Katrina victims left waiting for grants

The first anniversary of Katrina at the end of the month could come and go before they see the first dime. And it could be more than two years before the last of the money is handed out.

Designed by the state and funded by the federal government, the $7.5 billion Road Home will be one of the largest redevelopment programs in US history. Road Home will provide grants of up to $150,000 per homeowner to buy them out or help them repair or rebuild.

It is for Louisiana residents with extensive home damage, and the idea is to make homeowners whole again, by giving them as close as possible to what they had before the storm.

But the bulk of the federal funding was not approved until almost 10 months after Katrina, caught up in disputes over the costs of the Iraq war and other spending. And the program had to run a gantlet of additional state and federal approvals.

Watts and others who can scrape together insurance dollars, loans, or savings are rebuilding on their own for now. But others can only wait.

``I think there's a lot more waiting than have started in Cameron Parish," said Tina Horne, administrator of the southwestern Louisiana parish hard-hit by Rita, which flattened homes, fishing and hunting camps, and fields of sugar cane.

State officials hope the housing aid will start being issued before the end of the month.

``We're going to move as rapidly as possible," said Michael Byrne, chief program executive for ICF International Inc., a Virginia consulting firm picked to run Louisiana's program.

Mississippi is setting up its own housing-aid program with federal dollars, but only for flooded-out homeowners who lived outside the flood plain. Grants are capped at $150,000. More than 16,500 people have applied, and the first applications have been approved, said Scott Hamilton of the Mississippi Development Authority.

In Louisiana, homeowners will need inspections and damage assessments to determine whether they are eligible. Title searches will also be done to confirm the applicant owns the property. Any title disputes will add to the delays.

The grants will not arrive by check, but will be deposited in escrow-like accounts for people to draw down as needed to ensure they spend the money properly.

Those who were in a flood plain and had no flood insurance will have a 30 percent penalty taken off what they can receive. Homeowners who do not want to rebuild in Louisiana will receive buyouts of as much as 60 percent of their homes' prestorm value, up to the $150,000 cap. Any insurance proceeds will be deducted from the grant.