$700 Million in Hurricane Aid Unaccounted For

In all likelihood, federal funds were not used as intended


A new inspector general's report found that about $700 million awarded to help Hurricane Katrina victims fortify their homes from future floods is unaccounted for, which Congressional leaders say is a troubling sign of the need for tighter controls as Superstorm Sandy rebuilding efforts intensify this spring.

The Department of Housing and Urban Development is pressing the state of Louisiana to recover the money given to homeowners to elevate their houses. But David Montoya, the inspector general of the agency, told ABC News that the likelihood of reclaiming the money was "slim, at best."

"We have $700 million that we can't account for and that certainly did not go to elevating homes and preventing future damage from storms," Montoya said in an interview in his office in Washington.