From Mailbox to Spending, Use Iowa Disaster Assistance Checks Wisely
Release Date: July 31, 2008
Release Number: 1763-127
» More Information on Iowa Severe Storms, Tornadoes, and Flooding
DES MOINES, Iowa -- Disaster assistance checks are bringing some needed financial help to Iowans affected by this summers flooding event. But those checks come with some words of advice from state and federal officials: Be cautious, use wisely.
A check from the Federal Emergency Management Agencys (FEMA) Disaster Housing Program will be either a grant to make minimal temporary repairs on the damaged home or for rental assistance. A letter explaining what the money is intended for will arrive within a day or two of receiving the check. Officials from the Iowa Homeland Security and Emergency Management Division (HSEMD) and FEMA offer the following tips to help Iowans get the most out of the checks for their personal disaster recovery.
- Deposit checks as soon as possible.
Dont:- Cash and carry large sums of money.
- Deal with strangers offering check-cashing or deposit services.
- Use the money for the disaster-related assistance it is intended.
Dont:- Be tempted to pay household bills.
- Make purchases unrelated to needs created by the disaster.
- Use the funds for travel.
- Select a repair company with caution. If a disaster assistance check is earmarked for repairs it is for minimal repairs to make the house habitable. This includes fixing windows, doors, plumbing, ventilation, electrical systems and minor structural damage.
Dont:- Arrange for repair work without a written statement of work to be completed.
- Use a repair service without seeking a recommendation.
- Pay the repair person up front.
Funds are intended to help residents meet basic disaster-related needs and regain a normal life. If the applicant spends the money on anything other than the purpose for which the check is intended, no additional assistance may be granted if the need arises in the future. Money received from federal or state disaster programs is tax-free as long as it is a qualified disaster relief payment; the payment must be for a disaster-related expense. If the expense is reimbursed through insurance, the disaster payment is taxable. An exception is Disaster Unemployment Insurance, which is taxable unemployment compensation. For tax information, visit www.irs.gov or call 800-829-1040.
Grant recipients are urged to keep receipts of their disaster spending and stay in touch with FEMA through the Helpline if their situations change. The number is 800-621-FEMA (3362) or for the hearing- or speech-impaired, TTY is 800-462-7585 from 7 a.m. to 11 p.m. seven days a week.
FEMA coordinates the federal governments role in preparing for, preventing, mitigating the effects of, responding to, and recovering from all domestic disasters, whether natural or man-made, including acts of terror.
Last Modified: Friday, 01-Aug-2008 16:16:26