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Disaster Recovery Workshop for States. From Plan to Implementation: Lessons Learned. Overview of The Road Home. Hurricanes Katrina and Rita City of New Orleans. Primary Program Design Factors. Designed to: Help Louisiana residents get back into their homes
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Disaster Recovery Workshop for States From Plan to Implementation: Lessons Learned Overview of The Road Home
Primary Program Design Factors • Designed to: • Help Louisiana residents get back into their homes • Compensate for the uncompensated losses due to Hurricanes Katrina and Rita • Bring residents back to Louisiana
Eligibility • Owner-occupant as of date of storm* • Owners whose homes sustained at least major damage from Katrina or Rita (as defined by FEMA) • *includes duplexes if owner occupied one of units
Updated Eligibility Policies • Homeowners on leased land(including Mobile Homes) • Homeowners who have sold home • (considered once current homeowners are served) • New homeowners of damaged home • (if original owner assigns Road Home rights at purchase) • Homeowners who were in rent-to-own situation but now fully own the damaged home • Over 100 changes since the program began
Road Home Award Compensation Award • Up to $150,000 • Depends upon: • the pre-storm value of your home • the cost of damage to the home, and • the insurance and/or FEMA benefits the homeowner has received • If the basic compensation grant is less than $150,000, the homeowner may be able to access additional funding options
Road Home Options OPTION 1 STAY OPTION 2 RELOCATE OPTION 3 SELL OPTION 4 DECLINE ASSISTANCE
Road Home Options OPTION 1 STAY Stay in your home. Keep the damaged home and property you own (rather than selling it) and receive compensation to help rebuild or repair.
Award Calculation – Option 1 Stay to Rebuild/Repair Pre-storm Value Cost of Damages lesser of Not to exceed $150,000 (deduct insurance proceeds & FEMA) Compensation Award* *30% penalty for no insurance
Road Home Options OPTION 2 RELOCATE Remain a resident of the State of Louisiana, but relocate to another home within the State.TheRoad Home will purchase your home and property on behalf of the State of Louisiana.
Award Calculation – Option 2 Relocate Home less than 51% damaged: Lesser of Pre-storm Value or Cost of Damage Home 51% or > damaged per RH: Pre-storm Value Not to exceed $150,000 (deduct insurance proceeds & FEMA dollars received for structure) Compensation Award
Road Home Options OPTION 3 SELL • Sell your home and choose not to remain a homeowner in the State.TheRoad Home will purchase your home and property on behalf of the State of Louisiana with no restrictions for homeownership upon relocation. • Under this option, you may receive less compensation than Option 1 or Option 2 (unless an owner-occupant was 65 years of age or older as of December 31, 2005).
Award Calculation – Option 3 Sell Home – Without being a LA homeowner in the future Home less than 51% damaged: Lesser of 60% of Pre-storm Value or Cost of Damage Home 51% or > damaged per RH: 60% of Pre-storm Value (deduct insurance proceeds & FEMA dollars received for structure) Compensation Award Not to exceed $150,000
Road Home Options OPTION 4 DECLINE ASSISTANCE • Decline assistance from The Road Home. • If you choose to decline assistance, you forfeit the Federal assistance you are eligible to receive from The Road Home.
Comparisons • HUD funds 1,200 grantees each year • 1,200 average of 8 staff each = 9,600 staff • Louisiana has less than 60 staff • Those 1,200 disburse 4.7 billion yearly • The Louisiana Road Home has disbursed nearly 6 billion in a years time and nearly 2 more billion in their other programs • Louisiana and Seattle • 780,000 Louisianans' temporarily displaced from home • Seattle 2006 population = 582,454 • 160,000 homes suffered major or severe damage • Seattle owner occupied housing = 125,151
Top 10 Lessons Learned • Complete as much of program design up front prior to launch (make few changes) • Develop a tracking and accounting system before you launch program • Get as much public support for what you are doing up front • Develop a compensation model that is easy to calculate • Develop a program in phases • Set deadlines and time tables upfront • Set realistic goals at the beginning and have everyone support those goals • Have Policy makers and Implementers at the table together to better understand each other • Hire more than you think you need of knowledgably CDBG staff early in the program design • Hire HR, IT and Contract staff early to assist in the recruitment of new employees