Homeowner Assistance and
Recovery Program
Policy
2.16.2023
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CONTENTS
1 Program Overview ................................................................................................................ 1
1.1 Introduction .................................................................................................................. 1
1.2 Program Description .................................................................................................... 1
1.3 Funding Sources .......................................................................................................... 1
1.3.1 Tropical Storm Ida CDBG-DR............................................................................ 1
1.3.2 Superstorm Sandy CDBG-DR ........................................................................... 2
1.4 Program Administration ............................................................................................... 2
1.5 Property Owners of Duplexes, Triplexes, and Displaced Renters ................................ 3
1.6 Uniform Relocation Act (URA)...................................................................................... 3
1.7 Reimbursement ........................................................................................................... 3
1.8 HARP Rental Assistance ............................................................................................. 4
1.8.1 Eligibility: ........................................................................................................... 4
1.8.2 Duplication of Benefit (DOB): ............................................................................ 4
1.8.3 Rental Assistance: ............................................................................................. 4
1.8.4 Payment Terms: ................................................................................................ 4
1.8.5 Program Assistance Term: ................................................................................ 5
1.8.6 Funds Disbursement: ........................................................................................ 5
1.8.7 Monthly Disbursement: ...................................................................................... 5
2 APPLICATION AND PRIORITIES ................................................................................... 5
2.1 Application Process Overview ...................................................................................... 5
2.1.1 Application Method ............................................................................................ 5
2.1.2 Application Period ............................................................................................. 6
2.1.3 Phased Approach .............................................................................................. 6
2.1.4 Application Waitlist ...........................................................................................10
2.2 Housing Counseling and Legal Services .....................................................................10
2.3 Withdrawn Applications ...............................................................................................11
2.3.1 Voluntary Withdrawals ......................................................................................11
2.3.2 Administrative Withdrawals ..............................................................................12
2.3.3 Withdrawal Reinstatement Requests ................................................................12
3 ELIGIBILITY ...................................................................................................................13
3.1 National Objectives .....................................................................................................13
3.2 Eligible Structures .......................................................................................................13
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3.3 Eligible Activities .........................................................................................................13
3.4 Applicant Eligibility ......................................................................................................14
3.4.1 Lawful Presence ...............................................................................................14
3.5 Ownership ..................................................................................................................14
3.5.1 Verification of Ownership ..................................................................................14
3.6 Other Special Ownership Circumstances ....................................................................15
3.6.1 Owner Occupants with Attached Rental Properties (Duplex and Triplexes) ......15
3.6.2 Foreclosures ...................................................................................................16
3.6.3 Death of Owner Occupant ................................................................................16
3.6.4 Owner Occupants who have Sold their Homes ................................................17
3.6.5 Limited Liability Company (LLC) and Limited Liability Partnership (LLP) ..........17
3.7 Occupancy and Primary Residency ............................................................................17
3.8 Definition of a Second Home ......................................................................................18
3.9 Income Verification .....................................................................................................18
3.10 Property Damage ........................................................................................................19
3.10.1 Property Damage Verification ...........................................................................19
3.11 Other Flood Insurance Requirements .........................................................................19
4 CONSTRUCTION CONTRACT AND PATHWAYS ........................................................21
4.1 Initial Pathway Assessment ........................................................................................21
4.1.1 Pathway 1: Homeowner with Existing Construction Contract ............................21
4.1.2 Pathway 2: Homeowner Selects Own Contractor .............................................21
4.1.3 Pathway 3: Acquisition .....................................................................................22
4.2 Substantial Damage Determination .............................................................................22
4.2.1 Changing the Status of Substantial Damage Selection .....................................23
5 INSPECTIONS AND ENVIRONMENTAL REVIEW ........................................................23
5.1 Initial Site Inspection ...................................................................................................23
5.2 Environmental Review ................................................................................................24
5.2.1 National Environmental Policy Act (NEPA) .......................................................24
5.2.2 Tiered Reviews ................................................................................................25
5.3 Blackout Period/Stop-Work .........................................................................................25
6 SCOPING AND FEASIBILITY ........................................................................................27
6.1 Rehabilitation ..............................................................................................................27
6.2 Elevation .....................................................................................................................27
6.3 Reconstruction ............................................................................................................28
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6.3.1 Site Condition Determination ............................................................................28
6.3.2 Composite Pricing – Reconstruction .................................................................28
6.3.3 Existing Footprint and Design ...........................................................................28
6.3.4 Reconstruction at a New Address Location ......................................................29
6.4 Cost Estimation ...........................................................................................................29
6.4.1 Cost Estimating Software .................................................................................29
6.4.2 Ineligible Costs .................................................................................................29
6.5 Estimated Cost of Repairs (ECR) ................................................................................30
6.6 Work in Place (WIP) ....................................................................................................31
6.7 Contesting ECR or Work in Place Estimate ................................................................31
6.8 Design Services ..........................................................................................................32
6.8.1 Restrictions ......................................................................................................33
6.9 Construction Standards ..............................................................................................33
6.9.1 Resilience and Mitigation ..................................................................................33
6.9.2 Green Building Requirements ..........................................................................33
6.9.3 Accessibility ......................................................................................................34
6.9.4 Finish Selection ................................................................................................34
6.9.5 Upgrades .........................................................................................................35
6.10 Manufactured Housing ................................................................................................35
6.10.1 Structure Definition ...........................................................................................35
6.10.2 Structure Specific Requirements ......................................................................35
6.10.3 Project Cost: .....................................................................................................36
6.11 Cooperative and Condominium Units ..........................................................................36
7 AWARD ..........................................................................................................................37
7.1 Award Determination and Calculation .........................................................................37
7.1.1 Award ...............................................................................................................37
7.1.2 Maximum Assistance .......................................................................................37
7.1.3 Duplication of Benefits (DOB) ...........................................................................37
7.2 Responsibility of Applicant to Provide Non-Program Funds (NPF) ..............................39
7.2.1 Additional Financing .........................................................................................39
7.2.2 Applicants with No Unmet Need .......................................................................39
7.3 Homeowner Obligations ..............................................................................................40
7.4 Required Agreements for Duplexes and Triplexes ......................................................40
7.5 Duplexes and Triplexes ..............................................................................................40
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7.6 Grant Execution ..........................................................................................................41
7.6.1 Approvals .........................................................................................................41
7.6.2 Grant Agreement ..............................................................................................41
7.7 Recapture of Funds ....................................................................................................42
8 Pre-CONSTRUCTION ....................................................................................................43
8.1 Contractor Selection and Performance .......................................................................43
8.1.1 Contractor Requirements .................................................................................43
8.1.2 HARP Program Applicants Who Change Contractors ......................................43
8.2 Preconstruction Conference & Cost Acceptance .........................................................44
8.2.1 Program Approved Costs .................................................................................44
8.3 Construction Agreements............................................................................................44
8.4 Section 3 .....................................................................................................................45
9 Construction .................................................................................................................46
9.1 Notice to Proceed (NTP) .............................................................................................46
9.1.1 Hazardous Materials ........................................................................................46
9.2 Construction Monitoring, Periodic, and Final Inspections ............................................47
9.2.1 Inspection Types ..............................................................................................48
9.2.2 Failed Inspections ............................................................................................48
9.3 Change Orders and Draw Payments...........................................................................49
9.3.1 Draw Payment Requests ..................................................................................49
9.3.2 Payments .........................................................................................................49
9.3.3 Change Orders .................................................................................................49
9.4 Retainage ...................................................................................................................50
9.5 Warranty .....................................................................................................................50
9.5.1 Rehabilitation ...................................................................................................50
9.5.2 Reconstruction .................................................................................................50
9.6 Construction Disputes .................................................................................................51
10 CLOSEOUT ....................................................................................................................52
10.1 Construction Closeout and Final Inspections ..............................................................52
10.1.1 Duplexes and Triplexes Closeout After Affordability Period ..............................52
10.2 Operations Quality Assurance Review ........................................................................52
10.3 Flood Insurance ..........................................................................................................53
10.4 Application Archive .....................................................................................................53
11 PROGRAM APPEALS, COMPLAINTS, AND GRIEVANCES ........................................53
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11.1 Program Eligibility Appeals .........................................................................................53
11.2 Complaints ..................................................................................................................54
11.3 Section 504 Coordination Complaints and Grievances ...............................................55
11.4 Fair Housing, Support to Non-English Speakers .........................................................55
11.5 Fraud, Waste, and Abuse ...........................................................................................55
12 MONITORING, COMPLIANCE, AND RECORDS MANAGEMENT ................................56
12.1 Program Monitoring ....................................................................................................56
12.2 Compliance .................................................................................................................57
12.3 Conflict of Interest .......................................................................................................58
12.3.1 Applicability ......................................................................................................58
12.3.2 Conflicts Prohibited ..........................................................................................58
12.4 Files, Records, and Reports ........................................................................................59
12.4.1 Procedures for Performance Key Tasks ...........................................................59
12.4.2 Record Retention Compliance ..........................................................................59
12.4.3 Prepare Standard Operating Procedures .........................................................60
12.4.4 Required Records ............................................................................................60
12.4.5 Destruction of Records .....................................................................................61
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Version History and Version Policy
The version history of the policy manual is tracked in the table below, with notes for each
change. The dates of each publication are also tracked in the table.
The State will publish a new version after making substantive changes that reflect a policy
change. The updated policy manual will be assigned a new primary version number such as
2.0, 3.0, etc.
After making non-substantial changes, such as minor wording and editing or clarification of
existing policy that do not affect the interpretation or applicability of the policy, the State will
publish a version of the document with a sequential number increase behind the primary version
number such as 2.1, 2.2, etc.
Amendments made to policy may go into effect on the date of the revision or may be applied
retroactively, depending on the applicant pipeline and status of applicants in the program intake
and recovery process. Whether a policy will be applied proactively or retroactively will be
detailed in the version history below and/or within the relevant program sections.
Version
Number
Date
Revised
Key Revisions
1.0 2.16.2023 Homeowner Assistance and Recovery Policy Manual
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1 PROGRAM OVERVIEW
1.1 Introduction
The Homeowner Assistance and Recovery Program (HARP or Program) is funded
through HUD’s Community Development Block Grant Disaster Recovery (CDBG-DR)
Program. The purpose of this policy manual is to provide guidance for applicants
who are participating in the Program. To understand all provisions within HARP,
applicants are encouraged to read this document in its entirety and reach out to
Program Representatives with any questions. In addition to this document, the DCA
may publish FAQs, program checklists, and other documents to assist in navigating
program participation.
1.2 Program Description
HARP provides grants to eligible homeowners for activities necessary to restore their
storm-damaged homes, including rehabilitation, reconstruction, elevation, and/or
other eligible mitigation activities such as structural and utility retrofits to make
damaged homes more resistant to floods, grading and slope stabilization, and
drainage improvements.
In cases where homes have been substantially damaged, the cost to rehabilitate is
not reasonable, or the home cannot be rehabilitated in a manner to reasonably
accommodate the impacted household, homeowners may be eligible for
reconstruction or property acquisition assistance.
1.3 Funding Sources
1.3.1 Tropical Storm Ida CDBG-DR
The funding for HARP is provided through HUD’s Community Development
Block Grant Disaster Recovery (CDBG-DR) Program, as appropriated by
Congress. Funding for 2021 disasters was appropriated by the Extending
Government Funding and Delivering Emergency Assistance Act of 2021,
Division B, the Disaster Relief Supplemental Appropriations Act of 2022,
Public Law 117-43. CDBG-DR grants are authorized under Title I of the
Housing and Community Development Act of 1974 (HCDA) for necessary
expenses related to disaster relief, long-term recovery, restoration of
infrastructure and housing, and economic revitalization in the most impacted
and distressed areas resulting from a major disaster.
On September 30, 2021, President Biden signed Public Law 117-43 directing
$5 billion to the U.S. Department of Housing and Urban Development for
recovery from disasters in 2020 and 2021. HUD allocated $228.346 million in
CDBG-DR to the State of New Jersey as a result of Tropical Storm Ida that
impacted the state from September 1-3, 2021. Alternative requirements and
waivers for the use of CDBG-DR funds are published in the applicable Federal
Registers, including 87 FR 31636.
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1.3.2 Superstorm Sandy CDBG-DR
HUD allows states to use remaining funds from other disasters to address
current disaster needs in the areas that were impacted by both disasters. This
means the State can leverage unused Superstorm Sandy funding to help
address Tropical Storm Ida needs in these overlapping Sandy impacted
counties:
Bergen
Essex
Hudson
Middlesex
Union
Superstorm Sandy Substantial Action Plan Amendment 48 (APA 48)
reallocates Superstorm Sandy Recovery CDBG-DR funds to certain Ida
recovery programs. This document includes the rules and requirements for
both the Ida and the Sandy funds. The use of Sandy funding is limited to
assist with recovery from Hurricane Ida in counties that were determined by
HUD to be most impacted both in the aftermath of Superstorm Sandy and
Hurricane Ida. This document will indicate if there are specific limitations
around the use of Sandy funding for Ida recovery.
1.4 Program Administration
The Department of Community Affairs (DCA), Division of Disaster Recovery and
Mitigation is responsible for implementing the Program. Some of the key roles
include, but are not limited to:
Program Representatives: Perform application processing, such as
accepting applications, determining eligibility, calculating award
amounts, managing payments, rental assistance and providing
application advisory services to applicants throughout the Program
process.
Construction Managers: Conduct inspections to determine whether
the damaged dwelling can be repaired or must be reconstructed,
develop the scope of work and costs for the project, and authorizing
payments for construction activities. Provide construction-related
guidance, including establishing timelines and progress benchmarks,
ensuring contractors are insured and registered, reviewing existing
scopes of work to help meet program guidelines.
Relocation Specialists: Provide support and guidance to homeowners
and tenants when URA compliance is required.
QA/QC Staff: Performs operational reviews to ensure Program
processes are compliant with policy.
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1.5 Property Owners of Duplexes, Triplexes, and Displaced
Renters
In addition to single family owner-occupied structures, eligible owner-occupants
may apply under HARP if they own properties with up to 3 attached units (duplexes
and triplexes), provided at least one of the units is the owner occupant’s primary
residence and that same applicant owns the attached units. They may be eligible
for assistance to rehabilitate their primary residence and the attached units, if they
agree to meet compliance and affordable rental terms and requirements, which are
described in 3.6.1.
1.6 Uniform Relocation Act (URA)
The URA provides relocation assistance to any person as defined at 49 CFR
24.2(a)(9)(i) that is displaced as a result of a federally assisted project involving
acquisition, demolition, or rehabilitation. Displaced persons include individuals,
households, businesses, non-profits, and persons storing property on site. URA
may apply to those applicants who reside in a Special or Attached Dwelling Unit
and rent out a portion of that residence. Please reference policy 2.10.78 entitled
“Uniform Relocation Act Procedures for the Homeowner’s Assistance and Recovery
Program” for further guidance on the Program’s policy on who is considered
displaced and who meets occupancy requirements, as well as the State’s process
for implementing URA provisions.
