Pallone and 25 Mayors Call on HUD Secretary Donovan to Keep Sandy Aid in New Jersey

WASHINGTON, D.C.—Congressman Frank Pallone, Jr. (NJ-06) led an effort by 25 of New Jersey’s Sixth Congressional District mayors to call on U.S. Housing and Urban Development (HUD) Secretary Shaun Donovan to reject a reported plan to divert funds from the Sandy relief package to other regions of the country. The 25 mayors represent some of the hardest hit areas affected by the Superstorm.

The potential HUD plan could result in the creation of a competitive grant program, allowing regions affected by other disasters to compete for dollars from the Sandy aid package. Pallone has previously called on the HUD Secretary to abandon the proposed plan, which could result in the loss of more than $1 billion intended for Sandy victims. Pallone led Members of the New Jersey Congressional Delegation in a letter to Secretary Donovan informing him of their concern for the proposal and joined a meeting with other New Jersey Members of Congress where he and others voiced their strong opposition to the Sandy relief diversion plan, noting that it was premature to draw funds from Sandy victims when so many had not yet received the dollars that had been promised to assist in recovery.

Pallone noted the strong opposition of the mayors throughout the Sixth Congressional district, all of whom have firsthand knowledge of the specific recovery needs of their regions in a cover letter addressed to Secretary Donovan.

The following is the text of both letters:


May 22, 2014

The Honorable Shaun Donovan
Secretary
United States Department of Housing and Urban Development
451 Seventh Street, SW
Washington, DC 20410


Dear Secretary Donovan,

Attached, please find a letter from 25 mayors from the 6th Congressional District of New Jersey regarding reports that Community Development Block Grant – Disaster Recovery funds will be diverted out of the Sandy-affected region. I previously wrote to you with my colleagues in the New Jersey Congressional delegation strongly opposing any plan to divert these funds outside of the Sandy-affected region.

As you can see, local elected officials in New Jersey share my concern as they struggle to rebuild and recover from Superstorm Sandy. We hope that you reconsider any plan to shift these funds to other regions of the country. Thank you.

Sincerely,
FRANK PALLONE, JR.
Member of Congress



May 22, 2014

The Honorable Shaun Donovan
Secretary
United States Department of Housing and Urban Development
451 Seventh Street, SW
Washington, DC 20410


Dear Secretary Donovan,

We write today regarding the Department of Housing and Urban Development’s (HUD) plans for allocation of the third tranche of Community Development Block Grant – Disaster Recovery (CDBG-DR) funds. Recent press reports have cited sources within HUD who have stated that there are plans to hold a national resiliency competition that could divert to other regions of the country more than $1 billion in funds meant for Sandy victims.

We strongly urge you to reject this misguided proposal. The communities we represent are still struggling to recover from the devastation of Superstorm Sandy and until our needs are met it is inappropriate and cruel to discuss redirecting recovery dollars meant for Sandy victims to other parts of the country. Thousands of New Jersey homeowners remain waitlisted for grants to lift their homes, while small businesses in our communities are shutting their doors and struggling to rebuild.

Congressman Frank Pallone, Jr. has called on HUD to reject this plan for a national resiliency competition and – as local elected officials representing those struggling to rebuild –we join his call for this critical recovery aid to remain in the Sandy-affected region. The State of New Jersey’s recently amended CDBG-DR Action Plan cites $1.6 billion in unmet housing needs, $17 billion in unmet infrastructure needs, and $241 million in unmet economic development needs. These are not just numbers to us. They represent the local citizens who we serve and are still displaced from their homes, struggling to pay a mortgage on a home they cannot live in or afford to repair. We all recognize the importance of preparing for the next storm; however, we cannot move on from Sandy and leave so many New Jersey families without assistance.

Sincerely,

Mayor Fred Tagliarini

Aberdeen

Mayor David McLaughlin

Allenhurst

Mayor Myra Campbell

Asbury Park

Mayor Frederick Rast

Atlantic Highlands

Mayor Daniel Reiman

Carteret

Mayor Thomas Lankey

Edison

Mayor James DiNardo

Hazlet

Mayor Frank Nolan

Highlands

Mayor Arthur Boden

Keansburg

Mayor Harry Aumack

Keyport

Mayor Paul Fernicola

Loch Arbour

Mayor Adam Schneider

Long Branch

Mayor Paul Buccellato

Matawan

Mayor Stephanie Murray

Middletown

Mayor Susan Howard

Monmouth Beach

Mayor James Cahill

New Brunswick

Mayor Michael Mahon

Oceanport

Mayor Wilda Diaz

Perth Amboy

Mayor Brian Wahler

Piscataway

Mayor Kennedy O’Brien

Sayreville

Mayor Dina Long

Sea Bright

Mayor Fred Henry

South Amboy

Mayor Matthew Anesh

South Plainfield

Mayor Paul Smith

Union Beach

Mayor John McCormac

Woodbridge

Pallone Calls on HUD to Require Transparency, Accountability in State Distribution of Sandy Funds

