THE RESTORE LOUISIANA HOMEOWNER ASSISTANCE …

THE RESTORE LOUISIANA

HOMEOWNER ASSISTANCE

PROGRAM

PROGRAM POLICIES

JUNE 7, 2017

LOUISIANA OFFICE OF COMMUNITY DEVELOPMENT | DISASTER RECOVERY UNIT

Table of Contents

1. Definitions ......................................................................................................................................... 1 2. Program Description and Objectives ................................................................................................ 2 3. Program Requirements ..................................................................................................................... 2

a. Eligible Activities ............................................................................................................................... 2 b. Ineligible Activities ............................................................................................................................ 2 c. National Objectives........................................................................................................................... 3 4. Program Allocation and Administration ........................................................................................... 3 a. Funding Appropriation ........................................................................................................................ 3 5. Program Solutions............................................................................................................................. 4 a. Solution 1: Program Managed .......................................................................................................... 4 b. Solution 2: Homeowner Managed.................................................................................................... 5 c. Solution 3: Reimbursement .............................................................................................................. 5 d. Elevations .......................................................................................................................................... 5 6. Applicant Eligibility Criteria............................................................................................................... 6 a. Ownership......................................................................................................................................... 6 b. Occupancy......................................................................................................................................... 6 c. FEMA Registration............................................................................................................................. 6 7. Property Eligibility Criteria ................................................................................................................ 7 a. Geographic Target Areas................................................................................................................... 7 b. Structure Types ................................................................................................................................. 7 c. Tie-Back and Damage Requirements ................................................................................................ 8 8. Prioritization Criteria......................................................................................................................... 8 a. Phase I Criteria ................................................................................................................................ 10

1. Damage Threshold (Major/Severe)............................................................................................. 10 2. Status of Repairs ......................................................................................................................... 10 3. Insurance..................................................................................................................................... 11 4. Geographic Requirements .......................................................................................................... 11

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5. Special Flood Hazard Area .......................................................................................................... 11 6. Income Requirements................................................................................................................. 11 7. Demographic Criteria .................................................................................................................. 11 b. Phase II ............................................................................................................................................ 12 1. Damage Threshold (Major/Severe)............................................................................................. 12 2. Status of Repairs ......................................................................................................................... 12 3. Insurance..................................................................................................................................... 12 4. Geographic Requirements .......................................................................................................... 13 5. Special Flood Hazard Area .......................................................................................................... 13 6. Income Requirements................................................................................................................. 13 7. Demographic Criteria .................................................................................................................. 13 c. Phase III ........................................................................................................................................... 14 1. Damage Threshold (Major/Severe)............................................................................................. 14 2. Status of Repairs ......................................................................................................................... 14 3. Insurance..................................................................................................................................... 14 4. Geographic Requirements .......................................................................................................... 15 5. Special Flood Hazard Area .......................................................................................................... 15 6. Income Requirements................................................................................................................. 15 7. Demographic Criteria .................................................................................................................. 15 d. Phase IV........................................................................................................................................... 15 1. Damage Threshold (Major/Severe)............................................................................................. 16 2. Status of Repairs ......................................................................................................................... 16 3. Insurance..................................................................................................................................... 16 4. Geographic Requirements .......................................................................................................... 16 5. Special Flood Hazard Area .......................................................................................................... 16 6. Income Requirements................................................................................................................. 16 7. Demographic Criteria .................................................................................................................. 16 e. Phase V............................................................................................................................................ 17 1. Damage Threshold (Major/Severe)............................................................................................. 17 2. Status of Repairs ......................................................................................................................... 17 3. Insurance..................................................................................................................................... 17 4. Geographic Requirements .......................................................................................................... 18 5. Special Flood Hazard Area .......................................................................................................... 18

