[StBernard] State Outlines Changes to Road Home Elevation Calculations, Appraisals

[Westley Annis]

State Outlines Changes to Road Home Elevation Calculations, Appraisals

BATON ROUGE, La. (March 5, 2008) - To speed the payout funds to homeowners and in recognition of the cost of elevation, most homeowners will receive a flat $30,000 for elevation through the Road Home program, the Louisiana Recovery Authority (LRA) and the Office of Community Development (OCD) announced today.

Rather than each homeowner having an individual elevation grant calculation, homeowners will receive standard elevation amounts through the Road Home program, based on the type of home they have, at the following levels:

*	Site built homes and modular homes: up to $30,000 elevation allowance;
*	Mobile homes: up to $20,000 elevation allowance.

"This across-the-board formula will give most homeowners a flat $30,000 for elevation, which will cut through the red tape of individual grant calculations, speed the pace of payouts to homeowners and bring elevation awards more in line with actual elevation costs," said Walter Leger, chair of the Louisiana Recovery Authority's (LRA) Housing Task Force. 

Homeowner compensation through the Road Home is still capped at $150,000 per applicant. Almost 2,000 applicants have already received their elevation awards and will be eligible for additional funding if they received less than they would under the new policy provided the new amount does not exceed the total Road Home program cap of $150,000.

For all homes, the policy change makes the program conform more closely to estimates by the Federal Emergency Management Agency (FEMA) of the actual cost of elevation.

The state announced in late February that homeowners who qualified for elevation awards would be receiving information about the program over the next several weeks. The state anticipates that the first elevation awards will be paid this spring. The elevation program was originally put on hold in April 2007 after concerns over a potential shortfall in the Road Home budget.

Louisiana will also run a second elevation program using Hazard Mitigation Grant Program (HMGP) funds beginning this summer. This program will help Road Home applicants cover the gap between their Road Home elevation awards and the actual cost of elevation. 

In addition, the state announced Wednesday a change to the Road Home program regarding a full appraisal, called a 1004. This change will affect applicants who dispute their pre-storm value or submit a post-storm appraisal of their pre-storm value that exceeds the acceptable value based on existing Road Home policy. 

Under the new appraisal policy, applicants will be given the option to request a 1004 appraisal or accept the highest valid pre-storm value currently in their file. If the applicant requests the 1004 appraisal, which is most similar to a full appraisal for real estate transactions, it will represent the final pre-storm value of their home. If the new appraised value is higher or lower than what is currently in the homeowner's file, it will result in an award calculation adjustment. This adjustment would result in either additional funding or a reduction in funding to the homeowner. 

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 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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