In response to a Servicer's inquiry, Gina Hayes, Assistant Director of the St Bernard Building Department, responded with the following: 

Question: Who will own the land if the property is demolished and what is the city's intentions after the properties have been demolished?
Response: When a structure is demolished, ownership of the property, then a vacant lot, is retained.  Since the properties are individually owned, St. Bernard Parish Government plays no role in redevelopment of individual lots of property other than limiting such development with regard to building codes and zoning ordinances.
 
Question: How does the city or borrower determine that the home's estimated cost to repair exceeds 50% of the pre-Katrina value?
Response: With regard to damage percentages, St. Bernard Parish Government relies upon assessments provided by FEMA.  Residents who contest these assessments are allowed to submit assessments by independent structural engineers.  Additionally, residents also have the option to submit a pre-Katrina appraisal along with a contractor’s cost estimate.
 
Question: What impact will this have on the mortgage holder?  Will there be a lien placed, etc.?
Response: With regard to impact on banks and lending institutions, I am unsure.  Ordinarily, demolishing a structure on a piece of property would greatly reduce its value.  However, considering the state and condition of the homes being demolished, this may not be the case.