ࡱ> 3 bjbjdd W, l    $ DDD8| ,$ m:mmmmmmm$Ko kq(m "(m, =m,,,j  8m,m,,e2 l PS$ D@vhHlDSm0mikrvkrl,$ $ December 6, 2006 MORTGAGEE LETTER 2006-29 TO: ALL APPROVED MORTGAGEES ATTENTION: Single Family Servicing Managers SUBJECT: Louisiana Road Home Program The State of Louisiana has now finalized an action plan for use of Federal Community Development Block Grant (CDBG) disaster funds to assist homeowners who suffered flood and/or wind damage to their residences from Hurricanes Katrina and/or Rita. This mortgagee letter provides guidance regarding grant program issues specific to FHA-insured loans. Under the state plan, eligible homeowners may receive a one-time grant payment, up to a maximum of $150,000, for home damages not covered by property insurance, FEMA grants or other Federal, state or local government programs. In exchange for the grant payment, a qualifying homeowner must agree to covenants and restrictions running with and encumbering the damaged property. Those covenants require flood insurance to be maintained if the property is located in a Special Flood Hazard Area under FEMA Flood Maps, rebuilding and repairs in accordance with applicable housing codes and ordinances, building elevation in accordance with FEMA recommended flood elevations, and homeowner occupancy for three years. Existing lienholders must subordinate their liens to the state required covenants for the homeowner to be eligible for the Grant award. However, the declaration of covenants generally provides that the covenants shall not be enforced against the mortgagee, FHA, or any subsequent purchaser except to the extent that the subsequent purchaser breaches the covenants. Subordination Requirement Given the enforcement exceptions just noted, HUD has no objection to the subordination of FHA-insured first mortgage liens to the covenants required by the state as a condition for grant awards, and covenant-encumbered title that is otherwise good and marketable will be acceptable to HUD upon claim. Secretary Held Liens HUD may hold a lien on some eligible properties as security for a partial claim, section 235 subsidy mortgage, HECM mortgage, an assigned FHA mortgage or a property sale under HUDs Good Neighbor Next Door sales program. Requests to subordinate such liens to the State required covenants should be submitted to HUDs servicing contractor at the address below: U.S. Department of HUD c/o Morris Griffin Corp./First Madison Services, Inc. 4111 South Darlington, Suite 300 Tulsa, Oklahoma 74135 Phone: (800) 967-3050 The information collection requirements contained in this mortgagee letter have been approved by the Office of Management and Budget (OMB) under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520) and assigned OMB control number 2502-0429. In