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September 12, 2007
Plumbers Clogged up in New Orleans
I came across the following blog today, and I almost stood up and cheered for those attempting to get things changed in Baton Rouge, La. No matter how poorly the post-Katrina emergency was handled by the Feds, the state of Louisiana now seems intent on shooting itself in the foot -- then reloading to fire again. Read this blog and let me know if you can see any justification for refusing to let out-of-state plumbers work on projects in New Orleans. Maybe I'm missing something here, but it makes absolutely no sense to me. It seems like the first priority should be to get people back in their homes -- or in a new home, if necessary. (Please note: The opinions expressed in the blog below are Mr. Liber's -- but they sound about right to me.)Marjie
Hurricane Katrina Follies in Louisiana: KB Homes Not Laughing
Posted Sep 5th 2007 4:35PM by Sheldon Liber, AIA, at Bloggingstocks.com/
Amazing as it might seem, the State Legislature of Louisiana has seen fit to recreate Yossarian's nightmarish experience in Catch-22 by killing legislation that might have helped house some folks in New Orleans in a more expeditious fashion. You might have read or heard that KB Homes (NYSE: KBH) has been trying to develop various projects in and around New Orleans since soon after Hurricane Katrina departed.
Clearly KB had more than altruistic goals in mind but it was quick to act, seeing the Katrina tragedy as an opportunity to help a community crushed by the lack thereof.
KB Homes CEO Jeff Mezger said in a recent article in Fortune Magazine: "It's taking longer for the city to rebound than we expected," he says. One unusual problem: a severe shortage of plumbers. KB learned after it arrived that state law requires plumbers to complete more than four years of training before obtaining a license, and that Louisiana follows different plumbing codes than most other states. That means KB effectively can't bring plumbers from Houston, where it has an extensive contractor network.
If you know anything about Louisiana's political history, it might not surprise you at all to learn that after KB Homes sponsored a bill in the state legislature to loosen these arcane requirements, the state's Plumbing-Heating-Cooling Contractors Association promptly squashed it dead. Never mind that thousands of locals needed housing, and the workers pouring in to help rebuild the city needed housing. Nope. It was business as usual.
If I were President Bush, being hit with so much flak about the government's ineptitude in helping the city get back on its feet, and I heard about this story, I would have been in Louisiana the next day, having a photo opportunity in front of the State Capitol and making a lot of noise about this short-sighted, bureaucratic nonsense.
There is still time to express your outrage if you like: weblegis@legis.state.la.us or eps@legis.state.la.us and websen@legis.state.la.us. To contact governor Kathleen Babineaux Blanco:
E-mail the Governor + 866-366-1121, or write Office of the Governor, Attn: Constituent Services, P.O. Box 94004, Baton Rouge, LA 70804-9004.
You can also forward this story to as many people as your time and energy permits.
All the while KB Homes still plugs along, although it has withdrawn from many projects. The stock closed yesterday at $30.77, approaching its 52-week low of $28. When your gut is wrenching (to the degree that this story outrages you) from the pain, you may want to look at KB as a long stretch value play. It pays a nice dividend yield 3.3%, to tide you over during the "storm" and all of its metrics are in the bargain basement.
Sheldon Liber, AIA, is the CEO of a small private investment company and the principal for design and research at an architecture & planning firm.
Posted by Marjie O'Connor, HGTVPro.com Staff at September 12, 2007 4:39 PM
Comments
i just moved to new Orleans from north carolina and I've had a time just trying to get my plumbing LIC.i've had to do stuff under the rader to make a living for me and my family.i'm trying to introduce some environmentally safe plumbing but it's kind of hard to advertise.THANK YOU GUYS,&GIRLS OF HGTV & ALL OTHERS
Posted by: Joshua at September 18, 2007 9:39 PM
I am a resident of Louisiana and have lived here all my life, which is 66 years. Politics here stinks and always has. It is not what you know but who you know to get contracts with the State. I worked in community action for years and also COA and as the Planner for those agencies, I know first hand how it works. I do not know what difference it makes as to how many years a plumber has trained before getting his license as long as he can pass the licenseing test. I am sure there are ways to get around this by hiring several Louisiana licened plumbers and usng the contractors plumbers as "helpers". It has been two years since hurricane Katrina, and still, people are without houses to live in. This is totally unacceptable for our state to put these people in such a situation. After all, this was and Act of God with vast devastation and loss of life, haven't those people suffered enough? I wonder how the next governor will handle this situation......I love my state, but sometimes I am ashamed of the political scams and idiocracies that take place within our state legislature.
