That's kinda it.you will appreciate the same situation on a much smaller scale happening in Fredericton. Their river floods every year and has had several horrible instances over the past 50 years. They did nothing to help in case of another flood situation and it finally came.
Mind this is a much smaller situation than NO. Only a few hundred homes and businesses ruined. No deaths. I still find it odd though, that people would build million dollar homes in a guaranteed flood zone and then look to the government for assistance.
In my hometown (Windsor, NS) we had a brief argument once upon a time about certain areas where flooding occurred pretty frequently. The residents blamed the town for not putting proper infrastructure where their homes were, and the town told them to sod off because they bought their homes there because they were cheap because they were built in a low valley that was below sea level and subject to unavoidable flooding.
I think the town's response is basically criminal, delinquent at least. They should have either declared the area unsafe to live in (the whole place was a bog, so the bugs were insane and the kids were sickly, the repairs were making the people their poor and their insurance was ridiculous, and no one will buy their homes because they constantly flood) and kicked everyone out, or done something to improve the situation. Since both options are basically impossible because people will claim it's their right to have the home and nothing that was done could foreseeably help, what's the town council to do?
I maintain the town should have said "fine, we'll give you parity on your house and bulldoze them and declare the area a nature sanctuary." I can see the hurt feelings, but it's the only sensible action. And they should have added "if you choose to stay it's of your own volition and we accept no responsibility for your health, costs, actions, etc."
Meanwhile further up the valley in Kentville flooding happens on their rivers every year. So the people living along the rivers set up a community group to build up the flood wall dykes along the rivers. They did it themselves with a town permit (which the town comped) and did it for free.
As for Fredericton... I feel bad because the flooding this year is definitely particularly bad. But that's what insurance is for. If you've taken proper precautions to protect your home from damage and it still gets damaged... that's what insurance is for. The government is not responsible for comping you for your own failure to look after your own investment. And when the government does comp people, it creates a dependency. And engenders a false sense of governmental responsibilities.