accordance with the Paperwork Reduction Act, HUD may not conduct or sponsor, and a person is not required to respond to, a collection of information unless the collection displays a currently valid OMB control number. Any questions regarding this Mortgagee Letter may be directed to HUD's National Servicing Center (NSC) at (888) 297-8685 or hsg-lossmit@hud.gov. ________________________________________ Brian D. Montgomery Assistant Secretary for Housing- Federal Housing Commissioner  PAGE 3 PAGE 2  U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT WASHINGTON, DC 20410-8000 ASSISTANT SECRETARY FOR HOUSING- FEDERAL HOUSING COMMISSIONER  HYPERLINK "http://www.hud.gov" www.hud.gov espanol.hud.gov ? Y  /IJKL0J#5>*B*CJphj5CJU5CJj5CJU CJOJQJ@CJ@CJ@@CJ@CJ0J%mHnHu0J% j0J%U jU0J) W5\5**+,LMz{O> ? Y Z ` p^p` ^`  % [ | ~A[ ^` 0*$(` ^``/JKL d*$] $d*$]a$ $d*$a$ @!h]h!&`#$dLm"$a$!$*$a$ .....()()))() 0000&PP/ =!"#$8%8$`!|3yiH(L x x]lE^ k !6cvLxIjG0bhZBiM};5|]@ һcuvݙ3zw @O=G^/` ` LM9>9=ur&A?mbl>~dz#30y2aYs>kпog?~IZg4X4SkObR` U1v~lgHsypȈ# mbhc)/ {^i,Q{(1Vk 9FA*|_f8ؑȎbv<-K'Zoߐ(>3ERΈC8AO";uv~_@t2,geUضc^Ύ6neYGĬhYvs(jڸgP˪z 6vN T>l` :4Yu0΅3k~ϊmˊ$^D~$ VsdR}$e("ɰR|SbSA([Y(5^mtN2gyU's d3d^OR]M-rURcz:4Uk)ee9c=/7a;¬N֜-lҽ(mN T[ؚ} >-D}v]ċ`&2[e)J|[Ac,Bc9f!^ f=ڽ95b\K^n=Y4m]M xkgr21߲Bu?HTY\*|X(AX$ >O (<&$#YZIN4zvU֛ 5D:IX-PjͤN('lOWdLL*@ǏgJJ#Vɱ?2[$Ud0k=aK|Ju?|r;ͩ6k9{-3XUw]j8ל<3l"m'+m}Wucf|ERfOR&gKAP]$/48lf QWDyK yK (http://www.hud.gov/. iL@L Normal1$5$7$8$9DH$@CJ_HmH sH tH X@X Heading 1$$ @d*$@&a$5@CJOJQJD@D Heading 2$@&`5W)<\FF Heading 3$ @&5CJ\mH sH DD Heading 4$01$@&^`0@BB Heading 5$@&5CJ\mH sH u<A@< Default Paragraph Font,+, Endnote Text6*@6 Endnote ReferenceH*.. Footnote Text8&@!8 Footnote ReferenceH*FF TOC 1) $ 0*$]^`0BB TOC 2% $ 0*$]^`0BB TOC 3% $ p0*$]^p`0BB TOC 4% $ @ 0*$]^@ `0BB TOC 5% $ 0*$]^`0:: TOC 6 $0*$^`022 TOC 70*$^`0:: TOC 8 $0*$^`0:: TOC 9 $ 0*$^`0F F Index 1% $ `*$]^``F F Index 2% $ 0*$]^`06.6 TOA Heading  $*$""" Caption2O2 _Equation Caption,@, Header ! !, @", Footer " !.U@1. Hyperlink >*B*phX$BX Envelope Address!$@ &+D/^@ aJ&)@Q& Page Number>V@a> FollowedHyperlink >*B* pher HTML PreformattedJ' 2( Px 4 #\'*.25@91$5$7$8$9DH$@CJOJPJQJ^JV^@V Normal (Web)#(dd1$5$7$8$9DH$[$\$@aJO t3741@C@ Body Text Indent *`6@R@ Body Text Indent 2 +`@S@ Body Text Indent 3 ,^JY@J Document Map--D M OJQJ^J  $*+,LMz{O>?YZ  % [ | ~     A [ / J K L m 00000000000000000000000000000000000000(0(000000000000000000000000000000000000000000@0@0@0@0@!0@!0@0@!0@!0@0@0@0@0@0@0@0@0@!0@0%@"0@"0@0% 00 %%%   L  ! !!Xt  ,2$|3yiH('0%K@ (  J  # A"0(  B S  ?