Toms River Applying for $5 Million FEMA Loan

Toms River officials are taking steps toward securing a $5 million FEMA Community Disaster loan for damages sustained during Superstorm Sandy.

The Township Council this week passed a resolution executing a collateral security in connection with the loan application, a standard practice pledging the full faith of the township's credit, said Business Administrator Paul Shives. 

"In this case, the limit is $5 million per taxing entity," Shives said. As another taxing authority, Toms River school district administrators also have said that they declared their intention to apply for the loan.

Toms River officials have said that the township's ratables base may have lost 20 percent because of destruction caused by Sandy.

Funding from the loan can be used to offset the tax levy in 2013 and beyond, "providing a stable tax and rate environment for communities where stability is sorely needed," reads a statement from the New Jersey Department of Community Affairs Division of Local Government Services. 

According to Shives, it is possible it may not be necessary for Toms River to repay the funds should the township not bounce back in three years time.

"It is a loan," he said. "However, in the case of [Hurricane] Katrina, none of the loans were ever paid back. They were forgiven."

Council Vice President Maria Maruca commended Shives and township administrators for moving quickly to apply for the loan.

"I believe that Toms River Township was the first municipality in the state to get their application in," she said.