80 East River Road 07760    (732) 842-3300

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Borough Hall Office Hours:
Monday - Friday, 8:30 AM - 4:30 PM
Phone:  (732) 842-3300

80 East River Road
Rumson, New Jersey 07760



All images and content are property of
the Borough of Rumson, New Jersey.
© 2007 Borough of Rumson,
80 East River Road
Rumson, New Jersey 07760
All rights reserved.

Steamship and other historic images shown
here are from Dorn's Classic Images.
©: 2006 Dorn's Classic Images.
All rights reserved.

Community Development Block Grant (CDBG) Update

The Christie administration has announced their Community Development Block Grant Action Plan for Disaster Recovery. This full announcement can be found here:
www.state.nj.us/dca/news/news/2013/20130312_CDBG.html
and the Action Plan for Disaster Recovery document can be downloaded in PDF format at this link:
www.state.nj.us/dca/announcements/pdf/CDBG-DisasterRecoveryActionPlan.pdf

Key items of this Action Plan include:

  • The funding of this CDGB plan comes from HUD (Housing and Urban Development) and is triggered after a disaster declaration.
  • This is not FEMA or SBA money.
  • This is not the Borough's Hazard Mitigation Grant Program for homeowners, whereby the town has to be the applicant for an individual.
  • Resources in this Action Plan may be used to help fund "unmet needs" of individuals to assist in disaster recovery (more on that below). - An individual homeowner will be the applicant for the CDGB program.
  • The (simplified) process of CDGB fund declarations include the following:
    1. The state creates an Action Plan to request funding from HUD
    2. There are 7 days for public comment (no public hearings, only way is to make written comment),
    3. HUD must then approve the state's Action Plan and allocate funding within 60 days of approving Action Plan,
    4. State disperses funds.

The actual dispersal logistics behind the CDGB grant funds is not presented in the Action Plan yet. However, a major component of the Action Plan that may be of most help to individuals can be found in section 4.1.1, copied below:

4.1.1 Homeowner Reconstruction, Rehabilitation, Elevation and Mitigation (RREM) Program
The RREM program will provide grant awards to eligible homeowners for activities necessary to restore their storm-damaged homes, including rehabilitation, reconstruction, elevation and/or other mitigation activities. The program will also provide reimbursement for eligible expenses incurred prior to the implementation of this program.
Allocation for Activity: $600,000,000 to benefit approximately 6,000 homeowners.
The initial phase of the program will be allocated 70% for low and moderate income (LMI) households and 30% for non-LMI households.
Maximum Award: $150,000
Eligible Applicants: Homeowners whose primary residences sustained “substantial,” major and severe damage from Superstorm Sandy. The residence must be located in one of the nine most impacted counties. Repair, replacement or relocation of damaged infrastructure is also a priority for use of these dollars.

Section 4: Method of Distribution 4-4
The program will prioritize homeowners within the nine most impacted counties.
Priorities include:
Priority 1: Homes with “substantial damage,” as determined by New Jersey floodplain managers, regardless of zone;
Priority 2: (if demand and funds remain after Priority 1) Severe/major damage only in A/V zones;
Priority 3: (if demand and funds remain after Priority 2) Severe/major damage in all other zones.
Eligibility Criteria:
- Home must have been owner-occupied at the time of the storm
- Home must have served as primary residence
- Home must have been in one of the nine most impacted and distressed counties
- Homeowner must have been registered with FEMA
- Homeowner must have a household adjusted gross annual income of less than $250,000
- The RREM program will follow the reconstruction and rehabilitation standards noted previously

Criteria for Selection:
- First-come, first-served basis
- 70% of the funds are reserved for LMI income households in accordance with HUD income guidelines

Eligibility: Section 105(a)(4) Housing and Community Development Act (HCDA) of 1974 as amended, (Section 18. Reimbursement of disaster recovery expenses) National Objective: Low and moderate income, urgent need

If after reviewing the entire Action Plan you would like to make a comment, you can submit comments via Public Comment Form at:

http://www.formsite.com/dcanet/CDBG/index.html
or via email to
Sandy.Recovery@dca.state.nj.us
through Tuesday, March 19, at 5 p.m.

It is not yet clear how and when an individual can seek these funds, but I have heard anecdotal evidence that all SBA applicants, whether you were denied or granted, will be contacted to seek funding through CDBG. I infer from the above information that this program will help a total of approximately 6000 homeowners in the nine most affected counties, of which Monmouth County is one. For the nine counties overall, approximately 4200 homeowners would qualify as having low and moderate income (LMI), and the remaining 1800 homeowners would have an adjusted gross income exceeding LMI standards but less than $250,000.

But don't wait for this program to come to you, since it states above that it's on a first-come first-served basis. Instead monitor the Department of Community Affairs website:
            http://www.state.nj.us/dca/announcements/sandy.html
to keep tabs on the progress of this grant program.

Of course, as soon as the Borough receives further information, it will be distributed online and through this email platform as well. So stay tuned.

M. B.


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