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SECRETARY NAPOLITANO PROPOSES COMMUNITY DISASTER LOAN FORGIVENESS

Section: Community

Statement from Mayor C. Ray Nagin

SECRETARY NAPOLITANO PROPOSES COMMUNITY DISASTER LOAN FORGIVENESS

I am very pleased by Secretary Napolitano’s proposal to establish the procedures to forgive the Community Disaster Loans (CDL) the City received following Hurricanes Katrina and Rita. Having been immediately downgraded to junk bond status and escaping bankruptcy after the storms, this is an important next step for the City of New Orleans. Since 2006, my Administration and the City Council have had difficult discussions during the budget process about what steps we could or could not take pending the forgiveness of the CDL loans, and as a result, we have had to manage our city’s operating budget very carefully, all the while, trying to maintain an improved level of service for our citizens. While I know that the CDL forgiveness is a process and will not happen “overnight”, it is a comfort that we are on the path to a resolution of this very important issue. After only two months in office, I commend Secretary Napolitano and the Administration on their expediency and willingness to make the Gulf Coast thrive again.

C. Ray Nagin, Mayor

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