§5174a Flexibility

Summary

The law requires the Administrator to cancel (waive) debts for certain individual or household disaster aid when the aid was given because of an Agency error or when the aid is part of a legal claim. The waiver applies to help given under section 5174 for disasters or emergencies declared by the President on or after October 28, 2012. Debts cannot be waived if there was fraud, a false claim, or intentional misrepresentation. The Department of Homeland Security Inspector General must track how much aid was given by mistake. If errors make up more than 4 percent of aid in any 12-month period, the Inspector General must tell the Administrator and publish the finding. For disasters declared after that notice, the Administrator must tell the House Committee on Transportation and Infrastructure and the Senate Committee on Homeland Security and Governmental Affairs what will be done to reduce errors. The Agency cannot try to get back covered assistance from a recipient if the aid was received more than 3 years before the Agency first gives written notice of intent to recoup, unless there is evidence of civil or criminal fraud. That 3-year rule applies to aid under section 5174 for disasters or emergencies declared on or after January 1, 2012. For disaster or emergency aid given to state or local governments on or after January 1, 2004, no administrative recovery may be taken after October 5, 2018 if blocked by the amended rule, and any pending recovery actions that are so blocked must stop. Completed administrative actions before October 5, 2018 are not affected.