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Road Home replacing FEMA as favorite Katrina villain

10:28 AM CDT on Monday, May 7, 2007

WWLTV.com

The Road Home program has been the object of homeowners’ ire for some time with what is perceived to be the snail’s pace of payouts of funds to applicants.

Video: Watch the Story

However, since it was revealed last week that the program is probably a few billion shy of the funding it needs to meet the obligations of homeowners, it has been open season.

“Their incompetence is breathtaking,” said State Treasurer John Kennedy on the Eyewitness Morning News last week. “Remember Otis of Mayberry, the town drunk, I think Otis is secretly running the Road Home program.”

Possibly to counter feelings like those expressed by Kennedy, the Road Home has been airing a series of ads to bolster its image. However, the ads seem to have had a reverse effect, upsetting some who wonder why money is being spent on ads when there apparently isn’t enough to pay homeowners.

A spokesperson for the Road Home told Eyewitness News that the money for the ads is provided in its contract, but the perception could be a problem.

“It may be time to cut those ads,” said Walter Leger of LRA.

Leger says the shortfall in the Road Home funds could be about $2 billion.

Governor Blanco, who made the shortfall public last week following an exchange of terse e-mails with Congressman Bobby Jindal, said she expects that the federal government will make up the difference.

“I think by all rights we should expect the federal government to do that,” she said. “Our disaster has been underestimated from the beginning.”

By Donald Powell, who is President Bush’s coordinator for the Gulf Coast Recovery, said he hasn’t received any request for help.

The State of Louisiana was given $7.5 billion to fund the program, but about $1.3 billion of that was hazard mitigation money the state said it expected to receive from FEMA. So far, it hasn’t gotten that money. They hoped to get another $750 million by having the White House waive the 10 percent match. With another $700 million given to the Road Home administrator, there is less than $5 billion to pay homeowners.

Blanco said she is against spending state money on the Road Home program, but some lawmakers say if the federal government doesn’t help out, the state will have to cover the obligations.

“If we have to, we have to do it,” said Representative Cedric Richmond. “At some point, we have to do the right thing. We put our name on this. We don’t have a choice.”