By Murray Wennerlund published 10-1-2018 updated 6-5-2019
Review of:
Update / Change Log:
Background: The Louisiana Restore Homeowners Program developed exclusively by the State of Louisiana Office of Community Development - Disaster Recovery Unit and managed by IEM Inc. of North Carolina,
It's important to note that HUD will often change it's elevation policy based on the storm surge or flood levels of the actual disaster HUD is attempting to help with long term recovery funds.
IEM Inc. Management of DR-4263 and DR-4277 Great Floods of Louisiana 2016.
Using the website of Restore.La.Gov managed by the state IT department and updated by independent contractors and IT specialists under the watchful eye of locally and out of state hired managers for IEM Inc.
IEM Inc. Approved Contractors based on their Contract with the State of Louisiana Office of Community Development - Disaster Recovery Unit. (Reference State Flood 2016 contracts.)
------------ First available Publication --------------
THE RESTORE LOUISIANA HOMEOWNER ASSISTANCE PROGRAM
PROGRAM MANUAL
(No version number)
May 31, 2017
Page 5, 6
d. Elevations
Elevations will be evaluated on a case-by-case basis.
Page 44
d. Types of Damage Assessments
1. Reconstruction Estimates
... The total living area is multiplied by $70.75, per square foot cost factor to establish a replacement allowance for the home plus a separate cost of elevation, if required. ... A separate cost of elevation, when applicable, will be added.
Page 46, 47
14. Construction
a. Reconstruction Allowance
Replacement allowances for reconstruction estimates are based on:
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THE RESTORE LOUISIANA HOMEOWNER ASSISTANCE PROGRAM
PROGRAM MANUAL
November 9, 2017
Version 2.0
Page 11, **Comment: first mention of base flood elevation requirements from HUD.**
Homeowners who have completed their repair or reconstruction projects and were required to elevate, per federal requirements, are only eligible for Program funding if he/she has elevated the property to the federally required height of two (2) feet above the Advisory Base Flood Elevation (ABFE).
Page 55, 56
2. Reconstruction Estimates
The eligible reconstruction square footage is multiplied by a $70.75 per square foot cost factor to establish a replacement allowance for the home plus a separate cost of elevation, if required.
Page 57,58
14. Construction
a. Reconstruction Allowance
Replacement allowances for reconstruction estimates are based on:
Page 77
Estimates
O&P is not added to any reconstruction estimate because it is already factored into the per square foot replacement allowance.
Page 79
RECONSTRUCTION CALCULATION
Reconstruction Estimate: This line is the total of your living area square footage multiplied by $70.75/square foot.
Total DOB: The total Duplication of Benefits applicable to your reconstruction appears on this line.
Reconstruction Award: This is the reconstruction estimate amount less the DOB.
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THE RESTORE LOUISIANA HOMEOWNER ASSISTANCE PROGRAM
PROGRAM MANUAL
January 25, 2018
Version 3.0
Page 45
The Program will abide by the decisions of the local jurisdiction regarding elevation requirements.
Page 57
2. Reconstruction Estimates
However, the repair estimate process does include attached garages as an eligible room. Therefore, the reconstruction estimate will be based on the total area (as defined above) minus any attached garage square footage. This calculation will result in the eligible reconstruction square footage.
The eligible reconstruction square footage is multiplied by a $78.00 per square foot cost factor to establish a replacement allowance for the home plus a separate cost of elevation, if required. Reconstruction estimates are performed on all homes and are the only type of estimate performed when a home is unsafe to enter or has been demolished or partially demolished. A separate cost of elevation, when applicable, will be added.
Page 58
The Program makes the final decision on the eligibility of an applicant and, if eligible, the structure type and square footage used for grant calculation.
Page 59
14. Construction
Adherence to the applicable Green Building Standard will be verified at each construction draw inspection. Should an applicant or an applicant's contractor fail to comply with the applicable Green Building Standard, the work is not eligible for payment under the program.
a. Reconstruction Allowance
Replacement allowances for reconstruction estimates are based on:
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THE RESTORE LOUISIANA HOMEOWNER ASSISTANCE PROGRAM
PROGRAM MANUAL
March 16, 2018
Version 3.1
Page 8
1. Definitions
Reconstruction: Demolition and rebuilding of an existing structure based on the program’s building
standards. Reconstructed property is built on the same footprint as the original structure and will not
substantially exceed (limited to an increase of 20% or less) the square footage of the current or
demolished structure. This requirement will subordinate to the local jurisdiction’s building code
requirements
Page 56,57
12. Elevation Requirements
b. Solution
2: Homeowner Managed Construction
If a local jurisdiction is going to require the applicant to elevate, the applicant will need to notify the RLHP of the requirement when they or their home building/home improvement contractor obtains all necessary permits.
