Some older residents have expressed concerns that applying or receiving state and federal financial assistance may cause them to sacrifice Social Security benefits, pay additional taxes or give up income-based benefit programs. FEMA and the SBA are telling elders affected by Hurricanes Katrina and/or Rita that their concerns are unfounded.

A state or federal grant does not add to taxable income as long as the grant is given as assistance to recover from a disaster. The housing grant will not affect Social Security as a taxable income and will not affect eligibility for Medicaid, welfare assistance, food stamps or Aid to Families with Dependent Children (AFDC). FEMA grants are not repaid by the recipient.

After a disaster strikes, people who suffered damages must register with FEMA to find out about services that may be available to them. It is also important to apply for an SBA (Small Business Administration) disaster loan. It is vital older persons apply for an SBA loan even if they do not qualify. Applying for a loan is important because it will enable the affected resident to become eligible for other programs, but the SBA loan application must be completed and submitted first.

Often, many seniors do not receive loans or grants because they do not complete the required process for financial assistance. They should act immediately, as these programs are available for a limited time. The Hazard Mitigation Grants Program (HMGP) to make homes and businesses safer from future disasters is no longer considered a taxable improvement by the Internal Revenue Service (IRS). These grants are entirely separate and are not awarded to individuals registering for disaster assistance. Residents must contact their local officials.

Older disaster victims can call FEMA to find out more about housing grants and other programs at 800/621-FEMA (3362), or TTY 800/462-7585 for people who are speech- or hearing-impaired. Lines are open 24 hours a day, seven days a week until further notice.

[10/23]