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from the volunteers of the Citizens' Road Home Action Team (CHAT)!

We have been advocating since Sept. ‘06 for fairer treatment of applicants in the state-run and $10.4 billion, federally funded Louisiana Road Home Program (RH) for homeowner-victims of the Hurricanes Katrina & Rita & the linked flooding due to faulty levees

CHAT Accomplishments - Some of what we did to help 10,000’s of the ~140,000 applicants    

 CHAT Media Appearances  - Links to about 60 news articles mentioning CHAT leaders and the Road Home Program

To find an item at our website: press both “Ctrl” & “f” keys; release; then, in the pop-up box, type key words

To Get Our Free Email Newsletter: send an email to chatlra@yahoo.com  and write “Join CHAT” in the subject & your city in the email

 

v  The Road Home Program (RH) is administered by the state of Louisiana as a HUD Community Development Block Grant (CDBG)

·         ICF Emergency Services (ICF) and HGI contracts used about 10% of the $10.4 billion program funding

v  This program officially ends in June 2010 but will continue to monitor grantees for compliance with covenants for “compensation” grants that unfairly shortchanged many thousands of the applicants

v  In addition, funds that will be collected for not meeting the covenants and for planned construction loans will go into state coffers for undetermined purposes

 

v   The Dead-end of Road Home: Waste of Taxpayer Money To Intimidate Tens of Thousands of Homeowners

 

1.     The Louisiana State Office of Community Development is sending out letters to tens of thousands of Road Home (RH) Applicants that ask them to sign statements threatening “fine” and “imprisonment” if they have not provided true information about filling the covenant for their RH grant.

2.     One major problem is that the covenant and Compliance and Monitoring Forms being send to them are contradictory. The covenant requires that they live in their repaired house for any time (officials of Road Home often stated at public meetings that one day would suffice) during the course of 3 years after receiving their grant funds. The Monitoring Forms demands a current utility statement despite the fact that the covenant does not require that they be currently living in their home.

3.     Another is that applicants are being asked to give a certificate of occupancy or other such document. This was never mentioned in the covenant and, because of technical, bureaucratic, and financial reasons, some applicants will be living in their home while still awaiting a certificate of occupancy.

4.     They are also being asked to get a copy of initial permits from the city or parish, which should be unnecessary and was never mentioned to applicants before.  If they lost their copy, these are time-consuming to obtain.

5.     They are being asked to produce all these documents within 30 days from the day the letter was sent to the applicants, which is unfair and unreasonable. RH routinely left applicants incommunicado for many months and more than a year but demands rapid responses from beleaguered applicant-hurricane victims, which includes many of those suffering again because of the catastrophic BP oil spill.

6.     The covenant states that the money applicants received is “compensation for damages. ” What right does the state have to demand repair of homes from applicants and maintaining maximum flood insurance in perpetuity?  Many of the low- and middle-income applicants lost all their possessions in the flood, are in difficult financial straits,  were systematically shortchanged on their grant amounts, and falsely led to believe that they would have a chance for a fair appeal to correct the state’s and the contractor’s (ICF Emergency Management Services) shortchanging mistakes after they signed the covenant papers.

7.     The covenant states that “”Nothing in these Covenants shall be construed to require the Owner to repair, rebuild, relocate or sell the Property.” Now the state monitoring staff is requiring precisely that repair or rebuilding despite the acknowledgement that “The Louisiana Recovery Authority estimates that at least 20,000 Road Home recipients, or 15 percent, will be unable to rebuild their homes without substantial help.” http://www.nola.com/hurricane/index.ssf/2010/05/nonprofit_assistance_for_road.htm

o    Even if funds from only 5% of these applicants are recovered, that would mean about $60 million, given the average grant size of about $60,000.

o    What will the state do with the majority of these 20,000 applicants who needed the grant money to pay down mortgages suddenly demanded or to pay rent or to pay for partial home repairs that they could not complete because their grant was inadequate?

o     Will the state try to put leans on thousands of homes thereby negatively impacting the real estate market, which is already depressed?

8.     All the signs point to this “monitoring” being a waste of taxpayer money for the purpose of justifying jobs for state staff in Baton Rouge and filling state coffers with money (see Item 10, below). Not only will state staff (~120 in the Disaster Recovery Unit that includes OCD) have to process 128,000 Monitoring and Compliance forms and associated documents sent by applicants, but also, the letter with the form tells applicants that there will be a tax money-wasting personal visit to their home to check on the status of repairs!

9.     What is the purpose of these expenditures? The effect will be to harass over 100,000 victims of the catastrophic hurricane/floods, who often lost their homes as well as their possession due to the faulty oversight of the US Army Corp of Engineers. This was federal guilt money that the State of Louisiana was never given (they got no interest and had to draw down grant funds from a federal account), but rather was responsible for distributing to the victims.

10.  What will happen to the federal tax dollars “recaptured” from intimidated RH applicants despite the highly dubious legality of the covenant and contradictions in it and in the compliance documents? By the admission of one of the heads of the Housing Dept. of OCD at a public meeting, the recaptured money from applicants will go into OCD’s coffers.

