RECONSTRUCTION – Reconstructions are different from elevations and have different cost eligibilities. For reconstruction determinations, items such as Road Home Compensation Grants, homeowner insurance structures claims, and NFIP Structure Settlements are deducted from total eligible project costs. (NOTE: If homeowner can show documentation that the settlement or award was used for home repair before the home was demolished and reconstructed, funds will not be deducted from eligible costs) The amount of money a homeowner received from the Road Home Elevation Incentive program and ICC funds designated for elevation are also deducted from total eligible project costs since FEMA Reconstruction guidance requires the new structure be built in compliance with the FEMA Advisory Base Flood Elevations (ABFEs) published for that area.
FREQUENTLY ASKED QUESTIONS
WHAT ARE THE DIFFERENT ELEVATION PROGRAMS?
Road Home Option 1 participants may have had access to one or more of these three elevation programs:
The National Flood Insurance Program’s Increased Cost of Compliance (ICC) program can provide up to $30,000 to eligible policy holders who sustained damage of 50% or more. This is administered through the NFIP (National Flood Insurance Program). Homeowners should contact their flood insurance provider for additional information.
The Road Home Elevation Incentive Award provides $30,000 ($20,000 for mobile homes) to eligible homeowners as an incentive to elevate their homes to meet the local Base Flood Elevation or Advisory Base Flood Elevation. These funds are limited to the specific dollar amount and not to exceed the Road Home $150,000 maximum. For questions about the Road Home Elevation Incentive Award Program, call Road Home at 1-888-ROAD2LA (1-888-762-3252).
The State OCD-DRU Hazard Mitigation Grant Program (HMGP) provides up to $100,000 in additional funds (based on actual construction costs rather than a fixed amount) to eligible homeowners to elevate their homes to meet the local Base Flood Elevation or Advisory Base Flood Elevation, whichever is higher. Under FEMA's Pilot Reconstruction Program, eligible applicants may receive HMGP funds to demolish an existing structure and construct an improved, elevated structure on the same site as long as it is not 10% larger than the original structure. Homeowner eligibility is determined by FEMA based on HMGP regulations.
For all of these programs you should contact your local building code and permit office to determine elevation requirements for your home.
WHAT IF I HAVE COMPLETED ELEVATION, AM I STILL ELIGIBLE?
For the State HMGP Award, if you started construction prior to March 16, 2008, you could still be eligible (Documentation is required). After March 16, 2008, written authorization from the State has been required in order to begin work and remain eligible. Without written authorization you may be ineligible.* In all cases, however, it is important that you contact OCD-DRU before beginning any work to be sure your property is on the FEMA “cleared list.” This means your property was reviewed for environmental and historical preservation issues and for cost effectiveness, and it has been cleared for you to begin work.
* NOTE: Recent legislation (Section 602 of the American Recovery and Reinvestment Act of 2009) seeks to repeal the provision regarding the date of March 16, 2008. Pending clarification and a ruling from FEMA, the provision remains in force.
WHY IS MARCH 16, 2008, SO IMPORTANT?
NOTE: Recent legislation (Section 602 of the American Recovery and Reinvestment Act of 2009) seeks to repeal the provision regarding the date of March 16, 2008. Pending clarification and a ruling from FEMA, the provision remains in force.
FEMA requires that each participating property undergoes an Environmental and Historic Preservation (EHP) review prior to actually disturbing the ground. Normally, work started before EHP clearance disqualifies the property from funding.
Thousands of homeowners who began elevating and reconstructing their homes immediately after Katrina and Rita without first getting EHP clearance were going to be disqualified from participation in the HMGP program. However, FEMA granted a partial waiver for those cases.
Homeowners who began elevating or reconstructing before March 16, 2008, are not automatically disqualified or qualified, but still must pass an EHP review to be deemed eligible.
If you stared work before March 16, 2008, whether you have finished your work or not, you should contact OCD-DRU to identify interest in participating in the program and make sure a FEMA review has been done or will be done. You must be on the FEMA “cleared” list to qualify for HMGP funds.
If you have not yet begun work,you should contact OCD-DRU to identify interest in participating in the program and make sure a FEMA review is completed first. NOTE: Homeowners who start work before receiving FEMA clearance will be ineligible for OCD-DRU HMGP funds.
If you began work after March 16, 2008, please call OCD-DRU at 1-877-744-7235 to determine if and when your property received FEMA clearance. NOTE: If FEMA has not performed the necessary clearance process, you are currently ineligible for OCD-DRU HMGP funds.
