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For Immediate Release

Seniors Citizens Exempt from Penalties under The Road Home Program
New policy announced by Governor Kathleen Babineaux Blanco

BATON ROUGE, La., October 12, 2006 –Senior citizens participating in The Road Home program will not be penalized if they decide to rent or choose to move out of state, Governor Kathleen Babineaux Blanco announced today.

Based on feedback from The Road Home Pilot Program, an adjustment was made so that senior citizens, aged 65 and older, may receive their full Road Home awards and don’t have to use the money to buy new houses if they decide to sell their homes to the State.

"We are working closely with families and individuals throughout the application process. I discovered that many of our senior citizens were often moving from their own homes and into assisted living facilities and nursing homes. Several seniors were choosing to move in with their children," Governor Blanco said.  "I recognize that rebuilding and homeownership may not be the best choices for some seniors who have been displaced because of these storms. Today, we are introducing this new policy so our seniors can make the best personal choice for their future.”

All homeowners whose primary residences suffered damages from either hurricane Katrina or Rita have three options under The Road Home program: stay in their homes, relocate in Louisiana, or sell and move out of state.  Those choosing to or move out of the State would normally fall under the “Sell” option where compensation is based on 60 percent of the pre-storm value minus compensation from other sources.

Homeowners, age 65 years or older as of December 31, 2005, will now be exempt from the 60 percent penalty normally associated with the “Sell” option.

“This change will address major challenges facing seniors that were severely impacted. Now grandmothers and grandfathers can use this money for rental housing, assisted living or to move in with their children,” explained Blanco. “These are the kinds of adjustments that we’re making to continue improving the quality of The Road Home program.

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 Blanco, the Louisiana Recovery Authority, and the Office of Community Development created The Road Home Program to afford eligible homeowners up to $150,000 in compensation 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 1.800.846.5277.

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