Reimagining Cities-Disrupting the Urban Doom Loop

Overcoming an Episodic Doom Loop: New Orleans In 2005, Hurricane Katrina swept through the state of Louisiana, devastating coastal communities and cities like New Orleans. The disaster flooded 80% of the city and destroyed over 182,000 homes and public infrastructure across the seven-parish metro area. 54 Katrina was the deadliest and costliest storm in U.S. history, causing over 1,800 deaths and approximately $81.2 billion in total damage. By the end of June 2006, only 171,000 residents remained in New Orleans, just 35% of the city’s population in 2000. 55 By the end of 2007, re-population, public school enrollment, housing demolitions and new construction were picking up pace in the city. Though the Great Financial Crisis stalled the recovery, federal housing and infrastructure rebuilding funds continued

to flow, buoying job growth and cushioning New Orleans from the worst of the Katrina recession. 56 As an example, favorable tax provisions 57 in the affected area attracted outside private capital sources through tax credits and bond financing. The devastation along the coast was so extensive that residents, businesses and potential investors were hesitant to act without strong signals and actions from the government to inform their decisions. 58 While philanthropic funds, insurance payouts and charity helped jump-start New Orleans’ recovery, it was the effectiveness of substantial federal, state and local funding that dictated the pace and quality of the city’s rebound.

54 Liu, Amy and Allison Pyer. “An Overview of Greater New Orleans: From Recovery to Transformation.” The New Orleans Index at Five, Brookings. 2010. 55 Liu, Amy. “Building a Better New Orleans: A Review of and Plan for Progress One Year After Hurricane Katrina.” Brookings, 2006. 56 Liu, Amy and Allison Pyer. 57 https://www.congress.gov/bill/109th-congress/house-bill/4440 58 Liu, Amy. “Building a Better New Orleans.”

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