On July 6, 2011, a settlement was announced in the post-Hurricane Katrina housing discrimination lawsuit brought against the U.S. Department of Housing and Urban Development (HUD) and the State of Louisiana regarding the “Road Home” program.

By virtue of the settlement agreement, HUD and the State of Louisiana have agreed to amend the Road Home program to offer additional large supplemental rebuilding grants at an estimated value of over $60 million to several thousand homeowners whose initial Road Home Option 1 grant awards were based on the pre-storm market value of their homes and who have been unable to rebuild their homes.

In addition, the settlement agreement will provide thousands of homeowners additional time to rebuild their homes without the fear of penalty or foreclosure by the State of Louisiana.  Under the agreement, Road Home Option 1 homeowners whose grant awards were based upon pre-storm market value can receive a one-year extension of the re-occupancy covenants attached to their Road Home grants.