Like tens of thousands of New Orleanians, Barbara and Larry Dillon returned after Hurricane Katrina to find their home ravaged by water that a government-built levee system did not contain.
Many months later, the couple accepted $51,000 from the taxpayer-financed Road Home program and, combined with insurance proceeds, restored their South Tonti Street home, resettling in May 2007.
Now, less than three years later, the Dillons are about to accept a buyout -- financed by the same federal Community Development Block Grant sources as the Road Home -- to leave their home, as the state and federal governments prepare to build adjacent hospitals on 70 acres in lower Mid-City.
Louisiana Recovery Authority data shows that Road Home paid owners of 41 properties at least $3.2 million and perhaps more than $3.4 million to rebuild in the neighborhood bounded by Tulane Avenue, South Rocheblave Street, Canal Street and South Claiborne Avenue.
Those properties are among the 432 residential, commercial and vacant parcels the state is in the process of expropriating to make way for the hospitals. The state plans to build the 424-bed successor to Charity Hospital between Galvez Street and Claiborne Avenue. The U.S. Department of Veterans Affairs plans a 200-bed facility across Galvez. It's unknown at this point how much the buyouts will cost.
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http://www.nola.com/politics/index.ssf/2009/11/post_175.html