Wednesday, February 28, 2007

CLEAN UP ROAD HOME, ABOLISH RENT CONTROLS, ESTABLISH TEMPORARY RENTAL ASSISTANCE

ICF, the Road Home contractor, is ineffective. The State must investigate to what extent it is in breach of its contract and respond immediately. The Governor has stated that it would cause further delay to terminate the contract; however, it makes no sense to continue what is not working. The contract is too large for one company, and it needs to be segmented. The legislative investigation into the delay of this program must be aggressive. Can the program work? Is the contract in default? As a State Representative, I will promote legislation which segments this massive contract, reviews the program, as seeks modification of the terms. The Congress of the United States, indeed the people of our country, wants us to have this relief money. The continued failure to implement the distribution of these funds will seriously weaken the effectiveness of the Louisiana Congressional to get more funding in the future. This must be corrected immediately.

Although there is a need to create incentive to re-build affordable housing, using rent control as a condition to providing grants to pre-Katrina owners is a bad idea. I am opposed to rent controls on privately owned property. It reduces the value of the property and is a poor investment of public funds. A temporary voucher system with a maximum amount would be more effective. This would allow the market rate to determine the rent, and it would allow assistance and choice to renters. Such an approach would maintain property value by promoting a market rate income stream while giving renters short term assistance without imposing the financial burden of rent control on the Katrina damaged property owner.

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