Urban Functionality and Extreme Natural Disasters; The New Orleans-Katrina Case for New Federal Policies and

DRAFT: Please do not quote or publish without authors ’ permission. This paper addresses the federal government’s historic and current programs and policies and how these policies encourage, and have encouraged, urban growth in areas having relatively high risk potential for recurring natural disasters. While FEMA and local authorities respond to emergency situations during crisis events, this paper explores the concept that such disasters, and additional emerging loss of life and property, could easily be avoided through changes in current federal government flood insurance programs, grants, flood “protection ” programs, loans, loan guarantees and federal banking policies that subsidize and/or encourage high risk urban development, which otherwise would not be funded or insured by private enterprise or priced much differently then less risky areas. Various federal programs and policies are considered together with recommendations. A cycle of federal programs which perpetuates urbanization of high risk areas (hurricane, flood, and earthquake areas) is offered as well as insight on residential value trends of previously flooded areas (high risk areas) highlighting even more that building or rebuilding in areas which place the public or public tax payer funds at greater financial risk