Sandy program could see more funding due to application volume

By ADAM C. UZIALKO
Staff Writer

LINCROFT – State officials hosted a public hearing on a plan to provide more funding for a superstorm Sandy recovery program that was launched last year.

Representatives of the state Department of Community Affairs (DCA) and the Governor’s Office of Recovery and Rebuilding took questions at Brookdale Community College as part of a procedural step toward gaining approval for $29 million in additional funds for the Low-to-Moderate Income Homeowner’s Rebuilding Program (LMI program).

“The [amendment] we’re talking about today proposes transferring $29 million from three programs that have largely run their course,” Terrence Brody, executive director of the Governor’s Office of Recovery and Rebuilding, said. “[It’s] based on the fact that we had a pretty good application rate for that program, and we want to make sure that we can fund all of the eligible folks who applied.”

During the application period, which closed in March, 538 homeowners were approved out of the 1,000 who applied. According to Lisa Ryan, a spokeswoman for the state DCA, the state does not have any plans to reopen the application process to additional homeowners.

“The three programs identified for transfer of the money didn’t really have a need for it anymore,” Ryan said. “They had met their obligations.

“There is no plan to reopen [the application process] at this point,” she added. “It’s just for the original applications that were accepted.”

The additional funding includes $10 million from the Homeowner Resettlement Program, $10 million from the Neighborhood Enhancement Program and $9 million from the Essential Services Grant Program. If the transfer is approved, those programs would still hold $205 million, $40 million and $136 million, respectively, while the LMI Program would increase from $40 million total to $69 million.

The LMI program, funded through federal Community Development Block Grants awarded by the U.S. Department of Housing and Urban Development, is designed to provide additional support for the reconstruction or elevation of Sandy-damaged homes for the following groups of residents: those who did not apply to the Reconstruction, Rehabilitation, Elevation and Mitigation (RREM) program; who have a limited understanding of the English language; or who own a manufactured home.

Loretta Dibble, who was in attendance as a representative of the Manufactured Homeowners’ Association of New Jersey, said she was concerned that many members of her organization were denied approval into the LMI program.

“People were improperly denied or just abandoned the applications,” Dibble said, recalling several anecdotes of experiences members of her organization have had. “Of the 1,000 who applied, how many were denied just for procedural reasons?”

Dibble said she hoped the additional funding would allow for those who were denied based on procedural grounds to get a second look, but Ryan said that was not part of the “Action Plan amendment” to the LMI program. Dibble added she would like to see the $9 million slated for transfer from the Essential Services Grant Program remain as well, citing “so many other pots of money” being used as incentives for developers.

The public comment period closes on August 4. Comments can be submitted via email: [email protected].

Following the closure of the public comment period, the state will compile and analyze all of the comments received and send the report to the U.S. Department of Housing and Urban Development for final approval of the action plan amendment.