Louisiana OCD-DRU Hardship Criteria for Homeowner Populations with Incomes Exceeding 120 percent AMI

Published 7-26-2019 search group Hardship

The state proposes the below hardship criteria representing situations in which it may determine it is both necessary and reasonable to provide CDBG-DR assistance households with incomes exceeding 120% AMI who drew SBA funds:

  • Hardship due to housing cost burden.
    Individuals who spend more than 30% of their monthly gross income on housing costs are expected to experience hardship in recovery due to having limited financial resources
  • Hardship due to SBA loan repayment.
    Individuals who spend more than 15% of their monthly discretionary income on SBA loan repayment are expected to experience hardship in recovery due to having limited financial resources
  • Hardship due to advanced age.
    Individuals who are of an advanced age and are retired or for whom retirement is expected during the repayment period of the SBA loan. The reduced income or anticipated reduction of income that comes with retirement is likely to cause a hardship during the loan repayment period
  • Hardship due to cost of caring for dependents. Homeowners responsible for providing care to parents, children, grandchildren, and other dependents have long-term financial commitments to consider when contemplating incurring additional debt. Additional debt would be a burden and limit available resources needed to provide for dependents
  • Hardship due to major illness and/or death of wage earner. Households that have experienced a major illness or death of a household wage earner are anticipated to experience hardship in repaying SBA loans and completing recovery
  • Hardship due to costs associated with higher education for self or dependents. Tuition and living expenses for dependents in higher education present significant financial needs to homeowners. Household resources are strained to accommodate education-related expenses and homeowners may not have adequate monthly cash flow to support an additional note
  • Hardship due to loss of employment or reduction in income. A loss of income or job following the qualifying disaster event can impact the ability to repay a loan
  • Hardship due to costs associated with disability and/or special needs. Additional costs related to evacuation, relocation, and rebuilding for a disabled/special needs household puts an increased burden on financial resources that might otherwise be contributed to recovery
  • Hardship due to depletion of retirement account. Households who withdraw funds from their retirement account(s) after the qualifying disaster are anticipated to experience hardship during the repayment period of their SBA loan due to the loss of future retirement income.

The state of Louisiana adds the following line to Action Plan Amendment 12.

Additional criteria may be added or considered on a case-by-case basis. Should this scenario arise, the state will consult with appropriate HUD representatives for guidance prior to calculating any award adjustment.

 

Research Resources: 

 

Thank you for reading. Use the message form below to send your Comment, Suggestion, Feedback, Opinion and Content Request.

No inspection from FEMA? Registered and reported Minor Damage but able to live in my home? Only Remote Telephone Inspection? Home Repair Funds less than actual repairs?

#454 published 12-27-2022 updated 3-4-2023 1 min. 9 seconds read, search group Inspection.

Continue Reading


If your manufactured home was damaged or developed unhealthy living conditions after a declared disaster due to the disaster can I receive a grant to replace my mobile home?

#443 published 1-23-2023 updated 3-4-2023 1 min. 26 seconds read, search group Manufactured Home.

Continue Reading


Restore Louisiana Homeowner Assistance Program will provide assistance to homeowners who need to demolish and reconstruct their disaster damaged home.

#449 published 1-14-2023 26 seconds read, search group Damage.

Continue Reading


How to use our Research Based Learning pages to better understand a subject, to collect the missing pieces of the puzzle, to start a research project or to close out your research project. Resources published here are parts or segments of..

#1 published 12-30-2018 updated 12-12-2020 1 min. 55 seconds read, search group HowToResearch.

Continue Reading


INTERNSHIP OPPORTUNITY: NON-PAID OVERWORKED NONPARTISAN

#241 published 4-23-2020 1 min. 9 seconds read, search group PSA.

Continue Reading


SBA Updates data processed from research between 11-2019 and 12-2019

#183 published 1-18-2020 3 min. 25 seconds read, search group SBALoans.

Continue Reading


CDBG DR Award calculation letter determination on the eligibility of your grant.

#182 published 12-26-2019 2 min. 42 seconds read, search group GrantAwardLetter.

Continue Reading


State of Louisiana Restore LA Program managed by the OCD-DRU says it will not pay interest on SBA loans.

#181 published 12-15-2019 2 min. 40 seconds read, search group HUDGuidance.

Continue Reading


Understanding your SBA Phase and following the HUD disbursements of funds to pay off or pay down your SBA loan

#180 published 12-10-2019 3 min. 34 seconds read, search group SBA.

Continue Reading


Questions for Congressman Graves Live Facebook event 12-5-2019

#179 published 12-5-2019 4 min. 24 seconds read, search group Transparency.

Continue Reading