Homeowner Assistance Program Frequently Asked Questions

Homeowner Assistance Program Frequently Asked Questions 1

Blight Reduction Grant Adjustment (BRGA)... 3 Additional Compensation Grant (previously known as Affordable Compensation Loan)... 5 Applicant Passes Away... 7 Closing and Title Insurance Process... 10 Insurance... 13 Compensation Grant... 14 Deductions from Grant Award... 17 Elevation Program... 18 Estimated Cost of Damage... 23 FEMA Eligibility... 24 Fraud Reporting... 24 Foreclosure and Bankruptcy... 25 Grant Disbursals... 25 Individual Mitigation Measures (IMM)... 26 IMM Frequently Asked Questions... 30 Mobile Homes and Condominiums... 31 Condominiums... 33 Occupancy... 34 Ownership... 35 PALs and Appeals... 37 Pre-storm Value... 40 Program and Covenant Requirements... 41 Covenant Requirements... 42 Covenant Extension Request... 44 Covenant Release due to Building Restrictions... 47 Request for File... 48 Second Closing and Second Disbursement... 48 SBA... 49 Sold Homes... 50 2

Subrogation... 52 Taxes... 52 Blight Reduction Grant Adjustment (BRGA) What is the Blight Reduction Grant Adjustment (BRGA)? To continue furthering the purpose of The Road Home to rebuild communities and help individuals restore their lives, OCD-DRU received approval from HUD to offer additional rebuilding dollars to eligible applicants under the Blight Reduction Grant Adjustment (BRGA) policy change. The additional resources will be granted to the most challenged of the Road Home Option 1 grant recipients who have not yet been able to return to their homes in the four parishes (Orleans, St. Bernard, Plaquemines, and Cameron) whose communities remain most impacted by the non-return of the Option 1 grant recipients. Is this a new program? This is not a new program. The BRGA will use existing Road Home funds to provide additional help to Road Home grantees. The Blight Reduction Grant Adjustment raises the pre-storm value used in the original Road Home calculation to effectively bring these homeowners up above the median pre-storm value for their parish. The difference is provided to the homeowner through the BRGA that can be used to help the homeowner get back into their damaged home. Who is eligible? The funding will be limited to residents of the four most damaged parishes: Orleans, St. Bernard, Plaquemines and Cameron. Existing Road Home applicants must meet all of the following criteria to qualify for the BRGA: o Must be a Road Home applicant who selected Option 1 and intends on repairing or rebuilding their damaged home; o The damaged home must have been in one of the four most impacted parishes (Orleans, St Bernard, Plaquemines or Cameron); o The PSV upon which the original grant is based was at or below the 55th percentile of the parish; o As of May 1, 2011, the homeowner has been unable to complete repairs and return to their damaged property or has returned without repairing the property and it is uninhabitable under the applicable codes and ordinances of the local jurisdiction; and o The homeowner agrees to participate in a construction advisory services program offered by the State to help guide the homeowners in the continued efforts to restore their lives. What if I believe I am eligible? If you believe you may be eligible for the Blight Reduction Grant Adjustment please contact customer service at: 1(888)-ROAD2LA or 1(888) 762-3252 Does the Blight Reduction Grant Adjustment raise the maximum grant award? The program's maximum grant award, including the BRGA, will stay at $150,000. 3

Is there a minimum award amount? Meeting all of the criteria does not guarantee a homeowner a BRGA award. The state will not calculate awards less than $2,000 and homeowners must demonstrate a commitment to return through their participation in construction advisory services and/or demonstrated progress toward compliance with the covenants placed on their property by the Road Home. Are new applications being accepted for the blight reduction grant adjustment? This policy change does not add new applicants to the Road Home Program. It is to provide additional resources to eligible applicants with existing applications. How will eligible applicants be notified? If a Road Home applicant is eligible for the funds, they will be notified by mail through the address provided on file. 4

Additional Compensation Grant (previously known as Affordable Compensation Loan) What is the Additional Compensation Grant? The Additional Compensation Grant is intended to assist with any gap between The Road Home estimated cost of damage and the amount(s) the homeowner receives from other assistance (insurance, FEMA) and The Road Home compensation grant. The maximum amount for the Additional Compensation Grant is $50,000. Only applicants with household incomes 80% and below the parish median income are eligible to receive the Additional Compensation Grant. What factors are considered when determining the Additional Compensation Grant? You are eligible for the Additional Compensation Grant only if: o Your total household income is at or below 80% of the median income for the parish in which your damaged residence is located. Median income is determined by the U.S. Department of Housing & Urban Development (HUD). AND o There is a gap between the applicant s total compensation (from insurance, FEMA, and The Road Home compensation grant) and the estimated cost of damage. My household meets the eligibility requirements for the Additional Compensation Grant. Why weren t we offered these funds? The Additional Compensation Grant is intended to assist with any gap between The Road Home s estimated cost of damage and the amounts the owner received from other assistance (insurance, FEMA) and The Road Home compensation grant. If there is not a gap, the Additional Compensation Grant is not offered. In addition, an applicant cannot receive the Additional Compensation Gran under Option 3. The Additional Compensation Gran comes into play when an applicant is choosing Option 1 or 2 and the estimated cost of damage is greater than the pre-storm value OR an applicant received an insurance penalty. Why didn t the applicant get the full Additional Compensation Grant amount of $50,000?The Additional Compensation Grant is intended to assist with any gap between The Road Home s estimated cost of damage and the amounts the owner receives from other assistance (insurance, FEMA) and The Road Home compensation grant. If the gap is less than $50,000, the applicant will only receive an Additional Compensation Grant for the amount of the gap. Why is the compensation grant the same amount under both options, but the applicant is only offered an Additional Compensation Grant under Option 2 and not for Option 1?Under Option 1, the compensation grant is the lesser of the following: o Pre-storm value minus other assistance provided (insurance, FEMA, flood insurance) OR o Estimated cost of damage minus other assistance provided (insurance, FEMA, flood insurance). 5

An Additional Compensation Grant will be offered under Option 1 only if the estimated cost of damage is greater than the pre-storm value or if there is a gap created by an insurance penalty. If The Road Home determines that your home sustained less than 51% damage, your compensation grant is calculated the same way under Option 1 and Option 2. However, there is often a gap created under Option 2 that does not exist under Option 1 because the Type 1 damage estimate (51% damage or greater) is always used to determine the Additional Compensation Grant under Option 2. Therefore, a gap might exist under Option 2 that does not exist under Option 1. 6

Applicant Passes Away Was there a will? Special Circumstances Documents needed No No No All Options. Minor child (under age 18) inherited the property All Options. Person with limited mental capacity to execute legal documents inherits property All Options. Substantial debt other than mortgage on the property Judgment of Possession AND Tutor's Judicial Authorization of Transaction Judgment of Possession and Curator s Judicial Authorization of Transaction (unless a durable power of attorney was executed prior to incapacity). Judgment of Possession Yes Applicant elects Option 1 Judgment of Possession No No Yes No No Applicant elects Option 1, deceased owner died less than 10 years ago with adult competent heirs Applicant elects Option 1, deceased owner died more than 10 years ago with adult competent heirs Applicant elects Option 2 or 3 and there is a deceased owner Applicant elects Option 2 or 3 and deceased owner died less than 10 years ago. Applicant elects Option 2 or 3 and deceased owner died more than 10 years ago Affidavit of Death, Domicile and Heir ship Affidavit of Death, Domicile and Heir ship Judgment of Possession Judgment of Possession Affidavit of Death, Domicile and Heir Ship What ownership documentation is required if the applicant is choosing Option 1 but the eligible owner occupant died during or has died since the time of the storm? In Option 1 cases where husband and wife acquired ownership of property as community property prior to the storm and one of the spouses dies prior to, during or after storm and the intestate or testate estate by judgment of possession provides surviving spouse a usufruct over the children s interest, the surviving eligible owner occupant of the deceased maintaining full ownership of half interest in property with usufruct over the other half interest, is the only individual required to attend closing and execute closing documents. The children maintaining naked interest of other half interest in property are not required to attend closing or execute closing documents. In all other Option 1 cases where the eligible owner occupant died during or has died since the time of the storm, the following documentation is required prior to closing to confirm ownership: 7

o o o o If there is a will, The Road Home requires a Judgment of Possession If there is no will and a minor inherits interest in the property, The Road Home requires a Tutorship document, a court order allowing the tutor to encumber the property, and a Judgment of Possession. If there is no will and no minors are heirs to decedent, and the estate does not have substantial debts, The Road Home requires an Affidavit of Death, Domicile, and Heir ship. If there is no will, no substantial debt and adults inherit the property, The Road Home requires an Affidavit of Death, Domicile, and Heir ship If an adult heir is mentally incompetent then require interdiction proceeding and court order authorizing curator to encumber the property. What if the applicant and/or co-applicant believe they are lawful owners but the tax and title records don t match the names of the applicants because of the death of the owner? If the applicant and/or co-applicant believe they are the lawful owner(s) but the names are not on the tax or title records, The Road Home needs additional information from them to establish ownership at the time of the storm. The information needed depends on why the applicant or co-applicant is not on the ownership record. Usually the reason the names are not on an official records is because the records were never changed after the death of the former owner. If an applicant passes away after signing an Option 2 grant agreement, what are the requirements for the surviving owner(s)? If the applicant was in full compliance with the Option 2 grant agreement, then the agreement will not be binding on the estate or the heir(s). If the applicant owned and occupied replacement property in the State of Louisiana and was carrying the appropriate insurance on the property at the time of his or her death, the applicant is considered in full compliance. If there were multiple applicants who signed the Option 2 grant agreement, the surviving applicant(s) is responsible for carrying out the remaining requirements of the Option 2 grant agreement. If the applicant was not in full compliance with the Option 2 grant agreement at the time of his or her death, the contract will be enforced against the estate or the heir(s). If the estate or heir(s) is unable to comply with the Option 2 grant agreement the grant must be repaid in full. Definition: Affidavit of Death, Domicile and Heirship: The Affidavit of Death, Domicile and Heirship is a document prepared by a lawyer that lists the facts necessary to determine who inherits a property. This affidavit must be signed by two persons who know the family history of the deceased owners. The affidavit contains the following: o Statement regarding death: The date of the deceased s death o Statement regarding domicile: The parish in which the deceased was domiciled (residence) at the time of death. o Statements regarding heirship: A statement about whether the deceased had a written will in effect as of the date of death. A list of all the deceased s children, natural and adopted, stating which have died before the deceased (predeceased) and those that survived the deceased; for any predeceased 8

