Katrina victims: Discrimination alleged in suit - USATODAY.com: Two civil rights groups and five New Orleans homeowners sued Louisiana's hurricane rebuilding program Wednesday, saying it discriminates against more than 20,000 African Americans whose houses were damaged by Hurricanes Rita and Katrina.
The class-action suit, filed in federal court in Washington, alleges the Louisiana Road Home program awards smaller rebuilding grants to black homeowners than white homeowners. It says the state program's formula for calculating the grants — approved by the U.S. Department of Housing and Urban Development — is biased against homes in predominantly black neighborhoods.
'HUD and Louisiana have failed to honor the noble promise of this program,' says civil rights lawyer Joseph Sellers, who represents the homeowners.
The Louisiana Recovery Authority, which administers the $11 billion housing redevelopment program, bases grants on the pre-storm value of the house or the rebuilding cost, whichever is less. The authority had awarded $7.3 billion by Oct. 28, its weekly report says.
The lawsuit says home values in predominately black neighborhoods are lower than those of similar homes in white neighborhoods.