In the event a renter is occupying a property participating in HARP, the program will
comply with all URA requirements for notices and applicable services. These may
include, but are not limited to, a minimum fifteen (15) day notice to vacate in an
instance of temporary relocation, replacement housing payments, housing of last
resort, and moving expense payments. Tenants of properties receiving assistance
that results from the funding of a property under the Program may be either
temporarily or permanently displaced. Relocation in the Program is anticipated to
concern primarily temporary relocation activities, meaning renters may return to the
property after the rehabilitation activities are complete. Designated DCA Housing
Recovery staff (Relocation Specialists) will work with each applicant with a tenant-
occupied property to assist property owners in complying with URA requirements.
The Program will comply with the DCA policy on acquisition and relocation and will
minimize displacement, per the State’s Residential Anti-Displacement and
Relocation Assistance Plan (RARAP).
1.7 Reimbursement
Reimbursement of pre-award costs is not allowed; however, the Program will
consider pre-award activities carried out by the homeowner as part of the award
calculation process when calculating duplication of benefits (DOB). Eligible costs
fixed to an enforceable contractual obligation executed prior to the time of
application, even if the costs are accrued on or after the date application is
submitted can be used to reduce the impact of an applicant’s DOB funds. The
homeowner must maintain receipts and other supporting documentation as proof
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that eligible costs are fixed and attributable to the contract executed prior to
application submission. Expenses that can be used to reduce the DOB impact
include:
Repairs
Design Services
Forced mortgage payoffs
1.8 HARP Rental Assistance
1.8.1 Eligibility:
Homeowners who have executed a HARP Grant Agreement and are funded
and active in the program may be eligible for Housing Rental Assistance
(HRA) during the period they are temporarily required to vacate their damaged
property due to rehabilitation, reconstruction, or elevation construction
activities.
1.8.2 Duplication of Benefit (DOB):
Homeowners must certify any rental assistance provided by FEMA or other
third-party charitable organizations prior to HRA funding and monthly as part
of their continued assistance. Any DOB rental assistance received would
reduce the monthly rental assistance amount provided.
1.8.3 Rental Assistance:
Rental assistance is determined by the number of bedrooms available in the
damaged property and the average rent by County as determined by the HUD
FY 2023 Fair Market Rent Summary. The maximum rent per month is capped
by the number of bedrooms in the below chart:
ONE
BEDROOM
TWO
BEDROOM
THREE
BEDROOM
Rent Cap
Month $1,445 $1,754 $2,170
Assistance is not available for past due or previously paid rent, security
deposits or other fees or payments not associated with rent. The bedroom
allowance is determined based upon those existing in the damaged property
and number of household members. The total amount of rental assistance is
in addition to the HARP award for rehabilitation.
1.8.4 Payment Terms:
HRA payments will be made directly to the landlord for approved lease
payments during the eligible period. HRA is available to active, funded HARP
Grant Award applicants with a rental assistance need. HRA is not included in
the HARP grant cap allowance.
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1.8.5 Program Assistance Term:
The eligible activity is interim assistance for up to 24 months upon approval
from HUD which is not required to be continuous.
1.8.6 Funds Disbursement:
Initial documentation required from the applicant to process the initial rental
disbursement (1) copy of an executed lease or rental agreement for a rental
unit located in the State of New Jersey which the applicant, the applicant
spouse or related party to the applicant or spouse cannot have a financial
interest, (2) the rental property must meet HUD Housing Quality Standards
validated by an inspection of the proposed rental property, (c) the applicant
must certify they have not received any DOB assistance.
Initial documentation required from the landlord to process the initial rental
disbursement (1) a completed and signed W-9 form and (2) a bank ACH form
and a void check for the account of the landlord.
1.8.7 Monthly Disbursement:
The HRA applicant must confirm on or by the 20
th
of the month prior to
continued payment (1) they have not received any rental assistance from
FEMA or other third party which amount would reduce the monthly HRA
payment to the landlord and (2) they continue to occupy the rental property as
their temporary primary residence. Monthly certification will be electronic
submission. If the homeowner fails to certify by the 20
th
of each month, an
HRA payment will not be issued until certification is completed.
2 APPLICATION AND PRIORITIES
2.1 Application Process Overview
This section provides an overview of the application process. In this document, the
term “homeowner” and “applicant” will be used interchangeably when referring to
homeowner participants within the Program.
2.1.1 Application Method
Homeowners may submit applications through various methodologies,
including:
Online through https://www.nj.gov/dca/ddrm/
Call 609-292-3750 to receive a paper application and/or schedule an
appointment to complete the application over the phone, virtually or in
person.
The method of application does not affect the applicant’s status or likelihood of
award. Electronic signatures for submitting applications are acceptable. If the
registrant has a power of attorney, the original POA documents must be
provided to the program in person or via certified mail.
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Any applications that are started but not completed and not submitted by the
end of the application period may be withdrawn. The program will make
attempts to contact the applicant to assist with application completion within
this period and prior to the applicant being withdrawn.
2.1.2 Application Period
Applications will be open to all impacted HUD and State MID homeowners
and prioritized in phases. Applications will be placed in phases based on the
prioritization criteria and randomized by an electronic random selection
process in order for processing. This ensures that all applicants are treated
fairly, regardless of application method. For more detail on application phasing
please refer to Section 2.1.3 below.
Selection for processing is not a determination of eligibility or a guarantee of
funds. Eligible applicants not in the initial phase will be placed on a waiting list
to be considered for funding during subsequent funding phases. All awards
are subject to funding availability.
The Program reserves the right to reopen or extend the application period.
2.1.3 Phased Approach
Due to limited funding, DCA will implement the Program through a phased
approach, which is designed to prioritize LMI households. This approach is
aligned with the conditions tied to the federal funding allocation and targets
those survivors with limited resources to help them complete the necessary
repairs, reconstruction, or replacement of their damaged housing. The
information collected during the application process will be verified during
eligibility review and is the basis for determining the phase for the applicant.
However, should application verification result in a phase change, the program
reserves the right to serve the homeowner in the phase in which the
homeowner initially entered the application stage of the program.
To be placed in a phase, homeowners must meet all eligibility criteria and
must have at least 1 foot of flooding or $8,000 in Major/Severe damages, as
determined through the methods described in 3.10.1 Property Damage
Verification section and there is evidence of damage as the direct result of
Tropical Storm Ida.
All assistance is subject to funding availability. Through Phases II and III, the
State reserves the right to add additional priorities based on household
income, age, whether any member of the household has a disability, location,
and whether the property is considered substantially damaged (per FEMA
definition and local jurisdictional determination). “Substantial damage” is
defined as damage of more than fifty percent (50%) of the home’s pre-storm
value.
All applicants must meet income eligibility requirements of an annual
household adjusted gross income of $250,000 or less. The Program will notify
applicants who do not meet program eligibility criteria.
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The table below illustrates the program’s phased approach, and the
subsequent sections provide additional information on the requirements of
each phase.
Application Phases Phase I Phase II Phase III
Household
Income
Less than 80% of
AMI
X X X
80% to 120% of
AMI
X X
120% of AMI up
to $250,000
X
Geography
Most Impacted
N/A
Prioritized Prioritized
Other Impacted
Homeowner Age
62+ AND/OR
Household
Member with a
Disability
Yes
Prioritized Prioritized Prioritized
No
Level of Damage
Substantial
Damage
N/A
Prioritized Prioritized
Moderate
Damage
2.1.3.1 Phase I
Homeowners must meet the following additional criteria to be considered
for Phase I:
Income Requirements
At the time of application, the applicant household’s total annual gross
income is less than 80% of Area Median Income (AMI), see Appendix A,
adjusted for family size for the county where their primary residence is
located.
Geographic Requirements
The impacted home must be located within one of the disaster-declared
counties that were eligible for FEMA Individual Assistance (IA). Those
counties are Bergen, Essex, Gloucester, Hudson, Hunterdon, Mercer,
Middlesex, Morris, Passaic, Somerset, Union, and Warren.
Demographic Criteria
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Priority will be given to homeowners sixty-two (62) years or older and/or
applicants with a household member who is living with a disability. The
applicant residing in the home must be 62 years or older, or attests to
being a person with disabilities, or has a person with disabilities
permanently residing in the household. If an applicant indicates that they
are disabled or a disabled person is a household member, then the
applicant may be required to submit one of the following documents to the
program:
Letter documenting disability or disability assistance from a
government agency
Mobility impaired ID card
Signed verification of disability form by a medical professional
Status of Repairs
Only applicants with remaining repair or reconstruction, eligible elevation
or mitigation work may be eligible to receive assistance.
2.1.3.2 Phase II
Prior to processing Phase II applications, the State will assess funding
availability and remaining unmet recovery needs during the Phase I
application period. Funding for Phase II is subject to funding availability
and the State may further prioritize applicants based on the criteria below.
This document may be updated prior to launching Phase II.
Homeowners must meet the following criteria to be considered for Phase
II:
Income Requirements
At the time of application, the applicant household’s total adjusted gross
annual cannot exceed 120% of Area Median Income (AMI), adjusted for
family size for the county where their primary residence is located.
Geographic Requirements
The impacted home must be located within one of the disaster-declared
counties that were eligible for FEMA Individual Assistance (IA).
The State may prioritize properties located in one of the HUD Most
Impacted and Distressed (MID) areas of Bergen, Essex, Hudson,
Middlesex, Passaic, Somerset, and Union counties.
Demographic Criteria
The State may prioritize homeowners sixty-two (62) years or older and/or
applicants with a household member who is living with a disability. The
applicant residing in the home must be 62 years or older, or attests to
being a person with disabilities, or has a person with disabilities
permanently residing in the household.. If an applicant indicates that they
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are disabled or a disabled person is a household member, then the
applicant may be required to submit one of the following documents to the
program:
Letter documenting disability or disability assistance from a
government agency
Mobility impaired ID card
Signed verification of disability form by a medical professional
Status of Repairs
Only applicants with remaining rehabilitation or reconstruction work may
be eligible to receive assistance.
Level of Damage
The State may prioritize applicants considered to be substantially
damaged by their local jurisdiction and/or the State. Homes considered to
be substantially damaged are those with damages amounting to more
than 50% of the pre-storm value of the structure.
2.1.3.3 Phase III
Prior to processing Phase III applications, the State will assess funding
availability and remaining unmet recovery needs during the Phase I and II
application periods. Funding for Phase III is subject to funding availability
and the State may further prioritize applicants based on the criteria below.
This document may be updated prior to launching Phase III.
Homeowners must meet the following criteria to be considered for Phase
III:
Income Requirements
At the time of application, the applicant household’s total adjusted gross
annual income cannot exceed $250,000.
Geographic Requirements
The impacted home must be located within one of the disaster-declared
counties that were eligible for FEMA Individual Assistance (IA).
The State may prioritize properties located in one of the HUD Most
Impacted and Distressed (MID) areas of Bergen, Essex, Hudson,
Middlesex, Passaic, Somerset, and Union counties.
Demographic Criteria
The State may prioritize homeowners sixty-two (62) years or older and/or
applicants with a household member who is living with a disability. The
applicant residing in the home must be 62 years or older, or attests to
being a person with disabilities, or has a person with disabilities
permanently residing in the household.. If an applicant indicates that they
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are disabled or a disabled person is a household member, then the
applicant may be required to submit one of the following documents to the
program:
Letter documenting disability or disability assistance from a
government agency
Mobility impaired ID card
Signed verification of disability form by a medical professional
Status of Repairs
Only applicants with remaining repair or reconstruction work may be
eligible to receive assistance.
Level of Damage
The State may prioritize applicants considered to be substantially
damaged by their local jurisdiction and/or the State.
2.1.4 Application Waitlist
The applicants who do not qualify for Phase I will be waitlisted. If the Program
opens for Phases II and III, the State may also follow a randomization
process. Applicants who have successfully applied will be notified of their
program status.
2.2 Housing Counseling and Legal Services
Housing counseling and legal services are available at no cost to impacted
residents, vulnerable populations, and members of underserved communities to
expedite their recovery. These services will provide application, documentation, and
long-term housing planning wraparound and referral services that may be needed
for vulnerable populations as they continue their recovery, including survivors who
are not experiencing homelessness but require supportive housing (e.g., elderly,
frail elderly, persons with disabilities [mental, physical, developmental], formerly
incarcerated persons), victims of domestic violence, persons with alcohol or other
substance-use disorder, persons with HIV/AIDS and their families, and public
housing residents.
Housing counseling organizations may provide supportive services, including, but
not limited to, foreclosure prevention, homebuyer financial counseling, relocation
advisory services, debt management, and assistance with application intake for
CDBG-DR-funded programs. The services also may provide support to navigate
insurance requirements, State programs, application submittal, and any technology
gaps.
Legal services will be carried out through qualified legal services providers to
deliver recovery-related legal counseling such as working through insurance claims;
clearing property titles; working through heirship and probate; fighting unlawful
evictions and foreclosures; combating contractor scams, disputes, and fraud;
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assistance with school transfers; and other legal services needed for applicants to
complete their recovery.
Housing and legal counseling services are required for applicants who meet the
following criteria:
Owners of duplexes and triplexes who rent housing at affordable
rates to income-qualified tenants. These applicants will receive training
on fair housing requirements and compliance requirements for meeting
the affordable rental requirements. Applicants may also receive financial
counseling to ensure they can maintain their properties for the duration of
the affordability period.
Applicants who are going through a property foreclosure process.
Applicants will complete housing counseling to assess their options for
retaining their home. The housing counselor will calculate the applicant’s
debt-to-income ratio and provide this information to the program. The
program will then determine whether the application is a viable project
based on the homeowner’s ability to maintain the property through
completion of construction and meeting occupancy requirements
(program closeout). Applicants who are unable to demonstrate they can
maintain their property through program closeout may not be eligible to
proceed through the Program.
Applicants to multiple recovery, elevation, or buyout programs.
Some CDBG-DR, state and federal recovery or mitigation programs do
not allow applicants to receive assistance from other recovery or
mitigation programs. This provision typically relates to a cost
reasonableness determination, rather than a duplication of benefits
analysis (e.g., an applicant may not receive HARP assistance to
rehabilitate their home and participate in a buyout program that will
demolish the rehabilitated home). In such cases, applicants may have to
choose one program over another. Applicants will receive housing
counseling services to ensure they understand their options and potential
benefits under each of the programs. This will allow them to make an
informed decision that is best for their household prior to withdrawing
from one of the programs.
