Archdiocese denies overcharging FEMA for Katrina damages

By Peter Finney Jr.

The Archdiocese of New Orleans today denied allegations made in a federal lawsuit May 29 that it knowingly inflated property damage claims after Hurricane Katrina that resulted in overpayments by the Federal Emergency Management Agency to replace the former St. Raphael School and two residential buildings for seniors at Villa St. Maurice in New Orleans.

The “whistleblower” lawsuit was filed in U.S. District Court for the Eastern District of Louisiana against AECOM, a multinational engineering firm; Xavier University of Louisiana; Dillard University; the Archdiocese of New Orleans; and Randall Krause, an AECOM employee who compiled the damage claims.

The suit alleges that Katrina-related damage estimates to buildings owned by Xavier, Dillard and the archdiocese were inflated so that they would exceed a FEMA threshold that would pay for a new building rather than defray the cost of a simpler and less costly repair.

The two projects involving the archdiocese are the former St. Raphael School building, located on Elysian Fields Avenue near Prentiss Avenue, and two, multi-story Villa St. Maurice residential buildings for seniors in New Orleans. Villa St. Maurice is operated by Christopher Homes Inc., the archdiocese’s affordable housing programs for seniors.

The suit alleges the archdiocese received about $10 million more in FEMA funding than it should have for the St. Raphael building and about $36 million more for the Villa St. Maurice complex.

In a statement, the archdiocese vehemently denied the allegations.

“As residents of the Greater New Orleans area know, Hurricane Katrina was devastating to our community,” the statement said. “In the aftermath of this disaster, the Archdiocese of New Orleans received a significant amount of money from FEMA to restore the extensive damage incurred to property of the parishes, schools and social service ministries of the Archdiocese of New Orleans.

“Our finance office worked diligently and relied upon the knowledge and expertise of FEMA and their designated agencies and field representatives. Our staff was committed to working responsibly and being good stewards of the money received, and our documentation reflects that. 

“The questions surrounding this issue arising over a decade later were surprising to us. Every dollar of FEMA funds received has gone back into the restoration of parish, school and other properties to serve the people of the Greater New Orleans community. We deny the allegation that the Archdiocese of New Orleans knowingly conspired to submit false information. We have cooperated with the federal government’s investigation and will continue to work with them as we resolve this claim.”