child, list that child s descendants (natural and adopted), if any. For any surviving child or descendent listed, they must be identified as a minor, if applicable, as of the date of the affidavit and provide their birthdates. If the deceased had no descendents, a list of the deceased s natural and adopted parents and siblings that survived him; for siblings that predeceased the deceased, a list of descendents for each predeceased sibling descendants (natural and adopted), if any. For any surviving siblings, nieces or nephews, identify those that are minors as of the date of the affidavit and provide their birthdates. The surviving spouse, if any, of the deceased and a list all prior spouses. A statement whether the deceased s estate is free of substantial debt. A statement of whether the deceased s property for which The Road Home grant is applied was separate property or community property, and provides a statement of facts which indicate it was separate or community property (i.e. inherited property, purchased while married.) For community property, the name of the spouse with whom the deceased owned the property should be included. Definition: Judgment of Possession: A Judgment of Possession legally transfers the property of someone who has died to the heirs. It lists the heirs and the property to be received by them. Once recorded in the conveyance records of the Clerk of the Court s office, the Judgment of Possession officially establishes the ownership of the property. A Judgment of Possession requires that the heirs file a succession in the state district court. Definition: Tutorship document: If a minor inherits a property, a Tutorship document must be filed in state district court. The document appoints a Tutor and Under-tutor (assistant to the tutor) to handle the affairs of the minor. Additionally, the tutor and under-tutor are authorized by the court in the Tutorship document to transact business related to real estate owned by the minor. Therefore the tutor can sign The Road Home covenants and handle The Road Home funds. Definition: Interdiction: If the applicant or co-applicant suffers from serious mental health problems, such as dementia, Alzheimer s, serious mental illness or retardation, an interdiction issued by the court may be needed to allow legal documents to be executed on behalf of the mentally ill owner and The Road Home benefits to be paid. An interdiction proceeding is a judicial process in which the court appoints someone to represent the interests of the person with the mental health problems. Furthermore the court authorizes the representative to transact business related to the real estate owned by the interdicted person. The interdiction allows the representative to sign The Road Home covenants and handle The Road Home funds. Closing and Title Insurance Process The Road Home Closing Process 9

Who will be at the closing? For Option 1 applicants, all applicants must attend the closing. If one of the applicants has Power of Attorney for the eligible owner-occupant and the eligible owner-occupant is able to attend the closing, the person named as Power of Attorney is not required to attend. For Option 2 and 3 applicants, all owners that appear on the title must be present at closing. For all options, the applicant(s) can also choose to grant Power of Attorney to act on their behalf at the closing. For applicants with assignment of rights, it is not a requirement that the original homeowner be present if the Road Home has on file the current homeowner s information, including documentation of their rights to the benefits and identification, including the homeowner s thumb prints. If the identification of the assigned owner is not in the file, the original owner and assigned owner must participate in the closing. What happens if some of the owners of the damaged home are unable to participate in the closing? If owners cannot come to The Road Home closing, the absent owner can assign Power of Attorney to authorize another owner to act on their behalf. The Power of Attorney must be signed and notarized. If the applicant chooses Option 2 or 3, the closing agent will provide a suitable Power of Attorney form to be signed and notarized. How much are closing costs? The Road Home requires that certain documents be recorded as public record. The amounts of these charges and fees have been designated by your parish officials. Under Option 1, closing costs should be no more than $100. This includes the recording fees to record the covenant and subordination. Closing costs for Option 2 and 3 can range widely depending on what has to be recorded. Under Option 2 and 3, closing costs are often higher, ranging from $300 - $500 in most cases. The closing costs will be deducted from the total grant amount. What documentation does the applicant need to bring to closing? o The applicant will need to bring a valid, government issued photo ID. o When the applicant schedules their closing appointment, the closing agent will let them know if any other parties are required to attend the closing. o If the applicant wants their award electronically transferred to a bank account, the applicant will need to bring the necessary bank information, which the closing agent will discuss when they set up the closing appointment. o For Option 2 if applicable, the applicant will need to bring proof of a replacement home, such as a HUD 1 settlement sheet or title. How long will the closing take? Typically, each closing lasts about 1 hour. 10

How does the applicant schedule a closing? The applicant will receive a call from a closing agent. At that time the applicant will be able to pick a date and time and choose a closing center convenient for them. When will the closing be scheduled? After the closing agent receives notice from The Road Home program that the applicant s funding amount has been approved, the applicant will typically be contacted within 15-30 days to schedule a closing appointment. The actual date of the closing depends on the applicant s availability and open appointments. Closing dates for applicants who choose Option 2 or 3 may require additional time since full title searches must be completed and payoffs arranged with lien holders. What if the applicant sent in their option letter and wants to change the benefit option they selected? Applicants can change their option selection up until their scheduled closing and before they sign their closing documents. If an applicant decides to change their option, they may be asked to call the closing agent at least five days prior to the appointment so that the appropriate paperwork can be prepared. If the applicant is closing on an Option 2 or 3, the closing may take a little longer to schedule because the State requires a full title search and lien holders must be contacted for payoff amounts. May an applicant change from Option 1 to Option 2 or 3 after they have gone to their closing? Yes. Applicants may elect to change from Option 1 to Option 2 or 3 after they have closed. Applicants may make this change regardless of how many Road Home closings they have completed or the number of disbursements they have received as long as the request occurs within one year of the original closing date. Applicants who make the decision to change from Option 1 to Option 2 or 3 post-closing are responsible for the cost of executing another closing. This amount is deducted from the applicant's funding award amount. The request must be postmarked within one year of the date on their Option 1 closing documentation. Applicants who closed prior to the approval of this policy have one year from the date the policy was approved (September 7, 2007) to submit their request in writing to The Road Home program. Applicants must submit request in writing to Road Home program at the following address: The Road Home Program Post Closing Department P.O. Box 3749 Baton Rouge, LA 70821 Applicants must include the following information in their request: o Full name o egrants application ID o Damaged 11

property address o for requesting change Reason Why is the State of Louisiana asking to be listed as an additional insured at closing? The State of Louisiana is listed as an additional insured so that the state is alerted if and when additional insurance payments are made to a Road Home applicant who has closed on their grant. This information is needed to alert the State to funds that may have been provided to the homeowner that are considered a duplication of benefits provided by The Road Home. 12

Insurance Definition: Title Insurance: Title insurance is defined as insurance against loss from defects in title to real estate property and from invalidity or unenforceability of mortgage liens. Basically, it is protection against loss arising from problems connected to the title of your property. Private title insurance companies issue the title insurance on all properties that are sold to the Louisiana Land Trust to protect the State against lawsuits challenging property titles. Is a title insurance policy being issued for all homes? No. Title insurance is only being issued for Option 2 and 3 properties which the Louisiana Land Trust is purchasing. Who is paying for the title insurance? The State pays the cost of the title insurance. Can the applicant purchase insurance from any company they choose? Yes. The Road Home covenant requires that you will need to acquire flood insurance, in addition to homeowner s insurance, if you are located in the flood plain. 13

Compensation Grant What factors are considered when determining the compensation grant award? The Road Home compensation grant is based upon the following factors: o Pre-storm value of your home o Estimated cost of damage o If you qualify for assistance to elevate your home o Compensation received from other sources for structural damage to your home, including: o Homeowner s insurance proceeds o Flood insurance proceeds o FEMA assistance for structural repair How is the compensation grant determined? The formula for determining your Road Home award differs under each option. Option 1: Repair/rebuild your damaged property The compensation grant is the lesser of the following: Pre-storm value minus other assistance provided (insurance and FEMA proceeds) OR Estimated cost of damage minus other assistance provided (insurance and FEMA proceeds) Example - Compensation Grant Calculation for Option 1 Note: This example illustrates the basic concepts that apply to the calculations under option 1 and does not reflect your funding assistance amounts. Pre-storm value: $190,000 Estimated cost of damage: $ 100,000 Insurance proceeds received: $40,000 FEMA received: $9,000 The compensation grant is calculated as the lesser of: $190,000 minus $40,000 minus $9,000 = $141,000 (Pre-storm Value) (Insurance) (FEMA) (Uncompensated value loss) $100,000 minus $40,000 minus $9,000 = $51,000 (Estimated Cost of Damage) (Insurance) (FEMA) (Uncompensated of damage loss) Compensation Grant = $51,000 Option 2: Relocate as a homeowner in Louisiana 14

The compensation grant depends on the extent of damage determined by The Road Home evaluation: If damage to your home is estimated at less than 51% known as a Type 2, the compensation grant is the lesser of the pre-storm value minus other assistance provided or the estimated cost of damage minus other assistance provided (i.e. the same formula for Option 1 applies.) If damage to your home is estimated at 51% or more known as a Type 1, the compensation grant is the pre-storm value minus other assistance provided. Compensation Grant under Option 2 Damage estimate is 51% or greater Damage estimate is less than 51% Pre-storm value minus assistance from other sources Lesser of: Pre-storm value minus assistance from other sources, OR Estimated cost of damage minus assistance from other sources Option 3: Sell and move outside of Louisiana The compensation grant depends on the extent of damage determined by The Road Home evaluation. However, under option 3, a penalty is assessed unless the owner applicant was 65 or older as of December 31, 2005 or the owner applicant received Permanent Change of Station (PCS) orders from the military or Coast Guard to move out of Louisiana. Compensation Grant under Option 3 If: Owner s age is below 65 Owner s age is 65 or above Damage estimate is 51% or greater Damage estimate is less than 51% Grant will be 60% of pre-storm value minus assistance from other sources. (This is the same calculation as Option 2, except 60% of pre-storm value is used.) Lesser of: 60% of pre-storm value minus assistance from other sources, OR Estimated cost of damage minus assistance from other sources. (This is the same as Option 1, except 60% of pre-storm value is used.) Pre-storm value minus assistance from other sources. (This is the same calculation as Option 2.) Grant is lesser of: Pre-storm value minus assistance from other sources, OR Estimated cost of damage minus assistance from other sources (This is the same calculation as Options 1 and 2.) Why does an applicant receive a penalty for not having insurance? 15

Under Options 1, 2 and 3, a 30% penalty on the compensation grant is required if the applicant did not have the required insurance coverage at the time of the storm. All applicants are required to have carried homeowner s insurance at the time of the storm. Applicants living in the flood zone are required to have carried flood insurance at the time of the storm. An exception applies if the applicant s community did not participate in the National Flood Insurance Program (NFIP). What is a duplication of benefit? The U.S. Government forbids two or more federal agencies to provide compensation to cover the same loss. This is known as a duplication of benefit and is why FEMA and insurance proceeds must be deducted to determine The Road Home grant. 16

