Katrina victims may have to repay money "NEW ORLEANS - Imagine that your home was reduced to mold and 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 tainted with formaldehyde you finally win a federal grant.
"Then a collector calls with the staggering news that you have to pay back thousands of dollars.
"Thousands of Katrina victims may be in that situation."