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FEMA Seeks Repayment Of Grant Money From Sandy Victims


Authorities say more than 500 New York victims of Superstorm Sandy owe $3.4 million in disaster grant money back to federal officials.

The Federal Emergency Management Agency is seeking to collect $14 million in grant money extended to 2,000 New York Sandy victims that the federal agency believes it overpaid or improperly disbursed.

Newsday reports that if residents don't pay on time, the U.S. Treasury can levy penalties double that of average credit card interest rates.

Officials say 533 of the victims' cases were sent for collection to the Treasury, which can charge between 28 and 30 percent in late fees.

By law, federal disaster grant money cannot be used to cover costs that would otherwise be paid by private insurance, loans or other assistance programs.

© 2015 AP

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