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HUD to pay $62 million to La. homeowners to settle Road Home lawsuit

The U.S. Department of Housing and Urban Development said Wednesday that it will pay as much as $62 million to 1,300 Louisiana homeowners to settle a lawsuit alleging that a program that awarded federal grants to rebuild after hurricanes Katrina and Rita discriminated against African Americans.

The lawsuit was filed by two civil rights groups and five homeowners, who maintained that the $9.8 billion Road Home program — called the largest housing recovery program in the nation’s history — relied on a formula that discriminated against thousands of African American homeowners.

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