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An inspector general's report found that $700 million in post-Katrina relief funding can't be accounted for.
The taxpayer money was supposed to help communities rebuild after Hurricane Katrina.
Homeowners were given the funds to elevate their houses to prevent future flood damage.
However, the report found that many pocketed the money with no questions asked by the government.
Lawmakers are now calling for better oversight of recovery money for Superstorm Sandy.