State of Louisiana takes first steps to drop homeowners required to elevate and reconstruct their homes. In a June email homeowners were told grants will be rescinded of you do not select a contractor by July 31, 2019.
You are receiving this notification because you have not closed on your grant award offered by Restore Louisiana.
Please note that you MUST execute your grant agreement by Wednesday, July 31, 2019 or the grant offered will be rescinded and you will no longer be able to participate in the Restore Louisiana Homeowner Assistance Program. "
According to reports filed for April and May the state of Louisiana Office of Community Development Disaster Recovery Unit working under the name of Restore Louisiana Homeowners Program has increased it's speed of processing grant awards by increasing the number of rescinded grants offered to homeowners.
April of 2019, 30 homeowners have had their HUD CDBG-DR grant awards rescinded by the state for state created policy reasons.
May of 2019 278 homeowners have had their HUD CDBG-DR grant awards rescinded by the state for state created policy reasons.
The state of Louisiana's timing will match the 3rd year since the flood and fall on or close to the anniversary date of the August 12th 2016 floods.
It appears the state has not formally offered homeowners with alternatives to their recovery. With over 2,000 homeowners at risk of losing everything from the flood to include all additional grant funds for unmet needs the state will face additional homelessness and blight as a result of meeting goals and deadline.
HUD officially allows the state to run the distribution of funds up and to the Sept. 2022. The state of Louisiana OCD-DRU has announced several times the closing dates of programs in 2018 and continues by rewording the closing of programs to the rescinding of grant awards.
"Elsewhere, this notice describes the extension of the expenditure deadline that the Department is authorized to provide to all CDBG-NDR (NDR = National Disaster Resilience) grantees, allowing them to expend funds until September 30, 2022. "
Grantee Name: Louisiana
Grant Number: B-16-DL-22_0001
Grant Award: $1,708,407,000
Average of March, April, May Spending: $23,334,110
Grantee Spending Status: On Pace
NOTE: On Pace = Spending greater than the monthly pace required to fully use the grant by target closeout date.