In The Clear: Title and Ownership Barriers to Recovery, Restoration & Relocation Dan Rees, Executive Counsel OCD-DRU

Homeowner Program Eligibility Criteria Owner occupied at time of disaster event Damaged address was applicant’s primary residence Located in FEMA IA disaster-declared parish Suffered major or severe damage Eligible structures include single-family or duplex homes; and mobile/manufactured and modular homes. 2016 FLOOD RECOVERY ONLY: Household did not have structural NFIP or private flood insurance policy at time of the flood

The Road Home Program THREE COMPENSATION OPTIONS: OPTION 1 -- Stay in your home OPTION 2 -- Purchase another home in Louisiana OPTION 3 -- Sell your home and choose not to remain a homeowner in Louisiana

Buyouts/Acquisition - Title Insurance   Protection against loss arising from problems connected to the title of property. Title insurance is only issued buy outs OCD-DRU pays the cost of the title insurance. Private title insurance companies issue the title insurance on all properties sold to the Louisiana Land Trust to protect the State against lawsuits challenging property titles. ISSUE: Standard title policies pay claims based on fair market value at time of claim, not amount paid for property (PRE-DISASTER VALUE)

Road Home Program Title Verification The Road Home Program VERIFIES Title through Tax Assessor Records. The Road Home Program ONLY researches Title if Tax Assessor Records are not clear. For Option 1 - The Road Home Program DOES NOT check for liens against the property title

Tax Assessor Website

DOCUMENTING OWNERSHIP   Rehab or Reconstruction What evidence is adequate to establish ownership? PROGRAM RISKS & CONCERNS   Full Title Search presents significant time delay and costs v. Documenting eligible status for homeowner program

DOCUMENTING OWNERSHIP SOLUTIONS   Property Tax Rolls Accessible from taxing authority – often via internet Match applicant’s name prior to disaster event and at time of application Mortgage Certificate Protects against foreclosures during project Can be requested by program staff Requires legal property description Abbreviated Abstract Full Abstract (if above does not demonstrate ownership)

HEIRSHIP PROPERTY ISSUE – SUCCESSIVE UN-OPENED PROBATE/SUCCESSIONS Requiring legal proceedings presents significant time delay and costs SOLUTIONS State Law Specific   Louisiana - Affidavits of Death, Domicile and Heirship and Documentation of ownership of deceased owner of record Demonstrates relationship of applicant to record title owner and Absence of will or testament that could change default succession rights Other states – Examine Joint Tenancy and other ownership structure issues What are default succession rights?

CO-OWNERSHIP OF PROPERTY ISSUE – REQUIRING ALL OWNERS TO EXECUTE GRANT DOCUMENTS OR FILINGS - Delay and expense of locating all owners to obtain signatures - Mechanisms where there are missing or unavailable co-owners SOLUTIONS - Does state law allow a co-owner to repair damage to property? - Allow applicant to participate in program under acknowledged disclosure of risk of repayment of funds if lack of signatures of co-owners causes interruption of project - Avoid program design which requires conveyance or mortgage record filings binding the property - Does state law allow a co-owner to administer disaster relief on behalf of all owners? RISK - Potential that legal mechanism interrupts completion of rehab/reconstruction (disgruntled co-owner, creditor of co-owner seeking partition of property) - Incomplete project means no national objective has been satisfied, funds subject to potential repayment to HUD - Any conveyance/property filings only effective against partial interest

OWNED HOME / NON-OWNED LAND ISSUE – OWNER OF DWELLING (STICK BUILT OR MOBILE HOME) ON NON- OWNED LAND Land lease or other rights to construction or move home onto land and maintain separate ownership of home QUESTIONS: Does documentation establish ownership of the home? Does applicant have right to re-construct or replace housing on the land? Does state law allow a co-owner to repair damage to property? Does the applicant want to re-locate home to another site (owned or non-owned)? Any URA implications?

Title and Ownership Barriers QUESTIONS? CONTACT INFO: DAN.REES@LA.GOV