2.3 Withdrawn Applications
If an applicant chooses to voluntarily withdraw or is administratively withdrawn from
the Program, the applicant is required to return ALL previously disbursed grant
award funds back to the Program.
2.3.1 Voluntary Withdrawals
Applications may be withdrawn by an applicant at any time. Applicants who
wish to withdraw must clearly provide a written notice of their intent to
voluntarily withdraw and return any CDBG-DR funds. DCA will send the
applicant a written notice of acknowledgment of voluntary withdrawal.
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2.3.2 Administrative Withdrawals
Applications may be administratively withdrawn for some of the following
reasons:
Any applicants that fail to provide required documentation or information
within the deadline described in the written request. Applicants will
receive a notice giving them fifteen (15) days to provide the required
information.
The program confirms that an application is a duplication of another valid
application or conflicting Program such as the Blue Acres Buyout
Program or the Hazard Mitigation Grant Program (HMGP).
Applicants that are being considered for buyouts from the state will be
treated in accordance with the Blue Acres policy.
An applicant is determined to have provided false or misleading
information.
An applicant becomes unresponsive.
An applicant is aggressive and/or abusive as described in the definitions
section to a DCA employee or any other representative or affiliate of the
Program, including, but not limited to, Program Representatives.
2.3.3 Withdrawal Reinstatement Requests
Applicants who have been withdrawn from the Program may submit a written
request for reinstatement, based on extenuating circumstances. The request
will be reviewed and approved by DCA on a case-by-case basis. DCA will
consider an applicant’s responsiveness to Program correspondence or
requests for documentation when making the reinstatement determination as
well as the applicant’s ability to complete the project.
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3 ELIGIBILITY
3.1 National Objectives
Per 87 FR 31636, HUD requires States to comply with the overall benefit
requirements in the Housing and Community Development Act of 1974 (HCDA) and
24 CFR 570.484, 24 CFR 570.200(a)(3), and 24 CFR 1003.208, which require that
70 percent (70%) of funds be used for activities that benefit low- and moderate-
income persons. To meet that requirement, this program will primarily use the Low-
Moderate Income Persons and Households national objective. The program may
use the Urgent Need National Objective to provide assistance to eligible disaster-
impacted applicants with incomes greater than 80% of AMI.
3.2 Eligible Structures
Owner-occupied units of single-family homes, duplexes, triplexes, townhomes,
modular homes, manufactured homes, and condominiums are eligible for the
Program. Recreational Vehicles (RV), house boats, and campers are not eligible,
even if the applicant occupied one of these as a primary residence. In
circumstances where the property contains multiple detached residential structures,
Program funds may only be obligated for eligible work associated with the primary
residence.
Any owner-occupied single-use or mixed-used structure that contains four (4) or
more units or that is primarily used as a business, such as motels, inns or bed and
breakfasts, or commercial enterprises are not eligible for the Program.
3.3 Eligible Activities
To meet the unmet housing recovery and resilience needs of each eligible
applicant, DCA may include a variety of eligible homeowner assistance and
recovery program activities. DCA will provide the awards necessary to repair,
reconstruct, acquire, or replace the damaged property per program guidelines.
Incentives also may be required to help applicants relocate if their property is
acquired through HARP. Properties located in a SFHA, or high-risk flood area
defined by DEP, will be required to elevate their properties to Design Flood
Elevation (DFE).
Eligible costs also include demolition and removal of the original structure, if
needed.
In addition, funds may be provided to address site-specific accessibility needs,
infrastructure repairs, site remediation, elevation, rental assistance, and resilience
and mitigation measures.
Eligible activities will be further detailed in the program guidelines, which will be
available on the DCA website.
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3.4 Applicant Eligibility
Eligible structures and owners must meet the following criteria:
One of the units must have been the applicant’s primary residence at the
time of the disaster.
The property owner must have occupied one of the units at the time of the
disaster and own the property at the time of application.
Owner occupied home must have at least 1 foot of flooding or $8,000 in
damages to the primary residence, as determined by FEMA or a program
damage assessment.
Owner occupied home must be in HUD or State MIDs.
Non-owner-occupied units are eligible for assistance under the Program if the
homeowner agrees to rent all units on the property affordably for LMI households per
the provisions below.
3.4.1 Lawful Presence
DCA will determine lawful presence by the supporting documents discussed
throughout this policy that are also needed to verify ownership and income
eligibility. Those documents include but are not limited to the following:
New Jersey driver’s license or New Jersey non-driver identification card
Federal tax return documents for 2020 and 2021.
Social Security or Tax I.D number card
DCA reserves the right to request additional information if necessary.
3.5 Ownership
The property owner must have occupied the home at the time of the disaster and
own the property at the time of application. An individual with Power of Attorney
(POA) for the owner occupant may complete the application on the applicant’s
behalf. The home must have been the applicant’s primary residence at the time of
the disaster. Allowable ownership arrangements include traditional fee simple
ownership, cooperative and condominium, and ownership of a residence on leased
land. non-owner-occupied units (duplexes and triplexes) attached to owner-
occupied units are eligible for assistance under the Program if the homeowner
agrees to rent all funded units affordably for LMI households per program terms
and conditions.
Individuals with an ownership interest in the property who are not owner/occupants
are not eligible.
3.5.1 Verification of Ownership
Whenever possible, ownership will be verified by title searches in public
records. If ownership cannot be verified through a public title search,
applicants will be asked to provide appropriate documents.
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Acceptable documentation:
Property tax records for the years 2020 and 2021 or 2022 that show the
applicant occupied the property at the time of the storm and owns the
property at the time of application or,
Deeds or other legal documents will be reviewed on a case-by-case
basis, or
For applicants living in Manufactured Housing Units, (“MHUs”), both land
lease and title documentation, or equivalent.
3.6 Other Special Ownership Circumstances
DCA will consider special circumstances related to ownership on a case-by-case
basis and revise this policy, as needed. The following special policies have been
established:
3.6.1 Owner Occupants with Attached Rental Properties
(Duplex and Triplexes)
In the case of structures that contain an owner-occupied unit and up to two
rental units (duplexes and triplexes), the property owner may submit a HARP
application for the owner-occupied unit and for the rental unit(s). In such
cases, the applicant must apply for the repairs for the rental units through the
Program and agree to meet affordability terms for low- and moderate-income
tenants for all funded rental units and complete all mandatory housing
counseling. URA requirements apply to the rental units including notice
requirements to existing and prospective tenants and appropriate relocation
assistance to displaced households. For the construction process please refer
to Section 4. When an applicant lives in a duplex or triplex and owns all of the
units, the homeowner is required to rehabilitate the owner-occupied unit and
the attached rental unit(s). The attached rental unit(s) is(are) also eligible
under HARP if the applicant commits to renting all units as affordable units to
an LMI household for a defined period of time, consistent with the affordability
periods.
3.6.1.1 Affordability Periods for Rental Units
When an impacted homeowner lives in a duplex or triplex and owns the
owner-occupied unit and the attached rental unit(s), the homeowner is
required to rehabilitate the owner-occupied unit and the attached rental
unit(s) in accordance with local code requirements. The attached rental
unit(s) is(are) also eligible for assistance under the Program if the
applicant commits to rent all funded rental units as affordable to an LMI
household for a defined period of time, consistent with the amount of
assistance received per unit, per the affordability periods outlined below.
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Homeownership Assistance Amount
per Rental Unit
Minimum Period of Affordability in
Years
Under $15,000 1
$15,000 to $50,000 3
DCA will ensure that affordability restrictions are enforceable and
imposed by recorded deed restrictions, covenants, property liens,
personal guarantees, bylaws, and/or other similar mechanisms.
3.6.1.2 Ownership and Occupancy of Duplexes and Triplexes
Single owner: Applicants who own and occupy one unit of a duplex and
rent the other unit(s) are eligible for the program. The owner of the
structure must be an owner-occupant of at least one unit. Structures
where all units are used for rental purposes, and the owner is not an
occupant of at least one unit, are not eligible. Eligible applicants will be
allowed to use funds to repair or reconstruct all units.
Multiple Owners: In situations where there are different owners for each
unit, DCA will evaluate the structures on a case-by-case basis. All owners
must be willing and eligible applicants.
Tenants: If at the time of application, the damaged rental units of the
duplex or triplex are vacant, then they must remain vacant until the
completion of construction, otherwise the property is not eligible for
assistance. Applicants are prohibited from evicting existing tenants in
order to apply for assistance. Any applicant found to have evicted a
tenant to participate in the program will be ineligible for assistance and is
responsible for any damages sustained by the evicted tenant, including
any temporary relocation costs.
3.6.2 Foreclosures
Applicants whose homes have been foreclosed are not eligible for Program
assistance, however if they are in the process of a foreclosure DCA will
evaluate those properties for eligibility. The following applies to those
homeowners that are in the foreclosure process:
• Mortgage should be brought current and the lis pendens removed;
• Applicants are required to participate in Housing Counseling; and
• Applicants must demonstrate their ability to retain ownership of the
home throughout the completion of the project.
3.6.3 Death of Owner Occupant
If the owner of record at the time of the storm has died prior to application and
or grant agreement, another person who occupied the residence at the time of
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the storm and in legal possession of the property is eligible for the Program if
they otherwise meet the eligibility requirements.
Should death occur to an applicant post-grant award, the heirs are eligible to
receive the balance of the grant award in order to complete the project but
have no requirement to re-occupy the home.
3.6.4 Owner Occupants who have Sold their Homes
Applicants who have sold their storm damaged homes are not eligible for
assistance under the Program, and eligibility does not transfer to the new
owner.
3.6.5 Limited Liability Company (LLC) and Limited Liability
Partnership (LLP)
In those instances, in which title to the damaged property may be held by a
Limited Liability Company (LLC) or a Limited Liability Partnership (LLP), the
applicant must establish that the LLC or LLP was formed for estate planning
purposes or liability concerns. Ownership must be established by providing all
necessary information, including but not limited to, certificate of formation, tax
returns for the company or partnership, operating agreement, and a certificate
of good standing. Each LLC or LLP will be evaluated by DCA on a case-by-
case basis for program compliance. If the sole purpose or reason for forming
either a LLC or LLP is for a business purpose or venture, then the applicant
would be deemed ineligible.
3.7 Occupancy and Primary Residency
Applicants must have occupied the property as their primary residence on the date
of the storm (September 1, 2021). Second homes, vacation homes, and rental
properties are not eligible for a program grant award. Verification of primary
residence is determined through evaluation of multiple data sources and
documents. The preferred verification is a New Jersey driver’s license or New
Jersey non-driver identification card dated prior to the date of the storm which
shows the damaged residence as the applicant’s address.
Alternative documentation will be considered if the primary residence cannot be
confirmed as above. If an applicant is unable to provide New Jersey driver’s license
or non-driver identification card the applicant must present at least two of the
following documents as verification of proof of primary residence:
FEMA records showing that the applicant reported to FEMA that the
property was the applicant’s primary residence at the time of the storm;
Federal tax return documents for 2020 and 2021 indicating damaged
residence is primary residence.
Voter registration card showing the damaged residence.
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3.8 Definition of a Second Home
Per the requirements in the Consolidated Notice 87 FR 31636, properties that
served as second homes at the time of the disaster, or following the disaster, are
not eligible for assistance for rehabilitation, reconstruction, new construction,
replacement, or incentives. A second home is defined as a home that is not the
primary residence of the owner, a tenant, or any occupant at the time of the
disaster or at the time of application for CDBG-DR assistance.
3.9 Income Verification
Income is used to classify households as either LMI households or non-LMI
households based upon the income limits published by HUD. Income is also used
to determine under which program phase an applicant qualifies.
Income of all household members are evaluated when determining phasing and
eligibility.
The following persons are considered household members:
All adult household members living in the unit except live-in aides and
foster adults.
All children living in the unit except foster children. Children who are in the
process of being adopted are included. Children who occupy the unit at
least fifty percent (50%) of the time under a shared custody agreement
are counted. Children who are away at school but live in the household
during school recesses are included.
Guests or others staying in the unit on a temporary basis are not counted
as household members.
The income definition used for the Program is the definition of annual income as
defined by IRS Adjusted Gross Income. Applicants certify to total household income
on the application. In the event that a copy of one of the federal tax returns is not
available or if the homeowner’s projected 2022 income will exceed their 2021
income, income will need to be determined by providing one or more documents for
each of the following income determination inclusions. Note that this documentation
is only required if known income for 2022 will exceed the income stated on the
applicant’s 2021 tax return or the applicant does not file a federal tax return. For
proof of household income, applicants must provide both of the following:
Signed Income Certification Form (Appendix B) for your entire household
and;
Most recent Federal Tax Return for each household member who files
taxes.
Upon verification, applications from applicants whose income category have
changed from LMI to non-LMI will be reevaluated to determine when the application
can be processed based upon non-LMI status. Applicants whose household income
exceeds $250,000 at the time of the application are ineligible for Program.
Applicants will be notified in writing of their ineligibility and offered an opportunity to
appeal the decision in accordance with the appeals policy.
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Note: LMI income limits are published annually by HUD. Please refer to Appendix A:
HUD Income Limits for the most recent income limits.
3.10 Property Damage
Applicants must be able to document the property sustained the minimum level
of damages as described below.
3.10.1 Property Damage Verification
If FEMA records do not confirm the minimum level of damage, inspection
data from the Small Business Administration (SBA) will be reviewed to
determine if those records indicate an eligible level of damage. If data from
these sources do not confirm the minimum level of damage, the applicant
will have an opportunity to submit information from acceptable third-party
sources such as those noted below. If not submitted, the applicant may be
determined ineligible. Applicants will be notified in writing and offered an
opportunity to appeal in accordance with the appeals policy.
Applicants must submit one of the one of the following documents to
evidence proof of more than eight thousand dollars ($8,000) in
damages or greater than one (1) foot of flooding to the first floor living
area of the dwelling: National Flood Insurance Program (NFIP) Proof
of Loss Claim/Assessment;
Insurance Adjuster Estimate (IAE) from private homeowner’s
insurance;
SBA damage assessment for $8,000 or more; or;
Letter from local township demonstrating $8,000 or greater in damage
or excess of one (1) foot of flooding to the first floor living area of the
dwelling.
3.11 Other Flood Insurance Requirements
Flood Insurance Requirements for Applicants Receiving Prior Disaster
Assistance
In accordance with the Stafford Act, applicants that previously received disaster
recovery assistance after September 14, 1994, are required to obtain and
maintain adequate and necessary flood insurance coverage. DCA will verify prior
to executing a grant award that any applicant that has received prior disaster
recovery assistance has maintained flood insurance, if required. Applicants will
be asked as part of their eligibility verification:
If the property has received any flood event related assistance for
damage to this property from any Federal source for any previous
Presidentially declared disaster (occurring after September 14, 1994) that
required the mandatory purchase of flood insurance pursuant to National
Flood Insurance Program (NFIP) regulations.
