Homeowner Decisions, Land Banking, and Land Use Change in New Orleans after Hurricane Katrina (Working Paper)

Author(s): Green, Timothy F., and Robert B. Olshansky
Publication Date: November 2009

43 pages; Inventory ID WP09TG1; English

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Abstract

In the aftermath of Hurricane Katrina, Louisiana used US Dept. of Housing and Urban Development CDBG funds to create the Road Home Program (RHP) to provide financial relief to Louisiana homeowners. By late 2009 the program had dispensed over 8 billion dollars to homeowners, each of whom could decide between using the money for repairs and selling their home to the state. This paper traces the story of the first few years of the Road Home Program in Orleans Parish (New Orleans), and looks at the connection between the choices of RHP grant recipients and the long-term redevelopment of New Orleans. Our analysis finds that the significant relief that the program provided was marred by design and implementation problems. In particular, the formula for calculating grants increased the burden on homeowners with low appraised value, and the availability of mitigation funding only after rebuilding grants precluded widespread residential mitigation.

The paper also traces the transformation of the New Orleans Redevelopment Authority (NORA) from a marginalized and underfunded body into a central player in the long-term recovery of New Orleans with responsibility for the redevelopment of thousands of properties acquired through the RHP. An in depth analysis of RHP activity in the Pontilly neighborhood of New Orleans from the storm to the RHP grants and on to the redevelopment of NORA properties shows promise in NORA's capacity for redevelopment, but challenges remain. Our analysis of RHP participant decisions at the Census Block level reveals that certain areas of the city, particularly those with deeper flooding, saw a greater percentage of their residents choose to move away. However, the aggregate nature of the data leaves many questions about the connection between RHP participant choices and redevelopment challenges unanswered.