% '4") * 3 m HUDJ:\ASSET MGMT\SERVICING TEAM\Mortgagee Letters\MLs.CY06\LA Road Home Program\Drafts_Notes\DI-5249 Daly's cmts LA ML_rev12052006.docHUDJ:\ASSET MGMT\SERVICING TEAM\Mortgagee Letters\MLs.CY06\LA Road Home Program\Drafts_Notes\DI-5249 Daly's cmts LA ML_rev12052006.docHUDvJ:\ASSET MGMT\SERVICING TEAM\Mortgagee Letters\MLs.CY06\LA Road Home Program\DI-5249 Daly's cmts LA ML_rev12052006.docHUDvJ:\ASSET MGMT\SERVICING TEAM\Mortgagee Letters\MLs.CY06\LA Road Home Program\DI-5249 Daly's cmts LA ML_rev12052006.docHUDvJ:\ASSET MGMT\SERVICING TEAM\Mortgagee Letters\MLs.CY06\LA Road Home Program\DI-5249 Daly's cmts LA ML_rev12052006.docHUDvJ:\ASSET MGMT\SERVICING TEAM\Mortgagee Letters\MLs.CY06\LA Road Home Program\DI-5249 Daly's cmts LA ML_rev12052006.docHUDvJ:\ASSET MGMT\SERVICING TEAM\Mortgagee Letters\MLs.CY06\LA Road Home Program\DI-5249 Daly's cmts LA ML_rev12052006.docHUDbJ:\ASSET MGMT\SERVICING TEAM\Mortgagee Letters\MLs.CY06\LA Road Home Program\LA ML_rev12052006.docHUD=J:\OPPAD\Housing Directives\Diane's Work\07-ML-7 Final ML.docHUD=J:\OPPAD\Housing Directives\Diane's Work\07-ML-7 Final ML.doc!43( f >@r & <* & +0 a][%\TY5&+ '6t8'Џ>Fj.$4$LNP4PaxQ2SzrhSj:fd$W >\*Pb\bRb6] ^^. b\<81NbfKJUeBlM^+mB#*@h h^h`56CJ. 808^8`0o(.^`.pLp^p`L.@ @ ^@ `.^`.L^`L.^`.^`.PLP^P`L.h ^`OJQJo(h@ @ ^@ `56OJQJo(h @ @ ^@ `OJQJo(h ^`OJQJo(h ^`OJQJo(oh ^`OJQJo(h ^`OJQJo(h PP^P`OJQJo(oh   ^ `OJQJo(h ^`56o(.h   ^ `OJQJo(oh   ^ `OJQJo(h xx^x`OJQJo(h HH^H`OJQJo(oh ^`OJQJo(h ^`OJQJo(h ^`OJQJo(oh ^`OJQJo(h^`.hpp^p`.h@ L@ ^@ `L.h^`.h^`.hL^`L.h^`.hPP^P`.h L ^ `L.h ^`OJQJo(h pp^p`OJQJo(oh @ @ ^@ `OJQJo(h ^`OJQJo(h ^`OJQJo(oh ^`OJQJo(h ^`OJQJo(h PP^P`OJQJo(oh   ^ `OJQJo(p   ^ `56o(.p^`.ppLp^p`L.p@ @ ^@ `.p^`.pL^`L.p^`.p^`.pPLP^P`L.  ^ `56OJQJo( pp^p`OJQJo(o @ @ ^@ `OJQJo( ^`OJQJo( ^`OJQJo(o ^`OJQJo( ^`OJQJo( PP^P`OJQJo(o   ^ `OJQJo(h ^`OJQJo(h pp^p`OJQJo(oh @ @ ^@ `OJQJo(h ^`OJQJo(h ^`OJQJo(oh ^`OJQJo(h ^`OJQJo(h PP^P`OJQJo(oh   ^ `OJQJo(808^8`0o(.^`.pLp^p`L.@ @ ^@ `.^`.L^`L.^`.^`.PLP^P`L. 88^8`o(.^`. L ^ `L.  ^ `.xx^x`.HLH^H`L.^`.^`.L^`L.88^8`o(.^`. L ^ `L.  ^ `.xx^x`.HLH^H`L.^`.^`.L^`L.  ^ `56OJQJo( pp^p`OJQJo(o @ @ ^@ `OJQJo( ^`OJQJo( ^`OJQJo(o ^`OJQJo( ^`OJQJo( PP^P`OJQJo(o   ^ `OJQJo(h ^`OJQJo(h pp^p`OJQJo(oh @ @ ^@ `OJQJo(h ^`OJQJo(h ^`OJQJo(oh ^`OJQJo(h ^`OJQJo(h PP^P`OJQJo(oh   ^ `OJQJo(h ^`OJQJo(h pp^p`OJQJo(oh @ @ ^@ `OJQJo(h ^`OJQJo(h ^`OJQJo(oh ^`OJQJo(h ^`OJQJo(h PP^P`OJQJo(oh   ^ `OJQJo(  ^ `56OJQJo( pp^p`OJQJo(o @ @ ^@ `OJQJo( ^`OJQJo( ^`OJQJo(o ^`OJQJo( ^`OJQJo( PP^P`OJQJo(o   ^ `OJQJo(808^8`0o(.^`.pLp^p`L.@ @ ^@ `.^`.L^`L.^`.^`.PLP^P`L.h^`.hpp^p`.h@ L@ ^@ `L.h^`.h^`.hL^`L.h^`.hPP^P`.h L ^ `L.@h h^h`56CJ. h   ^ `56o(.h  ^ `.hxLx^x`L.hHH^H`.h^`.hL^`L.h^`.h^`.hX LX ^X `L.h ^`OJQJo(h   ^ `OJQJo(oh   ^ `OJQJo(h xx^x`OJQJo(h HH^H`OJQJo(oh ^`OJQJo(h ^`OJQJo(h ^`OJQJo(oh ^`OJQJo(h ^`OJQJo( ^`OJQJo(o pp^p`OJQJo( @ @ ^@ `OJQJo( ^`OJQJo(o ^`OJQJo( ^`OJQJo( ^`OJQJo(o PP^P`OJQJo(h808^8`0o(.h^`.hpLp^p`L.h@ @ ^@ `.h^`.hL^`L.h^`.h^`.hPLP^P`L.  ^ `56OJQJo( pp^p`OJQJo(o @ @ ^@ `OJQJo( ^`OJQJo( ^`OJQJo(o ^`OJQJo( ^`OJQJo( PP^P`OJQJo(o   ^ `OJQJo(hpp^p`.h@ @ ^@ `.hL^`L.h^`.h^`.hL^`L.hPP^P`.h  ^ `.hL^`L.808^8`0o(.^`.pLp^p`L.@ @ ^@ `.^`.L^`L.^`.^`.PLP^P`L.h^`56OJQJo(.h pp^p`56o(.h@ L@ ^@ `L.h^`.h^`.hL^`L.h^`.hPP^P`.h L ^ `L.88^8`o(.^`. L ^ `L.  ^ `.xx^x`.HLH^H`L.^`.^`.L^`L.   ^ `56o(.^`.pLp^p`L.@ @ ^@ `.^`.L^`L.^`.^`.PLP^P`L.p0p^p`0o(.  ^ `. L ^ `L.xx^x`.HH^H`.L^`L.^`.^`.L^`L.808^8`0o(.^`.pLp^p`L.@ @ ^@ `.^`.L^`L.^`.^`.PLP^P`L.88^8`o(.^`. L ^ `L.  ^ `.xx^x`.HLH^H`L.^`.^`.L^`L."DBt8'b\S|CJUe( f 43>$L 'r 1Nbg?Fj.^^M^+mv9<BS+OFb6] >\xQP4Pa][% bPB @h h^h`OJQJo(B@h 8^8`OJQJo(!! )                                  fy        )                 l/$00/(///,!!! ! 2 & -2 ; 8000! !! 2   @Times New RomanFO 0- 2 S  -@Times New RomanFO 0- 2 X '@Times New RomanFO 0-:2 XASSISTANT SECRETARY FOR HOUSING)  $)*# #''##)'**&)** )* 2 ~- 2  52 IXFEDERAL HOUSING COMMISSIONER#*#'*")** **')44 **#' 2 I7 - 2 X ,'@"Arial@ FO 0- 2   ''-2 F www.hud.gov556(((%$$:2 FE  espanol.hud.gov ($($(((%$$- 2 1O  ,'&W+.  --  &WordMicrosoft Word Courier New FO 0- @Times New RomanFO 0-    2  -&--y7- - w7-  2 6w 0 2 6w 0-'--- - &j C ~(???ϟϟϟϟ'π7~ϟw~ϟs~fϿ>g?oy3?o?>|???9y?`>??Ϝ??π~>|}ϿgϿ??~8p8p8p 8p{8p?8p?8p8p?8p8p8p8p8p98pq8p|8p>?8p?8p?8p?8p8p8p8p8p8p8p8p8p8p8p8p}8p8p8p8p?8p8p8p8p8p8p8p?C8p8p8p8p8p8p8p8p8p8p8p8p8p8p8p8p?p?p?p>?8p?;p?=;p?=?;p=?;p?;p??;p;p?;;;?;x;{;{;{;{0;{;{{>?{{{|{<{<{<{{{{{{{?{{w{g{{{{{{{c{G{{3￿{{?{{￿{￿{?{?{{{{?{7{;{۾{{?|{{?{{{{?x{????c?<8?cg~??>8??x.xl?d__&--5- - 4-   2 44 0 2 44 0-'-  - - '&@Times New RomanFO 0-#2 XDecember 6, 2006G+++Q7++11111 2 ; 4+2 x MORTGAGEE LETTER 2006]MGBLGLBBBABAAG1111 2 x- 2 x2901 2 xP 94 2 X 95 2 aX 952 XTO:BM 2  9~ 2  9,2   2  .2 ALL APPROVED MORTGAGEESGBBG;;GMGBG]LGBLGLBB7 2   4 2 JX 52 X ATTENTION: GBABGA&MG  2  ;2  Single Family Servicing Managers771*;1Q17++1*61]1711++& 2 m  4 2 4X 5-2 XSUBJECT:7GB0BFB 2 1  2  ,42 Louisiana Road Home ProgramRB16%071G017M1Q+<+11+1Q- 2   - 2 X , 2 X ,2  UThe State of Louisiana has now finalized an action plan for use of Federal Community <1+6++1 :11&+1*1*&11G1+,+1+1+*101+1 1 1&+16+1+ +B0MM10.22 { XDevelopment Block Grant (CG+1+11M*1A1*1G +0 Be2 { <DBG) disaster funds to assist homeowners who suffered flood GAG 0&+%+  110&1+&&&11M*1G1+ &F11&1 + +1 011 2 { \ +2 Xcand/or wind damage to their residences from Hurricanes Katrina and/or Rita. This mortgagee letter +111 F111+M+0+10+  +&1+1+*& 1LG1 *+1+&G+ 1++111 A+<1&M10+0++++ k2 d X@provides guidance regarding grant program issues specific to FHA1 111*&011+1++ +0+ 1100 +11 10 +M&&1*&%1++ +16GG 2 d m - 2 d insured loans.0&1 +10+1& 2 d  + 2 X ,"2 N Under the stateG11+ 1+&*+M2 N , plan, eligible homeowners may receive a one1+0+01+10M+1G1+ %M,. ++,1++11+ 2 N - 52 N time grant payment, up to a M+0 +11,.M+1011+2 XXmaximum of $150,000, for home damages not covered by property