Right to Return

Here are the most frequently asked questions (as of September 4, 2007) concerning displacement from multifamily properties as a result of Hurricane Katrina.

Opportunity to Return

What does "Opportunity to Return" mean and who does it apply to?

All households displaced from a HUD insured and/or assisted multifamily property as a result of a Presidentially Declared Disaster (PDD) must be provided the opportunity to return to the unit they occupied at the time of the PDD once the unit is repaired, restored or otherwise becomes available for re-occupancy.

Many displaced residents are currently living in other project based Section 8 complexes. What affect does this have on their opportunity to return?

Property owners are required to inform all displaced households in writing at least 90-days prior to the expected date the unit will be ready for re-occupancy that they have the opportunity to return. If the displaced resident is residing in a project based Section 8 unit and not receiving Section 8 assistance, the resident should notify the owner/management at his/her current residence of their intent to return to their pre-Katrina residence. HUD encouraged owners/agents to enter into short term leases for disaster displaced residents that were in need of temporary housing and most HUD approved leases provide for a 30-day notice of termination (outside of the initial 12-month period for subsidized properties). If the resident is receiving subsidy, he/she should notify the owner/agent (at his/her current residence) of his/her intent to return to his/her pre-Katrina residence. HUD would encourage owner/agents to be flexible with a disaster displaced resident that choose to return to his/her pre-Katrina residence.

If a displaced resident is offered project-based or tenant based Section 8 assistance in their current location, what should they do?

Residents should discuss this issue with industry partners familiar with the various types of housing and assistance, such as Legal Services and/or Housing Counselors, etc.

If a displaced resident accepts project-based or tenant based Section 8 assistance in their current location, is their pre-Katrina landlord still obligated to offer them priority status for re-occupancy?

If a resident accepts permanent housing, they lose their priority/preference opportunity to return to the unit they occupied at the time of the disaster. However, they may at any time apply (or be placed on a waiting list) to live at any property provided they meet the eligibility and screening criteria.

Does the opportunity to return priority for displaced residents apply to any property with project or tenant based rental assistance rebuilt in greater New Orleans, or only the property the resident previously lived in?

A displaced person's opportunity to return priority applies to the unit they occupied pre-Katrina with some exceptions. These exceptions would include cases where the property has been destroyed or condemned and the assistance was moved to another property or cases where the family composition has changed since being displaced. Adjustments to unit size could also be made based on the resident being over or under housed at the time of the disaster.

Opportunity to Return Notification

How will displaced residents find out the status of the property they lived in pre-Katrina?

Displaced residents were to maintain contact with the owner/agent and provide up to date contact information. If a resident has failed to provide the owner/agent with contact information, the owner/agent may request assistance from HUD to search in several project based assistance databases for a displaced resident's current whereabouts. The owner/agent is required to mail an "Opportunity to Return" notice to the head of households' last known address. The notice shall be mailed certified and regular mail.

The resident should contact the owner/agent and inquire about the status of the property. The resident should provide in writing his/her current mailing address and phone number.

Who will receive this notification from the pre-Katrina landlord? How will these residents be located?

The owner/agent should be communicating with and/or have contact information on the head of household. If the resident (head of household) has failed to provide the owner/agent with contact information, the owner/agent may request assistance from HUD for search of project based assistance databases. The owner/agent is required to mail an "Opportunity to Return" notice to the head of households' last known address. The notice shall be mailed certified and regular mail.

If a displaced resident has not heard from their pre-Katrina landlord what should they do?

The resident should contact the owner/agent and inquire about the status of the restoration of the property. The resident should contact the owner/agent and inquire about the status of the property. The resident should provide in writing his/her current mailing address and phone number.

If a damaged property is foreclosed on and will not be rehabilitated, how will the displaced residents be notified and what assistance will they be offered?

HUD is required by statue to provide notice to and an opportunity for comment by tenants on the proposed disposition plans of a property where a foreclosure action is being pursued. However, the apartment complex may be vacant at the time of sale, due to hurricane damage not being repaired. Due to the number of families that had to evacuate their apartment unit as a result of Hurricanes Katrina and Rita, the Department has decided to notify the former residents, if contact information is available, of the proposed requirements for the future operation of the property and any assistance/options that may be offered to them in connection with the future foreclosure sale.