Letter highlights racial, income disparities and inequities in NJ vs. NY funding levels

WASHINGTON, D.C. – Today, Congressman Frank Pallone, Jr. (NJ-06) sent a letter to U.S. Department of Housing and Urban Development (HUD) Secretary Shaun Donovan regarding the agency’s review of the State of New Jersey’s Community Development Block Grant – Disaster Recover (CDBG-DR) Action Plan amendment. The amendment, released in February, details how the state plans to spend $1.46 billion in federal Sandy recovery funds. In the letter, Congressman Pallone outlined several concerns regarding the distribution of aid and urged Secretary Donovan to ensure that the funds are distributed fairly, swiftly, and transparently by the state of New Jersey.

Pallone stressed the importance of ensuring that financial assistance reaches New Jerseyans who need it most. The Sandy Aid package, passed by Congress in January 2013, requires that 50% of CDBG-DR funds be used for activities that benefit persons of low and moderate income. Pallone requested that HUD require that the state take action to ensure that aid is being properly administered to low and moderate income residents and without racial disparities. Additionally, Pallone asked that homeowners who apply for a grant under the State’s Reconstruction, Rehabilitation, Elevation and Mitigation (RREM) program be reimbursed for work they undertake while waiting for the necessary funds to be allocated to them.

Pallone also urged HUD to compel the state of New Jersey to make the criteria and guidelines being used to rank grant applications available to the public. Many of his constituents are frustrated that they have not even been able to learn the status of their application to a particular program. Pallone stressed the need for applicants to have access to timely information regarding recovery programs, as well as the status of their requests.

“New Jerseyans were promised help when Sandy destroyed their homes and businesses, and access to the critical recovery programs funded through Community Development Block Grants is instrumental to delivering on that promise. Unfortunately, New Jerseyans have been facing road blocks instead of a straightforward process,” said Pallone. “There is more that must be done in order to ensure that this next round of federal funding is spent fairly, efficiently, and gets to the families that need it most.”

Pallone also requested clarification from HUD on the criteria used to determine the funding levels for areas still working to recover from Superstorm Sandy. Specifically, Pallone asked for an explanation as to why the second allocation for the entire state of New Jersey is only slightly higher than the allocation for New York City alone. Congressman Pallone, whose district suffered some of the worst damage from Superstorm Sandy, requested that the methodology by which these allocations were determined also be made public.

Below is the full text of the letter:

March 26, 2014

Honorable Shaun Donovan
Secretary
U.S. Department of Housing and Urban Development
451 7th Street SW
Washington, DC 20410

Dear Secretary Donovan,

I write today regarding the Department of Housing and Urban Development’s (HUD) review of the State of New Jersey’s Community Development Block Grant – Disaster Recover (CDBG-DR) Action Plan amendment. Before you approve the second round of CDBG-DR funds for the State of New Jersey, I ask that you carefully consider some of the concerns I outline in this letter.

The Sandy Aid package requires that 50% of CDBG-DR funds be used for activities that benefit persons of low and moderate income. Concerns have been raised that not enough emphasis has been placed on ensuring Sandy recovery funds get to those that need financial help the most. An analysis by the Fair Share Housing Center in New Jersey found that only 37 percent of resettlement grants awarded in New Jersey were awarded to low and moderate income households. HUD must review the state’s needs assessments and determine that New Jersey is properly administering its aid programs with respect to low and moderate income residents. This should also include a greater emphasis on financial assistance to low and moderate income renters. I am also concerned with potential racial disparities in the aid distribution process. Analyses show that black and Hispanic citizens were more likely than whites to get rejected by the State’s Reconstruction, Rehabilitation, Elevation and Mitigation (RREM) program and Resettlement program. This inequity should be corrected as the second tranche of CDBG-DR funds are allocated.

