By Brenda Flanagan
Correspondent
In neighborhoods chewed up by Sandy, rebuilding continues — and many homes still need to be repaired or raised above the flood stage — using federal aid disbursed by FEMA and HUD. So, imagine flood victims’ shock when officials send them letters demanding payback. In Ted Friedli’s case — $26,000.
When asked if he has $26,000 hanging around, he said, “No. It’s hanging in the house that we’re still waiting to finish. That’s all been spent and they know it’s been spent.”
Ted says federal inspectors went over his house, saw all the repairs, receipts and credit card statements. He says they issued a loan, and a grant from HUD, through New Jersey’s Department of Community Affairs.
“They say that they overestimated and they’re asking for their money back — and I got back to them in the form of three emails asking for an explanation and the only response I got was, ‘We suggest you pay,'” he said.
FEMA says it’s asking 560 New Jersey and New York households to pay back a combined $4.9 million in Sandy-related disaster relief. FEMA’s already recovered $435,000 and in a statement explained its recouping the money because, “Unfortunately, whether through fraud, human or accounting errors, or for other reasons, assistance sometimes goes to individuals who are not eligible for it during the response to any disaster, and FEMA and other federal agencies are required by law to recoup improper payments.”
But Congressman Frank Pallone says people can appeal to FEMA.
“You can make the case that the money you received to fix your house, you fixed the house, you don’t have the money left and you don’t have the income to be able to pay it back,” Pallone said.
In Ted’s case — he’s one of 51 homeowners the state DCA says it asked to repay a combined $940,000. A spokesman explained they comb through grants and loans and “…If it’s determined that (RREM) funds already disbursed exceed the recalculated grant award, we take action to recover the funds.” That means, because Ted got a federal loan after Sandy he can’t keep the grant money. He still owes the loan.
“When we took out the loan, we were never informed that that later on would work against us,” he said.
Ted can appeal, although he says state staffers overseeing these programs don’t really understand them.
“You talk to five different people, you get five different answers,” he said.
We called the state housing advisor’s help line and the call ended.
The Friedlis talked to a lawyer who advised them — don’t pay it back yet. He says wait and see whether officials might forgive some of this payback amount — in effect, pay it forward.