La. Gov. Presents Housing Plan for Under-, Uninsured Homeowners

February 21, 2006

Louisiana Gov. Kathleen Blanco recently outlined a $7.5 billion draft proposal for housing assistance for underinsured and uninsured homeowners.

According to the Associated Press, among the key points are:

--The plan hinges on $4.2 billion in federal aid that Congress still needs to approve.
--The proposal includes help for rebuilding, repairing, relocating within Louisiana or buyouts.
--Assistance is capped at $150,000 per home and is calculated based on the pre-storm value of the home.
--Homeowners without flood insurance who were in the floodplain face a 30 percent penalty.
--FEMA repair assistance and insurance proceeds would be deducted to calculate the aid.
--Buyouts would be made at 60 percent of the pre-storm value of the home, not to exceed $150,000.
--Homeowners must have $5,200 in uninsured home damage to be eligible.
--Assistance can include direct grants and varying types of loans.