Flood Update

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During the recent historic flood event, thousands of homes across south Louisiana were inundated with floodwater. For most homeowners, the recovery process has just begun. Information on possible funding, temporary housing, or other assistance is available from FEMA and other organizations. But if you own a flood-impacted home, you face another significant and perhaps more long-term question: What can you do now to protect the value—including the resale value—of your home? The following are a few points to consider and suggestions.

Disclosure of Flood–Related Issues
Louisiana law requires a seller of residential property to complete and provide to the prospective purchaser a property disclosure form prescribed by the Louisiana Real Estate Commission (LREC).1 The LREC property disclosure form 2 includes the following questions, among many others, that must be answered by the seller:

  • “Has any flooding, water intrusion, accumulation, or drainage problem been experienced with respect to land? If yes, indicate the nature and frequency of the defect at the end of this section.”
  • “What is/are the flood zone classification(s) of the property?”
  • “Has any structure on the property ever taken water by flooding (rising water or otherwise)? If yes, give the nature and frequency of the defect at the end of this section.”
  • “Has there been property damage related to the land or the improvements thereon, including, but not limited to, fire, windstorm, flood, hail, lightning, or other property damage? If yes, were all related property damages, defects, and/or conditions repaired?”
  • “Does the property or any of its structures contain any of the following? Check all that apply and provide the nature and frequency at the end of this section. . . . mold/mildew. . .toxic mold. . .contaminated drywall/Sheetrock.”
  • “Were any additions or alterations made to the property? If yes, were the necessary permits and inspections obtained for all additions or alterations?”

So not only should the seller disclose flood-related issues to the buyer as a matter of good faith, the seller is required to do so by law.

1 (La. R.S. 9:3198.)
2 The LREC property disclosure form is available here. An amended version of the form will become effective on January 1, 2017; however, the amended form does not change the disclosures discussed in this article.

Note also that Louisiana law requires licensed home inspectors to describe in their inspection reports the presence of suspected mold growth if visual evidence of mold is discovered inside the home.3 A mold inspection is outside the scope of a standard home inspection; however, if the home inspector observes mold, he must say so in the inspection report.4

Past flood damage and current mold issues have the potential to negatively impact the value of your home. So what should you do?

Protecting the Value of Your Flood-Impacted Home
A key factor in protecting the value of your home will be how well you can demonstrate to prospective purchasers, appraisers, inspectors, lenders, insurers, and others that the flood-related damage was properly repaired or otherwise addressed. What you do now will impact the future value of your home. The following are a few suggested strategies:
Continue Reading After the Flood—Strategies for Protecting the Value of Your Home

This article was published in the Louisiana Employment Law Letter a month after Hurricane Katrina. In the wake of the recent catastrophic flooding in Louisiana, we believe its advice is as cogent as ever.

A crisis in the workplace, whether the result of a natural disaster, terrorism, workplace violence, or other conflicts, can bring your business to a screeching halt and devastate the lives of the employees who are essential to your business’ existence. It’s only natural for business owners and managers to think immediately of the economic loss such a disaster can cause, particularly because the loss of a business usually translates into the loss of a livelihood for owners, managers, and employees. Your plan for responding to and recovering from a crisis must take into account the effect it will have on your workers and the ways you can help them become productive again, even in the face of personal loss.

Follow these guidelines to help your employees cope with the catastrophe and return to productive employment:

  • Communicate with employees as soon as possible after a disaster. When disaster strikes, your employees may suffer the loss of their personal possessions, homes, friends, and family. Even a temporary inability to return to work can compound any sense of loss or emotional trauma your employees may experience. Locate and contact your employees immediately after a disaster, and tell them the company’s status and plans. If employees know what’s expected of them and what they can expect from the company, they can take the company’s plans for them into consideration when rebuilding their personal lives. For example, if a leave of absence, relocation, or layoff is inevitable, employees should be told as soon as possible so they can plan accordingly. Don’t leave them in the dark about their employment.

Continue Reading Crisis Management: Weathering the Storm