30-mile debris pile becomes symbol of FEMA delays

By MICHAEL GRACZYK Associated Press Writer
Updated: 12/01/2008

SMITH POINT, Texas—A 30-mile scar of debris along the Texas coast stands as a festering testament to what state and local officials say is FEMA’s sluggish response to the 2008 hurricane season.

Two and a half months after Hurricane Ike blasted the shoreline, alligators and snakes crawl over vast piles of shattered building materials, lawn furniture, trees, boats, tanks of butane and other hazardous substances, thousands of animal carcasses, perhaps even the corpses of people killed by the storm.

State and local officials complain that the removal of the filth has gone almost nowhere because FEMA red tape has held up both the cleanup work and the release of the millions of dollars that Chambers County says it needs to pay for the project.

Elsewhere along the coast, similar complaints are heard: The Federal Emergency Management Agency has been slow to reimburse local governments for what they have already spent, putting the rural counties on the brink of financial collapse.

“I don’t know all the internal workings of FEMA. But if they’ve had a lot of experience in hurricanes and disaster, it looks like they could come up with some kind of process that would work,” said Chambers County Judge Jimmy Sylvia, the county’s chief administrator.

Gov. Rick Perry was so incensed at delays in sending cleanup crews to the rotting, city-size pile of waste that he angrily told reporters two weeks ago that he is going to have the state clean it up and then stick FEMA with the bill.

FEMA, whose very name became a bitter joke after the agency’s botched response to Hurricane Katrina in 2005, said it is working as fast as it can considering the complex regulations and the need to guard against fraud and waste in the use of taxpayer dollars.

Moreover, “you can’t work too many people because it’s just too dangerous,” said Clay Kennelly, hired by FEMA to oversee the cleanup of a section of the debris pile. “And you can’t just put Bubba or Skeeter out here on a dozer.”

The 2008 hurricane season ended this week after walloping the Texas and Louisiana Gulf coasts with three major storms: Dolly, near the Mexican border in July; Gustav, which slammed the Texas-Louisiana line on Labor Day; and Ike, the 600-mile-wide monster that barreled ashore at Galveston on Sept. 12.

Only a hundred yards or so of the 30 miles of debris in Chambers County has been cleaned up, because the project has been slowed by negotiations over who is responsible for what.

Along the rest of the Gulf Coast, thousands of homeless families are still living in tents, trailers and motel rooms, and hundreds of businesses are lying in near-ruin.

The federal government is responsible for public lands or hazardous waste, while private landowners must handle their own cleanup but can apply for assistance. Much of the debris has been left to rot while crews determine whose land the junk is on and what’s in it.

Galveston County Judge Jim Yarbrough tells the story of receiving word on Sept. 12, as Ike closed in on Galveston, that FEMA was sending him $1.8 million of his $3 million request for storm cleanup—from Hurricane Rita, three years ago.

“Good Lord! The red tape and rules you have to go through to get anything done,” Yarbrough said. “On Hurricane Ike, when we’re putting out tens of millions, we can’t afford a three-year reimbursement program. It would bankrupt most entities in this area if it takes that long.”

In Louisiana, hit by two storms this year, Gov. Bobby Jindal complimented the agency on improvements made since Katrina but criticized FEMA’s focus on paperwork and an inability to make decisions quickly.

“It has gotten better, but the problem you’ve got with FEMA is that they’re looking for reasons to say ‘no,'” Jindal said. “While they’ve made progress since ’05, there’s such an emphasis on filling out paperwork. They need to have a focus on results.”

In an e-mail statement, FEMA said the recovery process “continues seamlessly,” and it noted the many rules and overlapping jurisdictions involved.

“The steps in the process of recovery include many at the individual, local, state and federal level,” FEMA said. “In large measure they are understandable safeguards.”

