FEMA asking for repayment from 2 in Gays Mills

Two elderly women have been asked to return money to the Federal Emergency Management Agency in the wake of floods from the Kickapoo River that swamped the village of Gays Mills in 2007 and 2008.
The State Journal reports ( http://bit.ly/iTsH83) that 81-year-old Phyllis Drake told the newspaper she owes FEMA $10,000 and 75-year-old Blanche Gabel owes $520. Both women are appealing the requests.
"I don't have the money," Drake said. "How they expect a person to pay $10,000 back because they overpaid someone -- it's beyond me."
FEMA says some of those who were approved and received benefits were not eligible because they received duplicate benefits from other sources like insurance companies or because of human or accounting errors.
"FEMA is committed to working with each of these individuals if they feel they have received these notices in error or have questions about their case," FEMA spokeswoman Rachel Racusen said.
The agency is required by law to recover improperly spent money. The women's options include appealing, applying for a hardship waiver to forgive the debt or establishing a payment plan, FEMA said.
Drake ran the Red Apple Restaurant in Gays Mills for 25 years. She said money she received from FEMA in 2007 and from her insurance company is long gone after she used it for furniture, clothing, kitchen utensils and other contents of the home.
It also went to repair damage and raise the elevation of the 100-year-old home that once was her mother's.
"I had to start over," Drake said. "My house is the only thing I have."
Both Drake and Gabel decided to remain near the river in Gays Mills. Many neighbors moved out of the village or to higher ground on the village's north side. The library, village offices, grocery store and other businesses are also moving to higher ground.
Gabel received $34,000 from her insurance company for repairs and a $24,000 grant to build a room onto her house so the furnace and hot water heater could be moved out of the basement. She received $6,631 from FEMA, but $4,500 of that was to help her replace her 1997 Ford Taurus, which was submerged and not covered by her auto insurance policy. Gabel had an initial appeal denied and now is being charged interest on the money she owes.
"They call it a debt," Gabel said. "If they approve my appeal, they'll send the money back. It sounds like a scam."