CIVIL RIGHTS ORGANIZATIONS SETTLE HURRICANE KATRINA HOUSING DISCRIMINATION CASE AGAINST HUD AND LOUISIANA – STATE AMENDS PROBLEMATIC HURRICANE RELIEF PROGRAM
Today, African-American homeowners and two civil rights organizations announced a settlement in a post-Hurricane Katrina housing discrimination lawsuit brought against the U.S. Department of Housing and Urban Development (HUD) and the State of Louisiana regarding the “Road Home” program.
The suit alleged that the formula used to allocate grants to homeowners through the Road Home program – the single largest housing recovery program in U.S. history – had a discriminatory impact on thousands of African-American homeowners. Road Home program data show that African-Americans were more likely than whites to have their Road Home grants based upon the much lower pre-storm market value of their homes, rather than the estimated cost to repair damage.
For example, one African-American plaintiff whose rebuilding grant was based upon pre-storm value received a $1,400 grant from the State to rebuild her home; but she would have received a grant of $150,000 had her rebuilding grant been based on the estimated cost of damage to the home. These types of shortfalls played a key role in slowing down the recovery effort. Under the terms of the settlement, HUD and the State of Louisiana will direct additional funds to individuals in heavily-affected parishes whose grants were based upon pre-storm value.
7-6-11 Read the full press release and terms of the settlement here.
7-6-11 Read the nola.com article “Road Home Settlement Will Benefit Nearly 1,500 Homeowners” here.
7-6-11 Read the Washington Post article “HUD to Pay $62 Million to LA Homeowners to Settle Road Home Lawsuit” here.
7-6-11 Read the WWL article “HUD Announces New Road Home Funds Available” here.
7-6-11 Read the AP article “HUD Settles Suit Over Road Home Program” here.
7-6-11 Read the City Business article “Road Home Settlement Leaves Some Without Closure” here.
7-6-11 Read the article on BlackAmericaWeb.com “Road Home Suit Results in $60 Million Settlement” here.
7-8-11 Read the Louisiana Record article “HUD Settles with Hundreds of LA Homeowners in Road Home Dispute” here.
7-7-11 Read the BET article “Hud Reaches $62 Million Settlement with Louisiana Homeowners” here.
7-9-11 Read the nola.com editorial “Road Home Finally Gets Shorter for Some Recipients” here.
7-6-11 Read Congressman Cedric Richmond’s statement here.
7-11-11 Read the New York Times editorial “Fairer Treatment for Hurricane Katrina’s Victims” here.
7-22-11 Read the Times Picayune editorial “Leave No Road Home Homeowner Behind” here.
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