Louisiana may have to repay disaster relief grants - WALB.com, South Georgia News, Weather, Sports

Louisiana may have to repay disaster relief grants

BATON ROUGE, LA (WAFB) -

A new audit released Monday by the Louisiana Legislative Auditor says the state could be on the hook for hundreds of millions in disaster relief payback. The money was supposed to help property owners recover from Hurricanes Rita and Katrina.

"The grants come with a covenant," says Legislative Auditor Daryl Purpura. "Whenever you receive the funds you had to re-occupy, rebuild, get insurance and prove to the state that you had done these things."

The Legislative Auditor's review of the Office of Community Development, which oversees the Road Home program, showed potentially huge paybacks for money obtained illegally.

"An individual has received the funds and he's not met the covenant, then they owe the state," says Purpura. "But ultimately the state is the grantee so the federal government is going to be looking for the state to recover the funds."

Below is the response from OCD Director Patrick Forbes.

"The state takes seriously its commitment to restore the residential property damaged by hurricanes Katrina and Rita and seeing that residents who so desire are able to return home. OCD-DRU also takes seriously its fiduciary responsibility both to the state and federal taxpayers. We know that a non-compliant applicant represents not only a family that is not back in their home, but also likely a blighted property in a neighborhood.  While grant recipient compliance is our primary goal, grant recapture and recovery is also ongoing, and will continue as more applicants are identified as non-compliant and unable to be assisted through other compliance means. 

"To continue to improve compliance, we have been in discussions with HUD on modifying Road Home programs to assist some of these homeowners who have not yet completed their construction, and we are working aggressively with HUD to ensure that homeowners get in compliance. We expect these programs to be reviewed by HUD within the next six weeks.  We expect these program modifications to help a number of currently non-compliant Road Home applicants become compliant, so proceeding with recovery on these files would be premature at this point. 

Copyright 2013 WAFB. All rights reserved.

  • More WALB News10 HeadlinesMore News HeadlinesMore>>

  • Homicide suspect surrenders, victim's co-workers react

    Homicide suspect surrenders, victim's co-workers react

    Sunday, May 20 2018 10:06 AM EDT2018-05-20 14:06:18 GMT

    Police found 26-year-old Michael Taylor shot at June Bug's Grocery store Friday night.  He died shortly after. The victim's co-workers said he was always willing to lend a hand. They believe that may have cost him his life.  

    More >>

    Police found 26-year-old Michael Taylor shot at June Bug's Grocery store Friday night.  He died shortly after. The victim's co-workers said he was always willing to lend a hand. They believe that may have cost him his life.  

    More >>
  • Albany girl group shoots official music video to bring community together

    Albany girl group shoots official music video to bring community together

    Saturday, May 19 2018 11:41 PM EDT2018-05-20 03:41:03 GMT
    'The Purpose Girlz' completed their first official music video on Saturday. (Source: WALB)'The Purpose Girlz' completed their first official music video on Saturday. (Source: WALB)
    'The Purpose Girlz' completed their first official music video on Saturday. (Source: WALB)'The Purpose Girlz' completed their first official music video on Saturday. (Source: WALB)

    Three Albany sisters started a music group last year.       And today, they took their music from the studio to the streets, for their first official music video. 'The Purpose Girlz' invited the entire community to be part of their single called, 'Together'.     

    More >>

    Three Albany sisters started a music group last year.       And today, they took their music from the studio to the streets, for their first official music video. 'The Purpose Girlz' invited the entire community to be part of their single called, 'Together'.     

    More >>
  • The New Albany Motor Speedway back open for business

    The New Albany Motor Speedway back open for business

    Saturday, May 19 2018 11:25 PM EDT2018-05-20 03:25:05 GMT
    Albany race car fans can head back out to the track for the speedway's new season. (Source: WALB)Albany race car fans can head back out to the track for the speedway's new season. (Source: WALB)
    Albany race car fans can head back out to the track for the speedway's new season. (Source: WALB)Albany race car fans can head back out to the track for the speedway's new season. (Source: WALB)

    The city of Albany can now experience racing at it's finest after years of one track being closed down. The Albany Motor Speedway had to close down for two years but as of earlier this month, they're finally back open. 

    More >>

    The city of Albany can now experience racing at it's finest after years of one track being closed down. The Albany Motor Speedway had to close down for two years but as of earlier this month, they're finally back open. 

    More >>
Powered by Frankly