Today, Gov. John Bel Edwards issued the following statement on the response issued today by the U.S. Dept. of Housing and Urban Development to the Action Plan Amendment (APA) submitted by Louisiana. The APA is to help alleviate the Duplication of Benefits problem for the 2016 flood impacted homeowners who took out Small Business Administration loans and have not been able to participate in the Restore Homeowners Assistance Program. As part of HUD’s guidance issued in June, the state was required to submit APA 12 in order to authorize the use of Community Development Block Grant Disaster Recovery funds for reimbursement of disbursed SBA loan amounts. This approval will help relieve the burden for homeowners at or below 120 percent Area Median Income (AMI). HUD is requesting additional information for those families above 120 percent AMI.
“This new guidance means relief for nearly two thousand Louisiana homeowners who previously were prevented from accessing assistance from the Restore program because of the SBA duplication of benefits problem, and today that is no longer the case,” said Gov. Edwards. “While it is not everything we asked for, it will provide much needed help to our citizens who have been burdened by those loans, and we are thankful to our congressional delegation and HUD for their work in addressing this issue. Pat Forbes and his team with the Office of Community Development will continue working with officials from HUD in submitting the additional information requested in order to help even more of our people continue to rebuild and move forward.”
Since receiving HUD’s original SBA guidance, the Program expedited reimbursement to nearly 870 homeowners who received over $16 million in funds that were previously inaccessible due to federal regulations that required even the undisbursed portions of SBA loans to be considered DOB whether the loans were canceled, declined, or accepted.
Click here to see release from the Office of Community Development
Last modified: October 11, 2019