NM fire survivors raise concerns about smoke damage payments

Survivors of the Hermits Peak-Calf Canyon Fire told federal and state officials at a town hall meeting late last week that they are concerned about how much compensation is going to repair smoke and ash damage while many in the burn scar are still struggling to get back on their feet.

The Federal Emergency Management Agency is overseeing a $4 billion fund to compensate victims of the wildfire, caused by two botched prescribed burns that merged in April 2022, burning more than 530 square miles and several hundred homes. So far, the agency has spent about $554 million of the fund, a little more than 14%.

Gov. Michelle Lujan Grisham led a town hall meeting Thursday in Las Vegas to hear from survivors and to express cautious optimism that the federal agency had turned a corner after widespread frustration with delays and red tape. But multiple survivors who spoke up said they thought those who lost the most to the fire were not being prioritized.

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“There’s a lot of people in here angry that you have a formula for smoke damage and that’s brought up your numbers,” said survivor Jane Lumsden, referring to recent FEMA payouts. “But meanwhile, people who have lost everything still do not have money. There are many claims that are way past 180 days. People are waiting for their livelihoods.”

On March 14, the Hermits Peak-Calf Canyon Claims Office announced it would begin paying survivors to fix smoke and ash damage and discoloration, using a formula that pays a set amount per square footage in a smoke-damaged home based on proximity to the burn scar, plus additional payments for furniture replacement and other costs. The standard formula has allowed payments to proceed more quickly, the claims office has said. 

According to the latest figures from office spokesperson Deborah Martinez, FEMA has since paid 201 smoke damage claims totaling $21.3 million – an average of about $106,000 apiece. Another 265 claims are in the works, she said. 

At least four survivors who spoke up in front of Lujan Grisham mentioned the perception that smoke damage was being prioritized over lost homes, often drawing applause from the audience of more than 100 people in a lecture hall at New Mexico Highlands University. 

“You were getting pressure from politicians; you were getting pressure from fire victims; and you were getting a lot of pressure from the media, because the money wasn’t going out the door,” survivor Cyn Palmer said. “So you figured out a way to make it go out the door really freaking fast.”

Ben Krakauer, a senior adviser to FEMA administrator Deanne Criswell, sat alongside the governor and Ali Rye, the deputy secretary for New Mexico’s emergency response department. He said that the claims office has greatly increased payouts since January of this year after doubling the number of employees working for the office. 

He said the sharp increase in payouts for smoke damage is because the agency didn’t complete the policy until February. And he stressed that the office is making payments for those who lost their homes as its highest priority.

“I also want to talk about our operational priorities: No. 1 on that list are total-loss homes,” he said. “We are processing those every single day. I will say, often those claims are more complicated, which is why it takes a little bit longer to process those.”

Martinez, the claims office spokesperson, told Source New Mexico that the office has received 149 completed claims forms for homes that were totally destroyed in the fire or ensuing floods. Of them, the office has paid $31.8 million to 116 individuals or families, she said – about $274,000 on average. 

Krakauer said at the meeting that 190 homeowners whose homes were destroyed have stepped forward to seek claims so far, but it’s possible that there are more homeowners who have not yet come forward seeking compensation, he said. 

Laura Silva, whose children and grandchildren lost their home in the fire, said she personally knows of several elderly households in the burn scar living in substandard housing, awaiting compensation for months through cold winters and windy springs. 

“We’ve got elderly people living in travel trailers, living with relatives, their children, or homeless because they can’t get their claims taken care of,” she said.

Lujan Grisham asked Silva to reach out privately with more information to see if the state could assist. The governor took questions for nearly three hours, offering condolences to survivors and apologies for how long the recovery is taking. 

But she also said she’s seen improvements this year in the claims office, with money getting out the door and policies put in place to help claimants understand and navigate the process. 

“​​We’ve got a better operation at both the state level and the federal level for FEMA and moving those claims,” she said. ‘We’re feeling good about that. That does not mean that everyone is getting what they need.”