[FoCHAT] CHATNews: Diverting RH Funds from Desperate Applicants?

Sun Sep 13 23:16:24 CDT 2009

Sept. 13, 2009

Dear CHAT Member,

We are very concerned about recent, publicly stated intentions of the Louisiana Recovery Authority (LRA) of asking for approval to divert the uncommitted ~$0.5 – 1 billion of federal funds away from the Louisiana Road Home Program for Homeowner Assistance. 

All the “surplus” funds of the Road Home Program (RH) should be used for the RH applicants, who are Louisiana homeowner victims of Hurricanes Katrina or Rita.

·         correcting shortchanging of RH’s own mistakes that have shortchanged applicants; 
·         fixing unfair added-on rules for the additional compensation grant (ACG) for low-income applicants 
o   especially about the use of often obvious underestimates of damage that  limited the amount of ACGs
o    and the recalculation of income at later dates that disqualified many applicants for ACGs, who had previously been told that they qualified; 
·         helping middle-class applicants who did not get enough to rebuild or repair their homes.

There has been talk in public by the LRA of spending “surplus” RH money on rebuilding Charity Hospital or funding mobile health units. Congress intended the RH money for providing homes and home repair to applicants suffering because of Hurricanes Katrina and Rita. 

Many thousands of applicants have been the victims of inconsistent and unfair treatment by the RH. 

Their needs should be met by any “surplus” RH funds, especially because thousands of applicants have had their grants lowered unfairly by RH in what clearly looks like an effort to generate such a “surplus.”

To correct remaining shortchanging mistakes (probably in the thousands), appeals should be re-opened, with written standards for determining the outcome, and decided by independent individuals who have the necessary background.

Below are excerpts of some of the emails sent to CHAT within the last month. They have been made anonymous.

Tuesday, August 18, 2009 10:35 AM
From: 
When I went to closing, I was told that the amount that I would receive would be $50,000.00.  At that time, I was overwhelmed with all that I was going through and was happy to get anything.  But, as I began to rebuild, I ran short on money.  Trying to do the right thing, as far as living a quality life in the Metro New Orleans area, I raised my home eight feet, as I had six feet of water inside.  Raising my house cost more than I had received for elevation and it also cost me more to rebuild my home due to elevation. ..I didn't dispute my award amount because I didn't think I would get any help… Every day I wonder why did I return to rebuild?  I love my neighborhood, but the stress that I've been under since Katrina takes away from my quality of life.  I wish I had the simple life I had before Katrina.  In my opinion, coming back home was a huge mistake.  J

Tuesday, August 18, 2009 11:02 AM
I disagreed with the valuation Road Home used in determining my grant amount, so I hired a LA certified appraiser to conduct a post storm appraisal to determine the pre-storm value of my home.  I submitted this appraisal to Road Home and they discarded it due to their "20% rule".  I requested a copy of my file in order to appeal their decision, and I was told I could not see my file, so I had to write an appeal without access to the information they were using.  I lost this appeal…

 I again requested my file, and was able to secure a copy.  I was stunned when I saw the methods they had used to determine my pre-storm value and the actual values they were using.  I wrote a second appeal, and cited all of the flaws I discovered with their methodology. 
At that time I was waiting to be considered for an elevation grant, and was told by Road Home staff that if my case was in appeal I could not receive the elevation grant.  I signed something saying I would withdraw my appeal, which I felt pressured and coerced to do because I needed to receive my elevation grant as soon as possible.
. .. I questioned why the "20% rule" exists and was told it was mandated by HUD, yet I have a letter from HUD stating that they defer to the States to make their own policy.  I asked to be provided with a written copy of this policy from HUD, and was denied that request. I also questioned why, if my appraisal had been between 1% and 19% of the value determined by Road Home I would have received up to an additional 19% to my grant amount, yet because my private appraisal (done by a Louisiana certified and licensed Appraiser) exceeded 20% of RH's value, I received nothing.

