[StBernard] The Road Home e-Update

[Westley Annis]

Dear Homeowner,

To keep you up-to-date on current policies and new Road Home services, the program will be sending electronic updates to homeowners on our mailing list. If you no longer wish to receive these updates, please send an email to communications at road2la.org and ask to be removed from our mailing list.

Today's update will discuss:

*	Frequently Asked Questions
*	Information Sessions
	


Frequently Asked Questions


1. If a homeowner has closed and qualifies for $30,000 elevation grant what will happen when the money is approved for release?

The State has not released the funds . When the money is funded the homeowner will be contacted by The Road Home program with information regarding the next step.

2. If a homeowner felt that the Broker Price Opinion (BPO) was too low and they decided to get a post storm appraisal, what are the next steps?

The homeowner should contact a Road Home Resolution Advisor and provide the post-storm appraisal of the pre-storm value to The Road Home. The appraisal must be completed by a Louisiana licensed appraiser, which would be paid for by the homeowner. The Road Home will verify the accuracy of the post-storm appraisal. If it meets the program's criteria, it will be utilized in the homeowner's grant calculations.

3. How is the estimated damage determined for a manufactured or mobile home?

The Road Home uses a cost per square foot replacement value to determine the damage estimates for mobile homes. The cost per square foot allowances are based on the type of mobile home and the size:


*	Single-wide homes $35/square foot
*	Double-wide homes $40/square foot
*	Triple-wide homes $45/square foot
	

4. If an elderly homeowner who is selling his property was assessed a penalty, what should he do?

Homeowners, including the elderly, who did not have the appropriate insurance, will be assessed a penalty. The Road Home imposes an additional penalty for homeowners who select Option 3 - selling a home and not becoming an owner of another home in the state of Louisiana. The Option 3 penalty is not imposed on applicants over the age of 65 as of December 31, 2005. 

If an elderly applicant believes they mistakenly were imposed a penalty under Option 3, the applicant should schedule an Advisory Services appointment and bring a birth certificate and picture identification to the Housing Assistance Center to prove his or her age.

5. Why are some homeowners compensation award amounts lower when they go to their closing?

Possible explanations might include:


*	The homeowner received more FEMA money than disclosed in initial appointment.
*	The homeowner received more insurance proceeds.
*	The homeowner may not have provided complete documentation to receive the Additional Compensation Grant.
*	SBA took larger amount to satisfy their loan.
*	The pre-storm value used in the original award letter may have changed.
	

6. A homeowner selects Option 1 and received $150,000.00. The applicant has now found out that it will cost more than $150,000 to repair her home. The homeowner would like to change to Option 2. Can the applicant change options after closing?

Once an applicant has closed, they may not change their Option.

7. What are the covenant requirements for homeowners who choose Option 1?


*	Applicants must promise to use the property as their primary residence within three years from the date of their closing, and may not use it for any other purposes, which means the property cannot be used for rental or business purposes.
*	The home must be owner-occupied as their primary residence at some point within three years of the date of closing.
*	Applicants must also agree to maintain flood insurance on their homes if it is in a Special Flood Hazard Area. **
*	Applicants are also required to maintain hazard insurance on their homes.
	

**Please note: If it is a requirement that the property maintain flood insurance and it does not, it could result in the applicant having to repay their entire compensation award. Further, if the applicant fails to carry the proper amount of insurance on the property and in the event of a future disaster, the property may not be eligible for federal disaster relief for repair, replacement or restoration of damage due to flooding.

8. Under Option 1, can a homeowner sell their home after closing and receiving their funds?

After funds have been disbursed to a homeowner who selected Option 1, a homeowner can choose to sell their home during the term of the covenant, but the new owner must comply with the remaining covenant requirements.

9. Why does an applicant have to hand over additional insurance proceeds received after their closing?

Pursuant to federal statute and HUD requirements for CDBG programs, homeowner assistance may not duplicate any benefits received by the homeowner as a result of damages incurred during Hurricanes Katrina and Rita. Therefore, compensation from other sources, such as FEMA and insurance payments for damages, must be deducted from The Road Home compensation grant.

10. Does the pre-storm value include land?

Yes, pre-storm value generally includes the value of the land and the value of the structure on the property at the time of the storm. However, if the applicant's damaged residence was on leased land, the pre-storm value does not include the value of land.

11. How were homeowners who did not register with FEMA or who did register but there was insufficient data to determine FEMA's classification of damage treated prior to the updated policies related to FEMA eligibility?

