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 –Compensate for the uncompensated losses due to Hurricanes Katrina and Rita –Bring residents back to Louisiana

Katrina & Rita Damage Assessment

Program Design Factors

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 OPTION 2 OPTION 3 OPTION 4 STAY RELOCATE SELL DECLINE ASSISTANCE

Road Home Options Stay in your home. Keep the damaged home and property you own (rather than selling it) and receive compensation to help rebuild or repair. OPTION 1 STAY

Award Calculation – Option 1 *30% penalty for no insurance Pre-storm ValueCost of Damages lesser of (deduct insurance proceeds & FEMA) Compensation Award* Stay to Rebuild/Repair Not to exceed $150,000

Road Home Options Remain a resident of the State of Louisiana, but relocate to another home within the State. The Road Home will purchase your home and property on behalf of the State of Louisiana. OPTION 2 RELOCATE

Award Calculation – Option 2 Relocate (deduct insurance proceeds & FEMA dollars received for structure) Compensation Award Not to exceed $150,000 Home 51% or > damaged per RH: Pre-storm Value Home less than 51% damaged: Lesser of Pre-storm Value or Cost of Damage

Road Home Options Sell your home and choose not to remain a homeowner in the State. The Road 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). OPTION 3 SELL

Award Calculation – Option 3 Sell Home – Without being a LA homeowner in the future (deduct insurance proceeds & FEMA dollars received for structure) Compensation Award Not to exceed $150,000 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

Road Home Options 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. OPTION 4 DECLINE ASSISTANCE

Application Status Program Update

Program Timeline

Program Requirements

Program Beneficiaries From over 27 different CDBG Programs

As of April 17, 2008

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 1.Complete as much of program design up front prior to launch (make few changes) 2.Develop a tracking and accounting system before you launch program 3.Get as much public support for what you are doing up front 4.Develop a compensation model that is easy to calculate 5.Develop a program in phases 6.Set deadlines and time tables upfront 7.Set realistic goals at the beginning and have everyone support those goals 8.Have Policy makers and Implementers at the table together to better understand each other 9.Hire more than you think you need of knowledgably CDBG staff early in the program design 10.Hire HR, IT and Contract staff early to assist in the recruitment of new employees