HUD should review the New Jersey CDBG-DR Action Plan amendment to determine if the state has set forth comprehensive information regarding the policies and procedures guiding recovery programs. HUD guidance states that “During the term of the grant, the grantee must provide citizens, affected local governments, and other interested parties with reasonable and timely access to information and records relating to the Action Plan and to the grantee's use of grant funds.” My constituents need to know exactly what the eligibility criteria are for these grant programs, as well as the process for being approved, placed on the waiting list and appealing a denial of their application. Many of my constituents are extremely angry that they have not been able to learn the status of their application to a particular program, and that clear guidelines for grant programs administered by the state are difficult to locate. Further, the State has not publicized its criteria or methodology for ranking the applications it received, and I believe the State should be compelled to do so. A greater focus on accountability and transparency is critical as the second round of CDBG-DR funds are distributed in New Jersey.

My staff has had lengthy discussions with HUD staff regarding your agency’s rejection of New Jersey’s request to reimburse rehabilitation expenses for applicants to the state’s RREM program. I understand that HUD must comply with the National Environmental Policy Act (NEPA), however my staff has asked whether it is possible to “stop the clock” and disallow work to continue only once a homeowner enters into an agreement with the State and funds are actually allocated to them. Homeowners are barred from being reimbursed for work on their home from the moment they apply, when there is still uncertainty around whether they will truly be allocated funding. It is possible their application could be denied, or they could be placed on a waiting list for funding only to find out down the line that the state does not have the funding available to assist them. Additionally, I would like clarification as to whether homeowners can be reimbursed for work they undertake after they receive an environmental review from the appropriate state agency, but before their application is formally approved.

I also request detailed information on the criteria used for determining the funding allocations for New Jersey, New York, New York City and other grantees working to recover from Superstorm Sandy. The second allocation for the entire state of New Jersey, $1.463 billion, is only slightly higher than the allocation for New York City alone. Given the tremendous challenge New Jersey faces rebuilding from this catastrophic storm, I believe it is important that the methodology by which these allocations were determined be made public.

I would like to invite you to New Jersey to meet with mayors and other elected officials in my Congressional District who have been on the front lines of the recovery effort in New Jersey. Elected officials in my district are frustrated and angry with the aid distribution process and I believe their perspective will be valuable as HUD continues to review and oversee New Jersey’s usage of CDBG funds.

As you know, my district suffered some of the worst damage from Hurricane Sandy. The second allocation of CDBG-DR funding to the State of New Jersey is critical to our rebuilding effort. It is our responsibility to ensure the funds are distributed fairly, swiftly, and transparently. Please do not hesitate to contact me if I can be of assistance in any way.

Sincerely,


FRANK PALLONE, JR.
Member of Congress
6th District of New Jersey

Pallone Calls for Investigation into Christie’s Misuse of Disaster Aid for Political Gain

Long Branch, NJ – Congressmen Frank Pallone, Jr. (NJ-06) today called for an investigation into the contract and bidding process used by Governor Chris Christie for the marketing campaign to promote the Jersey Shore and encourage tourism. While the Congressman supports the campaign, he questions whether Governor Christie took advantage of the federal funds for his personal political gain.

In a letter to the Inspector General of the U.S. Department of Housing and Urban Development, Pallone questions the Governor’s decision to award the contract to a bidder that cost the state $2.2 million more than a comparable firm’s proposal. These taxpayer-funded television ads feature the Governor and have been aired in New Jersey and surrounding states during his reelection cycle. However, the proposal from the less expensive firm that was not chosen during the bidding process did not propose featuring the Governor in the ads.

“The fact that this particular proposal was chosen despite an obvious conflict of interest, in addition to the higher costs, raises serious concerns with the entire process. I fought hard for passage of the Sandy aid package in Congress by assuring our colleagues that this funding was critical to our recovery and that it would be spent responsibly without waste, fraud and abuse,” wrote Pallone in the letter.

Had Governor Christie chosen the less expensive firm, $2.2 million in federal disaster aid could have potentially been directed elsewhere, for example, to provide 44 Sandy impacted homeowners $50,000 grants to raise their homes.

Full text of the letter follows:

David A. Montoya
Inspector General
U.S. Department of Housing and Urban Development
451 7th Street, SW
Washington, DC 20410
August 8, 2013

Dear Inspector General Montoya,

I write to you today regarding the State of New Jersey’s Community Development Block Grant Disaster Recovery (CDBG-DR) Action Plan. The Department of Housing and Urban Development (HUD) provided a waiver for the state to spend $25 million of its CDBG award on a marketing campaign to promote the Jersey Shore and encourage tourism. While promoting tourism at the Jersey Shore in the wake of Hurricane Sandy is certainly a worthy endeavor, recent reports have led me to believe that the state has irresponsibly misappropriated funding allocated by Congress from the Sandy aid package and taken advantage of this waiver for political purposes. I respectfully request that you review and investigate the contract, bidding process utilized by the State of New Jersey, and appropriateness of the content of this marketing campaign.

