(The Center Square) − Two decades after Hurricane Katrina, the rows of pastel “Katrina Cottages” scattered across Louisiana still stand as reminders of both government ambition and bureaucratic missteps.
In 2006, the Federal Emergency Management Agency awarded Louisiana nearly $75 million to build more durable alternatives to the infamous FEMA trailers that became a symbol of post-storm misery. The program, part of FEMA’s $400 million Alternative Housing Pilot Program, aimed to provide hurricane survivors with safe, elevated cottages equipped with utilities for permanent living.
The cottages – ranging from 612 to 1,112 square feet – cost taxpayers an average of $145,216 each, not including land and infrastructure. In total, 461 were built in the Baton Rouge, Lake Charles and New Orleans areas.
A 2013 state audit found that the cottages cost at least $53 more per square foot than similar homes built by nonprofits, due in part to federal requirements like steel framing and accessibility standards. Auditors also flagged construction deficiencies at several sites, and noted that only 361 units were occupied when the grant officially closed in 2012 – years after most storm victims had already found other housing.
But critics say the program still failed long-term solutions for those uprooted when the water came rushing. Steve Ragan, who led post-Katrina rebuilding efforts in the Lower Ninth Ward with Brad Pitt’s Make It Right Foundation, said the cottages represented a step up from trailers – but not a long-term solution for communities.
“One of the concerns with Katrina cottages was that, as permanent housing, they weren’t going to create much property value,” Ragan said. “Most people don’t want to live in a house smaller than 600 square feet, and the cost per square foot is often as high or higher than a larger home, especially when you need specialized utilities or appliances. They can be harder to maintain, harder to sell, and they don’t create the same kind of equity.”
Take the Hidden Cove subdivision, which was the seat of 42 cottages constructed in Baton Rouge. According to public assessor records, a sample of 16 Katrina Cottages in the subdivision yields a median market value of $106,000, well below the Louisiana average of $212,000.
Ragan’s group took a different approach, constructing more than 100 sustainable homes designed by world-renowned architects, with solar panels and energy-efficient systems.
“People assumed that solar belonged in luxury housing,” Ragan said. “But who benefits most from lower utility bills? Poor families. In New Orleans, the average electric bill was about $300 a month. If we could bring that down to $25 or $50, it made a massive difference in affordability.”
Eventually, Ragan said that the homes were so efficient that owners would even receive credits on their bill.
The cottages’ legacy is complicated. While they provided stability for some families, delays, high costs, and design flaws meant that the program never scaled to meet the need.
Auditors concluded that Louisiana’s $74.5 million grant was almost entirely spent – 99% of the funds obligated – but not always effectively. Construction stretched years past deadlines, contracts faced penalties, and in some cases families had to move out because of unresolved deficiencies.
“By the time the units were completed, many of the hurricane victims for whom the units were intended had found other housing, and many of the units that are being completed in the later parts of the projects have had to be made available to families other than hurricane victims,” the Department of Homeland Security said in the audit. “In some cases, the states have not yet found occupants for completed units.”
