FEMA to close Renaissance Village trailer site May 31

BAKER -- Margaret Chopin is quick to share her photograph of an East Baton Rouge Parish garden home, highlighting its well-kept lawn, ample garage and generous space for her husband, son and granddaughter.


But the New Orleans native and former Gentilly resident won't call it home any time soon.

Because a possible lease on the property fell through, Chopin shows it off only to illustrate the frustration and longing that come with living in a Federal Emergency Management Agency trailer in Renaissance Village, which opened in October 2005 in the wake of Hurricanes Katrina and Rita.

For Chopin and her neighbors, most of them from the New Orleans area and most having lived in Renaissance Village since it opened, the angst magnifies daily with the approach of FEMA's May 31 deadline to close all its remaining group trailer sites.

At one time the largest concentration of the travel trailers along the Gulf Coast, Renaissance's fences now envelop fewer than 190 trailers. This is down from the 580 that once filled the expansive gravel lot, which is just a short drive from the Louisiana Capitol. Residents have no monthly rent but do pay for propane.

Those who are left essentially have two choices: Find permanent housing or move to a hotel for 30 days on the federal government's dime while continuing their hunt.

Most would qualify for subsidized rent under a program financed by FEMA and run by the U.S. Department of Housing and Urban Development. Residents would have to contribute $50 rent the first month, with their share increasing by $50 each month thereafter. The subsidy would end when the beneficiary covers the full rent amount or in March 2009, whichever comes first.

"I think some people think FEMA is going to come down out of the sky and give a lump sum to the people still here," said resident Bonnie Vernon, originally from Metairie, as she folded clothing in the communal laundry facility before hauling it back to her trailer in a red wagon with only three wheels. "I don't see how anybody who's lived through the last two years could believe that."

Manuel Broussard, spokesman for FEMA's Gulf Coast Recovery Office, described the situation as an opportunity for flood victims to couple self-reliance with the aid of FEMA case workers and the financial boost from the HUD-FEMA Disaster Housing Assistance Program to resume their lives.

'There's no way'

Statewide, group sites account for about 900 of the 20,146 FEMA trailers that were occupied as of April 4. More than 80 percent of those still in group sites were renters before the storms.

All residents are assigned a FEMA case worker to provide rental listings and put them in touch with potential landlords, but residents must secure the leases.

Broussard expressed concerns about meeting the closure deadline for parks in places such as Plaquemines Parish and southwest Louisiana, where he said trailer occupants outnumber viable rental units. But, he said, "we believe we're going to be in pretty good shape" getting the last 185-plus households out of Renaissance.

A more pessimistic view pervades among Renaissance residents, employees and Catholic Charities case managers who work in the park alongside FEMA's case workers. Citing a web of aggravating factors, they said the transition from a trailer is easier to talk about than to accomplish.

Wilbert Ross, displaced from the Lower 9th Ward, said "there's no way" FEMA will meet its deadline at Renaissance. Ross already has left the park once, but could not keep up with his rent.

Sam Sammartino, disaster response director for the Diocese of Baton Rouge, noted that FEMA has failed to meet previous deadlines for other Baton Rouge-area parks -- Mount Olive, Granberry, Sugar Hill -- typically by several months. He said Catholic Charities even attempts to slow down some residents who might be signing a lease they won't be able to afford once the subsidy runs out.

"It's easy to sit there and say, 'These people ought to get a job, get it together and move out,'" said Sammartino, who supervises more than a dozen recovery case workers for more than 900 client households in 12 parishes. "We would want everyone to consider that each case is complex, each case different."

The peak population for Renaissance was estimated in excess of 1,600 -- with more than 3,000 people residing there at some point since its opening. Sammartino said the current number of residents likely is at least double the 188 trailers. Most of the remaining households have children or senior citizens, or both.

Broussard said FEMA does not keep statistics on whether evacuees return to their original home parishes or neighborhoods. He said a majority have settled around Baton Rouge. New Orleanians who want to return mostly can do so, he said, provided they do not insist on returning to their previous neighborhood.

High local rents

The chief complaint about housing for those still looking is the rising rents of post-storm East Baton Rouge Parish, which was growing before the 2005 hurricanes and has absorbed a net gain of at least 25,000 people since.

Chopin, who works three part-time jobs inside the park, said her search for a home in East Baton Rouge Parish had been mostly discouraging. "If you can afford it, you don't want to live there," she said.

