1. THE ROAD HOME PROGRAM
A Brief Overview

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

3. 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.

4. 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.

5. 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

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

7. 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

8. 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 $

9. 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.

10. 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.

11. 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.

12. RELOCATE
SAME AS STAY

13. 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

14. 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

15. 80% Median Income

16. 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

17. $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

18. 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

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

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