Recoupment
From FEMA Answers
FEMA is now sending bills for recoupment of assistance funds granted to applicants. The majority of these we have seen so far are for shared household rule and insufficient damage. If you receive a Recoupment Letter from FEMA, you have sixty days to appeal it. Thirty days after the letter is mailed, interest will begin to accrue, so it is best to appeal it as soon as possible. To appeal, write FEMA that you believe FEMA is wrong to recoup the funds, and you are formally appealing FEMA’s decision that you are not eligible for the assistance. Sample Letters and a form letter are provided for reference below.
Under 44 CFR §11.51(b)(1), Recoupments can be terminated if:
Collection action may be terminated and the Agency file closed for the following reasons: (i) No substantial amount can be collected; (ii) the debtor cannot be located; (iii) the cost will exceed recovery; (iv) the claim is legally without merit; or (v) the claim cannot be substantiated by evidence.
FEMA is sending out recoupment notices that state that it expects pre-disaster shared households to continue to live together after the disaster. Shared Household Recoupment Notice. FEMA sends these letters regardless of whether, in the individual case, the shared household split apart after the disaster and are otherwise eligible. This interpretation of the shared household rule is wrong, and these decisions by FEMA should be appealed.
Sample Appeals:
- NOLAC Recoupment Appeal Sample for applicants who are facing recoupment
- Appeal of Recoupment of Transportation Assistance for applicants who are facing recoupment of a grant for a vehicle when their vehicle was destroyed by the disaster
- Appeal of Recoupment of Assistance for Applicant with Disaster-Related Medical Expenses shows eligibility for medical expenses reimbursement may offset recoupment of other funds applicant received in error
Form Letter:
Forms You Will Need to Fill Out and File with the Appeal
- Declaration of Funds Use and Need makes the first $2358 Rental Assistance grant spendable on Essential Needs.
- Declaration of Need for Rental and/or Personal Property Assistance is for Applicants who were renters before the disaster who were not able to go back to their pre-disaster homes and may have lost their property.
- Hardship Waiver Form is for Applicants who are unemployed or on a fixed income or facing financial difficulties and will not be able to repay the recoupment amount.
