The budget is being increased by 60% due to inflation of construction cost for materials and labor for state.
The state has determined that the costs for building new residential homes since 2019 has gone up by 60 percent due to inflation in the construction industry. This inflation seems only to impact state managed projects and programs.
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By Murray Wennerlund published 8-9-2023 updated 8-9-2023
Make a contribution Print Inflation LA Office of Community Development Disaster Recovery Unit (OCD-DRU) Floods and flash floods 311 views

When you call your state representative asking about your hurricane Ida assistance be sure to mention the 60% inflationary increase for labor and materials. It wouldn't be correct to say the that inflationary increases only impacted state managed programs that are funded by federal tax dollars allocated by congress. Or would it be the perfect way to clean up some cash flow issues at the state level. Could even be used to assist a single multinational not for profit and a real estate broker. 

Call it for what it is, the state managers at the OCD-DRU in Louisiana have increased their spending based on inflation but applied this spending only to programs and projects that the state is funding with Federal Tax Dollars. This increase does not apply to homeowners using the same federal tax dollars to construct and repair their homes after the floods, hurricanes, winds. 

Again, the state of Louisiana has identified, and HUD has approved inflationary costs increases only for state supported programs and not for the general public and taxpayers of the nation. 

Just one more way to launder federal dollars that once in the hands of state managers appointed by the governor seem to pave the way for hundreds of millions of dollars to go astray.

Consumers 7% to 12% construction inflation predicted. State of Louisiana Managed construction estimates 60% inflation rates. It appears that by using federal taxpayer money, inflation increase 5 times the national average.

Snipped from Action Plan Amendment 21 Louisiana Homeowners Program 2016 Floods.

OCD CDBG Homeownership (OCHO) Pilot Program

Summary of change: Action Plan Amendment (APA) No. 16 created and allocated funds to the OCD CDBG Homeownership (OCHO) Pilot Program. Under OCHO, LLT would transfer approximately 20 pad-ready lots in Audubon Estates to an eligible non-profit. The non-profit would receive CDBG-DR funding from OCD to cover 100% of home construction. The Grantee would then sell those homes to qualified Low to Moderate Income (LMI) home buyers.

The new approach will improve implementation efficiencies by separating the construction phase from the disposition of home. Utilizing resources already in place, OCD and LLT will manage construction of the affordable housing units using CDBG-DR funds. During the construction phase, OCD will select an eligible applicant to market and sell the homes to Low to Moderate Income (LMI) households. Through issuance of a Notice of Funding Availability (NOFA), the awarded applicant will be responsible for marketing and selling these newly constructed homes to qualified home buyers under the terms as allowed by the Program.

D. Proposed Use of Funds

  1. OCD CDBG Homeownership (OCHO) Pilot Program

Eligible Activity

  • Clearance, Rehabilitation, Reconstruction, and Construction of Buildings (Including Housing), HCDA Section 105(a)(4)
  • New Housing Construction, as identified in Federal Register Docket No. FR-5989-N-01
  • Housing Services, HCDA Section 105(a)(24) National Objective Benefit to low- and moderate-income persons

Program Budget $5,000,000
Budget Change $3,000,000
Revised Program Budget $8,000,000

Geographic Eligibility For this pilot program, geographic eligibility will be limited to Pointe Coupee Parish

Administering Entity State of Louisiana or its subrecipient(s)

Budget change summary: The budget is being increased by 60% due to inflation of construction cost (i.e. materials and labor)

Research Resource: 

 

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