The Road Home program created after Hurricane Katrina is still causing paperwork headaches nine years after the storm.
The nearly $10 billion program was designed to help residents rebuild so they could return. But 32,000 people remain in legal limbo.
Last year the state sent almost 50,000 letters to homeowners demanding they repay some of their grants.
About 100 people attended a New Orleans City Council committee meeting this week, saying they are caught in a paperwork nightmare.