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Road Home Glossary

The Road Home program has many complex pieces with the potential for confusion. Below please find a glossary of frequently used words and acronyms used by The Road Home program.

Additional Compensation Grant (ACG) - The Additional Compensation Grant is intended to assist with any "gap" between The Road Home estimated cost of damage and the amount(s) the homeowner receives from other assistance (insurance, FEMA) and The Road Home basic compensation grant. The maximum amount for the ACG is $50,000. Only applicants with household incomes 80% and below the parish median income are eligible to receive the ACG. This is the only income dependent part of the program. Formerly known as the Affordable Compensation Loan.

Application ID (APP ID) - The number used to track an application and applicant. Begins with 06HHXXXXXX.

Broker's Price Opinion (BPO) - an estimate provided by a real estate broker and includes a drive-by valuation of the property. The Road Home will order a BPO in some cases when determining pre-storm value.

Benefits Selection Form (BSF) - the section of the Option Letter that the applicant completes and returns to notify The Road Home program of their option decision. The option decision may be accepted by phone in some cases.

Compensation Allowance Document (CAD) - the document generated by the home evaluator to calculate the estimated cost of damages.

Community Development Block Grant form (CDBG) - a document containing a series of income ranges based on current family size and location at time of storm. Every applicant must complete this form, which is used to determine eligibility for the Additional Compensation Grant.

Estimated Cost of Damages (ECD) - an estimated cost of repairs. The Road Home determines the ECD by an on-site inspection which is performed by a designated Road Home program evaluator trained in after-damage evaluation processing.
The Road Home estimates the cost of repairing a damaged home based on modest rebuilding standards. This is determined by using the following inspection methods:

• Type 1 Inspection - estimates for homes that have already been torn down or that sustained more than 51% damage are calculated by multiplying $130 (the estimated cost of repair per foot) by the total number of square feet in the home plus a $550 cost allowance to cover a house raising survey plus 2% of the total cost to cover builders risk.
• Type 2 Inspection - estimates for homes that sustained less than 51% damage are based upon a component-by-component basis. When possible, all damaged residences will receive a Type 1 and a Type 2 damage assessment in order to determine the percent of damage.
• The Road Home program determines the percent of damage by dividing the Type 2 amount by the Type 1 amount.

Market Analysis (MA) - an appraisal or estimate of market value ordered by The Road Home and prepared by an appraiser. This is a type of pre-storm value that when ordered by The Road Home program is acceptable as a 3rd-party-verified pre-storm value.

Mobile Home Special Project (MHSP) - the team that was mobilized to address 3rd party verification of mobile home issues.

Occupancy - basic eligibility for The Road Home program are ownership and occupancy at the time of the storm. Verification that the applicant actually lived at the damaged address can be proven by submission of utility documentation or other necessary services at the damaged address.

Option Letter - the document that states the available benefits and provides a mechanism for benefit selection, delay of benefits, disputes, etc. The letter details award amounts for the available three options:

• Option 1 - To stay in home and rebuild.
• Option 2 - To sell home to the state and relocate to a new home within the state of Louisiana.
• Option 3 - To sell home to the state and move outside Louisiana.

Pre-closing:
Once an applicant selects a benefit option, their application moves into the pre-closing phase of The Road Home program. The application will remain in this phase until their file is sent to closing. The pre-closing phase is comprised of multiple verification and processing steps that include:

1. Applicant eligibility (ownership, occupancy, etc.)
2. Home Evaluation
3. Income
4. Insurance and FEMA proceeds

Pre-Storm Value (PSV) - the estimated value of the applicant's damaged home the day before the storm.

Transmitted to Closing:
Once the pre-closing process is complete, the file is sent to the title company to be processed for closing. There title searches, SBA reviews and lien searches are conducted.