What Recapture Means and When It May OccurRecapture means HARP may require repayment of some or all the grant funds already provided for your housing recovery. You may be required to repay HARP funds if:
Duplicative assistance
- You receive funds from FEMA, Small Business Administration (SBA), insurance, or another state or local program after signing your Homeowner Grant Agreement (HOGA) for the same disaster-related costs covered by HARP.
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You do not report additional assistance that overlaps with HARP.
Incorrect or missing information
- Information used for your award is false, misleading, or incomplete.
- Required documents are not provided.
Program requirements not followed
- HARP rules or required steps are not followed.
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Required approvals are not completed before work begins or continues.
Project not completed
- You withdraw after receiving funds.
- Your project is not completed after funds are paid.
Most recapture situations are related to duplication of benefits (DOB).
Duplication of Benefits (DOB)
A duplication of benefits (DOB) occurs when you receive money from another source for costs that HARP has already paid. Example:
- HARP pays to replace your roof.
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Later, insurance also pays for the same roof replacement.
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You may need to repay the overlapping amount.
Subrogation
As part of the Homeowner Grant Agreement, homeowners sign a Subrogation Agreement. This agreement means that if you receive other disaster funds for the same repair or rebuilding costs already paid by HARP, you may be required to repay the overlapping amount.
This may include funding from insurance, FEMA, SBA loans, state or local programs, disaster-related settlements, or other assistance that duplicates HARP funding.
Subrogation does not prevent you from receiving other assistance. However, it may reduce or require repayment of overlapping funds, so the same costs are not paid twice.
This helps ensure disaster recovery funding is used fairly and consistently.
How repayment is handled
Recapture can only occur after you have signed your grant agreement and received a HARP award. At the end of your project, HARP will review your file to confirm that your award amount was correct. If new information affects your eligibility or award amount, you may be required to repay some or all of the funds.
If repayment is required, HARP will:
- Notify you in writing
- Explain the reason for the repayment
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Calculate the required amount
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Provide an opportunity to appeal the determination
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Work with you to determine next steps
You will never be asked to repay more than the total HARP funds you received.