindergarten through 12th grade and higher education.