The disaster housing assistance will pay as much as 125 percent of the average fair market value for a residence in a given parish. Carol Spruell, spokeswoman for Catholic Charities, estimated that in East Baton Rouge, this is $800 to $900 for a two-bedroom apartment, more for a house. Both figures are considerably higher in Orleans Parish, she said.

Spruell said her organization estimates it would take at least a $17-an-hour, full-time job to make that rent in Baton Rouge with two dependents.

Transportation troubles

Residents say the lack of transportation also hampers their housing search.

Chopin said she and her husband have one car, but he uses it to get to his job on the support staff at a local school. That makes it difficult, she said, to balance her typical 11- to 12-hour work days with trips to find housing. "A case worker might take you or might not," she said.

A bus route, paid for by FEMA, runs about every hour from the park to the local Wal-Mart, Baker Library and central public bus terminal in Baton Rouge. But the last bus typically returns to the park at 9 to 10 p.m., residents said, limiting late-shift employment options.

For Renaissance residents who can find a place, additional barriers come in the form of utility and lease deposits, transporting trailer belongings to an apartment and buying appliances that none of them has now.

FEMA pays some deposits, and Catholic Charities fills some additional needs not covered by FEMA. But help with furniture and appliances falls entirely on private organizations.

One of the most frustrating gaps in service, Sammartino said, is transportation for moving. FEMA has a relocation assistance program, but the Renaissance residents who hail from the New Orleans area but settle around Baton Rouge do not qualify because they are not returning close enough to home.

"I've asked FEMA just to send trucks up here," he said. "I've gotten no response."

Mood of 'despair'

In some respects, FEMA officials said, Renaissance Village represents success stories. Empty trailer spots, marked by water pipes and other infrastructure rising from the gravel, dwarf the number of temporary residences still set up.

In the rear of the park are a playground and classroom buildings housing early childhood learning centers. The project was financed by actress-comic Rosie O'Donnell's foundation. Arcenia Crayton, a resident of the park from its opening until October 2007, staffs another building that serves as a community center in the morning before shifting to an after-school program.

But Chopin said the overriding mood still is "depression, ... despair." Sammartino said he daily fights "fear of the unknown" and "paralysis even among people who know what they need to do." And "FEMA" remains a four-letter word in most conversations.

Sammartino and others, meanwhile, said they worry FEMA will begin urging residents into hotels come June.

"Their job is not necessarily to get people into the right situation," said Crayton, who before the storm lived in Marrero with her husband and three sons. "Their job," she said, "is to get people out of that trailer."

Road Home appeals proving productive

More than half of all Road Home applicants who file formal appeals succeed in persuading the state homeowner aid program to give them more money, according to new statistics.

The Road Home had reviewed a total of 8,770 written appeals from homeowners by March 27, reaching final decisions on 4,834 of them, the program's latest weekly report said.

After reviewing the applicants' contentions, the program agreed its calculations or eligibility determinations were wrong 58 percent of the time: 43 percent deserved more money, 8 percent should have been ruled eligible for awards that they were denied and 7 percent got too much money, the report said.

The Road Home ruled its award was correct 41 percent of the time.

The statistics about appeals were released as the Road Home began an effort to collect overpayments from some applicants, the number of which could range from 1,000 to 5,000, officials have said. The Road Home appeals staff already decided, as of March 27, that 362 of the applicants who appealed formally should have their grants reduced by an average of $14,986. Overpayments to the appealing applicants totaled $5.4 million.

But far more often, the Road Home determined the homeowner did in fact deserve a higher grant. The program reports that as of March 27, it was on the hook to pay a total of $51.4 million in additional disbursements to 2,078 applicants, an average of $23,726.

As of that date, 645 of the homeowners already had received additional disbursements totaling $20.3 million.

The state has set aside $218.4 million in its Road Home budget to handle additional payments to all appealing homeowners.

About 2,000 applicants were still waiting for decisions on their appeals for larger grants, and another 2,000 dispute the Road Home's ruling that they are ineligible, the report said. It also said that 486 applicants who didn't like the Road Home's ruling on their appeal have lodged an appeal with the state Office of Community Development, which oversees the program.

The appeal numbers do not include thousands of applicant complaints that went into the Road Home's dispute resolution process. Paul Rainwater, executive director of the Louisiana Recovery Authority, recently used his newly expanded authority over Road Home to eliminate dispute resolution from the program, mandating instead that all substantive issues go through formal appeals.

