Free Republic

WASHINGTON — The White House officially rejected a plan that would have created a federal corporation to purchase and redevelop Louisiana homes damaged by Hurricane Katrina. U.S. Rep. Richard Baker, R-Baton Rouge, introduced legislation last year to create the Louisiana Recovery Corp. The panel would use treasury bonds to buy damaged homes on parcels to be repackaged and redeveloped. But Allan Hubbard, the chief economic adviser for President Bush, indicated in conversations with Baker on Monday that the Bush does not support the legislation, Baker said Tuesday. “It’s dead now,” said Walter Isaacson, vice chairman of the Louisiana Recovery Authority,...