Tuesday, August 18, 2009 8:29 PM
From: 
I sold my home which was my rental property during the time of Hurricane Katrina, on October 31,2006. La RH sent me a RUSH letter stated I was ineligible because they did not find that I was the owner of my property in New Orleans La. I sent all documents proving I own my property until Hurricane Katrina. I need to know Why the RH will not show me documents or talk to me . I NEVER RECEIVED ANY RESPONSE FROM THE ROAD HOME, after I appeal with all document whereas I sold my home at a LOSS and so should qualify.

Tuesday, August 18, 2009

The road to home has not been a pleasant one for me.  I am currently homeless now because of the ineptness of the road home officials.  I have no money and no home to go back to.  The road home allowed my brother to file a fraudulent claim and paid him off.  He took my home and my money and left me and my family homeless.  I fought with everything I have.  I did everything they asked me to.  Everything that was done in my file was wrong.  They had the wrong house, the wrong picture of my house, the wrong address and so forth.  Then they told me to get a lawyer and try to recover some of my money.  Who ever is running this show is deplorable.  The people that really need the money are the ones who didn't get it.  I had everything to prove ownership of my house and still to no avail.
The whole world watched the treatment of the Katrina victims at the shame of Louisiana and its leaders.  I filed to dispute this and never heard anything since they told me to get a lawyer...

Tuesday, August 18, 2009 9:33 AM
My name is XXX All paperwork is under my husband’s name.We did not get enough money to finish repairs on our home.It has been over four years and we are still not finish.We have been repairing as much as we could by working.We are low income and we have fallen behind on our morgage.We have two sons and we reside in a travel trailer that is on the property.I fear for our health,but we have no choice.We are asking for your help.If you need to contact me,my #504-xxxxxxx.Thank you for reading my email.

Tuesday, August 18, 2009 9:28 AM
Unfortunately I have to be completely UNSATISFIED with the Road Home Program design, staff, administrators, board members and anyone AND anything related to the supposed  ongoing recovery effort.  
I currently am helping 3 home owners that live on the same block and right next to each other with the following different outcomes:
 HOME 1:  New home constructed after hurricane and was denied access to HMGP funds because home is too big…..(elevation risk completely eliminated)
HOME 2: Fixed home after hurricane and the program worked out perfect for these guys (they are lucky)
HOME 3: 96 year old elder demolished home after being displaced for many months after the storm, only to find out she could not participate in the Road Home, HMTP, Elevation programs because she did not apply on time (she couldn’t apply in person or via telephone)..even though she STILL needs help.  She is staring at an empty lot and I’m willing to build the house myself.  All she needs is a Road Home ID so she can access the elevation grants….just like everyone else in her neighborhood.
I’ve even heard of certain Road Home, LRA staff speaking of whether it is worth helping an elder (hinting that it is not worth it if she is likely going to pass away in the next few years)….that’s called ageism.

August 18, 2009
 I was contacted the Appeals office on May 20, 2009..  He asked about the depth of water in our house. … my husband measured … the water level in the house was 9 1/2 feet. .. He also said that we did not have enough damages when calculations were made.  I asked him to look at the square footage since we have more square footage on the first floor than the second floor.  I asked him to check into the fact that other homes in my neighborhood had over 50 % damage only to be told that some claims may have been processed incorrectly.  I also asked RH about the damage over 50 % problem. Our home appraisal showed that the first floor has 1577 livable square fooage and the upstairs had 642 square footage.  It seems obvious to us that there is more than 50 % of living space on the first floor and the first floor was totally destroyed.  

Aug. 18, 2009
My home address is xxx., New Orleans, LA 70122.  I applied for
a road home grant and was denied.  I made an appeal to the denial and my 
paper work was said to be lost.  After submitting additional paper work I was
still denied.  I presently reside in the home which has been partially restored.  I have paid 2 contractors who I had paid substantial sums of money, but the repairs were never fully completed.  If there's any assistance, I'd sincerely appreciate it. 

More applicants emails from this month are at our blog.

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

You are welcome to leave comments by clicking on Submit Comments at our blog.

In addition, more applicant emails from the last month will be included in our next CHATNews.

Best wishes,

Melanie Ehrlich

Founder, Citizens’ Road Home Action Team (CHAT)
Member, LRA Housing Task Force
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