Posted by: Jchadberg at September 18, 2007 10:17 PM
Two years ago I went down to New Orleans to help out and ran into the same problems.
I am a Calif, State Lic. Electrician and I flew down there on my own time and expense. The electrical contractor I went to see put me to work right away. While on the job, the day after I arrived, some inspectors came by and said if I didn't have a Louisiana, State Lic. by the following day they would throw me in jail.
The contractor told me not to worry about it, but I wasn't willing to take the risk...I came back to Calif.
Posted by: Tom Keith at September 18, 2007 10:32 PM
this is not right
Posted by: lashaw at September 18, 2007 11:37 PM
I can better understand why outside plumbers who do not have specific, special training and experience working below sea level would be prohibited from below sea level work assignments better that I can see why they want to rebuild a city below sea level. I can't understand why they wanted to build the city below sea level in the first place. Why do they not make most of the Katrina destroyed New Orleans into a fabulous watersports park and bring some tourist dollars into the city? Make money on the area instead of wasting billions of dollars to return it to it's original vulnerable condition!!!
Posted by: John Shelton at September 19, 2007 2:12 AM
It might be due to the fac that being below sea level you have to do things a bit differntly? Also, if there is a problem and it was contracted work who can you hold responsible if they are not in state? I can see the percautions but it should apply across the board to all peronal, but then.... but if you were to look it might be graft.
The state we have seen and anyone with a glimmer of ablity to check history can see it is corutption at its best.
Posted by: cw at September 19, 2007 8:12 AM
Well I don't exactly agree with what is being said. Most states require licensure and according to Louisianna's Construction Law, they do have reciprocity with several states. The tech portion of the exam would be waived and in some cases the law portion as well. See exerpt from the appropriate statute:
�2164. Reciprocity
Any applicant holding a license in good standing in a comparable classification in another state recognized
by the respective agency as a reciprocity state may have the trade portion of the examination waived
upon written certification from that state in which the applicant is licensed. The business law portion of the
examination and the provisions of R.S. 37:2156.1 shall not be waived. Applicants shall comply with all
other licensing requirements of this state; however, for good cause, the board may waive any other licensing
requirement.
Acts 1989, No. 559,
These laws, albeit a pain in the know what, are there to protect people from disasterous situation becoming even a more disasterous one. With structural issues and non-licensed contractors and/or contractor fraud. In my opinion the people involved are not applying themselves hard enough and maybe just looking to make quick money. Someone determined and with the proper intentions should be able to become licensed in a short 2-3 month span.
But this is just my opinion.
Posted by: Florida Plumber at September 19, 2007 8:35 AM
All of those "precautions" make sense for an electrician who may be relocating to the state on a long-term or permanent basis, but in cases like the one posted above, where a licensed electrician from another state was threatened with jail, even though he was working under the auspices of a local electrical contractor, all I see is official concern for the licensing fee pipeline - money in someone's pocket - SOP for NE.
Posted by: JoannBrosnan at September 19, 2007 1:29 PM
This area has such a bad reputation for corruption - I cannot say I am surprised by this. The priorities by local and state officals appear to be to ensure as much money as possible stays in the pockets of the local powerbrokers.
Maybe one of their reasons for doing this - is they are afraid that if people from out-of-state come in and gets things working - that the local voters will stop accepting the same old BS (paybacks and kickbacks) as the only way of getting anything done?
Posted by: David Elswick at September 19, 2007 1:48 PM
Respectfully, why should a licensed plumber from another state have to wait an additional 3 months to start work in a city that needs plumbers yesterday? Also, it's pretty clear from what you posted that the city has the power to allow licensed plumbers (and other trades) to start immediately, but they're not doing it, presumably because they're beholden to the local unions.
New Orleans has a long, proud history of inept, corrupt government. It's unfortunate that things only seem to be getting worse now.
