Is New Orleans an incompetency magnet or what?!

Ripped from their homes from a destructive hurricane and a shoddy levee system, forced to survive on their own with little to no help. FEMA finally shows up with their massive incompetency and their toxic death-trap trailers… and now this:

Katrina Victims May Have to Repay Money

NEW ORLEANS (AP) — 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. [...]

The contractor, ICF International of Fairfax, Va., revealed the extent of the overpayments when it issued a March 11 request for bids from companies willing to handle “approximately 1,000 to 5,000 cases that will necessitate collection effort.”

The bid invitation said: “The average amount to be collected is estimated to be approximately $35,000, but in some cases may be as high as $100,000 to $150,000.”