Sec. 615. Flexibility
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In this section, the term covered assistance means assistance provided— under section 408 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act ( 42 U.S.C. 5174 ); and in relation to a major disaster or emergency declared by the President under section 401 or 501 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act ( 42 U.S.C. 5170 ; 42 U.S.C. 5191 ) on or after October 28, 2012. Notwithstanding section 3716(e) of title 31, United States Code, the Administrator of the Federal Emergency Management Agency— subject to paragraph (2), may waive a debt owed to the United States related to covered assistance provided to an individual or household if— the covered assistance was distributed based on an error by the Federal Emergency Management Agency; there was no fault on behalf of the debtor; and the collection of the debt would be against equity and good conscience; and may not waive a debt under paragraph
(1)if the debt involves fraud, the presentation of a false claim, or misrepresentation by the debtor or any party having an interest in the claim. The inspector general of the Department of Homeland Security shall monitor the distribution of covered assistance to individuals and households to determine the percentage of such assistance distributed based on an error. If the inspector general determines, with respect to any 12-month period, that the amount of covered assistance distributed based on an error by the Federal Emergency Management Agency exceeds 4 percent of the total amount of covered assistance distributed— the inspector general shall notify the Administrator and publish the determination in the Federal Register; and with respect to any major disaster or emergency declared by the President under section 401 or section 501, respectively, of the Robert T. Stafford Disaster Relief and Emergency Assistance Act ( 42 U.S.C. 5170 ; 42 U.S.C. 5191 ) after the date on which the determination is published under subparagraph (A), the authority of the Administrator to waive debt under subsection
(b)shall no longer be effective.
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