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On the one hand, thousands of residents desperately needed rebuilding aid. On the other, Road Home, like many disaster aid programs, had guardrails to make sure people didn’t end up better off than before the storm. The grant and insurance proceeds covered her entire loss, as it was supposed to, and by April 2007 she had completely rebuilt. “The program worked great for me,” she said. Both neighborhoods were swamped when the floodwalls along New Orleans’ drainage canals buckled after Katrina.
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Each homeowner received a grant based on their home value. Perry said the White homeowner got $150,000; the Black homeowner, $90,000. Ironically, PolicyLink had teamed with the LRA two years earlier to present the state’s initial recovery plan. Leger said he took Ehrlich’s complaint about pre-storm value to HUD officials and asked to use higher repair estimates instead. Melanie Ehrlich, who lived in Baltimore while her Gentilly home was rebuilt, said she quickly saw the problem with the formula.
Instead, Ford took out a loan and exhausted her savings. That increased their grant to about $83,500. Even then, their total compensation including insurance and FEMA grants was $135,000 — just 70% of Road Home’s original estimate of what it would take to make their home livable. Two officials who were in charge of the recovery, however, told the news outlets that the findings were troubling. Poverty tracks closely with race in New Orleans, so the shortfalls in the city hurt Black people.
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The grant formula left homeowners with lower property values with fewer resources to rebuild.
The Advocate and WWL-TV. Drawing from last year's figures, sales prices of single-family homes in New Orleans tended to settle around $142,259. Re-calculated for easy comparison, they averaged $62 per square foot of living area. Available data shows that New Orleans homes or properties were sold - conveyed from sellers to buyers during the full 12 months of the past year. This figure embraces both single-family residences and condos in New Orleans put up for sale by the owners.
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Like many homeowners, she expected significant government assistance, but it never came. Road Home officials assessed her damage at about $297,000 but based her grant on her home’s value, $150,000. They gave her just $3,468 after subtracting about $146,500 in insurance payments. Six state officials involved with the recovery effort said they didn’t ignore these complaints.
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