A pair of Road Home applicants filed a class-action lawsuit in federal court last week contending that the Office of Community Development violates their constitutional due-process rights when it declares in closing papers that its grant determinations are "final" and "non-appealable."

Some appealing applicants are represented by pro bono attorneys who say the Road Home doesn't comply with its own deadlines for deciding appeals cases. Also, applicants say they can't contact the Road Home appeals team once they file their formal complaint. Rainwater has said that will change, too, so appealing homeowners can answer the appeals team's queries or provide more supporting documentation when needed.

Rainwater's spokeswoman, Christina Stephens, said he has rejected three drafts of changes to the appeals process.

"He's looking for anything to increase responsiveness and cut the wait time," Stephens said.

Road Home subcontractors make hundreds of millions

While ICF International's expanding Road Home contract has led to high-profile inquiries and lots of hand-wringing, there are also three dozen subcontractors that have made hundreds of millions of dollars off the program.


Sixty-two percent of the $592.7 million the state paid ICF as of March 10 was spread among 38 other companies or nonprofits, 22 of them identified as having a base of operations in Louisiana. They do most of the legwork in the state's $10.3 billion Road Home effort and, according to ICF's latest projections, could end up collecting $569 million. That equates to 6 percent of the money Congress sent to Louisiana for homeowner relief.

"We haven't been looking at payments to and performance of the subcontractors," said David Greer, director of performance auditing under Legislative Auditor Steve Theriot. "Now, we'll be looking globally at the Road Home contract to see how services are delivered, and that will get us, partially at least, to the subs issue."

The state Office of Community Development provides monthly updates of subcontractor pay to the Joint Legislative Budget Committee, but the documents were released to The Times-Picayune for the first time last week.

They show that, as of March 10, three of the 33 for-profit subcontractors had made 56 percent of the money, while two of five nonprofits or educational institutions had yet to see a dime for services they provided homeowners.

Shaw top moneymaker

The recipient of the most money is the Shaw Group, whose founder and chairman Jim Bernhard once led the state Democratic Party and who was a leading contributor to former Gov. Kathleen Blanco, architect of the Road Home program. Shaw has collected $84.9 million of a contract projected in February to total $127.6 million, by far the largest of the bunch.

The Baton Rouge company is in charge of equipment and facilities, supporting the Road Home headquarters and 12 housing assistance centers, including one in Texas. The company also runs a call center in Baton Rouge that Shaw bought out when another subcontractor, West Telecommunications, threatened to move it out of state.

Sean Clancy, a spokesman for Shaw, declined to comment about Bernhard's ties to Blanco. He said Shaw is in the third and final phase of its work, has been paid on time and is in the process of closing facilities and scaling back its Road Home work force of 200.

"Shaw is proud of the work it did in the program and believes it helped a considerable number of Louisiana residents through its efforts," Clancy said.

The second-highest paid firm is First American, a financial services company based in Powtay, Calif., that has a Louisiana subsidiary title company. ICF hired it to do $109.3 million worth of title searches, Road Home closings and appraisals, according to a February projection of the contract's value. It has been paid $62.3 million so far but has seen its pay slow during the past year as it has been replaced as the appraisal coordination firm and its allocation of title work has declined.

First American has been largely supplanted by HGI Catastrophe Services, a tiny LaPlace company ICF originally hired for a minor contract but turned into the third-highest earner with no-bid change orders. HGI, a subsidiary of Hammerman & Gainer, was brought on to do about $8 million worth of home damage inspections but has already been paid seven times that much because lucrative appraisal and title work was tacked on to its existing contract last spring. The assignment of additional work came even though the firm has just three years of experience in title work and struggled to pay appraisers in a timely manner.

Hammerman & Gainer's owner, Larry Oney, also contributed to Blanco. A spokesman for Oney declined to comment this week, referring all questions to ICF spokeswoman Gentry Brann.

Subcontractors get bulk

Brann has said decisions about how to distribute closing work between First American, a giant of the industry, and HGI, a relatively unknown firm, change based on the flow of files. A third title company, Bayou Title of Gretna, also was added to the mix, getting a contract estimated in February to be worth $1 million but collecting nearly three times that by March 10.

First American, which early on promoted its ability to handle hundreds of files a day but later had to lay off employees because of a downturn in workload, declined to comment, citing a section of its contract forbidding it to do so.

