Hurricanes Gustav and Ike
Sept. 1, 2008 and Sept. 12, 2008
In September 2008, Hurricanes Gustav and Ike hit Louisiana just 12 days apart, severely affecting 53 parishes throughout the state. The collective damage from both storms, including almost 13,000 homes flooded and 300,000 homes damaged, resulted in an estimated $20 billion in physical damage, more than $1 billion in public infrastructure damage and approximately $7 billion in housing damage, including $1.7 billion in uninsured losses.
The U.S. Department of Housing and Urban Development appropriated $1.09 billion in Community Development Block Grant-Disaster Recovery funds to Louisiana for recovery from Hurricanes Gustav and Ike. LOCD-DR allocated $562.5 million to the 53 affected parishes for their direct administration, allowing the parishes to oversee their own housing, infrastructure and economic development programs, according to federal guidelines.
Reporting Highlights
50,765
affordable housing units created
462
infrastructure projects completed
12,302
Louisiana businesses served
Over $565 million
was allocated to parish recovery projects, through which
1,073 public facilities and 1,800 residential structures
were rehabilitated or reconstructed
$24 million
was allocated to statewide affordable housing projects
Administered Programs
Parish Programs
Parish Recovery Programs ($562.5M)
LOCD-DR allocated more than half of the appropriated funds to the 53 impacted parishes to implement their own housing, infrastructure and economic development programs. LOCD-DR parish liaisons provided technical assistance to help in designing the programs, drawing down funds and finding contractors.
Parish Affordable Rental Program ($24M)
The five most affected parishes—Terrebonne, Cameron, Iberville, East Baton Rouge and Lafourche—received a share of $24 million to invest in affordable housing.
Housing Programs
All housing programs for Hurricanes Gustav and Ike were managed by the Louisiana Housing Corporation.
Affordable Rental Program ($50M)
The Affordable Rental Program restored and created affordable rental housing for low-to moderate-income individuals. Municipalities, parishes, nonprofit organizations and developers in impacted parishes participated in the program, which created 664 units, including 553 affordable units.
Multi-Family Rental: Low-Income Housing Tax Credit “Piggyback” ($25M)
This program awarded low-interest loans to 11 developers who built rental housing for market-rate and low-to-moderate income tenants and created permanent supportive housing (PSH) units for disabled individuals. The program created 758 rental units, including 713 affordable units and 153 PSH units.
Soft Second Mortgage Program ($5.1M)
The Soft Second Mortgage Program seeks to provide homeownership assistance to first time homebuyers located in eligible disaster-impacted areas by providing soft second loans and closing cost assistance.
Homelessness Prevention: Short-Term Assistance and Rental Services ($4.4M)
The Short-Term Assistance and Rental Services programs provided rental assistance to residents affected by Hurricanes Gustav and Ike.
Louisiana Housing Council Disaster Recovery
This program provided funding to Louisiana Public Housing Authorities (PHAs) to cover insurance deductibles due to property damage from Hurricanes Gustav and Ike.
Infrastructure Programs
Economic Development and Growth ($79.3M)
Administered in partnership with the Louisiana Office of Economic Development, this program focused on major economic development initiatives primarily aimed at established industries and workforces appropriate for the unique geographic, climatic, population and growth conditions of the state. The program provided jobs, infrastructure and workforce development in hurricane-damaged regions.
Municipal Infrastructure ($35.7M)
This program funded unmet disaster recovery needs in 60 local municipalities located within the 53 parishes impacted by Hurricanes Gustav and Ike. Project categories included flood drainage improvements, water/sewer improvements, street improvements, fire and emergency equipment and other public facilities and improvements. Through this program, an additional $5 million was made available for unmet disaster recovery needs specifically in coastal communities.
Coastal Communities Recovery ($30.4M)
This $30 million program was administered in partnership with the Office of Coastal Protection and Restoration to fund projects that improved critical infrastructure, including water control structures, levees, economic centers and other critical storm protection and wetland restoration via eight projects.
