Details Emerge on Sandy Homeowner Relief Programs

State officials have started taking applicatons for an initial outlay of $1.6 billion of federal aid targeted toward homeowners looking to rebuild after Superstorm Sandy, though much of it will be directed toward what the state considers low and middle income families, and all of it will go to primary homeowners.

About 5,700 people have already applied for two programs the state is offering under its "reNew Jersey Stronger" program designed to keep storm victims from leaving their communities: the Reconstruction, Rehabilitation, Elevation and Mitigation (RREM) program which provides grants of up to $150,000 to rebuild or rehabilitate homes, and the Resettlement program, which provides grants of up to $10,000 to help families that are struggling to stay in their home counties after losing their homes during the storm.

On average, a family of four would have to make less than $68,000 per year to qualify for the RREM, said Richard E. Constable, commissioner of the state Department of Community Affairs in a media conference call Wednesday. There is no means testing for the resettlement program.

Both programs are limited to homes that are considered a family's primary residence.

In Brick, the median family income is $81,868, according to the 2010 U.S. Census. In Toms River, the median family income is $83,924.

"With limited dollars, we have to make choices," said Constable. "I think we would all agree a family of four making $50,000 is in need."

The goal of both programs, Constable said, is to keep families living in New Jersey, and specifically, their home county. The funding, contrary to rumors that initially circulated when the programs were announced, will not be doled out on a first-come, first-served basis, but rather a combination of geography, the damage suffered to a family's home and monetary need.

The state will "always prioritize folks most in need," said Constable.

"We're talking about limited resources," he said. "Many individuals who have second homes or vacation homes are struggling like us all, but we have to make sure that people whose only home is off its foundation has access to these funds."

In other states, especially the Gulf Coast states affected by Hurricane Katrina in 2005, many residents up and left. That's something New Jersey officials are trying to avoid.

"What we want to do is make sure people here don't make that choice," said Constable. "We don't want people abandoning their counties and abandoning their homes."

Under the RREM program, homeowners who qualify for work to be completed on their homes will have the work performed by a qualified, insured and bonded contractor participating in a state pool. Projects will be competitively bid and assigned to contractors.

"What we don't want to see is people who get $150,00 in federal funds fall prey to unscrupulous contractors or people who will do half the work and walk away," said Constable. "In other states there were people who said, 'if you use me as contractor, we'll give you a trip to Jamaica.'"

Funds received under the RREM program are considered something of a last resort, officials told Patch. Homeowners must exhaust insurance payouts and other funding mechanisms first.

Fow now, applications for both programs can be filled out online or taken over the phone, but on June 8, centers will open in each of the state's nine Sandy-affected counties where residents can seek assistance. The locations of those centers have not been announced.

Constable estimated "tens of thousands" of people could apply for the programs.

"What we're talking about today is only those dollars coming from the initial application," he said, promising future rounds of funding that could potentially include more resources for those who miss the RREM's initial income limits or primary residency requirements. The state is due to announce federal Hazard Mitigation Grant funding in the coming weeks which will primarily go to homeowners who need to elevate their residences.

The online application form for both programs can be found at at www.renewjerseystronger.org. The agency can be reached by phone at 855-SANDY-HM.