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6. Income Requirements................................................................................................................. 18 7. Demographic Criteria .................................................................................................................. 18 f. Phase VI................................................................................................................................................ 18 1. Damage Threshold (Major/Severe)............................................................................................. 19 2. Status of Repairs ......................................................................................................................... 19 3. Insurance..................................................................................................................................... 19 4. Geographic Requirements .......................................................................................................... 19 5. Special Flood Hazard Area .......................................................................................................... 19 6. Income Requirements................................................................................................................. 19 7. Demographic Criteria .................................................................................................................. 19 9. Level and Terms of Assistance ........................................................................................................ 19 a. Eligible Award Cap .......................................................................................................................... 20 b. Award Structure.............................................................................................................................. 20 1. Reimbursement Award Structure ............................................................................................... 20 2. Rehabilitation or Reconstruction Award Structure (Prospective Work)..................................... 22 c. Replacement of Manufactured Homes........................................................................................... 22 d. Remaining Unmet Needs ................................................................................................................ 24 e. Additional Work Outside of Program Scope................................................................................... 24 f. Escrow ............................................................................................................................................. 24 g. Recapture........................................................................................................................................ 24 10. Grant Execution .............................................................................................................................. 25 a. Pre-Award Verifications .................................................................................................................. 25 b. Award Letter ................................................................................................................................... 25 c. Grant Agreement Documents......................................................................................................... 25 d. Provisions of Funding...................................................................................................................... 26 11. Operating Procedures ..................................................................................................................... 26 a. Deadlines......................................................................................................................................... 26 b. Application Intake ........................................................................................................................... 26 c. Stop-Work ....................................................................................................................................... 26 d. Applicant Communications ............................................................................................................. 27 e. Applicant Responsibilities ............................................................................................................... 28 f. Eligibility Verification ...................................................................................................................... 28 1. Ownership ....................................................................................................................................... 28

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2. Occupancy................................................................................................................................... 32 3. Damage ....................................................................................................................................... 33 4. Special Flood Hazard Area (SFHA)............................................................................................... 33 5. Income Requirements................................................................................................................. 33 g. Phase Verification.............................................................................................................................. 34 h. Grant Determination.......................................................................................................................... 35 i. Damage Assessments and Economy / Standard Grade Materials ..................................................... 35 j. Duplication of Benefits Calculation .................................................................................................... 35 1. FEMA ........................................................................................................................................... 35 2. SBA .............................................................................................................................................. 36 3. Private insurance ........................................................................................................................ 37 4. Other Funding ............................................................................................................................. 37 5. Award Calculation ....................................................................................................................... 37 6. Subrogation................................................................................................................................. 40 k. Environmental Review....................................................................................................................... 40 13. Repair and Reconstruction Estimates ............................................................................................. 41 a. Introduction ........................................................................................................................................ 41 1. Sources of Cost Estimating Data ................................................................................................. 41 2. Repair/Replacement Quality Standards ..................................................................................... 42 3. Obtaining Information About Damages...................................................................................... 42 b. Damage Assessors and Their Roles................................................................................................. 43 c. Damage Assessments v. Insurance Inspections .............................................................................. 43 d. Types of Damage Assessments ....................................................................................................... 44 1. Reconstruction Estimates ........................................................................................................... 44 2. Repair Estimates ......................................................................................................................... 45 3. Deciding Which Estimate to Use (Repair vs. Reconstruction) .................................................... 45 4. Reimbursement Estimates .......................................................................................................... 46 14. Construction.......................................................................................................................................... 46 a. Reconstruction Allowance .................................................................................................................. 46 b. Repair Allowances............................................................................................................................... 47 1. Units of Measurement ................................................................................................................ 47 2. Site Improvements...................................................................................................................... 47 3. Windows and Doors.................................................................................................................... 48

