Big Plans Sputter in New Orleans

NEW ORLEANS — In March 2007, city officials finally unveiled their plan to redevelop New Orleans and begin to move out of the post-Hurricane Katrina morass. It was billed as the plan to end all plans, with Paris-like streetscape renderings and promises of parks, playgrounds and “cranes on the skyline” within months.

But a year after a celebratory City Hall kickoff, there have been no cranes and no Parisian boulevards. A modest paved walking path behind a derelict old market building is held up as a marquee accomplishment of the yet-to-be-realized plan.

There has been nothing to signal a transformation in the sea of blight and abandonment that still defines much of the city. Weary and bewildered residents, forced to bring back the hard-hit city on their own, have searched the plan’s 17 “target recovery zones” for any sign that the city’s promises should not be consigned to the municipal filing cabinet, along with their predecessors. On their one-year anniversary, the designated “zones” have hardly budged.

“To my knowledge, I don’t think they’ve done anything to any of them,” said Cynthia Nolan, standing near a still-padlocked, derelict library in the once-flooded Broadmoor section, which is in the plan.

“I haven’t seen anything they’ve done to even initiate anything,” said Ms. Nolan, a manager in a state motor vehicles office who has painstakingly raised her house here nearly four feet. “It’s too long. A year later, and they still haven’t initiated anything they decided to do?”

The library still bears the cross-hatch markings made by emergency teams in the days immediately after Hurricane Katrina, to indicate whether any bodies were inside (there were none).

The city official in charge of the recovery effort, Edward J. Blakely, said the public’s frustration was understandable, but he suggested that bureaucratic hurdles had made moving faster impossible. Mr. Blakely said crucial federal money had only recently become available, the process of designing reconstruction projects within the 17 zones was time-consuming, and ethics constraints on free spending were acute, given a local history of corruption.

“It took us 11 years to do downtown Oakland,” said Mr. Blakely, an academic from California who specializes in helping cities recover from disasters. “This is a process of urban redevelopment. You cannot do this overnight, no city, anyplace in the world.”

Mr. Blakely has been given broad authority — a staff of more than 200 and jurisdiction over eight agencies — in a municipal hierarchy where the mayor, C. Ray Nagin, has adopted a hands-off role. Criticized last year for frequent trips to Australia, where he holds a university post, Mr. Blakely said he had not been there for some months.

The growing frustration points up what has been a recurring theme in New Orleans’s sketchy, on-again, off-again recovery from Hurricane Katrina: grandiose official promises, apparently made to lift the public’s morale, that soon prove unrealistic.

“They come up with these plans that look great and sound great,” said Sheila White, a Mid-City resident. “They give people hope. Then, they fall into the background. Promises are made, and they are not kept.”

Donna Brown, president of a neighborhood group in the Gentilly section, said she had seen no movement from the Nagin administration.

“I was told there would be groundbreaking Sept. 1, but I haven’t seen anything,” Ms. Brown said. “I’m not sure what’s going on. My neighbors are quite frustrated. I’m sure we’re all pretty much aggravated and frustrated about not seeing results.”

Many of the hardest-hit neighborhoods remain stuck where they have been for months, with a few houses on a block occupied and the rest in varying stages of abandonment or repair. In Broadmoor, one block might appear carefully restored by residents, while another will seem derelict. Vacant grassy lots newly pepper the city, ambiguous signs of progress: blighted houses recently sat on them, but construction has often not followed demolition.

The grim housing projects have started to come down, part of a federal replacement plan. But an acute shortage of low-cost housing spurred hundreds to wait hours in line for rental assistance vouchers in mid-March, the biggest crowd officials said they had ever seen. Financing for dozens of developments in New Orleans now appears uncertain, thanks to the national downturn.

Meanwhile, the repopulation of the city after the storm that emptied it has slowed notably. The Census Bureau’s latest estimate, 239,000, represents barely over half the former population — and well under what local officials and New Orleans demographers have been claiming for months. Unemployment is lower than the national average, at 4.1 percent, thanks largely to construction, but high-end jobs are few, more expensive homes sit unsold for months, and the biggest economic development project in sight, a medical complex including a new Department of Veterans Affairs hospital, is years away. The French Quarter, hub of the vital tourism business, is crowded on weekends but empty during the week.

