Katrina Victims May Have to Repay Money

NEW ORLEANS (AP) – Imagine that your home was reduced to mold-covered wood framing by Hurricane Katrina.

Desperate for money to rebuild, you engage in a frustrating bureaucratic process, and after months of living in a government-provided trailer that gives off formaldehyde fumes you finally win a federal grant.

Then a collector announces that you have to pay back thousands of dollars.

Thousands of Katrina victims may be in that situation.

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