New Orleans' recovery director says it seems ``grossly inappropriate'' for the state to consider using millions of dollars in federal aid meant to rebuild cities to bail out the homeowner assistance program.
Ed Blakely made the comment in an interview with The Associated Press.
He says officials from the Louisiana Recovery Authority promised the city a share of the estimated 775 million dollars saved if the government waived a local match needed for federal rebuilding money. The city's share was estimated at about 324 (M) million dollars.
Congress passed a waiver Thursday as part of about $3.6 billion in hurricane recovery aid included in a larger war spending bill.
But Louisiana faces a possible shortfall of nearly three billion dollars in its ``Road Home'' program. LRA spokeswoman Natalie Wyeth says that money may be needed so the program can continue providing rebuilding grants or buy outs to eligible, hurricane-affected homeowners.
She says LRA's first obligation is to homeowners who have applied to the Road home.
She did -NOT- comment comment on whether any of the money was promised to new Orleans.
Wyeth says the issue is likely to come up at an LRA board meeting June 7th.
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