On July 30, 2013, the federal government issued a notice in
response to the various requests from the Christie Administration to allow for
reimbursement of homeowners and landlords of costs they have already undertaken
to rebuild, repair and mitigate their homes, or rental properties.
The notice provides guidance to recovery programs funded by
the federal government through the Community Development Block Grant Disaster
Recovery (CDBG-DR) grants. The Department of Community Affairs (DCA) will
issue additional guidelines and procedures in the coming week to ensure the
maximum benefit is applied to New Jersey’s Sandy-impacted households and
ELIGIBLE HOUSING PROGRAMS:
Reconstruction, Rehabilitation, Elevation and Mitigation (RREM):
Reimbursement will now be considered for all eligible RREM applicants
regardless of level of property damage.
§ Landlord Rental Repair Program (LRRP): Reimbursement
will now be considered for all eligible applicants of LRRP regardless of the
level of property damage and regardless of the number of units.
GUIDANCE FOR HOMEOWNERS AND RENTAL PROPERTY OWNERS
THAT HAVE ALREADY STARTED WORK ON THEIR PROPERTY:
State is still currently restricted by the federal government on reimbursement
of costs incurred after the Time of Application; therefore, continuing with
work after an application has been submitted will likely make that work
ineligible for the grant funds.
landlords and businesses are advised that it is their choice to continue work;
however, it is in their best interest to stop ongoing construction and repairs
in order to maximize the costs that CAN be covered by the grant funds.
is a decision for homeowners, landlords and businesses to make, and this
guidance is only to alert them of the risks associated with a decision to
rental property owners and businesses that have started work are advised to
keep all receipts of money spent to date on activities related to the rebuild,
repair and mitigation of their property for possible reimbursement.
GENERAL GUIDANCE FROM THE FEDERAL GOVERNMENT:
reimbursement of eligible costs as a result of Sandy that were incurred by an applicant PRIOR to the TIME OF
Before any CDBG-DR funds can be provided for reimbursement to the
applicant, an environmental review must be completed and cleared by the
Costs must be considered within federal guidelines as “necessary and
reasonable” for federal program funds.
Limited to properties where work has been done on the same footprint as
Due to limited federal funding, it is unlikely that even
with an additional allocation that every RREM awardee will receive an award,
even if New Jersey receives additional funds from the federal government.
Therefore, those who are waitlisted should be guided by that fact as they
choose whether or not to begin to repair or reconstruct their Sandy-damaged