New Jersey Department of Community Affairs

 New Jersey Department of Community Affairs SUPERSTORM SANDY COMMUNITY DEVELOPMENT BLOCK GRANT ‐ DISASTER RECOVERY Public Law 113‐2, January 29, 2013; FR‐5696‐N‐01, March 5, 2013; FR‐5696‐N‐06, November 18, 2013; FR‐5696‐N‐11, October 21, 2014 ACTIONPLANAMENDMENTNUMBER13–SUBSTANTIALAMENDMENT
AMENDMENTFORTHETRANSFEROFSANDYCDBG‐DRFUNDS

TransferofFundsfromTourismMarketingtotheRehabilitation,
Reconstruction,ElevationandMitigation(RREM)program

TransferofFundsfromtheNon‐FederalCostShare(Match)programto
theRehabilitation,Reconstruction,ElevationandMitigation(RREM)
program

ClarificationtoHMFAdefinitionofpublichousingunitsfromAPA7
PUBLICCOMMENTPERIOD:____________________
DATESUBMITTEDTOHUD:_____________________
DATEAPPROVEDBYHUD:_____________________
ChrisChristie
Governor
KimGuadagno
Lt.Governor
RichardE.Constable,III
Commissioner
101 South Broad Street, P.O. Box 800 Trenton, NJ 08625‐0800 ActionPlanAmendmentNumber13(Substantial)toNewJersey’sCDBG‐DRActionPlan
I.OVERVIEW
NewJerseyreceivedapprovalfromHUDforitsCDBG‐DRActionPlanonApril29,2013.TheAction
Plandescribedtheallocationofthe$1,829,520,000offirstroundCDBG‐DRfundsallocatedbyHUD
tosupportNewJerseyrecoveryefforts.Sincethattime,theStatehassubmitted,andHUDhas
approved,tenamendmentstotheActionPlan,includingSubstantialAmendmentNo.7,which
describedtheallocationofthe$1,463,000,000ofsecondroundCDBG‐DRfundsacrossrecovery
programs.
TwoadditionalproposedActionPlanAmendments(APAs)‐‐APA11(allocatingthirdroundCDBG‐
DRfundsforprogramsotherthanRebuildbyDesign)andAPA12(allocatingRebuildbyDesign
funds)‐‐arenowavailableforpubliccommentandsubsequentlywillbesubmittedtoHUDfor
approval.
ThisActionPlanAmendmentNumberThirteen(APA13)isconsideredasubstantial
amendmentaccordingtothedefinitionintheHUDFederalRegisterandinaccordancewiththe
State’sCitizenParticipationPlanbecauseitinvolvesare‐allocationofmorethan$1,000,000of
CDBG‐DRfunds.
ThisAmendmentmaybeobtainedviatheInternetattheDCAwebsite‐
http:/www.state.nj.us/dca/,orbycontactingJaimeSaultsat609‐633‐1328;orbyemailto
sandy.recovery@dcanj.gov.TheproposedActionPlanAmendmentwillbepublishedinEnglishand
Spanishonthesamewebsite.
WrittencommentsontheproposedActionPlanAmendmentwillbeacceptedfortheminimumof
thirtydaysfromthedateofposting.ThepubliccommentperiodforAPA13willbeginonDecember
16,2014andbeopenthrough5:00PM(EST)onJanuary15,2015.Twopublichearingswillbeheld
duringthecommentperiodonthefollowingdatesandatthefollowinglocations:
January6,2015:OceanCountyCollege,JayandLindaGruninCenterforthe
PerformingArts,1CollegeDrive,Building12,TomsRiver,NewJersey,08753(4‐
7pm)
 January7,2015:BergenCommunityCollege,MosesCenter,400ParamusRoad,
Paramus,NewJersey07652(4‐7pm)
Commentscanbesubmittedatthehearings,[email protected]
U.S.mailtoJamieSaults,NJDepartmentofCommunityAffairs,101SouthBroadStreet,PostOffice
Box823,Trenton,NewJersey08625‐0823.Allcommentsaregiventhesameconsideration
regardlessofthemethodofsubmission.