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4. Roofing ........................................................................................................................................ 49 5. Insulation .................................................................................................................................... 49 6. Interior Areas .............................................................................................................................. 49 7. Electrical...................................................................................................................................... 50 8. Plumbing System......................................................................................................................... 51 9. Heating, Ventilation, and Air Conditioning ................................................................................. 51 c. Repair Allowances: Duplexes and Townhomes .............................................................................. 51 d. Repair Allowances: Condominiums ................................................................................................ 52 e. Structural Damage Assessments..................................................................................................... 52 1. Structural Damage: Definition .................................................................................................... 52 2. Structural Damage: RLHP Policy.................................................................................................. 52 15. Appeals, Complaints and Grievances.................................................................................................... 53 a. Program Appeals ................................................................................................................................. 53 b. Solution 1 Construction Grievances.................................................................................................... 53 c. Solution 2 Construction Grievances .................................................................................................... 53 16. Records Management..................................................................................................................... 53 a. Administrative Records................................................................................................................... 54 b. Personally Identifiable Information ................................................................................................ 54 c. File Security ..................................................................................................................................... 54 d. Record Retention ........................................................................................................................... 54 e. Applicant Files ................................................................................................................................. 55 17. Other Federal Requirements .......................................................................................................... 55 a. Fair Housing/Civil Rights ................................................................................................................. 55 b. Anti?Fraud Waste and Abuse ......................................................................................................... 55 1. Program Applicants..................................................................................................................... 56 2. Vendors ....................................................................................................................................... 56 Appendix A: Award Letter and Sample Grant Agreements ........................................................................ 57 AWARD LETTER ....................................................................................................................................... 58 SOLUTION 1 - PROGRAM-MANAGED CONSTRUCTION GRANT AGREEMENT......................................... 59 SOLUTION 2 - HOMEOWNER-MANAGED CONSTRUCTION GRANT AGREEMENT................................... 65 SOLUTION 2 ? MOBILE HOME / MANUFACTURED HOME REPLACEMENT GRANT AGREEMENT........... 71 SOLUTION 3 ? REIMBURSEMENT GRANT AGREEMENT.......................................................................... 76 Appendix B: Application Forms................................................................................................................... 81

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Fraud Acknowledgment regarding False or Misleading Statements.................................................... 82 RIGHT OF ENTRY (ROE) PERMIT ............................................................................................................. 83 Consent and Release of Personal Information...................................................................................... 85 Federal Form 4506T Request for Tax Transcripts.................................................................................. 86 Appendix C: Subrogation Agreement ......................................................................................................... 87 Appendix D: Program Pricelist .................................................................................................................... 90

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1. Definitions

Act of Donation: a form of property transfer without exchange or payment.

Applicant: all homeowners who are owner-occupants of a damaged property are applicants. All owner- occupants must sign program documents.

CDBG-DR: Community Development Block Grant- Disaster Recovery Program

Common Area Under Roof: The total area under the common roof is primarily interior, conditioned spaces, and for single-story homes, equal to the footprint of the house. The term is also synonymous with the eligible area. In addition, exterior spaces such as detached porches and garages are not considered in the eligible area.

Duplication of Benefits: A duplication of benefit is the receipt of funding from multiple sources for the same purpose. The Robert T. Stafford Disaster Assistance and Emergency Relief Act (Stafford Act) prohibits any person, business concern or other entity from receiving financial assistance from CDBG Disaster Recovery funding with respect to any part of the loss resulting from a major disaster as to which he/she has already received financial assistance under any other program or from insurance or any other sources. It is an amount determined by the program that may result in the reduction of an award value.

HCDA: Housing and Community Development Act of 1974

HUD: Department of Housing and Urban Development

Low to Moderate Income (LMI) Household: a household is considered to be of low or moderate income if the household income (including income derived from assets) is at or below 80 percent of an area's median income. All income is based on the Area Median Income limits set annually by HUD for each parish or metropolitan statistical area.

Major/Severe damages: $8,000 or more of FEMA inspected real property damage or 1 foot or more of flood damage on the first floor.

New Construction: A replacement home that substantially exceeds the original footprint by 20% or more on the existing lot (if permitted) or the construction of a new home in a new location.

NFIP: National Flood Insurance Program. When the Program refers to NFIP in the context of eligibility or duplication of benefits, the Program is referring to private and public flood insurance programs that cover structural repairs resulting from flood damages.

Reconstruction: Demolition and rebuilding of an existing structure based on the program's building standards. Reconstructed property is built on the same footprint as the original structure and will not substantially exceed (limited to an increase of 20% or less) the square footage of the current or demolished structure. This requirement will subordinate to the local jurisdiction's building code requirements.

Rehabilitation: Repairs made to an existing structure based on the program's building standards.

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