The RLHP will adhere to the following guidelines:
1. If elevation is required and the home is slab on grade, the home will become a reconstruction project. The Applicant must submit their reconstruction design plans to the RLHP. The Program will evaluate the reconstruction plans to verify design for ABFE + 2.0’ requirement. The Applicant is required to submit the final elevation certificate demonstrating compliance with the ABFE +2.0’ Program requirement. The Elevation Certificate must be submitted to RLHP to confirm proper elevation height has been completed prior to final payment.
2. If elevation is required and the home is pier and beam, elevation costs are eligible to be included in the ECR. The RLHP would then add elevation costs as a change order, based on the local jurisdiction requirement to elevate. The RLHP would provide cost to elevate the structure to ABFE + 2.0’, and notify the homeowner of the ABFE + 2.0’ requirement. The Applicant is required to submit the final elevation certificate demonstrating compliance with the ABFE +2.0’ Program requirement. The Elevation Certificate must be submitted to RLHP to confirm proper elevation height has been completed prior to final payment.
Page 62
13. Repair and Reconstruction Estimates
2. Reconstruction Estimates
The eligible reconstruction square footage is multiplied by a $78.00 per square foot cost factor to establish a replacement allowance for the home plus a separate cost of elevation, if required. Reconstruction estimates are performed on all homes and are the only type of estimate performed when a home is unsafe to enter or has been demolished or partially demolished. A separate cost of elevation, when applicable, will be added.
**Note only two determinations Unsafe Conditions and Demolished structures. The program does not address the substantially damaged issue?**
Page 64,65
14. Construction
a. Reconstruction Allowance
Replacement allowances for reconstruction estimates are based on:
Solution 2 applicants who will be managing their own reconstruction project must hire a licensed and insured homebuilding contractor. The applicant must submit the design drawings to the program, along with their construction contract, contractor’s information, and permits prior to beginning construction activities. There is no square footage limitation on a Solution 2 reconstruction project. However, the Program will only pay the Program-determined reconstruction award, less and duplication of benefits, and in accordance with the applicant’s award tier. The applicant is responsible for any costs over and above the Program award. Any amount of necessary funding that exceeds the Program award must first be paid by the applicant, before any Program dollars are used. If the home is in the SFHA, the applicant is responsible for ensuring that the home is built such that the lowest habitable floor is two (2) feet above the ABFE. RLHP will evaluate the applicant’s submitted design drawings to verify that the elevation requirements have been incorporated into the new home’s design. The applicant must also provide a final elevation certificate demonstrating that the home was built to the two (2) feet above the ABFE Program requirement. The applicant must also build the home to energy efficient standards and provide proof that the new home has achieved Energy Star Certified Home status.
Page 79
Solution 2 Homeowner Managed Rehabilitation / Reconstruction: Under this solution, you will contract with your homebuilding contractor directly. Prior to grant execution for this solution, you must supply your selected licensed and insured contractor’s information and your construction contract to the Program. Your homebuilding contractor is responsible for obtaining all necessary permits and you are responsible for providing copies of permits to the Program. The Program will issue two-party payment to you and your homebuilding contractor based on the payment schedule in your written construction contract or subject to the Program guidelines. The contractor’s information and a copy of the executed construction contract must be provided to RLHP prior to grant agreement execution. Construction must begin within 180 days of execution of the grant agreement unless a written hardship extension is approved, or your award will be terminated.
The Program will allow you to self-manage your construction project or hire a licensed and insured homebuilding contractor or registered home improvement contractor to complete the work. Any work required by law to be performed by a licensed professional (i.e. electrical, plumbing, and mechanical) may not be self-managed unless you are a holder of the necessary license or your trade provider holds the necessary license. If you choose to self-manage your repair work, you must check with your local permitting office on whether or not your scope of work includes work that requires a permit. The Program may require documentation from you showing that you confirmed your scope of work with your local permitting office and that the permitting office determined no permits were required. If permits are required, the Program may require documentation from you showing that the work, as applicable, was in fact performed by a licensed professional.
