Saturday, May 10, 2008

Road Home Performance Measures Agreed Upon

FOR IMMEDIATE RELEASE
April 25, 2008
MEDIA CONTACT:
Christina Stephens


Louisiana Recovery Authority

225.603.3896

christina.stephens@la.gov

State, ICF Agree Upon Road Home Performance Measures through End of June


Agreement includes accelerating Road Home closings, focus on Small Rental program


BATON ROUGE, La. (April 25, 2008) - New performance measures signed by the state and ICF International mandate that the Road Home close 116,000 total cases, complete more than 2,300 second disbursements and 500 elevation second disbursements by the end of June or face penalties of more than $1 million, the state announced Friday.
The state and ICF signed the agreed upon measures Thursday. For the first time, they include performance measures for the Small Rental Property Program (SRPP) in addition to the Road Home homeowner program.

"As we push for greater compassion and customer service in the Road Home, we must also stay focused on the ultimate goal of getting rebuilding dollars in the hands of homeowners and landlords," said Paul Rainwater, who serves dually as the executive director of the Louisiana Recovery Authority and the Office of Community Development. "The performance measures require that ICF accelerate its pace in three critical areas of the homeowner program - closings, elevation awards and second disbursements."
The total maximum penalty ICF could face under these performance measures is $1,675,000, including a $1 million penalty if it does not reach 116,000 homeowners closings by June 30, 2008. The performance measures are for the time period from April 1 to June 30, 2008. They are:

Homeowner Measure No. 1 - Closings

As of April 22, the Road Home has held 107,151 closings. By June 30, 2008, ICF must complete a total of 116,000 closings. For each closing below 116,000, the state will assess a performance penalty of $500. The maximum penalty of this performance measure is $1,000,000.
"Many of the easiest to close cases have already been processed, so closing 10,000 cases each month is no longer practical," Rainwater said. "Each applicant much be treated compassionately and fairly. We believe ICF can meet this 116,000 mark by the end of the quarter, meaning that most of the cases will be closed this summer."

Homeowner Measure No. 2 - Appeals
Because the state and ICF are reworking the Road Home appeals process, the appeals performance measure will be negotiated when this new policy is in place.
Homeowner Measure No. 3 - Second Disbursements
ICF must clear 80 percent of the 2,933 second disbursements open as of March 31. The state will consider a second disbursement cleared if funds are dispersed to the homeowner, if it is determined that no additional funds should be disbursed or if it is determined that money should be recovered from a homeowner. For each second disbursement less than 2,346 that is not appropriately cleared, the state will assess a performance penalty of $250. The maximum penalty of this performance measure is $250,000.
The state has not yet set a recapture policy on how the Road Home will recoup overpayments, but will do so in the coming weeks.
Homeowner Measure No. 4 - Elevation awards
ICF will close a minimum of 500 elevation-related second disbursements. For each elevation related additional disbursement less than 500, the state will assess a performance penalty of $250. The maximum penalty of this performance penalty is $125,000.

Small Rental Measure No. 1 - Loan Commitments
As of March 24, 2008, the SRPP has mailed a total of 798 firm commitment letters to applicants. This represents $64,642,399 to fund 1,495 total rental units, including 1,317 affordable units. There is currently an active pool of about 4,000 Round 2 applicants that are now beginning to receive commitment letters.
In order to generate a commitment letter a loan summary must be submitted by ICF to the state for approval.
Each month in the second quarter, ICF must submit 500 loan summaries to the state for approval, dependent upon there being a large enough pool of applicants ready for commitment letters.
This is a total of 1,500 loan summaries within the second quarter. For each loan summary less than the goal the state will assess a penalty of $500. The maximum penalty of the performance measure is $200,000 total for the quarter. This performance goal will be assessed monthly.

Small Rental Measure No. 2 - Property Titles
Because the SRPP can not issue loan commitments or final awards to properties without first reviewing titles, it is critical that ICF review and clear titles in a timely manner. For the months of April, May and June, ICF must review 90 percent of all titles received by the 25th of each month. For each title received by the 25th of the month and not reviewed, the state will assess a performance penalty of $250. The maximum penalty of the performance measure is $100,000 total for the quarter. This performance goal will be assessed monthly.

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