Bill > A2799

Introduced Session

This bill establishes specific procedures to be used by the Department of Community Affairs (DCA) to recover overpayments 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 requires DCA to notify a Sandy-impacted homeowner when it determines that the homeowner has received an overpayment of RREM or LMI funds, which 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 homeowner; an explanation of the homeowner's rights; information on how the homeowner may appeal DCA'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. Under the bill, DCA would provide a payment plan to all Sandy-impacted homeowners to repay any over-disbursement debt either in lump-sum or in 60 months, paying as much or as little as they choose per month, over the course of the repayment period until the debt is satisfied. At the end of 60 months, any remaining debt would be transferred to the Division of Revenue and Enterprise Services in the Department of Treasury. In cases when over-disbursement was made to a Sandy-impacted, low income or moderate income homeowner, as the equivalent terms are defined by the United States Department of Housing and Urban Development, and the homeowner does not have sufficient income, assets, or resources to make payments, the homeowner may request to have some or all of the over-disbursement debt compromised. In such a case, DCA would determine whether a low-to-moderate income Sandy-impacted homeowner does not have sufficient income, assets, or resources to make payments. If that determination is made, the over-disbursement debt, except for any portion of the debt the debtor can pay through disposable assets, would be compromised in whole or in part. The bill provides that in making the determination, DCA would evaluate the homeowner's assets, income, and reasonable living expenses to determine whether the homeowner can pay the debt. Additionally, when determining the ability of a low-to-moderate income Sandy-impacted homeowner to repay the debt, DCA may consider the homeowner's age, health, financial hardship, and other extraordinary circumstances as determined by the Commissioner of Community Affairs. The bill also specifies that any Sandy-impacted homeowner who received an over-disbursement of RREM or LMI funds, and for whom a Final Grant Reconciliation Document has been signed by DCA or who has repaid an over-disbursement debt either in whole or in part, may appeal the DCA's determination in writing. Finally, the bill requires that information about the appeals process be placed on DCA's Internet website.

AI Summary

Committee Categories

Brian Rumpf (R)*,  Greg McGuckin (R), 

Introduced, Referred to Assembly Oversight, Reform and Federal Relations Committee (on 01/13/2026)

Official Document