All Those Federal Funds: Why the New Orleans Recovery is Slow

For commenters to my posts on New Orleans who keep asking a variant of "why, with all the federal billions sent down there, is the city's recovery so slow?", an authoritative answer is now available, thanks to this report in today's Times-Picayune.

Some highlights:

Researchers concluded that "enormous obstacles" blocked the recovery for homeowners, most of whom faced shortfalls to rebuild, and renters, who cannot find moderately priced places to rent.

In New Orleans, 81 percent of Road Home recipients received awards that did not cover the needed repairs to their homes. The average shortfall was $54,586

"Road Home" grants were based on pre-Katrina property values, so houses in poorer areas of town, like the lower 9th Ward, had greater disparities between Road Home grants and the cost of replacement. That's a nice touch. But there's more...

The program to help rebuild rental housing -- essential to the return of working-class families to the city -- is stuck in the preliminary stage, after almost three years. One key reason:

Because of federal requirements, it is a reimbursement program, so most landlords have to get private financing and then recoup their investment, a substantial hardship for those who are paying mortgages on their property without any rental income

Doesn't look like corruption, or Democratic state officials, or any of the other bogeymen usually cited by outsiders have much role in this slow-motion disaster. Looks like President Bush, who claimed victory yesterday at Jackson Barracks then skedaddled out of town, really didn't mean his promise three years ago at Jackson Square to do whatever was needed to help the city return, revive, and rebuild. Imagine that.

Comments

[haleywins]

Another view of the visit to Jackson Barracks.

http://blog.nola.com/lolisericelie/2008/08/bush_pats_same_backs_he_stabbe.html

[jhNY]

The Unspoken Plan has changed the demographics and the political leanings of the the city Of New Orleans, in that it's a whiter, wealthier , if smaller, group as a whole who are there now. The Black and the poor are back in substantially fewer number. That means the Plan worked. And now a reliably democratic enclave is not so reliably Democratic.

Compare the Katrina disaster with the Bush brothers' tag-team all-empathy, all-the-time reaction to hurricane damage in Florida. No comparison. The Republicans conceive of government as an unworkable monster that deprives the worthy of their fair reward, which can only be defeated by shoveling federal dollars in the direction of fellow Republicans, and only in their direction. That's why I disagree with the notion that your town or home could be next to be neglected by our federal government. Depends on who you are, and where you live.

[luziannagirl]

Scroll down to T-Boy's comments about native Louisiana tradesmens' problems in working in post-hurricane New Orleans. Your words AND your name have the ring of truth, T-Boy!

Note that none of the upcoming Presidential debates will be held in New Orleans, scene of the beginning of the un-raveling of the Bush Administration and Republican power juggernaut.

What that tells me is that New Orleans' challenges seem very daunting for BOTH parties.

It also tells me that citizens of New Orleans and Louisiana should be taking a bi-partisan, non-political approach to solving them.

No matter which party is in power, and at every level of government we should push for more governmental transparency, inclusiveness, and competency at every level. We should all be working together to not only rid ourselves of the infamous "who-you-know" corrupt Democratic Party-style politics, but also to make Republican Party no-bid , opaque "public private partnerships", and their broken, shrunken and incompetent government a thing of the past.

Good government is government that works for everyone of every party.

[StealthisBlog]

Help us Obama-wan-Kenobi, you're our only HOPE!

[glitzqueen]

Anybody else notice how much faster Shrub and His Thugs got emergency supplies to the Caucasus than to the Delta? And planes are bringing more goodies into Tbilisi every day.

[Bienville]

As of yesterday, August 24, the Floridians seeking FEMA assistance after Tropical Storm Fay still did not have an address to which to send their applications. Not even a hurricane, and FEMA can't cope with the emergency.

[lewes17266]

Hagee and Robertson said Katrina happened because their vengeful God was angry over a homosexual parade scheduled in New Orleans.

Our politicians go to these holymen for endorsement.

Our media gives these holymen the attention they so crave.

How long before someone stops giving these holymen credibility with exposure?

The very people who should be exposing fraud are the ones offering them the welcome mat.

