by Brianna Crandall — May 3, 2013—Building owners and managers in New Jersey may have been waiting to hear U.S. Housing and Urban Development (HUD) Secretary Shaun Donovan’s announcement on April 29 of HUD’s approval of New Jersey’s disaster recovery plan to help homeowners and businesses following Hurricane Sandy. Funded through HUD’s Community Development Block Grant (CDBG) Program, New Jersey’s action plan calls for a $1.83 billion investment to support the long-term process of rebuilding damaged housing, restoring infrastructure, and stimulating business activity and job growth.
“This CDBG funding will help elevate homes to avoid future floods, provide grants for hard hit small businesses that cannot take on more debt, and help the Jersey Shore rebuild for tourism season,” said Senator Robert Menendez (D-NJ). “It is gratifying to see state, federal, and local partners come together to create a strong plan for our recovery. I look forward to continuing to work with all stakeholders to rebuild New Jersey better and stronger than ever.”
On January 29, President Obama signed the Disaster Relief Appropriations Act of 2013 into law, providing a total of $16 billion in CDBG Disaster Recovery funding. HUD quickly allocated $5.4 billion to five states (including New Jersey) and New York City. New Jersey submitted its required action plan describing how the funds will be used on March 27, and HUD conducted an expedited review to enable the state to access these funds as quickly as possible.
CDBG Disaster Recovery funding gives grantees significant flexibility in determining how best to use their funds to meet the greatest unmet needs. In general, the funds are intended for the restoration of housing and infrastructure as well as economic revitalization in disaster-impacted areas. The funds are to meet recovery needs that are not otherwise covered by other federal assistance, private insurance, or other sources.
The New Jersey plan offers a range of programs to provide relief to homeowners of damaged or destroyed properties as well as grants and low-cost loans to eligible small businesses. These programs provide more than $1 billion in various housing programs; $200 million for economic revitalization; and $225 million for infrastructure and public service programs.
