[FoCHAT] CHATNews: HMGP Elevation Grant News from LRA, from applicants

Sat Dec 19 23:59:39 CST 2009

Dec. 19, 2009 

Dear CHAT Members, 

Last week, I related my discussion about the increase in the cap for Additional Compensation Grants (ACG) with state officials at the Louisiana Recovery Authority (LRA) Housing Task Force. 

I noted that often applicants were told they would get an ACG and then had their income unnecessarily re-determined. They were often subsequently deemed income-ineligible based on recalculation of their income 2 or 3 years after the hurricane/flood instead of 1 year afterwards. 

Here is what I wrote about the answer to my question from a top state (OCD) official, Lara Robertson. 

·          Ms. Robertson stated in answer to my question about whether there was a necessity for this recalculation that ACG income eligibility could have been determined at the initial interview and not re-determined at closing. There was no requirement for recalculation within 6 months of closing.   

A former member of the Appeals Dept. for ICF wrote to me as follows after my last CHATNews email. 

·         (This is a … LIE. We were repeatedly instructed in appeals that the income requirement had to be recalculated within 6 months of closing date – this is EXACTLY why people who were originally determined eligible for ACG were later denied.) 

So, indeed the change in the ACG rule is not taking care of many of the applicants most wronged by previous ACG calculation procedures. 

What about this week’s good news about HMGP elevation grants? 

The up-to-$100,000 Hazard Mitigation Grant Program (HMGP) elevation-and-reconstruction grants are only for those who are demolishing, elevating, and rebuilding. The up-to-$30,000 HMGP elevation grants are for those who are repairing and elevating. Both grants are only for costs minus any benefits (insurance for structural damage, RH elevation grant, ICC money, etc.). Both require large and very detailed documentation. 

Let’s look at the LRA statements about these new improvements in HMGP elevation grants as conveyed in the Times-Picayune. 

Faster road to recovery: An editorial 
http://www.nola.com/opinions/index.ssf/2009/12/faster_road_to_recovery_an_edi.html 

By Editorial page staff, The Times-Picayune 
December 18, 2009, 6:28AM 
Even as Louisiana has improved its awarding of hazard mitigation grants to Katrina victims, many homeowners have found themselves without the cash needed to start rebuilding or elevating their homes. 
That's in great part because the Hazard Mitigation Grant Program required them to pay up-front for much of their project before seeking reimbursement. Even some homeowners with means to afford a loan for the up-front costs saw their efforts stall because of the tight lending market. 
That is why the state's decision to change several program rules to try to speed up rebuilding is a welcome move. The new rules will let homeowners seek advance payment for half of their approved grants to launch their rebuilding efforts. People who choose that option will have to sign covenants and comply with other requirements. But the new policy should unlock tens of millions of dollars, accelerating the recovery of our region. 
That's clearly needed. More than 25,000 state homeowners have been approved for hazard mitigation grants, but only 175 have reached the half-way point in their projects and received part of their grant. More worrisome is that 1,800 homeowners withdrew from the program citing its delays and difficulties…. 

Advocacy groups for grant applicants deserve credit for documenting the problems homeowners face and pushing the state to make changes. State officials also deserve credit for being receptive to those complaints and revising the program. 

http://www.nola.com/hurricane/index.ssf/2009/12/hazard_mitigation_grant_progra.html 
Hazard Mitigation Grant Program rules changed to speed reconstruction, elevation 
By David Hammer, The Times-Picayune 
December 17, 2009,   
…It's now possible to get advance payment for half of an approved grant, rather than having to wait until an inspector confirms work is halfway done and fully completed before collecting two reimbursement payments. Homeowners who choose to collect advance payments will have to sign covenants and file their signed contract with their builder in the parish conveyance office.

Homeowners can now be credited for any portions of their Road Home or insurance proceeds that were lost to documented contractor fraud, instead of having the lost amounts deducted from their hazard mitigation grant as a duplication of benefits.

Those with smaller homes may be able to get grants to rebuild larger houses, rather than being limited to structures that are no more than 10 percent larger than what they had at the time of the storm…. 

Now, let’s consider my unanswered emails to Mr. Paul Rainwater, LRA Executive Director. 

From: Melanie Ehrlich <mehrlich8 at yahoo.com>
Subject: RE: Paul Rainwater from Melanie Ehrlich: HMGP Elevation Grant Rules
To: "Paul Rainwater" <>, "William Haygood" <William.Haygood at LA.GOV>
Cc: "Melanie Ehrlich" <mehrlich8 at yahoo.com>
Date: Thursday, October 8, 2009, 10:20 PM 

Bill, 

Thank you very much for this information.  

Paul and Bill, 

Thank you very much for still trying to get the waiver for the >110% sized homes. 

I am concerned about the ill-defined statement, which I had not seen until today, in these new guidelines about 

"Also, regardless of the sources or amounts of funding a Applicant receives, OCD, GOHSEP and FEMA review each project for cost reasonableness." 

This is consistent with an arbitrary-sounding denial of HMGP money to a CHAT applicant whose elevation was quite expensive and who already elevated. 

Cost reasonableness should be defined or there will be inconsistent and unfair treatment of elevation grant applicants, as we are starting to hear. 

Looking forward to some clarification to prevent broken promises about HMGP elevation award amounts, 

Melanie 

 Usually Mr. Rainwater gives me some type of quick answer to my emails right away. This one got none and when I resent it this week with a thank you for the new HMGP rules, I still received no answer. 