It is disgusting.

[rphillips4165]

Have people not figured it out yet that Katrina knocked out the infrastructure of NO. That means there really insn't any sewer system or electrical grid or any of those things. It is going to take decades before these things are replaced. Even though I hate the Bush government, I'm not sure if this is their fault. Why is anybody going to invest in fixing these problems if there may not be any houses of people to live there for ten or fifteen years. New Orleans is now just a small town. It is going to have to grow back just like all other small towns. One house and family at a time. And that's a slow process.

[Durango]

In the mean time the Federal Government has been building a 1/2 to 3/4 billion dollar water project for a couple Indian tribes in SW Colorado to deliver municipal and industrial water that nobody needs.

It is called the Animas La Plata Project. And is being constructed nearly 100% with Federal taxpayers dollars. In addition Operations and Maintainence will also be paid by the taxpayers, far into the future. (This is unprecedented fo a Federal water project)

One of the tribes involved, is probably the wealthiest in America. Aurthur Anderson, in commenting on their natural gas operations said the only thing you could compare them to is Kuwait.

The combined population of both Tribes is perhaps 4-5,000 people.

Did I mention both tribes got no bid single source contracts to build the boondoggle? Which by itself raised the cost of the Project by 25-50%

But here is the beauty of the scheme. There is no use for the water. Water enough for a city the size of Denver.

It is just a matter of how much tax dollars you spend to buy political influence these days. New Orleans is simply the wrong kind of people. or the wrong kind of influence.

if you have enough money to buy the influence, you can get the Federal Government to do almost anything. No matter how crazy or corrupt.

[lobear00]

Durango, first read up on your history in regards to the Treaties made by the Government and the "Native Americans.
The only two wealthy Indian Tribe and Community, is in Connecticut and Minnesota. Lay off the Native American. "Our Government has been "Robbing" these "Americans since the first clown set foot on these shores.

[Harry Shearer - Huffpost Blogger]

There is a sewer system, there is an electrical grid, phones are working (usually). That's what's been happening these last three years....

[mightbesane]

Part 2

What about property rights? Due process? Just as we declare martial law when ordinary means of keeping the peace are ineffective and the public welfare is threatened by extraordinary events, so we should have declared a martial housing plan - a Marshall Plan for New Orleans.

Which would have been the better result? What exists today? The residents of New Orleans scattered, their neighborhoods devastated still? Or those same residents back in their neighborhoods, in new homes, at less cost, with a few court cases to settle?

I choose the latter.

[mightbesane]

PART 1

I'm married to a native of New Orleans, I've visited friends and family there numerous times since the Seventies. I've come to a conclusion with which many of my most liberal of friends and family reluctantly agree.

Many of the homes that volunteers worked so hard to clean up will never be inhabited, should not be inhabited given the universal prevalence of disease-inducing mold. The very ground on which they stand was contaminated from the toxins in the flood waters. After thirty days, the structures should have been bulldozed, the soil tested, and building envelops stripped of contaminated soil as necessary and leveled.

Enough money has been spent on emergency shelter, FEMA trailers and reconstruction in New Orleans to build a Katrina Cottage on every one of those bulldozed lots. Katrina Cottages, for those not familiar, are made of quality materials, can be bug-proofed and flood-proofed, and are designed to serve as temporary homes in the corners of lots or to be expanded to become primary residences. Where there was a house, build a house.

We know that many families, particularly in the Upper and Lower Ninth, don't have clear title to their homes. Deceased owners of generations past left them to children or siblings or cousins without wills. without deed transfers. Fine. Appoint a czar...Jimmy Carter comes to mind. Set up - dare I say it - tribunals to mediate disputes. One way or another, get people into those houses.

[amp27]

It's sad isn't it. New Orleans is so historic, it's heartbreaking to have to rebuild all those wooden structures. You should put your idea to Obama. The Bush adm. is too busy trying to control the world's oil, and make everyone serfs who cannot stand up to their dictatorship, to look out for the little people, or be organized about how to re-build. They only know how to dismantle and rape...the constitution, Iraq, the US economy....I hope Bush goes into federal prison for all of his crimes. Cheney, Rove and Rumsfeld too. Wolfowitz if possible. But try out the OhBoy OBama site and put your ideas on the message board. Who knows, maybe his aides read it. You have an excellent idea!