Deductions from Grant Award What payments are deducted at closing? If an applicant is choosing Option 1: Stay, the following payments are deducted from their grant proceeds at closing: o Any SBA loan funds that have actually been disbursed that SBA considers duplication of benefits. This is determined by SBA immediately prior to the scheduled closing. Note: SBA may also reduce the maximum amount of the SBA loan for which you qualify for by the amount of The Road Home grant if the SBA loan would duplicate benefits. o Recordation fees If an applicant is choosing Option 2: Relocate or Option 3: Sell, the following payments are deducted from their grant proceeds at closing: o Property taxes, including fines, and the property taxes due for the current year through the date of closing. o Federal, State and local tax liens. o Outstanding balances on mortgages or other liens on the property. o Any SBA loan funds that have actually been disbursed that SBA considers a duplication of benefits. Note: SBA may also reduce the maximum amount of the SBA loan for which you qualify for by the amount of The Road Home grant if the SBA loan would duplicate benefits. o Recordation fees What happens if there is a federal tax lien on the home? If there is a federal IRS tax lien on a home and the owners intend to sell the home to the Louisiana Land Trust under Option 2 or 3, the owner will have to pay off the lien or obtain a release of the lien from the IRS. The mortgage lender or Recorder of Deeds office in your Parish can provide information about federal tax liens. Elevation Program What are Elevation Programs? The Road Home Elevation Incentive provides $30,000 ($20,000 for mobile homes) to eligible homeowners as an incentive to elevate their homes to meet the local Base Flood Elevation or Advisory Base Flood Elevation. These funds are limited to the specific dollar amount and not to exceed the Road Home $150,000 maximum. If you received funds that are considered by the Federal government to be a duplication of benefits, those funds may be subtracted from the amount you receive. The State HMGP Award provides up to $30,000 (based on actual construction costs rather than a fixed amount) to FEMA eligible homeowners to elevate their homes to meet the local Base Flood Elevation or Advisory Base Flood Elevation. Homeowner eligibility is determined by FEMA based on HMGP regulations. For more information, visit the HMGP Elevation Program Web site at www.mitigatela.org. 17

For both programs you should contact your local building code and permit office to determine elevation requirements for your home. Download a sample Road Home Elevation Program Information Letter (PDF/159k). Who is eligible? To be eligible for The Road Home Elevation Incentive, the following must be true: You are eligible for a Road Home program award You own a single family home or mobile home. Town homes and duplexes are eligible if owners of adjacent properties agree in writing to elevate You still own the home that was eligible for Road Home benefits Your home is located in a floodplain based on FEMA s BFE or ABFE maps You have not already received the maximum $150,000 Road Home assistance You have elected Option 1 Keep your home You have settled all disputes or appeals pending with The Road Home, so that an elevation award amount can be accurately calculated You have completed and submitted the elevation grant agreement indicating you accept Road Home elevation award and acknowledging your responsibilities You must meet the following minimum criteria in order to be considered for the State HMGP Award. FEMA will further determine eligibility. Minimum criteria include: You are an eligible applicant of the Road Home program You selected Road Home Option 1 Keep your home You still own the home that was eligible for Road Home benefits Your home is located in a floodplain based on the Advisory Base Flood Elevation or Base Flood Elevation maps You agree to meet all HMGP regulations as determined by FEMA and all listed in State HMGP Elevation Award Covenant Rider (a sample of this form will be mailed to you with other information about the State of Louisiana Elevation Programs). What properties are not eligible for The Road Home Elevation Incentive? Condominiums Mobile and site built homes on leased land Homes not in the Advisory Base Flood Elevation or Base Flood Elevation area Duplexes and town homes that share common roof and/or foundation where owners of adjacent homes cannot agree in writing to elevate Owners of homes in the Agricultural Street Superfund Site Applicants who received Road Home funds under Option 2 or 3 18

What properties are not eligible for the State HMGP Award? Ineligible properties include, but are not limited to: Condominiums Mobile and site built homes of leased land Homes not in the Advisory Base Flood Elevation or Base Flood Elevation area Homes located in the Agricultural Street Superfund Site Duplexes and town homes that share common roof and/or foundation where owners of adjacent homes cannot agree in writing to elevate Applicants who received Road Home funds under Option 2 or 3 What is an Advisory Base Flood Elevation (ABFE) or Base Flood Elevation (BFE)? The ABFE or BFE establishes the height, relative to the mean sea level, that has a one percent chance or greater of flooding in a given year as determined by FEMA and adopted by your local jurisdiction. An ABFE becomes a BFE once adopted by a municipality. How are these awards calculated? The Road Home Elevation Incentive is determined based on the structure type of the home. Site-built home are eligible to receive $30,000 and mobile homes are eligible to receive $20,000 toward the cost of elevation. The State HMGP Award is based on the cost of elevation. Both programs take into account previously received benefits such as Increase Cost of Compliance (ICC) funding that a homeowner has received. There will only be a reduction in the award amount if the amount of benefits received will exceed the cost of elevation. For example, if the cost to elevate a home is $40,000 and the homeowner has received $30,000 of ICC funding that was used for elevation; the homeowner would only be eligible for $10,000 from The Road Home Elevation Incentive. However, if the cost to elevation a home is $100,000 and the homeowner has received $20,000 from ICC funding, they would be eligible to receive $30,000 from The Road Home and may, if they meet the requirements of the Hazard Mitigation Grant Program, still be eligible to receive up to $30,000 from the State HMGP Award. What is Increased Cost of Compliance funding? Increased Cost of Compliance (ICC) funding is available to owners of properties that carried flood insurance, are located in a flood plain, and suffered substantial damage or have been repetitively damaged by floods. ICC can be used to pay for costs to elevate, relocate, or demolish a home. For more information on ICC funding, contact your local parish authority or the insurance company who issued your flood insurance policy. What if I have completed elevation, am I still eligible? You are eligible for the Road Home Elevation Award as long as you meet the eligibility requirements of the program. 19

For the State HMGP Award, you are eligible if you started construction prior to March 16, 2008. (Documentation is required). After March 16th, you must receive written authorization from the State in order to be eligible. Without the written authorization you may be ineligible. If I sold my home since receiving my Road Home grant, am I eligible for elevation funds? If you sold your home and there is an Assignment of Rights on file, the new owner of the property is eligible to receive funds, not the previous owner. If an Assignment of Rights was not completed and filed with The Road Home, the new owner is not eligible. Can I appeal the amount of my elevation funding? The amount of Road Home Elevation Incentive is determined by structure type - $30,000 for site built homes and $20,000 for mobile homes - and whether or not you have reached the $150,000 maximum and/or are subject to the duplication of benefits review. The amount of the award may not be appealed. The State HMGP Award is based on your actual elevation construction costs, not to exceed $30,000. If you disagree with the awarded amount you may appeal. You may appeal your initial eligibility to receive an elevation grant from either program. What is the Road Home Elevation Incentive Agreement? The Elevation Incentive Agreement is a signed document acknowledging that by accepting the funds, you are responsible for ensuring that within three years of receiving the money your home will meet or exceed all applicable building codes adopted by your parish, including elevation with respect to the ABFE or BFE. What is the HMGP Award Covenant Rider? The HMGP Award Covenant Rider is required by FEMA. It modifies the Road Home covenant you signed at closing The HMGP Award Covenant Rider must be recorded and will require assuring such things as: completion of construction; compliance with building codes and elevation standards; obtaining building permits, contractor lien waivers and performance bonds; and assurance that you will carry flood insurance and other FEMA requirements. How do I get my elevation funding? For The Road Home Elevation Incentive, you must return the Elevation Election Form when you receive notification of the program. When you return the form with your preferences, The Road Home will review your file to determine the amount of your grant. The Road Home will send you a letter with the grant amount and the Elevation Incentive Agreement. When you return the signed Elevation Incentive Agreement, and have no outstanding issues or Appeals, you will be disbursed the funds. For the State HMGP Award, you must return the Elevation Election Form and the FEMA required Voluntary Participation Agreement (VPA) when you receive notification of the program. When you return these forms with your preferences, the State will begin to work with FEMA to determine your 20

eligibility. Once your home is determined eligible by FEMA, the State will notify you and send a copy of the HMGP Award Covenant Rider to be signed and returned. What if I already received a Road Home elevation award less than $30,000 ($20,000 for a mobile home)? Am I eligible to receive more Road Home funds for elevation? Yes, as long as you have not received the maximum Road Home award of $150,000 and subject to the rules related to duplication of benefits. This is because Elevation Incentives are no longer based on calculations previously outlined in Road Home benefit selection letters. They are based on a fixed amount per structure. The receipt of Road Home elevation dollars does not affect the State HMGP Award as long as the amount of funds you received has not exceeded your total cost of elevation. What if I declined the Road Home elevation award in my yellow letter? Even if you declined the elevation award in your yellow letter, you will receive information about the updated programs. You will be able to accept the Road Home Elevation Incentive and the State HMGP Award if you are willing to meet the requirements in either program. How high do I have to elevate? This depends on each individual property. You should contact your local building code and permit office to determine elevation specifics for your property. When will I get my Road Home Elevation Incentive? We expect to begin disbursing elevation awards by early to mid-april and will continue to disburse them over several months. When will I get my State HMGP Award? It is anticipated that this program will begin providing funds later this year. Prior to the award, each project must be determined eligible by FEMA. Once your home is determined eligible by FEMA, the State will notify you and send a copy of the covenant to be signed and returned. You will then be provided formal notification that it is OK to initiate construction. Each project must be monitored for construction progress and compliance with HMGP regulations prior to the disbursement of funds. Can I fax in my Road Home Elevation Grant Agreement? No, the original, signed, and notarized Elevation Grant Agreement must be mailed to Road Home. If I receive a Road Home Elevation Award am I automatically eligible to receive a State HMGP Award? No, the State HMGP Award program has its own requirements for eligibility. Is there anyone I can talk to who can provide additional information about the elevation programs? If you have questions about the Road Home Elevation Incentive or the State 21

HMGP Awards call 877-234-1513 (Road Home Elevation Technical Assistance Hot Line). TTY users call 711 relay or 1-800-846-5277, or visit the HMGP Elevation Program Web site at www.mitigatela.org. 22

