Proposal would prohibit FEMA clawbacks for Sandy aid

UNION BEACH The federal government would be barred from seeking payback for excessive emergency assistance provided to most victims of superstorm Sandy under new legislation announced Friday.

The proposal will require the Federal Emergency Management Agency to forgive debts to Sandy victims who make less than $250,000 annually even if they received more money than they were eligible to so long as it was not through an attempt to game the system, according to its authors, U.S. Sen. Robert Menendez and Congressman Frank Pallone, both Democrats representing New Jersey.

FEMA said last year that some 1,200 New Jerseyans may end up receiving a notice that they got too much emergency assistance after Sandy and that they would be expected to return what they should not have received.

"When FEMA assistance came, at the time many considered it a blessing, and now that they've gotten these bills they consider it a curse," said Menendez during a news conference on a blustery Friday on the Bayshore.

One of those frustrated by FEMA is Jill Svelling Belloff, a Forked River woman who told the Asbury Park Press in November about the stress of managing a post-Sandy life and then being told by the agency that $2,500 in relocation assistance they gave her, which had long since been spent, needs to be paid back.

She said on Friday that the debt had been reduced a few hundred dollars, but that passage of this legislation as described would mean "I wouldn't have to pay back approximately $2,000 that I don't have. ... I'm still relocated and cannot afford to pay the mortgage and rent plus return money to FEMA."

To be clear, if the aid money was obtained through deceit or fraud on the part of the recipient, FEMA would continue to be free to pursue a remedy.

"What we're saying is that if you (applied for what you thought you were eligible for) and it was honest, and the mistake was with the government then the government shouldn't come back and ask for the money back," Pallone said. "You're asking this, as (Menendez) said, of people who have already scrapped every penny to rebuild their home or to make ends meet or whatever, so it's particularly unfair under those circumstances."

Menendez, citing some preliminary figures, said there were 809 such recoupment letters in New Jersey, seeking an average repayment of $7,000.

People who have received such a letter should not ignore it simply because this legislation has been announced. Menendez said that individuals should still engage in the process with FEMA, specifically by making use of their right to appeal the debt.

The backdrop for the announcement was the home of Rick and Sandy Drake, who rebuilt their Sandy-flooded home and elevated it 17-feet in the air only to receive a bill for their of $33,000 for their annual flood insurance premium. The senator's office found an error in the FEMA's flood map and the Drake's bill was reduced down to $600, or about what it was prior to the storm.

Rick Drake described opening a letter from insurer on April 4. and seeing the five-figure number as the amount owed.

"At first glance I thought this was a mistake so I contacted my insurance company only to find out that it was not an error and that was my new premium," he said. "I was shocked and truly scared that I wouldn't be able to resolve this issue."

The Drakes' story is not unique. The Asbury Park Press reported on a Highlands woman who got a flood insurance bill for $34,000, even though her home had been lifted to nearly 16 feet. The premium was later revised down to $7,700, which was still considerably higher than what she was told to expect.

Menendez credited the newly installed flood insurance advocate within FEMA with helping to bring about change for the Drake family.

"This is one of the first cases of being able to work on an issue and having some success," Menendez said.

Russ Zimmer: 732-557-5748, razimmer@app.com