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Louisiana dropping lawsuits against thousands of homeowners
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The state of Louisiana is dropping lawsuits against thousands of homeowners accused of misspending grants to elevate their homes after Hurricanes Katrina and Rita.
Following the destructive hurricanes, about 32,000 homeowners received elevation grants, typically $30,000 each, on the promise they would raise their houses to prevent future flooding. But some homeowners said they had been told that they could use the money for repairs, according to an investigation by The Times-Picayune The New Orleans Advocate, WWL-TV and ProPublica.
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Louisiana is dropping lawsuits against thousands of homeowners after they were accused of misspending grants after damage caused by Hurricanes Katrina and Rita.
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In an effort to recoup the grants that hadn’t been spent properly, the state sued about 3,500 homeowners — seeking repayment of $103 million.
However, U.S. Rep. Troy Carter announced during a news conference Thursday that those lawsuits would be dropped, The Times-Picayune ‘ The New Orleans Advocate reported.
In addition, after 17 years, the U.S. Department of Housing and Urban Development is closing out the $10 billion Road Home program, the largest housing recovery effort in U.S. history, Carter said. The process had been held up by the many Road Home grants that HUD deemed noncompliant, including thousands of elevation grants.
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