Which flood disaster event applicant received federal funds for.
The amount of federal assistance related to flood that was received.
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If applicant carried flood insurance at the time of Tropical Storm Ida
If the insurance coverage is currently in effect.
If the applicant is determined to have received prior federal disaster recovery
assistance and has failed to maintain the adequate and necessary flood
insurance, applicant will be deemed ineligible for the Program.
Communities in the Special Flood Hazard Area
Assistance for the rehabilitation or reconstruction of a home in the SFHA in
communities that do not participate in the National Flood Insurance Program
(NFIP) are not eligible for this Program because they are prohibited to receive
federal assistance. Those communities not eligible to participate in the program
are:
Alpine Borough
Audubon Park Borough
Englewood Cliffs Borough
Fieldsboro Borough
Hi-Nella Borough
Newfield Borough
Applicants over 120% AMI located in the SFHA without Flood Insurance
Per HUD requirements in the Consolidated Notice 87 FR 31636, applicants are
ineligible for the rehabilitation or reconstruction of a home, and are therefore
ineligible for HARP if all the following are true:
The combined household income is greater than either 120 percent of
AMI or the national median
The property was located in a floodplain at the time of the disaster
The property owner did not obtain and maintain flood insurance on the
damaged property, even when the property owner was not required to
obtain and maintain such insurance
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4 CONSTRUCTION CONTRACT AND
PATHWAYS
4.1 Initial Pathway Assessment
Once eligibility is preliminarily determined, this section serves to provide the
applicant with additional information about the Program and their program pathway.
DCA Construction Managers will ensure compliance with all state, local, and federal
regulations and guidelines through project completion.
4.1.1 Pathway 1: Homeowner with Existing Construction
Contract
In the situation that a homeowner is already under contract for rehabilitation,
the Program will provide the homeowner with the contract requirements
necessary to participate. A contract addendum will be provided to the
applicant and must be executed with their builder to receive HARP funding.
Homeowners are responsible for hiring licensed contractors to perform lead
remediation and abatement. DCA will verify the contractors are properly
licensed and help ensure that contractors perform the work in compliance with
all applicable rules, regulations, and statutes incorporated in the contract
addendum.
To expedite the release of funds, the homeowner should provide
documentation of work in place completed prior to the initial site inspection.
Even though reimbursement costs are not eligible, applicants that have
already begun repairs on their disaster damaged home may be eligible to
receive credits for the work performed as part of the award calculation process
as a reduction of DOB. Homeowners are precluded from acting as their own
general contractors. Applicants are financially responsible for any and all
upgrades and change orders that are not within the approved scope of work.
4.1.2 Pathway 2: Homeowner Selects Own Contractor
Homeowners are able to hire registered and insured builders of their choice to
perform the construction on their projects or engage with manufactured home
dealers or sellers directly to purchase their replacement home. Homeowners
are precluded from acting as their own general contractors.
Once a contractor is selected and has provided a quote for the scope of work,
the Program will verify that costs are necessary and reasonable compared to
the estimated cost of repairs. If contractor quote is outside the estimated cost
of repairs, additional steps will be taken to justify the costs, the homeowner
may select a different contractor, or homeowner will pay for costs above those
deemed necessary and reasonable
All projects receiving elevation and/or reconstruction assistance will be
required to use DCA-provided services to develop their project scopes of
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work. The State will procure a pool of individual design firms who will prepare
the geotechnical, engineering, architectural, and/or other design components
to be provided to the applicant prior to them selecting their own contractor(s).
Applicants who are rehabilitating their homes may ask for DCA feasibility and
design support. Applicants are financially responsible for any and all upgrades
and change orders that are not within the approved scope of work.
To expedite the release of funds, the homeowner should provide
documentation of work in place completed prior to the initial site inspection.
Even though reimbursement costs are not eligible, applicants that have
already begun repairs on their disaster damaged home may be eligible to
receive credits for the work performed as part of the award calculation process
as a reduction of DOB.
For homeowners that have a need for further assistance with the construction
process, the Program may coordinate with entities such as the New Jersey
Builder’s Association to curate a list of contractors the homeowner can select.
The State will actively assist homeowners with contract execution, payment
terms, performance requirements, and managing construction through project
completion and compliant with all state, local, and federal requirements.
4.1.3 Pathway 3: Acquisition
This is not a pathway that an applicant may choose; DCA may offer to acquire
the property from the applicant at current fair market value only in the event
that rehabilitation and/or elevation of the property cannot reasonably
accommodate existing occupants that may be part of vulnerable populations
such as the elderly, frail, persons with disabilities [mental, physical,
developmental], and others as defined in the Action Plan or if the cost of
rehabilitation of a property is not reasonable as determined by the Program,
Applicants also may qualify for incentives to relocate to a lower risk area. The
State will not exercise its power to acquire properties through the use of
eminent domain, adjudication or other involuntary acquisition processes.
Acquisition awards are limited to the current fair market value of the property,
which is determined at the time the Program performs the appraisal of a
property. All awards are subject to the Robert T. Stafford Act, requiring that all
funds used for the same purpose as the CDBG-DR award be deducted as a
duplication of benefit.
4.2 Substantial Damage Determination
“Substantial damage” is defined as damage of more than fifty percent (50%) of the
home’s pre-storm value. Applicants who stated on their application that their home
was “substantially damaged” will be prioritized during Phases II and III. Once
substantially damaged properties have been addressed in the applicable Phase,
subject to funding availability, non-substantially damaged properties will then be
processed in the applicable phases.
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All substantially damaged properties and substantially improved properties located
in the Special Flood Hazard Area are required to elevate to the Design Flood
Elevation as defined by DEP.
Applicants who are funded as “non-substantially damaged” will be required to
elevate under the following circumstances:
The applicant subsequently receives a substantial damage determination by
their floodplain manager for the property, or
The Program determines the property to be substantially damaged
(improved) through an assessment.
4.2.1 Changing the Status of Substantial Damage Selection
Applicants who stated on their application and provided a substantial
damaged letter but upon being funded, claim their home is “non-substantially
damaged,” may be required to provide a letter from their local floodplain
manager verifying the structure is not substantially damaged. These
applicants may also be moved to Phase II or III and will be notified when the
funding is available to proceed with the project.
5 INSPECTIONS AND ENVIRONMENTAL
REVIEW
5.1 Initial Site Inspection
The purpose of the Initial Site Inspection (ISI) is to confirm existing site conditions,
to make property eligibility determinations, establish project feasibility and scope,
and to confirm substantial damage conditions.
Applicant and property information will be made available to the Inspectors
performing the site visit. This section outlines the policy that the Division will use
when performing an ISI and related work, including the development of cost
estimates for work performed prior to the ISI and work remaining, assessment of
lead paint, asbestos, mold hazards, and program environmental reviews conducted
on the property. The ISI and related work may be conducted over several site visits.
The ISI and related work are composed of the following:
1. Construction Managers will perform an inspection to determine the scope of
work remaining in accordance with inspection protocols and program
specifications. This inspection will result in a feasibility determination of
either reconstruction, rehabilitation, and/or elevation.
2. For Work in Place (WIP) completed by the applicant for use in the
Duplication of Benefits determination the Construction Managers will
determine the scope and quality of any eligible completed repairs. To verify
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the WIP, homeowners will be required to provide copies of invoices,
contracts and/or receipts.
3. Licensed lead inspectors and/or risk assessors will be procured to perform
assessments for lead hazards.
4. Contractors will be procured to perform an environmental review.
5. The Department will not use destructive testing methods during the site
inspection process to assess or determine storm damage. Count, measure,
and observe methodology will be used by the assessor during the site visit
to document existing conditions and scope of work.
5.2 Environmental Review
5.2.1 National Environmental Policy Act (NEPA)
This section is intended to describe the approach to compliance with the
National Environmental Policy Act (NEPA) for the Program. The Program is
funded by Community Development Block Grant (CDBG) Disaster Recovery
funds awarded to the New Jersey Department of Community Affairs (DCA) by
the U.S. Department of Housing and Urban Development (HUD), thereby
triggering the applicability of NEPA.
The NEPA process consists of an evaluation of the environmental effects of a
federally proposed action and its alternatives. There are three levels of
analysis: categorical exclusion, Environmental Assessment (EA), and
Environmental Impact Statement (EIS).
Categorical Exclusion: An undertaking may be categorically excluded
from a detailed environmental analysis if a federal agency has previously
determined that the action typically has no significant environmental
impact, and they have included the action in a list of exclusion categories
in their NEPA implementing regulations. A list of activities identified by
HUD as categorically excluded from detailed NEPA review can be found
at 24 CFR Part 58.35.
EA: Environmental Assessment. The second level of analysis under
NEPA is an EA, which is prepared to determine if a federal action would
have a significant effect on the environment. If the answer is no, the
agency issues a Finding of No Significant Impact (FONSI). The FONSI
may include mitigation measures that are required to mitigate
environmental impacts, so they are less than significant.
EIS: Environmental Impact Statement. An EIS is a more detailed
evaluation of the potential environmental effects of the proposed action
and alternatives. An EIS can be prepared following the completion of an
EA or, if a federal agency anticipates that an undertaking may
significantly impact the environment, they may choose to prepare an EIS
without having to first prepare an EA. The decision document for the EIS
is a Record of Decision (ROD), which states the agency’s decision and
how the findings of the EIS, including consideration of alternatives,
mitigation measures, and agency and stakeholder input were
incorporated into the agency's decision-making process.
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5.2.2 Tiered Reviews
DCA has employed a tiered approach to NEPA compliance for the Program.
With a tiered approach, the “action” is evaluated at various stages in the
development process as more information is available for environmental
assessment or review. This approach is consistent with and detailed in the
“Environmental Review Procedures for Entities Assuming HUD Environmental
Responsibilities,” 24 CFR 58, specifically 24 CFR 58.15 (Tiering) and 24 CFR
58.32 (Project Aggregation).
As the first step, or Tier I level of review, an EA will be completed for the
Program for the HUD and State MID counties (Bergen, Essex, Gloucester,
Hudson, Hunterdon, Mercer, Middlesex, Morris, Passaic, Somerset, Union,
and Warren.). Tier 2 environmental reviews will be conducted for each
property being evaluated under the Program. The Tier 2 reviews will be
conducted by a contracted consultant that is selected through DCA’s
procurement process. The Tier 2 reviews will identify sites with specific
environmental issues requiring a site visit or additional agency consultation
and will be documented in an Environmental Review Record (ERR). The Tier
2 reviews will be conducted in a manner that satisfies the requirements of
NEPA and HUD’s NEPA implementing regulations (24 CFR 58).
In addition, the reviews will address compliance with all other relevant Federal
environmental laws, regulations, and Executive Orders (EO), such as the
National Historic Preservation Act, EOs 11988 – Floodplain Management, EO
11990 – Protection of Wetlands, and EO 12898 – Environmental Justice.
Relevant State regulations and permitting requirements will also be
addressed, such as State Executive Order #215. NJDEP will also coordinate
and facilitate any required environmental permitting. The environmental review
may identify the need for environmental mitigation measures to be
incorporated into the scope of work for the proposed action or for the action to
be redesigned to avoid certain environmental impacts.
No reconstruction, rehabilitation, elevation, or mitigation work, or
reimbursement can begin until the Tier 1 environmental reviews have been
completed and Authorization to Use Grant Funds (AUGF) received, and the
Tier 2 ERR has been completed and approved for the subject property.
Construction activities must be performed in a manner that fully complies with
any requirements identified in the Tier 2 review. DCA Construction and
Monitoring Teams will ensure compliance.
5.3 Blackout Period/Stop-Work
“Blackout” or “stop-work” refers to the period of time from the application date
through the completed environmental review where no work should be performed in
relation to the home. Work performed during this period may not be eligible for
inclusion within the WIP or ECR and/or may result in the project being ineligible to
proceed within the Program. All applicants are required to stop any repair,
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reconstruction, or replacement activities in process if notified to do so by the
Program. If issued, the stop work order must be followed until the environmental
review process is completed.
Exceptions to the “stop-work requirement” may be allowed in the event an applicant
entered a written contract with a contractor prior to applying to the Program. In such
cases, the applicant may be allowed to continue the work outlined in the written
contract, as it was described and executed prior to the homeowner’s application to
the Program. However, in such cases an applicant may not enter into new
contracts, engage additional laborers, execute any change orders to existing
contracts, or purchase materials after application to the Program and prior to
completion of an environmental review.
Failure to comply with the “stop-work requirement” or eligible exceptions to the
“stop-work requirement” may result in an applicant’s ineligibility for all or partial
Program funding. Applicants should consult with a Program Representative prior to
making any additional contract decisions during the mandatory blackout/stop-work
period.
Applicants that have submitted an application to the Program, but do not adhere to
the guidance above, are at risk of not being eligible for funding.
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6 SCOPING AND FEASIBILITY
Project scoping uses information gathered during the Initial Site Inspection (ISI) to
establish the Total Development Cost (TDC). The TDC consists of the costs to facilitate
all eligible scopes of work for rehabilitation since the storm. Included in the TDC is the
Work in Place (WIP), and eligible scope of work remaining to rehabilitate or reconstruct
the home. This information is used in developing the Estimated Cost to Repair (ECR),
determining the project’s feasibility, for discussions with the applicant, and in calculating
the program award.
6.1 Rehabilitation
Homes that are eligible to be considered for rehabilitation are those that have not
been determined to be substantially damaged or whose remaining repairs do not
constitute substantial improvement. If the home is substantially damaged or the
scope constitutes substantial improvement, then the home must be elevated to
Design Flood Elevation to be considered for rehabilitation.
DCA may provide a feasibility cost estimate and design support to ensure that the
structure/site is brought into compliance with state and local building codes,
standards, ordinances, HUD Green Building standards, Minimum Housing
Rehabilitation Standards, and Program standards. Feasibility cost estimate details
can be found in Section 6.5 Estimated Cost of Repairs (ECR).
At DCA’s discretion and in limited instances, rehabilitation may also take place on
structures whose remaining repairs exceed the substantial improvement threshold.
If homes cannot be rehabilitated in place under existing agency policies and award
caps due to legal, engineering, or environmental constraints, such as permitting,
extraordinary site conditions, or historic preservation, the Program may consider
reconstruction, or acquisition.
6.2 Elevation
Substantially damaged and substantially improved properties in the Special Flood
Hazard Area or other areas designated by the State, are required to elevate and
are eligible for elevation assistance through HARP. All projects receiving elevation
assistance will be required to use DCA-provided design and engineering services to
develop the project scope of work.
