FEMA wants there money back
 

We had a flood here in 2008. Cedar Rapids Iowa.(and many other parts of the Midwest) FEMA sent people here after it was declared a disaster area. The government people inspected your house and determined what help they would give you. That money was for replacement value of personal property.

The city had a buy out program for some areas and when you sold out you payed FEMA back. Thats what we did and I`m OK with that. Our house was beyond repair. Now FEMA is sending people that repaired there house with the moneys they received saying they want there money back.

Some people will have to repay over twenty to thirty thousand back. I just want all to know what a screwed up system we have. If this happens there are going to be a lot of people going under. I would expect FEMA will take your house if you do not pay them. Most people in the area affected live from pay check to pay check. Just when you start to get things back to normal the good old government sticks it to you. What are they thinking, GEEEEEZ

OH i forgot, the city will receive millions from FEMA for a remodel of the convention center and has received millions to demolish an old abandon meat packing plant. Plus other millions on other stuff. Will they have to repay that.

Midwesterners are suppose to be self reliant, unlike other parts of the country which has received FEMA assistance.

Best of luck to you and your neighbors.

Speedy:)

it sounds like the $$ was for relocation?? and people used it instead for remodeling?

hard to figure out what happened from you post - can you explain a bit more?

During the Northridge Earthquake, FEMA did a combination of grants/loans. They gave money to people, I got like $2,500 loaned on immediate home repairs. The $2,500 I had to repay when I sold the house (no free money). I also got a longer-term SBA loan of (IIRC) $25,000 which I had to repay also when I sold the house. It sounds like they're asking for the money back without a sale of the home.

As I understand the moneys where for lost personal property as a grant. We where told the money did not have to be payed back. There was other grants for rebuilding and did not have to be payed back if you rebuilt and lived in your house for ten years.
Other loans (SBA and others) where almost impossible to get at the time. With a mortgage already banks would not even talk to folks. Unless you missed a payment or two then foreclose theats started going to folks..

I am going to try to find the paper work and read it again. It was so distressful at the time I seen people take a thousand dollars for there property to the scalpers and just walk away. So what was told to people and what was reality could have been crossed up.

My FEMA money from the Northridge quake was a loan. The interest rate was way below market, but it was a loan, nevertheless.

My impression was that its purpose was to supplement insurance, and I had earthquake insurance.

At the risk of coming off as a cold-hearted mean guy (can't help that), excuse the heck out of me if my tax money doesn't go far enough to pay for other people's stuff.
I haven't had time to complain that the gubmint isn't GIVING me enough, I've been too busy earning money and giving it to the gubmint so they can give it to other people so they can beotch because it's all dirty and green.
Does the concept of personal responsibility and BUYING INSURANCE ever come up any more?
Saving money for a rainy day?

it's not the gubmint's responsibility to rebuild people's houses. It's not the gubmint's job to give people money for their houses. It's not the gubmint's job to take care of people who build a house in a common flood plain and don't have flood insurance.


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I read an article yesterday on this. Apparently FEMA accidently gave money to individuals as a grant (don't have to repay) who also had flood insurance. Made it sound like they never should have been approved in the first place, had "double dipped" and were now upset that they had to repay the money on short notice (30 days?).

true, unless the govt. built dams or levees that failed

but let's not scare the OP away before we find out what's really up with this...

Screwed up system? Yes, that's the nature of bureaucracy (and not just government bureaucracy). It's a constant battle. But I don't think the government is "sticking it" to anyone by wanting taxpayer's money back. The government has a legitimate role in helping people contend with acts of God, but handing out checks for $20-$30k and not expecting it to be returned is just wealth redistribution.

Sorry Two Rivers but it wasnt a grant. It was a loan. You and your neighbors have it mixed up. FEMA through the National Flood Insurance Progarm offers flood insurance. If you choose not to purchase coverage FEMA will offer you a low interest rate loan.

It's time to pay back the loan.

My parents were affected by the tornado in St. Louis a few weeks ago. I checked the FEMA site yesterday as the area was officially declared a fed disaster zone. Every option available was listed as a loan.