Despite billions of dollars in federal assistance that has been allocated to New Jersey since superstorm Sandy, officials say the state still faces unmet needs of more than $19 billion.
The large majority of that need — an estimated $17.3 billion — stems from damaged and vulnerable infrastructure,
However, the state plans to allocate half of the next round of Community Development Block Grant-Disaster Recovery (CDBG-DR) funds to homeowners and renters.
More than one-quarter of the $1.46 billion allocation will go into the Reconstruction, Rehabilitation, Elevation and Mitigation (RREM) Program, which was established last year and has so far awarded grants to only 5,100 of the more than 12,000 households that applied. Marc Ferzan, executive director of the governor’s Office of Recovery and Rebuilding, said the long waitlist for RREM funds and the unmet needs of homeowners and renters must be balanced with the need to repair and protect infrastructure.
“Demand for the existing [housing] programs funded with first-tranche CDBG moneys has far outpaced available funding,” Ferzan said during a Feb. 3 teleconference.
“We have very difficult decisions to make in terms of allocating the $1.4 billion that has been made available to us.”
Housing needs were a priority for the first round of CDBG funds, a $1.83 billion allocation from the U.S. Department of Housing and Urban Development (HUD) that began flowing into the state last May. State officials say nearly 90 percent of those funds have since been awarded or are “in the pipeline” for being awarded.
Even with millions more in Federal Emergency Management Agency (FEMA) mitigation grants, state officials say New Jersey’s need far outpaces currently available funding. The state suffered an estimated $36.9 billion worth of damage during the Oct. 29, 2012, storm.
When HUD announced this latest round of funding in late October, the department required the state to address the substantial infrastructure needs facing New Jersey through rebuilding, mitigation and the use of scientific risk analysis to account for sea level rise and other future risks.
In response, the state has allocated $535 million in CDBG funds for infrastructure needs, including $210 million for the creation of a New Jersey Energy Resilience Bank. The bank, according to state officials, would fund projects that protect and provide redundancy to systems that power critical infrastructure such as water and wastewater treatment plants, hospitals, shelters, emergency response centers and transit networks.
Another $225 million would be allocated to help government entities meet federal funding match obligations for Army Corps of Engineer projects and other large-scale initiatives to repair or construct roads, bridges, levees, public buildings, sand dunes, beaches, telecommunication systems and recreational facilities.
An additional $100 million would go toward the new Flood Hazard Risk Reduction and Resiliency Measures Program, which seeks to protect vulnerable communities by funding the construction of flood walls, pump stations, wetlands restoration, permeable pavement, rain gardens and bio-retention basins.
Ferzan acknowledged that the allocated funds would not come close to addressing all of the infrastructure needs in New Jersey, but said the needs of homeowners and renters must continue to be addressed as well.
“We would love to see this funded more in the third round,” he said, referring to the risk reduction and resiliency program. “$100 million isn’t nearly enough. But we’re excited to be able to start addressing some of these needs to not just rebuild, but to build in resiliency to a higher standard.”
The third and final round of CDBG-DR funding has not yet been announced by HUD, and Ferzan said there is a chance most or all of it could go toward the Rebuild by Design competition currently being run by the department.
The new action plan also allocates $200 million to restore multifamily housing in the state, $100 million for the state’s Blue Acres property buyout program and $25 million to create permanent affordable housing for special needs populations.
Another $20 million has been set aside for the Neighborhood Enhancement Program, which according to state officials helps “stabilize storm-damaged neighborhoods that were previously struggling under the burden of abandoned, foreclosed and vacant properties.”
The action plan is now subject to a 30- day public comment period, and the state has scheduled three public hearings in north, central and southern New Jersey. Residents interested in commenting on the plan can attend the Monmouth County hearing on Feb. 13 at Brookdale Community College’s Robert J. Collins Arena in Lincroft from 4-7 p.m.
Written responses can be sent by email to [email protected] or by mail to the N.J. Department of Community Affairs, 101 South Broad St., Post Office Box 800, Trenton, NJ 08625-0800. All comments must be submitted by 5 p.m. March 5.
Following the comment period, HUD will have 60 days to approve, reject or request revisions to the plan.