insurance, FEMA grants or M*2L1M1 10110110 11M+1*M+0+&11+11* +12.1 11+ /1&1 +1++6<XG0 +1&1 2 7 X_other Federal, state or local government programs. In exchange for the grant payment, a qualif11+ 6+1+ +&+*1 1*+011+ 1M+11 10 +M&1+2+1+10+ 1 1+0 +11,.M+1+11+!2 7 ying .102 X\homeowner must agree to covenants and restrictions running with and encumbering the damaged 11M+1G1+ M1%+0 ++0+11+1+1&+11 *& *00& 11010G1+10+1+1L1+ 101+1*M+0+12 Xdproperty. Those covenants require flood insurance to be maintained if the property is located in a 1 11+ .<11&++11+1*1& +11 +1010&1 +1++11+M*1*1+1 1+1 01+ .&1+++11+d2 X;Special Flood Hazard Area under FEMA Flood Maps, rebuilding 71+++6110G+,+1G *+111+ 6<XG6111X*1& +10110;2 >  and repairs in accordance with +11 +1* &1+++1 1+1++F12 XTapplicable housing codes and ordinances, building elevation in accordance with FEMA +11++0+101&10+11+&+111 11+1++&11010++1+111+++1 1+1++F16<XGt2 ~XFrecommended flood elevations, and homeowner occupancy for three years. ++1MM+11+0 101++1*10&+0110M+1G1+ 1+*11+1,. 1 1 ++/++ & 2 ~  - 2 X ,q2 hDExisting lienholders must subordinate their liens to the state requi<1%10+1101+ &M0&&111 01++1++1&11+&+* +11,2 hq red covenants for the +0+11+1+0& 1 1+2 X_homeowner to be eligible for the Grant award. However, the declaration of covenants generally 11M+1G1+ 11++00+ 1 1+G +0+G+ 1G0G+1+ 1+1+*+ +111 +11+1+1%0+1+ +.2 QX`provides that the covenants shall not be enforced against the mortgagee, FHA, or any subsequent 1 111*&1+1++11+1+0&&1+011++1 1 ++1+0+1&1+M10+0++6GH1 +2.&11&+11+0L2 X+purchaser except to the extent that the sube11 +1+&+ *2++101+*1+11+1+&10L2 +sequent purchaser breaches the covenants. e&+11+101 +1+&+ 1 +++1+&1++10+1+1& 2 K + 2 :X ,-12 Subordination RequirementC7671*771 17G+67+*Q+7 2  6- 2 $X ,2 ZGiven the enforcement exceptions just noted, HUD has no objection to the subordination of G1+11++1 1 ++M+0*1++110&1&10+1GGF1+&1111+*0101*&011 11*011 2 XFHAg6GG 2 - 2 <Zinsured first mortgage liens to the covenants required by the state as a condition for gra1&1 +1 &M10+0++1&11++11+1+0&+11 +11.1+&+++&+*11101 1 0 +2 jnt g1)2 Xawards, and covenant+G+ 1&+11+01+1+1 2 - 2 Mencumbered title that is otherwise good and marketable will be acceptable to +1*1M1+ +1+1+&11+G&+0111+01M+ 1*+1*G1+++++1*1+1"2 XHUD upon claim.GGG1110++M 2  + 2 kX , 2 X , 2 TX , 2 X , 2 >X , 2 X , 2 'X ,-                    ՜.+,D՜.+,p px  7HUD~ " =Assistant Secretary for Housing-Federal Housing Commisioners Subordination Requirement Title Headings 8@ _PID_HLINKSA`d6http://www.hud.gov/  !"#$%&'()*+,-./0123456789:;<=>?@ABCDEFGHIJKLMNOPQRSTUVWXZ[\]^_`abcdefghijklmnopqrstuvwxyz{|~Root Entry F@JSData 1TablekrWordDocumentW,SummaryInformation(YGDocumentSummaryInformation8}CompObjjObjectPool@JS@JS  FMicrosoft Word Document MSWordDocWord.Document.89q