Pallone Commends HUD Decision Not to Force NJ Residents to Pay Back Disaster Recovery Benefits

FEMA Heeds Call for Flood Insurance Claims Review Extension

WASHINGTON, DC – September 17, 2015 – (RealEstateRama) — Congressman Frank Pallone, Jr. (NJ-06) commended the U.S. Department of Housing and Urban Development’s (HUD) decision not to require the State of New Jersey to recoup duplication of disaster recovery benefits up to $20,000 from residents. For those who receive more than $20,000, HUD will require the State of New Jersey to prove that the additional Federal Emergency Management Agency (FEMA) funds are duplicative of other federal funds and, if so, the state must then decide if they wish to pursue repayment. The decision comes after an announcement from the FEMA that it will grant a 30-day extension, until October 15, for homeowners affected by Superstorm Sandy to file a flood insurance claims review. Pallone, who pushed FEMA to set up the insurance review process, sent a letter in August to FEMA urging the extension.

“Too many in New Jersey are still rebounding from Sandy and continued help from FEMA and HUD is necessary,” said Congressman Pallone. “I am glad that FEMA listened to our call for an extension and that New Jersey residents can now be assured that they will not be forced to pay back disaster recovery funds they have already received from HUD.”

Following Sandy, thousands of policyholders of FEMA’s National Flood Insurance Program received insufficient flood insurance payments due to alleged fraud on the part of FEMA contractors. Following a request from Pallone, FEMA established a process allowing homeowners to file an appeal if they believe they have been a victim of an intentionally altered engineering report. This has resulted in additional flood insurance payments to residents of New Jersey. Before today’s HUD decision not to force residents to repay duplicative benefits, there was concern that additional, duplicative FEMA flood insurance payments may have to be returned to HUD.