The U.S. Department of Housing and Urban Development (HUD) reached an agreement with the state of Louisiana to release homeowners from repayment obligations under the Road Home Program.

The Road Home Program was put in place to help residents rebuild and improve homes affected by Hurricanes Katrina and Rita. Through the program, 130,000 residents received more than $9 billion as an incentive for single-family homeowners to remain in the community and rebuild. Nearly 13,400 homes were elevated to reduce risks from future storms, over 8,500 families were able to move to safer homes within the states, and over 39,000 households received funds to install mitigation measures in their homes.

However, some homeowners found the total cost of recovering their homes significantly exceeded the amount received from the program. Because of this, some homeowners used the funds for other types of post-hurricane repairs, a use found noncompliant through a 2010 HUD Inspector General report.

This finding led to Louisiana attempting to recover funds from homeowners who had already used them to repair their homes. At the time this settlement was reached, 700 homeowners had court judgments against them with 231 of them in active judgment payment plans, and 2,365 homeowners were in active litigation about their debts. The average debt owed was $46,000.

“For more than 17 years, many Louisianans have not had the freedom to fully move on from the pain and trauma of Hurricanes Katrina and Rita – that changes today,” HUD Secretary Marcia Fudge said at the settlement’s announcement in New Orleans. “I have made it a priority to clear the cloud of debt that has impacted too many families and individuals. This action is about providing peace of mind and freedom. Louisianans have shown their resiliency and strength time and time again over the past years, and now they will feel the relief from this burden.”