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Dear Senator Vitter:

Thank you for your letter of March 6, 2008, detailing your concerns about the progress of the Lafitte redevelopment project. Senator, since long before the City Council’s historic unanimous decision to approve the demolition of the B.W. Cooper, C.J. Peete, St Bernard and Lafitte housing projects, my staff and I have been working daily to ensure the successful redevelopment of these four significant sites. We welcome your interest and support on this critical recovery issue. Of course you are always welcome to reach out to me personally whenever an issue of this magnitude causes you concern. Today, I am glad of the opportunity to bring you up to date in writing on the discussions with HUD, and to correct several misunderstandings which are suggested by your letter,

The goal of the City’s leadership all along has been to ensure that U.S. Department of Housing and Urban Development (HUD)’s plans will restore adequate numbers of housing units in the City of New Orleans to support the return of our citizens and to meet the urgent need for public and affordable mixed income housing. Specifically, the City wishes to see demonstrated before the issuance of demolition permits that HUD’s redevelopment financing, planning and contingencies are sufficiently well developed to give confidence as to the projects’ timely completion. It will be no contribution to the recovery of New Orleans for cleared sites or half completed developments to stretch vacant for many blocks throughout the heart of our city.

To this end, in the City Council Motion NO. M-07-628 of December 20, 2007, and in letters to Secretary Alphonso Jackson December 21, 2007, and January 31, 2008, on which you were copied, the New Orleans City Council and I laid out conditions for the issuance of demolition permits for the B.W. Cooper, C.J. Peete, St Bernard and Lafitte housing projects.

In my letter of December 21, 2007, I requested that HUD document these plans and contingencies no later than February 28, 2008, a sixty day window. Specifically, I requested to see (1) financing plans for each development; (2) executed Master Development Agreements Understanding with resident councils for each development; (4) redevelopment and
repopulation timelines; (5) evidence that phased redevelopment is planned at Lafitte and St Bernard; (6) evidence that 4,534 actual affordable units or home-ownership vouchers will be made available in a timely fashion; (7) verification that the Tenant Protection Program was fully funded for displaced residents; and (8) the expansion of the Housing Authority of New Orleans (HANO)’s Board from one member to three members, to include myself or my designee and a public housing resident. In good faith, assured that HUD and HANO would provide this information, I issued the demolition permits for the B.W. Cooper and the C.J. Peete developments immediately.

HUD requested a meeting January 31, 2008, and did provide some of the information requested, and City Council President Arnie Fielkow, Council Budget Chair Cynthia Hedge Morrell and I were assured that progress towards the satisfaction of our requests was underway. However, not one of the conditions above was fully met at that time. Continuing to engage in good faith, however, I issued a demolition permit for the St. Bernard site, with the exception of 75 units designated for phased rehabilitation. As noted in our January 31, 2008, correspondence, and as discussed at the meeting with HUD and HANO representatives, I did not feel comfortable releasing the last of the four permits
until documentation addressing the concerns above had been provided.

By February 28, 2008, 60 days after my requests, the progress of our discussions remained disappointing: only five of the eight requests had been satisfied. We had not received executed Master Development Agreements for any development; we awaited an executed resident council Memorandum of Understanding for the C.J. Peete; and we had
been informed that-although on the morning of the City Council vote, December 21, 2007, Secretary Jackson and Don Babers, Chairman of the HANO Board of Directors, verbally pledged to me to expand HANO’s Board-legal complications had been found that would make that impossible.

Just today I have received executed Master Development Agreements for the Lafitte and B.W. Cooper projects; but the C.J. Peete and St Bernard Master Development Agreements are still being finalized, two and a half months after the City Council’s approval was given. As for the Board issue, our research suggests that what is being characterized as a legal limitation is actually a policy decision. However, in the interest of finding compromise, we drafted a Cooperative Endeavor Agreement that would provide for a three-person Advisory and Oversight Committee with meaningful participatory and
transparency provisions. I await HUD’s response.