ICF chose which subcontractors to hire, generally using open bidding processes, although at times -- as with HGI -- the state ordered ICF to sign emergency, no-bid contracts to increase program capacity. Some subcontractors, including Shaw and First American, were part of ICF's original bid package to the state when it sought the full Road Home contract.

Brann said that when ICF's Road Home contract ends in June 2009, the company expects to pay subcontractors about two-thirds of the money ICF gets from the state. The other third of Road Home revenue should stay with ICF, although Brann has said the company expects only 3 to 5 percent will be profit. The rest must pay for ICF's 850 employees, computer systems, office equipment, utilities and insurance, Brann said.

The company's most recent projection that the subcontracts will be worth $569 million indicates that ICF would max out its own $912 million contract.

ICF has said the $912 million is a cap and that it may not have to bill for that much, and Brann said Friday that some subcontractors are not expected to bill for as much as the original projections. State auditors and legislators say they are scouring the contract for ways to reduce costs.

K.C. King, a Road Home applicant who sits on the Louisiana Recovery Authority's housing task force and has 16 years' experience designing computer systems for Boeing, has often criticized ICF for not following best practices, particularly with disclosure to stakeholders. He said the subcontractor pay reports are a step in the right direction, but still do not tell the whole story.

"This ability to outsource tasks reflects well on ICF's overall ability to define and organize its work," King said. "What I don't see, of course, are the outsourcing rationales that show that it saves money."

Greer says that is precisely why he and his auditing team will be looking at subcontractor pay, to see if billing is justifiable and if it properly reflects the performance of each company.

Greer said he could not comment about the performance of any subcontractor until he has had more time to review their billing and work.

Some remain unpaid

On the flip side of the large subcontracts are nonprofits and educational institutions. The Loyola University Law Clinic was hired to provide mediation services for applicants having problems with their construction contractors. ACORN Housing Services got a $600,000 contract to help low-income homeowners work through the grant process. Neither has been paid, according to the March 10 report.

"Many of these relationships are relatively new," Brann said, adding that ICF is current in paying all invoices.

Loyola Law Clinic director Majeeda Snead declined to comment about the lack of payment.

ACORN's contract began six months ago and the nonprofit has worked with applicants and mortgage lenders to stop 86 foreclosures, helping modify the homeowners' loans so they can fix their homes and keep them, said Bruce Dorpalen, ACORN Housing Services' director of housing counseling in Philadelphia. He said ACORN has one outstanding invoice, but he attributes that to confusion about some of the contract terms.

"I'm OK with it because we had some contract issues to sort out," Dorpalen said. "I'm not ready to say it isn't working."

A third nonprofit, Easter Seals of Louisiana, was hired to help disabled hurricane victims get their grants. It collected a fraction of its $1.1 million contract before being dismissed in February.

Richard Phelps, a blind homeowner from Lafayette, said Easter Seals was helping him by reading documents to him and processing his application, but when the contract ended he was back to square one, dealing with call center employees who did not understand his limitations and often asked him to do things he had already done.

"Had they not broken that chain, I'm sure I would have gotten my issues resolved about the estimate on the roof repair. Easter Seals is very well known and highly regarded when it comes to disability issues, and I don't understand why they'd cut off the contract," he said.

Dan Underwood, chief executive officer of Easter Seals, said ICF gave no explanation for terminating the contract. But he said the work was marred from the beginning by the changing nature of the program and a lack of clarity from ICF about what services it wanted.

"They kept making everything a moving target," Underwood said. "These were very difficult people to contract with and difficult people to get money from for work performed and on a timely basis. It was common that they would short us on the bill, and the decisions would be arbitrary because one month a service was approved and next month it was denied."

Brann said Easter Seals has been paid in full for its work. ICF personnel and another subcontractor, EAD & Associates of Brooklyn, N.Y., are handling special needs services, she said.

Nearly 40,000 Katrina families still in mobile homes

ORLANDO, Florida (Reuters) - Almost three years after Hurricane Katrina, nearly 40,000 families still are living in vulnerable mobile homes and trailers across the U.S. Gulf Coast with another hurricane season just two months away, the top U.S. disaster official said on Wednesday.

The number is down from about 100,000 families, or some 300,000 people, in April 2006. At one point following the devastating 2005 hurricane season, the U.S. Federal Emergency Management Agency was housing 143,000 families in mobile homes and trailers.

FEMA Administrator David Paulison said the agency, which was heavily criticized for its hapless response when Katrina swamped New Orleans, is moving about 800 families a week into hotels, motels or apartments.

