[FoCHAT] CHATNews: This is getting tiresome: Chap 1-Attempt To Get Policy Docs; HMGP Gts.

Sun Jan 3 00:16:20 CST 2010

CHATNews: This is getting tiresome: Chap 1-Attempt To Get Policy Docs; HMGP Gts.
Jan. 2, 2010
Dear CHAT Members,
The Incredible Saga of Secrecy, Public Documents, and the LRA, Chapter 1
Chapter 1 in our series “The Incredible Saga of Secrecy, Public Documents, and the LRA” is posted near the top of our CHAT website 
http://chatushome.com 
Below are two short excerpts. 
This letter that is posted was written by my attorney before the Writ of Mandamus (official legal term to initiate a legal proceeding for a public records hearing) was filed.
 It was part of the prolonged attempt to obtain the requested public documents without going through legal proceedings.
March 12, 2009 letter from my attorneys to Dan Rees, LRA attorney to the Former Executive Director of the Louisiana Recovery Authority (LRA), Paul Rainwater. 
Mr. Rees, we are willing to work with the LRA, but this is getting tiresome. 
Have all current CP and CCB documents been posted to the web site OR provided to requester in response to her Public Records Request? These documents contain much more information than program policies and should not be withheld, and were previously provided in answer to public records requests made before July 2008.
To see the whole letter from my main pro bono attorney for my public records request ,  go to 
Chapter 1 at http://chatushome.com.

HMGP Woes (continued)
Sent from an applicant last week
In November 2008 we received a letter saying we were eligible for the HMPG grant. We had just moved into our newly constructed home in August. In December we gave them over 300 pages of contractor receipts and building certificates and house plans. We were promptly notified that we did not qualify because of the 10% rule. We now have that hurdle erased. As one digs deeper into the FEMA regulations one comes to the conclusion that FEMA has allocated money for this program but has put so many stipulations on it that the money will never be dispersed.
We have always said that since the rules were first available when we were 90% finished with construction it is difficult to follow them. The new hurdle is the cost estimates FEMA has come up with.
In our latest meeting they took our sq.footage(which they calculate differently than the Road Home. In this program they include porches and decks. If Road Home had used this same calculation we would have been eligible for an additional $80,000.)... In our case FEMA's figures (we have been quoted 2 different figures $83-$86 per sq ft) for rebuilding. 
During our rebuild we always looked to the Road Home's figure of $130/sq.ft... By our calculations we built for around $115/sq.ft… When we were quoted FEMA's figures I went to two different sources to retrieve rebuild figures to prove FEMA is once again being unreasonable in their calculations.
Habitat for Humanity which does not calculate sq.ft.costs because they do not factor in labor costs and so many goods are donated came up with this: they sell houses for $85,000. The size of these houses are roughly 1150 sq.ft.This works out to about $73 per sq ft… 
Time is running out this program.

A second recent letter about the elusive HMGP elevation grants & more secrecy about rules for promised grants for Louisiana hurricane victims:
HMGP would not let us start at first. There was no one who would submit to us in writing that demolition was or was not considered by HMGP starting construction. Also, SBA called repeatedly to tell us to begin or they would cancel our loan. We had to explain in writing to SBA that HMGP required we did not begin building or we would not be eligible for HMGP funds until they finished their environmental clearance, reviewed our file and gave us final approval.  We are on our 4th SBA waiver. There is obviously a lack of communication between the federal agencies responsible for funding elevation and residential loans.

So we waited on HMGP to give us the go ahead. That took a year to 18 months! We have been paying both rent and our SBA loan mortgage for 3 years, a huge burden which has siphoned off our savings.

Then there was dispute about enclosed under the house unconditioned space. Would it be counted in the living area? At first the response was they were only counting living area. My neighbor was denied HMGP funds even though his living space was only 10% more than before because he had a fully enclosed above ground basement that was not air conditioned. 
We got word from HMGP that not only was the living space considered, but also the wind profile since it was for Hazard Mitigation. They would not give out funds if there was a greater risk of damage. 
This change in the rules made us change our home plans. We got rid of the under the house enclosed basement and started over with the plans to make sure the home was not too tall to be considered a lesser overall risk.