If program funds allow, elevation assistance may be offered to other program
participants who are interested in elevating their property. These instances will be
reviewed on a case-by-case basis.
All properties requiring elevation will be designed such that the lowest habitable
floor is elevated to the Design Flood Elevation (DFE) determined by the
Department of Environmental Protection, minimum Base Flood Elevation (BFE)
plus three (3) feet, or as required by the local jurisdiction, whichever is highest.
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The cost of elevation will be included as part of the overall cost of rehabilitation or
replacement of a property. Costs may vary depending upon location, size of the
unit, and the height to which the property must be elevated.
6.3 Reconstruction
Program funds may be used to rebuild damaged or destroyed structures if any of
these conditions apply:
The property is declared a total loss.
Repairs would exceed 50% of the cost of reconstruction.
Repairs would exceed 50% of the pre-disaster fair market value.
Reconstruction estimates are the only type of estimate performed when a home is
unsafe to enter or has been demolished or partially demolished.
6.3.1 Site Condition Determination
6.3.1.1 Unsafe Conditions
Unsafe conditions include but are not limited to:
Structures whose load bearing walls, columns, or other support
components have been compromised as evidenced by a licensed
designed professional;
Structures that have strong industrial or chemical odors or vapors
emanating from the home; or
Structures that have been marked by the local municipality or fire
authority as being unsafe to enter.
6.3.1.2 Demolished structures
If a structure has been demolished or partially demolished, a
reconstruction estimate is the only eligible approach.
6.3.2 Composite Pricing – Reconstruction
Cost estimates are derived from the Program standard model house plan.
These standard cost estimates will establish the basis for the amount the
applicant is eligible to receive to reconstruct the home. Note that this is not the
same as the cost that the applicant would incur if they were to rebuild their
existing home with the existing finishes. It is the allowable costs established
by the Program to rebuild the home that will meet HUD standards and cost
reasonableness limits. This may result in a home of lesser square footage
and/or lower grade finishes than the applicant’s pre-storm home.
Program designed floorplans which inform the composite pricing will be
estimated with two, three, and four bedrooms of typical size. The associated
estimated cost to build each model will be the basis for the reconstruction
estimate used within the award formula.
6.3.3 Existing Footprint and Design
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Reconstruction designs and estimates are based on the number of bedrooms
and total eligible area as identified in the repair estimate or through the use of
other data that yields the most accurate eligible square footage of the original
structure.
The design will consider the original structure’s bedroom count in conjunction
with lot layout so as to present the applicant with a home that is compliant with
site and Tier II requirements. The Program will not compensate for an
increase in the number of bedrooms available to the homeowner nor for an
increase to the number of units on the lot.
The replacement structure is designed to not exceed the general footprint of
the original structure. The Program will fund one environmental review in
accordance with Program requirements. Should the applicant attempt to build
in a manner different from the Program-prescribed manner, the applicant may
not receive grant funding.
6.3.3.1 Design Size Reduction
For applicants that would like to reduce the number of bedrooms in
reconstruction, the grant award will reflect the corresponding amount for
the standard model size. Should the bedroom count be reduced post-
award, the award amount will be adjusted accordingly via change order.
6.3.4 Reconstruction at a New Address Location
It is anticipated that not all lots or site locations will be suitable for
rehabilitation or reconstruction projects. During the eligibility process, the
design study, or the Tier II environmental clearance, many factors can render
lots and site locations unsuitable for meeting the Program standards.
Examples may be homes located in the floodway, severe lot constraints, and
presence of toxic materials. In these scenarios, the Program may consider the
applicant for eligibility under Section 4.1.3 Pathway 3: Acquisition.
6.4 Cost Estimation
6.4.1 Cost Estimating Software
The damage assessor will use construction cost estimating software to
develop an estimate for the repair, replacement, and/or mitigation of the
housing structure to meet Program requirements. The field report is reviewed,
corrected, and revised as necessary to produce the final version of the ECR.
The estimate, photographs, and required documentation are uploaded to the
HARP databases.
In the event that cost data is not available in the cost estimating software for
specific items, the damage assessor may use cost data from other
construction costing data available for the item.
6.4.2 Ineligible Costs
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Costs incurred for the items listed below are ineligible. Costs for ineligible
work will be estimated during the Work in Place (WIP) assessment and reflect
Program accepted costing principles.
Costs that are outside the CDBG-DR scope of work are not Program eligible.
Any upgrades to the materials or scope of work must be paid out of pocket by
the homeowner and directly to the contractor. CDBG-DR funds will not be
issued until all ineligible expenses are paid. Ineligible items and activities
include, but are not limited to, the following:
Enhancements;
Outbuildings (sheds, etc.);
Decorative landscaping and paving;
Outdoor sprinkler systems;
Pools and hot tubs;
Solar panels;
Fences;
Security Systems;
Post storm additions (rooms added to original pre-storm structure);
Outdoor showers;
Outdoor fireplaces;
Purchase of tools and equipment;
Repair or replacement of detached structures such as sheds, swimming
pools, docks, or boat ramps (bulkheads will only be included when
required by local codes);
Replacement of special features, trims, and designer features that exceed
basic livability requirements and features of standard grade homes such
as solar panels, sky lights, wainscoting and wood paneling, Jacuzzis,
copper gutters and roofs (these items may be repaired if they present a
health or safety hazard or replaced with the Program standard quality of
material);
Replacement of clothes washer and/or dryer;
Replacement of window air conditioner units;
Any product upgrades or repairs in excess of the Minimum Program
Quality Standards;
Any additional items deemed by the Program to not contribute to the
habitability or life/safety aspects of the home.
6.5 Estimated Cost of Repairs (ECR)
The ECR will be developed using established construction estimating software with
pricing adapted for typical New Jersey regional construction costs and will contain
costs for items that are readily observed as in need of repairs. The ECR will
include an estimate of the costs associated with:
1. Repair or reconstruction of the residence that meets program standards and
applicable local, State, and/or Federal building codes, including windstorm
requirements, and
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2. Mitigation and elevation efforts to reduce the impact of future storms on the
home where applicable.
The ECR will contain a detailed listing of eligible repairs and associated units of
measure and quantities. Eligible construction activities, necessary environmental
mitigation (as required), elevation costs (as required), eligible accessibility features,
and Program-required minimum housing quality standards will be detailed in the
ECR. Industry standard pricing is used to assign a value for each line item included
in the Scope of Work.
6.6 Work in Place (WIP)
The WIP refers to repair activities already completed by the homeowner at the time
of the initial site inspection. The WIP assessment will be completed using Program
accepted costing principles. Utilizing the completed Duplication of Benefits (DOB)
Questionnaire from the intake process, the damage assessor will complete a WIP
validation. The assessment will include the cost for completed repairs based on the
same basic livability standards used for repairs that have not yet been completed.
The damage assessor will perform a site inspection of the property recording repair
work that was initiated as a result of storm damages. The damage assessor will
verify that the completed repairs match the list of eligible WIP activities provided by
the applicant during the intake process and are consistent with storm damage. The
damage assessor must determine with reasonable assurance that the repairs
claimed by the applicant were made, that the repairs were made after the date of
the storm, and that the expenditure was reasonable, based on the program’s unit
pricing index. Photos of all homeowner reported repairs, as well as any identified by
the assessor during the site visit, will be documented and included in the
assessment report. The purpose of the WIP validation assessment will be to
determine if:
The repairs made to the home were reasonable and necessary;
The repairs have a lasting presence; and/or
The repairs can be reasonably determined as to have occurred after the
storm event.
If there is an existing contract in place for construction, the Construction Manager
will determine the remaining contract value at the time of the initial site inspection
(ISI). As part of the ISI, the Construction Manager will determine the value of the
completed contract work and validate the funds paid to the contractor prior to
execution of a grant agreement. The value of work completed will go towards
reducing impacts to the grant award by any DOB. For the remaining work, a
contract addendum will be required in order to receive Program funding.
6.7 Contesting ECR or Work in Place Estimate
The Construction Manager will review the scope with the applicant. Should an
applicant believe that there were material errors in the ECR or WIP, they are
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advised not to execute their Grant Agreement. Applicants who receive less than the
Program grant award cap and believe that there were material errors in the ECR or
WIP calculations, may contest their grant award calculation. Applicants will need to
submit documentation and an ECR/WIP Contestation Worksheet noting the
contested amounts of the ECR or WIP along with any documentation supporting
the contested amounts. The Construction Manager will determine if the
documentation provided by the applicant is acceptable, and if warranted, the ECR
and/or WIP will be adjusted to reflect the new information and the documentation
will be submitted into the system of record. If they determine that the original
estimates were accurate, the decision will also be recorded and submitted into the
system of record. The Program Representative will be responsible to contact the
homeowner to discuss the results of the review. Review of the contestation is
limited to scope of work only. The Program will not adjust pricing of scope through
contestation by the applicant. If an adjustment to the ECR is made, the
Construction Manager will request an amendment post award for any unforeseen
construction changes in the system of record, reflecting the revised changes. No
amendment will be triggered if the change in the grant award is less than $2,500.
6.8 Design Services
DCA will procure a pool of individual design firms who will prepare any or all of the
geotechnical, engineering, architectural, and/or other design components to be
provided to the applicant per pathway chosen. All projects receiving elevation
and/or reconstruction assistance will be required to use these DCA-provided
services to develop their project scopes of work, unless design services have
already been retained. Design drawings and/or repair scopes are created to comply
with municipal zoning/permitting and HARP Program construction/reconstruction
requirements.
Once complete, designs will be provided to the homeowner for review and
acceptance. The Program will work to provide a design acceptable to the applicant
within Program guidelines, however the program is voluntary and an applicant who
elects not to accept the Program design may not be eligible for further assistance.
If design services have already been retained, the applicant must provide any
relevant information that will enable the Program to determine the extent to which
services have been engaged and utilized. Relevant information may be in the form
of invoices, payments, plans, blueprints, etc. Each eligible design service may be
invoiced with no standard allowance price up to a combined total of fifteen thousand
($15,000) dollars, provided the costs and services are necessary and reasonable.
The Program will make a final determination as to the eligibility of these services
and whether the applicant’s design firm is eligible for program funding, if complete,
for duplication of benefits off-set. For example:
Eligible: The applicant has expended funds on the design and has
received preliminary plans.
Ineligible: The applicant has not incurred any expenses and has not
received any designs.
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Design services will be accounted for in all applicable Scope of Work as a standard
line item. Once environmental clearance has been achieved, funds may be
provided for design work undertaken on or after the date of application and prior to
environmental clearance, even when such work is not attributable to a construction
contract executed prior to application submission.
Rehabilitation and reconstruction plans will be tailored to the property to reduce the
potential that the project will encounter the need for a variance to be requested
from the permitting authority. The local regulating authority and associated
requirements supersede Program requirements in instances where the Program
requirement is less stringent.
Applicants who are rehabilitating their homes may ask for DCA feasibility and
design support.
6.8.1 Restrictions
DCA is providing design services in an effort to streamline the recovery
process and ensure that the design of the structure and/or site is compliant
with all applicable regulations and requirements. Design services are not
provided to enable the applicant to reconfigure the home or make substantial
structural or layout changes and the design firms are generally prohibited from
incorporating these types of elements.
6.9 Construction Standards
DCA or its agent(s) will prepare the design and scopes of work, which will help
standardize costs and ensure that projects meet the desired resiliency and energy
efficiency goals. DCA will establish comprehensive construction standards,
limitations, and eligible recovery and mitigation activities, which will serve as the
mechanism for establishing the maximum assistance that an applicant may receive
through the program. Exceptions to these standards and eligible expenses may be
required. More detail pertaining to construction standards may be found on the
DCA website https://www.nj.gov/dca/ddrm/.
6.9.1 Resilience and Mitigation
The Program will incorporate mitigation measures to the greatest extent
feasible when carrying out rehabilitation and reconstruction projects. Projects,
where feasible, will incorporate necessary and reasonable measures to
withstand existing and future climate impacts. Refer to Section 6.9.2 Green
Building Requirements and Section 6.2 Elevation.
6.9.2 Green Building Requirements
All Program-funded properties must comply with HUD’s green building
standards as required by Federal Register Notices at 87 FR 31636 and as
amended by later notice(s). To meet these requirements, the State will
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document the use of the applicable green building standard in each project
file.
6.9.2.1 Reconstruction and Substantial Improvement
For reconstruction projects and rehabilitation of substantially damaged
homes, the home must meet Green and Resilient Building Standard
detailed in 87 FR 31636. The Program has adopted the ICC-700 National
Green Building Standard and Energy Star as the basis to meet the Green
and Resilient Building Standard. Should a different standard be chosen, it
may be reviewed by the Program to determine whether it is allowable as
a substitute.
6.9.2.2 Rehabilitation
All non-substantially damaged homes rehabilitated through the Program
will meet the requirements of the HUD Green Building Retrofit Checklist
to the extent applicable for the rehabilitation work undertaken.
6.9.3 Accessibility
Assistance for accessibility improvements for disabled applicants or
household members is available upon request by the applicant, disabled
household member, or a family member or legal representative of a disabled
family member. Any accessibility features that were present in the home of a
disabled person and destroyed or damaged by flood waters will be assessed
for replacement. Specialty accessibility items which may be included within
the scope of work or design include, but are not limited to, the following:
Ramps
Lifts
Roll-in shower stalls
These additional components and costs may be included with appropriate
documentation or evidence to support the applicant’s need. Costs will be
determined using industry standard estimating software or another form of
cost reasonableness review will be performed if the components are unable to
be evaluated within the software platform. This cost reasonableness
evaluation may be performed using an alternative estimating platform or
through bid responses.
6.9.4 Finish Selection
Applicants must provide the contractor with any and all fixture and finish
selections. Fixture and/or finish selection delays must not jeopardize the
timely completion of the project and associated funding. The applicant is
encouraged to select readily available items so as to avoid delay.
The applicant will be allotted reasonable time to review materials and make
final selections. Applicants who fail to make a final plan and/or finish selection
within a reasonable time period, based on DCA discretion, will be sent a
fifteen (15) day administrative withdrawal letter.
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6.9.5 Upgrades
Applicants are discouraged from upgrading materials, appliances, and
finishes. However, should the applicant elect to modify or deviate from the
Program designs or scope of work, they must use their own personal funds to
do so. Refer to Section 7.2 Responsibility of Applicant to Provide Non-
Program Funds (NPF). The cost of these upgrades must be borne by the
homeowner. The Program will not allocate funding for payment of any
upgrades.
