SCHUMER, GILLIBRAND: SANDY VICTIMS IN NEW YORK ARE YET AGAIN FACING POSSIBILITY OF BEING FORCED TO RETURN FEDERAL AID RECEIVED IN AFTERMATH OF…
SCHUMER, GILLIBRAND: SANDY VICTIMS IN
HUD's Current 'Duplication of Benefits' Policy Would Requires Homeowners to Use Their Additional FEMA NFIP Insurance Money to Repay Federally-Financed CDBG Funds They Received Via NY Rising; Many of these Sandy Victims Have Already Endured Hardship, Denial of Claims & Payment Delays Due to Potentially Fraudulent Schemes Involving Flood Insurance Companies & Engineering Firms
U.S. Senators
However, HUD now says that it will recoup new NFIP settlement funds from recipients that also received Community Development Block Grants (CDBG)-NY Rising grants for the portion of the settlement amount that it considers a "duplication of benefits"; therefore, HUD mandates that the NFIP insurance money must be recouped.
In their letter to HUD and
In 2013, Schumer and Gillibrand successfully pushed HUD to provide additional flexibility to Sandy victims who declined a government loan immediately after Superstorm Sandy. Initially, HUD's "duplication of benefits" policy negatively impacted these victims by requiring that CDBG assistance be reduced by the amount of any approved SBA loan - whether the homeowner accepted the loan of not. Similarly, Schumer and Gillibrand are now publicly urging HUD and
"Once again, the feds are penalizing our cash-strapped Sandy victims, who have already endured years of aggravation and unjustified denial of flood insurance claims, by requiring them to give back the belated NFIP settlement funds they so desperately need and deserve. We should be maximizing the support that homeowners receive and must use every tool in our toolbox to ensure that homeowners keep any aid they receive. I strongly urge HUD to waive its 'duplication of benefits' recoupment policy in this unique situation, given the circumstances surrounding these victims, including evidence of widespread fraud and years of hardship," said
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According to federal court records and news reports, evidence supports allegations that private insurance companies unjustly and arbitrarily denied the flood insurance claims of thousands of homeowners affected by Superstorm Sandy, many based on suspect engineering reports. More than 1,000 property owners filed lawsuits in
Despite the long battle of fighting for these desperately needed funds, Superstorm Sandy victims are now facing another hurdle involving the "duplication of benefits" policy that requires homeowners to use their FEMA NFIP insurance money to repay federally-financed CDBG funds they received via New York Rising and Build it Back. Under current law, "duplication of benefits" is not permitted in connection with the provision of supplemental disaster assistance such as CDBG. HUD regulations provide that CDBG disaster assistance is supplemental in nature, and designed to cover "unmet needs," i.e., needs not otherwise covered by insurance.
Schumer and Gillibrand today said that NFIP settlement funds should not deemed as a "duplication of benefits." Schumer and Gillibrand cited a federal statute that says, "The agency which provided the duplicative assistance shall collect such duplicative assistance from the recipient...when the head of such agency consider it to be in the best interest of the Federal Government." Schumer explained that this statute gives the Secretary of HUD the ability to waive NFIP settlement funds as a "duplication of benefits." Schumer said the Secretary of HUD should deem a waiver of this requirement because these homeowners have had to wait years for this funding due to fraudulent activity, in part by the Federal Government's lack of oversight, and have to fight private insurance companies, leading to unnecessary aggravation. Schumer and Gillibrand said that these Sandy victims should be entitled to the full relief they desperately deserve.
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