THE ROAD HOME PROGRAM A Brief Overview

INFORMATION SOURCE All information in this presentation comes from the Road Home’s website. www.road2la.org

THE NEED Hurricanes Katrina and Rita devastated South Louisiana, 123,000 homes suffered major or severe damage 8,500 homeowners in Calcasieu, Cameron and Vermilion parishes are estimated to be eligible for the program.

THE LARGEST SINGLE HOUSING RECOVERY PROGRAM IN U.S. HISTORY It is funded by the US Department of Housing and Urban Development (HUD) through its Community Development Block Grant (CDBG) program.

UNINSURED LOSSES All private insurance proceeds are deducted 100% from the homeowner’s award (less legal fees) All flood insurance proceeds are deducted 100% from the homeowner’s award All FEMA Individual Assistance is deducted 100% from the homeowner’s award

OTHER FACTORS Money received (gross) for sale of house deducted 100% from award Elevation assistance – deducted Cost of repair – Based on basic livability standards

4 forms of assistance Compensation grant Elevation allowance - $30,000 maximum Affordable Compensation Loan*** Additional Mitigation Grant - $7,500 maximum $150,000 IS THE MAXIMUM AWARD

Homeowner Definition Home substantially damaged Mobile homeowners qualify whether or not they owned the land Duplex owners qualify even if they rented out one side Bond for Deed / Rent to own – only if become owners before get the benefits Sold home since the storm – yes $

CHOICES FOR HOMEOWNERS Stay – (repair or build anew) Buyout and relocate – sells home to state and moves into another house they buy in Louisiana Sell – Sells home to state and leaves state or doesn’t buy a new home.

REPAIR / STAY If no flood insurance or no private insurance - penalty = 30% of grant Homeowners sign a legal covenant that they will maintain owner occupancy of the home for at least 3 years after house is finished. Home is elevated if required by the Advisory Base Flood Elevations Insured against floods and hazards.

REPAIR/ STAY YOUR MORTGAGE COMPANY WILL HOLD THE MONEY AND PAY IT OUT AS REPAIRS ARE MADE TO THE HOUSE, LIKE A CONSTRUCTION LOAN, UNLESS LESS THAN $10,000.

RELOCATE SAME AS STAY

Leave Louisiana 40% of grant award “penalty” Still can get up to $150,000 65 or older (12/31/2005) do not suffer 40% penalty Also 30% penalty if no insurance

ACL Affordable Compensation Loan Program EVERYONE referred to us is eligible for this program. 80% of parish median income – CDBG For this criteria look at “low-income” at http://www.huduser.org/Datasets/IL/IL06/la_fy2006.pdf

80% Median Income

ACL Available to those who stay or relocate Must agree to live in the house and keep it insured for five years after house is finished. If move earlier, pay back loan on pro rata basis. If stay five years, loan is forgiven. Up to $50,000

$7500 Mitigation This is available even if can’t qualify for other benefits For other efforts to prevent future flooding other than elevating the house e.g. elevate AC unit, protect windows, strengthening doors Road Home has a list of projects and how much they will give

ASSIGNMENT People can assign their rights to a buyer of the home before benefits are paid Special form – bad information Assignment can only be once Original homeowner must apply but both must provide info to Road Home Both buyer and seller would have to be financially eligible to get an ACL

ASSIGNMENT After the benefits are received, homeowner can sell house to buyer who assumes the obligations of the covenant.

Statistics – 2/26/07 110,605 applications filed 18,574 decision have been made by homeowners 15,637 – Option 1 2,451 – Option 2 486 – Option 3 1,871 closing held (2268 in February)