1. New Orleans: A Case Study of a “Natural” Disaster SOC 331 Population and Society 07.30.08 Large parts of the presentation have been prepared and previously presented by Jon Agnone, Irina Voloshin, Any Bailey, Scott Deburgomaster, Stephanie Liddle, Tyler Corwin and Dave Sharrow

2. Topics History & Neighborhoods Makings of a Disaster Good Neighbor Plan Housing & Insurance

3. History & Neighborhoods

4. The Makings of a Disaster Katrina: Merely A Catalyst Impact - Disproportionately affecting New Orleans Residents by: Race/Ethnicity (African Americans) Socioeconomic Status (poorer) Spatial Location (below sea level) Putting it all together: The intersection of race, poverty, location

5. The Dynamics of Dislocation Who left and why? Will people return? –A link to housing Sources of help: Least for most needy Family, Friends, and Nonprofits What is the role of the government and business/industry?

6. Modes of Response: Inequality Perpetuated Governmental Response Local/City – Good Neighbor Act State as conduit Federal – FEMA Business Response Insurance Companies – flood vs. hurricane Tourist Economy Disaster as Entertainment (disaster tour companies)

7. New Orleans’ Good Neighbor Plan City Ordinance Goal: Protect Property How: Deadline for home improvements –Home Owners have three options…

8. Option 1

9. Option 2

10. Option 3

11. Problems with Good Neighbor Plan Notices mailed or posted Stricter law passed February 2007 What do residents think?

12. What does it all mean? “When you look at the big picture, I believe that this is all a plot to drive poor people out of New Orleans.” -Curtis Muhammad, People’s Organizing Committee

13. Housing & Insurance Before Hurricane Katrina: –The average price of single-family home in the metro area was $200,987 –In eastern Orleans Parish, made up of predominately black and lower income neighborhoods, the average price was $136,161 –The average rent in the metro area was $737

14. Housing & Insurance Desperate housing situation for some and opportunity for others –The average price for a single-family home in the metro area is now $212,875 (6% increase) –Average rents have increased to $921 a month. Some have even doubled or tripled ($1,500 to $2,100) –In eastern New Orleans, the average price of a home fell by 44% ($76,750) after storm Since, risen 17% or $90,062.

15. Metro Area Eastern Orleans

16. Housing & Insurance After Hurricane Katrina: –Nearly 70% of housing units (owner- and renter-occupied) were damaged. –Almost 60% of housing units damaged were classified as “destroyed or suffering severe damage” (cost to make habitable ≥ $30,000).

17. Housing & Insurance –Proportionately, owner-occupied housing units were most effected Roughly 76% versus 67% of renter-occupied units –However, apartment units serve more residents—thus renters were impacted in greater numbers –Also, unlike homeowners, renters are not “eligible” for flood or hazard insurance. Further reducing chances of recouping losses

18. Housing & Insurance Statistics on how many residents had “disaster” insurance are speculative –Estimates range between 30 to 50% of homeowners lacking flood Insurance altogether –Likely that most homes were not wind and flood protected Since the governmental flood protection was virtually non-existent pre-Katrina (e.g., no flood related building codes), residents likely had a “It will not happen to me” attitude

20. Housing & Insurance However, “pay-out” has been slow –Insurance companies have disputed flood versus wind damages Leveling of homes has made it difficult to determine cause –Residents often feel insurance dollars are insufficient Selective/partial coverage by insurance companies Residents failed to keep up-to-date home appraisals

21. Road Blocks to Rebuilding Costs, Costs, Costs –Housing prices have increased –Pay up-front expenses and then submit for FEMA reimbursement (may or may not be granted) –M andatory flood insurance is now required in many regions under the National Flood Insurance Program. Pre-Katrina, Average premiums were $375 a year and only recommended

22. Mandatory Flood Coverage & Annual Premiums (A Zones)

23. Road Blocks to Rebuilding –Lower prices in eastern New Orleans, but… Must pay rent and likely a mortgage while fixing flooded home Commute to new property--higher gas prices Possible leave of absence from work Fewer jobs available if returning Home insurance rates (covering windstorms, fire, hail, lightening, theft, etc.) have also increased Building costs have increased –In some case, houses must be raised above flood plain (8-10 ft) Cost of living increased--utilities, food, etc.