FEMA pointed out that more than $1 billion in federal and state aid already has gone to Texas in disaster assistance since Ike, with about one-third of that in grants for temporary housing rent and another third in low-interest loans for renters, homeowners and businesses. The state has estimated the total pricetag at $11 billion.

Harris County Judge Ed Emmett, whose area includes Houston, complained that FEMA’s bureaucracy is unwieldy. He recalled a FEMA official showing up at his office after Ike and declaring he was “going to be joined at the hip with you in this whole process.”

“Then the next week, somebody else would show up and tell me the same thing,” Emmett said. And then somebody else. “That was really frustrating to me.”

Near the Mexican border, thousands of families remain in homes damaged by Dolly, the storm that blew ashore on South Padre Island on July 23. FEMA was helpful at first, but bureaucracy and the distraction of the other hurricanes have slowed the recovery, local officials said.

A farmworker rights organization and 14 poor South Texas residents sued FEMA last month, accusing the agency of refusing to help thousands of poor families repair their homes.

“I understand they have Hurricane Ike, but we had a Category 2 come through the Valley, too,” Hidalgo County Judge J.D. Salinas said.

newstimes.com

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Political Links to Hurricane Katrina’s Memorial Medical Center – by PEU Report-State of the Division

Weeks before Hurricane Katrina struck the Gulf Coast, two private equity firms inked a deal for LifeCare Hospitals. GTCR Golder Rauner sold their majority stake to The Carlyle Group. The sale closed before the Category 3 storm sideswiped New Orleans. Thirty four patients perished in Memorial Medical Center in the sweltering toxic aftermath. Twenty four were LifeCare Hospital’s responsibility and ten were Tenet Healthcare’s. LifeCare rented a floor in Memorial.

Tenet is a large for-profit hospital company, while LifeCare’s niche is long term acute care. Influential politicians are associated with the firm’s past and future.

GTCR Golder Rauner

Between his service in the Clinton White House and his Congressional position, Rahm Emanuel worked for an investment banker. GTCR Golder Rauner’s chairman advised Mr. Emanuel on his career. GTCR was Rahm’s account.

Tenet Healthcare

Ex-Nebraska Governor and Senator Bob Kerrey sat on the Board of Directors since 2001. Tenet is a serial ethics abuser. Their SEC filings show numerous settlements with states and the federal government on billing and financial practices. The company never admits any wrongdoing.

Ex-Florida Governor Jeb Bush joined the Board in April 2007. This is roughly a year after the White House omitted any mention of Tenet, LifeCare or Memorial Hospital from their Hurricane Katrina Lessons Learned report. Several Tenet financial settlements occurred in the State of Florida under Governor Bush’s term in office.

LifeCare Hospitals

Company executives were found guilty of illegal campaign contributions in three election cycles, 1998, 2000, and 2002. Fines totalled $200,000. The company paid $50,000 of this amount. Donald Boucher and David LeBlanc were fined individually for their improper acts. Most donations were to Republican candidates, but a number of Democrats received funds.

The Carlyle Group

This private equity underwriter (PEU) is legendary for its political hires and access to America’s hallowed halls of government. Carlyle shows as a top 10 donor for Rep. Rahm Emanuel and Senator Evan Bayh. A small sampling of their Blue credentials shows numerous Clinton White House connections. President Clinton privatized USIS, which Carlyle flipped for large profits.

With all the above gunpowder, Memorial Medical Center and their 34 patient deaths are but a distant memory. LifeCare deaths warranted not one mention in Congressional hearings on Carlyle’s purchase of ManorCare. If Carlyle could fail one of twenty one LTAC’s in a time of crisis, what might they do with 500 facilities, most nursing homes? The Carlyle Group knows how to keep their good name.

Rest assured, their interest in adding health care companies is strong. They even have an Axelrod exploring new opportunities. How deep does the rabbit hole go?

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Louisiana ranks worst in state health rankings

MINNEAPOLIS – Louisiana has reclaimed its status as the least healthiest state in the country, according to the 2008 America’s Health Rankings released today by United Health Foundation.

