State of Louisiana OCD-DRU Action Plan Amendment 12 asks HUD for approval to change SBA Loan repayment multiplier based on hardship matches.

APA 12, Page 19 the State of Louisiana Office of Community Development spells out hardships only after it spells out the option to change the repayment multiplier from 0.50 to anything between 0.0 and 100.

"Dependent on the proportion of applicants with incomes in excess of 120% AMI who also meet one or more of the approved hardship criteria, the state reserves the right to adjust this multiplier accordingly if it can do so and remain within required overall LMI benefit parameters."

Hardship Criteria for Homeowner Populations with Incomes Exceeding 120% AMI.

• 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 information provided on page 19 of the Restore Louisiana Homeowners Program Action Plan Amendment 12 appears to not include young, healthy singles, couples in the >120% AMI income bracket. This could be offset by repealing some programs for Economic Development and Infrastructure not targeted to the below 80% AMI Community.

Research Resource:

• Restore Louisiana Homeowners Program Action Plan Amendment 12

FAQ No. 158    

Date: 8-15-2019 Updated: 8-15-2019 Subject: SBALoans

We need people to help spread the word and assist us in our public public awareness campaign this weekend and all into next week.

The Campaign is to share with the public the promise Governor John Bel Edwards made to the people of Louisiana and to the Task Force as well as to his appointed head of OCD-DRU who controls the Restore Program Patrick Forbes.

The Governor said one thing July 13, 2018 that was later put into print by Director Forbes group and sent to HUD by Lori Dupont who is the Executive Assistant to Patrick Forbes. All was in balance with the world, $683 million was to be held, less $110 million for the 50% to 100% increase in reimbursements.

It was working smoothly, just needed to wait for HUD Guidance which we received June 12, 2019.
But it wasn't smooth, it wasn't public, it was a backroom rewrite of the promise made by Governor Edwards in his opening address. His executive agency Office of Community Development - DRU made a big mistake with numbers and it was Kim Jupiter who sent to HUD an updated version of Action Plan Amendment 9 that removed the promise to hold money until HUD Guidance was issued.

It's not a surprise to many the state has a difficult time budgeting money. Simple math could have had the LSU professors of economics running up the red flag. But the day (July 12, 2018) before the public dog and pony show no one was checking the numbers. It all sounded good.

• Limit total disaster victims to under 16,000, Check!
• Keep the total payout of grants under $580 million, Check!
• Promise the people $683 will be held until HUD Guidance is released, Check!
• Put the the plan to hold $683 million in the Action Plan 9 and send it to HUD, OOPS!

So they lied to you, it wasn't possible, you think the budget of the 55% is off by $64 million today could you imagine if $683 million of $1.7 million was promised to the people and 55% of that had to go to low- to moderate-income people?
It's all speculation to why the Governor promised to hold the money, the director of OCD-DRU promised to hold the money and then they changed their minds 2 days later.
Could it be from the emails sent wanting to close the program that fall?

This is your fight, this is the peoples fight. If you ever have paid a penny in federal taxes this is your fight.
The State of Louisiana promised to wait for HUD Guidance, they published APA 9 with the promise then they changed the plan and didn't inform you the public.

Is this the new politics we are going to except for the rest of our lives? $55 million here, $700 million there, $64 million SBA gone without a trace between July and Dec. 2018. Why do we not have government accountability when it comes to the people?

Governor Edwards and his agency OCD-DRU didn't keep the promise made to you last July, 2018.
Can someone in the Governors Office address this issue and explain why that promise made in APA 9 was changed?

Action Plan Amendment 9 Changed without public notice.

Editors Note: I'll need to work with those that feel up to cross posting in all state representatives state government Facebook pages. I'll be pushing toward news and national. I do want feed back on how it reads. If you are a SBA person this is most likely the most important information of your 2016 flood recovery. Please, if you do not understand ask for clarification. You have to understand, everyone recovering from a disaster has to understand this issue on all levels.

Thanks

FAQ No. 157    

Date: 8-9-2019 Updated: 8-9-2019 Subject: Transparency

HUD CDBG-DR offers a program called, "Interim Mortgage Assistance."

Your state Grantee can at anytime after the declared disaster request this program be activated by HUD.

