§5174a Flexibility

Summary

The Agency must cancel debts to the United States for disaster help given to people or households when the Agency made an error in giving the help. The Agency must also cancel debts when the assistance is the subject of a legal claim, including under the Stafford Act. The Agency cannot cancel a debt if it involves fraud, a false claim, or misrepresentation. The DHS Inspector General must track how much covered assistance was given because of errors. If errors account for more than 4 percent of covered assistance in any 12-month period, the Inspector General must tell the Agency and publish that finding. For disasters declared after that publication, the Agency must report to the House Committee on Transportation and Infrastructure and the Senate Committee on Homeland Security and Governmental Affairs what it will do to cut the error rate. The Agency may not try to take back covered assistance from a person if the help was received more than 3 years before the first written notice of intent to recoup, unless there is evidence of civil or criminal fraud. For disaster aid to State or local governments given on or after January 1, 2004, any administrative recovery barred by the amended section 5205(a)(1) may not be taken after October 5, 2018, and barred recovery actions that were pending on that date must be stopped; actions finished before October 5, 2018 remain valid. Definitions: “covered assistance” means assistance under section 5174 tied to disasters or emergencies declared by the President on or after October 28, 2012 for the waiver rule, and for the three-year recoup rule it means assistance under section 5174 for disasters declared on or after January 1, 2012.