Mayor Nagin remains an elusive figure, occasionally surfacing to take strong issue with local news media portrayals of him, but otherwise delegating much responsibility for the recovery to Mr. Blakely. In one recent venture into the public light, Mr. Nagin complained bitterly when The Times-Picayune published a photograph of him playfully brandishing an M-4 rifle at the police chief during a news conference; the newspaper then published a front-page apology.

Civic leaders are relatively unguarded in their criticism. “The question is, is he relevant anymore?” asked Rob Couhig, a lawyer who ran against Mr. Nagin and then served as an unpaid adviser to him.

“What does he do that the city couldn’t do without him?” asked Mr. Couhig, who is the secretary of the New Orleans Redevelopment Authority, a city agency.

“Obviously, Mayor Nagin continues to serve as mayor of this city, making him the leader of the recovery efforts,” a spokesman responded by e-mail, adding: “Just two weeks ago he led a delegation to Washington, D.C., to lobby Congress regarding our most pressing recovery priorities.”

In the city’s renewal plan, most of the 17 redevelopment areas still bear tentative designations like “preliminary design” or “planning” on a municipal Web site that officials say is up to date. In some areas, no development projects are indicated at all, and on the few that indicate “construction,” actual results seem small-scale — new paving on a basketball court and a new corrugated metal roof over it, in an otherwise forlorn playground, next to an empty, boarded-up school, in a neighborhood, Hoffman Triangle, full of abandoned houses and teenagers hanging out at midday. Another project under “construction” nearby involves replacing “damaged ceiling tiles” at a police station.

Mr. Blakely conceded that progress so far was “still light stuff. I think people were expecting they’d wake up one morning and it would be nirvana. But little things are happening, cleanups, fixups, and so on.” On a driving tour, he pointed to new grass in the median of St. Claude Avenue, and street improvements. Buildings on either side, though, were dilapidated or appeared unused.

Three weeks ago Mr. Blakely announced more projects, including playgrounds, ball fields and swimming pools, as part of the recovery plan.

There have been some uniquely New Orleans hang-ups as well, said the recovery director; “lot of tensions in the staff,” revolving around race. “Black people have a hard time taking instruction from white people,” said Mr. Blakely, who is black. There is resentment “if a white person asks them to do something. It’s really bad. I’ve never encountered anything like this.”

His staff is under pressure from residents — “the people are on them every day, about when are things going to be done” — and the tension was evident in glum faces last week at a staff meeting presided over by Mr. Blakely in a downtown building.

In the neighborhoods, the verdict is still out on Mr. Blakely and his plan.

Leonard Montegut, asked for his assessment of the recovery director, said: “Right now, I can’t think of anything. I think time will tell.”

Mr. Montegut was mowing the grass in front of the apartment building he owns in the Hoffman Triangle, next to the playground that has been one of the few beneficiaries so far.

Stacy Head, a city councilwoman, said: “I’m trying to remain hopeful. I’m ready for some action. Their approaches are smart. But we’re still waiting.”

Katrina Victims May Have to Repay Money

NEW ORLEANS (AP) -- Imagine that your home was reduced to mold and wood framing by Hurricane Katrina. Desperate for money to rebuild, you engage in a frustrating bureaucratic process, and after months of living in a government-provided trailer tainted with formaldehyde you finally win a federal grant.

Then a collector calls with the staggering news that you have to pay back thousands of dollars.

Thousands of Katrina victims may be in that situation.

A private contractor under investigation for the compensation it received to run the Road Home grant program for Katrina victims says that in the rush to deliver aid to homeowners in need some people got too much. Now it wants to hire a separate company to collect millions in grant overpayments.

The contractor, ICF International of Fairfax, Va., revealed the extent of the overpayments when it issued a March 11 request for bids from companies willing to handle ''approximately 1,000 to 5,000 cases that will necessitate collection effort.''