The Interim Mortgage Assistance is designed to help you save money for your repairs by paying for your mortgage during the period of time you can not inhabit your home.

HUD offers up to $3,000 per month for 20 months with a total payout capped at $60,000.

Many state grantees like here in Louisiana will not offer this early in the program from what looks like a fear to pay too much to homeowners assistance. This type of thinking by elected and appointed persons isn't placing the homeowner first in their disaster recovery process.

I am collecting information to present to HUD the issue we face with state grantees not providing this assistance early on in the recovery processes.

I am also collecting this information to present to Louisiana Governor the reason current policy should be at a minimum uncapped and retro to the date the restore program informed the homeowner if any additional repairs are made they will not be eligible for reimbursement. This clearly ended work for many homeowners with mortgage payments.

Policy also doesn't address those that lived with friends and family. Lived on their property in their personal RV's, campers, tents and their vehicles while paying a mortgage payment monthly on a home they could not safely live in.

The documents that I am in search of may have the following:

"By signing below, I/we acknowledge, and certify that I/we have been informed by a representative(s) of the Restore Louisiana Homeowners Assistance Program, that I/we may continue to make repairs to my/our home after the date of this Damage Assessment Inspection; however, any such repairs made after the date of this Damage Assessment Inspection are NOT eligible for reimbursement pursuant to the rules and regulations promulgated by the United States Department of Housing and Urban Development with respect for CDBG-DR grants. I/we acknowledge that, unless and until, any rules that establish the last date, after which, repairs made by me/us to our house ceases to be eligible for reimbursement as set forth in HUD Notice CPD-15-07, Dated 09/15/15, are extended by HUD, any repairs made by me/us after the date hereof will not be eligible for reimbursement under the Restore Louisiana Homeowners Assistance Program."

If you or someone you know was told to stop repairs and could not re-enter their home to live and continued to pay a mortgage please have them contact me using our contact page.

This applies to all states with a federal declared disaster currently working the HUD CDBG-DR grant program.

Research Resource:

• Grantee Damage Assistance and Determination Inspection.
  

FAQ No. 156    

Date: 8-9-2019 Updated: 8-9-2019 Subject: Questions

FAQ No. 155    

Date: 8-6-2019 Updated: 8-6-2019 Subject: RestoreLA

Louisiana Governor Edwards has limited space for Disaster Victims in his political agenda.

July 2018 Edwards increases reimbursement from 50% to 100%, takes little into consideration about homeowners.

Report: "Homeowner Program Reimbursement Expansion Recommendation Conference Call "

Governors Office: We've been running updates on our current numbers and projections regularly in the recent weeks, attempting to project based on historical responses to surveys and new survey respondents leading up to the deadline. We were able to update the numbers today and wanted to provide you with those figures.

We are projecting 10,230 will receive an additional grant through this program change, which will result in around $110 million in additional awards.

This accounts for around 64% of the projected total population (just under 16,000) assisted through this program and around 20% of the total projected dollar value of the awards ($537.2 million) that will be made to homeowners.

Task Force Member: My final question before tomorrows meeting; What encouraged the Governor's team to put the $110 million into additional awards for homeowners as opposed to infrastructure or economic development? I know you may not be able to answer, but I think someone from the Governor's team should be clear in their thinking.

Task Force Member: We know now that we have $1.2 billion coming for flood Risk Reduction Infrastructure Investments, so our need there at this point is less.

I am trying to visualize how well we have done in restoring homes in the state. I live in an area that was not flooded so I have no visual evidence that the storm even occurred based on what I see every day. If I went to the Central area, or to Livingston Parish, or to certain areas in other parishes, would I see evidence of homes that are still in great need of assistance? Are we going to spend all the money we have allocated to homeowners?

State: You would see lots of fully recovered homes, not all of them with our help, and you would also see some homes still not habitable, but not that many, I don't think.

To your second question, we are certainly going to spend it. Whether we spend it on the homeowner program depends in large part on whether we get relief from the SBA DOB problem. If we don't, we'll look to other recovery investments opportunities, likely in infrastructure, rental housing and economic development.

