Katrina victims may have to repay moneySubmitted by lastmovement on Sun, 03/30/2008 - 23:10
NEW ORLEANS - Imagine that your home was reduced to mold-covered wood framing by Hurricane Katrina. Desperate for money to rebuild, you engage in a frustrating bureaucratic process, and after months of living in a government provided-trailer that gives off formaldehyde fumes you finally win a federal grant.
Then a collector announces that you have to pay back thousands of dollars.
For thousands of Katrina victims, this may be a reality.
A private contractor under investigation for the compensation it received to run the Road Home grant program for Katrina victims says that in the rush to deliver aid to homeowners in need some people got too much. Now it wants to hire a separate company to collect millions in grant overpayments.