[StBernard] LRA cost me $24,000 & called to say "I was lucky."

[Westley Annis]

Let me set the stage.... 
 
On 11/10/2006 my wife and I meet with our LRA advisor 
in Baton Rouge.  During the interview we were given a 
simple form to complete that would be used to 'HELP US' 
get an idea of what type of assistance we could expect 
from the LRA program. 
 
It covered the basics..... 
 
Estimated Pre-Storm Value, Insurance procedes, FEMA 
assistance, etc... 
 
Our neighbor's house sold for $138,000 several years 
before the storm, so that is what we listed as OUR 
pre-storm value. 
 
Take from that the Insurance procedes of $149,000 
and it appears that we would get nothing.  In fact I 
joked with the LRA advisor and said that it looks like 
"we owed them $11,000". 
 
She imediately corrected us and asked how did we come up 
with the Pre-Storm Value.  I told her about my neighbor's 
house and she said 'No, No, No."  
 
She said the Pre-Storm value was going to be based off of 
$130 sq/ft.  She then asked what the sq/ft of the home was 
(1705 living) and calculated the following: 
 
1705 (Living sq/ft) X $130 = $221,650 (Pre-Storm Value) - 
$149,000 (Insurance Procedes) = $72,650 Benefit amount. 
Estimate of course, but a good guideline to use. 
 
I asked her about the $130 sq/ft and she said that this 
was a number that the 'government' gave the LRA as an 
'easy & fair' way to figure the pre-storm value. 
 
Our house was on the DEMO list with the parish and asked 
if we needed to take the house off the list to still 
receive the benefit offer.  She said it did not make any 
difference.  We could continue to have the house DEMOED 
and it would not affect the buyout offer. 
 
FYI...  
When the LRA advisor began our interview, she placed a small 
recorder on the desk and recorded the entire conversation 
should anyone want to confirm what is being said in this 
letter. 
 
My son works as a framing carpenter in the Baton Rouge 
area and said the $130 sq/ft seemed high for pre-storm 
value and asked that we verify this AGAIN because he had 
someone who was interested in purchasing the house 'as-is' 
for $24,000. 
 
I called and emailed my LRA advisor to let her know about 
the offer to buy the house and wanted to confirm that the 
$130 sq/ft and the $72,650 Buyout offer on our property 
was correct.  She replied via email with the following... 
 
 
"I do apologize for any inconvenience, but I can't confirm 
an exact amount that you will receive from the program.  
Once the evaluator comes out and determine the pre-storm 
value of your home and access your damages, you will receive 
an award letter in 6-8 weeks and it will have in detail how 
much you will receive from the program.  One way, among others, 
they are determining the pre-storm value of your home is 
130.00 per sq.ft, if your home was over 51% damaged.  In 
deciding your eligibility, they will take the lesser of the 
two values minus what you received from your insurance company 
and FEMA for the structure of your damaged home. 
 
Thank You" 
 
We look at the facts...  We know our house has over 1700 living. 
We know that our house was over 51% damaged. We are being TOLD 
that the pre-storm value is being based on $130 sq/ft. 
 
We DID NOT take the offer to buy the house. 
We DID NOT take the house off the DEMO list. 
 
Still questioning the $130 sq/ft.  I had my father (who lived in 
Arabi) call his LRA advisor (in the Chalmette office) to see if 
she would confirm the $130 sq/ft.  She did.  
 
I also called his advisor to verify the $130 sq/ft.  She did. 
Mentioned something similiar to the other LRA advisor about the 
'government' telling them to use this figure. 
 
OK...  2 LRA advisors (from different offices) quote $130 sq/ft.  
Email letter (sent from road2la.org email address) says $130 sq/ft. 
 
Everything is done... All we have to do is wait. 
 
About a week later... Inspector meets us at the property and 
confirms over 51% damaged. Actually said it was 100%.
 
On 12/09/06 house was DEMOED. 
 
On 1/3/06 I get a call from the LRA Benefit Department telling 
me that my award has been calculated and my award amount is $0.00. 
 
She said... Pre-storm value was $147,000, Insurance procedes 
were $149,000, therefore we get nothing. 
 
I said something about being penalized for doing the right thing 
and keeping my flood insurance up and she said I was "lucky.  
At least I had insurance." 
 
I told her that it had nothing to do with luck.  For 27 years we 
had flood insurance and increased the coverage as the value of our 
home appreciated in value.  We did what we were suppose to do. 
 
Her comment did not sit well with me when you combine it with 
the fact that I passed up a guaranteed $24,000 sale on the house 
and now I have a vacant lot to maintain. 
 
She offered to send us info about the $50,000 Affordable Loan, but 
said they were using your 2006 income and that the cut off was 
$35,500 (for a 2 person family).  Earn more than that in 2006 and 
you do not qualify. 
 
Bottom line... 
 
The LRA costs us at least $24,000. Maybe MORE. 
 
Lesson learned... 
 
Don't trust a single thing that the LRA says. Even if you confirm it 
many different times, from many different people. Don't trust it. 
 
Don't TRUST them.  They are NOT looking out for your best interest. 
 
I hope this helps others, 
 
Larry