Task Force Member: It does not seem we have spent a lot of the money on homeowners at this time if I am reading the numbers right. Do we have a time table and we have not heard from HUD about the SBA DOB issue? How long do we wait before we start spending on rental housing? It seems that after a number of years, housing needs will not e as crucial, we could reimburse but that is about all.

State: I really appreciate your comments and questions. They're really getting at some of the issues we're struggling with. On the SBA issue, the Governor has said that we have to set a deadline after which work has to move on. That will be likely this fall. (2018)
As for the rental housing, that need is critical and will continue to be so regardless of our efforts, so that is never a bad investment.

NNNNN END REPORT

Resources available:

FAQ No. 154    

Date: 8-5-2019 Updated: 8-5-2019 Subject: Transparency

Town Hall Meeting 6:30 pm Monday 8-5-2019 Public Questions

@ Jones Creek Regional Branch Library
6222 Jones Creek Road, Baton Rouge, Louisiana 70817

1. Can Restore Louisiana hold things you say in a public forum or in a social media group against you and your household?
2. Can the program collect information about you from social media posts and use this information within the program against you or to single you out?
3. OCD-DRU Legal and Management says if they determine you are not cooperative with them, their procedures, policy, or methods they can rescind your grant. So if a homeowner questions authority, the same authority can say the homeowner is not cooperating and terminate the grant, is this correct?
4. Why are the >120 percent AMI groups being penalized and only being offered half of what others are being offered?
5. Why are the >120 percent AMI groups made to wait longer for repayment?
6. Can the >120 percent AMI groups reasonably expect to receive checks to repay SBA Loans?
7. Why don't we go ahead and handle those who took less than offered by the SBA, regardless of AMI?
8. What time period or tax year is the Restore program using to calculation AMI?
9. We have had a loss of income because of the flood and have not returned to our previous adjusted gross income levels. Why is the state using 2015 tax returns instead of our actual tax returns for the 2016 year to calculate AMI?
10. I'm on a fixed income, over 60 years of age and was told to apply for an SBA. Our home was paid off, FEMA promised $33k but only delivered $15k. We had no flood insurance and were basically forced to take the SBA loan. None of this makes sense to me and the Restore Program people are not answer my questions.
    1. What is the actual timelines we should expect to see for SBA repayment checks to arrive?
    2. When will the Restore Program review for additional unmet needs and possible reimbursement for repairs we made out of pocket after the SBA loans are paid in full?
11. The first allocations of CDBG-DR grant funding was focused on homeowners living outside the flood zone, had no flood insurance, over 60 or disabled. Using this same methodology we could say all homeowners who did not live in a flood zone would have SBA repayment 100%. Those who had no flood insurance and lived outside of a flood zone would have 100% repayment. Those over 60 or on fixed incomes or disabled would have their SBA loans paid in full. Then those below 80% would be handled and after that all other groups.
    1. What would keep the state from distributing HUD Grant funds using this method?
    2. If the program funding is the question we can ask the governor to repeal Action Plan Amendment 11 for the $172 million to fund the original SBA issue before funding other programs as the governor promised at the task force meeting in July 2018.
12. Many households who did not take SBA Loans received grant money regardless of AMI. Why is AMI now a factor in Action Plan Amendment 12 when it didn't apply to the households that declined the SBA loans?
13. Can you show us an example on how AMI is calculated?
14. When applying for the hardships, how many of the listed criteria in Action Plan Amendment 12 do you have to meet in order to be eligible for a hardship?
15. Why is AMI even a factor? The flood didn't discriminate.("Repeal and Replace APA 11.")
16. Why did the Restore Program re-open the application process when Governor Edwards increased reimbursements from 50% to 100% adding an estimated 1,200 additional households to the program if he knew the program would be short nearly $110 million to repay SBA loans?
17. Why did the Governor say at the Task Force Meeting in July 2018 that the state would do nothing before HUD Guidance was issued and then have his appointed director and task force say they were looking at closing the program for all solutions in the fall of 2018?
18. If I sell my home today, am I still eligible to receive Restore Funds for my SBA Loan as Solution 3 homeowners who sold their homes and were reimbursed for their repairs?
19. Do I have to stay in my home and wait for the state and HUD to decide if they will offer any SBA repayment money to me or can I sell my home, move on with my life and see a reimbursement check later if the state and HUD rule in my favor?
20. We are below 80% AMI, SBA approved us for $80,000 and we drew down only $50,000 and paid it back already, would the Restore program reimburse us for our $50,000 SBA Loan that we paid off?
    
