FEMA wants Atlanta residents to pay back Katrina moneySubmitted by Suzanimal on Sat, 05/04/2013 - 12:30
"Thousands of people given assistance after Hurricane Katrina are now finding out that the federal government is taking some of that money back.
Rae Stampley is one of the people who survived Hurricane Katrina in 2005, but now owes money.
“We lost everything in the house. We got about 3 feet of water,” Stampley told Channel 2’s Wendy Corona.
Money from the Federal Emergency Management Agency helped him start over in Atlanta.
“They gave everyone $2,000 who applied and qualified,” he said.
Stampley received $4,400 more through an appeal.
A letter dated February 2013 was his first sign that the government wanted its money back.
“Never in a million years did I think that they’d come back after me because I knew that I was doing everything by the book,” he said.
Stampley said his tax return of about $5,000 was withheld to pay his debt. According to the FEMA website, it can even be taken back with interest."