State News

Federal aid unaccounted for, La. could foot half-billion dollar tab

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Posted: Apr 3, 2013 10:23 PM by Trey Schmaltz
Source: WBRZ

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Topics: katrina, rita, louisiana, fema, hud

BATON ROUGE- Trouble with federal hurricane relief money could mean Louisiana's budget woes are even worse.

An audit found Road Home money, handed out after Hurricanes Katrina and Rita in 2005, may have been misspent.

According to reports, the money was required to be spent on things like repairs, home reinforcements, and elevating foundations, but was pocketed by a number of people instead of being used on construction.

$700,000,000 in federal aid is unaccounted for. If it's not recouped, the state could have to pay the bill.

"This is money we cannot afford to lose. This is money we can't get back and this is money we can't put toward other disasters," Housing and Urban Development Inspector General David Montoya said.

Click HERE for an investigation by ABC News on the HUD money issue
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