Research into SBA Loans Declined by Households that were below 80 percent AMI. (State of Louisiana)

FAQ#: 126 published 5-30-2019

From 2017 Research into SBA Loans Declined by Households that were below 80% AMI and did not sign the closing documents.

June 6, 2017 Third Appropriation Funding Recommendation - Conference Calls between Restore Louisiana Task Force Members:

"HUD allows the state to provide assistance to LMI homeowners who were approved an SBA loan, but declined it and never entered into a loan agreement with SBA. The cost of providing assistance to these homeowners is approximately an additional $5,152,000."

Additional research showed that in 2016 the state anticipated only 109 households would be in this category.

Follow up research first quarter of 2018 showed that the state did not have a process in place to notify homeowners that matched the "HUD" Nov. 16, 2011 Hardship Guidance and appeared to simply ignore the topic and allow the homeowners to think they had to wait for the Congressional SBA fix.

Follow up research 2nd quarter of 2018 an Advocate Reporter messaged me telling me the state closed the "Loophole" (His word) and no other hardships were being processed. This was the same time they changed Homeowners Assistance Director from a state employee to a temporary hire from CSRS Inc. by the name of Stacy Bonnaffons. As you all are aware, Stacy was the topic of a contract that did not get renewed because of a conflict of interest within the program and possible bid rigging. She has been cleared by the state ethics board but only for what was published. Could this actually be the person that denied Low to Moderate Income families their Recovery funds by not declaring hardships in accordance with HUD Guidance of Nov. 16, 2011?

Conclusion: Since management change that included temporary hires from CSRS Inc. no additional homeowners that qualified for a hardship waiver have reached out to me to report their status.

Fall of 2018, document requests identified what could be a minimum of 1,158 homeowners incorrectly classified under the Duplication of Benefits calculation for SBA loans. The states legal department headed up by Dan Rees by not responded to my request to research this issue has in my opinion allowed HUD Core Objectives to be ignored and has penalized Moderate to Low income families by not researching the 1,158 homeowners which the numbers (not names) were given to me by the same legal department in which Dan Rees works.

News media was informed about this issue and felt it was not "News Worthy" .

I would like to find ONE family, one family that applied for the SBA loan, then declined to accept the loan, did not sign the closing paperwork and is below the 80% AMI household income.

Help me find just one household that matches the Guidance from Nov. 16, 2011 and you may have just helped one thousands households recover after the flood.

I'm posting this because a law firm stated if you can prove damages they would represent the 1,158 in a class action. The damages are in the email, estimated $5,152,000 that may or may not have been allocated to low to moderate income families by the state during the time of CSRS Inc management.

Research Resources: 

  • Emails Lori Dupont to Louisiana Task Force Members.
  • HUD Allocations discussion and conference calls.
  • Various state sources under the FOIA.

 

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