Use Disaster Funds Wisely
Release Date: November 14, 2007
Release Number: 1731-034
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PASADENA, Calif. -- People who get disaster grants must follow the letter-the letter from the Federal Emergency Management Agency that explains how to use disaster funds.
Grants are tax free and are not a loan. They do not have to be repaid. They are not counted as income for welfare or other federal benefit programs and they cannot be garnished.
However, grants must be used as intended. Every recipient receives a letter about the same time they receive any money. The letter outlines how the money can be spent.
Housing funds may be used for:
- Repairs to return the home to a safe and functional condition: These may include repairs to windows, doors, water and ventilation systems, or other structural parts of a home;
- Reimbursement for hotel or motel lodging expenses directly related to the disaster: Receipts for these expenses will be requested if the home sustained damages;
- Rental assistance: Applicants who must remain in temporary housing for a longer period than the initial assistance covers may request more assistance until their home can be re-occupied or other permanent housing arrangements can be made; or
- Rebuilding a home that has been completely destroyed.
Other Needs Assistance funds may be used for:
- Personal property, specialized tools for employment, household items, appliances, and vehicle repair or replacement;
- Medical, dental and funeral expense; and
- Moving expenses and other disaster-related needs.
All expenditures must be disaster-related. If the grant money is not used as outlined in the letter, a recipient may have to pay it back and may lose eligibility for any further help.
Grants may be subject to an audit. Each recipient is responsible for spending the money as intended. Recipients are strongly encouraged to fully document their disaster-related expenses. They must keep receipts or bills for three years to demonstrate how all of the money was used in meeting disaster-related needs.
FEMA coordinates the federal government's 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: Wednesday, 14-Nov-2007 15:08:04