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Regardless of the disaster recovery grant program, homeowner applicant appeals are inevitable. There will be homeowners who have legitimate appeal requests, and those that know their appeal won’t go through but expend the effort regardless.

Through years of experience and thousands of applications processed, IBTS has developed a deep understanding of the nuances and best practices regarding the homeowner application appeals process. Below, IBTS’s Economic Development and Disaster Recovery (EDDR) experts provide experiences gained from managing homeowner applicant appeals for HUD’s Community Development Block Grant Disaster Recovery (CDBG-DR) program across the country.

“When it comes to applicant appeals, there isn’t just one big answer because there are so many different programs with so many different areas,” says IBTS EDDR Coordinator Erica Bueno. “Appeals are part of the process, you can’t avoid them completely, but case managers can take a number of measures on the front-end to prevent an appeal from happening in the first place.”

Experience Gained #1: Set Clear Expectations about the Disaster Assistance Program

Homeowners can have unrealistic expectations about HUD’s Community Development Block Grant Disaster Recovery (CDBG-DR) program – they may think it’s a remodeling project or a chance to finally get their dream kitchen. Yet the core goal of the CDBG-DR program, which is administered after FEMA funding has been distributed, is to give displaced residents a decent, safe and sanitary place to live.

“The program isn’t intended to bring applicants luxury,” says IBTS EDDR Team Leader Ian Diem. “We’re not here to remodel your home, we’re here to give you a home that’s not going to flood again in two years.”

It’s important that homeowners understand the parameters of the program from the outset. Unrealistic expectations about the disaster assistance program are often the root cause of applicant appeals. There are two main types of appeals that occur after applicants have been approved for the program:

• Scope of work appeals – a homeowner requests to have repairs or improvements made that are beyond the scope of work outlined in the program guidelines. Note that CDBG-DR will only provide assistance for damages caused by the storm.
• Construction material appeals – an applicant requests to use materials not included on CDBG-DR’s list of approved construction materials – such as countertop, tile, paint color and roof cover – that can be used in the program. Applicants have the opportunity to sign-off on their preferred approved materials during the materials selection process.

Bueno, for example, recalls a scope of work appeal from an applicant who requested to have all windows on his home replaced, when only five of them were damaged in the storm. In a different situation, Diem recalls a homeowner attempting to request an appeal for a stucco roof, which isn’t on the list of approved construction materials.

“The program isn’t intended to give you a stucco roof,” Diem notes. “It’s intended to give you a roof over your head.”

Likewise, it’s important that homeowners have a clear understanding of their role in the process. Homeowners should be prepared to provide their case manager with the required documentation, such home ownership information, proof of income and power of attorney, in a timely manner. It’s also a good idea to encourage applicants to contact their case manager bi-weekly for an update on the status of their application.

Whenever possible, homeowner applicants should be assigned a single case manager who works with them through the entirety of the CDBG-DR grant process. Building a relationship with applicants is important; they should feel comfortable calling you with their questions and concerns, and also trust that you are helping them maximize the benefits they can receive under the program.

Experiences Gained #2: Whenever Possible, Keep Appeals In-House

More often than not, these types of appeals can – and should – be handled by case managers in-house to prevent delays in the program. Homeowners often don’t realize that submitting an appeal delays construction on their home, sometimes by months, and sends them to the back of the CDBG-DR processing line.

Regardless of the appeal, Bueno and Diem stress the importance of giving homeowners a reason as to why their appeal will not be successful. “Make sure to give them a specific answer as to why their appeal won’t be approved,” says Bueno. “Even if it’s just copy-and-pasted from a rulebook, give them a reason. Sometimes rules are rules, and there’s no getting around it.”

It can also help to explain to homeowner applicants that case managers are legally obligated to give them everything they are eligible for under the CDBG-DR program. “We are doing everything we legally can to help,” says Diem. “I tell homeowner applicants that I have to give them everything that HUD allows them, or else we get in trouble with HUD.”

And keeping appeals in-house benefits case managers, too. Generally, case managers don’t get paid until the job is closed out. Preventing appeals from going to HUD or the state keeps the process moving quickly to prevent delays in payment for case managers, and also for construction contractors. Likewise, handling appeals in-house alleviates the burden on HUD, the state or agency administering the program.

Experiences Gained #3: Establish Rules and Regulations for Appeals Processing

If not properly managed, the appeals process can become time-consuming and costly for the agency administering the grant. To help establish uniform appeals processes, Bueno recommends implementing an appeal form. “These work great because they allow homeowners to put their complaints in their own words,” she says.

Make sure to customize the form to meet the specific needs and requirements of each disaster assistance program. Once the form is developed, set parameters for how the forms will be processed, in addition to time limits for submitting appeal forms.

For any internal rule or regulation your agency establishes regarding the appeals process, make sure it is applied universally to all applications in an effort to avoid controversy and backlash from homeowner applicants.

As a preventative measure, Bueno also suggests enforcing a requirement that homeowner applicants sign all required documentation at the pre-construction meeting. This gives homeowner applicants the opportunity to ask clarification questions and allows case managers to ensure homeowner applicants have a firm understanding of everything they are singing, eliminating confusion and requests for appeals later on in the process.

Bueno explains that homeowner applicants often unaware of everything they’ve signed off on, and are surprised after the pre-construction meeting to find they approved things they didn’t intend to. “When the contractor shows up, a lot of people come back and say, ‘I didn’t want that tile or that paint color, I didn’t approve that’ – but they did,” she adds.

If this does happen, show homeowners the scope of work and material selections they agreed, and signed on to. Make sure to keep organized files so this documentation is readily available if needed.

Although the appeals process can be daunting, mitigating the problem before it escalates to a full-blown appeal can reduce the burden on all stakeholders involved in the grant program. Case managers should take preventative measures throughout the entire grant administration process, and make every effort to keep appeals in-house.