Page 80
ESTIMATES
Overhead and Profit (O&P) will be added to both Solution 2 and Solution 3 estimates. This additional 20% is intended to cover the inherent costs of obtaining and paying a homebuilding contractor, as this is the typical charge passed onto the homeowner. O&P is not added to Solution 1 awards, but is still paid on your behalf to the homebuilding contractor. O&P is not added to mobile home replacement awards.
Page 82
RECONSTRUCTION CALCULATION
Reconstruction Estimate: This line is the total of your living area square footage multiplied by $78.00/square foot.
Total DOB: The total Duplication of Benefits applicable to your reconstruction appears on this line.
Reconstruction Award: This is the reconstruction estimate, as determined by the Program, amount less the DOB.
Tiered Reconstruction Award: You will receive up to 100% of your Total Eligible Reconstruction Award, as determined by the Program, regardless of your assigned Phase or income.
Page 88
ESTIMATES
Overhead and Profit (O&P) will be added to both Solution 2 and Solution 3 estimates. This additional 20% is intended to cover the inherent costs of obtaining and paying a homebuilding contractor, as this is the typical charge passed onto the homeowner. O&P is not added to Solution 1 awards, but is still paid on your behalf to the homebuilding contractor.
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THE RESTORE LOUISIANA HOMEOWNER ASSISTANCE PROGRAM
PROGRAM MANUAL
October 5, 2018
Version 4.0
Page 18
b. Solution
2: Homeowner Managed
Applicants may choose to manage their own rehabilitation project and the Program will provide a Construction Technical Advisor (CTA) for all applicants in this solution. Applicants will select their own licensed and insured homebuilding contractor or certified home improvement contractor and contract directly with them. However, the RLHP will also allow applicants to self-manage their rehabilitation project in accordance with Louisiana's Contractors Licensing Law - LA R.S. Title 37. If the applicant chooses to self-manage their rehabilitation project, any repairs that require a permit must be completed by an individual or company possessing the requisite license. Applicants whose construction activity under the RLHP is reconstruction, rather than rehabilitation, must obtain a licensed homebuilding contractor to perform the reconstruction scope of work.
Requirements for applicants obtaining licensed homebuilding or home improvement contractor. A verification of licensing and insurance will be conducted for any homebuilding contractor or home improvement contractor selected by the applicant. Applicants may only use homebuilding or home improvement contractors that meet these minimum standards. The contractor’s information and a copy of the executed construction contract must be provided to RLHP prior to grant agreement execution.
Requirements for applicants who will self-manage their rehabilitation project. Applicants choosing to manage their own rehabilitation project will be required to submit additional documentation. If the repair scope of work is equal to or less than $10,000.00, the applicant will need to submit the homeowner managed self-certification form provided by the RLHP Construction Technical Advisor (CTA). If the repair scope of work is greater than $10,000.00, the applicant will need to submit the homeowner-managed self-certification form and will need to provide additional supporting documentation in the form of bids or contracts for the repair work. The purpose of this additional requirement for applicants with repair scopes of work greater than $10,000.00, is to have the applicant provide proof of the applicant’s construction project plan, ability and resources necessary to manage the rehabilitation project to completion.
All Solution 2 applicants. Construction must begin within 180 days of execution of the grant agreement unless a written hardship extension is approved, or the applicant’s award will be terminated.
Applicants or their homebuilding/home improvement contractor must obtain all necessary permits. In the cases of MHUs, elevation, reconstruction projects, and substantial damage determinations, copies of an applicant’s permits must be provided to the Program.
Applicants will enter into a grant agreement with the State for their eligible Program funding. Construction Technical Advisors will provide applicants with the information and assistance necessary to support compliance with Program rules. The Program will monitor all projects in the Homeowner Managed Solution (Solution 2).
Construction progress will be monitored and payment of each progress draw is contingent upon satisfactory inspection of the home by the Program. In the event that an applicant self-manages his/her own construction project, the Program may issue a single-party check to the applicant. The applicant is solely responsible for paying for any contracted work directly to the party or parties with whom the applicant contracted.