Posted by: Charlie at September 19, 2007 2:09 PM
Marjie,
I am a Master Plumber in Louisiana. I don't see things the way you do. The only shortage of Plumbers is the ones that refuse to work for nothing. If KB wants to correct some of the problems why don't they go after the insurance company's who charge us so much just to be able to open the doors to go to work. KB can say what they want but the bottom line is money, the bigger the builer the tighter they are with the money and the profits are in there pockets not ours. I have a friend who is employed by a large home builder and her job is to find subs that are the cheapest around they don't care what the quality is just get it done. The sanitary codes are in place for a reason in the late 1800's and early 1900's people were droping like flies due to unsanitary conditions. My work load is very light, where is the work? I also know of 2 MP who closed the doors due to lack of work!! There is close to 4000 homes for sale in ST. Tammany Parish alone and the majority of them are new. I would also like to make a comment about the N.O. Permit Dept., it took me 7 months to get my gas license renewed, WHY?
Posted by: Warren at September 20, 2007 12:44 AM
I dont understand why they government couldn't use the area below sea leavel to be a land fill for all the trash from katrina ! Fill it up re plat it and build on it killing to birds with one stone !
Posted by: David Spencer at September 20, 2007 12:51 AM
I wonder how well KB stock would do if they are allowed to bring in illegal aliens to rebuild New Orleans. On paper it should look really good and send the stock zipping up to a ?? year high. I'm sure that the KB executives will sell at that point just before the complaints about the defects in the homes start pouring in. By the time the class action suit is filed the will no doubt be paupers living on a nice Carribean Island in a house owned by a family member. Meanwhile, the homeowners of these junk houses will get pennies on the dollar and the goverment will probably have to bail them out instead of fixing dikes because the loans are in default because they owe the morgage co. more than the junk house is worth. Go ahead let the KB executives rape your trade license program.
Posted by: Redwood at September 20, 2007 1:40 PM
AS A RESIDENT, I have to agree with Marjie.
I have been trying to attempt building a new residence for 2 yrs. Although I've had problems getting all aspects of my work done(ie-septic,framing,plumbing). It took me 6 months to find a plumber (lic in LA) to do my inslab work, and that was done on a favor, if not I would waited much longer.
Clearly, the LA legislatiors need to get thier heads out thier xxx's and come up with a solution.
Posted by: Tony at September 20, 2007 8:00 PM
Here in Ca. as a Master Plumber and working in housing and commercial plumbing KB homes was one of the first to try going non-union and bring in any company that would hire non-union even if they are not qualified. If the plumbers are to come from Texas more than likely you would need to check these people training and legal status
Posted by: Mel at September 20, 2007 10:42 PM
AWWWWW,
poor KB. Just because they can't come in and change the rules to suit them, they are going to whine. 4 years is a standard apprenticeship, so I fail to see the problem there. Why would a builder want a lowering of standards? Reputable builders want to raise the standards because it eliminates the fly-by-nighters. I guess KB figures the lower standards will benefit them, because it doesn't benefit the consumers.
Posted by: jjbex at September 20, 2007 10:51 PM
The problem is politics as usual in LA. If you want to work there, build there, get contracts etc. be ready to grease the palms with "dead presidents". Unless the bribes are paid, the job won't get done. LA. politicians don't care about their people...just what money they can get under the table. A company I have worked with was asked if they wanted several "local contracts" if so, then they would have to come up with the green. This is not only illegal, immoral, etc., it is typical of the LA. political system.
Posted by: Dennis at September 20, 2007 10:52 PM
We are below sea level, but it was below sea level in the 1700's also. New Orleans has a proud history and was here before America existed and we can't make 85% of the city into a water park. Every area has its issues. The port, oil and gas, and seafood industries are all vital to this country. All of our polititians and laws are not corrupt. Yes, we have dishonest people here just like everyone else. Each area has their own requirements for contractors based on the needs and standards of the area. When a plumber goes from N.O. to Texas or another city they must pass certain required test. We have enough illegals here working and why should we change our laws to suit the profits of a company and its executives. The plumber that came from out of state would have been fine working for a local company as a helper until he could get his license. People, don't believe everything you read...there are always two sides to a story.
Posted by: Susan at September 23, 2007 10:39 PM
Before people with no understanding of plumbing go off half cocked about how horrible this is (and yes I live in New Orleans) perhaps you should try and do a little research as to WHY our plumbing codes are different then the rest of the country.
