Gov. John Bel Edwards has said the state wants for each of the estimated 36,500 households that suffered major or severe damage from the flood and didn't have insurance to receive something from the $1.2 billion the state secured from Congress last month. (Major and severe damage is defined as homes that took on at least a foot of water or sustained more than $8,000 in damage.)
Pat Forbes, director of the state Office of Community Development, outlined three potential scenarios of how that may happen during a meeting of the Press Club of Baton Rouge on Monday. A panel of leaders tasked with recommending how the disaster aid is spent could pick one or come up with a new proposal, based on feedback from the public.
Each of the proposals would establish tiers that direct how much money someone could get from the state's homeowner rebuilding assistance programs, based on income level. The poorest residents affected would get more than those whose income is higher.
Each plan is based on federal low-to-moderate income calculations. For example, according to the U.S. Department of Housing & Urban Development, the low-to-moderate income threshold for a family of four in some of the affected parishes would be up to $51,900 in East Baton Rouge, Livingston and Ascension; $53,100 in Lafayette; $41,600 in Ouachita; and $41,100 in Tangipahoa.
One scenario would establish five tiers starting with people who make 80 percent of the federal low-to-moderate income rate, who would be eligible for all of their rebuilding needs to be covered. Those who make 150 percent or more of the low-to-moderate income level would be at the other end of the spectrum, eligible for awards that cover half of their needs. Three income groups between would be eligible for awards in between.
In a second scenario, the 80 percent who fall in the federal low-to-moderate income level would have all of their costs covered. Everyone else, regardless of income, would be eligible for awards up to $35,000.
The third scenario would provide everyone who makes up to 120 percent of the low-to-moderate income level with awards to cover their total costs. Those who make above that would be eligible for half of their needs covered.
Homeowners can't get funding that duplicates money they have already received from FEMA, so for all options, the awards would be minus any past benefits.
"There are advantages and disadvantages to all of these," Forbes said.
The state expects to have homeowner programs in place by May, after each of the steps required by the federal government for the funds have been completed. "We're moving as fast or faster than any other disaster process has moved," he said of the pace.
Plans call for three programs for homeowners: a state-run construction program, a program that allows homeowners to select their own contractors that the state pays and a reimbursement program for homeowners who have already had work done.
Forbes said the goal is to spread the money across all whose homes suffered the most damage.
"What we've heard over and over again is 'Get something to everybody,'" he said. "This disaster didn't discriminate — it went through the doors of everybody in the flood area."
The state plans to put about $935 million of the money toward the programs that will help homeowners rebuild or repair their flood-damaged houses. That's on top of the $388 million that is going toward home programs that will go largely to the elderly and disabled in an initial round of funding from Congress. It's also separate from money that came down through FEMA.
The Restore Louisiana Task Force was supposed to hear the proposals on Friday, but that meeting was canceled because of the threat of wintry weather. The state can't formally submit its proposals until HUD publishes a notice in the federal register, so the plans wouldn't have been finalized at that meeting.
About 80 percent of the money must go to the parishes most severely impacted by the flood: East Baton Rouge, Livingston, Ascension, Tangipahoa, Ouachita and Lafayette.
And at least 70 percent must go to low or moderate income households, but Forbes said the state will seek a waiver from HUD to get around that requirement.
"The big objective is get as many people home as possible," Forbes said.
Forbes said the state's motivation is to keep communities whole.
"In essence, you don't have that neighborhood anymore. You don't have that same community," he said. "Obviously, with less than half the money we need to do that, it's quite a challenge."
Edwards will make two trips to Washington, D.C., next month to lobby Congress for $2 billion in additional aid.
"It's very clear to us and the congressional delegation that those funds are needed," Forbes said.
Here's how each of the proposed homeowner distribution scenarios would work for homeowners in East Baton Rouge, Ascension or Livingston Parishes. (Figures may vary for residents of other parishes.) Note: Any award would be minus benefits already received.
Scenario 1:
A family of four with a household income of $41,520 or below would be eligible for 100 percent of the estimated cost to rebuild or repair their home, minus FEMA or other benefits they already received.
A family of four with an average income between $41,521 and $51,900 would be eligible for awards of up to 80 percent.
Those that fall between $51,901 and $62,280 would be eligible for awards up to 70 percent.
The $62,281 to $77,850 tier could get up to 60 percent of their repairs covered.
And those whose income is above $77,850 would get 50 percent awards.
Scenario 2:
A family four with a household income up to $41,520 would be eligible for awards that meet their entire need, minus any previous benefits.
Families above $41,521 would be eligible for awards up to $35,000.
Scenario 3:
A family of four with a household income of up to $62,280 would have their entire need met, minus previous benefits.
Families above $62,281 would be eligible for awards that cover half their rebuilding needs.
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