Interoperable Communications ($17.1M)
This initiative supported seamless communication among all first responders and the improvement of information sharing and systems in the event of a disaster. Administered by the Governor’s Office of Homeland Security and Emergency Preparedness, the new equipment funded through this effort aided first responders during Hurricane Isaac. The number of users, available sites and available communication channels doubled during the storm, and the number of busy calls decreased by 40.5%.
Economic Development Programs
Economic Revitalization (Business Grant and Loan) ($66.1M)
This program provided grants or loans for economic development projects to businesses, nonprofit organizations, parishes, local governments and political subdivisions leading to job creation, individual services and the ability to meet urgent recovery needs.
Public Service - Cecil J. Picard/LA4 Early Childhood Education ($19.8M)
This program provided funding to the Louisiana Department of Education for the Cecil J. Picard LA4 program to provide high-quality early childhood education to children from low- to moderate-income families eligible to attend kindergarten the following year. Funding for this program combined $15.7 million from Hurricanes Katrina and Rita dollars and $20 million from Hurricanes Gustav and Ike dollars. The funding was available to the state Department of Education for the 2012-13 school year.
Innovation Grant Program - Workforce
This program provided grants of up to $1 million to community-based nonprofit organizations and technical colleges to deliver workforce training to individuals. The training that individuals received occurred over varying lengths of time and typically resulted in a tangible skills and/or certifications in a specific industry.
Innovation Grant Program - Unmet Needs
This program provided technical assistance funding in geographic areas identified as underserved by the Innovation Loan and Technical Assistance Program. Funding went toward Fast Forward Restart, the South LA Economic Council and the Louisiana Small Business Development Center to provide technical assistance to small and start-up businesses.
Innovation Loan and Technical Assistance
This program funded sub-recipients who provided technical assistance, small loans or a combination of both to small or start-up businesses. Technical assistance included financial management, one-on-one counseling, business plan development and the development of a website. Loans ranged in size from $50,000 to $500,000 and were used for equipment, inventory and either real estate acquisition or construction. The program combined appropriated CDBG-DR funding from both Hurricanes Katrina and Rita, as well as Hurricanes Gustav and Ike, and began in 2010.
Fisheries
Commercial Fisherman Grant and Loan ($15.3M)
This initiative provided grants to commercial fishermen who suffered losses from Hurricanes Gustav and Ike.
Wholesale Dealer Broker Grant and Loan ($8.4M)
This program provided grants to wholesale dealers and brokers who suffered losses from Hurricanes Gustav and Ike.
Sustainable Coastal Communities ($7.8M)
This program funded 17 infrastructure projects, such as boat landings, docks and storage facilities, in 14 different parishes. The Louisiana Dept. of Wildlife and Fisheries selected the projects, but the parishes were responsible for implementation and construction.
Vessel Monitoring System ($1.5M)
LDWF used these funds to initiate a pilot planning study for a vessel monitoring system program. The collected data enabled LDWF to better manage the public oyster and shrimp resources.
Fisheries Technical Assistance ($124,788)
Administered by Louisiana State University, this initiative created an online bidding marketplace, called LA MarketMaker, where fishermen could sell their catch.
Industry Modernization ($94,164)
LOCD-DR contracted with LSU to assist with the design and development of the Fisheries Gear Modernization program. After LSU conducted extensive research and developed the preliminary design, LOCD-DR terminated the program and reimbursed LSU for costs incurred during the design phase.
Agriculture
Farm Recovery Grant and Loan ($39.4M)
This program helped farmers and ranchers affected by the 2008 disasters with their 2009 production costs by providing a 20% grant and 80% low-interest loan.
LA Critical Farm Infrastructure ($10M)
This program partially funded the relocation and construction of refrigerated storage warehouses under the jurisdiction of the Port of Orleans. These shipping facilities benefitted statewide sectors of the agricultural economy and served as a significant component of the shipping industry, particularly the import and export of produce to and from the United States.
Agribusiness Recovery Loan Assistance ($9.3M)
This program provided low-interest loans for agribusiness critical services, such as aerial applicators, cotton gins and elevators.
Planning Programs
Comprehensive Resiliency ($12.9M)
This program funded non-construction projects, such as planning for land use, creation of forward-thinking zoning ordinances and staff augmentation of local building code enforcement offices.