The bid invitation said: ''The average amount to be collected is estimated to be approximately $35,000, but in some cases may be as high as $100,000 to $150,000.''

The biggest grant amount allowed by the Road Home program is $150,000, so ICF believes it paid some recipients the maximum when they should not have received a penny. If ICF's highest estimate of 5,000 collection cases -- overpaid by an average of $35,000 -- proves to be true, that means applicants will have to pay back a total of $175 million.

One-third of qualified applicants for Road Home help had yet to receive any rebuilding check as of this past week. The program, which has come to symbolize the lurching Katrina recovery effort, is financed by $11 billion in federal funds.

ICF spokeswoman Gentry Brann said in an e-mail Friday that the overpayments are the inevitable result of the Road Home grant being recalculated to account for insurance money and government aid given to Katrina victims.

Brann said there was a sense of urgency in paying Road Home applicants, and ICF and the state knew applicants would have to return some money.

''The choice was either to process grants immediately or wait until the March 2008 deadline (for submitting Road Home applications) before disbursing any funds,'' Brann said in her e-mail.

Brann pointed out that 5,000 collections cases would represent a 4-percent error rate for the Road Home that is ''quite good for large federal programs.''

Frank Silvestri, co-chair of the Citizen's Road Home Action Team, a group that formed out of frustrations with ICF, sees it far differently.

''They want people to pay for their incompetence and their mistakes. What they need to be is aggressive about finding the underpayments,'' he said. ''People relied, to their detriment, on their (ICFs) expertise and rebuilt their houses and now they want to squeeze this money back out of them.''

The prospect of Road Home grant collections comes less than two weeks after the Louisiana inspector general and the legislative auditor said they were investigating why former Gov. Kathleen Blanco paid ICF an extra $156 million in her waning days in office to administer the program. With the increase, ICF stands to earn $912 million to run Road Home, a contract that also sweetened its initial public stock offering, and helped it buy out four other companies. It now reaches into government contracting sectors that include national defense and the environment.

Paul Rainwater, executive director of the Louisiana Recovery Authority, the state body that asked for the Blanco-ICF investigations, acknowledged the collections could be painful for applicants, many of whom have used up their nest eggs to rebuild.

''The state must walk a fine line of treating homeowners who have been overpaid with fairness and compassion and ensuring that all federal funds are used for their intended purpose,'' said Rainwater, an appointee of new Gov. Bobby Jindal.

Upon receiving money from Road Home, grantees sign a batch of forms, including one that says they must refund any overpayments.

Melanie Ehrlich, co-chair of Citizen's Road Home Action Team, which has documented Road Home cases that appear littered with mistakes, said she had no confidence that ICF had correctly calculated overpayments. She charged that the company was more likely using collections as retribution against people who had appealed their award amounts in effort to get the aid they deserved.

''I think they are looking for ways to decrease awards and that's part of dissuading people,'' she said.

Brann said applicants are told an appeal could boost or diminish their award. She called Ehrlich's charge ''a totally unfounded assertion.''

Contaminated homes denied funds

It was one thing for Leatrice Roberts to find out that the government had sold her a townhome built on top of a waste dump. But it was mindboggling to learn, at age 74, that the Road Home can't buy her out because the land is contaminated.

"You talk to this one at Road Home, you talk to that one, nobody can tell you if she'll get her money," said Roberts' daughter Patricia, who now lives in Lakeview with her disabled mother and serves as her caretaker.

The state's $10.3 billion Road Home program pays homeowners up to $150,000 to rebuild their homes or to buy them out and transfer the land to a New Orleans redevelopment authority. Financing for the program comes from the U.S. Department of Housing and Urban Development, which currently runs HANO -- the same agency that decades ago built the Press Park complex where the Robertses' storm-damaged townhome is located.

In the past two weeks, state officials informed homeowners such as Leatrice Roberts who lived atop the old Agriculture Street landfill before Hurricane Katrina hit that their Road Home applications had been placed on hold indefinitely because they live on a Superfund cleanup site. The EPA in 1994 added the 9th Ward enclave to its Superfund list, but said the area could be made safe with mitigation steps such as the replacement of topsoil.