Posted by: Anonymous at September 24, 2007 2:52 AM
GOD BLESS THESE OFFICIALS !! it appears to me that these guys are attempting to maintain the high standards that the citizens of the region deserve! You don't have to be rocket scientist to see that KB comes rolling into town - blinded by dollar signs littering the highway and the sheen of sweat from illegal aliens backs - and figures "we'll slam these houses up in no time, who cares if they are pieces of junk, we'll look like saviors putting people back in homes!"
Next thing you know, Washington bails these homeowners out, the Democrats are getting blasted for giving "handouts" to these people, the illegals ship their pay checks back to Mexico - propping up THAT economy, KB drags the lawsuits out for years, the CEO and Cronies stuff their pockets and run....
And the Union Man is destroying this country? give me a break....
Posted by: Danny at September 27, 2007 11:01 AM
The article fails to mention that their "Big Plan" to LOOSEN REGULATIONS" included doing away with plumbing licensing board. That's right no license needed to operate as a plumber in the state. The license process is in place to protect the citizens water supply and the consumers investment in their homes. KB Homes is wolf in sheeps clothing
Posted by: Stevens at October 3, 2007 3:25 AM
My husband and I own a small plumbing company in the New Orleans area. We have been called out on many jobs to fix plumbing that contractors did themselves to SAVE MONEY-not because of a shortage. Yes,the wait was 6-8 weeks right after Katrina and lasted until this summer. Now its 1-2 days to get service.
I called 6 of my fellow plumbing companies to see if they are busy. They said they are only getting 1-3 calls per day.We did not even receive 1 service call today. There is a lack of work to support the LOCAL plumbers.People just don't have the money to rebuild yet,and when they do, all of us local plumbers will be able to take care of them and still be able to suppot our LOUISIANA families.
LA licenses protect LA residents.KB is going to blame the plumbing trade for leaving LA instead of reporting that they realize the mistake of building 3000 NEW homes in a city with such a bad economy. If we are to blame, then your welome! We saved you alot of money after all.
Posted by: Danielle at November 29, 2007 12:07 AM
As a mechanical contractor from a nearby state with Louisiana plumbing and mechanical licenses, there was little resistance to our firm doing large projects in the northern part of the state. When we took on contracts closer to Baton Rouge and New Orleans, primarily union controlled areas, the requirements to have multiple Louisiana licensed (union) master plumbers on the jobsite became more stringent. To get reciprocity for our own master plumbers was next to impossible. We had no resistance in doing HVAC work. Like KB and many other contractors, we pursue work in other markets now.
As I understand it, the proposed legislation was not to do away with the Louisiana licensing requirements, but instead to shift oversight from the protective union dominated Plumbing Board to the Board of Contractors that all the other trades are regulated by.
Posted by: Robert at December 12, 2007 4:33 AM
sorry but the board is more non-union than union
Posted by: Terry at January 7, 2008 9:53 AM
So many problems with New Orleans, it is a wonder to me how people even stay here. I gave it one more try, for hope. New Orleans could be such a beautiful city, but it is dirty, the bad streets, bad roads, polution, dirty waters and high taxes. The schools are horrible. For what? Oh! Rent is cheaper yeah right, cost of living is low?? Yeah right! If you like living in s--t, roach infected city, where rent is the same as any where else and nothing ever gets done.
The inspections are a joke, the sub-contractors are a joke, very few locals know what they are doing I am talking about New Orleans. Then the good ones are giving outrageous prices and then can you even find one. Never mind most of the subcontractors from around the area are smart enough to stay out and of course that doesn't help get the work done right. The profits are barely enough to eat, with all the complications and ungrateful people. Never mind one bad client can put you in the streets. Then trust the justice system here, yeah right.
Locals know the problems and what do they do?? Nothing, they keep placing the same idiots into office.
So in my opinion who stays in New Orleans?? You must be a looser or biggest idiots ever.
Never again, the sooner New Orleans disappears with the water line the better. All the billions in taxes the American Citizen would save, would be enough to save the world. This city is nothing but a money pit for the ungreatful s--t hole of the nation. I grew up in New Orleans and I never want to come back. Over two years wasted in this s--t hole. If you are smart stay away.
Posted by: Lewis at March 10, 2008 1:25 PM