Recently released documents relating to the bidding process and contract award for this marketing campaign show that the contract was awarded to a firm that is charging over $2 million more than the next lowest bidder to develop the marketing plan. The winning firm is being paid $4.7 million for their work, while a comparable firm proposed billing the state $2.5 million for similar work. This large discrepancy between the competing proposals raises concerns as to whether these federal funds are being spent in the most cost effective manner, and should be reviewed by your office.

I am also concerned that the winning bid proposed including Governor Chris Christie in the advertisements, while the lower cost proposal that was not selected did not. As you know, the Governor is running for reelection this year in a high profile race. It is inappropriate for taxpayer-funded dollars that are critical to our state’s recovery from this natural disaster to fund commercials that could potentially benefit a political campaign. In these sensitive circumstances, even the appearance of a conflict of interest should be avoided.

The fact that this particular proposal was chosen despite an obvious conflict of interest, in addition to the higher costs, raises serious concerns with the entire process. I fought hard for passage of the Sandy aid package in Congress by assuring my colleagues that this funding was critical to our recovery and that it would be spent responsibly without waste, fraud and abuse. Many in Congress objected to this funding precisely because of concerns their citizens’ tax dollars would be misspent. In that regard, the state’s mismanagement of taxpayer funds for this marketing campaign is extremely troubling, especially when there are so many New Jersey residents still in need of assistance to recover and rebuild from this historic storm.taxpayer

Once again, I ask that you investigate the state’s actions regarding this contract selection process, the appropriateness of the Governor appearing in taxpayer-funded advertisements in an election year, and report back to Congress with your findings. We must ensure all taxpayer funds from the Sandy aid package are being spent appropriately. Thank you for your attention to this important matter.


Sincerely,

FRANK PALLONE, JR.
Member of Congress

New Jerseyans Deserve Grants They Were Promised

In Letter to HUD, Pallone Calls for Changes to Policies Keeping New Jerseyans from CDBG Grants

Long Branch, NJ – In a letter sent today, Congressman Frank Pallone Jr., (NJ-06) called for U.S. Department of Housing and Urban Development (HUD) Secretary Shaun Donovan to resolve two roadblocks New Jerseyans are facing in obtaining Community Development Block Grant (CDBG) funding from the Sandy aid package.

“New Jerseyans were promised help when Sandy destroyed their homes and businesses, and access to the Community Development Block Grants is instrumental to delivering on that promise. Unfortunately, New Jerseyans are facing road blocks instead of a straightforward process,” said Pallone. “Changes must be made immediately to ensure New Jerseyans won’t have to further delay their recovery, or in the worst case scenario, give up their life savings as a result of an unfair policy.”

Full text of the letter follows:

July 12, 2013 

Honorable Shaun Donovan
Secretary
U.S. Department of Housing and Urban Development
451 7th Street SW
Washington, DC 20410


Dear Secretary Donovan,


I write today regarding issues homeowners in New Jersey are facing with eligibility for Community Development Block Grant (CDBG) funding from the Sandy aid package. Availability of this funding to homeowners who face serious rebuilding costs is crucial to a robust recovery in New Jersey.

In New Jersey, many homeowners were told they could begin the process of rebuilding and repairing their home and that the funds spent for these purposes would be eligible for reimbursement with federal CDBG funds provided to the state of New Jersey. However, some homeowners are now being told that money spent on repairs cannot be reimbursed because of a HUD regulation requiring environmental reviews for homes that sustained damage in excess of 50% of the property’s value. I ask that you review and reconsider this requirement so that homeowners who made repairs in good faith can receive the federal assistance they deserve. 

Another issue that has been brought to my attention relates to homeowners who applied for Small Business Administration (SBA) loans. New Jersey homeowners are being told that they are not eligible for CDBG assistance if they applied for a SBA loan, even if they ultimately did not accept the loan. After Superstorm Sandy hit, SBA encouraged homeowners to apply for loans even if they were not certain if they wanted a loan. Many New Jersey residents could not afford to repay the terms of a loan and therefore desperately need the assistance being offered through CDBG grants. I do not see this as a duplication of benefits in any way and I ask that you work with SBA to ensure New Jersey homeowners who didn’t accept loans are eligible for CDBG grants. 