II.ACTIONPLANMODIFICATIONS
Thefollowingtabledescribesthefundingtransfersbetweenapprovedrecoveryactivitiescontained
inSubstantialActionPlanAmendmentNumber13.
ApprovedNJActionPlan
ActivityPrevious Amountof
ActivityRevised
Program
Amount
Transfer
Amount
TourismMarketing
$30,000,000
(‐)$5,000,000
$25,000,000
Non‐FederalCostShare
$250,000,000
(‐)$25,000,000
$225,000,000
(Match)
Rehabilitation,
$1,100,000,000a
(+)$30,000,000
$1,130,000,000
Reconstruction,Elevation&
Mitigation(RREM)
ThesefiguresdonotincludeproposedthirdroundCDBG‐DRfundsallocatedtoRREM.
a
A.
Transferof$5MillionfromTourismMarketingtotheRehabilitation,Reconstruction,
ElevationandMitigation(RREM)Program
TourismisthethirdlargestindustryinNewJersey,andiscriticaltotheState,tomunicipalitieswith
budgetsthatdependontourismrevenuestoprovideessentialservices,tosmallbusinessowners
withbusinessesin,ordependenton,thehospitalityandleisureindustry,andtotheiremployees.As
detailedintheActionPlan,thestormcreatedamisperceptionthattourismassetsthroughoutNew
JerseyhadbeendestroyedbySuperstormSandy,evenincomparativelyless‐affectedcommunities.
Tocombatthatmisperception,theStatesoughtawaiverfromHUDtouseCDBG‐DRfundsto
supportatourismmarketingcampaign.HUDgrantedthewaiverrequestallowingNewJerseyto
useupto$25millionofCDBG‐DRfundsforatourismmarketingcampaign.The“Strongerthanthe
Storm”campaignin2013incorporatedvariousformsofadvertising,aswellascommunityevents,
todrivetouriststowardNewJerseytourismassets.
FollowingthemostdevastatingnaturaldisasterinNewJersey’shistory,tourismmetricsshowed
thatNewJersey’s2013summerseasonlargelyexceededexpectations,thoughsomeofthemost‐
impactedcommunitiessawasignificantreductionintourismrevenues.
Tosupporthardesthitbusinessesandmunicipalitiesthatcouldnottakefulladvantageofthe2013
tourismseason,theStatededicatedadditionalrecoveryresourcesfortourismmarketingin2014.
FivemilliondollarsofsecondroundCDBG‐DRfundswereallocatedtothetourisminitiative,and
theStatesimultaneouslyrequestedthatHUDmodifyitswaivertoincreaseNewJersey’stourism
marketingfundingcapfrom$25millionto$30million.Withoutthatwaiver,evenifHUDapproved
theActionPlan,thesecondroundtourismmarketingfundscouldnotbespent.
TheState’ssecondroundActionPlanwasapproved,butnodeterminationwasinitiallymadeby
HUDonextendingthetourismfundingcap.Asaresult,theNewJerseyEconomicDevelopment
Authoritybeganexecutingascaledbackversionoftheplanned2014“GoingStrong”campaign‐‐
usingremainingCDBG‐DRfundsfromthefirstroundandstatefunds‐‐andwaspreparedtoexpand
thecampaignoncetheHUDtourismcapincreasewasapproved.Nodeterminationwasmadeon
thewaiverrequestasthesummerof2014drewnearanend,atwhichpointtheStatewithdrewthe
waiverrequestbecausethewindowtosupport2014summertourismhadclosed.
Asaresult,theStatewillrepurposethe$5millionallocatedfortourismmarketingin2014tothe
Rehabilitation,Reconstruction,ElevationandMitigation(RREM)programbasedontheunmet
needssetforthinproposedActionPlanAmendmentNo.11.
B.
TransferofFundsfromNon‐FederalCostShareProgramtotheRREMProgram
BecauseproposedActionPlanAmendmentNo.11identifiesapproximately$250millioninunmet
RREMneedsandproposestoallocate$225milliontotheRREMprogram,theStatebythis
amendmentproposestotransfer$25millionfromtheNon‐FederalCostShare(Match)totheRREM
ProgramtoensurethattheStatecanservethehouseholdsontheRREMprogramwaitlist.
C.
ClarificationtoSection3.3.1FundforRestorationofMulti‐FamilyHousingofAction
PlanAmendmentNumber7(SecondAllocation)relatedtodefinitionofpublichousing
units.
TheFundforRestorationofMulti‐FamilyHousing(FRM)wasestablishedintheState’sActionPlan,
approvedbyHUDonApril29,2013.TheFRMprogramisadministeredbytheNewJerseyHousing
andMortgageFinanceAgency(HMFA)andprovidesfundingtofacilitatethecreationor
rehabilitationofquality,affordablerentalhousingunitstoaddressthelossofmulti‐familyhousing
causedbySuperstormSandy.InitsActionPlan,Section4.2.1,theStateallocated$179,520,000of
firsttrancheCDBG‐DRfundstoFRM.Ofthattotal,$20millionwasreservedexclusivelytosupport
therecoveryofpublichousingauthorities.
InSection3.3.1ofActionPlanAmendmentNumber7relatedtothesecondallocationofCDBG‐DR
funds,theStateallocatedanadditional$200,000,000totheFRMprogram,with$10,000,000
initiallyreservedforpublichousing.Thisamendmentisaclarificationtoconfirmthelanguageis
consistentamongtheinitialActionPlanwhichestablishestheprogramandtheadditionalfundsput
intotheexistingprograminAPA7.
Further,asnotedinAPA7,Section3.3.1,“theStateincorporatesthedescriptionoftheFRM
programinitsActionPlan,asamended,aswellasalleligibilityandothercriteria.”Thestatements
inAPA7werenotintendedtochangetheexistingdefinitions.Thefollowingeditistoclarifythis
continuityoflanguage.
EdittoSection3.3.1ofAPA7:[para3,firstsentence]
TheStatewilldedicateanadditional$200,000,000ofsecondtrancheCDBG‐DRfundstothe
FRMprogram,ofwhich$10millionwillbeinitiallyreservedfor{delete}PHA{insert}:
repairstodamagedpublichousingunits,damagedfederally‐ownedhousingunits,and
damagedHUDassistedmultifamilyhousing.(ThislanguagedirectlyreplicatesthatofAction
Plan,Section4.2.1).
PUBLICCOMMENTSANDSTAFFRESPONSES
PerHUDrequirements,thisproposedSubstantialAmendmentwillbemadeavailableforpublic
commentoverathirty‐dayperiod.WhiletheStateisrequiredtoholdonepublichearingtosolicit
commentsinconnectionwiththisproposedamendment,theStatewillholdtwohearings.
Commenterscansubmitcommentstothisproposedamendment(i)viaemailto
[email protected](Subject:APA13);(ii)viaU.S.mail;or(iii)viaoralorwritten
commentsatthepublichearings.
Afterthecommentperiodcloses,theStatewillsynthesizethecommentssubmittedwithrespectto
thisproposedSubstantialAmendment,andwillprovidewrittenresponsestothosecomments.