PHOTO: Mayor de Blasio (c.) has sent a letter to HUD Secretary Julian Castro (r.) asking HUD to step in and sort out possible duplication of benefits issues that could affect thousands of Superstorm Sandy victims. Photo Courtesy of Rob Bennett/Mayoral Photography Unit
Mayor Bill de Blasio and a Brooklyn city councilman recently penned a letter to the U.S. Department of Housing and Urban Development, calling on Secretary Julian Castro to step in and “provide immediate guidance” regarding Federal Emergency Management Agency Superstorm Sandy flood insurance settlements and how they could possibly impact the city Build it Back program.
At issue is duplication of benefits. If a homeowner receives any new money from FEMA—even additional funds owed them due to instances of fraud—then Build it Back must recoup an equivalent amount of money to avoid duplicating benefits.
The administration has called the practice “patently unfair,” and is urging the federal government to act so the city is not forced to clean up a possible mess down the road.
“Our primary concern is ensuring that all impacted homeowners return to their homes as quickly as possible,” de Blasio and Councilman Mark Treyger (D-Bensonhurst) wrote in the letter dated Aug. 19. “Asking the City and homeowners to stop and re-evaluate their HUD grant funding at this point will divert significant program resources and delay construction and relief for homeowners. The Federal Government’s position in this matter not only creates unnecessary complexity, but it is patently unfair. It is unfair to the homeowners who are finally receiving much-needed relief and it is unfair to ask the City to sort out an issue that FEMA created, at great expense to the Build it Back program.”
The administration has pointed out that this issue could greatly affect 3,000 property owners citywide.
A HUD spokeswoman said the matter remains under review.
“HUD is mindful of the duplication of benefit issues presented in the settlement discussions on National Flood Insurance Program claims and is working closely with FEMA and the grantees distributing Community Development Block Grant disaster recovery in response to Hurricane Sandy,” said Olga Alvarez. “The Department is committed to a fair and rapid resolution of this unique and unfortunate situation.”
In July, U.S. Sens. Charles Schumer and Kirsten Gillibrand (both D-N.Y.) sent a similar letter to HUD and FEMA, detailing many of the Sandy victims affected by the “unfair policy” have already been forced to wait nearly three years to be appropriately compensated, and have had to endure significant hardship as a result of “incompetence, and even potential fraud.”
Given these extraordinary circumstances, Schumer and Gillibrand said, HUD should waive the “duplication of benefits” recoupment policy for Sandy victims that may receive an additional payment from FEMA.
By Michael V. Cusenza michael@theforumnewsgroup.com