You express your concern that tax credit financing of the redevelopments expires at the end of 2010, presenting HUD with a tight completion schedule. I am committed to the success of these redevelopments, as you are, and I certainly recognize the importance of maintaining sound financing. I am confident that HUD can satisfy my remaining requests with minimal further delay, thereby ensuring that the redevelopment can stay on schedule.

Once I have received the material I have been requesting since December 21, 2007, and have met again with my City Council colleagues to review and discuss it, I will issue a demolition permit for the Lafitte development.

I look forward to continuing to work with you to bring about the successful redevelopment of these sites which are critical to our city’s recovery. It is so important that we work cooperatively to ensure the swift and timely restoration of public and
affordable housing to the City of New Orleans. Please do not hesitate to call me directly anytime if you have any further questions or concerns.

Sincerely, C. Ray Nagin, Mayor

cc:  Secretary Alphonso Jackson, U.S. Department of Housing and Urban Development
Louisiana Governor Bobby Jindal
Louisiana Congressional Delegation
New Orleans City Council

 Click here to download the letter 

FEMA is stepping up plans to move Gulf Coast hurricane victims out of their government-issue trailers because of high levels of formaldehyde. Some questions and answers about the situation.

- How many trailers are involved?

The Federal Emergency Management Agency says 25,162 trailers are still occupied in Louisiana, 10,362 in Mississippi. The trailers were made by several companies. Some were made specially for FEMA.

- Why are so many people still in trailers 2 1/2 years after Hurricanes Katrina and Rita?

Katrina flooded 80 percent of New Orleans, and wiped out coastal counties in Mississippi. While Mississippi’s recovery has been more robust, red tape and underestimates of the cost of rebuilding in Louisiana have kept thousands from returning to their homes. Rental housing in many areas is scarce or expensive. For many people, the trailers have been the only option.

- What’s the health risk?

Commonly used in manufactured homes, formaldehyde can cause respiratory problems and has been linked to cancer by the International Agency for Research on Cancer and the U.S. Environmental Protection Agency. CDC Director Dr. Julie Gerberding said the test results can’t be used to draw any conclusions about other mobile homes.

- When did occupants first report health problems?

In 2006, some trailer occupants began reporting headaches and nosebleeds. Other have reported difficulty breathing. Lawyers for hundreds of storm victims charge trailer makers produced inferior products in a rush to fill FEMA’s demand for thousands of units. Several consolidated cases against trailer makers are before a U.S. District Court judge in New Orleans.

- Why did it take so long to act?

Documents released last July after being subpoenaed by a congressional committee indicated FEMA lawyers discouraged officials from pursuing reports the trailers had dangerous levels of formaldehyde. At the time, Democrats and Republicans criticized FEMA for its limited inspections or tests of trailers whose occupants reported various respiratory problems. CDC testing began in December.

- How rapidly are people being moved from trailers?

FEMA says 800 to 1,000 households move out, on average, per week. FEMA’s new plan, announced Thursday, does not provide a timeline for getting everyone out of the trailers though it hopes to have the task done by summer. The elderly, infirm, families with children and people with respiratory ailments are expected to get priority.

- What’s FEMA’s process?

FEMA is trying to move trailer residents to apartments or other housing, including hotels, motels and small post-storm houses called "Katrina cottages." It’s a multitiered process, like so many other recovery programs, and it is unclear how soon residents will be able to move. Priority will go to those who have health problems or are at risk, such as the elderly, households with young children and people with respiratory ailments.

- I live in a FEMA trailer. What are my options?

FEMA staff is available to discuss housing concerns at 1-866-562-2381 or 1-800-621-3362.
CDC specialists will respond to health concerns at 1-800-232-4636.

NEW ORLEANS (AP) — After downplaying the risks for months, the Federal Emergency Management Agency said Thursday it will rush to move Gulf Coast hurricane victims out of roughly 35,000 government-issued trailers because tests found dangerous levels of formaldehyde fumes.

FEMA Administrator R. David Paulison said the agency hopes to get everyone out and into hotels, motels, apartments and other temporary housing by the summer, when the heat and stuffy air could worsen the problem inside the trailers.

