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  • NJ A4784
  • Establishes process for recovery of Superstorm Sandy aid overpayments.
Introduced
(5/11/2017)
In Committee
(6/29/2017)
Crossed Over
(6/29/2017)
PassedSignedDead/Failed/Vetoed
2016-2017 Regular Session
This bill is intended to address concerns raised by homeowners impacted by Superstorm Sandy related to the "clawback" of Community Disaster Block Grant-Disaster Recovery (CDBG-DR) funds awarded through the Reconstruction, Rehabilitation, Elevation and Mitigation Program (RREM) and the Low-to-Moderate Income Homeowner Rebuilding Program (LMI). The bill establishes specific procedures to be used by the Department of Community Affairs (DCA) as it attempts to recover overpayments of CDBG-DR monies. The bill requires the DCA to notify a Sandy-impacted homeowner when the DCA determines that the Sandy-impacted homeowner has received an overpayment of RREM or LMI funds that must be repaid to the State. The notice must provide information about the type of debt owed, an accounting of all funds disbursed to the Sandy-impacted homeowner, an explanation of a Sandy-impacted homeowner's rights; information on how a Sandy-impacted homeowner may appeal the department's determination; information on options for the repayment of debt; and information on any interest and penalties that may accrue if the debt is not paid within the period permitted by the bill. A Sandy-impacted homeowner may pay the debt in full in one lump sum. If there are insufficient assets to immediately repay the debt in full a Sandy-impacted homeowner may apply for a repayment plan. Eligibility for a repayment plan is based on a DCA review of a Sandy-impacted homeowner's assets, income and reasonable living expenses to determine whether a Sandy-impacted homeowner can pay a portion of the debt with an initial payment and make payments for the remainder of the debt in regular installments. The bill requires the DCA to establish two payment plans that allow for payment of the debt over a period of 36 months to 60 months, depending on whether a Sandy-impacted homeowner's net disposable income is sufficient to pay the debt on time. The maximum payment under a payment plan cannot be greater than one-half of one percent of a Sandy-impacted homeowner's monthly income, or six percent of a Sandy-impacted homeowner's monthly income, whichever is lesser. If a Sandy-impacted homeowner does not have sufficient income, assets, or resources to make payments, the debt, except for any portion that a Sandy-impacted homeowner can pay through disposable assets, will be compromised and considered paid in full. When determining the ability of a Sandy-impacted homeowner to repay the debt, the department may consider the Sandy-impacted homeowner's age, health, financial hardship, and other extraordinary circumstances as determined by the commissioner. The bill permits a Sandy-impacted homeowner to appeal, in writing, to the commissioner the department's determination that a Sandy-impacted homeowner received an over-disbursement of RREM or LMI funds. A Sandy-impacted homeowner may also appeal, in writing, to the commissioner the department's determination that the homeowner is ineligible for either a payment plan or a compromise of the debt. Appeals shall be filed with the commissioner within 30 days of the receipt of notice of an over-disbursement or the denial of a payment plan or compromise. All appeals are required to be decided within 30 days from the date an appeal is submitted to the commissioner's office. The bill requires the State to refund any over-disbursement payments made by a Sandy-impacted homeowner that are in excess of the amount due under a payment plan agreement and appropriates General Fund monies to the DCA for that purpose.
2nd Reading in the Assembly, Community and Urban Affairs, Passed Assembly, Regulatory Oversight and Reform and Federal Relations
Received in the Senate, Referred to Senate Community and Urban Affairs Committee  (on 6/29/2017)
 
 

Date Chamber Action Description
6/29/2017 S Received in the Senate, Referred to Senate Community and Urban Affairs Committee
6/29/2017 A Passed by the Assembly (77-0-0)
6/26/2017 A Reported out of Assembly Committee, 2nd Reading
6/26/2017 Assembly Budget Hearing (19:00 6/26/2017 A-4432 (1R), A-4784 (1R) and A-5038 are pending referral. * Revi)
6/26/2017 A Transferred to Assembly Budget Committee
6/26/2017 Assembly Budget Hearing (19:00 6/26/2017 A-4432 (1R), A-4784 (1R) and A-5038 are pending referral.)
6/1/2017 A Reported out of Asm. Comm. with Amendments, and Referred to Assembly Appropriations Committee
6/1/2017 Assembly Regulatory Oversight and Reform and Federal Relations Hearing (19:00 6/1/2017 )
5/11/2017 A Introduced, Referred to Assembly Regulatory Oversight and Reform and Federal Relations Committee
Date Motion Yea Nay Other
Detail 6/29/2017 Assembly Floor: Third Reading - Final Passage 77 0 3
Detail 6/26/2017 Assembly Budget Committee: Reported Favorably 13 0 0
Detail 6/1/2017 Assembly Regulatory Oversight Committee: Reported with Amendments 5 0 0