La. governor wants faster housing aid
16.11.2006 01:35 Insurance News
Only 28 homeowners have received checks so far from Louisiana's $7.5 billion hurricane housing aid program, but the private contractor running it assured Gov. Kathleen Blanco on Wednesday that it is dramatically picking up the pace.
ICF International Inc. officials said they will tell 10,000 homeowners by the end of the month what grants they are eligible to receive from the Road Home program.
More than 77,000 people have applied since the program kicked off in August, but fewer than 5,000 awards have been calculated, only about 2,500 letters have been sent out notifying people of the grants they can receive and only 28 people have received their grants, according to Road Home officials.
The governor's Louisiana Recovery Authority worked to develop the Road Home program for victims of hurricanes Katrina and Rita, and her prospects for re-election next year could hinge greatly on its success.
Blanco summoned ICF CEO Sudhakar Kesavan to the Governor's Mansion to find out the reason for delays.
"They have guaranteed me we will have 10,000 award letters by the end of this month," the governor said after a closed door meeting with Kesavan and other ICF officials.
Kesavan blamed delays on problems getting financial information from insurance companies and data on aid handed out by federal agencies. Though he said the problems weren't ICF's fault and he didn't explain exactly how they would speed up the information gathering, Kesavan committed to improving the grant program.
"Let me assure you that the most important project for ICF is the Road Home program. We have been working hard over the last few months standing up the program. All the company's resources are devoted to it," Kesavan said.
ICF has a $756 million contract with the state to operate and manage the homeowner repair and buyout program and a separate rental aid program, which hasn't begun doling out assistance.
Road Home applicants are eligible for up to $150,000 in homeowner assistance — funded through federal aid from Congress — depending on the extent of the damage and other aid received. An estimated 123,000 homeowners are eligible.
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