Lastly, the applicants, who are the often overlooked reason for all these federally funded programs, should not be overlooked. Here is what some of them wrote this week on a NO yahoo group after the Times-Picayune article appeared. 

http://groups.yahoo.com/group/rebuild_lakeview/message/31379 

HMGP Grant 

#1 

I was told by my HGMP person (Ann) that we have been denied because of duplicate of benefits.  That the calculation for FEMA reimbursement was between $84 and $92 a sqft.  I explained to her that I would love to know what contractor would be willing to build a house to the BFE level for that price.  It is unrealistic to think that could happen.  

She explained to me that many in her office had agreed and that 95% of the applicants would not qualify for the rebuilding portion of the HGMP.  

 I did ask her where the people where located that did qualify for either the elevation or rebuilding program.  Some homeowners in Kenner had made the cut.  Did Kenner flood?  I know that we are not entitled to anything of course, but my family was one of the pioneers.  We couldn't get workers to build our house fast enough.  Not to mention how much they were charging.  After working on this grant program since April, I just have washed my hands of it… 
 ________________________________________________________________________ 
#2 

We filled out the application for HMGP and attached something like $180K of receipts to the application.  Out of that $180K, $127K were approved as falling under the requirements of the program for being reimbursable.  Time went by and that number was reduced to $92K.  Then we get random phone calls saying that we don't qualify for anything because the house wasn't elevated and other random false accusations.  Each time we point to the specific piece of paper in the hundreds of pieces of documentation we have submitted that proves that the accusation is false and that we do meet the requirements of the program.  At some point my mother started calling them instead of just waiting to hear from them.  During one of these phone calls she was told that we should have already gotten the first half of the amount.  We haven't gotten anything.  During another phone call it was determined that our check was on someone's desk in Jindal's office.  The
 latest phone call (this week) was the same.  They're surprised that we haven't gotten the disbursement yet, they can't release the second disbursement until we receive the first one.  They can't tell us what bank it was supposed to have been deposited in because the person on the phone does  not have our file.  How this person can be sure that we should have gotten any money if he/she isn't looking at our file is beyond our comprehension… 

Since someone on rebuild lakeview published the local office for HMGP, my mother is going to go down there in person and try to get some answers that way. 

 From: >
To: rebuild_lakeview at yahoogroups.com
Sent: Thu, December 17, 2009 6:26:53 PM
Subject: Re: [rebuild_lakeview] HMGP-Does anyone know anyone who actually got any money???

  #3 
Yeah, we got money.  We were told we qualified for the whole amount.  They gave us half.  They called 2 days ago and said the rules had changed and we don't qualify for any of it now.  They want the money back.  Be glad you didn't get any! 

  #4 
-----Original Message-----
From: @yahoo. com>
To: rebuild_lakeview@ yahoogroups. com
Sent: Thu, Dec 17, 2009 3:59 pm
Subject: [rebuild_lakeview] HMGP-Does anyone know anyone who actually got any money??? 
This is getting so frustrating and ridiculous. I am writing letters to Sens Landrieu and Vitter as we speak, as well as anyone at OCD whose address I can find. We submitted $60,000 plus in receipts in September for raising our home. Were told 2 to 3 mos turnaround for reimbursement. I thought that was long...... got frustrated today because my once beautiful front yard is a mud pit for the 4th month in a row and I'm sick of living atop a construction site. Was told today our file was DENIED because they didn't know why we didn't receive the max of $30k from road home? WHAT??!!!! My case mgr is now XX..very nice gentleman who did a good job of de-escalating me but this is starting to freak me out. I'm afraid they will find a way to decide we are getting nothing and we will be SOL??!! I cannot finish until they reimburse me the $60k I've spent so far!!!

#5 
Anyone had any luck in getting their award? I received my "award letter" in August, in November received less than my "midpoint" in my account. Been trying since November to get explanation, etc from XX (!). Finally got him to call me back, after frustrating conversation his manager got on the phone and told me I had to come into their office on Lakeshore Dr and meet with them and FEMA. I might not have an award - this after the award letter and all of my documentation. Something about a re-calculation and only $92 a sf, an a bunch of other nonsense.
Shades of Road Home....anyone know anything? Been fighting this battle since May. 

#6 
Lastly, an HMGP reality check from my family. We too applied for an HMGP grant. We have done all the post-K elevation work long ago. With great effort, we got old bank statements (including from an out-of-state bank when we were in exile from LA for a year) and the very many other specific documents including getting a small copy of our oversized architectural plans. ONE YEAR AND TWO MONTHS AGO, we sent in all the required documents. We have received no grant determination but, one year later, we received a request for many of the same documents that we previously sent. My husband went to talk to one of the staff in person, met with him one month ago, and was told he would be called the next day. We have received no further communication. 

Bottom line, not only is there limbo for most applicants to the HMGP Elevation and Elevation-Reconstruction Grant programs (like RH limbo) but also, there is little evidence that once the limbo is over more than a trickle of applicants will receive any money based on this undefined “cost reasonableness.” 

That standard may be only $84 - 92 (I also heard $90 from another source) per square foot for building costs. I wish I could be more specific but my inquiries are unanswered and, I and KC King as members of the LRA Housing Task Force, have been denied the right to have this issue put on the Housing Task Force agenda for the last meeting (this month) or the previous meeting (nine months ago). 

So up to $100,000 for uncovered building-elevation expenses from HMGP sounds awfully good in press releases but are most applicants wasting large amounts of time applying and gathering the difficult documentation? 

Best wishes, 

Melanie Ehrlich 
Founder, Citizens’ Road Home Action Team (CHAT) http://chatushome.com 
Member, LRA Housing Task Force 

Blogs for comments: 

http://pogoblog.typepad.com/pogo/2009/09/the-far-too-long-and-winding-road-home-program.html 

http://www.chatushome.com/blog/?p=64 

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