The New Orleans HUD Office will request rent rolls, including last known mailing addresses and contact listings, from the owner/agent of all properties where the residents were evacuated as a result of Hurricanes Katrina or Rita. The owner/agents will be requested to notify the New Orleans HUD Office of any changes prior to the foreclosure sale. Any information provided by the owner/agent will be included as a part of the foreclosure package submitted to the Fort Worth Multifamily Property Disposition Center. Notification letters will be mailed by the Fort Worth Multifamily PD Center to the households where the above information has been provided, as a part of the foreclosure process. Letters will be sent to the contact address or last known address of the former tenant if no contact information is provided. An updated list will be obtained from the New Orleans HUD office to be provided to the purchaser at the closing of the sale.

Accepting the Opportunity to Return Invitation

How long will displaced residents have to decide whether they would like to return?

Displaced residents have 45-days to respond to the notice that a unit is available for re-occupancy.

Should a displaced resident reply in writing, or by phone?

Displaced residents should reply in writing stating their intention to return or not return to the pre-Katrina unit. However, the resident may contact the owner/agent directly (via phone) to ask questions concerning returning to the property.

Will displaced residents currently receiving rental assistance (project based or tenant based) be penalized if they break their lease in order to return to their pre-Katrina residence?

Displaced residents should review the terms of their lease to determine if any provisions are available for lease termination at the tenant's request.

Can displaced residents be guaranteed their former apartment?

An owner may offer available comparable units to a displaced resident if the unit that the resident occupied before the PDD cannot be repaired or if the needed repairs require a long period of time to complete. If a returning resident accepts an alternate unit, the resident is considered re-housed and not eligible for additional unit transfer except in accordance with HUD Handbook 4350.3. However, if the resident (of a project based Section 8 unit) was over-or-under-housed prior to the PDD, an appropriate size must be offered as a replacement, if available. If a household has increased since the PDD to the extent that they are now larger than the receiving unit can accommodate or there are no larger units available in the property, the owner should still accommodate the household as long as it does not create a health and safety problem.

Once a displaced resident is notified that their pre-Katrina apartment complex is being repaired, how long should it take before they can move back in?

Owners are required to notify a displaced resident at least 90-days (in writing) prior to the expected date the unit will be ready for re-occupancy. This is an estimated date, the resident and the owner should maintain communication to confirm the exact date that the unit will be ready for re-occupancy. Residents that notify the owner of their intent to return must be given a minimum of 60-days to re-occupy the unit. This 60 day time period begins on the date the unit is ready for re-occupancy, not from the owner's notice.

Who will pay for moving expenses?

The Department does not have funding available to assist with relocation expenses. Disaster displaced residents may contact FEMA to determine if the individual transportation cost to return to the city of origin is eligible for re-imbursement or funding. In addition, displaced residents should contact local (New Orleans) housing advocates to determine if any other type of funding is available to assist with moving expenses.

Will rents be higher than they were before Katrina?

It is possible that the rent levels may have increased since the disaster. HUD may have approved an increase in the rental rates for subsidized properties. However, if a resident is in a subsidized unit, they most likely will only pay 30% of their adjusted gross income for rent (less utility allowance, if applicable). In this scenario, the rate of the contract/basic rent does not impact the portion of rent paid by the resident.

What if a resident reoccupying a repaired unit does not qualify for assistance when they are recertified?

If a displaced resident's income has increased above the income limit for the property (if subsidized), then the amount of subsidy will be reduced. It is the choice of the resident to remain in the unit and pay market/contract rent.

If a family has added members, or lost members, since Katrina, will that affect the apartment size they are eligible for?

Yes, owners/agents are required to place families in the appropriate size unit based on occupancy standards. However, please note re-occupancy is only for household members not extended family (members). The owner/agent is not expected to accommodate an extended family.

Declining the Opportunity to Return Notification

If a displaced tenant fails to respond to opportunity to return notifications, or declines the invitation, do they lose all priority status under HUD's opportunity to return guidance?

Yes, if a resident does not respond or provides a negative response to their notification of re-occupancy, then the resident will forfeit the opportunity to return to the unit that was occupied prior to the PDD.