[StBernard] LRA Explains Occupancy Rules for Small Rental Property Program

[Westley Annis]

LRA Explains Occupancy Rules for Small Rental Property Program 

Landlords warned against evicting tenants in order to apply for program 

BATON ROUGE, La. (March 13, 2007) - The Louisiana Recovery Authority (LRA) today explained the occupancy policy within the Small Rental Property Program, which offers incentives to small property owners who are rebuilding much-needed affordable rental housing. For the initial round of the program, all units from small owners and nonprofit organizations must be vacant or ensure that the properties were vacant 90 days prior to the launch of the program (November 1, 2006). Certain properties with owner occupied units are also eligible if they have occupied rental units. 

"We designed this program to get money on the street and rental units back online as quickly as possible," said LRA Housing Task Force Chairman Walter Leger. "The first round prioritizes vacant units in unoccupied properties. Extending this opening round of grants to owners of occupied units would slow the program down because of time-consuming! , complex federal requirements that are part of the Uniform Relocation Act (URA). It's important to note that we lost an estimated 80,000 rental units throughout Louisiana after the storms. This program only has sufficient funds to bring back an estimated 18,000 units, so we had to prioritize those resources. We made the difficult decision to give priority to units and properties not back in commerce yet, but will make every attempt to address other units and properties in future rounds. "

If the property is already occupied, it is not eligible for the current round of the program, but may be eligible in a future round. The exception is that three and four unit rental properties where the building owner also lives in one of the units and in which one or more of the rental units are occupied are also eligible to apply. However, it is illegal for a property owner to evict or displace his or her tenant in order to apply for assistance from the program. The landlord would be declared ineligible for the program and also subject to federal prosecution. 

"We are here to help people who need housing," said Suzie Elkins, Director, Office of Community Development. "Obviously, we cannot allow landlords to evict or displace renters in the mistaken belief that doing so will make them eligible for this program." 

Currently, the LRA and Office of Community Development are exploring how owners of occupied units could be assisted in future rounds of the program. 

About the Program
Through a series of competitive application rounds, the Road Home Small Rental Property Program will provide incentives to rental owners, such as loans that are forgiven in stages over time. This will help rebuild reasonably-priced rental properties in the most storm damaged areas and help provide much needed workforce housing.

The program offers awards through a series of competitive application rounds to ensure incentives are available to those owners who need it most. This initial round targets small-scale owners with up to 20 rental units. Larger property owners will be given an opportunity to apply in later rounds, but the program will continue to prioritize small-scale applicants. The amount of the incentive an owner may receive will depend on the affordability of rents the property owner is willing to charge. ! Owner occupants of three- and four-unit properties are strongly encouraged to apply. 

Applications are being accepted for small-scale and owner-occupant property owners until Thursday, March 15, 2007.

Some of the funding has been specified for nonprofit organizations offering longer-term affordability and supportive housing. These applications will be available through March 22, 2007. 

To be eligible, applicants must have owned a one- to four-unit rental property located in one of the 13 parishes hardest hit by the storms: Acadia, Calcasieu, Cameron, Iberia, Jefferson, Orleans, Plaquemines, St. Bernard, St. Tammany, Tangipahoa, Terrebonne, Vermilion and Washington. All eligibility criteria can be found online at www.road2LA.org/rental <http://keelson.eatel.net/websites/la.gov/action.cfm?md=communication&task=addClick&msg_ID=3497&ID=d%22iGeaiMn%29n%21&redirect=http://www.road2LA.org/rental>  or by calling The Road Home call center at 1.888.ROAD.2.LA (1.888.762.3252). TTY callers use 711 relay or 1.800.846.5277.

An application can be requested by calling 1.888.ROAD.2.LA or visiting www.road2LA.org <http://keelson.eatel.net/websites/la.gov/action.cfm?md=communication&task=addClick&msg_ID=3497&ID=d%22iGeaiMn%29n%21&redirect=http://www.road2LA.org> . Completed applications should be mailed to P.O. Box 4729, Baton Rouge, LA 70821-1182.

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 and inflicting about $25 billion in insured losses. 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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