Pure corruption on the part of whichever hotel owners had the in with the government.
If first hit me how bad problem-solving skill has become during Katrina. McDonald's and some other food chains could've fed those people if put in charge.
I think that GSA rates for the area are lower, so some type of services (cleaning, pools etc) may have been included.
Or we could just recognize that this city works best when two people can hand shake deals, with no oversight.