Thank you for your attention to these important issues that are central to the rebuilding process in New Jersey. I look forward to working with you to ensure all New Jersey residents have the resources they need to rebuild from this storm.


Sincerely,

FRANK PALLONE, JR.
Member of Congress

Pallone Announces CDBG Disaster Recovery Grants to Asbury Park, Keansburg

Washington, DC – Today, Congressman Frank Pallone, Jr. (NJ-06) announced $350,000 to the city of Asbury Park and $271,413 to Keansburg in Community Development Block Grant Disaster (CDBG) Recovery funds. These grants can help local government entities whose budgets are strained from the Sandy rebuilding process to maintain essential services to the community.

“Sandy took a lot out of our local governments financially, and I’m thrilled that these grants will help communities plug holes in their budgets,” said Pallone. “New Jerseyans’ lives have been disrupted enough as a result of this terrible storm, and it’s important to the rebuilding process that our cities and schools continue to support the community as they did before the Sandy.”

New Jersey has received $1,829,520,000 in CDBG grants from the Sandy aid package passed by Congress earlier this year. Under New Jersey’s Disaster Action Plan approved by the U.S. Housing and Urban Development on April 29, 2013, $60 million will support local government entities so they can maintain essential services. The large majority of CDBG grants will support individuals and small businesses suffering damages following Superstorm Sandy. These grants will help residents repair their homes, fund buyouts in areas where people face repetitive flooding, assist homeowners who need help to raise their homes and businesses with repair costs not covered by insurance or small business loans.

“I look forward to additional rounds of CDBG funding reaching more of our local government entities, residents, and small businesses in need,” Pallone added.

Residents and Small Businesses Impacted by Sandy Now a Critical Step Closer to Recovery

U.S. Department of Housing and Urban Development Approved $1.8 billion Disaster Recovery Plan for New Jersey

Washington, DC – Today, Congressman Frank Pallone praised the approval of New Jersey’s $1.8 billion Community Development Block Grant (CDBG) disaster recovery plan that will help New Jersey’s homeowners and businesses impacted by Superstorm Sandy.

“I hear from New Jerseyans every day about how difficult this process is, and I know that many of them are not even close to a full recovery. The approval of this $1.8 billion plan means that more people now have an end in sight, and it will allow businesses to focus on business instead of how to pay for repair costs.” said Congressman Pallone.

The New Jersey CDBG disaster recovery funds have been allocated for homes and small businesses suffering damages following Superstorm Sandy. These grants will help residents repair their homes, fund buyouts in areas where people face repetitive flooding, assist homeowners who need help to raise their homes and businesses with repair costs not covered by insurance or small business loans.

The CDBG plan, submitted by New Jersey, was approved today by the U.S. Department of Housing and Urban Development. The funding was made possible by the Sandy Relief Package passed by Congress.

Pallone Announces $1.8 Billion in Federal Sandy Aid for New Jersey

Funds will go towards rebuilding homes and small businesses impacted by Sandy

WASHINGTON DC – Congressman Frank Pallone, Jr. (NJ-06) today announced that New Jersey was allocated $1,829,520,000 in Community Development Block Grant Disaster Recovery (CDBG-DR) funds for rebuilding homes and small businesses impacted by Superstorm Sandy. Rep. Pallone’s New Jersey district includes a large stretch of the Jersey Shore and several towns devastated by Superstorm Sandy, like Sea Bright and Union Beach.

Community Development Block Grant Disaster Recovery Funds may go towards the restoration of housing, infrastructure and economic revitalization. This particular allocation is limited to homes and small businesses suffering damages following Superstorm Sandy.

“This disaster recovery funding is an important step forward as New Jersey works to recover from Sandy,” said Pallone. “Many of our homes and businesses are badly in need of repairs or are in some cases, completely destroyed. These funds will kick start the rebuilding of our communities and set us on a course to revitalize the Shore.”

The grant is a result of the Superstorm Sandy Relief Package that passed the House and Senate and was signed into law by President Obama. Pallone was a strong advocate for a robust relief package to help the victims of the historic storm. In total, $5.4B in CDBG-DR funding was allocated today to the Sandy affected.

“I look forward to additional allocations of funding for disaster recovery in our region, including grants that will help our state rebuild the infrastructure damaged by Sandy,” Pallone added.