Diocese Receives State Bond Funds for Ida Rebuild

Like many in the path of Hurricane Ida, the storm left unprecedented damage to the property of the Diocese of Houma-Thibodaux and its church parishes, schools, ministries, agencies, and affiliated entities across Lafourche, Terrebonne, and Jefferson parishes. The extent of the damage to diocesan facilities far exceeded the limits of commercially secured insurance as it related to this “wind” related event. For clarity, the diocesan policies for all other perils (fire, theft, physical damage, etc.) provide for full replacement cost coverage. However, wind-related events are covered under a separate set of parameters and much like wind deductibles on homeowners’ policies, the wind limits are meant to adequately cover a "worst-case scenario.” Unfortunately, Ida’s impact was beyond even the actuarial calculations for a major storm, touching every part of our diocese with severe damage that exceeded $150 million in damage.

The Federal Emergency Management Agency (FEMA) is providing relief for the out-of-pocket expense over and above the policy wind limits. FEMA provides for this assistance on a reimbursement basis and thus, work needs to be approved, performed, and paid for before receipt of payment from FEMA. To facilitate this work, the diocese has received approval through the Louisiana Community Development Authority (LCDA) and subsequent approval from the Louisiana State Bond Commission, a request for up to $95 million in funds. Additionally, approval from the Holy See in Rome was obtained to proceed.

On August 8, 2023, representatives of the diocese, the lender Regions Bank, and bond consultants and attorneys gathered at the Diocesan Pastoral Center for the acceptance of the initial $32 million in appropriated funds. This funding will not require any encumbrance of property or assets of the diocese. It was secured strictly by the obligated projects and repayment is made with the reimbursements from FEMA. Funds will be drawn from bond proceeds to pay for facility repairs and once reimbursed by FEMA, the funds will then pay down the debt. This is the same structure used by other local municipalities and school systems to provide funding for their rebuilding efforts. The process of rebuilding is taking years to complete. The work and documentation required for FEMA reimbursement is immense, but is necessary to return all of our facilities to their pre-Ida state. We continue to prioritize church and school facilities with a focus on protecting our property from potential additional damage.

Questions can be directed to Bill Barbera, Chief Operating and Financial Officer of the diocese at 985-868-7720, or via email at [email protected].