Katrina victims may have to repay money

Governor under investigation
The prospect of Road Home grant collections comes less than two weeks after the Louisiana inspector general and the legislative auditor said they were investigating why former Gov. Kathleen Blanco paid ICF an extra $156 million in her waning days in office to administer the program. With the increase, ICF stands to earn $912 million to run Road Home, a contract that also sweetened its initial public stock offering, helping it buy out four other companies and enter government contracting in sectors including national defense and the environment.

Paul Rainwater, executive director of the Louisiana Recovery Authority, the state body that asked for the Blanco-ICF investigations, acknowledged the collections could be painful for applicants, many of whom have used up their nest eggs to rebuild.

"The state must walk a fine line of treating homeowners who have been overpaid with fairness and compassion and ensuring that all federal funds are used for their intended purpose," said Rainwater, an appointee of new Gov. Bobby Jindal.

Upon receiving money from Road Home, grantees sign forms that say they must refund any overpayments.

Melanie Ehrlich, co-chair of Citizen's Road Home Action Team, which has documented Road Home cases that appear littered with mistakes, said she had no confidence that ICF had correctly calculated overpayments. She charged that the company was more likely using collections as retribution against people who had appealed their award amounts in effort to get the aid they deserved.

"I think they are looking for ways to decrease awards and that's part of dissuading people," she said.

Brann said applicants are told an appeal could boost or diminish their award. She called Ehrlich's charge "a totally unfounded assertion."

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