At the Program's discretion, RLHP may issue two-party payment to the applicant and the homebuilding contractor/home improvement contractor based on the payment schedule in the applicant's written construction contract. RLHP will not pay any advance payment on behalf of an applicant, regardless of the terms of the applicant's contract between the applicant and their homebuilding/home improvement contractor. The RLHP will issue no more than five construction draws per applicant construction project, regardless of the terms of the applicant's contract. Any applicant whose construction contract requires more than five construction draws must negotiate terms of these additional payments with their homebuilding/home improvement contractor.
These procedures do not guarantee payment to the applicant’s homebuilding/home improvement
contractor. Further, these procedures do not create a contractual relationship between RLHP and
the applicant's homebuilding/home improvement contractor. Finally, the applicant's
homebuilding/home improvement contractor is not a third-party beneficiary of the applicant's grant
agreement between the applicant and the RLHP.
Page 23,24,25
d. Elevations
If local code, ordinance or code enforcement official requires elevation of a home and that home has a slab-on-grade foundation, the only option for assistance under the RLHP Solution 1 Program will be reconstruction with elevation. RLHP will not elevate slab-on-grade structures under Solution1. However, if Solution 2 is chosen, a slab-on-grade elevation will be permitted. Elevation will be funded at 100% of Program approved cost when elevation is required.
"Substantial improvement" means any reconstruction, rehabilitation, addition or other improvement to a structure, the total cost of which equals or exceeds 50 percent of the market value of the structure before the start of construction of the improvement.
The Program does not decide whether a home needs to be elevated. Homes that are located inside a floodplain and which are substantially damaged, as determined by the local jurisdiction, will require elevation to Program requirements of two (2) feet above the Base Flood Elevation (BFE), two (2) feet above the Advisory Base Flood Elevation (ABFE), or the local jurisdiction requirement, whichever is greater, in order to be compliant with HUD federal registry 81 FR 83254 (November 21, 2016). In most cases, unless required by local ordinance, properties that are being repaired, rather than reconstructed, will not be eligible to be elevated through the Program.
Elevation will be funded at 100% of Program approved cost, when elevation is required, and must result in a final elevation height of two (2) feet above the BFE, two (2) feet above the ABFE, or as required by local jurisdiction, whichever is greater. Elevation costs are restricted to physical structure elevation on pilings, CMU blocks, pier and beam, or other structurally appropriate methodology. RLHP will not pay for fill as an elevation method for Program Solution 1 slab-on-grade elevations.
If a stick-built home is required to be reconstructed with elevation (rather than repaired and elevated), the Program will provide the lesser of the actual cost of elevation or the program cap, based on the table below. For elevations between two given values, the value of the Cost per Floor plan corresponding to the higher of the two elevations shall be utilized. In cases where the square footage of the proposed floor plan lies between two given floor plans, the value of the Cost per Floorplan corresponding to the lower square footage of the two floor plans shall be utilized. Reconstruction plans include the cost necessary to elevate up to three (3) feet with a minimum elevation height of two (2) feet above ground level. Homes requiring elevation higher than nine (9) feet will be reviewed on a case-by-case basis. See below for the reconstruction elevation price table for stick-built homes:
| Elevation | 850/sf | 1100/sf | 1300/sf | 1400/sf | 1700/sf | 2100/sf |
| 6' | $36.63 | $33.90 | $32.81 | $33.27 | $30.87 | $28.35 |
| 9' | $40.73 | $37.62 | $36.42 | $36.95 | $34.28 | $31.47 |
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THE RESTORE LOUISIANA HOMEOWNER ASSISTANCE PROGRAM
PROGRAM MANUAL
October 12, 2018
Version 4.1
NO CHANGES related to reconstruction since version 4.0 release.
** NOTE: APA 9 identifies elevation grant amounts based on size of home. Listed in Manual v4.x.**
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| Elevation | 850/sf | 1100/sf | 1300/sf | 1400/sf | 1700/sf | 2100/sf |
| 6' | $36.63 | $33.90 | $32.81 | $33.27 | $30.87 | $28.35 |
| 9' | $40.73 | $37.62 | $36.42 | $36.95 | $34.28 | $31.47 |
Solution 1 Home Models
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(Reconstruction Solution 1 Flood plans.)