We carefully redesigned the house to meet all of the HMGP requirements. Our new design was only 95% the living area of the pre-Katrina home. It also had a carport that was 2 feet above the street to prevent our cars from getting flooded - impact windows to protect from flying objects - and a Standing Seam Metal roof to reduce the risk of wind damage to the roof. The new home was designed to be far more storm resistant than the old one. 
We sent a copy of the completed plans to the HMGP case worker handling our case. We were then told that the porch area we had before Katrina was not allowable for reimbursement. Also, they informed us that the cost per square foot allowable, set by HMGP, is $96. At $96 per square foot one can not build a storm resistant house. Essentially, 2 x 6 walls, 3/4 inch siding, impact windows or shutters and a wind resistant roof (all higher standards to protect again hurricanes) can not be covered with $96 per square foot. 
We had been assured that only the living area was being considered in terms of the overall calculation not to exceed 10% of the previous square footage. We were repeatedly told that porches and carport would not be considered in the calculation of the living space. What we found out was for the new construction, the living area, and only the living area, was multiplied by $96 per square foot for the total allowable reimbursement. However, all insurance proceeds were deducted which did include porches, carport, garage, other structures along with living area. Thus we find it disingenuous that they deduct all our insurance proceeds for living space and anything other than living space for the cost of rebuilding while expecting us to rebuild our house, porches, carport, garage and other structures at the higher standard of a hurricane resistant code at only $96 per square foot.  
In my opinion, based on the current rules, the HMGP funds will only be distributed to people who were uninsured and are building or rebuilding a house that will be at just as great a risk of being damaged by a storm as before Katrina, if not more so. HMGP should be used to make homes more resistant to storms.

Even after hours spent on the phone with the HMGP people, the exact rules and formula are still unknown. At every opportunity we asked for written description of their rules and policies. We were frequently directed to their website which did not and still does not have the answers we needed to design and plan for the costs of rebuilding our home. Whenever there were questions about the wording on the website we were told we have to get back to you. We would get verbal responses to our questions but not only would they not give it to us in writing but anything in writing would have to be approved by their supervisors.   Concerning their verbal answers, not ever provided in writing, I would ask - is this the policy (for that particular question) for how this will be evaluated- they would say we think that is what  they will do or decide.

We have been forced to base decisions on the guesses of HMGP workers who are not accountable for what they say and will not provide it in writing. And in the end it all depends on what the policy is, if there is a policy, at the time we submit anything for reimbursement.

Thank you so much for all your hard work on CHAT. I am very glad there are people like you dedicating so much time to trying to make things right.

Lastly an applicant kindly shared the FEMA documents about mitigation grants with us in October. I have just posted the documents to our website.
Hi Melanie,

I want more details on the 'cost' of the square footage allowed under the HMGP. I received the attached documents. It appears the OCD is attempting to put the FEMA document into plain English that have a potential of being implemented. 

Justin said the Shaw group was awarded the implementation contract but are still working on the other implementation details.

See the Dec. 2009 HMGP Newsletter at our website for the link to the LRA (NOT Road Home) description of HMGP Elevation Grants & Contact Information About HMGP

HUD TO ASSIST HOMEOWNERS FACING PROBLEM DRYWALL
WASHINGTON – On December 22, 2009, the U.S. Department of Housing and Urban Development announced that FHA-insured families experiencing problems associated with problem drywall may be eligible for assistance to help them rehabilitate their properties.  In addition, HUD’s Community Development Block Grant (CDBG) Program may also be a resource to help local communities combat the problem. 
FHA is reminding its approved lenders that they are to offer special forbearance for borrowers confronted with the sudden effects of damaging drywall products in their homes including the financial hardship associated with related home repairs.  
“We’re instructing our FHA mortgage lenders nationwide to extend temporary relief to allow these families time to remove problem damaging drywall and repair their homes,” said FHA Commissioner David Stevens.  “We want to remove additional pressures for these families as they find solutions to allow them to return to a safe, decent and sanitary home." 
FHA Type 1 Special Forbearance (noted in Mortgagee Letter 2002-17, available at: http://www.hud.gov/offices/adm/hudclips/letters/mortgagee/files/ml02-17.doc ) provides relief that is not typically available under an informal forbearance or repayment plan.  This relief provided can include one or more of the following: 

suspension or reduction of payments for a period sufficient to allow the borrower to recover from the cause of default; 
a period during which the borrower is only required to make their regular monthly mortgage payment before beginning to repay the arrearage; or 
a repayment period of at least six months.
HUD is instructing lenders that no late fees are to be assessed while the borrower is making timely payments under the terms of the Special Forbearance plan. The total arrearage for a Type 1 Special Forbearance cannot exceed 12 months of delinquent payments. Lenders can review borrower applications and make a determination as to the most appropriate loss mitigation tool including loan modification, partial claim, or FHA HAMP.  Any questions or clarification regarding the Type 1 Special Forbearance should be directed to the HUD National Servicing Center at 888-297-8685. 
Read the entire press release at http://portal.hud.gov/portal/page/portal/HUD/press/press_releases_media_advisories/2009/HUDNo.09-237   

Best wishes,
Melanie Ehrlich
Co-Chairman, Citizens’ Road Home Action Team (CHAT); http://chatushome.com
You can comment at:
http://www.chatushome.com/blog/?p=64

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

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