HUD settles suit over Katrina housing program

July 07, 2011
The U.S. Department of Housing and Urban Development said Wednesday that it would hand out $62 million to 1,460 Louisiana homeowners to settle a lawsuit that alleged a Hurricane Katrina rebuilding program was unfair to blacks and left many people unable to rebuild in neighborhoods like the Lower 9th Ward after the 2005 storm.
     The agreement ends a lawsuit filed in 2008 in federal court in Washington, D.C., by five homeowners and housing advocates over the way grants were handed out by the Road Home program. The suit alleged Road Home discriminated against blacks because it calculated the worth of a home on housing values prior to Katrina's assault on the Gulf Coast.