1. REBUILDING & REDEVELOPING NEW ORLEANS The Post-Katrina Push for a More Sustainable Future: Challenges, Successes & Lessons Learned in Funding & Codifying a “Green” Recovery Jeffrey J. Thomas, JD

2. Sustainability, Safety & Equity: Community Goals in Rebuilding “Unified New Orleans Recovery Plan” “…citywide needs and issues…should be addressed on a short-term and long-term basis in order for the City to achieve a sustainable, environmentally safe, socially equitable community with a vibrant economy.” Environmental Protection & Resilient Stormwater Protection Catalytic Commercial Revitalization Affordable, Energy Efficient & Flood Resistant Housing Adaptive, Durable & Efficient Facilities and Infrastructure

3. Making it Stick: Funding & Codifying a Resilient Rebuild “Sustainable Recovery Projects” Durable/Adaptive Infrastructure Affordable/Energy Efficient Housing Catalytic Commercial Development Environmental & Stormwater Protection FEMA Hazard Mitigation Grants (HMGP) Long-Term Local Laws, Policies & Programs FEMA Public Assistance Grants (PA) U.S. HUD Disaster Community Development Block Grants (CDBG-DR) Bonds, Tax Credits & Other Funds

4. Greening Public Facilities & Infrastructure The Goal : “As infrastructure is rebuilt, it must be designed and constructed in a sustainable manner that will protect key structures and facilities in the event of another significant flood and reduce unnecessary future costs. Strategic investments must also be made to stimulate neighborhood revitalization and to modify infrastructure to accommodate additional population moving into some areas.” UNOP p.2.14

5. Greening Public Facilities & Infrastructure The Funds: FEMA PA – Approximately $7.05 Billion in obligated funds for “the repair, replacement, or restoration” of pre-existing, disaster-damaged assets. 1 FEMA HMGP – Approximately $361.8 million in obligated funds to implement hazard mitigation measures (elevations, flood/wind protection, etc.). 2 HUD CDBG-DR – Approximately $325 million (out of $411 million awarded to New Orleans). 3 The Projects: Challenges & Successes Bike lanes increased twentyfold Post-K (over 100 miles); 4 Transit service declined by 55% 5 All 55 new or renovated public school facilities to be LEED Silver; 6 1 city building is LEED. 7 Over 2,000 acres of greenspace restored or created, including the new Lafitte Greenway. 8 Multiple water boil advisories due to fractured/antiquated system but over $500 million to be spent modernizing over next three years. 9 Recent $2.1 billion settlement for streets; 10 ten years in to craft and unknown extent pervious. Energy Smart Streetlight Conversion Program converted 600 streetlights weekly in 2014-2015. 11 Enacted Long-Term Policy: Codifying the Green City of New Orleans Energy Efficiency “Benchmarking” Pilot (92 city-owned benchmarked to ID operations strategies to reduce energy costs by at least $800,000.) 12 Article 23 of the Comprehensive Zoning Ordinance (Stormwater Management Controls) 13

6. Greening Housing & Commerce The Goals: “Technical and financial resources must be made available so that residents and businesses can work together to make collective decisions on where and how to rebuild more closely together with flood mitigation and sustainable/green building practices.” UNOP p. 2.17 “Provide incentives for energy efficient and sustainable rebuilding practices to be incorporated into new construction. In New Orleans, “sustainable” design refers both to resource energy efficiency, durability, and wind and flood protection.” UNOP p. 3.54

7. Greening Housing & Commerce The Funds: Historic, Low-Income Housing & New Markets Tax Credits – Approximately $2.1 billion in New Markets Tax Credits (NMTC) allocated among eligible New Orleans issuers since 2006. 14 FEMA HMGP – $29.7 million in U.S. HUD Neighborhood Stabilization Grant Funding (NSP2) for affordable housing development through NORA among low-moderate income households. 15 HUD CDBG-DR – Approximately $44.9 million (out of $411 million awarded to New Orleans). 16 The Projects: Challenges & Successes Sustainability mandates/incentives not incorporated in Road Home Program or State’s Low- Income Housing Tax Credit Program; but NORA leveraged $85 million in public-private funds to construct/rehab 463 affordable units attaining Enterprise Green Communities Certification. 17 Less than 5% of City’s available CDBG-DR has been directed to commercial development; but when leveraged with historic and NMTC’s it has resulted in over $100 million neighborhood anchor projects (Saenger, Myrtle Banks, Circle Foods, Healing Center & OC Haley and Gentilly Corridors) 18 Enacted Long-Term Policy: Codifying the Green Energy Smart (Entergy cash rebates on energy efficiency improvements); NOLA Wise (Public- private partnership to provide home energy assessments); PACE Financing (proposed). 19 CZO Articles 5.9B (height/parking bonuses for green buildings) & 23 (Stormwater Management)

