Controversy over Katrina aid for investment property landlords

photo credit: mashleymorgan
There’s been more positive news for the US real estate market after officials said they are still looking at ways of splashing cash to help out the economy.

But as the American government scratches its head over state aid methods, its easy to forget about some of the funding that’s been around for ages, but isn’t being put to good use.

The Associated Press reports officials in New Orleans say rents in the city are sky high because a massive $846 million in aid money has not been dished out since hurricane Katrina struck.

The ’shotgun’ rental units of the Louisiana city are a million miles away from the gleaming towers of the UAE, but here property investment landlords are also facing unforeseen problems.

13,000 owners, only 352 handouts

After Katrina, the Louisiana Small Rental Property Program was given cash to pass on to up t0 13,000 live-in owners who let their modest properties. But only 352 people have so far benefited, AP says.

Quoted by the agency, one landlord,Sandra Marshall, said:

“I have old tenants calling me all the time asking when I’m going to get the place back up and running. I wish I knew.”

A three-year-old real estate market issue

She and thousands of other people are still working to refurbish the rental property wrecked by Katrina in 2005. Given the outgoing US administration is all too quick to help out Wall Street, shouldn’t it also be working on the three-year-old grass roots problems affecting property owners in New Orleans?

Prices for some units in the city, especially condos, remain healthy, according to the National Association of Realtors. Maybe the money men have just gone and overlooked the little people again.