NOTE: Recent legislation (Section 602 of the American Recovery and Reinvestment Act of 2009) seeks to repeal the provision regarding the date of March 16, 2008. Pending clarification and a ruling from FEMA, the provision remains in force.
IF I SOLD MY HOME SINCE RECEIVING MY ROAD HOME GRANT, AM I ELIGIBLE?
No. You are not eligible to receive funds under either program if you have sold the home since receiving your Road Home grant.
WHAT SHOULD BE MY FIRST STEP TO GET HMGP FUNDS?
For the State HMGP Award, you need to return the FEMA required Voluntary Participation Agreement (VPA). FEMA then determines your eligibility. Once your home is cleared by FEMA, HMGP analysts will contact you to begin the process of evaluating your eligible reimbursements. If you have not signed a VPA form, or you are not certain whether you did or not, call OCD-DRU toll free at call us at 1 (877) 744-7235 and we will check to see if you have a VPA on file. If not, we will send you one, or you can download a VPA for by clicking on this link: Download VPA
WHEN WILL I GET MY STATE HMGP AWARD?
Prior to the award, each project must be determined eligible by FEMA. Each project must be monitored for construction progress and compliance with HMGP regulations prior to the disbursement of funds.
You get money from us in two steps. For elevations, we first pay you up to half the money when your home is elevated to your required height and you have provided the proper documents and receipts. We call that the Midpoint Payment. Then, when everything is finished, inspected and found to be in compliance, we pay you the remaining half of the money you qualify for (the Final Payment).
For reconstructions, there is a similar two-step process. First, we pay you up to half the money when your new home is framed out and you have provided the proper documents and receipts. We call that the Midpoint Payment. Then, when everything is finished and inspected and found to be in compliance, we pay you the remaining half of the money you qualify for (the Final Payment).
You are under no obligation to us until you get the Midpoint Payment. By accepting that money, you are agreeing to finish your elevation or reconstruction project within the next 12 months in accordance with federal and state HMGP requirements. Of course, at all times you are responsible for the accuracy of the information you provide to us, and for ensuring that the money you get from HMGP is not a duplication of benefits you got from other programs.
DO I NEED A CERTIFICATE OF OCCUPANCY TO GET MY FINAL PAYMENT?
The only time you need a Certificate of Occupancy is for a Reconstruction Final Payment. You do not need it for a Reconstruction Midpoint Payment, and you do not need it for an Elevation Midpoint or Final Payment.
WHAT DOCUMENTS DO I NEED TO PROVIDE TO GET PAID?
Mid-point Payment
A mid-point payment can be made at the point which your home is elevated (or, for reconstructions, when your new home is framed out). In order for us to review your file for eligibility and determine your award, please provide the following documentation.
You can mail in copies of your documentation to the following address. Or we can meet with you and make copies. Please do not mail in your original documentation (such as receipts, elevation certificates, or building permits).
Office of Community Development
Disaster Recovery Unit
Hazard Mitigation Grant Program
P.O. Box 5098
Baton Rouge, Louisiana 70821-5098
Required Documentation for Midpoint Payment (Elevation):
- Voluntary Participation Agreement (VPA) Download VPA
Note: You may have already signed this document when you indicated interest in the Road Home’s Elevation Incentive program.
- Building Permit (and Demolition Permit for Reconstruction Projects)
You can get this from the safety and permit office of your Parish or Municipality. Some parishes provide duplicate permits on their website.
- Elevation Certificate
This is used to verify that your home is elevated to the required elevation. These evaluations are performed by surveyors, architects or engineers. Also, some Parishes provide documentation verifying your home is elevated to the required elevation. If you have an elevation certificate that shows the elevation level before you elevated, please provide that as well.
- Paid invoices, receipts, and cancelled checks documenting payments made
Note: HMGP cannot reimburse you for costs that are not documented. If you paid by check, a copy of the cancelled check is needed. You can get this from your bank statement or by contacting the bank directly. If you paid in cash, we need an invoice marked paid or a receipt.
Required Documentation for Midpoint Payment (Reconstruction):
If you demolished your damaged home and built a new home, you will need to submit the following additional documentation:
- Document verifying the square-footage of your damaged residence
This could be a property tax bill, insurance claim, appraisal, or demolition permit.
- Document verifying the square-footage of your new residence
This could be a property tax bill, building plans, appraisal, or building permit.
If you started your elevation or reconstruction prior to 3/16/2008, please provide documents to verify the date you started. This could be an invoice, receipt, or letter from a contractor.
