Newtown Flood Losses May Trigger FEMA Loans, Grants

By John Voket

First Selectman Herb Rosenthal said the best way to position local residents and business owners suffering flood damage in last month’s storms for possible disaster grants is to file insurance claims, no matter how small, and then to apply for low-interest disaster loans if they are made available. In an interview this week, the first selectman said it is the number of loan claims that trigger federal officials to institute grants to compensate claimants for flood-related losses.

According to a release, officials from the Boston regional office of the Federal Emergency Management Agency (FEMA) have nearly completed damage surveys in all six New England states struck by the strong winds, heavy rains and storm surge of Patriots’ Day Nor’easter. Officials have teamed up with state and local emergency management officials to assess damages in every county in Connecticut, Massachusetts, New Hampshire, and Rhode Island, and 13 counties in Maine and four counties in Vermont.

“We’ve been on the ground with our state and local partners throughout New England assessing damages to homes and public facilities as quickly and as efficiently as possible,” said Art Cleaves, FEMA regional administrator in Boston. “If a determination is made that federal assistance is warranted, the recovery process can quickly get underway.”

The governors of the six New England states requested federal participation in preliminary damage assessments as a first step in seeking federal disaster assistance. During an assessment, the joint teams tour storm-affected areas and review damage to homes, impact on roads and critical facilities, the level of insurance coverage held by homeowners and public facilities, and assistance available from other sources.

So far, the teams have completed the requested damage assessments in New Hampshire and Vermont, with teams finalizing surveys in Maine by Wednesday. The teams in Connecticut, Massachusetts, and Rhode Island will complete their work within the next few days.

The information gathered from the damage assessments is used by a governor to determine if the damages are beyond state and local capabilities. The swift completion of the assessments will help speed assistance if federal aid is requested by the governor and the damages warrant a disaster declaration by President Bush.

FEMA coordinates the federal government’s role in preparing for, preventing, mitigating the effects of, responding to, and recovering from all domestic disasters, whether natural or manmade, including acts of terror.

Locally, Mr Rosenthal reported that more than eight miles of unimproved roads and 25 miles of improved roads were damaged. Public works director Fred Hurley said this storm was insidious in that the cumulative damage is excessive.

“It’s hard to come up with a cost estimate until we actually go out and fix everything,” he said. “I’m projecting a reasonable figure of as much as $50,000 to $70,000 per mile for sections of improved roads.” But he said the greatest damage was to unimproved roads. In addition, one bridge approach on Turkey Hill Road was completely submerged. He said that area will be the one to be assessed most carefully.

It is possible that the gross damages could “easily” exceed $1 million, Mr Hurley said, adding that storm related sinkholes and washouts may continue developing well into the summer.

Private and commercial damage could be millions more Mr Rosenthal said, which resulted in an appeal to local residents and business owners to file either private insurance claims, or in lieu of insurance coverage for water damage, applying for low-interest emergency loans.

“If people are refused on claims, or receive partial reimbursement, they should then file for low-interest loans if those are made available, and even if they do not intend to follow through in accepting those loans,” Mr Rosenthal said.

He explained that it is typically the volume of requests for emergency loans that trigger federal emergency grants, which then replace most or all of the loan payouts. Mr Rosenthal added that the federal officials are careful to determine that loan applicants have exhausted resources from their own insurance carriers, so those who have coverage should first file insurance claims if they have not already.

“If you receive partial coverage, or a rejection, it is vital to save every piece of correspondence,” Mr Rosenthal said. “At some point in the coming weeks, there will be a general announcement about how to apply for loans if they are made available.”

He said local programs would be pending the President’s accepting the Connecticut’s declaration of a statewide disaster area. Town Emergency Management Coordinator William Halstead said FEMA officials have been working in Danbury and Oxford in recent days, and he expects them to arrive in Newtown soon.

Mr Halstead’s preliminary estimated cost of emergency responses is $20,000, and his preliminary estimates for permanent restorative work on town roads, bridges and facilities is in excess of $615,000.

In related news, Attorney General Richard Blumenthal said consumers must use extreme caution to protect against unscrupulous contractors cashing in on the millions of dollars worth of damage that resulted from the nor’easter.

“There are potentially thousands of Connecticut consumers in need of repair work — ripening the market for contractor fraud,” Mr Blumenthal said. “Natural disasters can bring out the worst in crooked contractors seeking to capitalize on consumer hardship. My office criminally prosecutes hundreds of cases each year involving contractors who collect money, but fail to do the work.

“My office will continue to pursue rogue contractors — but consumers must protect themselves before the damage is done. The watchword must be caution.”

Mr Blumenthal said there are several steps that consumers can take to protect themselves against rogue contractors:

*Request the contractor’s license number, and verify the license with the state by contacting the Attorney General’s Office or the Department of Consumer Protection. A current registration assures that the consumer will be eligible to make a claim against the state guaranty fund in the event that the contractor defaults.

*Ask for references — consumers who have used the contractor in the past — and contact them to confirm the quality of the contractor’s workmanship and work ethic.

*Pay as little as possible up front — and never pay in full before the work is complete. Set up a “progress payment” system where the contractor is paid in installments as major milestones in the work are completed.

*Ensure that the contractor obtains any required permits.