Katrina victims could live in luxury apartments if they afford to buy by Corina Ciubotaru

After hurricane Katrina hit in 2005, the U.S. authorities took immediate action and passed a bill that created tax deductions for those contributing to the area's recovery and development. Those wanting to build hotels and casinos were excepted from the rule of deductions, but the additional businesses that function around them, such as attached hotels, are still able to benefit from the lowered tax. This measure is very beneficial for all wanting to make money out of this area. Luxury condos have started to appear in Louisiana, Mississippi and Alabama and provide great living conditions for those who are able to pay up to $1 million. But the problem here is that the people in most need of help, who have seen their house wiped off the face of the Earth, can not afford such a hefty price if they live in a caravan. They don't even benefit from this tax reduction, because the rule doesn't apply to those that buy houses or land for personal use. Real estate developers will be able to claim a first-year depreciation deduction equal to 50% of the value invested in the property and they may receive some money for demolition and cleanup, also from the government. Help for a devastated region and its residents has turned into big business for real estate companies. It's not even clear how the boundary of the affected area was set and why it got as far inland as Tuscaloosa, where Katrina's effect was diminished. The worse part is that money for the builds isn't actually put to use entirely: most of the projects that received funding haven't been started yet, after two years from the tragic event.

related story: http://news.yahoo.com/s/ap/20070813/ap_on_re_us/katrina_luxury_condos;_ylt=Aude1GDHUHc0lMSRAphOzmes0NUE

by Corina Ciubotaru for PocketNews (http://pocketnews.tv)

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Edited by Zuzana Tylkova