In addition, in order to receive a payment, you have to agree to certain program requirements. The requirements are detailed in the HMGP Covenant Rider. The document modifies the covenant signed with the Road Home Program. Please contact us for a copy of this document.
Recommended Documentation:
The following documentation is not required, but will help us to determine your eligibility and calculate your award. Please provide these items if they are available.
- Power of Attorney
If you are the eligible Road Home applicant and you would like someone else to handle your HMGP application, you will need to provide a Power of Attorney which allows a designated person to act on your behalf.
- A copy of your recorded Road Home Covenant
- Construction contract
- Building plans
- Photographs documenting your elevation or reconstruction project
Final Payment
A final payment is made when your construction is complete. In order for us to determine your final award, please provide the following documentation in addition to the documentation listed above:
Required Documentation:
- Any additional receipts, paid invoices, or cancelled checks
If you have incurred additional costs since receiving your mid-point payment, please submit supporting documentation.
- Certificate of Occupancy for Reconstruction Projects, not Elevation)
You can get this from the safety and permit office of your Parish or Municipality once construction is complete.
- Proof of current flood insurance
Your flood insurance carrier can provide a copy of your declaration page.
HOW HIGH DO I HAVE TO ELEVATE?
This depends on each individual property. For the State HMGP Award, you must elevate to the ABFE of BFE, whichever is higher. You should contact your local building code and permit office to determine elevation specifics for your property.
WHAT IS AN ADVISORY BASE FLOOD ELEVATION (ABFE) OR BASE FLOOD ELEVATION (BFE)?
The ABFE or BFE establishes the height, relative to the mean sea level, that has a one percent chance or greater of flooding in a given year as determined by FEMA and adopted by your local jurisdiction. An ABFE becomes a BFE once adopted by a municipality.
WHAT IS THE DIFFERENCE BETWEEN ELEVATION AND RECONSTRUCTION?
ELEVATION means physically raising an existing home to or above the Base Flood Elevation. Repair costs are not eligible for reimbursement in an elevation, but things such as reconnecting the plumbing, reconnecting electrical lines, and building access to the elevated home are eligible.
Within this program, RECONSTRUCTION does not mean repairing. It means demolishing an existing structure (that is deemed infeasible for elevation) and rebuilding a new structure on the same lot. That new structure must be hazard resistant and built at or above the local BFE or ABFE, whichever is higher.
NOTE: The total square footage of the new structure cannot be more than 10% larger than that of the old storm-damaged home it is replacing.
WHY IS IT SOMETIMES REFERRED TO AS "PILOT" RECONSTRUCTION?
Normally, FEMA only allows HMGP funds to be used for elevating an existing structure. Rebuilding (reconstructing) a new home when the original has been washed away or is too damaged to elevate is not usually funded through HMGP. However, a special waiver has been granted for damage caused buy hurricanes Katrina and Rita. Therefore, this is a “pilot” or test program, with no guarantee that FEMA will ever allow HMGP funds to be used for reconstruction purposes in other situations.
AM I REQUIRED TO MOVE INTO MY ELEVATED OR RECONSTRUCTED HOME WITHIN 12 MONTHS?
There is an HMGP requirement for a homeowner to reoccupy the property within 12 months of receiving an award payment. However, we can extend the timeline if the applicant demonstrates a reasonable effort to complete the mitigation activity and the work is completed prior to the end of the grant’s performance period.
WHAT ABOUT THE NEW ORLEANS REDEVELOPMENT AUTHORITY (NORA) 270-DAY DEADLINE?
The OCD-DRU HMGP does not work with NORA in the establishment of deadlines for the rebuilding of NORA houses. For more information on NORA or its requirements, please contact NORA directly.
HOW ARE HMGP ELEVATION GRANTS CALCULATED?
HMGP is a reimbursement program, capped at a maximum of $100,000 per household. It is intended to pay only for eligible expenses that were not covered by other programs such as ICC and the Road Home Elevation Incentive Award. Therefore, duplication of benefits is not allowed.
Here is an example of a Elevation Grant calculation:
HOW ARE HMGP RECONSTRUCTION GRANTS CALCULATED?
Reconstruction means demolishing an existing home and constructing an improved, elevated home on the same site.* Since it is a larger, more involved project than an elevation, there are more factors to be considered to avoid duplication of benefits. These include payments received such as those from hazard insurance, flood insurance, FEMA Individual Assistance for home repair, and the Road Home Compensation Grant. All construction costs must be based on work and materials that meet all required codes and standards.