Estimated Cost of Damage How is the estimated cost of damage determined? The Road Home estimates the cost of repairing a damaged home based on modest rebuilding standards. This is determined by using the following inspection methods. o Type 1 Inspection. Estimates for homes that have already been torn down or that sustained more than 51% damage are calculated by multiplying $130 (the estimated cost of repair per foot) by the total number of square feet in the home plus a $550 cost allowance to cover a house raising survey plus 2% of the total cost to cover builders risk. o Type 2 Inspection. Estimates for homes that sustained less than 51% damage are based upon a component-by-component basis. When possible, all damaged residences will receive a Type 1 and a Type 2 damage assessment in order to determine the percent damage. o If the Type 2 amount divided by the Type 1 amount exceeds 51% damage, the amount shown on the letter is only the Type 1 amount. If it is 51% damage or less, the amount shown on the letter is only the Type 2 amount. If no Type 2 was done (e.g. the house was totally destroyed), then the amount shown on the letter will automatically be the Type 1 amount. What if the estimated cost of damage is lower than the amount it cost the applicant to replace the items in their home? The Road Home estimated cost of damage evaluations do not take into account an exact replacement of homeowner s original home. Unlike insurance estimates that may be based on replacement costs, The Road Home evaluation is based on moderate livability standards based on costs developed by the construction industry for Louisiana for those items. For example, while an insurance company may pay for the replacement of crystal chandeliers and granite countertops, The Road Home will compensate homeowners for standard light fixtures and plastic laminate countertops. If a homeowner has already begun or completed repairs, the estimated cost of damage will also include the cost for the repairs based on the same basic livability standards for repairs that have not yet been completed. Is there a correlation between the pre-storm value and the estimated cost of damage? No. The pre-storm value and the estimated cost of damage are calculated independently of each other. The home evaluation provides an estimate of the cost to repair or rebuild the damaged home based on standardized cost allowances. The pre-storm value is the market value, which is what a willing buyer and willing seller may have agreed to as the price of the property and structure prior to the storm. Depending on the market value of the home prior to the storm, the extent of damage, and construction costs, it is possible that the estimated cost of damage as determined by The Road Home will be higher than the pre-storm value. Are carports, sheds, and detached suites considered in the pre-storm value and the estimated cost of damage? No, simple shed-roof style carports, sheds, and detached suites are not considered in determining the estimated cost of damage. However, these items are included when determining the pre-storm value 23

because pre-storm value is based on the estimated market value of the property, which is what someone might have paid for the property prior to the storm. FEMA Eligibility The damage to the applicant s home was substantial but FEMA disagrees. Is the applicant still eligible for Road Home assistance? Depending on The Road Home s evaluation of damage on the property, the homeowner may be eligible. Currently, if a homeowner (1) did not register with FEMA, (2) registered with FEMA, but The Road Home does not have enough documentation from FEMA to show if the property suffered major or severe damage, or (3) registered with FEMA, and FEMA classified the damage to their home as minor but the classification may have been in error, they will be verified by The Road Home based on the following protocols: o If the property received only a Type 1 evaluation the property is considered eligible. (Properties that receive only Type 1 evaluations are those that have been demolished or are so damaged that they are considered by the evaluator to require reconstruction.) OR o If the property, based on The Road Home s home evaluation, sustained 601 or more square feet of roof damage the property is eligible. OR o If the home was located in an area where the flood maps, aerial photography, and/or pictometry show that the flood waters were one foot or more AND either: The photos of the property taken by The Road Home show that it was not elevated OR The photos of the property taken by The Road Home show the level of water equal to at least one foot on the first floor living level OR The Road Home estimate of damage for electrical systems and drywall confirms a need for replacement of all items on the first floor the property How were homeowners who did not register with FEMA or who did register but there is insufficient data to determine FEMA s classification of damage treated prior to these policies? Homeowners who either (1) did not register with FEMA, (2) registered with FEMA, but The Road Home does not have enough documentation from FEMA to show if the property suffered major or severe damage AND received an award letter dated on or before June 12, 2007 were determined FEMA eligible if the following 2 conditions were met: o The Road Home s home evaluation determined that damage was sustained by the storm o The Road Home s home evaluation determined that the damage sustained by the storm was equal to or more than $5,200 Fraud Reporting 1. Allegations of fraud involving the Homeowner Assistance Program may be reported via: The Homeowner Assistance Program Antifraud e-mail at antifraud@road2la.org The Homeowner Assistance Program Antifraud helpline at 225-330-0070 24

2. Allegations involving a home improvement contractor may be reported to the Federal Disaster Fraud Hotline at 866-720-5721. 3. Individuals reporting fraud may remain anonymous. Foreclosure and Bankruptcy The mortgage lender foreclosed on the property. Is the applicant or co-applicant still eligible for a Road Home grant? If the mortgage lender has foreclosed, the property is owned by the bank and therefore the former owners the applicant and co-applicant - are not entitled to The Road Home grant. The mortgage lender sent a Notice of Seizure or filed a Notice of Foreclosure. Is the owner still eligible for a Road Home grant? A Notice of Seizure or Notice of Foreclosure from the lender means that the lender intends to seize title to the property if the owners do not contact the lender and make arrangements to pay the back mortgage payments. As long as the property is still owned by the applicant and/or co-applicant at the time of the storm, they are eligible for The Road Home program. However, if the applicant closes on The Road Home funds and the lender still forecloses after the receipt of Road Home funds, the recipient(s) of The Road Home funds must repay the entire Road Home grant back to the State. Will The Road Home pay an award to an applicant or co-applicant who is in bankruptcy? Applicants, who are in bankruptcy, should consult with their attorney concerning matters relating to their Road Home funds. What if the applicant has questions or needs guidance regarding foreclosure proceedings? Road Home applicants should contact an attorney regarding foreclosure proceedings. The Road Home provides referrals for financial and legal services for low income applicants that are facing a possible foreclosure. Grant Disbursals How will funding be disbursed? All applicants both with and without mortgages and for all options receive lump-sum payments of their compensation grants. This policy became effective April 2, 2007, for homeowners without mortgages and April 11, 2007, for homeowners with mortgages. When an applicant receives their Road Home award can the lender force them to use the funds to pay off their remaining mortgage? A homeowner s mortgage loan documents and the lender may impose conditions with respect to the use of the proceeds. Homeowners are encouraged to consult with their lender. However, the decision 25

whether to consult with a mortgage lender is entirely up to the homeowner. The Road Home program cannot advise the homeowner as to what actions a particular mortgage lender may or may not take with respect to their grant proceeds, or what a homeowner s rights and obligations to the mortgage lender are under the mortgage. How will applicants receive their grant money after closing? The Road Home s preferred method of grant disbursement is electronic fund transfer. This is to ensure that the applicant s grant money is safely deposited into the applicant s personal account. Applicants who do not have personal bank accounts to receive an electronic fund transfer will receive a check for the amount of their award delivered via Federal Express. Individual Mitigation Measures (IMM) Retrofitting your home to reduce future losses Individual Mitigation Measures (IMM) are cost-effective types of protection providing homeowners the ability to make their homes more wind resistant and better protected against flood damage by making the following improvements to their property: 1. Installing window protection 2. Installing hurricane straps/clips 3. Bolting walls to foundation 4. Strengthening doors 5. Anchoring propane tank/heating fuel tank 6. Elevating electrical panel, HVAC unit, washer/dryer, furnace and/or water heater OCD-DRU received approval from HUD to use existing funds to help homeowners retrofit flood prone structures and properties. The state has notified qualified homeowners by letter to explain how they can receive up to $7,500 for installing IMMs. This action will allow more than 20,000 homeowners who are Option 1 Road Home participants and who expressed interest by the March 10, 2010 deadline to receive the $7,500. Priority will be given to compliant homeowners and those whose homes are under construction. Homeowners who expressed interest in IMMs by the deadline, but who have reached or are close to the $150,000 Road Home cap, may still receive IMM funding through the Hazard Mitigation Grant Program. Program Eligibility for CDBG IMM Funding You may be eligible for an IMM grant if you meet the following criteria: Meet all Road Home eligibility requirements; Received an Option 1 grant; Owned the land where the damaged residence was located at the time of the storm and are still the owner and occupant of the property; Expressed interest in receiving the IMM funds by the March 10, 2010 deadline; Have not received the maximum Road Home grant of $150,000. IMM Award Grant Calculation 26

Homeowner Assistance Program Frequently Asked Questions 1

The OCD-DRU HMGP can provide funds for such items up to a maximum of $7,500 for this and all other IMMs combined. Bolting Walls to Foundation Standard methods of achieving this strengthening include installing anchor bolts that tie the wall framing to the floor system, installing anchor bolts that tie the wall framing to the foundation (wood walls with concrete foundations), and installing anchor bolts from the floor system to the foundation. The Road Home IMM Program can provide funds for on such items up to a maximum of $7,500. Strengthening Doors To strengthen and secure doors, remember these mitigation principles: Metal door frames are stronger than conventional wood frames Sliding doors should be mounted securely in the frame, and the frame attached securely to the wall 28

Exterior doors should be made of solid wood or metal doors that open outward are the safest The Road Home IMM Program can provide funds for such items, up to a maximum of $7,500. Anchoring Propane Tank/Heating Fuel Tank We strongly urge homeowners to make sure any fuel tanks are solidly anchored. An inexpensive way to secure a horizontal outside propane tank is to install four ground anchors connected across the top of the tank with metal straps. A vertical tank can be secured with two ground anchors. The ground anchors and straps used to secure these tanks are the same products required by building codes to tie down mobile homes. These products are available from suppliers and installers that service the manufactured housing industry. The Road Home IMM Program can provide funds for such items, up to a maximum of $7,500. Elevating Electrical Panel, HVAC Unit, Washer/Dryer, Furnace and/or Water Heater Raising these items above the recognized local flood plain is an important mitigation measure that you should seriously consider, if needed. Remember these principles: The main electric panel board should be at least 12 inches above the projected flood elevation for your home. The panel board height is regulated by code. For protection against shallow flood waters, the washer and dryer can sometimes be elevated on masonry or pressure-treated lumber at least 12 inches above the projected flood elevation. Other options are moving the washer and dryer to a higher floor, or building a floodwall around the appliances. 29

