FEMA Drops Bill on Belle View Owners Repayment letters sent

[Guest guest]

FEMA Drops Bill on Belle View Owners

Repayment letters sent to over 100 owners.

Gale Curcio

June 2, 2005

Gale Curcio

During the flood of 2003, the banks of this creek were overflowing.

http://www.connectionnewspapers.com/article.asp?

article=51360 & paper=69 & cat=104

About 140 Belle View Condominium owners received mail from FEMA

(Federal Emergency Management Agency) last month. Unlike mail

received two years ago, however, these letters did not contain

checks. Instead the letters are asking for repayment of some of the

money given to owners paid out during the flood. Total sum asked for

equals $195,799.15.

Glenn Fatzinger is outraged. As the owner of a Belle View

condominium, he received a letter demanding that he repay $1,068,

about a third of what FEMA paid him two years ago. He was told by

both U.S. Rep. Jim Moran's office and the Belle View Condominium

Association that he should repay within the deadline and then appeal

if he felt that he had a case.

He was so upset that he wrote a letter to the editor to the Mount

Vernon Gazette; it appeared last week and stated, " My daughter and I

owned a condominium unit on West Wakefield Drive in the Belle View

Condominium area during Hurricane Isabel in September 2003. In

October 2003, she received a grant from the Federal Emergency

Management Agency (FEMA) to compensate for flood damage to her

electric box and for heat pump repairs as well as for being

displaced from her residence for three months.

" Now, FEMA claims that at least part of the grant funds duplicated

the Belle View Condominium Unit Owners Association insurance and her

personal insurance.

Other Belle View Condo Unit owners have also received letters from

FEMA demanding repayment of flood relief grant funds within 30 days.

" FEMA's claim was a mistake because Belle View Condominium Unit

Owners Association insurance did not cover individual unit owners

and did not duplicate other insurance coverage. Such repayment

matters were not discussed by FEMA officials at the time of

providing flood relief. This demand for repayment of a sizable sum

of money within 30 days is a shock to Belle View residents,

especially working persons on a limited income. "

FATZINGER DECIDED to pay the money, saying, " I didn't want them on

our back — didn't want to get tangled up in the bureaucracy. "

He's not as upset about having to repay the money as he is about the

way repayment was demanded.

" My main complaint is that it should have been explained in more

detail — they didn't give a basis for it, " Fatzinger said. " We also

should have had more time to pay. "

The letter sent to the owners merely stated, " FEMA has provided you

funds as a result of your application for disaster assistance. These

funds were provided based upon the disaster related need that you

indicated in your application to FEMA. A further review of your case

reveals that some of all of the funds the FEMA provided to you must

be returned. These funds must be returned because ...: "

A line then indicates the reason, in most cases, it said " Individual

and household program duplication of benefits with insurance. "

Yet, according to the FEMA spokesperson Philip , they are

requesting repayment of some of the money because when the Office of

General Council reviewed the claims they realized that the

association's bylines stated that the association was supposed to

have adequate coverage.

" They had a very expensive, but inadequate flood insurance policy, "

said. " It did not cover nearly enough. "

FEMA is not saying that there was duplicate coverage, but that

because coverage should have been there, they can not cover it.

Austin Durrer from Moran's office admits that it is confusing, and

said that Moran is working with FEMA and Belle View on a compromise

to help people get their money. They are also working to get a 180-

day extension. The letters that were sent out stated that if

repayment is not made with 30 days of receipt of letter, fines will

be attached.

, however, said that as long as people call the 800-number to

discuss repayment options, that they are covered.

" We want to work with people, not cause them undue hardship, "

said. " We gave the money in good faith, but now we realize that the

bylaws stated the damage should have been covered. We are only

asking for money paid for damage to buildings because that should

have been covered by the condominium insurance. "

YET, THE MONEY that Snell, another owner, was asked to repay

was money paid for living expenses. He had to move out of his unit

for two weeks because he has asthma and couldn't stay in the unit

because of the lack of air conditioning and mold problems.

couldn't comment on a specific case without knowing the

details but said that the amount may have been over the amount

allotted for living expenses since Snell stayed in a hotel instead

of an apartment. When asked how one finds an apartment for two

weeks, could not comment.

Snell is not planning to repay the money, saying, " I will pay that

money back when Hell freezes over. "

He has called the 800-number, but said that he's gotten " as many

different responses as you get people. "

One representative told him that he just needed to send a letter

from the insurance company saying that they had rejected his claim;

another told him he also needed to send a letter from the

condominium association. He is preparing a package now with both

letters to send to FEMA.

Belle View has written a letter on Snell's behalf stating, " Please

accept this as a statement concerning payments from the flood

insurance policies held by Belle View Condominiums with General Star

Indemnity and Lloyds of London in the fall of 2003. Mr. Snell did

not receive any payment from the insurance proceeds or from the

Association for losses incurred as a result of the flood damage in

September of 2003. "

THE ASSOCIATION also distributed a letter to owners stating, " As a

follow-up to our letter and posted notice of May 16 concerning the

recent letter some of you have received from FEMA, we are advised by

FEMA that if the demanded payment is not made as stated the

penalties and interest will be applied even though an appeal is

being taken. In addition the 30-day appeal period cannot be

enlarged. In other words, filing an appeal does not put the debt

collection process on hold.

" FEMA advises that anyone affected by their letter can call the FEMA

Disaster Helpline at 1-800-621-3362 for further information and

help. "

Snell believes that FEMA has serious interrater reliability; in

other words one appraiser will go out and award somebody $5,000,

while another appraiser will look at a similar situation and only

award $1,000.

" Some owners in my building called FEMA and they were given money,

while others didn't get anything, " Snell said. " I appealed and got

some more money, but not as much as everybody else. They [FEMA] are

totally disorganized — the organization is so large and has to

respond on such a vast scale. "

He too is concerned about the lack of explanation, and said, " What

insensitivity to send a letter out of the blue to people who have

suffered. There was no explanation — it's hard to figure out what

they want. "