Work Scope Deferment State of Louisiana Restore Program in detail with research notes.

FAQ#: 145 published 7-28-2019

SCOPE DEFERMENT

Homeowners who cannot fulfill their escrow or homeowner responsibility obligations at the time of grant execution may be eligible for Scope Deferment to the extent that their eligible repair scope includes items that are non-essential for occupancy or habitability. Scope Deferment is not intended to remove the cost of the scope item from the responsibility of the homeowner, but rather to defer the work to the end of the construction project.

Restore Louisiana may be able to defer part of the escrow or homeowner responsibility amount by moving some items listed on the Estimated Cost of Repairs (ECR) to the end of the construction project for the homeowner to complete on their own. Deferring scope items to the end of the construction project does NOT remove the item (and the associated cost) from the homeowner’s scope. All deferred scope items MUST be completed. The standard list of repair items eligible for Scope Deferment includes but is not limited to:

  • Interior painting of walls
  • Interior painting of ceilings
  • Interior painting of baseboards / trim / doors
  • Carpet or vinyl flooring

Homeowners are encouraged to work with their assigned CTA or case manager to determine if Scope Deferment would be an appropriate option. Homeowners who are eligible for Scope Deferment must sign a Scope Deferment Acknowledgment Form confirming their understanding of the policy and agreeing to complete deferred scope items at a later time.

UNDERSTANDING "HOMEOWNER RESPONSIBILITY" OR "ESCROW"

SOLUTION 1: PROGRAM-MANAGED CONSTRUCTION

  • The "required escrow" funds referenced in the Award Acknowledgment must be submitted to the Program during the closing appointment in the form of a cashier's check. These funds are matched with grant funds from the Program to ensure the repair / reconstruction project is fully funded and complete.

  • For Solution 1 homeowners, Scope Deferment will allow the Program contractor to begin construction without requiring an up-front deposit of escrow equal to the amount of deferred scope line items (net). Please note that the payment of any escrow amount that can't be deferred will still be required before construction may begin, and homeowners must complete all deferred scope items at the end of the construction project.

SOLUTION 2: HOMEOWNER-MANAGED CONSTRUCTION

  • The "homeowner responsibility" amount referenced in the Award Acknowledgement must be spent on home repairs listed in the Estimated Cost of Repairs (ECR) prior to receiving Program grant funds. Once the Program inspects and confirms completion of items in the ECR totaling more than the homeowner responsibility, grant funds may be disbursed in accordance with items and costs outlined in the grant agreement.
  • For Solution 2 homeowners, Scope Deferment will reduce the amount of homeowner responsibility funds that an applicant must invest in the construction project before they are able to begin receiving grant disbursements. Please note that homeowners must complete all deferred scope items at the end of the construction project.

Editors Note: Some Case Workers and Managers within the Restore Louisiana Homeowners Program are telling homeowners that their scope deferment can be paid or completed 10 or 20 years after the home is complete. This is FALSE INFORMATION. Your Deferment is to be paid or completed at the end of your construction project. Solution 2 will have 360 days from grant closing and Solution 1 typically has 120 days based on contractors contract with the state on how quickly they have to complete your home. No documents have been provided that homeowners have 10 to 20 years to pay recapture or homeowners responsibility. 

 

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