Despite Katrina causing the worst affordable housing crisis since the Civil War, the federal Housing and Urban Development Department (HUD) is spending $762 million in taxpayer funds to tear down over 4600 public housing apartments and replace them with 744 similarly subsidized units—an 82 percent reduction. HUD took over the local housing authority years ago and all decisions are made in Washington D.C. HUD plans to build an additional 1000 market rate and tax credit units, which will still result in a net loss of 2700 apartments to New Orleans. The new apartments will cost an average of over $400,000 each.
Affordable housing is at a critical point along the Gulf Coast. Over 50,000 families still living in tiny FEMA trailers are being systematically forced out. Over 90,000 homeowners in Louisiana are still waiting to receive federal recovery funds from the so-called “Road Home” reconstruction fund. In New Orleans, hundreds of the estimated 12,000 homeless have taken up residence in small tents across the street from City Hall and under the I-10.