The Battle of New New Orleans: Part 1, the battle

February 28, 2007 | Uncategorized

 

The Battle of New Orleans, which propelled Andrew Jackson to the Presidency, in fact made no difference whatsoever to the War of 1812, as it was fought three weeks after the peace treaty had been signed.

Battle_new_orleans_jackson

We took a little bacon and we took a little beans

And we fought the bloody British in the town of New Orleans

The speed of early 19th-century communication was such that people acted on what they believed, even though it was months out of date.

[When the telegraph was invented and popularized forty years later, the Rothschilds complained that it would reduce the knowledge advantage of being an insider.]

 

Today, a year and a half after Hurricane Katrina, the Battle of New New Orleans is being fought on two fronts, one political, one practical. As illustrated, even if in profile, by these New York Times articles, the war is over even as some still fight the battle.

 

 

A New New Orleans archive

Among my most important posts on New New Orleans are these:

09/05/05: Building New New Orleans

09/08/05: New New Orleans, Tycho and St. Paul’s

09/12/05: New New Orleans: the pessimistic view

09/13/05: Future New Orleans: the optimistic view

09/15/05: New Orleans: lawyers, molds and money

10/26/05: Prescribing New New Orleans, Part 1 and Part 2

02/01/06: NNO: economic gangrene setting in?

02/06/06: NNO: Smaller is better, Part 1: the concept and Part 2: the reality

03/27/06: Future quantified: Part 1, diagnosis, Part 2, prognosis, and Part 3, prescription

05/15/06: NNO: Saint Katrina?

05/19/06: NNO: what rough beast

06/20/06: NNO: Creative destruction, Part 1 and Part 2

In the policy front, many dedicated souls continue to strive, with discouraging results:

BAY ST. LOUIS, Miss. — In the two years following the 2004 tsunami in the Indian Ocean, Habitat for Humanity International, the nondenominational Christian ministry, built or repaired 8,500 houses in Indonesia, Thailand, India and Sri Lanka.

 

Habitat for Humanity seemed poised to do the same thing along the Gulf Coast after Hurricane Katrina hit in 2005. Just days after the storm, its chief executive appeared on CNN, promising to build and repair as many homes as it could pay for, “hopefully in the thousands.” The organization quickly mustered 50,000 volunteers, raised $127 million, and attracted prominent backers like President Bush and the New Orleans jazz luminaries Harry Connick Jr. and Branford Marsalis.

 

Harry_connick_jr

Harry Connick, Jr.: Cajun and proud of it

It should have worked, shouldn’t it? It was supposed to work.

But almost 18 months after storms destroyed more than 250,000 homes, Habitat for Humanity says it has built just 10 houses for poor hurricane victims here, 36 in New Orleans, and a total of 416 along the entire coast, from Alabama to Texas. More are under construction, for a total of 702. [Habitat’s own view is more optimistic — Ed.]

 

Note that even though Louisiana was the hardest hit, Louisiana has seen less than one-tenth of the rebuilding. Might there be forces at play specific to the state? Reasons why Louisiana in particular is inhospitable to recovery development?

 

Keep_out_sign

Can you read the anti-development signs?

Why is Habitat, which is so passionately committed, which can mobilize so much capital, and which has nothing but the best objectives, struggling to make a dent?

That slower pace reflects, in part, the more complex houses that Habitat builds in the United States, as well as the mind-numbing issues — involving insurance costs and government regulations — that seem to have bogged down efforts to rebuild after Hurricanes Katrina and Rita.

As a practitioner in the arena, my hackles rise —

 

Phil_spector

Whose mind you calling numbed?

— at a phrase like ‘mind-numbing issues’, which may be read here as journalist shorthand for ‘complicated things I choose not to study in depth.’

 

Study_what_study

Dude, this is so boring

On this blog I’ve chronicled the insurance challenges, the mold risk, the flood-plain issues, the willingness to rebuild houses that the next hurricane will simply level again.

