A recent report discusses concerns voiced by Rep. Baker about the funding requested of Congress that greatly impacts the recently announced Louisiana Recovery Authority Plan (discussed here)

Baker wants federal assurance $4.2B can be used to build homes

Rep. Richard H. Baker, R-Baton Rouge, is working with the Bush administration to clarify that the $4.2 billion funding request it made to Congress last week for Louisiana housing assistance can be used for repairs and rebuilding of storm-damaged homes and not just removal of those homes.

In reviewing the legislative language of the funding request, Baker noted it included the directive that the activities covered by the funds "be subject to the requirements of section 404" of the Stafford Act. Section 404 refers to the FEMA-run hazard mitigation grant program's property acquisition and relocation process, which precludes commercial, residential or other uses of the land forever, and mandates that "any property acquired, accepted, or from which a structure will be removed pursuant to the project will be dedicated and maintained in perpetuity for a use that is compatible with open space, recreational, or wetlands management practices."

When announcing the funding request, the Bush administration said it would bring the total dedicated to Louisiana homeowners to $12.1 billion, which includes $6.2 billion in community development block grant funds already allocated by Congress and $1.7 billion for the same Federal Emergency Mangement Agency hazard mitigation buyout and relocation program.

Were Congress to approve the latest funding request as presented, it would mean that almost half the funds, or $5.9 billion, could be required by law to go toward removing those properties from commerce "in perpetuity."

"Perhaps the central issue to Louisiana's future depends on the tough decisions we make today with regard to the size of the footprint in which we rebuild," said Baker. "I'm not saying there won't be areas in which rebuilding would be unsafe and unwise, and it's a discussion we have a responsibility to undertake. My concern is that, should Congress adopt this language as written, it will programmatically end those discussions and make those decisions for us with permanent consequences."

Baker raised these concerns with Federal Gulf Coast Recovery Coordinator Donald Powell after the Blanco administration unveiled a preliminary housing assistance plan Monday that relies on the proposed $4.2 billion to offer homeowners options that include repair and rebuilding assistance.

"If that's the plan that's ultimately adopted, I want to make sure that the funds allocated can even be used for those purposes, and at present that's just not clear," Baker said

To view the online report please click on the following link:

Report on Rep. Baker's Concerns Regarding the Louisiana Recovery Authority Plan