Resource Email Attachment FOIA May 5, 2017:
(Third Appropriation Scenarios 05052017final.pdf)

Third Appropriation Funding Scenarios.

Context: It is possible the State of Louisiana will receive an allocation from the Department of Housing and Urban Development (HUD) out of the $400 million in disaster assistance appropriated by Congress. At this time, it is unknown how much will be allocated to Louisiana. The following information provides some funding considerations, should Louisiana receive additional disaster assistance.

Additional Funding Needs Considerations:

Current program budgets:

1) Homeowners and Renters: Unmet need is at least $1.3 billion for major/severe damages, after accounting for the first two appropriations.

Per requirements established by the Department of Housing and Urban Development, the state must consider the proportion of assistance provided to homeowner and renter programs, based on the unmet needs assessment presented to HUD in the Action Plan Amendment 1. The table below breaks out the relative unmet needs by program area:

For example, if Louisiana is awarded $200 million, the state must consider the percentages of unmet needs (listed above) when distributing the funding. See the scenarios below for a few examples:
A) If the state decided to dedicate the entire allocation toward housing programs, then a minimum of $18 million-$19 million would be allocated toward rental/homelessness programs, while $181 million $182 million would be available for homeowner programs.

B) If the state were to decide to dedicate a portion of the funds toward infrastructure activities, leaving $125 million for housing activities, a minimum of $11.75 million-$13 million would be allocated toward rental/homelessness programs and $112 million-$113.25 million would be available for homeowner programs.

Impacted Homeowner Populations and Homeowner Budget scenarios

Budget and Population Assumptions:

• Only homeowners with major or severe damages ($8,000 FEMA Verified Loss or at least 1 foot of flooding in the house)
• Inclusive of anticipated 15% project delivery costs
• Inclusive of anticipated environmental review costs
• Deducts duplication of benefits from Small Business Administration (SBA), Federal Emergency Management Agency (FEMA) and National Flood Insurance Program (NFIP), as applicable
• Dual-tier award structure for prospective work and reimbursement awards
• 10% non-participation- based on past programs, we may assume a minimum of 10% of the population will fall out of the program for reasons such as:
  • loss of interest
  • zero award in final calculation
  • additional duplication of benefits identified through processing
  • homeowners with incomes greater than 120% of area median income (AMI) may be unable to secure the gap funding needed to complete the prospective work

Note &ndash The budgets in the table below account for the program delivery costs necessary to process all applicant files, including homeowner files where homeowners drop out of the program.

2) Hazard Mitigation Grant Program (FEMA Match): $94 million

Approximate Unmet Need: $94 million

3) Comite River Diversion Canal Project: $190 million

Approximate Unmet Need: $190 million

4) Resilient Infrastructure Projects: $600 million

Resources: 

• Email OCD-DRU to Task Force and others May 2017