On Thursday, state spokeswoman Christina Stephens said state agencies were working with local leaders and the EPA to come up with a policy for using HUD financing to buy the properties on the Superfund site.

HUD said its money can't be used to purchase contaminated land, but that it would work with the state to come up with a solution.

Federal subsidies

Homeowners in the neighborhood argue that they are entitled to compensation when it was HANO and the city of New Orleans, backed by federal subsidies, that built the homes on an old city dump, placed public housing tenants there and sold the homes to poor residents in a rent-to-own initiative. The neighborhood included a subdivision development called Gordon Plaza.

HUD spokesman Brian Sullivan said the federal housing agency sympathizes, but doesn't consider itself a party to the dispute.

"We appreciate the fact that it must be a maddening situation for these homeowners," he said.

Late Thursday, Stephens said the state decided to put applications from former residents of the landfill neighborhood back into the Road Home pipeline. Blending elements of two Road Home options, the property owners would have their grants calculated based on a regular rebuilding grant, but they also would be allowed to use the money to relocate. She said the state was still working out details of the policy, including who would assume ownership of the properties.

"We can't keep these people in a holding pattern forever," Stephens said.

The land's hidden legacy

The Robertses believe they were the second family to move into the HANO Press Park complex when it opened in 1970. When HANO showed the widowed Leatrice Roberts the property, she recalls that nobody told her it was on top of the old 95-acre landfill, a city dump from 1909 to 1958 that briefly reopened after Hurricane Betsy in 1965.

Everyone in the neighborhood knew Roberts' Montegut Street townhome by the heavy door with "Roberts" in a gold-painted iron design in the middle. After Hurricane Katrina flooded the townhome and destroyed the roof, someone took that door.

Leatrice Roberts now uses a wheelchair because of heart problems, diabetes, high blood pressure and a blood clot in her lungs. She's been waiting for Road Home to buy her out since her first appointment in November 2006, and using her Social Security checks to pay $1,500 in monthly rent.

The property deed of Roberts, for many years a subsidized renter at Press Park, shows she purchased her townhome from HANO on Nov. 4, 1991, three years before the EPA found dangerous levels of lead in the ground and declared the area a Superfund site. A few years after that, Roberts and her other daughter, Gail Wells, were diagnosed with cancer, they said. Roberts lost a kidney and Wells had ovarian cancer, but both say they are now cancer-free.

During the same year that the site was added to the Superfund list, school officials shut down Moton Elementary School, across Abundance Street from the row of townhomes, citing fears of the health effects of buried waste. But local and federal officials at the time turned aside residents' pleas for a buyout of their homes.

Post-storm contamination

After Hurricane Katrina, when the EPA tested the ground in New Orleans and gave the city a clean bill of health, there was one glaring exception: In the old Ag Street landfill area, yards had 50 times the normal level of the cancer-causing petroleum byproduct benzo(a)pyrene.

Nevertheless, FEMA trailers were supplied for properties in the area. Road Home officially initially said the program would provide rebuilding grants, but not buyouts, in the area. And HANO told homeowners they could move back into their homes, even though a judge had called the neighborhood unfit for people.

Roberts is among hundreds of former Press Park and Gordon Plaza residents waiting for HANO and the city to pay a class-action judgment, in a suit sparked by pre-Katrina contamination issues. It took 13 years to win the lawsuit in Civil District Court, where Judge Nadine Ramsey declared the neighborhood "unreasonably dangerous" and "uninhabitable." She ordered HANO, the city and their insurers to pay fair-market value, plus amounts ranging from $4,000 to $50,000 for emotional distress, depending on how long a resident lived at the site before contamination was found in 1993.

On Jan. 30, the state's 4th Circuit Court of Appeals largely upheld Ramsey's ruling, although it cut the emotional distress awards in half. On Thursday, HANO appealed to the Louisiana Supreme Court and other defendants are expected to also press appeals, said plaintiffs' attorney Suzette Peychaud Bagneris.

