A recent Times-Picayune report discusses the progress of the program and some of the delays experienced throughout the process.

Blanco's letter goal met, LRA says
But many notices rely on unverified data

Road Home administrators are still working to eliminate delays in the flow of information from many insurance companies, whose role in the state grant program is to verify the amount of insurance proceeds homeowners received for their damaged properties. Because the verification process is so tedious, as many as 40 percent of the award letters may be based on unverified details, said Fred Tombar of Tombar Consulting Group, a company hired to help administer the $7.5 billion grant program.

Tombar said care is being taken in preventing mistakes in the final letters, after a review of a batch of preliminary award letters sent recently to homeowners revealed a 25 percent error rate.

Officials couldn't offer current error-rate details. The accuracy of the award letter depends on the accuracy of the insurance claim information provided by residents when they applied for a Road Home grant, intended to reimburse homeowners for uninsured hurricane-related losses up to $150,000.

Owners who provided correct information on their applications can bank on the award figures, and can even officially accept a grant -- called a closing -- although the information is not yet verified, Tombar said. That last-resort remedy, approved by Blanco's administration, requires the signing of an agreement that requires an adjustment of the grant terms if new information is turned up in the verification process, with the possibility that grant money issued in error would have to be paid back.

"This is it, the final letter, they're printed on gold paper," said Tombar, a New Orleans native. "The goal was to get 10,000 final letters to folks, and we've done that."

Thousands still waiting

While the 10,000 goal was reported topped Wednesday, the award letters still total less than 15 percent of roughly 83,000 people who applied for help through the federally financed program. The average award calculated so far is $64,992, officials have reported.

Option letters that must be sent in by homeowners in response to an award notice so far total 122, with 54 closings held to date and another 25 grants scheduled for a closing, officials said Wednesday. It takes two to four weeks to schedule a closing after an option letter is received by the Road Home staff, barring glitches with property titles, they said. The letters instruct homeowners to decide what they want to do: rebuild/renovate on their property, take a buyout but purchase another home in Louisiana, or take a buyout with the intention of leaving the state.

Homeowners are urged to call the Road Home program at 1 (888) 762-3252 if they have questions about how awards were calculated. An appeal process is available for property owners who can't resolve their concerns after talking with a housing counselor.

Louisiana Recovery Authority member Walter Leger, a St. Bernard Parish lawyer who plays a lead role in setting Road Home policy, said he believes administrators have met Blanco's goal, even if not all insurance details on the letters have been verified.

"It's consistent with what we were after," he said. "What we want to get to homeowners is a number that they can rely upon. The verification process is necessary for purposes to ensure the integrity of the process" and to meet requirements of federal officials.

But Leger was surprised at plans to allow closings even if not all information details have been verified. "I was expecting a little bit more conversation on that."

Blanco spokeswoman Marie Centanni said, "The governor is pleased to see the accelerated pace (of award decisions) but she won't be satisfied until every homeowner has access to the Road Home funds they need. The governor will continue to step up the pace, and will announce a new benchmark" Thursday. She offered no comment on the verification issue.

Slow pace infuriates

The slow pace of Road Home grant approvals has become a hot political issue, and three weeks ago, when award calculations numbered fewer than 1,400, Blanco ordered the lead contractor running the program, ICF International, to approve money for 10,000 storm-damaged families by the month's end. Program workers have since raced to meet that goal, trying at one point to count "preliminary" award notices toward the 10,000 figure. Tombar Consulting is a subcontractor to ICF International.

Administrators have blamed slow progress on difficulties in obtaining verification information from insurance companies, and last week Blanco joined Commissioner of Insurance James Donelon in sending a stern message to companies with claims from Hurricanes Katrina and Rita. About 40 percent of the insurance companies still have not finalized data-sharing agreements with the Road Home program but "they're gradually coming on board," Tombar said. "They have privacy concerns; they want to be assured that they are protected by the agreements."

Road Home officials said it's impossible to know how quickly award-notice letters will translate into actual closings -- and tangible impacts on damaged properties. Tombar said preliminary feedback indicates that some homeowners who get substantial awards may not be quite prepared for the legal commitments that come with a closing, including having to continue living in the homes they restore for at least three years. Many probably haven't resolved worries about schools, jobs and other quality-of-life issues, and they may not have identified a contractor who can carry out the rebuilding project, he said.

Each decision to accept a grant "has tremendously difficult implications for the life that people will be able to lead," Tombar said.

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