Area could receive $163M in recovery grants

The Tri-parishes could be receiving nearly $163 million in federal Community Development Block Grants for recovery from hurricanes Gustav and Ike, according to figures supplied by the Department of Housing and Urban Development.

Administered by HUD, CDBG money is a main source of funding for communities and covers a wide range of development projects.

HUD allocated $438 million in November to Louisiana in CDBG funds for Gustav and Ike recovery. State officials expect that amount to rise to $1.5 billion.

Suffering the most structural damage in Louisiana, Terrebonne Parish would receive by far the largest amount of the allocated CDBG funds for Gustav and Ike recovery. HUD estimates Terrebonne will receive $120 million.

Lafourche would receive an estimated $33 million, behind Terrebonne, Cameron and Iberville parishes’ allocations.

St. Mary Parish would receive $19 million, ninth most in the state.

The amount of federal assistance administered by the Federal Emergency Management Agency for recovery from hurricanes Katrina and Rita in Terrebonne (around $68 million, including payments for housing expenses) is relatively small compared to what the parish will receive in CDBG funds, said Parish Manager Pat Gordon.

“That’s because New Orleans was not so much involved with Gustav and Ike,” Gordon said.

Since most short-term federal disaster relief is administered by FEMA and the U.S. Small Business Administration, CDBG funds are intended principally for long-term disaster recovery, according to HUD’s Web site.

But communities can use CDBG funds for short-term assistance on projects not paid for by FEMA and the SBA.

The CDBG funds will be used to repair damaged infrastructure, buy out flooded homes, assist damaged agricultural areas and fisheries, and possibly for hurricane protection systems, according to a state Web site.

Louisiana allocates the CDBG funds to affected parishes based on the level of damage caused by the hurricanes. Parishes decide which projects need funding, then submit a plan to the state for approval.

Officials from Terrebonne Parish met with the Louisiana Recovery Authority board in October about the parish’s plans to use the CDBG funds.

Statewide, agriculture experienced $630 million in revenue loss because of Gustav and Ike, but perhaps more importantly for the Tri-parishes, the seafood industry in Louisiana suffered a $250 million loss in revenue.

Following hurricanes Gustav and Ike in September 2008, Congress allocated a total of $6.5 billion in CDBG funding for recovery from the two hurricanes.