    Same question but for 80% to 120% AMI using current HUD Guidance as our rule.
    1. We are between 80% and 120% AMI, SBA approved us for $80,000 and we drew down only $50,000 and paid it back already would the Restore program reimburse us for our $50,000 SBA Loan that we paid off?
    2. We are greater than >120% AMI, we only drew down part of our total approved SBA Loan and we paid it off in full. Public Law 115-123 shows we are not to be penalized the difference between what was approved and what we drew down from the SBA ($30k). Will our grant be recalculated to show only the $50k in SBA DOB and will Restore then reimburse us the money we paid out of pocket for all the unmet needs that was over our drawn SBA loan amount?
21. We took only a portion of our SBA loan, $50,000 of the $80,000 approved and since paid back the loan in full with interest from our savings. Under the new Guidance from HUD when we sign the agreement to not draw SBA funds again will the Restore program reimburse us for our personal funds used as repayment to the SBA? Will the Restore program then recalculate additional repairs paid out of pocket and additional unmet needs?
22. If they already have guidelines and approved guidance for SBA, when will disbursements start for people less than 120% AMI and only drew some of the approved loan amount from SBA?
23. Would you explain in detail but also in simple terms why the >120 percent AMI community is last to be reviewed for HUD repayments?
24. Can you also explain in detail but in simple terms why the >120 percent community is only eligible for 50% of their SBA loans?

FAQ No. 153    

Date: 8-5-2019 Updated: 8-5-2019 Subject: Questions

VERBAL COMMENTS FROM THE PUBLIC MEETINGS ARE COPIED BELOW. THESE COMMENTS WERE ADDRESSED BY OCD-DRU STAFF DURING THE PUBLIC MEETINGS.

MEMORANDUM

TO: Lauren Nichols, State of Louisiana OCD-DRU
FROM: Seth Magden, GCR Inc.
SUBJECT: Action Plan Amendment No. 1 Public Meeting Comments
DATE: February 16, 2017

OCD-DRU staff attended the four public meetings for Action Plan Amendment No. 1. in Lafayette Parish (Youngsville), East Baton Rouge Parish, Lincoln Parish (Ruston), and Washington Parish (Franklinton), and has complied the below summary of the public comments captured at the meetings.

3. Questions and comments about homeowner program solutions:

• For solution No.1, where the state runs the contractor – who ensures that quality work is done well?
• Are economy grade materials compliant with parish building codes?
• I want to use my contractor and want it fixed just the way I had it before the flood? Is this an option?
• Will there be funding for folks to raise their homes?

FAQ No. 152    

Date: 8-4-2019 Updated: 8-4-2019 Subject: Questions

VERBAL COMMENTS FROM THE PUBLIC MEETINGS ARE COPIED BELOW. THESE COMMENTS WERE ADDRESSED BY OCD-DRU STAFF DURING THE PUBLIC MEETINGS.

MEMORANDUM

TO: Lauren Nichols, State of Louisiana OCD-DRU
FROM: Seth Magden, GCR Inc.
SUBJECT: Action Plan Amendment No. 1 Public Meeting Comments
DATE: February 16, 2017

OCD-DRU staff attended the four public meetings for Action Plan Amendment No. 1. in Lafayette Parish (Youngsville), East Baton Rouge Parish, Lincoln Parish (Ruston), and Washington Parish (Franklinton), and has complied the below summary of the public comments captured at the meetings.

2. Questions and comments about reimbursement program:

• Can we get reimbursed for things that we are already getting reimbursed for that we already paid local match for?
• As a homeowner who has partially finished and needs to be reimbursed, how do I do that?
• Will you need receipts to be reimbursed?
• Can we get reimbursed for money we pulled out of our 401k?
• Are going to send someone out to look at the SOW to establish reimbursement value?
• I got an SBA loan, I live in Youngsville, lost everything, depleted my savings. After what they gave, I still need another 20k to get to livable – I ran out of funds but am back in the house; I still have to pay the note -the mortgage companies put it on the back end and then when you go to restart they want a full payment to catch up; Will reimbursement address some of these things?
• What / who will verify what work is left to do – i.e. verify the scope of work remaining?

