Rule Changes Expected to Boost Road Home Program

August 5, 2013

Federal officials have approved three policy changes to the Louisiana Road Home program that will provide relief to families who have spent at least part their grant under the program but been unable to rebuild and reoccupy homes damaged by hurricanes Katrina and Rita in 2005.The waters path Hurricane Katrina

Under rule changes approved by the Department of Housing and Urban Development, the state agency administering the Road Home program is allowed to offer new grants to homeowners and write off outstanding debt in an effort to bring more homes into compliance with the state recovery program.

Pat Forbes executive director of the Louisiana Office of Community Development, told The Advocate the changes should permit property owners to complete reconstruction of their homes.

Details of the changes include:

  • The first applies to homeowners who owe money to the program or who closed on their grant, but have not fulfilled the terms because of reasons beyond their control, including contractor fraud, involuntary forced mortgage payoff, theft or vandalism, damage before repairs were completed and installation of contaminated drywall. If a homeowner can provide documentation, the state can subtract that amount of the damage from the total the homeowner owes to the state.
  • The second amendment allows for a loan repayment grant of up to $150,000 per applicant that can be used to repay the principal on a construction loan to finish repairs. Homeowners would have to be able to qualify for such a loan to be accepted into the grant program.
  • The third change attempts to fix the state’s elevation award program. The new rule allows homeowners who had to use Road Home elevation grants to instead make repairs to their homes to subtract the amount paid for those repairs from the amount owed to the state. The program applies only to homeowners still identified as noncompliant under program rules.

Letters will go out to homeowners who are not in compliance with the Road Home grant agreement beginning Aug. 26. The letter will contain a “compliance questionnaire” that must be completed and returned.

“Our staff can work with the homeowners to determine if they qualify for any of these additional tools and what their best path to compliance will be,” Forbes said. “The important thing is for the homeowner to touch base with the program staff.”

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