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La. Homeowner Aid Program Cash-Strapped

Friday, May 18, 2007 10:20:46 PM
By MELINDA DESLATTE

BATON ROUGE, La. (AP) - Louisiana may have to draw from other hurricane aid programs to cover a projected $3 billion shortfall in the program that provides rebuilding grants to homeowners, the head of the Louisiana Recovery Authority said Friday.

State officials earmarked $7.5 billion in federal hurricane relief to pay for grants under the Road Home program for homeowners with severe damage from hurricanes Katrina and Rita.

But more people applied than were expected and they are receiving bigger awards than projected, some as much as $150,000. Officials say that without the additional money, nearly 17,700 applicants may not receive grants.


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