New Orleans Mayor Ray Nagin has unveiled a plan to rebuild following last year's devastation by Hurricane Katrina, saying residents will be allowed to reconstruct their homes in all parts of the city.

Nagin's announcement followed public consultations on rebuilding proposals made by an advisory commission in January.

The commission had suggested converting parts of ruined neighborhoods into parks and imposing a ban on building permits in some areas.

Nagin says he rejected such ideas, which were criticized by many residents. The mayor says residents can now make their own decisions about reconstructing their homes.

But Nagin warned that some New Orleans neighborhoods will remain prone to flooding, and people who rebuild there will do so at their own risk.

Nagin's revival plan also calls for restructuring New Orleans' government for greater efficiency and improving public transportation. He is using the plans as part of his campaign for re-election.

Some information for this report was provided by AP and Reuters.