Pallone Demands FEMA take Swift Action to Address Unacceptable Delays for Sandy Victims

FOR IMMEDIATE RELEASE
May 25, 2016


WASHINGTON, DC - Today, Congressman Frank Pallone, Jr. (NJ-06) and Congressman Bill Pascrell (NJ-09) demanded that FEMA take swift action to process claims for victims of Hurricane Sandy in a meeting with Roy Wright, Deputy Associate Administrator for Insurance and Mitigation at the Federal Emergency Management Agency (FEMA), in Pallone’s Washington, DC office. At the meeting Wright stated that FEMA would have the unprocessed claims finished by the end of the summer.

The members stressed that the slow pace of the claims review process is unacceptable, and that FEMA needs to act to ensure that New Jersey policy holders are treated fairly and receive just compensation. They also discussed their concerns over alleged widespread fraud perpetrated by private insurance companies servicing National Flood Insurance Program (NFIP).

“My constituents and I continue to be outraged by the unacceptable delays in processing claims for Sandy victims.” said Pallone. “It’s been nearly four years since Hurricane Sandy devastated New Jersey and there needs to be a sense of urgency about processing the claims of these victims, who have already suffered enough. FEMA has a responsibility to implement processes to ensure that disaster victims get the resources they are rightfully owed and it is imperative that it take action immediately. Next week starts Hurricane season and we need to make sure that victims of Sandy are in their homes and prepared.”

“I met with Roy Wright of FEMA to discuss improving and expediting the Hurricane Sandy Claims review process for the thousands of New Jerseyans still waiting to receive the support they are owed,” said Pascrell. “While it is upsetting to know that FEMA has only fully processed roughly half of the claims that have been associated with fraud, they are doing it as swiftly and diligently as possible. I commend FEMAs willingness to work with members of Congress and the people of New Jersey in order to address any and all issues that have arisen from flood insurance payment issues. That is why I encourage anyone in my district to let me know if they have an issue so that I can keep FEMA to their word.”

Earlier this month, Pallone led a bipartisan letter from members of the New Jersey Congressional delegation to Administrator Fugate of the Federal Emergency Management Agency (FEMA) requesting that it take swift action on behalf of those who have suffered from documented, widespread fraud perpetrated by private insurance companies in the aftermath of Superstorm Sandy. The lawmakers asked for an explanation of why it is taking FEMA so long to process the insurance claims of these victims and to detail the steps FEMA is taking to swiftly rectify the situation.

Last May, The Federal Emergency Management Agency’s (FEMA) National Flood Insurance Program (NFIP) announced that it would begin a process requested by Pallone and other New Jerseys members of Congress to review flood insurance claims filed by policyholders affected by Hurricane Sandy. FEMA did this after Pallone and other Members sent a letter to FEMA requesting that it establish a process allowing homeowners to easily file an appeal if they believe they have been a victim of an intentionally altered engineering report.

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 State to Provide Transparency Regarding Sandy Contractors

WASHINGTON D.C.—Today, Congressman Frank Pallone, Jr. (NJ-06) called for increased transparency from the Christie Administration in its dealings with the contractors responsible for administering Superstorm Sandy relief funds. Pallone cited recent media reports that the Christie Administration has expanded the role of an existing contractor that will now oversee the distribution of Sandy aid dollars previously managed by Hammerman and Gainer Inc. (HGI), whose $68 million contract was terminated by the state last year without explanation from the state with a $36 million payout after completing only seven months of a three year contract.

ICF International, a Virginia-based firm, has been engaged by the Christie Administration to manage the disbursement of Sandy aid including the Reconstruction, Rehabilitation, Elevation and Mitigation (RREM) program, which can be used by Sandy victims to rebuild and repair their homes. Thousands of New Jerseyans have noted that rebuilding funds have been slow moving with many still awaiting payments to assist with the cost of repairs to their homes nearly a year and half after the storm made landfall.

“It is outrageous that Sandy relief for homeowners has been delayed for so long,” said Pallone. “I am constantly hearing from my constituents that they are still waiting for the help they so desperately need, yet all we hear from the Governor’s office is that they are hiring and firing contractors without explanation and without results. Enough is enough. Sandy victims deserve better than this and the Christie Administration needs to spell out exactly where the relief dollars are being spent and disclose what these contractors are actually being paid to do.”

Pallone called on the Christie Administration to explain the scope of the work contractors have been hired to conduct as well as their progress. He criticized the sluggish distribution of aid to New Jerseyans and called for immediate action to ensure that Sandy victims get the help they need to rebuild from the storm. Pallone also noted that the state’s contract with ICF had no specified limit, so there is currently no way to determine how much relief money will be paid out to the contractor as opposed to directly reaching Sandy victims.

“Sandy reconstruction has been wrought with inexcusable delays,” said Pallone. “I didn’t fight as hard as I did to get the Sandy relief package passed in Congress in the face of unconscionable opposition, just to see those dollars held up and mismanaged here in New Jersey. We need to know where the money is, what contractors are doing with it and why it is not in the hands of those who need it to repair their homes. It is time for the Christie Administration to be straight with New Jerseyans and help residents rebuild.”