Should an applicant elect to deviate from or modify the design and/or scope of
work elements, the modifications will only be allowed for those items that have
minimal impact on the footprint of the building and do not violate the floor plan
or building envelope such as flooring, trim, wall tile, windows, doors, cabinets,
hardware, countertops, paint, plumbing and lighting fixtures, site-built
showers, roof shingles, HVAC SEER rating, and appliances. Further, should
an item be delayed, the applicant is encouraged to select an alternative that is
available and of comparable cost.
The amount that the Program will disburse, regardless of the increased level
of finish or labor complexity, will only be the Program-eligible amount for the
corresponding element. For example, should the applicant instruct the
contractor to install marble countertops, the Program will only fund the amount
equivalent to that of a laminate countertop. Applicants are wholly financially
responsible for the net upgrade amount.
6.10 Manufactured Housing
6.10.1 Structure Definition
A Manufactured Housing Unit (MHU) is a structure that is transportable in one
or more sections. In the traveling mode, the home is eight (8) body-feet or
more in width and forty (40) body-feet or more in length. It is at least three-
hundred and twenty (320) square feet, built on a permanent chassis, and
designed to be used as a dwelling with or without a permanent foundation
when connected to the required utilities. The MHU also includes plumbing,
heating, air-conditioning, and electrical systems. The structure must be
designed for occupancy as a principal residence by a single household.
The default feasibility for all MHU projects will be reconstruction at the current
site (as opposed to rehabilitation or relocation to an alternate site), unless the
program determines a different process is more cost effective or necessary.
Reconstruction of an MHU shall consist of removal and disposal of the
existing MHU and replacement of the former MHU with a newly manufactured
or pre-owned one meeting the Program standards for quality, energy
efficiency, and serviceability.
6.10.2 Structure Specific Requirements
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A Lead Hazard Assessment will be completed for units built prior to 1978 if the
program approves rehabilitation, then all federal Lead Based Paint regulations
outlined in the program policy must be followed.
All new replacement MHUs will be required to meet Federal Construction
Standards and appliances must meet Energy Star requirements.
If it is determined that the replacement of an MHU is prohibited, then the
feasibility will be classified as rehabilitation, or the applicant may elect to
relocate to a low-risk area.A new Tier II Environmental Assessment would be
required for the alternate parcel.
For reconstructions, the new replacement unit will be installed according to the
standard four (4) to six (6) feet set-up height, unless the unit is in a flood zone
where additional elevation may be required. Any unit that requires elevation
over six (6) feet will require a more traditional foundation (i.e., a pile or
concrete masonry unit foundation system). Reconstruction feasibility will
require proper disposal evidenced by an Asbestos Disposal Manifest.
Program-based determination of damage will also be performed on each MHU
project. This determination is the basis for classifying an MHU as substantially
damaged or non-substantially damaged.
6.10.3 Project Cost:
The Total Development Cost for replacements will be developed using
Program developed MHU unit pricing based on the number of bedrooms in the
damaged unit.
The Total Development Cost for rehabilitations, the scope of work will be
developed using the Program Construction Standards and standardized
pricing and may not exceed the replacement pricing limits established above.
The price of a parking pad is not an allowable cost, as it is considered an
improvement of the land not attributable to the MHU itself.
Grant award funds disbursed will be limited to the lesser of the standardized
pricing determined by the Program or the subtotal of invoices submitted by the
applicant.
6.11 Cooperative and Condominium Units
Owner-occupied units in multi-unit properties, such as cooperative and
condominium units, are eligible for the Program. Applicants will need the approval
of the condominium association or cooperative for the construction plan and must
have the association or cooperative provide insurance information before a grant
can be awarded.
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7 AWARD
7.1 Award Determination and Calculation
7.1.1 Award
Awards will be determined based on the necessary and reasonable scope of
work and cost of materials using industry-standard cost estimating software,
comparative, and market analysis of price per square foot, and/or a review of
multiple construction bids. For elevation and reconstruction projects, DCA or
its agent(s) will prepare the design and scopes of work, which will help limit
and standardize costs and ensure that projects meet the desired resilience
and energy efficiency goals.
Note: An example of the Award Calculation is located in Appendix C.
7.1.2 Maximum Assistance
The maximum award amount for single-unit homes is $300,000. DCA will
consider exceptions to the maximum award amounts when necessary and in
compliance with federal regulations.
For owner-occupied duplex and triplex units, the program may provide an
additional $50,000 for each unit, resulting in an overall program maximum
award of $350,000 for a duplex and $400,000 for a triplex.
7.1.3 Duplication of Benefits (DOB)
Applicants must report all assistance they have been awarded or available to
repair/reconstruct their homes from third-party sources such as flood and
homeowner’s insurance, Increased Cost of Compliance (ICC), Federal
Emergency Management (FEMA) assistance, loans from the Small Business
Administration (SBA), and any assistance from other government or private
non-profit sources. For additional policy and procedures regarding the
duplication of benefits under the Program, please refer to 2.10.1 Duplication of
Benefits Policy. Any funds received from these sources to repair or
reconstruct the damaged dwelling must be considered when the amount of the
grant is determined. Funds received from these sources for other purposes
such as temporary housing and replacement of household contents are not
considered a DOB. Personal funds or private mortgages used to repair the
damaged dwelling are not considered in the DOB calculation.
Funds used for a different but eligible purpose may be excluded from the final
award calculation. In some instances, funds provided for the same general
purpose as the CDBG-DR funds will have been used by the applicant for a
different specific eligible purpose. In these circumstances, if the applicant can
document that the funds received were used for a different, eligible purpose,
then the funds are not duplicative. If funds are determined to have been
expended after time of application, funding will still be required to satisfy
owner’s DOB sources for the Program.
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Funds that an applicant does not have legal control of when they are received,
and which are used for a non-duplicative purpose, are not considered a DOB.
For example, if a homeowner’s mortgage agreement requires any insurance
proceeds to be applied to reduce the lien balance, then the bank/mortgage
holder (not the homeowner) has legal control over those funds. In the case of
funds being held by a bank, mortgage, or insurance company until
rehabilitation or reconstruction begins, the funds will be considered in the DOB
calculation. Applicants must agree to subrogate (commit to the State) any
future payments they may receive after the award amount is determined from
sources that represent a potential DOB. The subrogation agreement, included
as an exhibit in the grant agreement, requires the homeowner to notify the
State if additional funds are received and to assist the State in collecting any
amounts owed to the homeowner from these sources.
Note: An example of the DOB Benefit Questionnaire is located in Appendix D
7.1.3.1 Small Business Administration Loans
Applicants may have a loan from the Small Business Administration (SBA)
or other entity that is guaranteed and subsidized by the government.
Subsidized home, personal property, relocation and business loans may
be obtained by those persons or businesses recovering from a disaster.
The program will review the status of subsidized loans obtained by the
applicant during the DOB analysis process.
The program will continue to collect subsidized loan information, including
SBA information, provided by the applicant. In addition, the program has a
data feed provided by SBA to verify all approved amounts for SBA loans.
The program will collect specific information from SBA that breaks out the
approved SBA loan amounts into the different categories of assistance
(e.g., real property, personal property, vehicles, etc.).
Declined SBA Loans
Declined SBA loans are loan amounts that were offered by the lender in
response to a loan application, but were turned down by the applicant,
meaning the applicant never signed loan documents to receive the loan
proceeds. The program will not treat declined loans as DOB.
The program will request documentation for the declined loan only if the
information received from the third party (SBA database) indicates that the
applicant received an offer for the subsidized loan and the program is
unable to determine from that available information that the applicant
declined the loan.
Cancelled Loans
Cancelled loans are loans (or portions of loans) that were initially
accepted, but for a variety of reasons, were cancelled (such reasons may
include the loan commitment terms have expired, the loan has been
withdrawn, all or a portion of the loan was not disbursed and is no longer
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available to the applicant or cancelation was requested by the borrower).
DCA will verify that any undisbursed portion of an accepted subsidized
loan is cancelled through the SBA database. Without a verification from
SBA database, any approved but undisbursed portion of a subsidized loan
shall be included in the DOB calculation of the total assistance unless
another exception applies.
In cases of cancelled loans where partial disbursements were made prior
to the cancellation of the loan, the disbursed funds will be treated as funds
disbursed for active loans below.
Active Loans with Disbursed and Undisbursed Funds
During the DOB analysis, the program will consider active subsidized
loans as a duplication. However, accepted but undispersed loan amounts
will not be considered a DOB, as long as the undispersed portion of the
loan is verified as cancelled in the SBA database. Without a verification
from the SBA database, any approved but undisbursed portion of a
subsidized loan shall be included in the DOB calculation of the total
assistance. In addition, disbursed loan amounts will be considered as
non-duplicative provided the funds were:
Used properly for the same purpose;
Provided for a different purpose; or
Provided for the same purpose as the program’s activities, but used
for a different, allowable use.
7.2 Responsibility of Applicant to Provide Non-Program
Funds (NPF)
NPF is a calculation of the homeowner funds required to complete the project as
used in the grant award calculation. This calculation will include any and all
ineligible upgrades to be funded with the homeowner’s own funds and DOB funds
received but not used in the project as of the ISI.
Applicants must provide proof of available funds as evidenced by an industry
recognized bank, lender, or other financial institution with which the funding will be
provided from. Examples of sufficient documentation include, but are not limited to:
Current savings or checking account statement
Current retirement account statement
7.2.1 Additional Financing
Applicants needing to obtain additional financing may seek assistance from
other private sources. These funds will be considered NPF and will not require
subrogation to the Program.
7.2.2 Applicants with No Unmet Need
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Applicants with no unmet needs as discovered through the eligibility process
will be ineligible for the program.
7.3 Homeowner Obligations
Recipients of funds must sign a grant agreement that requires the homeowner to:
Permit authorized representatives of the Program, Department of
Environmental Protection (DEP), and authorized builders to access the site.
Properties located in the SFHA or high-risk flood area defined by DEP, must
maintain flood insurance throughout the repair/reconstruction process and in
perpetuity for the life of the property, including notifying subsequent owners
of this requirement through the recording of an encumbrance in the county
land records.
Elevate the dwelling, where required.
Complete all construction, including elevation where required, within one (1)
year from the date of the grant award, unless granted an extension in writing
by DCA.
Sign a Declaration of Covenants and Restrictions and/or a mortgage
agreement for duplexes and triplexes.
Sign the Sufficient Funds Acknowledgement, where the applicant
acknowledges they have sufficient personal funds available to complete all
construction activities.
Occupy the damaged dwelling upon completion of rehabilitation or
reconstruction.
7.4 Required Agreements for Duplexes and Triplexes
Homeowners participating in the HARP program who have rental units in duplexes
and triplexes will be required to sign a Non-Amortizing Forgivable Mortgage
agreement as well as a homeowner grant agreement. These documents ensure
that the rental units which are assisted with HARP funding maintain affordability
requirements detailed in Section 7.5. If the homeowner determines that they would
like to sell the property or rent the units at market rate, they will be required to pay
back a pro-rated portion of the investment into the property. The recapture amount
is determined by the amount of funds initially invested in the property and the
corresponding affordability requirement. These requirements are listed in the table
below.
7.5 Duplexes and Triplexes
All assisted homeowners who own rental units in a duplex or a triplex will be
required to follow recapture provisions during the period of affordability. These
requirements will be recorded in a restrictive non-amortizing forgivable mortgage
covenant and shall be mandatory during the term of the period of affordability.
1. The homeowner must enter into a homeowner grant agreement and a non-
amortizing forgivable mortgage agreement which both outline recapture
requirements.
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2. DCA will record a lien on the property securing the affordability of the units
assisted until expiration of the Period of Affordability.
3. The homeowner may sell the home at any time during the Period of
Affordability, to any willing buyer, at the price the market will bear.
4. In the event of a voluntary or involuntary sale during the period of
affordability, or at any point that the homeowner converts the units to
market rate, DCA will recapture the CDBG-DR investment as follows:
a. A pro-rated amount based on the amount of time passed between
investment and sale of the property.
5. The table below details the timeframes which will apply to all assisted
duplexes and triplexes:
Rehabilitation of existing housing per unit of
CDBG-DR funds
Minimum period of affordability in years
(after initial occupancy)
Under $15,000 1
$15,000-$50,000 3
Property owners will pay back an equal percentage of the investment into the
property if they do not comply with the affordability requirements.
7.6 Grant Execution
7.6.1 Approvals
Upon final determination of the HARP award, the Program
Representative will transfer all necessary documents for grant
signing, along with a closing checklist of what has been obtained
and what is outstanding to DCA for review. DCA will verify
completeness and compliance with program requirements.
7.6.2 Grant Agreement
After completing the application process, and prior to executing the grant
award as well as other auxiliary documents which require recording with the
County Clerk, applicants must sign grant agreements in the presence of an
authorized Program Representative and notary public. Applicants must sign
the Grant Agreement before any grant funds are released to an applicant. At
the grant agreement execution, legal documents are signed that obligate the
funds to the homeowner.
The Grant Agreement requires the owner to certify that they understand and
agree to all the terms of the Grant Agreement including the following
provisions:
1. Award Calculation, which explains how other resources determined to
be a DOB were handled and how the grant was calculated. The award
is calculated using the ECR for any repairs or reconstruction
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completed and the SOW for repair or reconstruction costs required to
complete the applicant’s project.
2. Insurance Requirements, which informs the homeowner of the
requirement to obtain and maintain multi-peril and/or flood insurance
and pass that obligation on to the subsequent owners.
3. Subrogation and/or Assignment Agreement, in which the homeowner
agrees that any additional funds the homeowner may receive from
potential DOB sources may belong to the Program and confirms their
obligation to immediately notify the Program if they receive such funds.
4. Declaration of covenants and restrictions to ensure project
completeness and that it meets a national objective.
5. Deed restriction, where applicable, which requires all owners of the
property to maintain FEMA flood insurance for the life of the property.
6. Confirmation that the homeowner still owns the damaged property and
they have not received notices of default of seizure that may affect the
title of the damaged property and their obligation to immediately notify
the Program if they receive such notices.
7. Hold Harmless Indemnification.
7.7 Recapture of Funds
During the course of implementation and ongoing monitoring of HARP, applicant
files will be made available for review by program staff and State and Federal
auditors. In some instances, the review may identify a situation which would require
a recapture of funds. In the circumstances listed below applicants may be required
to repay all or a portion of the assistance received from HARP. The reasons for
grant recapture include, but are not limited to, the following scenarios:
An applicant is determined to have provided false or misleading information
to the program.
If an applicant is withdrawn from the program prior to completion of the
project.
Construction is not completed due to non-cooperation by
applicant/owner(s).
Applicant did not comply with the approved scope of work in a manner that
made the home ineligible (i.e., applicant did not comply with the lead paint
abatement or other environmental remediation requirements).