The furnace and water heater can be placed on masonry blocks or concrete at least 12 inches above the projected flood elevation, enclosed by a floodwall or moved to a higher floor. Furnaces that operate horizontally can be suspended from ceiling joists if the joists are strong enough to hold the weight. Outside air conditioning compressors, heat pumps or package units can be placed on a base of masonry, concrete or elevated in some other way that is allowed by the building codes. The Road Home IMM Program can provide funds for such items, up to a maximum of $7,500. IMM Frequently Asked Questions How do I get started? What should be my first step to get IMM or any HMGP funds? If you have not received an interest letter and feel that you meet the qualifications for the Road Home IMM program, please contact the Hazard Mitigation Grant Program at 1-877-824-8312. To qualify for a Road Home IMM Program grant you must meet the following criteria: Meet all Road Home eligibility requirements; Received an Option 1 grant; Owned the land where the damaged residence was located at the time of the storm and are still the owner and occupant of the property; Expressed interest in receiving the IMM funds by the March 10, 2010 deadline; Have not received the maximum Road Home grant of $150,000. If you are not eligible for the CDBG funding, you might qualify for IMM funding under the Hazard Mitigation Grant Program. You can contact that program by calling toll free at 1-877-824-8312 and we ll check our system to see which is best for you. You can visit the HMGP website at www.mitigatela.org. What are the allowable Individual Mitigation Measures (IMM)? Approved IMM activities are: Installing window protection Installing hurricane straps/clips Bolting walls to foundation Strengthening doors Anchoring propane tank/heating fuel tank Elevating electrical panel, HVAC unit, washer/dryer, furnace and/or water heater How much can I receive for IMM? The maximum you can receive for IMM is $7,500. The total maximum Road Home Grant cannot exceed $150,000. 30

We've been told to use state licensed contractors for elevation and reconstruction in most instances. Is that true for IMM? OCD-DRU encourages homeowners to hire qualified, experienced and reliable companies to perform the mitigation work. Please contact your local permitting office and/or the State Licensing Board to verify any local and/or State requirements prior to undertaking your mitigation measures. Mobile Homes and Condominiums Mobile Home (Manufactured Housing) How does The Road Home define a mobile home or manufactured homes? A manufactured home or manufactured housing is: o A factory built, residential dwelling unit constructed to standards and codes issued by the U.S. Department of Housing and Urban Development under the National Manufactured Housing Construction and Safety Standards Act of 1974 (42 USC 5401 et seq, as amended. The terms may apply to: o Structures bearing a permanently affixed seal from HUD certifying that the home is in compliance with the Code. o Factory built, residential dwellings mounted on a chassis. A mobile home is a factory built, residential dwelling built to voluntary standards prior to the passage of the National Manufactured Housing Construction and Safety Standards Act of 1974 (42 USC 5401 et seq, as amended.) Mobile home is used interchangeably with house trailer. 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: o Single-wide homes $35/square foot o Double-wide homes $40/square foot o Triple-wide homes $45/square foot What are the general dimensions of a single-, double- and triple-wide mobile home? o Single-wide mobile homes: Up to approximately 700 square feet of living area and between 46 56 feet long in length and between 10-12 feet in width. o Double-wide mobile homes: Between approximately 1,150 1,800 square feet of living area and between 24 32 feet in width and between 48 56 feet in length. o Triple-wide mobile homes: Square footage in excess of 4,800 square feet and between 48 56 feet long. 31

How does The Road Home program calculate the damage for mobile homes? The home evaluator, along with the homeowner and available title records, determines whether the mobile home is a single-, double-, or triple-wide and uses the corresponding unit rate to determine the replacement allowance. What if the applicant had additional living space added to their mobile home? The home evaluator will measure the additional living space that has been added to the basic structure and compute the square footage. The additional square footage will be added to the square footage of the mobile home and the total square feet is then used in the calculation. Are applicants who owned a mobile home but did not own the land eligible to apply to The Road Home program? Yes, owners of mobile homes damaged by the storm that are on leased land may apply to The Road Home. How does The Road Home estimate the pre-storm value of a mobile home if the mobile homeowner owns both the home and the land? If an applicant owns both the mobile home and the land, then The Road Home will accept an appraisal provided by the applicant and completed by a Louisiana licensed appraiser after January 1, 2000 to determine pre-storm value. If there is not an appraisal available for the property, The Road Home will use: o Lender appraisals o The Road Home will order an appraisal, or o A Brokers Price Opinion (BPO) The appraisal and/or BPO must be based on comparable mobile home properties. How does The Road Home estimate the value of a mobile home on leased land? The pre-storm value of the mobile home is determined based on a Broker s Price Opinion (BPO) or on information in the NADA Manufactured Housing Appraisal Guide. To determine the NADA value, applicants will need to provide The Road Home with the mobile home manufacturer, model, make and condition of their mobile home. Does The Road Home estimate of damage provide an allowance for the cost to hook-up to services? Yes, The Road Home allows $500 in the estimated costs of damages for utility connections. If a mobile home applicant chooses Option 1: Stay, can the applicant purchase a new mobile home and place it on the existing lot? Yes, mobile home applicants who choose Option 1 can purchase a new mobile home and place it on the existing lot. The new home must meet State of Louisiana s anchorage and installation requirements. How do I prove ownership and occupancy at the time of the storm if my property is a mobile home? The ownership and occupancy requirements are the same as a single family home. In the event that 32

you are unable to provide the required documentation, The Road Home will provide you with a Mobile Home Ownership and Occupancy Affidavit. This affidavit allows mobile home applicants to self-certify that they owned and occupied the unit at the time of the storm and it was located at the property address listed on the application. The written affidavit requests information about the make, model, year, VIN number, size (width by height), and condition prior to storm. The affidavit also includes a statement that the applicant acknowledges that he/she may be prosecuted by Federal, State, and/or local authorities in the event that he/she make or file false, misleading and/or incomplete statements and/or documents. The affidavit must be notarized. Condominiums What is a condo? The individual owners have title to and responsibility for their condominium parcel, essentially that space and structure bounded by the floor, ceiling, and walls. The condo association, however, owns the common structural elements that include the building envelope (foundation, structural walls, and roof) and all exterior elements (parking facilities, recreation rooms, offices, outbuildings, sidewalks, driveways, etc.) Collectively, the condominium parcel owners also own the common elements of the condominium complex. Each owner has a share of the undivided common elements. Is the Road Home processing condos? Yes, there is a condo team that is working with identified condo owners in processing and assisting them through The Road Home. Due to the unique types of ownership, this team is the primary points of contact for condo owners. How is condominium ownership different than other structure types? Ownership of an individual condominium unit a condominium parcel is similar to that of a singlefamily property; however, there are several important distinctions. Ownership of the condominium facility or complex is shared. The condominium parcel owner is responsible for maintenance and repair only to furnishings and interior walls within the parcel. The association is responsible for the maintenance and repair for common structural elements, i.e. all elements external to the condominium parcels. Condominium parcel owners are not responsible for any of the common elements, nor can an owner independently perform or prescribe maintenance or repairs to these elements. These and other differences require different considerations for owners of individual condominium units. For example, the calculations for damage and benefits must consider both the individual condominium parcel and the associated common elements. 33

Occupancy How is occupancy verified by The Road Home program? Road Home program policies require an applicant to have owned and occupied the damaged home at the time of the storm. To prove you occupied your home, you must submit one of the following: 1. 2005 tax records demonstrating homestead exemption for the property 2. Copy of electric, gas, water, trash, sewage, cable or landline phone bill. The bill must confirm that service was provided in month preceding applicable storm and must match name and address on The Road Home application. 3. Letter from electric, gas, water, trash, sewage, cable or landline phone company. The letter must confirm that service was provided in month preceding applicable storm and must match name and address on The Road Home application. 4. Voter registration records together with drivers license matching the name and address on The Road Home application 5. Copy of credit card bill sent to damaged residence in month preceding storm and matching the name and address on The Road Home application 6. Copy of bank statement sent to damaged residence in month preceding storm and matching the name and address on The Road Home application 7. Copy of applicant s insurance policy covering the home or the contents of the home. The policy must confirm insurance coverage at the time of the storm and must match name and address on The Road Home application. 8. Copy of city directory at the time of the storm that lists the applicant residing at the damaged residence address[1] 9. Presence of 3rd party verified insurance information in the data warehouse for a period from August 15 August 31, 2007, if documentation is not available from then allowed sources - homestead exemption or utility records - applicants are permitted to certify to occupancy in The Road Home affidavit signed at closing. For all options, applicants sign an affidavit at closing certifying that the applicant was the owner-occupant at the time of the storm. Ownership What types of ownership situations are eligible? o Fee simple (full ownership): Eligible. This includes single units, double units, mobile homes, town homes, and condominiums o Ownership of stick built or mobile home on leased land: Eligible. o Usufruct (life estate): is a right to use and rights to the fruits of a property. This is determined on a case-by-case basis by the program. Usufruct owners can apply to the program. 34

o LLC: Not eligible. o Contract for deed: Not eligible unless the homeowner converts their contract to full ownership prior to receiving funding assistance from program. o Rent to own: Not eligible unless the homeowner converts their contract to full ownership prior to receiving funding assistance from program. o Bond for deed: Not eligible unless the homeowner converts their contract to full ownership prior to receiving funding assistance from program. o Lease to own: Not eligible unless the homeowner converts their contract to full ownership prior to receiving funding assistance from program. What is acceptable proof that a homeowner was purchasing a home on a contract (for examples: contracts for rent to own, bond for deed, lease to own, or contract for deed)? The program must have proof that the homeowner(s) was purchasing a home on a contract. Proof of a home on a contract would be: 1. The homeowner would need to provide a notarized Contract dated and executed prior to the storm (August 29, 2005 or September 24, 2005) AND/OR 2. A homeowner would need to obtain from the parish Clerk of Court s office conveyance records a certified, dated copy of the Contract that was filed prior to the storm (August 29, 2005 or September 24, 2005). If an applicant(s) occupied the property and had legal possession of the property through an Act of Donation before or at the time of the storm is the applicant or co-applicant eligible for The Road Home program? Yes, an applicant who resided at the home at or before the time of the storm and had legal possession of the property through an Act of Donation is eligible. In order to provide sufficient documentation to prove ownership of the property, the Act of Donation must be notarized, witnessed by 2 individuals, and recorded at the parish Clerk of Court s office conveyance records. If an applicant(s) did not occupy the property at the time of the storm but was placed in legal possession of the property through an Act of Donation after the time of the storm due to the death of the eligible owner occupant is the applicant eligible to apply to the program? If a homeowner gets legal possession of a property after the time of the storm through an Act of Donation and The Road Home grant is not explicitly donated in the Act of Donation to another person, then the homeowner may be eligible for The Road Home program. If the homeowner is choosing Option 1 (Stay and Repair) then The Road Home will complete an abbreviated title search to determine if there are any other heirs. If The Road Home grant is explicitly donated in the Act of Donation, no abbreviated title search is necessary, and the homeowner would be eligible to receive The Road Home award. What if the applicant(s) was not an owner-occupant at the time of the storm, but was placed in legal possession of the property through an Act of Donation after the storm by an eligible owner occupant who is still alive? Is the current homeowner eligible? If the homeowner was placed in legal possession through an Act of Donation by an eligible owner occupant who is still alive, the previous owner occupant must apply for The Road Home and assign the benefits to the new owner using The Road Home Assignment process. After the appropriate assignment forms are completed, the benefits will be paid to the new owner. 35