8. Environmental Protection & Stormwater Management The Goal : “Addressing today’s water and soil management challenges requires a new paradigm in which stormwater and groundwater are managed as valuable resources rather than as nuisances [through] urban design opportunities for achieving a safer and more sustainable balance between ground and water [by] slowing and storing stormwater rather than pumping, circulating surface water and recharging groundwater, creating vital public spaces around water, and incorporating natural elements and processes into the operation of an integrated living water system.” Greater New Orleans Urban Water Plan 18

9. Environmental Protection & Stormwater Management The Funds: FEMA PA – Approximately $104 million dedicated to street repairs. 20 FEMA HMGP – Approximately $200 million to construct green infrastructure systems in qualifying locations. 21 HUD CDBG-DR – Approximately $141 million recently awarded through U.S. HUDs National Disaster Resilience Competition. 22 Other City Funds (BP, Coastal, Capital) – Approximately $58.6 million. 23 The Projects: Challenges & Optimisms In creating a prototype “Resilience District,” CDBG-DR was awarded specifically to create large- scale stormwater protection systems but the amount awarded was half what was requested. HMGP can be used for flood risk reduction but cannot be spent in all flood prone areas because FEMA regulations does not score the benefit of abating subsidence and only some other environmental values. 7 Long-Term Policy Needs: Codifying the Green Sustainable locally-derived funding source for stormwater protection Incentives to encourage and finance safe greater water retention within private property lots Uniform City Budget & Public Works policy to incorporate increased permeability and other water detention features into park spaces, neutral grounds, and public rights-of-way citywide.

10. In a Nutshell: Disaster-Recovery Community Development Block Grants (CDBG-DR) 24 Policy Aims: Intended to assist with restoration of infrastructure, housing, and economic revitalization in presidentially declared major disaster areas “National Objectives:” Funded projects must either eliminate slum/blight; principally benefit low/moderate income persons (at least 50%); or use funding is of urgent need (no other recourse) Amount awarded is based on estimated cost to rebuild most impacted distressed homes, businesses, and infrastructure back to pre-disaster conditions, plus a 30% resiliency amount, minus covered costs Eligible Investments: Public and Privately Owned Assets Infrastructure, Commercial Properties, Housing, Open Space Code Enforcement & Other Limited Government Functions Repairs to Existing Assets & Constructing New Concepts Funding Awards: $14.53 Billion to Louisiana Since 2005 (Katrina, Rita, Wilma, Gustav, Ike) $425 Million to New Orleans (Katrina, Rita, Ike) $37.2 Billion Nationwide Since 2005

11. In a Nutshell: FEMA Public Assistance Grants (PA) 25 Policy Aims: Provides supplemental grant assistance for debris removal, emergency protective measures, and the repair, replacement, or restoration of pre-existing, disaster-damaged assets. Federal share of assistance is 75-90% of the eligible cost to repair, replace, or restore FEMA does not provide funding for “improvements” Alternate projects (different post-disaster function/design) garner 75% of Federal Share otherwise awarded for repairs or replacements (now Alternative Procedures to negotiate) Eligible Investments: Infrastructure, buildings, and other assets owned by state/local gov’t or eligible non-profits Safeguards to mitigate rebuilt assets from known or future hazards Funding Awards: $8.45 Billion to Louisiana Since 2005 (Katrina/Rita) (“permanent work”) $7.1 Billion to New Orleans (Katrina/Rita) (“permanent work”)

12. In a Nutshell: FEMA Hazard Mitigation Grants (HMGP) 26 Policy Aims: Grant assistance to implement long-term hazard mitigation measures after declared major disaster that are consistent with state hazard mitigation plans and benefit the damaged area Project must score a Benefit-to-Cost Ratio of at least 1:1 Total amount available to a State is 15% of total estimated disaster expenses (FEMA related) within 12 months of disaster (20% if State has an Enhanced Mitigation Plan) (“locked-in”) Eligible Investments: Long-term measures involving public or eligible private assets Property elevation or retrofits, local flood control and stormwater management, protective greenspace, voluntary property buyouts, Infrastructure, buildings, and other assets owned by state/local gov’t or eligible non-profits, etc. Funding Awards 27 $2.16 Billion “Locked-In” for Louisiana Since 2005-2011 $1.34 Billion obligated to Louisiana for spending by State/Parishes $15.4 Million actually spent to date (0.07% of the total “locked-in”)

