Deal also allows state to use $380 million in flood resilience projects
Washington, DC - Representatives Frank Pallone, Jr. (NJ-06), Bonnie Watson Coleman (NJ-12), Andy Kim (NJ-03), and Bill Pascrell (NJ-09) today announced a two-year delay in recoupment efforts for debt owed to the federal government in relation to Superstorm Sandy has been included in the Omnibus Fiscal Year 2022 package. These recoupment efforts known as “clawbacks” have blindsided homeowners because many New Jersey residents applied for loans and benefits offered by various federal programs at the recommendation of the government. The reprieve provides temporary relief for up to 1,813 households in New Jersey that currently owe $73 million.
“New Jersey families were decimated by Superstorm Sandy and are still on the hook for millions of dollars in federal clawbacks through no fault of their own. A two-year delay in recoupment of these funds will help hundreds of New Jersey families. My colleagues and I will continue fighting for full relief,” said Congressman Pallone. “I’m thankful that Governor Murphy has already frozen recoupment of these funds at the state level. I’m going to continue fighting for Sandy survivors and New Jersey homeowners so we can eliminate these clawbacks altogether.”
The two-year delay pushes the deadline back for recoupment from 2023 to 2025 and will provide relief for families currently required to pay back disaster relief funds they received after Superstorm Sandy. Many homeowners who received relief funds have been required to repay some or all the funds, creating a financial burden during the economic crisis. The delay also gives New Jersey the flexibility to complete Rebuild by Design flood mitigation projects in Hoboken, Jersey City, Weehawken, and the Meadowlands. After Hurricane Sandy, the U.S. Department of Housing and Urban Development granted New Jersey $230 million in federal funds for the Hudson River Flood-resilience project and $150 million for the New Meadowlands Flood-resilience project. This two-year extension allows the state to put shovels in the ground and help New Jersey prepare for future storms.
“America came together after Superstorm Sandy to help New Jerseyans through a very dark period,” said Congresswoman Watson Coleman. “Now a decade later, some families face the prospect of having to pay back money that was erroneously given to them through no fault of their own, even when the family member who received them has passed away, their home was foreclosed upon, or they filed bankruptcy. While I’m grateful New Jersey residents will receive another two-year reprieve, I won’t be satisfied until our families receive complete forgiveness so they can finally put the lingering pain of Sandy behind them.”
“I’m proud to have fought for and won two years of additional relief for Jersey Shore homeowners in this year’s government spending package,” said Congressman Kim. “It’s been over nine years since Superstorm Sandy devastated our communities. This relief is an important step in our recovery, but I won’t stop fighting until we pass our Security After Sandy Act to make this relief permanent.”
“Even though it has been almost ten years, the wounds left by Hurricane Sandy on New Jersey remain raw,” said Congressman Pascrell. “Today Garden Staters are still recovering both emotionally and financially from the storm. Seeking repayment from many of them just as our state is beginning to find normalcy from the pandemic has always been unwise and unwarranted. Thanks to the leadership of Chairman Pallone, Congressman Kim and Congresswoman Watson Coleman, our congressional delegation has come together to help give our neighbors flexibility and peace of mind that they will not face another crushing financial burden. Putting this temporary reprieve into law is a major and welcome step.”
“We are grateful for Congressman Pallone’s hard work in getting CDBG-DR funding extended for a few more years, giving us a chance to once again push for clawback forgiveness and give Sandy families closure,” said Jody Stewart, Organizer for New Jersey Organizing Project.
Original source can be found here.