How is ownership verified if the applicant is choosing Option 1? To verify ownership of the damaged residence before the storm, The Road Home: o Matches the address of the damaged property and the name of the applicant(s) to the address and name on the 2005 property tax records as well as current tax records. If a match is found between an applicant and the tax records, ownership is established. o If there is not a tax match, an abbreviated title search is performed to see if the title records in the parish Clerk of Court s office include the applicant and/or co-applicant as an owner. If a match is found, ownership is established. How is ownership verified if the applicant is choosing Option 2 or 3? Applicants that are choosing to sell their damaged property will have ownership verified through a full title examination prior to the scheduled closing and sale. What if the owners of a home at the time of the storm are divorced, separated or otherwise no longer live together? Can both apply for the same property? The Road Home can accept only one application for each property, and this applies to owners that are divorced or separated or may no longer be living together. Both owners must sign The Road Home covenants and will jointly receive the benefits unless legal documents direct The Road Home to do something else. If one of the spouses cannot be located, the person filing The Road Home application may initiate a lawsuit that requests the court to authorize who receives The Road Home benefits. If spouses or other owner-applicants are in dispute over the benefits and disposition of the property, the owners will need to legally settle the community property. A lawyer can assist with these options. Can my ownership be affected by whether I paid my real estate taxes on my home? It is possible if one year of real estate taxes have not been paid that the home can be sold at a tax sale or adjudicated to the city or parish. Since Hurricanes Katrina and Rita, many people have been surprised to learn that their homes have been sold at tax sales. The Road Home will not close on a home if the home was sold at a tax sale since the owner at the time of the storm is no longer the legal owner. PALs and Appeals What is the PAL Process? When will the applicant find out about the results of their issues? Applicants who believe the program s determination of their funding award calculation or their eligibility status is incorrect may work through their PAL to resolve the issues they may have with their application or calculations, or they may file a formal appeal. An applicant may contact their PAL directly by phone or in writing. The applicant s PAL will work with the homeowner to review their concerns. The 36

applicant s PAL will contact them once a week in order to resolve any open issues with their case. Every communication between the applicant and the PAL will be documented, and the applicant will receive correspondence by mail. The outcome of the applicant s issue will either be: o Resolved within 60 days from the day the applicant initiated the issue and the applicant agrees with the outcome, or o Resolved but the applicant disagrees with the outcome, or o Not resolved within 60 days from the day the applicant initiated the issue Once a determination has been made about the homeowner s issue, the applicant will receive a letter in the mail. If the applicant is not satisfied with the outcome, they have two choices: o The applicant can file a formal appeal (at any time during the PAL Process) by sending a written appeal letter to Appeal s Office, P.O. Box 4669, Baton Rouge, Louisiana 70821, or o If the applicant s issue is not resolved within 60 days, the applicant s PAL will automatically forward the case to the Appeals team unless the PAL filed an extension of time. Once the applicant s file has been transferred to Appeals, it will be assigned to an Appeals advisor who will work with the homeowner to collect any necessary information and determine an outcome. Within 15 days, the homeowner will receive a phone call from the appeals advisor and they will be mailed a packet containing documentation related to their grant calculation. If an extension of time is filed to keep the issue within the PAL process, the applicant will receive written communication that clearly states why an extension was filed. The extension will not last longer than 30 days unless there is a mutual agreement between the PAL and the applicant, which will be clearly recorded in the applicant s file. What can an applicant appeal? An applicant has the right to appeal the amount of assistance from The Road Home. An applicant may appeal: o Certain eligibility decisions o Denial of Additional Compensation Grant (ACG) o Amount of benefit compensation including, but not limited to: Pre-storm value of home Estimated cost of damage Amount of FEMA assistance Amount of insurance payments What conditions must take place before an appeal will be accepted? Homeowners have the option to work with their PAL to resolve any issues with their award or they can file a formal appeal in writing. If the applicant has already closed on their award, they must appeal any issues with their award within 90 days of closing. After 90 days, the award is considered final and may not be appealed. 37

The Appeal s Office will research all information related to an application only as it relates to current policies governing The Road Home award determination. The Appeal s Office will not change policies or laws set forth by the State of Louisiana or the federal government. If an applicant disagrees with the determination of the Appeal s Office, they have the right to have their case reviewed by the State Review Panel. Even though an applicant may be seeking an appeal of an award, they are allowed to receive the amount of the grant award through a first closing. If they are awarded an additional amount as a result of the PAL or appeal process, they will receive the funds through a second disbursement. If additional documents do not need to be recorded, a second disbursement will be disbursed to them, per their instructions. NOTE: If an applicant has chosen Option 2 or Option 3 but wishes to seek additional amounts through the PAL or appeal process after their first closing, they need to be aware that they are selling their property to The Road Home Corporation, dba The Louisiana Land Trust at the FIRST closing for the amount of the initial award. The sale of their property to the Louisiana Land Trust is FINAL. After the sale at the first closing, they cannot get their property back even if they do not receive any additional award through the PAL or appeal process. If an applicant does not want to sell their property for the amount of the initial award, they should not close on their grant until the PAL or appeal process is finished. How does an applicant file an appeal? If the homeowner has been working with their PAL but a satisfactory solution to their issue has not been reached within 60 days, their case will be transferred to appeals. In this situation, no action on the applicant s part is necessary to file the appeal. The applicant will receive a letter from the program informing them that their case has been transferred to the Appeal s Office. Applicants, who choose to formally appeal their award at any other point in the process or after their first closing, must submit their appeal in writing to the State Appeals Office. If the applicant has closed on an award, they must submit a formal appeal within 90 days from the date of their first closing. A formal appeal of calculations related to their Road Home application or award can include more than one request for consideration or review but must be submitted as one appeal. The Appeal's Office will only accept communication that is mailed to the Appeal's Office. When submitting an appeal, the letter or document must include the following information: o Full name of all Homeowners/Applicants o Current mailing address o Application ID number (beginning with 06HH) o Original Signature of Applicant or Co- Applicant o Telephone number(s) o Specific reason(s) for the appeal Additional 38

information can be submitted to support an appeal claim, including: o Supporting documentation for an appeal o Additional justification for the appeal All information related to a formal appeal must be mailed to: Appeals Office P.O. Box 4669 Baton Rouge, Louisiana 70821 Once the applicant s file has been received by Appeals, it will be assigned to an appeals advisor who will work with the homeowner to collect any necessary information and determine an outcome. The homeowner will receive a phone call from the appeals advisor and they will be mailed a packet containing documentation related to their grant calculation within 15 days. The Appeals advisor will thoroughly research the appeal, seeking information from the applicant and third parties insurance companies, appraisers, and damage estimators depending on the issue raised. The advisor will contact the applicant by phone at least every 15 days to update them on the status of their appeal and clarify any issues. The advisor will prepare the Appeals Determination Letter which will be mailed to the homeowner. All determinations will be made by based on the information included in the application, award calculations made by The Road Home, program policies, and documents mailed with the appeal and obtained during the appeals process. All official communication from the Appeal s Office will be provided in writing through first-class mail. The Appeal Determination Letter will provide the homeowner with a choice. The homeowner can either accept the result on the Appeal Determination Letter or request a review of the Appeal determination by the State Review Panel. Once an Appeal Determination Letter is mailed to the applicant, no additional or separate appeal can be filed unless the calculations change after the report is issued. How does an applicant request a review by the State Review Panel? Once a determination has been reached by the Appeal s Office an Appeals Determination Letter will be sent to the homeowner. The homeowner has two options: 1) Accept the determination within 30 days of receiving the Appeals Selection Form or 2) Request a State review of the appeal determination. The homeowner will complete the Appeal Selection Form with all required information and mail it to the Appeal s Office within 30 days of the date of the Appeal Determination Letter. If the applicant selects Option 2, their Appeals advisor will call the applicant within 5 days of the request to clarify any outstanding issues. The Appeals advisor will also place the appeal on the review panel docket within 10 days of receipt of the homeowner s request for consideration by the State Review Panel. 39

Pre-storm Value How does The Road Home determine the pre-storm value of a home? The Road Home determines the pre-storm value of an applicant s damaged residence by using the following in this order: 1. An appraisal provided by the homeowner and completed by a Louisiana licensed appraiser on or after January 1, 2000 and prior to the storm. Pre-storm appraisals are adjusted to account for any increase in value over time. 2. An applicant provided post-storm appraisal of pre-storm value completed by a Louisiana licensed appraiser. Applicant provided post-storm appraisals are verified for accuracy by the program. 3. An appraisal provided from a lender or government source that was completed since January 1, 2000. These values are adjusted to account for any increase in value over time. 4. A Market Analysis which is an appraisal or estimate of market value ordered by The Road Home and prepared by an appraiser. 5. A Broker s Price Opinion (BPO) is an estimate provided by a real estate and includes a drive-by of the property. How does The Road Home adjust appraisals to account for the value at the time of the storm? The value from a pre-storm appraisal is adjusted to reflect an appreciated value as of the 2nd quarter of 2005 using a price appreciation index published by HUD s Office of Federal Housing Enterprise Oversight (www.ofheo.gov). The appreciation index takes into account appreciation values each quarter according to where the home is located. Does 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 as of 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. If you are accepting post-storm appraisals for pre-katrina value, will The Road Home reimburse me for the cost of the appraisal? No, The Road Home will not reimburse a homeowner for the cost of an appraisal they purchase. Please note: The Road Home program does not encourage a homeowner to acquire a post-storm appraisal if they do not already have one. What if the pre-storm value is lower than the applicant expected? If the applicant is not satisfied with their pre-storm value, the applicant can work with their PAL, or they can file a formal appeal to have the pre-storm value reviewed. The applicant should be prepared to provide information that will help the program revise their estimated value. An example could be if a home had a recent addition before the storm that the appraiser did not know about or if a major renovation was completed prior to the storm. Applicants should contact their PAL directly, or they can call 1.888.ROAD.2.LA (1.888.762.3252) and ask to speak with an advisor. 40

