Buyout bill was thrown last-minute curveball (LA recovery)

http://www.nola.com/news/t-p/frontpage/index.ssf?/base/news-4/1135148922129420.xml

White House balked at the costs despite frenzy of calls, Baker(R) says

WASHINGTON -- Last-minute opposition from the Bush administration stalled legislation to create a federal corporation that would buy homes damaged or destroyed by Hurricanes Katrina and Rita, according to the bill's sponsor.

snip

But the Senate GOP leaders wanted the White House's OK.

Despite a carefully orchestrated effort, which included frantic weekend e-mails and phone calls to the White House from longtime Bush supporters Joseph Canizaro, a developer and a leader of Mayor Ray Nagin's Bring New Orleans Back Commission; Donald "Boysie" Bollinger, president and CEO of Bollinger Shipyards; and former Democratic Sen. John Breaux, White House officials balked.

-snip-

For example, for a homeowner with 30 percent equity in a $100,000 house, the guaranteed payout would be at least $18,000, while the bank, holding a $70,000 mortgage, would get no more than $42,000. Baker said he thinks it's the fairest system to give homeowners some return on their investments, banks some return on their loans, and the federal government an opportunity to get some of its spending back as property is sold under a competitive bidding process.

Full Text of Bill

http://www.govtrack.us/congress/billtext.xpd?bill=h109-4100


articles:

http://2theadvocate.com/stories/120805/opi_edi001.shtml

http://www.nola.com/news/t-p/frontpage/index.ssf?/base/news-4/1133507193162130.xml

http://bayoubuzz.com/articles.aspx?aid=5737

BushInc really wants to reconstruct NOLA into a zone of development
where the poor minorities take all the construction and service jobs,
while the rich develop NOLA into a theme park and luxury living complex.

They don't want the homeowners to keep their homes. That would ruin
everything for the crony developers.

Sue

Yuppies!

:evilgrin:

:shrug:

btw, Has anyone mentioned the huge loss in US tax revenue as thse folks get to carry forward their losses against their income for the next several years? Thought not.

i don't get what you mean exactly

:shrug:

& I were looking at island property. I asked an accountant friend what happens is th whole damned beach gets blown away, where rebuilding would be impossible. He said you take the insurance money then write off any value lost over that against your personal income for however long it takes. Small consolation but better than nothing.

Never bought the prop. Too bad. 200K condos now going for 650plus, 10 years later.

I haven't heard anything about being able to write off my losses in the future. Is that only for uninsured people or would it cover things that insurance didn't cover?

or you're uninsured altogether.