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FEMA rejects Jefferson plea on Katrina loans

3 years ago February 17, 2012 Feb 17, 2012 Friday, February 17 2012 Friday, February 17, 2012 10:23:25 AM CST in News
Source: Associated Press

GRETNA- Federal officials have rejected Jefferson Parish's appeal of the refusal to cancel $55 million in disaster loans the parish received after Hurricane Katrina.

The Times-Picayune reports Parish President John Young says Jefferson will consider its options for further action.

But the letter from Elizabeth Zimmerman, deputy associate director of the Federal Emergency Management Agency, told parish officials the notice represented a final decision.

Under terms of the loans, FEMA is authorized to forgive loans for applicants that had an operating deficit during the three fiscal years after Katrina. FEMA argued that Jefferson was ineligible because the parish had a cumulative operating surplus of more than $100 million during that period.

Katrina struck in August 2005.

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