HMGP is a reimbursement program, capped at a maximum of $100,000 per household and is intended to pay only for eligible expenses not covered by other programs.
CAN I APPEAL THE AMOUNT OF MY ELEVATION FUNDING?
The amount of Road Home Elevation Incentive is determined by structure type - $30,000 for site built homes and $20,000 for mobile homes - and whether or not you have reached the $150,000 maximum. The amount of the award may not be appealed.
The State HMGP Award is based on your actual elevation construction costs, not to exceed $100,000. If you disagree with the awarded amount you may appeal.
You may appeal your initial eligibility to receive an elevation grant from either program.
WHAT KIND OF RECEIPTS DO I NEED TO KEEP FOR REIMBURSEMENT?
HMGP is a cost reimbursement program. In order to effectively document that eligible work was both performed and paid for, we require verification of payment (paid invoices, receipts, cancelled checks documenting work, contractor statement on company letter head certifying that an eligible expense was paid for if no other documentation is available). If a homeowner chooses to provide a bank statement that reflects the payment of an eligible expense, then that form of documentation is acceptable as well.
WHAT IF I PAID WITH A CREDIT CARD?
If you paid for the expense with a credit card, an invoice and the receipt for the credit card transaction is sufficient justification to document the transaction.
WHAT DO YOU MEAN BY "DUPLICATION OF BENEFITS"?
Once you receive enough money to complete your project from program funds dedicated to such projects, no additional money can be granted. In other words, if your elevation cost $45,000 and you got $30,000 from ICC and $15,000 from the Road Home Elevation Incentive, you would have received the total amount needed to elevate, and any additional funds from HMGP would be a duplicate of the benefits already received. Therefore, by law, you would not qualify for additional HMGP funding.
HMGP Reconstructions are a bit different when it comes to duplication of benefits. For Reconstruction determinations, items such as Road Home Compensation Grants, homeowner insurance structures claims, and NFIP Structure Settlements are deducted from total eligible project costs (NOTE: If homeowner can show documentation that the settlement or award was used for home repair before the home was demolished and reconstructed, funds will not be deducted from eligible costs). The amount of money a homeowner received from the Road Home Elevation Incentive program and ICC funds designated for elevation are also deducted from total eligible project costs since FEMA Reconstruction guidance requires that the new structure be built in compliance with the FEMA Advisory Base Flood Elevations (ABFEs) published for that area.
To clarify: The Hazard Mitigation Grant Program looks at what the actual cost of the elevation or reconstruction is and the resources used to pay said activity. This is to ensure that homeowners do not receive more money than it costs to elevate or reconstruct their structure.
WHAT IS REIMBURSABLE?
Some of the work and/or items used in elevating or reconstructing your home might include the things listed in the following document. All costs that are directly associated with the elevation or reconstruction activity may potentially be eligible for reimbursement. Approval from FEMA and the Governor’s Office of Homeland Security and Emergency Preparedness (GOHSEP) is required to reimburse costs outside of the following lists and approval is needed for any displacement costs associated with reconstructions.
IS INSTALLING AN ELEVATOR A REIMBURSABLE EXPENSE?
If a homeowner has the proper medical documentation, the cost of an elevator and its installation may be eligible for reimbursement. The elevator must meet certain specifications, so contact your HMGP mitigation analyst as soon as possible when considering purchase or installation. The HMGP does not discriminate on the basis of race, color, national origin, sex, age, religion or disability, and provides, upon request, reasonable accommodation, to afford an individual with a disability an equal opportunity to take advantage of available services.
WHAT IS THE HMGP AWARD COVENANT RIDER?
The HMGP Covenant Rider is required by FEMA. It modifies the Road Home covenant you signed at closing. The covenant rider must be recorded and will require assuring such things as completion of construction, compliance with building codes, elevation standards, building permits, contractors, current flood insurance, and other FEMA requirements.
DO YOU HAVE A LIST OF APPROVED CONTRACTORS?
OCD-DRU HMGP is not affiliated with any contractor or contracting firm, and does not endorse or recommend any contractor or contracting firm. The Louisiana State Licensing Board for Contractors has a database of licensed contractors at www.lslbc.louisiana.gov/findcontractor.asp.
HOW DO I CONTACT YOU TO LEARN MORE OR TO GET STARTED?
To learn more about the OCD-DRU HMGP Award, call us toll free at:
1-877-744-7235
or email us at
hazardmitigation@la.gov
