Lawmakers push to change HUD regulation they say hurts Sandy victims

In the days after the storm, the Reillys say they followed FEMA's instructions to file for an SBA loan. They were approved for $88,000, but

Lawmakers are pushing the federal government to change rules that are hurting homeowners who were slammed by Superstorm Sandy.

Lawmakers are pushing the federal government to change rules that are hurting homeowners who were slammed by Superstorm Sandy. (6/10/13)

LONG BEACH - Lawmakers are pushing the federal government to change rules that are hurting homeowners who were slammed by Superstorm Sandy.

Long Beach residents Kevin and Kristie Reilly say their Sandy-damaged home can't be completed because it needs to be raised about 3 feet. They say a fight over federal funds is holding up the process.

In the days after the storm, the Reillys say they followed FEMA's instructions to file for an SBA loan. They were approved for $88,000, but decided against taking out the loan. Now, they say the federal grant money to raise their home is being reduced by $88,000 because of a HUD regulation that requires grants to take into account any possible loans, even if they weren't taken.

Sen. Charles Schumer and Long Beach city leaders are pressuring HUD to reconsider the rules. Schumer's office says it is hoping to get an update soon from HUD on the matter.

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