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By JOHN MORENO GONZALES
Associated Press Writer
NEW ORLEANS (AP) -- 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.
Thousands of Katrina victims may be in the same boat.
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.
Originally posted by funky monk
Well you kinda cant go give someone money and then months/years (sorry Im not too sure how long its been) later you go and ask for it all back. I dont know how much they would get bak any how lol.
One-third of qualified applicants for Road Home help had yet to receive any rebuilding check as of this past week. The program, which has come to symbolize the lurching Katrina recovery effort, is financed by $11 billion in federal funds.
Originally posted by NewWorldOver
Oooo this gonna get people so riled up.
There was a LOT of complaining that people who got the money-relief were spending it on food and cigarettes etc. (which is true...)
Now they're saying they gave them too much money and they want it back? That money is Loooong gone.