Applicant failed to report the receipt of any additional insurance proceeds,
SBA, FEMA non-profit assistance and/or any other funds received after a
DOB analysis was conducted.
Applicant failed to complete the rehabilitation or reconstruction requirements
which were provided in the approved scope of work and according to DCA’s
program requirements.
All applicants who have been identified for recapture of program funding will not
be able to close out of the program until all funds have been repaid to the
Program.
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8 PRE-CONSTRUCTION
Unless otherwise specified, guidance is applicable to Pathways 1 and 2.
8.1 Contractor Selection and Performance
Once an applicant has selected a contractor, documentation supporting the
contractor’s qualifications must be submitted to the Program for review and
validation. If a contractor is exempt from licensure by the State of New Jersey, DCA
will review such contractors on a case-by-case basis for validation requirements.
It is recommended that applicants wait to proceed with a particular contract until the
Program has confirmed all applicable contractor credentials have been reviewed. If
an applicant proceeds with repairs or reconstruction to the property without having
their selected contractor(s) validated by the Program, they risk forfeiting
subsequent draw request approvals and administrative withdrawal from the
program due to working with Program ineligible contractors.
8.1.1 Contractor Requirements
The Program offers applicants the option to retain their existing contractor
through Pathway 1, or obtain a contractor of their choosing through Pathway
2. Applicants who have an existing executed construction contract or who
choose to seek and identify their own general contractor if one is not already
engaged, must meet the following minimum standards:
The general contractor must be properly licensed and/or registered in
New Jersey,
Must not be on HUD or State debarred lists
Must comply with all required State and Federal regulations applicable to
the HARP Program.
Must provide a project completion plan detailing the work and timeframe
for completion.
8.1.2 HARP Program Applicants Who Change Contractors
Applicants who wish to terminate their contract with their contractor may do
so, however, the Program will not be involved in the decision to terminate
existing contracts.
Applicants who wish to terminate their construction contract must provide the
following:
Notification to the program in writing via email or letter
Documentation of completed work including Invoices paid to date with
proof of payment
In addition, applicants must seek from the Program:
An updated scope of work and
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New contractor validation.
The scope of work may be re-evaluated and any additional costs that are
incurred due to the decision to change contractors may be the responsibility of
the homeowner.
8.2 Preconstruction Conference & Cost Acceptance
A preconstruction conference will be held with the applicant and the contractor to
review the items to be performed. The purpose of the preconstruction conference
is to discuss the details of the project, including the scope of work, schedule,
budget, and any potential issues or challenges that may arise. The contractor is
encouraged to have any required subcontractors present. Should any program
eligible additions or deletions be required, the applicant may request that the
Program modify the scope of work.
8.2.1 Program Approved Costs
The total construction cost in the scope of work provided to the applicant is
based on the Program’s unit pricing or reconstruction pricing policy. The
Program will not modify or increase any item costs, regardless of any pre-
existing agreement that the applicant and builder may have had. Exceptions
may be considered for extenuating circumstances.
8.3 Construction Agreements
The homeowner will enter into one of two different types of agreements with the
contractor depending upon the applicant-selected pathway. The agreement will be
either:
1. HARP Construction Contract Addendum is for homeowners that
currently have an existing construction contract, referred to as Pathway 1.
A contract addendum will be provided to the applicant and must be
executed with their builder to receive HARP funding. Any changes to the
scope of work or construction timeframes must be approved by the
Program through the Change Order process as outlined in Section 9.3
Change Orders and Draw payments.
2. HARP Construction Agreement is for homeowners that do NOT
currently have an existing construction contract. The homeowner will
enter into the contract agreement with the contractor. The construction
contract is provided by the Program and may not be amended to change
the terms of performance or to expand the construction scope beyond
that which has been authorized by the Program. Any changes to the
scope of work or construction timeframes must be approved by the
Program through the Change Order process as outlined in Section 9.3
Change Orders and Draw payments.
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8.4 Section 3
Section 3 of the Housing and Urban Development Act of 1968 (Section 3), as
amended, requires that economic opportunities generated by CDBG-DR funds be
targeted toward Section 3 residents. Section 3 eligible residents are low- and very
low- income persons, particularly those who live or reside in public, or government
assisted housing. In accordance with Section 3, contractors using CDBG funding
for housing rehabilitation are to provide training and employment opportunities to
lower income residents and contract opportunities to businesses in the project area.
Section 3 compliance actions include:
Prepare and utilize a Section 3 Plan
Designate a Section 3 Coordinator
Take affirmative steps to follow the Section 3 Plan and document those
efforts
Include the Section 3 Clause and the Contractor Certification of Efforts to
Fully Comply with Employment and Training Provision of Section 3 in any
bid packets for contracts.
Rehabilitation, reconstruction, or replacements CDBG-DR awards greater than or
equal to two-hundred thousand dollars ($200,000.00) or Lead Based Paint
abatement projects greater than or equal to one-hundred thousand dollars
($100,000.00) are required to comply.
Contractors must track and provide to the Program, worker income and eligibility
data for Section 3 applicable projects.
The contractor must make best efforts to direct twenty-five (25) percent of the total
labor hours worked towards Section 3 certified workers. Five (5) percent of the total
labor hours worked must be directed towards Targeted Section 3 workers. If the
contractor is unable to direct the requisite number of labor hours towards these
workers, documented qualitative efforts must be provided to the Program to
demonstrate that the contractor made every attempt to satisfy the requirements.
The HARP Program Representatives will designate a liaison who will coordinate
contractor reporting and compliance.
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9 CONSTRUCTION
9.1 Notice to Proceed (NTP)
The applicant and/or builder must present all required documentation to the
Program necessary for construction, including but not limited to:
Permits (Building, MEP, etc.) or documentation supporting no permit was
required
Prior Approvals
Insurances
Environmental Permits (Lead Hazard Abatement)
Required Certifications
The Program will issue to the applicant and builder the Notice to Proceed after the
builder and applicant have satisfied all program and documentation requirements.
The purpose of the notice to proceed (NTP) is to control the timing of construction
activities and avoid initiation of construction without proper permits or authorization
by the Program. The NTP will include:
Date of issuance
Date to initiate construction
Expected completion date
Program contact information
Program scope of work
If required for construction, the applicant must vacate the home, and for
duplexes/triplexes the applicant must secure the removal of any tenants in a
manner which meets URA requirements. Failure to vacate and allow for
construction activities to occur may result in the grant being rescinded.
If date of issuance and/or expected completion date changes, it will be
memorialized in a change order.
9.1.1 Hazardous Materials
The contractor is prohibited from disturbing any suspected hazardous
materials which were previously unidentified and later discovered during the
course of construction and/or demolition. Hazardous material treatment and
removal must follow all applicable State and Federal regulatory requirements.
The applicant/builder must make the Program aware of any additional
suspected hazardous materials that may have been uncovered during the
course of construction.
9.1.1.1 Lead Based Paint
The applicant received, as part of their application package, the EPA
pamphlet titled Protect Your Family From Lead in Your Home.
If the Risk Assessment identifies the presence of lead-based paint or
lead-based hazards then the Construction Manager shall verify that the
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remediation of lead-based hazards are properly incorporated into the
scope of work for the property. The applicant shall be provided with a
Notice of Lead Hazard Evaluation or Presumption pertaining to presence
and location of lead-based paint hazards within fifteen (15) days of the
evaluation.
All firms performing, offering, or claiming to perform renovations, repairs,
or rehabilitation for compensation on damaged properties constructed
pre-January 1, 1978, must comply with the EPA’s Renovation, Repair,
and Painting rule and the EPA’s Lead Pre-Renovation Education rule.
This means that all general contractors performing rehabilitation on
program properties that are pre-1978 housing must be an EPA-certified
firm.
The applicant is responsible for providing a lead abatement contractor, to
the Program for validation, prior to performing any required lead hazard
abatement work. The Program will monitor the lead abatement process
and provide for an interim clearance report as necessary or required. At
the conclusion of the abatement, the abatement contractor/applicant will
coordinate with the Program to schedule a lead clearance examination.
A copy of the final lead hazard clearance report conducted by DCA or its
agent will be provided to all occupants residing in the structure within
fifteen (15) days.
During the abatement process, no rehabilitation work should occur within,
and no entry should be made into, the area for which clearance is
requested until the clearance inspection occurs and clearance is
achieved.
9.2 Construction Monitoring, Periodic, and Final Inspections
The Program will monitor the project during construction for adherence to any
federal and state regulatory requirements in addition to Program approved
processes. Monitoring and document collection will take place to:
Monitor timeliness of project progression
Verify scope completion
Verify the presence of required documentation such as permits and
municipal inspections
Monitor adherence to Green Building Requirements and resiliency
requirements
Monitor adherence with any applicable Federal cross-cutting
requirements
Monitor change orders and construction contracts
Monitor work quality and compliance with agreed-upon scope, program
specifications, and construction drawings as applicable
Monitor payments to builders
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The Program will perform site inspections at designated times and/or as the need
arises. Construction monitoring and related inspections are performed to document
eligible activities are being performed, timelines are being adhered to, and program
guidelines are being followed.
The following inspection types may occur at both designated and undesignated
times throughout the duration of the project and details of each are in the following
sections.
9.2.1 Inspection Types
Contractors are responsible for contacting the Program to request an on-site
inspection during construction. Applicants should be present for all Draw and
Final inspections and are encouraged to be present for any site inspections.
9.2.1.1 Progress Inspection
Progress Inspections, or general site inspections, can occur at any point
during the project for any number of reasons. Further, the Program may
need to document any issues that arise that may jeopardize the
completion of the project. The Program reserves the right to access the
project location to collect any required information.
9.2.1.2 Draw Inspections
Draw inspections occur at set milestones during a construction project,
generally after a complete draw request is submitted. This inspection will
take place after the Program receives notification from the applicant that
the project has reached the next designated milestone. The Program
Inspector will document the status of the project and note the condition of
the project related to the specific milestone.
9.2.1.3 Final Inspection
A Final Inspection occurs at the completion of the construction project and
indicates that no additional work is necessary. The applicant and/or
contractor must provide to the Program evidence that the project has
passed all municipal inspections, that the scope has been completed, and
that the home is in a move-in condition. These documents may include,
but aren't limited to, the following:
Closed or completed permit
Certificate of Occupancy or Certificate of Completion
Final Elevation Certificate
Green and/or Resiliency Checklist(s)
Green Building Standards
Warranty
9.2.2 Failed Inspections
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Applicants will be made aware of the items that did not meet Program
standard or were incomplete and will be advised to reschedule once the
concerns noted are remedied.
9.3 Change Orders and Draw Payments
9.3.1 Draw Payment Requests
Funds will be released to the applicant on a draw schedule as specified within
the contract documents, with the final payment occurring after completion and
issuance of a certificate of completion/occupancy by a local code official.
Construction progress and quality will be monitored throughout each project,
and payment of each progress draw is contingent upon successful inspection
by the Program.
Each rehabilitation, replacement, elevation, and reconstruction project will be
subject to a construction contract which will include performance measures
and define progress payments. Each request for payment must contain all
program required documents and supporting evidence.
9.3.2 Payments
Upon approval of the draw request, the Program may disburse funds for
completed work. The applicant is ultimately responsible for ensuring that the
contractor is paid for work completed.
Site inspections to confirm completed work will be based on the payment
schedule or as approved on a case-by-case basis. Applicants will be required
to sign an acknowledgement form attesting that they are satisfied with the
work invoiced and will pay their contractor within ten (10) days of receipt of
Program funds. If the applicant does not pay the contractor within the ten (10)
day period, they may be administratively withdrawn from the Program for non-
compliance. The covenant on the property will be held until requirements are
met.
General contractors will be paid on a draw schedule agreed to by the general
contractor and construction manager as an advisor to the applicant, before the
start of construction, with the final payment occurring after completion and
issuance of a certificate of completion by the construction manager.
Construction progress and quality will be monitored throughout each project,
and payment of each progress draw is contingent upon successful inspection
by the Program.
9.3.3 Change Orders
Change orders are issued when the initial agreed-upon scope of work to be
completed requires modification for repairs not identified during the initial
damage assessment. Each change order must have a cost analysis for any
substantive scope of work modifications.
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The request and supporting documentation must be submitted to the Program
for review and the Program may not pay for any additional costs associated
with the change order. The homeowner will have to pay for any costs
associated with a change order that is not funded by the Program.
Supporting documentation must demonstrate the request is both necessary
and essential to the completion of the home. This documentation generally
consists of, but is not limited to, the following:
Detailed contractor/applicant narrative of the request
Structural related changes must be reviewed and approved by
Program engineers
Photographic support showing the condition to be remedied
Supporting documentation as specified by the Program
The amount associated with the change order will be validated using an
industry standard estimating platform or through an alternative estimating
platform.
9.4 Retainage
The program will develop a retainage which will be 10% of the total contract or the
grant award whichever is less. The amount withheld is to ensure that the contractor
or subcontractor completes all of the work outlined in the contract and meets the
specified quality standards. The release of retainage will be contingent upon the
contractor or subcontractor providing all necessary documentation and certifications
as required by the Program.
9.5 Warranty
General contractors are responsible for providing a warranty. The Program does
not provide warranty services. The contractor must present warranty documents to
the applicant which detail the length and method of claim request.
9.5.1 Rehabilitation
The applicant is encouraged to pursue a warranty agreement with the
contractor. It is recommended that the contractor provide a one (1) year
warranty period for all scope of work included in the Estimated Cost of Repairs
and that the warranty meet the required warranty standards approved by the
State of New Jersey.
9.5.2 Reconstruction
Reconstruction projects require the contractor to provide to the applicant a
new home warranty as described in the New Jersey New Home Warranty and
Builders’ Registration Act (N.J.S.A. 46:3B-1).
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9.6 Construction Disputes
As the applicant selects and engages with their contractor, it is their responsibility to
resolve contract disputes. However, the homeowner can contact the program
construction manager to facilitate discussions to resolve any disputes. If the dispute
cannot be resolved, the applicant may file a complaint as outlined in Section 11
Program Appeals, Complaints, And Grievances.
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10 CLOSEOUT
10.1 Construction Closeout and Final Inspections
Once construction is complete, the applicant will request a final site inspection to
validate that all necessary work is completed according to the appropriate state
and local codes and the home meets HQS. The final site inspection confirms that
all required work has been completed and accepted by the local building
inspector along with any required certificate of occupancy. The homeowner, the
general contractor, and the Program Construction Manager will complete and
sign a final inspection form and which will be uploaded to the project file. In
addition to the final site inspection to verify completion of the applicant’s scope of
work as outlined in the approved ECR, the general contractor will be required to
submit a Construction Closeout packet to the construction manager.