13. Footnotes & References 1-2: Source: http://www.fema.gov/disaster/1603; see also, http://www.nola.com/politics/index.ssf/2015/12/fema_katrina_rita_public_facil.htmlhttp://www.fema.gov/disaster/1603http://www.nola.com/politics/index.ssf/2015/12/fema_katrina_rita_public_facil.html 3, 16, 18: Source: http://www.rebuild.la.gov/Default.aspx (Search: Katrina/Rita LTCR "Infrastructure" Funds for Orleans Parish). 4: See, http://www.nola.gov/dpw/bicycling/http://www.nola.gov/dpw/bicycling/ 5: See, Ride New Orleans - The State of Transit in New Orleans: Ten Years After Katrina (available at: http://rideneworleans.org/wp-content/uploads/2015/08/sots2015new.pdf).http://rideneworleans.org/wp-content/uploads/2015/08/sots2015new.pdf 6: See, New Orleans Preliminary Resilience Assessment June 2015, p.27 (available at: http://www.nola.gov/resilience/resources/nola-preliminary-resilience-assessment-6-15/). 7: U.S. Green Building Council in Louisiana (Search of LEED properties in LA conducted via http://usgbclouisiana.org/?page=LEED_in_Louisiana).http://usgbclouisiana.org/?page=LEED_in_Louisiana 8: Source: http://www.nola.gov/parks-and-parkways/http://www.nola.gov/parks-and-parkways/ 9: See, http://www.nola.com/politics/index.ssf/2015/12/merry_christmas_new_orleans_fr.html#incart_story_package; see also, http://www.nola.com/politics/index.ssf/2012/07/group_of_experts_supports_sewe.html; http://media.nola.com/politics/other/Power%20System%20Report%20City%20Water%20Management%20Task%20Force%20April%202012.pdfhttp://www.nola.com/politics/index.ssf/2015/12/merry_christmas_new_orleans_fr.html#incart_story_packagehttp://www.nola.com/politics/index.ssf/2012/07/group_of_experts_supports_sewe.html http://media.nola.com/politics/other/Power%20System%20Report%20City%20Water%20Management%20Task%20Force%20April%202012.pdf 10: See, http://www.nola.gov/mayor/press-releases/2015/20151201-pr-fema-settlement/http://www.nola.gov/mayor/press-releases/2015/20151201-pr-fema-settlement/ 11: See, RESULTS NOLA 2014: Mid-Year Performance Report January 1– June 30, 2014. p. 114 (available at: http://www.nola.gov/getattachment/d1eeeb40-b286-4d5e-b6b0-41831a24f8a7/ResultsNOLA-2014-Mid-Year- Report/).http://www.nola.gov/getattachment/d1eeeb40-b286-4d5e-b6b0-41831a24f8a7/ResultsNOLA-2014-Mid-Year- Report/ 12: See, http://www.greencoastenterprises.com/projects/city-of-new-orleans-benchmarking/http://www.greencoastenterprises.com/projects/city-of-new-orleans-benchmarking/ 13: See, http://czo.nola.gov/home/http://czo.nola.gov/home/ 14: Derived by search at: https://www.cdfifund.gov/awards/state-awards/Pages/default.aspxhttps://www.cdfifund.gov/awards/state-awards/Pages/default.aspx 15, 17: See, http://redevelop.nola.gov/images/NORA-NSP2FinalReport-web.pdf 19: See, http://www.nola.gov/environmental-affairs/energy-efficiency/; see also, See, City of New Orleans National Disaster Resilience Competition Application, p. 56. (Available at: http://www.nola.gov/resilience/resources/ndrc_phase2_neworleans_narrative_graphics/).http://www.nola.gov/environmental-affairs/energy-efficiency/ 20-23: See, City of New Orleans National Disaster Resilience Competition Application, p. 78. 24: Disaster Recovery Community Development Block Grants (CDBG-DR) are allocated by the Department of Housing and Urban Development (HUD) under Title I of the Housing and Community Development Act of 1974. 42 U.S.C. § 5306(c)(4) (1999). Applicable regulations are at: 24 CFR 570.1-570.913. 25: Robert T. Stafford Disaster Relief and Emergency Assistance Act, Pub. L. 100-707, 42 U.S.C. §§ 5121–5207 (2006), signed into law November 23, 1988, establishes the system by which a presidential disaster is declared and federal financial aid and other forms of assistance from FEMA, HUD, and other agencies is triggered. Applicable regulations are at: 42 U.S.C. § 5172, 5189f (2013); 44 CFR 206.200- 206.349. 26: 42 U.S.C. §5170c; 44 CFR 206.430-206.440. 27: See, Department of Homeland Security - “FEMA and the State of Louisiana Need to Accelerate the Funding of $812 Million in Hazard Mitigation Grant Program Funds and Develop a Plan to Close Approved Projects.” OIG-14-150-D (September 2014) (Available at: https://www.oig.dhs.gov/assets/GrantReports/2014/OIG_14-150-D_Sep14.pdf).

14. REBUILDING & REDEVELOPING NEW ORLEANS The Post-Katrina Push for a More Sustainable Future: Challenges, Successes & Lessons Learned in Funding & Codifying a “Green” Recovery Jeffrey J. Thomas jefftstrategies@gmail.com 504.237.4736