For Katrina Victims, a Rocky 'Road Home'

Aug. 28, 2007 — -- After Hurricane Katrina ravaged New Orleans and the Gulf Coast, President Bush promised to "do what it takes" to bring swift relief to the devastated areas and help storm victims rebuild their homes and their lives.

But, two years later, an ABC News investigation has found that the main government program designed to bring Louisianans home and help them rebuild is in big trouble. Tens of thousands of Katrina victims in the state have yet to receive any money from the Road Home grant program -- and it's not clear if some of them ever will.

For many of the 184,000 Katrina victims who put their hopes in the grant program, the Road Home has been paved with insult, frustration and bureaucracy. Only 44,000 checks have been distributed, and the director of Louisiana's disaster recovery unit warns that some 60,000 families may not get paid at all unless the state gets billions more in federal aid.

"It's been a nightmare," said Brenda Chipanelli, whose home was destroyed during the storm. Chipanelli and her husband, Chip, applied for Road Home grants to repair their house, but have not received any money from the program despite numerous phone calls, e-mails and visits to the program offices.

But while the Chipanellis and many others like them struggle to rebuild their homes, the private contractor that administers the Road Home program has been doing just fine. ICF International has been paid $300 million so far to administer the grants.

The company's top three executives were paid more than $2 million in bonuses last year.

"I'm concerned that New Orleans is running out of time," Chipanelli said. "I'm sorry, we need the money for the city. I mean, we really do."

Bureaucratic Delays

The Chipanellis told ABC News that they have been subject to endless delays and forced to jump through dozens of bureaucratic hoops to get the Road Home grant money. Brenda Chipanelli said she faced 60 steps required by Road Home, including having her photograph and fingerprints taken – which many call insulting. Under pressure from critics, the program has reduced the number of procedural steps applicants must take to 42.