Last year, Louisiana ranked 49th.

This year, Vermont ranks as the healthiest state, followed by Hawaii and New Hampshire.

Since 1990, Louisiana has ranked 50th every year except in 2003, 2005 and 2007.

Mississippi swapped with Louisiana, rising to 49, Texas was ranked 46th; Florida, 45th; Arkansas, 43rd; Georgia, 41st; and Alabama 40th.

For Louisiana, the report cited a high prevalence of obesity, a high percentage of children in poverty and a high rate of uninsured residents.

Louisiana did make improvements from 2007, including a public health funding increase from $69 to $95 per person, an increase in access to primary care physicians per 100,000 people — 113.5 to 119.4 — but the prevalence of obesity has increase from 12.3 percent to 30.7 percent since 1990.•

neworleanscitybusiness.com

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HUD expected to break ground on new development to replace ‘Big 4’ – New Orleans

by Katy Reckdahl, The Times-Picayune
Tuesday December 02, 2008

Before the end of the year, the U.S. Department of Housing and Urban Development will break ground in its grand plan to build mixed-income communities to replace the city’s “Big Four” public-housing complexes: B.W. Cooper, C.J. Peete, Lafitte and St. Bernard, HUD officials say.

Despite financing problems caused by the bleak economy, “everything is on track” to create 1,904 new apartments within the next two years, said Anoop Prakash, deputy chief to HUD Secretary Steve Preston.

But even if the agency does break ground in December, it will be six months late. That puts the projects on a break-neck pace, in order to put the new apartments in use by the end of 2010 — the deadline for developers to cash in on Gulf Opportunity Zone low-income housing tax-credits, slated to finance more than half of HUD’s $636 million endeavor.

The GO-Zone deadline was pushed back once before, from 2008 to 2010. But Prakash said that he saw no need for any additional extension because the projects would be completed by the end of 2010.

Where HUD plans to build low-rent mixed-income apartments, as well as other housing statistics.

Each developer’s deal will vary, making it hard to predict how much tax credit proceeds developers could lose if they fail to meet the construction deadline — or whether that could result in delaying or scaling back the housing developments.

When asked if HUD has a contingency plan in case a developer falters, HUD spokeswoman Donna White declined to give particulars. “We don’t have a crystal ball, ” she said. Instead, she said, HUD and the Housing Authority of New Orleans had “a commitment to roll up our sleeves, focus and execute (their Big Four) plan by 2010.”

Though HUD officials now beam confidence about the tax credit deals, former HUD Secretary Alphonso Jackson previously raised the specter that construction delays could torpedo the financing. In a letter to Mayor Ray Nagin in December 2007, Jackson used the impending tax credit deadlines to pressure the mayor to speed up the approval of demolition permits for the Big Four.

“Without these crucial funds, the redevelopment effort would be stalled, if not stopped, thus denying low-income New Orleanians the opportunity to start a new life in a new home, ” Jackson wrote.

Because of the delayed start, HUD must fold roughly three years of work into two years, a tight time frame to transform what are now fenced-in fields of dirt into 1,904 apartments.

Some see the plans as ambitious. Others, like the Rev. Marshall Truehill Jr., find them unbelievable.

“I’m extremely skeptical that anything will be replaced, ” said Truehill, an opponent of the demolitions who grew up in B.W. Cooper (then called the Calliope), served on the City Planning Commission, and oversaw social work in the city’s 10 public-housing projects for all of his adult life.

Truehill cited the track record of HANO demolitions that were followed by years of delays. Look, he said, at the Desire, Florida, Fisher and St. Thomas projects, none of which were rebuilt on time, or as promised.

These will follow that pattern, he predicted.

“There is a deadline of 2010 to have those things completed, ” he said. “But we’re already on the cusp of 2009, and we haven’t seen a single pile driven.”

