Home folders created in powershell won't work: Access Denied - windows

Question

I'm having some trouble creating home folders with powershell, I create the folder
New-Item -Path "C:\Homes\" -name $username -ItemType Directory
Then I copy the ACL and disable the inheritance and add the new permissions
$Rights = [System.Security.AccessControl.FileSystemRights]"FullControl"
$Inheritance = [System.Security.AccessControl.InheritanceFlags]::"ContainerInherit", "ObjectInherit"
$Propagation = [System.Security.AccessControl.PropagationFlags]::None
$AC =[System.Security.AccessControl.AccessControlType]::Allow
$NewACL = New-Object System.Security.AccessControl.FileSystemAccessRule ($username, $Rights, $Inheritance, $Propagation, $AC)
$ACL = Get-Acl -Path "C:\Homes\$username"
$ACL.SetAccessRuleProtection($True, $False)
$ACL.SetAccessRule($NewACL)
$NewACL = New-Object System.Security.AccessControl.FileSystemAccessRule ("SYSTEM", $Rights, $Inheritance, $Propagation, $AC)
$ACL.SetAccessRule($NewACL)
$NewACL = New-Object System.Security.AccessControl.FileSystemAccessRule ("Administrators", $Rights, $Inheritance, $Propagation, $AC)
$ACL.SetAccessRule($NewACL)
Set-Acl -Path "C:\Homes\$username" -AclObject $ACL
Finally I mount the folders as H: and set it as home dir
Set-ADUser -Identity $username -Replace #{HomeDirectory=$homeDir}
Set-ADUser -Identity $username -Replace #{HomeDrive=$homeDrive}
When I login to a user and try to add a file/folder I recieve permission denied.
The Root Folder (C:\Homes) is shared and has configured permissions

Answer 1

#Louis J. Are you sure permissions have been set properly? I mean you should try to get ACL of the created folder using command like :
(Get-Acl H:...).Access
Then check user's rights over this directory.
By the way, do you execute your script with elevated rights?