[StBernard] LRA Explains Guidelines for Assigning Road Home Grant to New Owner

[Westley Annis]

LRA Explains Guidelines for Assigning Road Home Grant to New Owner


BATON ROUGE, La. (February 26, 2007) - The Louisiana Recovery Authority (LRA) today reminded homeowners that they can transfer their Road Home grants to a new homeowner when they sell their property prior to their Road Home closing appointment. The purchase price of the home has no effect on the calculation of benefits or the amount of the Road Home grant. The calculation is based on the information provided by the original owner's application. 

"From the beginning when we designed this program, we believed it was very important that homeowners have options and flexibility considering the post-storm reality we're all facing," said LRA Housing Task Force Chair Walter Leger. "Now that we're in the implementation phase, we want to make sure that homeowners fully understand this feature of the program." 

Transferring benefits from the original eligible homeowner to a new homeowner who purchases the damaged residence is called assignment. Rights to Road Home benefits can be assigned as of August 29, 2005 but before benefits are paid. These rights can only be assigned one time and must meet the following guidelines:

- The original homeowner must have been in possession of the property at the time of either Hurricane Katrina or Rita and meet all other eligibility requirements for the Road Home program. 

- The new homeowner, also called the assigned owner, must agree to the covenant requirements of the Road Home program. 

- The sales transaction between the original owner and the assigned owner must be complete at the time benefits are transferred to the new owner. 

- The original homeowner must submit the Road Home application and both the original and the new homeowner must provide information and legal documentation to complete the process. The calculation of benefits is made just as would be done if there were no sale. 

- At closing, the assigned owner signs the legal documents associated with Option 1: Stay. 

"The policy of assigning benefits is important to both homeowners affected by the storms and new families who want to rebuild in Louisiana. We are committed to making this policy as easy to understand and implement as possible," said Michael Taylor, director of the Disaster Recovery Unit, Office of Community Development.

The original homeowner will receive the Road Home benefits letter in the mail. It is up to the original homeowner to notify the new homeowner of the award.

The original owner and the new homeowner must coordinate to schedule a closing. The original owner does not need to attend the closing, but the new homeowner must attend. At the closing, the Assignment of Road Home Grant Proceeds or equivalent legal document must be signed and in the applicant file.

More information is available at www.road2la.org <http://www.road2la.org>  or by calling 1.888.ROAD2LA or 1.888.762.3252, TTY: 711 relay or 1.800.846.5277.

The Louisiana Recovery Authority developed the policies for the Road Home while the state's Division of Administration is responsible for executing the program along with the state's contractor, ICF International. 

Hurricanes Katrina and Rita devastated South Louisiana, claiming 1,464 lives, destroying more than 200,000 homes and 18,000 businesses. The Louisiana Recovery Authority (LRA) is the planning and coordinating body that was created in the aftermath of these storms by Governor Kathleen Babineaux Blanco to lead one of the most extensive rebuilding efforts in the world. The LRA is a 33-member body which is coordinating across jurisdictions, supporting community recovery and resurgence, ensuring integrity and effectiveness, and planning for the recovery and rebuilding of Louisiana.

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