Posts tagged cronyism

Mockingbird, by Bob Hines, United States Fish and Wildlife Service

“The process on how damage percentages is determined is the estimate of the cost of repair compared to the replacement cost of the home, if you had to build it from scratch,” [Robert Evans, Allied American‘s chief operating officer] said. – The Mississippi Press, 8/14/2006

With all the recent fuss over “rebuilding” vs “compensation” regarding Road Home payments and CDBG regulations, I was surprised to hear yesterday that Phase II of Mississippi’s Homeowner Assistance Program (HAP) is basing its grant calculations on cost to rebuild.

I wrote about the “worst of both worlds” scenario Louisiana’s Road Home Program was facing the other day at Think New Orleans: in a nutshell, the LRA was allegedly told when designing the RHP that they had to cap awards at the pre-Katrina appraised value of the home even if the estimated cost to repair/rebuild was greater, because basing awards on rebuilding costs would make it, aptly enough, a “rebuilding program” and thereby trigger torrents of onerous requirements and regulations. And just lately, HUD “discovered” that the method of Road Home payments constituted a “rebuilding program” as well – maximum burden for the minimum award.

Mississippi’s HAP is using a phased approach: Phase I was for homeowners with homeowners insurance (although not necessarily flood insurance) living outside the pre-Katrina FEMA designated flood zone. Like the Road Home, it also had an ultimate $150,000 cap, and beneath that cap, the upper limit was based on the value of the home – in this case, the insured value of the home, plus 35%. Meaning that, should the damage estimate, determined by the method described above, exceed the insured value of the home (or the appraised value, for that matter), a higher award could be calculated. What exactly is being “compensated” here, that’s not compensable in Louisiana?

  • HAP Phase I FAQs
  • HUD-approved MDA Partial Action Plan (including HAP Phase I). Interestingly, this action plan doesn’t mention the additional 35% specified in the offical FAQs. I haven’t been able to find when and how that became part of the program.
  • Phase II is directed at homeowners with a household income beneath 120% AMI with Hurricane Katrina storm surge damage. The HUD-approved action plan makes no mention of insured or appraised value. This award is capped at $100,000, but up to that amount, the award is based exclusively on the official damage assessment – insured homeowners receiving 100% of the estimate, uninsured receiving 70%. And yet, “In consultation with HUD, and due to the nature and design of the Homeowner Assistance Grant Program, the State has determined through its environmental review that project level actions are categorically excluded and not subject to related laws for Phase II.” No NEPA.

  • HAP Phase II FAQs
  • HUD-approved Phase II Action Plan
  • I don’t begrudge Mississippians any additional money they may be awarded via their damage assessments; I also wouldn’t be surprised if the assessments were erratic or out of sync with today’s real costs of rebuilding, as the rest of the Mississippi Press article cited above suggests. But I’d really like to understand why Louisiana can’t have similar latitude for the Road Home. Granted, there are a number of other differences between the programs, some of which may influence which requirements might apply, but on their faces, both states’ programs have very explicit rebuilding components, sometimes favoring rebuilding over relocating, and as far as I can tell, the only difference between “rebuilding” (i.e. triggers-multitudes-of-onerous-regulations) and “compensation” (i.e. you-might-get-some-money-in-this-lifetime) is smoke and mirrors.

    Was the LRA Housing Committee really too thick to rephrase their “compensation” package to permit greater consideration of rebuilding costs? Is there some secret catch to Mississippi’s plan that would make its rebuilding-cost “compensatory” provisions unfavorable to Louisianans somehow? Or does the fact that the nebulous nature of CDBGs requires negotiating with HUD, currently headed by Alphonso “heck of a crony” Jackson, mean that our marginally-Blue State will be held to a different standard no matter what we do? Or is it some combintion of all three?

    Or am I completely missing the point?

    HUD Mud

    March 21st, 2007

    I missed this last year, but surprise, surprise, Bush appointed HUD Secretary Alphonso Jackson was found to have “urged staff members to favor friends of President Bush when awarding Department of Housing and Urban Development contracts,” (Washington Post, 8/22/06). This after an anecdote he told at a Real Estate Executive Council forum in Dallas last April, about revoking a contract awarded for “a heck of a proposal” (is “heck of a” a required phrase in Bush Administration circles?) after the chief of the firm said he didn’t like the president (Dallas Business Journal, 5/5/2006).

    Alphonso Jackson, Alberto Gonzoles, Michael Brown…

    I have to doubt that HUD’s intervention in the Road Home Program at such a late stage was entirely on behalf of the beleaguered citizens of Louisiana.

    I wonder whether self-lamed duck Blanco will find a stronger voice regarding “her” Road Home Program (with ICF, HUD, or anyone else) now that the re-election pressure is off, or whether she’ll wilt. Waterfowl can get pretty aggressive when they want to. (Seriously. There was this goose once, on my uncle’s farm…)

    photo by evehorizon