State Says It Won't Make Sandy Homeowners Repay RREM Funds: Report

Homeowners who receive additional money as a result of a review of their insurance claim from Superstorm Sandy will not have to repay RREM money to the state, according to a report.

The Asbury Park Press report says New Jersey officials have said they will not seek money from homeowners that overlaps with the Rehabilitation, Reconstruction, Elevation and Mitigation (RREM) program.

“The Christie Administration believes that FEMA ... is responsible for addressing any duplications created by additional flood insurance payments received,” said Lisa Ryan, a spokeswoman for the New Jersey Department of Community Affairs. “If a RREM homeowner receives additional flood insurance dollars as a result of FEMA’s review of their claim, DCA will not independently pursue recapture of RREM grant funds in these instances.”

RREM grants, as high as $150,000, are based on the cost to rebuild, flood insurance proceeds and public assistance received. The aim is to enable eligible homeowners to repair, rebuild or lift their Sandy-damaged home.

Previously, the state’s official position was that U.S. Department of Housing and Urban Development rules required New Jersey to check to see if a homeowner received more cash from insurance while in the RREM program. If they did, that could reduce the grant and that would compel the state to collect any portion of the grant that was displaced by the new insurance money.

Those concerns are believed to have deterred many from enrolling in the Sandy Claims Review.

Read more here.

(Works continues on raising homes on the barrier island. Credit: Karen Wall)