"The real issue is not what it will cost but how fast we can move people out," he said.

The Centers for Disease Control and Prevention said fumes from 519 tested trailers and mobile homes in Louisiana and Mississippi were, on average, about five times what people are exposed to in most modern homes. Formaldehyde, a preservative commonly used in construction materials, can lead to breathing problems and is also believed to cause cancer.

The findings stirred worry and anger across the Gulf Coast, where FEMA is already a dirty word and housing has been scarce since Hurricanes Katrina and Rita struck in 2005.

"Am I angry at FEMA? Of course I am. They should have started moving people out of these trailers once they first started finding problems," said Lynette Hooks, 48. She said that since she began living in her trailer outside her damaged New Orleans home in October 2006, she has suffered headaches and sinus problems, in addition to the asthma she had before.

The CDC findings could also have disturbing implications for the safety of other trailers and mobile homes across the country, Homeland Security Secretary Michael Chertoff said on Capitol Hill on Thursday. But the CDC study did not look beyond the FEMA housing.

Paulison vowed that the agency will never again use the flimsy, cramped travel trailers to shelter victims of disasters. Mobile homes are generally roomier than trailers and considered less susceptible to buildups of fumes.

FEMA will press ahead with plans to supply leftover, never-used mobile homes from the twin disasters to victims of last week’s tornadoes in the South, Paulison said. But the mobile homes will be opened up, aired out and tested first, he said.

The formaldehyde levels in some trailers were found to be high enough to cause breathing problems in children, the elderly or people who already have respiratory trouble, CDC Director Dr. Julie Gerberding said. About 5 percent had levels high enough to cause breathing problems even in people who do not ordinarily have respiratory trouble, she said.

Gerberding said the tests could not draw a direct link between formaldehyde levels and the wide range of ailments reported by trailer occupants. But the CDC urged people to move out as quickly as possible.

As early as 2006, trailer occupants began reporting headaches, nosebleeds and difficulty breathing.

But as recently as last spring, a FEMA spokesman said the agency said no reason to question the safety of its trailers. Just last month, congressional investigators accused FEMA of suppressing and manipulating scientific research to play down the danger — an accusation the agency denied.

"I don’t understand why FEMA bought trailers in the first place that were dangerous," said Henry Alexander, 60, who has been living in a trailer since February 2006. "You would hope they would test them for formaldehyde before. I’m very angry that another agency had to step forward and say they were a health risk."

Chertoff said at a Senate committee hearing that the government has trying since last summer to prod people to move out of the trailers, but it has been difficult to get them to do so because the housing shortage means they might have to move far away, and because they are being allowed to live in the trailers rent-free.

Louisiana has 25,162 occupied FEMA trailers and mobile homes, while Mississippi has 10,362, according to FEMA. Other states also have hundreds of trailers. At one point, FEMA had placed victims of the 2005 hurricanes in more than 144,000 trailers and mobile homes.

Paulison had no estimate of how much it would cost to put people in hotels, apartments and other housing.

Formaldehyde has been classified as a carcinogen by the International Agency for Research on Cancer and a probable carcinogen by the U.S. Environmental Protection Agency. Fumes can cause burning of the eyes and nose, shortness of breath, wheezing, coughing and tightness in the chest.

The CDC examined only FEMA housing and cannot draw any conclusions about the safety of prefab homes elsewhere, Gerberding said. But "I think we’re going to learn a lot more in the next year or two," she said after a news conference at FEMA offices in New Orleans.

"It seems like I have had more respiratory problems since I have been in the trailer," Roger Sheldon, 60, said in Pascagoula, Miss. But he was not ready to blame formaldehyde "You know you can walk into any new trailer, or house for that matter, and things like new carpet can cause irritation."

"To be honest, I’m thankful to the government," he added. "I don’t like the trailer, but it beats the alternative for now."

With housing still in short supply — 80 percent of New Orleans was flooded, the pace of rebuilding has been slow, and rents are out of reach for many — Ernest Penns of the devastated Lower Ninth Ward said he, too, was grateful for his trailer: "I got nowhere else to go."