FEMA Demands Millions Back From Texans
This article is from the archive of The New York Sun before the launch of its new website in 2022. The Sun has neither altered nor updated such articles but will seek to correct any errors, mis-categorizations or other problems introduced during transfer.
BEAUMONT, Texas – The federal government is asking 625 people in Texas to pay back a total of $1.26 million in recovery aid they shouldn’t have received after Hurricane Rita.
Texas families received more than $592 million from the Federal Emergency Management Agency after the September storm.
Most of the money FEMA wants – $1.14 million – was incorrectly paid for damage to homes that were not the owners’ primary residences, an agency spokeswoman, Hannah Vick, said. Damages to secondary residences are ineligible for FEMA money.
In other cases, the same person received multiple $2,000 FEMA payments, or multiple people from the same household received the $2,000.
The agency began the process called recoupment, which is similar to an audit, in mid-March. A similar process is ongoing for payments made after Hurricanes Katrina and Wilma.
People who receive a letter requesting repayment have 30 days to submit the amount in full or set up a payment plan. After 30 days, 2% interest begins accruing. Residents can appeal FEMA’s decision.
Typically, 2% to 3% of FEMA funds paid after a disaster are made improperly, FEMA officials have said.