Program and Covenant Requirements Program Requirements What does it mean that the Option 1 covenant agreement runs with the land? A covenant running with the land is an agreement that binds the landowner to do or refrain from doing certain things in relation to the land. If the covenant agreement runs with the land, its restrictions are applicable to the property regardless of who is the owner, which means that subsequent owners of the property will be required to follow the terms of the covenant agreement. The covenant is only required for homeowners choosing Option 1. If a homeowner does not fulfill the requirements of the covenant, they will be required to repay their award. What are the covenant requirements for homeowners who choose Option 1? o 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 o The home must be owner-occupied as their primary residence at some point WITHIN three years of the date of closing. o Applicants must also agree to maintain flood insurance on their homes if it is in a Special Flood Hazard Area. ** o 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. What are the Option 1 covenant requirements for the Additional Compensation Grant? Applicants who choose Option 1 or Option 2 and receive an Additional Compensation Grant will sign no additional documentation at their closing. The Additional Compensation Grant requirements are the same obligations for a compensation grant award as directed by the covenants. Are Option 2 and 3 applicants who are selling their damaged home to the Louisiana Land Trust required to clear their damaged residence from the property? No, they do not have to clear their damaged residence from the property. Are Option 2 and 3 applicants on leased land selling anything to the State? No. For Option 2 and 3 applicants on leased land, there is no act of cash sale transaction. The State is providing homeowners on leased land compensation for their losses, but the State is not taking title to 41

the damaged structure. Option 2 and 3 homeowners on leased land are obligated to meet local or state laws with respect to maintenance and/or demolition of structures. Covenant Requirements What if the homeowner chooses Option 1, has gone to closing and received their funds and now wants to sell their home? 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 to a buyer who is willing to assume the covenant requirements. The new homeowner is subject to all the covenant obligations which run with the land, BUT the 3 year owner occupancy requirement of the covenant does not start over when title is transferred. The new homeowner is responsible for fulfilling the remaining covenant obligation. If a new buyer assumes the homeowner s covenant requirements, can they sell the home again prior to the expiration of the covenant? The covenant requirements can be assigned as many times as the home changes ownership. For example, if the homeowner who received The Road Home funds under Option 1 sells the home to a new buyer, the new buyer can sell the home to another buyer who will assume the remaining covenant requirements. Option 1 Covenant Agreement Updated Insurance Requirements o Option 1 applicants must obtain homeowner s insurance on the property at the time that they reoccupy the property. Upon obtaining homeowner s insurance, the insurance must be maintained until the 3 year period ends. o Option 1 applicants located in a Special Flood Hazard Area must obtain flood insurance at some point prior to the end of the 3 year compliance period. Upon obtaining flood insurance, the insurance must be maintained on the property in perpetuity or for the maximum period permitted by law. o Until the end of November 2007, the Covenant Agreement signed by Option 1 applicants required applicants to name the State of Louisiana Office of Community Development s (OCD) (ATTN: Disaster Recovery Unit) as an additional insured on their homeowner insurance policies and, if located in a Special Flood Hazard Area, on their flood insurance policies. o Naming OCD as an additional insured allows OCD to monitor applicants on-going compliance with the insurance coverage covenant requirements. o At the end of November 2007, the Covenant Agreement signed by Option 1 applicants was revised so that applicants could choose from any one of the following three options to prove compliance with the insurance covenant requirements: (1) Name OCD (Attn: Disaster Recovery Unit) as an additional insured for the limited purpose of notice from the carrier to OCD of policy issuance, cancellation and nonrenewal (2) Name OCD (Attn: Disaster Recovery Unit), on the policy as an interested party that will receive notice from the carrier of the policy issuance, cancellation and non-renewal) 42

o o (3) Name OCD (Attn: Disaster Recovery Unit) as a certificate holder on a certificate of insurance issued by the carrier which specifies that the carrier will issue notice to OCD of the policy issuance, cancellation and non-renewal The Covenant Agreement was revised because applicants had difficulties getting their insurance companies to list OCD as an additional insured on their insurance for the limited purpose of notice from the carrier to OCD of policy issuance, cancellation and non-renewal policies. All Option 1 applicants, regardless of closing date and the version of the Covenant Agreement that they signed can choose any one of the three options listed above (name OCD as an additional insured, name OCD as an interested party, or name OCD as a certificate holder) to prove compliance with the insurance covenant requirements. 43

Covenant Extension Request On August 11, 2009, the Louisiana Office of Community Development approved policy for Option 1 grant recipients to request a one (1) year extension to comply with the covenant requirements. What is the time extension granted? Covenant extension requests received within the original three (3) year compliance period will be granted for a period of one (1) year beginning on the end date of the original compliance period. For requests received after the expiration of the original three (3) year compliance period, the extension will be granted for a period of one (1) year beginning on the effective date of the Extension to comply with the Declaration of Covenants document. Does the Extension include the Elevation agreement? If the homeowner (s) has received the Road Home Elevation Incentive, an extension to the Elevation Covenant Rider must be specifically requested by the homeowner. The extension to the Covenant will not concurrently extend the period of elevation without approval. What is covered under the Extension Granted? The Extension if granted covers the occupancy requirement only. Covenant extensions will not waive any prohibited uses listed under part 2(c) of the Declaration of Covenants nor will it waive the requirement that the homeowner (s) must maintain the proper insurance on the property for the effective duration of the covenant period. What circumstances will be considered for granting an Extension? The following situations will be considered for extensions, NOT WAIVERS: 1. Homeowner (s) has experienced an unexpected financial hardship resulting in a household monetary situation that prevents him/her from being able to complete the necessary steps in order to re-occupy the property within the three year covenant period. 2. Homeowner (s) has experienced an emergency and/or debilitating health issue that has caused delays in completing the necessary steps to re-occupy the property within the 3 year covenant period. 3. Homeowner (s) has made a good faith attempt to secure a contractor/builder to complete the needed repairs to the damaged residence or reconstruct the home; however, due to uncontrollable contractor/builder delays the homeowner (s) will not be able to re-occupy the property within the three (3) year covenant period. 4. Homeowner (s) was the victim of an unscrupulous contractor/builder where Road Home proceeds were unlawfully taken and construction work is not completed. 5. Homeowner (s) has received Road Home proceeds but the funds have been exhausted prior to the property being returned to a livable standard within the three (3) year covenant period. 6. Homeowner(s) has died during the three (3) year covenant period and the heirs to the property are unable to return the property to a livable standard within the three (3) year covenant period. 7. Homeowner(s) has received military orders or job reassignment after receiving Road Home proceeds requiring him/her to relocate. 44

8. Homeowner (s) has sold property and transferred the covenant to the purchaser. New owner is not able to return the property to a livable standard within the three (3) year covenant period. 9. Homeowner (s) filed for divorce after receiving Road Home proceeds and one spouse has retained grant funds with no intention of fulfilling the requirements of the Road Home Covenant. 10. Homeowner (s) repaired/rebuilt property, acquired proper insurance, and re-occupied the property within the three (3) year covenant period; however, due to a subsequent natural disaster, the property was once again made unlivable. Homeowner (s) is not able to re-occupy the property for a second time within the three (3) year covenant period. 11. Homeowner (s) repaired/rebuilt property and later discovered that tainted Chinese drywall had been installed in the home. Homeowner(s) is not able to re-occupy the property until the issue with the tainted drywall is resolved. 12. Homeowner(s) is unable to re-occupy the property due to lack of availability of utilities. 13. Homeowner(s) is unable to re-occupy the property or had re-occupied but must temporally relocate due to elevation work being completed or planned to be completed on the home. What documentation will be required with the written request by the homeowner(s)? For all circumstances, the homeowner(s) must provide a current building permit demonstrating the intent to repair/rebuild the property. 1. Financial Hardships: homeowner (s) must provide income documentation in compliance with current Income Policy demonstrating that the household qualifies as low-moderate income. This determination will be made independently of any previous income determination and will have no effect on any previous income determination. 2. Health Issues: homeowner (s) must provide written documentation from qualified medical professional demonstrating that he/she is suffering from a medical condition that precludes him/her form being able to re-occupy the property. 3. Construction Delays: homeowner (s) must provide a signed building contract demonstrating that (1) there was an agreement to repair/rebuild the damaged residence that has since been cancelled due to circumstances beyond the homeowner s control or (2) there is an agreement to repair/reconstruct the damaged residence t o a liable standard within the period of time granted by the extension to the three (3) year covenant period. 4. Contractor Fraud: homeowner (s) must provide evidence of payments made to contractor/builder demonstrating the attempt to properly use Road Home proceeds. Additionally, the homeowner (s) must provide proof that the rebuilding/repairs were not completed (photos, showing current condition of home, current estimate of reconstruction/repairs from a new contractor, etc.) Homeowner (s) must also provide evidence that he/she has notified the proper authorities of the contractor/builder accused of fraudulent practices. 5. Exhausted Funds: homeowner (s) must provide contractor/builder invoices and/or construction material receipts demonstrating that the full amount of Road Home grant proceeds has been spent in the attempt to return the home to a livable standard. Additionally, the homeowner (s) must provide documentation supporting the ability to secure additional funding that will be used to return the damaged residence to a livable standard within a period of time granted by 45

the extension to the three (3) year covenant period including, but not limited to proof of private loan or proof of grant from a non-profit organization or other federal/state disaster recovery program that is deemed to be sufficient funds to complete the remaining steps needed to return the home to a livable standard. 6. Death of Grant Recipient: heir (s) to the property must provide a Death Certificate showing that original grant recipients(s) is a now deceased and proper successions document establishing the heir (s) as the legal owner of the property. Additionally, the heir (s) will need to attest to the fact he/she plans to establish the property as his/her primary residence within the period of time granted by the extension to the three (3) covenant period. 7. Relocation: homeowner (s) must provide copy of military orders or documentation from employer received after Road Home grant was awarded demonstrating requirement to permanently relocate. 8. Assumption of Covenant: new owner (s) of property must provide a recorded Act of Sale document showing that h/she has (1) purchased the property from the original grant recipient and (2) that the Act of Sale contains language transferring the covenant to the new owners (s). 9. Divorce: homeowner must provide a court order demonstrating that one spouse retained the Road Home proceeds. 10. Subsequent Disaster: homeowner (s) must provide proof of insurance coverage for repaired/rebuilt property; proof of loss demonstrating that repaired/rebuilt property suffered major/severe damage from a natural disaster during the three (3) covenant period. 11. Chinese Drywall: homeowner (s) must provide documentation from a certified building inspector or engineer demonstrating that tainted Chinese drywall was installed in the home during the repair/rebuilding process. 12. Lack of Utilities: homeowner (s) must provide documentation from the relevant utility company (electricity, gas, water, etc.) or his/her local city or parish government indicating that basic utilities are not available for the property where the damaged residence is located. 13. Elevation: homeowner (s) must provide evidence of his/her participation in the Hazard Mitigation Grant Program as well as documentation demonstrating his/her intent to elevate the home (Elevation Certificate, signed contract with an elevation company, etc.). What is the responsibility of the homeowner once the Extension is approved/executed? If the extension is approved, an Extension to comply with the Declaration of Covenants document is executed. The homeowner(s) must have the executed Extension recorded in the conveyance records of the Parish where the property is located. Covenant Release due to Building Restrictions On June 22, 2010, the Louisiana Office of Community Development approved policy for Option 1 grant recipients who have been prohibited from re-occupying their pre-storm property due to building restrictions placed on the land by government agencies and/or the property being expropriated. 46

