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Released: July 07, 2011
HUD to pay $62 million to Louisiana homeowners
Source: Michael Fletcher, Washington Post (Free Registration)
The U.S. Department of Housing and Urban Development said Wednesday that it will pay as much as $62 million to 1,300 Louisiana homeowners to settle a lawsuit alleging that a program that awarded federal grants to rebuild after hurricanes Katrina and Rita discriminated against African Americans. The lawsuit was filed by two civil rights groups and five homeowners, who maintained that the $9.8 billion Road Home program — called the largest housing recovery program in the nation’s history — relied on a formula that discriminated against thousands of African American homeowners. The formula for the federally funded Louisiana program awarded rebuilding grants up to $150,000 based on a home’s pre-storm value, rather than the cost of rebuilding from the storm damage. The suit argued that those rules hurt black homeowners, whose properties typically had lower values than whites.Read Full Article: HUD to pay $62 million to Louisiana homeowners
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