[FoCHAT] CHAT News: $1.5 billion of unexpended RH homeowner funds- Collapsing HUD & FEMA $?; CHAT Mtg. on COX10

Sun Jun 14 11:21:50 CDT 2009

Dear FoCHAT Members,

Paul Rainwater, head of LRA and OCD, confirmed to me on May 20 that about $1.5 billion is left in the RH homeowner program. This was during a conversation in which I asked him again about committing unobligated funds to re-opened and fair appeals to correct ICF mistakes that shortchanged applicants. He did not agree to this during that conversation in DC.

Is LRA planning to start yet another slow, bureaucracy-laden program to use "leftover" RH money to help low-income applicants? 

Will there be yet more money wasted on greatly overpaid contractors? 

About 10% of RH homeowner program money that has been spent so far went to ICF for administering this program. This is wasteful of US taxpayer money indeed especially when all the allocated money was needed for honest repair, rebuilding, and compensation of victims of an historic disaster, much of which is attributable to federal government mistakes in flood protection. 

This percentage of RH money going to the contractor is outrageous given the quality of the grant processing and the ignoring of many thousands of applicants' pleas for information about their grants for very many months. The ratio of ICF contractor money to grant money is even much worse for the disaster victims and better for ICF in the small rental RH program.  

If LRA is really critical of ICF’s administration, why is it not fixing the existing program's "mistakes" and reversing grant-shrinking rule changes to help low-income applicants as well as other cash-strapped applicants who had their grants unfairly lowered? 

Why do they not reverse the additional compensation grant rules and procedures to the fairer ones that were operative at the beginning of the program when the ACG was first established? LRA and OCD changed ACG rules and procedures and thereby excluded so many applicants from eligibility in the second half of 2007 and in 2008 after they had been told previously that they were eligible. 

Why doesn't LRA honor their commitment to reopening appeals for many applicants who have been treated unfairly and inconsistently?  Paul Rainwater told me in early 2008 that he wanted to do this but LRA could not just because they did not have the funds. The statement about applicants being able to contact LRA for reconsideration if they think they were treated unfairly was placed only at the LRA website. Why was it not otherwise publicized by LRA nor put at the standard RH website? (see http://chatushome.com for details)? 

The "surplus" RH funds are largely attributable to grant shortchanging and inappropriate grant-constricting rule changes. 

Applicants are still contacting us with descriptions of their great need for RH money for repair of their home or not losing their home, money that was promised in initial grant notices and then withdrawn due to RH "mistakes" or downsizing rule changes. 

http://www.wwl.com/pages/4533513.php?contentType=4&contentId=4118259 
Posted: Thursday, 04 June 2009 6:30AM 
LRA backs Obama trailer plan 
Don Ames Reporting 
The Obama administration's plan to get the remaining Katrina and Rita victims out of FEMA trailers has the Louisiana Recovery Authority revving up its plans as well. 
The president will offer $50 million in new housing vouchers and sell trailers for as little as a dollar in a bid to avoid mass evictions of hurricane victims still living in federally supplied trailers. 
The LRA has been working with FEMA, HUD and HANO to establish a game plan. "We've shared our Road Home data, people who are waiting on hazard mitigation money...so they have a good understanding of where we're at and the progress we're making," says LRA Director Paul Rainwater. 
Listen to David Blake's conversation with Rainwater: 
Rainwater says the president's plan will help avoid the mass evictions of those still housed by the government. "We'll be able to take HUD vouchers and use them for people who were in FEMA temporary housing units, which is good because, before we couldn't really get there." 
"We were confusing people with a FEMA program and a HUD program. Let's collapse it. Let's create a safety net for everybody. And that's what we're seeing here," says Rainwater. 
He says an important part of the plan is working with the victims on a more individual basis. "We're working with HANO to do several pieces of case management. Now HUD and FEMA are announcing a more robust case management piece to help link people to resources, which is very positive." 
Rainwater says the government is also providing more flexibility with three billion dollars of Road Home money to provide direct assistance. 

2. COX 10 TV’s Airing of the May 27 CHAT Meeting Focused on Our HUD Inspector General Complaint 
Wed., June 10, Noon-1:30 PM; Fri., June 12, Noon-1;30 PM; Sun., June 14, 10:00-11:30; Mon., June 15, 8:00-10:00; Thurs., June 18, 8:00-10:30; Sat., June 20, 11:00-1:00. 

Best wishes, 
Melanie Ehrlich 
Co-Chairman, Citizens' Road Home Action Team (CHAT) 
http://chatushome.com 

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