WASHINGTON, DC – Yesterday, Congressman Andy Kim (NJ-03) and Chairman Frank Pallone (NJ-06) introduced the Security After Sandy Act, a bill that would forgive debt owed to the federal government by homeowners recovering from Superstorm Sandy.
New Jersey is still recovering from two crises: the impact of COVID-19 on our state and the lingering effects of Superstorm Sandy," said Congressman Kim. "I'm proud to have fought for and won more than $12 million dollars in total loan forgiveness for several Ocean County towns and schools, and I won't stop fighting until every single homeowner in my district has the financial relief they need as well. I want to thank Chairman Pallone and our local officials throughout Ocean County who have all come together to craft this important bill. I know together, we'll fight to give all our neighbors the relief they need."
"As we approach the ninth anniversary of Superstorm Sandy, our fight remains as strong as ever for New Jersey's families who are still working to recover from the storm's devastation. Our communities and residents faced extraordinary financial strain because of this storm. The Security After Sandy Act will provide relief for families and New Jersey communities still working to recover from this disaster," said Congressman Pallone. "I want to thank Congressman Kim and Senator Menendez for their continued leadership on this critical piece of legislation."
The Security After Sandy Act contains two key provisions. First, it provides direct relief to communities by forgiving all Community Disaster Loans (CDLs) from January 1, 2006 to January 1, 2021, which includes all Superstorm Sandy loans. The CDL program supports local governments grappling with significant tax and other major revenue losses after major disasters, but repaying these loans became an additional challenge for local governments struggling with reduced revenue as a result of COVID-19. Through the efforts of Congressman Kim and the New Jersey delegation, this portion of the bill was passed into law earlier this year, including forgiveness of $25.9 million for local governments in New Jersey.
The second key provision of the bill helps New Jersey homeowners forced to pay back aid that was disbursed in the aftermath of Superstorm Sandy by stopping any further recoupment efforts for debt owed to the federal government in relation to Superstorm Sandy or any other major declared disasters between 2006 and 2021. These recoupment efforts, also known as "clawbacks", have blindsided many, because it was under the federal government's own recommendation that many New Jersey residents applied for loans and benefits offered by various federal programs without clear guidance on repayment terms and contingencies.
The bill is cosponsored by Congresswoman Bonnie Watson Coleman (NJ-12), Congressman Jeff Van Drew (NJ-02), Congressman Donald Payne, Jr. (NJ-10), Congressman Tom Malinowski (NJ-07), and Congressman Albio Sires (NJ-08). Senator Bob Menendez (D-NJ) previously led companion legislation in the Senate.
The full bill text can be here.
Original source found here.