On or before June 12, 2007, homeowners who either (1) did not register with FEMA, or (2) registered with FEMA, but The Road Home did not have enough documentation from FEMA to show if the property suffered 'major' or 'severe' damage were considered "FEMA eligible" if the following two conditions were met:


1.	The Road Home's home evaluation determined that damage was sustained by the storm.
2.	The Road Home's home evaluation determined that the damage sustained by the storm was equal to or more than $5,200
	

12. Some homeowners sold their home before The Road Home program started but after the storm. They did turn in an application; what will happen?

Those applications have been placed on an inactive list. They will be considered for benefits at the end of the program subject to the availability of funds.

13. Some applicants have still not received option letters; why?

Options letters require key information before they can be generated. Among other things, this includes:


*	Pre-storm value
*	Estimated cost of damage 
*	Verification of ownership and occupancy
*	Verification of FEMA eligibility and insurance payout information
	

If any of the data is missing the letter cannot be generated. Furthermore, in order to receive an additional compensation grant, The Road Home requires documentation of income.

14. Is Road Home money taxable?
The Road Home understands that the IRS has said that the award itself is not taxable income. However, if an award recipient claimed a loss due to damages on their income for previous years then they may have a tax liability as a result of being reimbursed for those losses. The Road Home recommends that applicants with tax-related questions about the assistance they have received contact the IRS, an accountant, or their tax advisor.

15. If an applicant sells their home to another person, what is the responsibility of the new owner if the covenant is broken or defaulted?

The new owner purchases the property subject to the covenants and therefore is subject to the penalties in the covenant including partial or full repayment of The Road Home grant. The new owner is also subject to injunctive relief.

16. Can a person apply for The Road Home program after July 31, 2007?

No.

17. When will an applicant receive a yellow option letter?

The yellow letter is mailed when all values needed for calculation of benefits have been received by The Road Home.


18. If a mobile home owner has added additions to mobile home and they own the land, how will post storm appraisal be calculated?

Home evaluators or appraiser will measure the total square footage.


19. If an applicant dies and they have 6 kids that are heirs to the property, what documentation do they need to receive The Road Home funds?

The information required to establish ownership depends on the circumstances of the death. The following chart provides general guidance. For applicants electing Option 2 or 3 and selling their homes, the final determination of what constitutes clear title is up to the Title Insurance companies. Because family circumstances vary, heirs are urged to consult with their advisors to establish clear ownership to properties.


Was there a will? 	Special Circumstances 	Documents needed	 
Yes 	HO elects Option 1	 Judgment of Possession	 
Yes 	HO elects Option 2 or 3 and deceased owner died less than 10 years ago	 Judgment of Possession
	
Yes	 HO elects Option 2 or 3 and deceased owner died more than 10 years ago	 Affidavit of Death, Domicile and Heirship	 
No 	All Options - Adult heirs inherit property. Estate has no substantial debts other than mortgage on property. 	Affidavit of Death, Domicile and Heirship	 
No	 All Options - Minor child (under age 18) inherited the property 	Judgment of Possession AND
Tutorship and Court Order authorizing Tutor's execution of Covenant	 
No	 All Options - Substantial debt other than mortgage on the property 	Judgment of Possession AND Copy of Louisiana Inheritance Tax Return	 
No	 All Options - Person with limited mental capacity to execute legal documents inherits property 	Judgment of Possession AND Interdiction and Court Order authorizing Curator's execution of Covenant	 


20. Do houseboat owners qualify for The Road Home Program?

No, the State has not approved eligibility for houseboats. 

For more frequently asked question, please visit our Web site at http://www.road2la.org/homeowner/faqs.htm <http://www.roadcommunications.com/action.cfm?md=emaillist&task=addMessageClickThru&msgid=284&uid=h%22k3e%5CkDms&encoded=1&redirect=http%3A%2F%2Fwww%2Eroad2la%2Eorg%2Fhomeowner%2Ffaqs%2Ehtm> .

Information Sessions

As homeowners across the hurricane-affected areas continue through the recovery process, numerous questions arise regarding The Road Home program, its processes, and the next steps for program applicants. Homeowners are encouraged to participate in outreach sessions conducted in their areas. Upcoming sessions are listed at www.road2la.org/homeowner/events.htm <http://www.roadcommunications.com/action.cfm?md=emaillist&task=addMessageClickThru&msgid=284&uid=h%22k3e%5CkDms&encoded=1&redirect=http%3A%2F%2Fwww%2Eroad2la%2Eorg%2Fhomeowner%2Fevents%2Ehtm> .

Contact Information

If you have any questions or concerns, please contact us at 1.888.ROAD.2.LA or email us at inquiry at road2la.org.