On behalf of the City of Covington, Mayor Mike Cooper is pleased to announce the receipt of notice from FEMA for forgiveness of the city’s $1,800,900.00 Special Community Disaster Loan (SCDL). This loan was a result of the major disaster declaration on August 29, 2005, following Hurricane Katrina. The city was advised late yesterday afternoon in a letter signed by Mr. William Roche, FEMA Public Assistance Division Director, of the full cancellation of the original loan and all accrued interest.
Under the initial application submitted, Covington was unable to qualify for cancellation. Spearheaded by U.S. Senator Mary Landrieu, The Consolidated and Further Continuing Appropriations Act 2013 (the Act), was introduced and enacted into law directing FEMA to revise criteria for loan forgiveness. The Act enabled the city to resubmit application to include the additional fiscal periods. Based upon review of Covington’s cumulative operating deficit during the five year period analysis attributed to disaster related revenue losses, FEMA granted the city full cancellation of the loaned funds, as well as any interest accrued.
“This is great news for Covington! Our citizens will directly benefit as revenue may now be allocated to future needs and services in our community, rather than reserving money for loan and interest repayment of over $2.2 million to FEMA. I commend City Director of Administration, Gina Hayes and Finance Director, Alisa Faciane, who worked diligently to gather the pertinent information and submit the necessary documentation required by FEMA,” Mayor Mike Cooper.
“I thank Mayor Cooper and the City Council for their support and patience during this appeal process. Receiving forgiveness of this loan has been a priority of Mayor Cooper since he took office. He personally contacted and met with our congressional delegation over the past two and half years to request and encourage their support for complete cancellation. Mayor Cooper’s determination and perseverance has paid off,” Gina Hayes, Director of Administration.
FOR ADDITIONAL INFORMATION:
Gina Hayes, Director of Administration
(985) 898-4716