Option 1 Grant Recipients requiring covenant release will be required to send written notification ]to OCD-DRU specifically requesting the release and explaining the circumstances for which the release is needed. OCD-DRU will then contact the homeowner(s) to obtain documentation evidencing that the grant recipient is not able to return to the property. Such documentation can include, but is not limited to: 1. Letter from government agency stating that there has been a moratorium on building in the area that encompasses the grant recipient s pre-storm property. 2. Letter from a government agency stating that the grant recipient s pre-storm property is being acquired by the city/parish/state entity. 3. Letter from the grant recipient s local building and permit office stating that his/her pre-storm property has been designated as an area where residential dwellings are no longer permitted. 4. Letter from local housing authority stating that the grant recipient is not permitted to re-occupy his/her pre-storm property. Once a determination has been made as to whether or not the release will be granted, the homeowner(s) will be notified of the decision. If the request is approved, the homeowner(s) will be required to sign a form acknowledging the following stipulations: 1. The homeowner(s) is the current owner of the property on which the original Road home covenant is attached. 2. The homeowner(s) has a continuing obligation to return to OCD any additional private insurance, flood insurance, or FEMA proceeds you receive for hurricane damages to the property if such proceeds were accounted for in the calculation of the initial grant award. Pursuant to federal statute and HUD requirement for the CDBG program, a Road Home grant award may not duplicate any benefits received by the homeowner from private and/or flood insurance as a result of damages incurred during Hurricanes Katrina and Rita. 3. The homeowner(s) may be required to return the Road Home grant to OCD if it is determined that your eligibility for the grant award was based on misrepresentations in the application for the grant. 4. The homeowner(s) may be required to return all or a portion of the Road Home grant to OCD if it is determined that the grant amount was miscalculated and, as a result of the error being corrected, the grant amount had decreased since the closing. 5. The original covenant remains in effect until the Release has been executed and recorded. Proof of the recordation must be provided to OCD within 90 days of the date the Release is executed. Failure to provide proof of recordation within the aforementioned timeframe will result in the Release becoming null and void. Request for File How do I request my file? Pursuant to Louisiana Public Access law La.R.S. 44:1, et seq, all Road Home applicants may request a copy of their Road Home file. Requests should include the applicant s Road Home application 47

identification number, the address of the damaged property and a current mailing address. All requests must be signed and dated by the applicant. If an applicant is represented by an Advocate and the Advocate is requesting the file, they must provide The Road Home Advocate request form signed and dated by the applicant. In accordance with Louisiana law, applicable fees will be assessed. Fees will be waived, however, for Road Home applicants requesting documents included in their individual file. All requests should be mailed to the following address: The Road Home Program P. O. Box 4669 Attn: Record Requests Dept. Baton Rouge, LA 70821 Please allow 30 days to complete the request. All questions regarding the request of an applicant file should be directed to Judy Morrell at 225-330-0264. Second Closing and Second Disbursement What is a second disbursement? If an applicant disagrees with their award calculation, the homeowner can choose to go to closing and receive their current award amount. If it is determined that the homeowner should receive additional funding after their file is reviewed by the Appeals Office, the additional funds will be disbursed through a second disbursement or second closing. SBA How does an applicant know if they are going to receive a second disbursement? An advisor from the post-closing team will contact the applicant to indicate whether or not there will be a second disbursement of funds. In some scenarios a further review of the file may determine that additional documentation needs to be collected from the applicant. Under what circumstances is The Road Home award used to repay a SBA loan? Applicants who receive Road Home assistance under Option 1 and also have an SBA loan for costs to repair or rebuild their home are required by SBA to repay or reduce their SBA loan to the extent that the homeowner s total benefits (SBA assistance plus Road Home funds plus other assistance) exceeds their total loss. The SBA determines the amount of The Road Home award that it considers a duplication of benefits. 48

If an applicant chooses Option 2 or 3, the outstanding principal balance on the SBA lien against the property must be repaid or released as will all other liens on the property. If SBA funds have been approved, but not yet been disbursed, the applicant will be eligible to keep all of their Road Home grant, but their SBA maximum loan amount may be reduced. When will the applicant find out how much money will be deducted by SBA from their Road Home grant? The Road Home closing agent responsible for closing the Road Home grant will request SBA to tell The Road Home how much will be deducted. The closing agent will then inform the applicant of how much SBA requires to be deducted during the closing appointment. How long does it take for SBA to determine if funding is considered to be a duplication of benefits? It generally takes 2-3 working days for SBA to provide the information to The Road Home, but it could take longer depending on the volume of requests. Does the applicant need to contact SBA about the amount that is going to be deducted from their Road Home grant? No, the applicant does not need to contact SBA regarding the amount of their SBA loan that is considered a duplication of benefits. If the SBA loan was to help the applicant replace the contents of their home, is that considered a duplication of benefits? No, only SBA loans related to the applicant s structure are considered in the calculation related to duplication of benefits. Will the applicant have to write a check or bring cash to The Road Home closing to pay their SBA loan? Under Option 1, the amount of funds owed to SBA as a duplication of benefits will be deducted from the applicant s Road Home award prior to closing. Under Option 2 or 3, depending on the outstanding balance of the SBA loan and the amount of The Road Home grants, the applicant may need to provide additional funds at closing. The closing agent will let the applicant know if there are payoff amounts for SBA as well as other liens. Sold Homes I sold my home. What do I need to do to have my application processed? If you have previously indicated that you sold your home, you will be mailed an information packet which will explain how the process will work. Included in the mailing is a form for you to sign and return indicating your interest in having your application processed and award calculated. 49

In order to have your application processed, you must also send a copy of your Act of Cash Sale that has been recorded with the parish. If you do not have access to the recorded Act of Cash Sale, you should return whatever Act of Cash Sale you have or other documentation that pertains to the sale of the home. Who is eligible? In order to be eligible for funding, you must meet the following criteria: 1. Your damaged property must be located in one of the 37 presidentially declared parishes, as stated in the current Road Home Homeowner Program Policies. 2. You must have owned and occupied the damaged property as your primary residence as of, and prior to, the time and date of Hurricane Katrina (August 29, 2005) or Hurricane Rita (September 24, 2005). 3. Your home was sold on or prior to December 31, 2008. 4. Your home was a single-unit, double-unit, town home, manufactured home, mobile home or condominium. 5. Your property must have been registered for FEMA individual assistance and must be categorized by FEMA as having been classified as having at least major damage OR you must provide insurance documentation which demonstrates that your home meets one or more of the FEMA surrogates listed in The Road Home program policies. 6. You must have applied to The Road Home program prior to the application deadline of July 31, 2007, and must have completed an appointment by the program deadline of December 15, 2007. 7. Your act of sale must have an execution date between the dates of August 30, 2005 and December 31, 2008 AND must have been recorded in the conveyance office of the parish no later than January 31, 2009, for properties affected by Hurricane Katrina. 8. Your act of sale must have an execution date between the dates of September 25, 2005 and December 31, 2008 AND must have been recorded in the conveyance office of the parish no later than January 31, 2009, for properties affected by Hurricane Rita. What types of compensation am I eligible for? If you have sold your home you are eligible for a Compensation Grant. You are not eligible for an Additional Compensation Grant or a Road Home Elevation Incentive. How is my grant amount determined? If you sold your home at a loss, you are eligible for this funding. The award is calculated by determining the difference in the sale price and the pre-storm value of the property, then subtracting insurance and FEMA payments received, as well as any penalties imposed for not maintaining hazard or flood insurance at the time of the storm. The total grant amount cannot exceed $150,000. Below is one example of a grant calculation: 50

Pre-Storm Value: $250,000 Sale Amount: - $100,000 Difference $150,000 Difference Minus $150,000 Insurance Compensation - $85,000 FEMA Assistance - $15,000 Road Home Compensation $50,000 How is my pre-storm value calculated? The Road Home determines the pre-storm value of your damaged residence by using the following values in this order: 1. An appraisal provided by you and completed by a Louisiana licensed appraiser on or after January 1, 2000 and prior to the storm. Pre-storm appraisals are adjusted to account for any increase in value over time. 2. A post-storm appraisal of pre-storm value provided by you and completed by a Louisiana licensed appraiser. Applicant provided post-storm appraisals are verified for accuracy by the program. 3. An appraisal provided from a lender or government source that was completed since January 1, 2000. These values are adjusted to account for any increase in value over time. 4. A Market Analysis which is an appraisal or estimate of market value ordered by The Road Home and prepared by an appraiser. 5. A Broker s Price Opinion (BPO) which is an estimate provided by a real estate broker and includes a drive-by of the property. What documents will I sign at closing? To receive full funding for Road Home compensation, you will sign a Sold Home Grant Agreement which is similar to the one that is signed by applicants who choose Option 2. This agreement requires you to own and occupy another home in Louisiana within three years of the date of closing. If you do not wish to remain a homeowner in the State of Louisiana, you may sign an agreement that is similar to the Option 3 agreement. It does not require you to purchase another home, but results in a reduced grant amount. This calculation is based on a 40% reduction of the pre-storm amount, unless you were 65 or older at the time of the storm or you have a military exemption. Subrogation Definition: Subrogation: Subrogation is the substitution of one person in the place of another with respect to a legal claim so the substituted party gains the rights of the original party. With regard to a homeowner s Road Home compensation grant, this means that the homeowner agrees to repay to the State any portion of their grant that is later duplicated by additional insurance payout. 51

Why does the applicant have to hand over additional insurance proceeds received after their closing? Additional federal assistance and insurance proceeds up to the amount of their Road Home award may be a duplication of benefits. Pursuant to federal statute and HUD requirement for the CDBG program, 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. Will the applicant be required to subrogate future insurance payments if they exceed the grant award they received? No, applicants are only required to subrogate insurance payments up to the amount of the total Road Home award and only that amount, as determined by The Road Home program. Who should the homeowner or insurance company contact if they have questions or wish to report additional insurance payments? Applicants and insurance companies should call 1.888.401.9109, which is the designated hotline set up by The Road Home to handle all subrogation inquiries and to report additional insurance payments. Taxes Will the applicant pay taxes on capital gains if the State purchases their home? 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 should contact the IRS, an accountant, or their tax advisor directly. 52