Louisiana, ICF Issue Road Home Performance Measures
Six measures set homeowner and small-rental mandates for ICF
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. For the first time, performance measures include the Small Rental
Property Program (SRPP) in addition to the Road Home program.
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.
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.
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
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 measure is $250,000.
ICF must 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.
For small rental properties, the SRPP had mailed a total of 798 commitment letters to owners (as of
March 24, 2008), representing $64,642,399 for 1,495 rental units, including 1,317 affordable-housing
units, and the program has just begun a second round of mailings to 4,000 other property owners.
Each month in the second quarter, ICF must submit 500 loan summaries - 1500 per quarter - to the
state for approval, dependent upon a large enough pool of applicants ready for commitment letters. 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 goal will be assessed monthly.
Because the SRPP can not issue loan commitments or final awards to properties without first
reviewing titles, ICF must review and clear titles in a timely manner. For 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 penalty of $250. The maximum penalty of
the performance measure is $100,000 total for the quarter, assessed monthly against ICF.
Last month, Governor Bobby Jindal and Louisiana Recovery Authority (LRA) Executive Director Paul
Rainwater called for an investigation by Louisiana's Inspector General into the contract of ICF, which
has received a $156 million raise in December.
Rainwater had previously called for an investigation by the Legislative Auditor into ICF's contract. In a
March 17 LRA statement, Rainwater said "It's troubling that ICF was given a pay raise in spite of their
poor performance history and that it was done through a process that seemingly excluded the
notification of the state legislature or the general public."
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