11.  Therefore, federal dollars intended for hurricane victims are being changed to state dollars to be used at Gov. Jindal’s discretion. This will include enabling state staff to reinforce the opinion of very many applicants who have described the 4-year RH program as a terrible ordeal of no answers or nonsensical ones to why mistakes in their grant calculations were not corrected. Many thousands of these applicants are still not able to repair their homes because of the systematic shortchanging of grant funds to them while almost 10% of the $11 billion went to the contractors ICF Emergency Management Services and HGI (Hammerman & Gainer Inc).

          

Reference Documents

http://chatushome.com/chatusfiles/MonitoringForRecaptureLettersForms_7_2010.pdf

 

http://chatushome.com/chatusfiles/Covenants_SeePoint9_112607.pdf

 

Grant recipient affidavit, note Point 3

 

Grant Agreement for homeowners, note Point 4                    

 

 

 

v   Some recent CHAT newsletters:

·     Converting Federal Disaster Relief Money to State General-Coffer Money: March 25, 2010

·     Amnesty International and Rights of Victims: April 11, 2010

·     Unhappy Endings to the Road Home Program: May 1, 2010

·     Louisiana House of Representatives Speaker Jim Tucker & the Politics of RH Money: May 17, 2010

·     Road Home Numbers and Reality: May 25, 2010

·     Road Home Tries to Stifle Complaints, Part 1: May 29, 2010

·     Road Home Tries to Stifle Complaints, Part 2: June 9, 2010

·     LA Office of Community Development (OCD) and HUD Going After Applicants: June 23, 2010

 

v  This is the link to our complaint (39 pages and 88 footnotes) to the HUD Office of the Inspector General (OIG):

http://chatushome.com/chatusfiles/HUD_OIG_Complaint_ForPublicRelease_final__2_2_09.pdf

 

Below is a description of the outcome of this complaint from Melanie Ehrlich, the founder of CHAT, and main author of this complaint

·        When I was interviewed by an inspector from the HUD OIG, I asked if Fred Tombar, the Special Assistant on Disaster Recovery to the Secretary of HUD, would have any influence on the outcome of the promised investigation. 

 

·        Mr. Tombar is a former subcontractor and paid TV-apologist for the main Road Home Program contractor ICF Emergency Management Services (ICF).

 

·        The HUD OIG inspector only smiled and said no.

 

·        I asked if he would interview any of the list of representative applicants who had been treated unfairly or inconsistently and were willing to be interviewed by the HUD OIG. He had asked for such a list.

 

·        “No,”  said the HUD OIG inspector but he would be sure to interview representatives of the contractor, ICF, and HUD staff (whom our complaint implicates in covering up the mismangement of the state-administered program) and state officials from the Louisiana Recovery Authority (LRA) and the Louisiana Office of Community Development (OCD).

 

Ø  Our complaint, which dealt with violation of HUD rules, concerned the following substantive issues:

 

 

 

o   failure to provide a common, consistent, fair and independent method of determining homeowners’ damages, including pre-storm values,

§  thereby, many applicants received less grant money than they were entitled to, which has caused an especial hardship for moderate-to-low income applicants consequently unable to repair or rebuild their homes;

 

o   failure to provide program rules, information and documents to applicants in derogation of their rights;

 

o   failure to meet the contractual obligation to provide an “ombudsman” type program;

 

o   failure to provide a fair and independent appeals process in violation of due process;

 

o   acts in derogation of HUD requirements for citizen and local government representative participation.  

 

Ø  Why was there nothing but a one-paragraph dismissal (“case closed”) of our complaint?

·         after the HUD OIG sat on it for 7 months

·         after the inspector from HUD flew down to interview me

·         after the office of the HUD OIG promised a full, publicly posted report whatever the outcome

·         despite our extensive documentation of glaringly inconsistent treatment of applicants

o   inconsistent treatment is a major violation of HUD rules 

 

Ø  The answer is that the evidence that HUD OIG was so damning their only response could be either a real investigation or no investigation at all

·         They choose a cover-up with no investigation at all

·         HUD, like officials of the State of Louisiana, are complicit in knowingly allowing more than ten thousand applications (see our complaint to the HUD OIG linked above and more documentation below) were subject to appeals conducted by the contractor (ICF) who made the mistakes or state staff who had no rules for conducting those appeals

 

v    If you are a member of the media and want more information, write to mehrlich8@yahoo.com

 

·    If you are a Road Home applicant or other individual and want to subscribe to our free weekly newletter or want more information, write to chatlra@yahoo.com

 

 

 

 April 11, 2010

Ø  A report that was just released by Amnesty International has much merit but is missing the main problems for eligible Road Home (RH) applicants, ~ 130,000 – 140,000 hurricane victims. It isn’t the Stafford Act upon which the report focuses that is responsible for so much heartache and so many RH applicants being unable to rebuild or repair their homes despite $10 billion of grant money for the program.