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State Of Louisiana To Free 3300 Louisianans From Legal Action And Road Home Repayment Obligations

Under the road home program, the Louisiana state will stop legal action and release homeowners from repayment obligations.

August 7, 2023

Washington- The State of Louisiana will forego legal actions and free 3300 homeowners from their debt obligations as announced by Marcia L. Fudge, HUD’s Secretary. The state will release unpaid judgments and payment plans against homeowners in April in compliance with HUD’s Corrective Action.

Now, Louisiana will not require any further repayments from the impacted homeowners as it can easily make good findings on the remaining road home program. The agreement gives families the freedom and ability to live free from debt, making any repairs or selling their property without worrying over payment plans.

HUD’s Secretary Marcia L. Fudge said, “For more than 17 years, many Louisianans have not had the freedom to fully move on from the pain and trauma of Hurricanes Katrina and Rita – that changes today. I have made it a priority to clear the cloud of debt that has impacted too many families and individuals. This action is about providing peace of mind and freedom. Louisianans have shown their resiliency and strength time and time again over the past years, and now they will feel the relief from this burden.”

The Louisiana Road Home Program gave around $9 Billion to over 130,000 Louisiana residents to incentivize single-family homeowners so that they can build while staying in the community itself. These funds will also make properties safer and more resilient for future floods. The program will elevate around 13,400 homes and reduce the risk of future storms. Besides this, the program also helped nearly 8500 families to move to safer homes including 39,000 households to install mitigation measures in their homes.

Unfortunately, the total amount homeowners received from the program fell short of the total cost of recovery. Consequently, the state began to recover funds with which homeowners have already made the repairs. 700 homeowners have court judgments pending against them out of which 231 judgments are active for payment plans. The homeowners had to pay $46,000 to the Louisiana state as the court judgments were against them.

Being in New Orleans, HUD’s Secretary met the Saunders family as they had a debt of $30,000. Like other homeowners, the cost of elevating the home exceeded the amount they got and the state asserted that the amount was not used appropriately. Fortunately, the full $30,000 will be cleared by the state and the family no longer needs to pay all thanks to the agreement.

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The content provided in this article draws inspiration and includes quotes from various reputable sources, including news articles, government data, and interviews. Affordable Housing 411 strives to ensure accuracy and credibility, but the information presented may be based on some external sources. We encourage readers to refer to the referenced materials for more in-depth insights and verification.

Department of Housing and Urban Development. “State Of Louisiana Reach Agreement To Free 3,300 Louisianans From Road Home Repayment Obligations”. HUD, February 16, 2023,
State of Louisiana Reach Agreement to Free 3,300 Louisianans from Road Home Repayment Obligations | HUD.gov / U.S. Department of Housing and Urban Development (HUD)

Last Updated: September 20, 2021