NEWS RELEASE
FOR IMMEDIATE RELEASE
                                                                                                                                                                 

Road Home Installment Payments Explained

BATON ROUGE, November 1, 2006 – Homeowners participating in The Road Home program will not have to wait three years to receive their awards, program officials stated today.

“There is some confusion regarding the disbursement of funds, and we are committed to doing everything possible to make the process as clear and easy as possible,” said Mike Byrne, Chief Program Executive. 

“Our number one mission is to get funds into the hands of Louisiana homeowners as quickly as possible.  The success of The Road Home program depends upon it.  But we are equally committed to protecting them against fraudulent contractors,” said Byrne.

• Homeowners with existing mortgages who choose to repair and stay in their homes:

• Funds received from The Road Home are placed into disbursement accounts which are managed by both the homeowners and their lenders.

• Prior to repairs, lenders will disburse $7,500 or ten percent of the construction contract, whichever amount is less, to the contractor for material, supplies, etc. 

• The balance of the disbursement account will be paid out as construction progresses, which is a common practice in paying a contractor. The final payment is not made until all of the work is complete to ensure that a contractor does not receive payment in full until the work is definitely completed.  This “final payment” requirement protects homeowners from fraud.

• Homeowners with existing mortgages who have already completed repairs on their homes will receive full payment of their awards at closing.

• Homeowners who do not have mortgages and choose to stay have a choice:

• To have their funds placed in disbursement accounts to be managed in the same way as homeowners who have mortgages OR

• To receive their funds over a three-year period as an incentive to meet their covenants.

• Homeowners who do not have mortgages who have already completed repairs on their homes will receive full payment of their awards at closing.

• Homeowners who choose to sell their homes to the state and relocate in Louisiana:
• Will receive full payment of their awards at closing.
  
  
• Homeowners who choose to sell their homes to the state and move out of state:
• Will receive full payment of their awards at closing.

• “Three-year Requirement”:
• Homeowners who choose to stay in their homes, are required to sign a covenant to remain the owner-occupant of the home for the next three years. The covenant applies to both homeowners with and without mortgages.

• Homeowners who choose to relocate are also required to remain the owner-occupant of the home for the next three years.

The Road Home program is designed to help residents of Louisiana affected by Hurricane Katrina or Rita get back into their homes as quickly and fairly as possible.  This groundbreaking program represents the largest single housing recovery program in U.S. history. Working together, Governor Kathleen Babineaux Blanco, the Louisiana Recovery Authority and the Office of Community Development created The Road Home program with the approval of the Louisiana Legislature. The program affords eligible homeowners up to $150,000 in compensation for their losses to get back into their homes.

To start your application to The Road Home program, visit www.road2LA.org or call 1.888.ROAD.2.LA (1.888.762.3252). TTY callers use 711 relay or 800.846.5277.

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