Housing
New Orleans

300,000 homes uninhabitable

Black & Poor Neighborhoods
Suffered Disproportionate Damages
Lower Elevation

Pre-Katrina, 5000 families lived in
public housing

“We finally cleaned up public housing in New
Orleans. We couldn’t do it, but God did.”
Richard Baker, U.S. Congressman (R-La) Days after Katrina

St. Bernard
Parish:
September 2005
Rent Only to
Blood Relatives
Ordinance

Jefferson Parish Council
Passes Resolution Opposing
Tax Credits for Housing.
Member
Chris Roberts:
\"With the number of jobs out there,
nobody should be
on public housing
unless you're ignorant or lazy.\" October 2005

We do not want
“thugs” and “trash”
from New Orleans
public housing
projects.
Everyone with
dreadlocks or che-wee
hairstyles will be
stopped by law
enforcement.”
Sheriff Jack Strain
St. Tammany Parish

Noose Around New Orleans for African-
American and Moderate Income Renters

New Orleans is
Majority Renters

Rents Soar – 39% - 70%

June 2006 -
1040 families allowed to return to public housing
HUD
Announces
Demolition of
4500
Apartments

Need for Affordable
Housing?

Over 65,000 Families on Gulf
240 sq ft. Trailers – Oct 07

12,000+ homeless

Over 100,000 Homeowners
Still Not Receive Road Home $

Demolition of 4500 affordable
apartments by government will give
clear message to everyone about who is
welcome back

HANO has had a one person
board that makes all decisions.
The one person HANO board is
a HUD employee.
That person selects all
personnel and approves all
contracts.

HUD Demo Plan
Lafitte was 896 will be 276
St. Bernard was 1436 will be 160
BW Cooper was 1550 will be 154
CJ Peete was 723 will be 154
Loss of 82% of low-income apts.

Cost of Demo & Rebuild?

Cost to Demo & Redevelop
$762 million
Result?
Loss of 82%
Of low-income public housing apartments

$762m = Loss of 82%?

Cost of Redevelopment
$400,000+
per apartment
82% loss in low-inc
housing?

No bulldozing
Until 1 for 1 replacement

No Bulldozing
Until Everyone
Can Come
Home

Where did the
money go?

Tens of billions of $ to be made

2% Rule of Gulf Coast
• 98% of the money
distributed in a
disaster ends up
enriching corporations
• 2% gets to the
people.

Example #1 – Blue Tarps on Roof

Example #1 : Blue Tarps – 2%
• SHAW GROUP 1st got $175 a square to
put on the tarps.
• Shaw subcontracted the work out to A1
CONSTRUCTION for $75 a square.
• A1 subcontracted the work out to a
WESCON corporation for $30 a square.
• Who in turn subcontracted it out again to
guys who did the work for $2 a square.

Shaw Group got contract for
$175 a square (100 sq ft)
-subcontracts for $75/square
earns $100 each square-
average roof is 1500 square feet
– 15 squares
X 15
Per roof!

A1 Construction gets $75/square
subcontracts out for $30/square
X 15
Per roof!

Roofers get $2 per square
(of original $175)

Example #2: Ashbritt Inc of Florida
• Received no-bid contract
for $579 million to pick up
trash in Mississippi
• Miami Herald reports
company does not own a
single dump truck!
• MH also reported the
company gave $40,000 in
previous 12 months to
GOP lobbying firm

Example # 3: Circle B Enterprises -
Georgia
• Awarded $287 million no-bid contract to build
FEMA trailers
• Company filed for bankruptcy year before
• Company does not have a website
• Company had no license to manufacture
trailers in GA.

HUD HANO Corruption &
Disaster Capitalism Issues

HUD Secretary A. Jackson
worked for
and is owed over $250,000
from
COLUMBIA RESIDENTIAL

$250,000

COLUMBIA RESIDENTIAL
awarded $127 million redevelopment
contract for
St. Bernard Development
by HANO,
approved by HUD
and other HANO contracts

Golfing buddy of Sec. Jackson
awarded no-bid post-Katrina
contract from HANO, approved by
HUD, for $175 per hour – totaling
over $485,000 in 18 months.

Numerous campaign contributors to New Orleans
Mayor Ray Nagin received no-bid emergency
contracts with HANO post-Katrina
August 2007 – HANO awarded $494,483 contract
to the exact person suggested
by USDC Judge handling HANO/HUD case as
possible special master in case &
head of board approving tax credits

Law firms, consultants, real estate,
insurance, architects…

FBI and HUD Inspector General are
investigating HUD and HANO right now for
post-Katrina development issues

$762m = Loss of 82%?

Cost of Redevelopment
$400,000+
per apartment
82% loss in low-inc
housing?

Solution?
One for one replacement low-
income public housing
Real participation of residents
in decision-making