Public Invited to Comment on Plans to Reallocate CDBG Funds

Action Plan Amendment Published for Review

BATON ROUGE, La. (July 23, 2007) – The Louisiana Recovery Authority (LRA) and Office of Community Development (OCD) published an action plan amendment for public comment last Friday, July 20, 2007, which includes plans to transfer $627.5 million in Community Development Block Grant (CDBG) funds to the Road Home program for homeowner assistance grants to address the projected shortfall in the program budget. Governor Kathleen Babineaux Blanco and the Louisiana Legislature have approved legislation to use state funds to cover the costs of state building repairs and the construction of a public teaching and research hospital in New Orleans to which these CDBG funds had previously been allocated so that they can now be invested in the Road Home program.

Combined with $373.5 million in direct state appropriations approved by the Louisiana Legislature in June, these proposed CDBG fund reallocations will increase available funding for the Road Home program by $1 billion consistent with congressional requests.

The public comment period for this action plan will conclude at 5:00 p.m. CT on Monday, July 30, 2007.

This action plan amendment details the proposal that was approved by the LRA Board of Directors in June to reallocate funds for rebuilding projects to the Road Home, including $300 million of construction costs for the Medical Center of Louisiana at New Orleans, and $277.5 million for the costs of repairs to state buildings.

As noted, Governor Blanco and the Louisiana Legislature passed legislation to cover the costs of these critical recovery projects with state funds.

The action plan amendment also proposes reducing a number of CDBG programs' uncommitted funds to reallocate an additional $50 million to the Road Home program.

Citizens, community leaders and elected officials can access the plan and submit comments online by visiting http://www.doa.louisiana.gov/cdbg/dr/plans/Amend15-Proposed-Reallocation-of-funds_07-07-19.pdf and opening Proposed Action Plan Amendment No. 15 (First Action Plan), or request a copy by phone by calling (225) 342-7412.