Prakash said he is familiar with HANO’s history, but assured it would not be repeated.

“In December, that skepticism will come to an end, ” he said.

Handling hurdles

According to last year’s Louisiana Housing Finance Agency project schedules, HUD planned to have 10 percent of Big Four construction finished by Oct. 15 of this year.

Then, this fall, the economy tanked. Federal low-income housing tax-credit deals became nearly impossible to close because the credits themselves declined in value, prompting HUD to seek backup investors and shop around for gap financing to gather the $636 million necessary to complete the first phase of the Big Four’s construction.

At their highest possible market value, the tax credits — along with housing authority grants and $27 million for each development in federal block grants — were supposed to provide half the capital to leverage the remaining financing.

Since the credits were created in 1986, affordable-housing developers have vied to receive the credits to raise equity for their projects. They then sell the credits to investors, who buy them for less than face value — at, say, 94 cents on the dollar or $940,000 for $1 million in tax credits — but can subtract the full amount from their taxes over a period of 10 years.

But because many banks and corporations now face huge losses, they have no tax liabilities to write off, and thus have no need for tax credits. So — if they sell at all — the credits will sell for less, for, say, 80 cents on the dollar instead of 94 cents, creating financing gaps for the Big 4 and for all affordable-housing construction.

These issues were foreseeable in June when Preston took office, but he has, from the start, made rebuilding the Big 4 one of his top priorities, Prakash said. To do that, he needed to find backup investors and find about $50 million in financing to close the gap created by the decline in the value of tax credits.

Preston has conferred with key bankers about investing in the projects, Prakash said, and recently requested — and received — a $15 million earmark from Congress. The congressional resolution also allowed HANO to shift money from other parts of its budget to the Big Four.

Last month, HUD reached out to the Federal Emergency Management Agency, which recently obligated $17.5 million to cover demolition costs for the four sites, FEMA spokesman Andrew Thomas said.

HUD, as a federal agency, is ineligible for most FEMA financing. But HUD argued, successfully, that the 286 brick, World War II-era buildings in the Big 4 posed an “immediate threat to public safety, ” Thomas said, causing FEMA to pay for their demolition as an “emergency protective measure.”

Then, last Wednesday, HANO appeared to have closed the financing gap, with an additional appropriation of $20 million to the St. Bernard project.

Now HUD had all it needed to close these deals, said HANO’s federally controlled, one-woman board, Diane Johnson.

“That money is to bridge the gap on the overall construction, ” she said, adding that she is “very excited” about the redevelopments.

“We see this as a glorious time, ” she said.

Pushing ahead

Still, no construction can begin until each developer closes on GO-Zone tax-credit deals.

In mid-September, Milton Bailey, president of the Louisiana Housing Finance Agency, which awards Louisiana’s share of the federal tax credits, said that he was not hopeful about investors’ appetite for credits and believed the market for them wouldn’t rebound until 2009. Last week, Bailey’s brief e-mailed response to questions seemed to indicate that the fate of the deals depended entirely on HUD and its local agency, HANO.

“HANO has given us assurances that all of the Big Four will come to fruition despite the challenges faced in the credit market, ” Bailey wrote.

Not a problem, Prakash said.

“HUD anticipated a lot of the curveballs in the credit market, ” he said.

While he declined to comment on announcements made by developers during public meetings that tax-credit investors had pulled out of a few of the projects, he acknowledged that “there had been a change in investment mix” in recent months. All the projects now are moving toward final negotiations between developers and tax-credit investors, making any further information too sensitive to release.

All the deals were solid and would move forward, regardless of shifts in investors, he said.

“Only the names on the paper may change, ” Prakash said.

nola.com

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Mammy’s Cupboard – Natchez, Mississippi – 50 Strange Buildings of the World

40-mammyscupboard-thumb

#40 mammy’s cupboard, natchez, mississippi

we saw that

click here to view the list

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