[Bozwellian]

We ordinary folks are getting rather tired of hearing about the BILLIONS and realizing how much has been misspent and sometimes even enlightened to realization that some of the same folks who got lucrative contracts to rebuild in Iraq, got similar ones to rip off here at home as well. (those fema trailers filled with unhealthful fumes, think of the truckloads of ICE that were sent back an dforth on the highways and oh so much else ..Check how deeper evalutation of the dike repairs says they are NOT up to par either or check to see how many FORMER residents have been able to return to their "homes"...and then , listen up to how McC proclaimes that "WE" are all Georgians...and hear the HUH? whats this "WE" fella and why are WE sending billions over there to repair what the RUSSIANS destroyed ? We've got some serious infrastructures HERE IN THE HOMELAND THAT NEED REPAIR and yet told NO FUNDS AVAILABLE ...SAY WHAT ?

[sparafucilli]

When are we going to learn that these guys never "walk the talk". To them and their like (aka McCain) the thought is the deed because they are never held accountable and have rigged things so that can't be.

[Sparhawk]

The Federal Government is involved. This whole fiasco surprises people?? Isn't this the definition of insanity? Doing the same thing over and over again (relying in the Gov't) and expecting a different result??

[Durango]

There is nothing inherently wrong with the Federal Government.

It is who is running that government.

Republicans claim that government can't work. And then prove it when they are in power by using tax dollars to pay off political cronies and campaign contributors. (heck of a job Brownie) or the auction off segments of the government to the highest bidder.

What is going on is incompetence and corruption on an unbelievable scale.

Because the people in charge, Republican, don't want the government to work efficiently.

[StealthisBlog]

Funny though that all of the senior citizens I know that access health care through the federal government by way of Medicare have NO complaints and think it is well run. So no the federal government doesn't screw up everything.

Say Sparhawk how do you feel about the US military? Is that a big Clusterscrew as well? Seems as if the military is administered by the federal government, I've heard.

Help us Obama-wan-Kenobi! You're our only HOPE!

[lexnekst]

Just disgusting.

I'm sorry, but if this were Colorado or Iowa- we'd be 2 years past clean-up. I know exactly what it is.

[Bienville]

Why not share?

Exactly, what is "it"?

[GoCards1978]

Force people to jump through an endless number of hoops to get crumbs and most of them will give up. The Bush administration never intended to restore a Democratic enclave in a sea of red.

[RTIII]

Yours should be a HUF PO PICK!
.

[TBoy]

I live 140 miles west of NO - Opelousas. I know dozens of tradesmen. None of them will work in NO. They are justifiably afraid that the sub-contractor above them will leave town or go bankrupt before they are paid for their work. They cannot afford to get screwed.

The only friend I know who actually attempted to work in the city is a native of NO. He owned a bobcat with a grapple bucket as well as other tools. After three months of working for free he actually had to declare bankruptcy and lost his equipment.

Now how is it he made a living in the city BEFORE the storm but only lasted three months after all of that federal money started rolling in? Well, it never rolled in. It rolled by. From one giant, well connected contractor to another. Each took a cut. Finally the little bit that was left at the end somehow never made it to the man or woman actually performing the work.

It was bad enough for the so-called direct federal money. The private homeowner or small business who depends on insurance money to pay contractors & sub-contractors? Between the delays and denials the tradesmen gets screwed again.

So the bottom line is that a great number of the rebuilding and restoration is done by homeowners and small business owners personally or undependable and often sub-par workers.

[MetryJen]

You're dead on, Tboy. My boyfriend is a trim carpenter, and he's been through several employers in the last few years. All that's available is either big companies that only pay $8 an hour, or little guys that after a few months run out of work (or money).

You'd think in a city with half the homes destroyed a specialty carpenter would stay busy, but somehow it never works out that way.