Use Recovery Money Wisely, Officials Urge

$5 Million Flows to Residents of Five Counties

Release Date: July 30, 2010
Release Number: 1918-028

» More Information on West Virginia Severe Storms, Flooding, Mudslides, and Landslides

BEAVER, W. Va. – State and federal disaster assistance payments and loans have provided more than $5 million in financial help to homeowners and renters in West Virginia with property losses from June flooding.  Here is a breakout of funding approved through Thursday, July 29:

FEMA housing grants: $3.9 million

FEMA and West Virginia grants for essential needs: $266,000

U.S. Small Business Administration low interest loans: $879,000

The funding comes with words of advice from the State of West Virginia and the Federal Emergency Management Agency (FEMA):  Use the disaster assistance money for the intended purpose. The money was approved for residents of Lewis, Logan, McDowell, Mingo and Wyoming counties to repair their homes, replace essential personal property and to use for temporary housing.

“If you spend your disaster money on anything other than the intended purpose, you’re not helping yourself in the long run,” said Jimmy Gianato, head of West Virginia flood recovery efforts.

FEMA grants cover losses that are not covered by insurance. The money may not be used to improve a home above its pre-disaster condition unless required by current building codes. Here is a primer on how to spend FEMA money correctly:

Housing – FEMA money can be used to make a damaged home safe and sanitary. It also covers temporary rent while the repairs are made. Use FEMA money to repair:

• Structural parts of your home such as foundation, outside walls, and roof
• Windows, doors, floors, walls, ceilings, cabinetry
• Septic or sewage system
• Well or other water system
• Heating, ventilating, and air conditioning system
• Utilities such as electrical, plumbing and gas systems
• Entrance and exit ways from your home including privately owned access roads
• Blocking, leveling and anchoring of a mobile home and reconnecting or resetting its sewer, water, electrical and fuel lines, and tanks.

Other than Housing Needs: Money to repair damaged personal property or to pay for disas­ter-related necessary expenses such as the following:

• Disaster-related medical and dental costs
• Disaster-related funeral and burial cost
• Clothing, room furnishings and appliances
• Tools and special­ized or protective clothing and equipment required for your job
• Necessary educational materials such as computers, school books, and supplies
• Heating oil, gas, firewood or other fuel for primary heating system
• Clean-up items such as wet/dry vacuum, air purifier and dehumidifier
• Vehicle damaged by the disaster
• Moving and storage expenses related to the disaster
• Other necessary expenses or serious needs as determined by FEMA.

Money must be used for eli­gible expenses and should be used within 18 months of the June 2010 disaster declaration. FEMA and state disaster grants do not have to be repaid and are tax free. Officials caution that people who do not use their grants correctly may not be eligible for any additional help and may have to repay the money.

Here are other facts to be aware of:

• Disaster assistance grants are not counted as income or a resource in determining eligibility for welfare, income assistance or income-tested benefit programs funded by the federal government
• Disaster assistance grants are exempt from garnishment, seizure, encumbrance, levy, execution, pledge, attachment, release or waiver
• Keep receipts or bills for 3 years to show that the money was used by the intended person for the intended disaster-related needs.

"People may be tempted to use their grant money to pay regular household bills,” said Gianato, “but they should not rob Peter to pay Paul. Disaster grants can be audited to make sure the money was correctly spent."

Gianato said that families who spend their disaster relief money correctly will get their lives back to normal quicker.

State and Federal officials are urging those that have received loan applications from SBA to complete and return them as quickly as possible in order to continue the financial assistance process.  If SBA is not able to approve a loan for a homeowner or renter, they will be referred back to FEMA for any possible grant assistance. 

FEMA's temporary housing assistance and grants for disaster-related medical and dental expenses, and funeral and burial expenses do not require individuals to apply for an SBA loan. However, applicants who receive SBA disaster home loan applications must submit them to SBA to be eligible for FEMA assistance that covers personal property, vehicle repair or replacement, and moving and storage expenses.

FEMA’s mission is to support our citizens and first responders to ensure that as a nation we work together to build, sustain, and improve our capability to prepare for, protect against, respond to, recover from, and mitigate all hazards.

Last Modified: Friday, 30-Jul-2010 16:59:31