Bagneris said she has asked the Road Home for more than a year to offer buyouts to the Ag Street landfill homeowners, just as the program has done for those affected by the Murphy Oil spill that occurred during Hurricane Katrina in St. Bernard Parish.

"Our requests fell upon deaf ears," Bagneris said.

Stephens said the Murphy Oil spill is not limited by federal rules governing Superfund sites. The Murphy Oil spill has its own section in Road Home policies. Until the state's decision Thursday, there had been no policy for Superfund sites.

Population Rebounds In Storm - Hit New Orleans: Census

WASHINGTON (Reuters) - New Orleans, abandoned by thousands of residents after destructive floods and hurricanes in 2005, was one of the fastest growing metropolitan areas in the United States last year, according to a report released by the U.S. Census Bureau Thursday.

The Louisiana city's population climbed by 4 percent, with an increase of 39,885 residents between July 2006 and July 2007, making it the eighth-fastest growing metro area in the country, the bureau said.

Hurricanes Katrina and Rita slammed into other cities along the Gulf of Mexico in the summer of 2005, and the census said they, too, saw modest increases in their population last year. In Mississippi, Gulfport had 1.8 percent population growth and Pascagoula had 1.6 percent growth. Beaumont, Texas, experienced a 0.5 percent increase in population, and Louisiana's Lake Charles a 0.4 percent increase.

In 2006, the nonprofit research organization Rand Corporation estimated fewer than 200,000 people were living in New Orleans, compared to 485,000 in 2000. Residents were evacuated to cities around the United States and many never returned.

In general, eight of the ten cities with the highest rate of increase were located in the South, the census said, including Palm Coast, Raleigh, Gainesville, Austin, Myrtle Beach, Charlotte and Clarksville.

The 50 fastest-growing cities were split roughly between the South and the West, according to the census, with none located in the Northeast.

In terms of numerical growth, the cities with the largest gains were concentrated in the Southwest, with Dallas netting the most new residents last year at 162,250, according to the census.

The Riverside, San Bernardino and Ontario metropolitan area in California, called "The Inland Empire" by some locals, gained 86,660 residents last year, ranking it fifth in terms of population increases despite a foreclosure crisis that has gripped the desert region for more than a year.

According to RealtyTrac, a database compiling foreclosure rates, foreclosures in Riverside and San Bernardino counties were among the highest in the nation at the end of 2006, in the middle of the census' survey period, and they continue to grow as the housing boom fizzles. Earlier this month, RealtyTrac said the area had the fifth-highest foreclosure rate nation-wide.

Nagin OKs demolition of Lafitte housing complex

The light-brown bricks of the Lafitte public housing complex will soon be rubble.

Mayor Ray Nagin signed its demolition permit Monday, allowing the destruction of all but 196 units, which are being preserved temporarily for returning public-housing residents.

Shortly after the City Council voted in December to demolish the "Big Four" public housing developments, the mayor signed three of the four permits. Since then backhoes and dumptrucks have been working steadily to pull down and haul away apartment buildings at the B.W. Cooper, C.J. Peete and St. Bernard complexes.

But the mayor kept his pen from Lafitte's demolition permit, saying that the U.S. Department of Housing and Urban Development hadn't handed over what he and the City Council had requested. Specifically, as a condition of demolition the mayor and council wanted to see the redevelopers' financing plans, master-development agreements signed by all resident councils, documentation that the Housing Authority of New Orleans had provided enough affordable housing for returning public-housing residents, and an expansion of HANO's current one-man board to include local representation and input.

The mayor had always maintained that he would authorize the Lafitte demolition when HUD provided the necessary paperwork.

Still, preservationists and public-housing advocates held out hope that Lafitte's demolition was being reconsidered. They argued that Lafitte was better designed and maintained than the other complexes being razed and that it was an integral part of the culturally rich 6th Ward.

Those hopes were dashed Monday afternoon after the mayor said that he and council members were "comfortable" that HUD was honoring its wishes.

"We're really disappointed," said Walter Gallas head of the New Orleans field office for the National Trust for Historic Preservation. "We believe that the city, HUD, and HANO are making a big mistake."