But Habitat International is starting to face criticism that its procedures are slow, rigid and perhaps unsuited to helping disaster victims, however rewarding its efforts are for its volunteers. The organization is working through its independent local affiliates, which function like franchises and which have tended to build a dozen houses a year each.

 

“I don’t think they were prepared to undertake the massive rebuilding efforts required after Katrina,” Fred Carl Jr., who was the Hurricane Katrina housing coordinator for Gov. Haley Barbour of Mississippi, wrote in an e-mail message.

 

Fred_carl_jr

Fred Carl, Jr., owner of Viking Stove

No one was prepared to undertake those efforts — and equally important, the situation on the ground was unprepared to respond to such efforts. Only two groups are capable of mobilizing quickly on the vast scale needed:

 

  • The Federal government, whose efforts have been well documented and justly criticized numerous places elsewhere
  • Large for-profit builder-developers, who move only when there is an economic proposition to sustain.

Light_dawns

Are you beginning to see the pattern?

One problem confronting Habitat was the lack of local labor:

Traditionally, Habitat volunteers raise money and use donated materials to build $60,000 houses in their own communities. In the region today, most of the volunteers come from “away,” as Mr. Meinert put it, and the group has used some factory-built modular houses.

Habitat’s model presumes there is local demand, and the problem is one of supply. What if there is too little demand?

In an interview here, Mr. Meinert said that about 400 of the 700 houses were what the group calls House in a Box projects, framed outside the Gulf Coast by volunteers and then trucked south for assembly.

 

The labor problem is solved by standardization, the ‘Katrina cottage’ or otherwise.

 

Katrina_cottage

Katrina cottage nearing completion

What about the cost?

Habitat for Humanity does not give houses away; it provides 20-year no-interest mortgages and uses the payments to finance more houses.

In terms of lending, that’s about as generous as it can get.

 

Friendly_lenders

These guys look pretty generous too

To qualify, families must have incomes well below the median for their areas, but steady enough to cover mortgages. (Traditionally, 90% of applicants are rejected.)

 

Not everyone who wants a home is economically suited to being a homeowner. Said in reverse, the problem in New New Orleans is not one of supply; rather, it is one of effective demand. For economists, demand does not mean simple desire, it means desire coupled with ability to pay.

 

Pay_here

No pay, no demand

They must also have good credit:

· Agree to contribute several hundred hours of “sweat equity”

· Attend classes on finances and homeownership, and

· In some areas, including New Orleans, come up with several thousand dollars for taxes and insurance.

None of these restrictions is illogical; none is unreasonable. Sweat equity is both useful in its own right and a great differentiator of those who desire from those who have credible effective demand.

 

Those strict requirements have frustrated some applicants for one Habitat project, Musicians’ Village, set on eight acres in the Upper Ninth Ward of New Orleans. The project was publicized as a way to bring back the city’s displaced traditional jazz and blues musicians, though it will include non-musicians, too. It will also have several duplex apartments for older musicians and a community center.

Some musicians have complained that Habitat has rejected them, and others that its processes discouraged them from applying.

Tanio Hingle, the bass drummer with the New Birth Brass Band, said he had applied for the program but was not pursuing it. He said he thought Habitat should provide housing first and worry about the paperwork later.

“Give me the house; worry about whether I can pay for it later.”

 

Gimme

Housing first! Pay later!

Complaints like his started surfacing in the New Orleans news media last year. Mr. Connick and Mr. Marsalis recently asked Jackie Harris, a music producer who now works for them, to help musicians through the process for the Habitat project, which will eventually include more than 70 houses on-site and 150 in the area.

 

Ms. Harris said the musicians and Habitat had misunderstood one other but were adjusting. “It’s been a learning curve for both,” she said.

Habitat officials say … they have been flexible after the hurricanes, reducing the hours of required sweat equity, for example, and allowing musicians to use performance records rather than pay stubs to prove income.

 

Even so, and even with a motivated and generous home builder and lender giving it all, the new homes come slowly. Meanwhile, where are the people? Who is coming, who is staying, who is leaving?

 

Coming_or_going

Who’s coming, who’s going?

[Continued tomorrow in Part 2.]

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