Long Island homeowners impacted by Superstorm Sandy say they suddenly owe big money to New York Rising

Some homeowners impacted by Superstorm Sandy say they owe big money to New York Rising

LINDENHURST, N.Y. -- Ten years after Superstorm Sandy ravaged homes across Long Island's shoreline, many people claim they are being victimized all over again.

As CBS2's Jennifer McLogan reported Tuesday, some homeowners are being told they suddenly owe tens of thousands to a relief program that was supposed to help them rebuild.

"It was devastating," Scott Guven said.

Scott and Merrill Guven's dream home in Lindenhurst was ravaged by the storm in 2012. They got partial help to rebuild.

"Our flood insurance is the only one that paid us," Scott Guven said.

A decade later, they say they are relieved they did not apply for New York Rising funding. Most of their neighbors did.

"I don't understand how the government could actually want to see receipts from 10 years ago," Linda Reddington-McGrath said.

Block after block, multiple homeowners are receiving notification saying prove you got the work done or pony up the receipts.

"New York Rising is claiming a lot of people got overpaid and they are doing this recapture thing," one frustrated homeowner said.

He is fighting back.

"I owe $47,000. A lot of my other neighbors have been caught in the same bind," he said.

"Now mind you, my mom lives right over there, and the money she got to fix her house, she used it, you know, wisely," Benjamin Lopez said.

The state says it is required by the federal government to ensure that if funds were provided to a homeowner the work was actually completed and the applicant was eligible to receive it.

"Our office is committed to a flexible and understanding approach as we work with applicants to comply with federal requirements and reconcile New York Rising housing recovery awards," said Paul Lozino of the Governor's Office of Storm Recovery.

Bob Mallen may be one of the lucky ones.

"I have all of my receipts. I have boxes," Mallen said.

But that might not be the case for Bill Farley.

"I don't know who saves receipts 10 years. I don't know. That's crazy," Farley said.

The state says it will offer interest-free payment plans to satisfy any of its Sandy funds overpayment.

"That tells you it's all about the money. It's all about the money, and they weren't really here for the people," Lopez said.

Lopez said he hopes the applicants' message is heard.

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