FAQ No. 151    

Date: 8-4-2019 Updated: 8-4-2019 Subject: Questions

VERBAL COMMENTS FROM THE PUBLIC MEETINGS ARE COPIED BELOW. THESE COMMENTS WERE ADDRESSED BY OCD-DRU STAFF DURING THE PUBLIC MEETINGS.

MEMORANDUM

TO: Lauren Nichols, State of Louisiana OCD-DRU
FROM: Seth Magden, GCR Inc.
SUBJECT: Action Plan Amendment No. 1 Public Meeting Comments
DATE: February 16, 2017

OCD-DRU staff attended the four public meetings for Action Plan Amendment No. 1. in Lafayette Parish (Youngsville), East Baton Rouge Parish, Lincoln Parish (Ruston), and Washington Parish (Franklinton), and has complied the below summary of the public comments captured at the meetings.

1. General questions / comments about RLHP:

• Is there a location that applicants can go sign up for information? Will the state coordinate with FEMA to contact those applicants who already applied to FEMA
• How will an applicant know if you are eligible?
• We need our delegation to understand that we are being forced to make a decision between having food, medicine or flood insurance.
• Will there be a process in place to help people who are elderly and disabled, who don't have the mental capacity to understand?
• If a homeowner had granite countertops, will they be replaced with granite?
• My husband is a technology consultant from home, and he lost all his computers at home – would that be covered by this program?
• If someone hasn't been able to pursue assistance due to illness, and they haven't been able to get help, and haven't done any repairs, will they be eligible for this program?
• What is the timeline for assessment, disbursement, and implementation and who is going to be the program manager?
• Will Native American folks be prioritized?
• Were people on the task force impacted personally by this flood?
• Is LA-OCD-DRU going to handle all grant dollars?
• Are there medical services being provided for counseling?
• Has there been any collaboration between federal, state and lending institutions, and how we can look at refinancing as a tool to help folks in recovery?
• Will there be other public comment meetings?
• At the end of the rehab, must the home must be fully completed or just safe, secure and livable?
• Am I eligible for this if I am on a fixed income? I am below $8K a year.

FAQ No. 150    

Date: 8-4-2019 Updated: 8-4-2019 Subject: Questions

From: Brister, Sonya M
Sent: Friday, July 20, 2018 3:10 PM
To: Kim Jupiter Disaster_Recovery
Cc: Pat Forbes Stacy Bonnaffons Flanery, Ryan D Parker, Tennille S Martin, Erinn M
Burgess, Adriane T Jeff Haley
Subject: RE: Resubmission: Louisiana Submission of Great Floods Non-Substantial Action Plan
Amendment 9

Hello Mr. Forbes,
The Department has received and reviewed the State of Louisiana's non-substantial Action Plan Amendment (APA) 9. It is noted that APA 9 modifies the reimbursement award structure of the Restore Louisiana Homeowner Program, and provides a technical clarification of award caps related to certain components of the Program, including mobile homes and elevation in the cases of reconstruction. For the Restore Louisiana Homeowner Program, APA 9 increases the percentage of the award for eligible homeowners in Phases III VI from 50% to 100% of the eligible award amount. The Department notes that the implementation of the this amendment will affect the State's LMI overall benefit percentage, decreasing it from 63% to 58%, based on the State's estimate. While the State is currently on target to exceed the required overall benefit threshold of 55%, HUD will continue to closely monitor the State's progress in this area.

This email serves as HUD's acknowledgement of APA 9.

Thank you,
Sonya M. Brister
CPD Specialist
Office of Block Grant Assistance
Disaster Recovery and Special Issues Division
U.S. Department of Housing and Urban Development
500 Poydras Street, 9th Floor
New Orleans, LA 70130
Sonya.M.Brister@hud.gov
Phone: 504.671.3017
Mobile: 202.500.3034
Fax: 504.671.3019

FAQ No. 149    

Date: 8-3-2019 Updated: 8-3-2019 Subject: Transparency