April 4, 2013
Federal investigators said Wednesday that as much as $700 million in federal aid intended to help some 24,000 Louisiana families elevate their homes after Hurricanes Katrina and Rita in 2005 may have been misspent.
A report by the Housing and Urban Development Department’s inspector general said some homeowners who got grants of up to $30,000 used the money for something else, and that others didn’t provide sufficient documents to state officials to show that the work was done.
“The state did not have conclusive evidence” that $698.5 million in disaster recovery aid was used to elevate homes, the auditors wrote.
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