The families are either living at group sites or in trailers in the driveways of their homes as they rebuild.

The six-month Atlantic hurricane season begins on June 1. Forecasters are expecting above-average storm activity.

"As far as rebuilding, I did expect it to take this long," Paulison told a small group of reporters at the National Hurricane Conference in Orlando. "But as far as housing people, I did not foresee that they would be there almost three years later."

Katrina killed 1,500 people and caused $80 billion in damage when it swept ashore in late August 2005 near New Orleans, shattering the levees protecting the low-lying city and swamping entire neighborhoods.

The three worst storms of 2005 -- Katrina, Rita and Wilma -- together caused about $110 billion in damages. The record-shattering season produced 28 tropical storms.

The presence of so many people in the flimsy temporary housing complicates preparations for the hurricane season because those families must be evacuated in the event of a threatening storm.

Paulison said the agency was on target to move everyone from the group sites by June 1 but was having "a lot of trouble" getting some of those displaced by Katrina to move again, even from cramped mobile homes that are often reduced to rubble in big storms.

"People simply don't want to move," he said. "It hasn't been as easy a task to get people out as we thought it might be."

Filling holes dug to build levees could cost $2.5 billion

It could cost as much as $2.5 billion to refill all the clay pits that might be dug during construction of levee improvements in southeast Louisiana, according to recent estimates by the Army Corps of Engineers.

Not only would backfilling add a huge expense, some of which would likely be billed to the state and local levee districts, it also could double the number of trucks using regional roadways and local streets to travel between the pits and construction sites, corps representatives said.

If it takes 50,000 dump truck trips, for example, to haul levee-building clay away from one fully excavated 40-acre pit, it would take twice that many round trips total to haul sand or some other material back in to refill the cavity.

Then there's the issue of where to get the material to refill the pits, once they are excavated for the levee-building clay needed to construct a more robust hurricane flood defense system by 2011.

"Some of the (backfill) could come from the river ... but it could result in more pits being dug in the region," said Col. Al Lee, corps' commander in New Orleans.

"Policies are typically set up for normal circumstances," he said. "The situation here is anything but normal. The enormity of this situation is such that we're hoping they'll revisit the policy to see if there is any flexibility for us to respond to this issue," he said, referring to national corps officials.

The effects of backfilling versus leaving behind 20-foot craters are being spelled out in an issue paper Lee's staff is drafting and will soon send to corps headquarters for review.

The document also will discuss the extra cost of backfilling, which could range from a $500 million to $2.5 billion.

"There are a lot of potential problems with trying to backfill ... including the fact that the president's proposed fiscal year '09 budget includes no money to backfill," said corps section chief Brett Herr.

Maj. Gen. Don Riley, the corps' deputy chief of engineers and deputy commanding general, said Wednesday that the issue is getting serious attention.

"We are clearly considering it, but we're looking at more than just the economics of it," Riley said. "We're looking at the ecology of it, the environmental impacts, where all this would come from," referring to the backfill.

The issue of backfilling the so-called "borrow" pits surfaced last year as residents and local governments learned that in keeping with past practice, the corps did not plan to refill the pits.

But the sheer volume of material needed for post-Katrina construction -- estimated to be enough clay to fill more than 20 Superdomes -- means digging an unprecedented number of borrow pits in some of the communities hit hardest by the 2005 hurricane.

If left open, critics say the pits could hold standing water, potentially breed mosquitoes and become liabilities for landowners.

Local governments in at least three jurisdictions, including Jefferson and St. Bernard parishes, have either already passed or are considering ordinances that would require the pits to be refilled once all useable clay is removed.

Although the corps is searching for ways to import as much clay as possible from outside the region, officials said the demand is so great that several regional pits also will be needed.

Ongoing environmental assessments indicate the noise, vibration and dust that will be generated by digging and hauling clay will have a negative impact on immediate neighbors and, to a lesser degree, those living along the routes trucks will travel between pits and construction sites.

Backfilling could easily double truck traffic to and from those pits that can be filled only with hauled materials.

For pits near the Mississippi River, Herr said it could be possible to use hydraulically pumped sand at a cost estimated at $5 to $10 a cubic yard.

But for those farther out, from 10 to 20 miles away from the river, he said trucks would have to haul in fill at a cost of $15 to $25 a cubic yard.

Sheila Grissett can be reached at sgrissett@timespicayune.com or (504) 717-7700.