HUD approves state’s Sandy recovery plan

Christie’s $1.83B plan allots funds for rebuilding, buyouts, low-interest loans

BY KENNY WALTER
Staff Writer

 Gov. Chris Christie Gov. Chris Christie The state’s plan to provide $1.83 billion to homeowners and business owners whose recovery efforts remain stalled six months after superstorm Sandy was greenlighted by the U.S. Department of Housing and Urban Development (HUD) on Monday.

Gov. Chris Christie announced during an April 29 press conference at Bahr’s Landing in Highlands that HUD approved the state’s proposal for grant funding aimed at providing money for homeowners and businesses to rebuild.

“We have a lot of work to do; we know there are a lot of unmet needs, unanswered questions and unfulfilled aspirations,” Christie said. “This is not a victory lap; we are going to do the job the right way.” According to a press release from the governor’s office, the grants will be allocated in the form of Community Development Block Grants (CDBG), and the state’s recovery action plan allocates more than 55 percent of the funding to low- to moderate-income housing.

The HUD funding provides $600 million for reconstruction, rehabilitation, elevation and mitigation of storm-damaged properties, with individual homeowners eligible for up to $150,000.

Of the $1.83 billion, $179 million will be used to provide zeroand low-interest loans of up to $120,000 per unit to qualified developers and public housing authorities to facilitate the creation of new permanent housing units.

A “significant portion” of the funds will be used to assist in the development of new, permanent and supportive housing for individuals with special needs, according to the press release.

The plan also includes $180 million for buyouts for homeowners considering selling or abandoning their properties, $25 million for special-needs resident housing options, $70 million for the rehabilitation of small rental properties, and an additional $40 million in funding for property owners who lease their units to low- and moderate-income households as affordable units.

Small businesses that sustained physical damage will be able to apply for grants of up to $50,000. These grants can be used for rehabilitation, new construction, equipment, inventory, mitigation, refinancing and working capital, among other uses, the press release states.

The funding will also provide up to $5 million in no-interest loans to small businesses that suffered physical damage.

The plan also includes an unspecified amount of funding for public infrastructure improvements and a tourism marketing campaign.

HUD Secretary Shaun Donovan said at the press conference that the aim of the Sandy funding is not only to rebuild what was damaged during the storm, but also to strengthen the coastline to prevent future storm destruction.

“Today we mark the six-month anniversary of Sandy,” he said. “We will come back as often as we need to come back until this town, this shore, this state and this entire region are rebuilt better than they were before the storm.”

“We need to make sure that we are rebuilding not just what was here before, but safer, smarter, stronger,” he added. “We have to make sure that the next time that Sandy comes, this town, this business, this entire region are ready.”

Donovan estimated that for every $1 the federal government spends to help elevate a home or a business owner to mitigate storm damage, the government saves $4 in the long term.

According to Christie, the Department of Community Affairs will begin accepting applications for the grants in May.

“This is a grant program for unmet needs, so we are going to need to see what insurance monies you got, what money you got from FEMA [Federal Emergency Management Agency] and verification of your damages,” he said. “It is going to be a detailed application process.”

However, Christie said he expects the applications for businesses to be available sooner than the homeowners and renters.

“I think you’ll see the application process begin this week,” he added. “Hopefully we’ll have money flow out by the end of May.”

Christie said the state comptroller’s office will build a website that identifies and tracks every dollar of state and federal monies spent.

“There is no question that there will be problems that come up that we didn’t anticipate,” Christie said. “We’re talking about a huge undertaking to be able to rebuild a state of our size and our density.

“We are not going to be able to address every one of them, but we are going to be able to address a lot more of them than you think.”

According to Donovan, $600 million from FEMA and $700 million from the U.S. Small Business Administration (SBA) have already been funneled through the state.

“It means that even though flood insurance may not have helped them get back in their home, or FEMA because of the limit of $32,000 that a family could get,” he said. “What this announcement today means is that they have hope of getting back in their house very soon.”

He also said the funding will facilitate the recovery of businesses.

“It means they will finally be able to open their doors and start hiring people,” Donovan said. “As these businesses open stronger than ever, the main streets and boardwalks will begin to resemble the pictures of them we have etched in our minds, just in time for summer.”

Donovan explained certain regulations and processes were streamlined to expedite the rebuilding process.

He also said HUD and the state will use pre-existing registration information from FEMA and the SBA.

“We don’t want to make those folks go through unnecessary paperwork, so we are taking all that information and working with Governor Christie’s team,” he said.

“There is a lot of red tape, a lot of duplication of rules and regulations,” he added. “If we can wipe them out, it helps us rebuild more responsibly.”

Donovan suggested that for certain projects the grant money could be combined with other funding sources, including the Army Corps of Engineers.

According to Christie, HUD’s approval does not mean the state is fully recovered from Sandy.

“So one of the things that I want people to understand today is, we are not here to take a victory lap, because we know that we haven’t achieved victory yet,” he said. “We will continue to work as hard as we need to work to make sure your life is getting back to normal too.”

Donovan also said the state is going to receive additional funding in the coming months.

“This is the first piece of New Jersey’s plan. It is $1.8 billion, so it’s substantial, but there is more money available,” he said.