10.1.1 Duplexes and Triplexes Closeout After Affordability
Period
At the end of the compliance period, DCA will release the mortgage
agreement for duplex/triplex properties and send a letter to the property owner
stating that the requirements of the Program have been met and, if applicable,
that the property owner is no longer responsible to rent to an LMI tenant.
10.2 Operations Quality Assurance Review
Once the Construction Manager has verified construction has been completed to
occupancy and uploaded all required documents to the file. QA/QC Operations
Staff will confirm the required documentation is on file for applicable construction
requirements, final inspection, and verify that all payment requests have been
properly disbursed, less retainage, when applicable. Upon confirmation that all
applicable program requirements have been completed and appropriately
documented in the applicant’s file, QA/QC Operations Staff will conduct a DOB
and scope adjustment reconciliation of the final award to account for any
changes. Incomplete scope of work at the time of the final inspection may impact
final grant disbursement.
As part of this review, DCA will conduct a final Duplication of Benefits (DOB)
review to ensure that the Property owner did not receive any additional funding.
The final grant reconciliation will be signed by the applicant to ensure that any
additional duplication of benefit funds received after the execution of the grant
agreement and final grant calculation are accounted for.
If there are additional DOB funds identified or incomplete Scope of Work then the
applicant may be required to pay previously awarded funds back to DCA.
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10.3 Flood Insurance
Homeowners who have been assisted with CDBG-DR funds and who own a
home in a Special Flood Hazard Area or a high-risk area defined by DEP must
obtain flood insurance to ensure that these properties are protected from future
disasters. The applicant will be required to execute a deed restriction on the
property at the time of grant signing, which notices any future buyers of this
requirement. Flood insurance monitoring will require the applicant to submit
documentation meeting the compliance requirements of Section 102(a) of the
Flood Disaster Protection Act of 1973. The standard documentation for
compliance with Section 102(a) is either a paid receipt for the current annual
flood insurance premium and a copy of the application for flood insurance or a
copy of the current Policy Declarations form issued by the NFIP or issued by any
property insurance company offering coverage under the NFIP. The Program
may seek third party verification of compliance as well. Applicants who cannot
meet these requirements will be determined to be non-compliant and may have
to repay all or a portion of assistance provided by the Program.
10.4 Application Archive
The project will be ready for application archive when the following conditions are
met:
Project meets National Objective
All funds are expended in full.
Any funding determined to be ineligible is returned.
All reporting requirements were completed.
Any specials conditions of the Program were met.
All audit and monitoring issues were resolved.
11 PROGRAM APPEALS, COMPLAINTS,
AND GRIEVANCES
11.1 Program Eligibility Appeals
All appeal requests related to program activities are processed and reviewed by
DCA. Initial review of the appeal will be conducted by a three (3) person panel,
made up of Legal and Regulatory Affairs staff. This staff is independent from the
group that originally made the decision being appealed. Each appeal will be
reviewed against Program policies and requirements. The panel will make a
recommendation to the Deputy Commissioner of DCA who will make the final
determination.
Appeal requests to DRM must be postmarked within sixty (60) calendar days of
the date of service on the original correspondence communicating the decision to
be appealed. Appeals must be submitted in writing to:
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Department of Community Affairs
Division of Disaster Recovery and Mitigation
P.O. Box 823
Trenton, NJ 08625-0800
Attention: Legal
The applicant’s written request should contain the following information:
Applicant’s name,
Address of damaged residence,
Applicant’s mailing address,
Applicant’s telephone number,
Email address (if available),
The reason(s) the decision or action is being appealed,
Documentation that supports the request to overturn the decision, and
Application number.
If appropriate, Legal and Regulatory Affairs may contact the applicant to allow
the applicant to provide additional documents to address any deficiency or
incomplete information, or to be interviewed to determine the merits of the
applicant’s appeal. If the action or decision is overturned, notification will specify
the corrective action to be taken. The applicant shall be notified of the final
determination in writing via certified mail.
11.2 Complaints
The State will accept written complaints related to the program. Written
complaints should be submitted via email to
[email protected] or be mailed to:
New Jersey Department of Community Affairs
Division of Disaster Recovery and Mitigation
P.O. Box 823
Trenton, NJ 08625-0800
Attention: Manager, Constituent Services
The State will make every effort to provide a timely written response to every
citizen complaint within 15 working days of receipt of the complaint, where
practicable.
The State will require that its subrecipients follow a citizen complaint procedure
reflective of the goals of the Citizen Participation Plan. A copy and/or summary of
citizen complaints received by subrecipients will be forwarded to the NJ DCA.
The complainant must be made aware by the subrecipient that if she or he is not
satisfied with the response, a written complaint may be filed with the DCA.
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11.3 Section 504 Coordination Complaints and Grievances
Section 504 prohibits discrimination on the basis of disability in programs
conducted by federal agencies, in programs receiving federal financial
assistance, in federal employment and in the employment practices of federal
contractors. Complaints regarding accessibility can be reported to the State’s
Section 504 Coordinator. Plan publication efforts must meet the effective
communications requirements of 24 Code of Federal Regulations (CFR) 8.6 and
other fair housing and civil rights requirements, such as the effective
communications requirements under the Americans with Disabilities Act.
State Section 504 Coordinator:
11.4 Fair Housing, Support to Non-English Speakers
Program activities will comply with all applicable Federal and local fair housing
requirements
including:
Fair Housing Act (Title VIII of the Civil Rights Act of 1964);
Title VI of the Civil Rights Act of 1964;
Section 504 of the Rehabilitation Act of 1973;
Section 109, Title 1 of the Housing and Community Development Act of
1974;
Title II of the Americans with Disabilities Act of 1990;
Architectural Barriers Act of 1968;
Age Discrimination Act of 1975; and
Title 6 of the Education Amendments Act of 1974
To further fair housing goals and ensure that all potentially eligible applicants are
aware of the opportunity to participate in the Program, DCA will engage in an
outreach campaign prior to and during the application period. The multi-media
outreach program includes special outreach to LMI households, minority
households, and others identified as “least likely to apply” for assistance. In
accordance with the requirements of Section 504 of the Rehabilitation Act of
1973, DCA will make reasonable accommodations to ensure access to the
program for persons with disabilities. These accommodations may include
providing alternative methods of compliance with program requirements, such as
conducting home visits for individuals unable to travel and/or providing additional
assistance in the completion of the application and program forms.
11.5 Fraud, Waste, and Abuse
DCA describes the process for applicants to report fraud, waste, or abuse in DCA
Policy No. 2.10.4 Investigation Protocol Policy (February 2023) and, specifically,
the “Avoid Home Repair Scams” tip sheet that is distributed to all beneficiaries.
DCA has an established process for determining if fraud, waste, or abuse has
occurred and it is discussed in DCA Policy No. 2.10.88 Policy Addressing
Contractor Performance Issues: Fraud, Poor Workmanship, and Failure to Perform
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in a Timely Manner (April 2023). This policy discusses the role of DCA in
investigating and acting when fraud occurs within program construction activities
and/or programs. DCA Policy No. 2.10.13 Internal Audits and Recipients Audits
Policy discusses the process of the Office of Auditing to provide both programmatic
and financial oversight of grantee activities. When the grantee has determined that
instances of fraud, waste, and abuse have occurred, these will be referred to the
the Office of Auditing.
It is the affirmative responsibility of any DCA employee and any Program
Representative that has reasonable suspicion that any form of fraud is occurring, to
notify the appropriate State or Federal agency or department. Notification of
suspected fraud can be made to the Office of the State Comptroller. The toll-free
telephone number for the hotline is 1-855-OSC-TIPS (1-855-672-8477). The e-mail
address is
comptrollerti[email protected].gov. All communications will be kept confidential. The
hotline and e-mail address are maintained by the State of New Jersey, Office of the
State Comptroller.
12 MONITORING, COMPLIANCE, AND
RECORDS MANAGEMENT
12.1 Program Monitoring
The Disaster Recovery and Mitigation Division oversees activities and
expenditures of authorized federal funds. DCA will perform monitoring and
provide technical assistance on all program areas and files. The frequency of the
monitoring is dependent on program progress, policy manual changes, and
spending schedule.
The DRM Monitoring Unit conducts a risk analysis of programs and activities,
then using a combination of desk reviews, site visits, and monitoring checklists to
monitor program activities. To determine the appropriate monitoring of grants,
DCA’s risk assessment will consider prior grant administration and performance,
audit findings, as well as the complexity of the project, among other factors in its
monitoring efforts.
The primary purpose of the State’s monitoring strategy is to ensure that all
projects comply with applicable federal regulations and are effectively meeting
their stated goals. Subsequently, the frequency and program components
monitored will be determined by the risk analysis. All projects will be monitored at
least once during the life of the activity. The results of monitoring and audit
activities will be reported to the Deputy Commissioner of DCA overseeing the
DRM.
The monitoring will address program compliance with contract provisions, which
may include, but is not limited to, environmental reviews, procurement, fair
housing, Section 3, Davis‐Bacon Act and other prevailing wage provisions,
Uniform Relocation Act, equal opportunity and civil rights requirements, Uniform
Guidance, program income and other applicable financial requirements. All
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necessary environmental reviews shall be performed on each project prior to
funding.
Procedures for verification of the accuracy of information provided by applicants
for assistance are provided in the individual program policies and procedures.
DCA’s oversight and monitoring shall include procedures to ensure that the
respective programs have sufficient documentation to verify the information being
provided by applicants. DCA will test the program staff’s adherence to the
required procedures by testing applicant files using the appropriate sampling
techniques. Further, DCA may embed quality assurance monitors into the intake
process who will be charged with ensuring adherence to prescribed applicant
verification procedures.
DCA will maintain a comprehensive monitoring manual and compliance and
monitoring procedures for all funding sources including the CDBG-DR program.
12.2 Compliance
DCA has adopted a policy that it will conduct a risk analysis of CDBG-DR funds
within the Program. Periodically, based on the risk analysis, DCA will monitor the
program for its key areas. Monitoring will be performed by DRM Monitoring. The
policies and procedures written into this manual will meet the standards set out in
State and Federal law, the HUD Fund Notice, the HUD CDBG Rules, and the
action plan to effectively provide the required proficient financial controls and
procurement processes. Each program will develop a written comprehensive
compliance plan consistent with the requirements in State and Federal law, the
HUD Fund Notice, the HUD CDBG Rules, and the action plan. At a minimum the
compliance plan should include:
A. The system for monitoring of a general contractor’s process for
debarment verifications for subcontractors.
B. The system for monitoring a general contractor’s process for
verification of Section 3 status, and the required record keeping.
Certified payrolls are not required but will be accepted for this
purpose.
C. Third-party (or non-program staff) consistency reviews for all
monitoring processes for the program representatives’ oversight
inspection and monitoring functions.
D. An internal review of the draw approval process with the first not
coming later than sixty (60) days after the first draw approvals.
E. A review of information system access and protections for
program activities, including password protections by staff.
F. Other functions where errors could create inappropriate payments.
Key Areas Identified:
i. Section 3;
ii. Davis-Bacon Act and other labor standards (if applicable);
iii. Uniform Relocation Act;
iv. EEO Requirements;
v. OMB Circular A-87;
vi. 2 CFR Part 200 et al;
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vii. Accessibility requirements;
viii. Program Income (if any); and
ix. CDBG Financial Requirements.
Each program will cooperate fully with the DCA, HUD, or HUD OIG monitors/auditors
and assist them by providing all necessary access to databases and documents
requested. Any compliance plan will include the frequency and distribution of any
reporting of the ongoing activities.
12.3 Conflict of Interest
In accordance with federal requirements, the Program will adhere to the following
conflict of interest provisions established for the CDBG-DR Program and as fully
described in the DCA Conflict of Interest Policy No. 2.10.9. For the Program, the
following areas have been identified as potential areas of conflict:
Program Staff/Property owner Applicant or Staff/General Contractor
relationships
Property owner Applicant/General Contractor relationships
Evaluation and approval process
12.3.1 Applicability
In the procurement of supplies, equipment, construction, and services by
recipients and sub recipients, the conflict-of-interest provisions in 2 CFR
200.317-2 CFR 200.326, and the provisions of 24 CFR 570.611 apply.
Such cases include the acquisition and disposition of real property and
the provision of assistance by the recipient, by its sub recipients, or to
individuals, businesses or other private entities under eligible activities
which authorize such assistance (e.g., rehabilitation, preservation, and
other improvements of private properties or facilities pursuant to §
570.202, or grants, loans and other assistance to businesses, individuals
and other private entities pursuant to § 570.203, § 570.204 or § 570.455).
12.3.2 Conflicts Prohibited
No persons who is an employee, agent, consultant, officer, or elected
official or appointed official of the recipient, or of any designated public
agencies, or of sub-recipients that are receiving funds under this part who
exercise or have exercised any functions or responsibilities with respect
to CDBG activities assisted under this part, or who are in a position to
participate in a decision making process or gain inside information with
regard to such activities, may obtain a financial interest or benefit from a
CDBG-assisted activity, or have a financial interest in any contract,
subcontract, or agreement with respect to a CDBG-assisted activity, or
with respect to the proceeds of the CDBG-assisted activity, either for
themselves or those with whom they have business or immediate family
ties, during their tenure or for one year thereafter.
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12.4 Files, Records, and Reports
This section is intended to provide the protocols, guidance, and general
framework for the files, records, and reports used and stored by DRM Housing
Recovery Team Members.. The process is composed of 3 Key Tasks:
Maintain compliance with all applicable file retention guidelines as
described in Policy for Record Retention 2.10.19 and audits in
accordance with DCA’s CDBG Disaster Recovery Program.
Define a Standard Operating Procedure (SOP) to identify the specific
steps, as well as customer and contractor interaction safeguarding
personally identifiable information.
Establish needed records, maintenance, and retention requirements.
DRM Housing Recovery Staff will comply with 24 C.F.R. Part 5.2, Compliance with
the Privacy Act, which requires the safeguarding of personally identifiable
information by:
Minimizing the use of PII on program documents and records;
Providing access to PII only to those who require it for official business;
and
Securing PII appropriately whether in paper or electronic form.
12.4.1 Procedures for Performance Key Tasks
SIROMS is the electronic records system. The Program will maintain
reliability to ensure records are accurate and available, preserve
authenticity to protect against unauthorized access, and provide usability
to staff so that records can be easily found and updated. Pertinent
documents that are created elsewhere will be uploaded to SIROMS, at
key points throughout the Program, as defined in the MIS Standard
Operating Procedure. Each applicant’s files will reside in the system of
record, SIROMS.
12.4.2 Record Retention Compliance
The Program, through the individual management information systems,
will retain all relevant Program files as electronic records as described in
the State’s record retention policy 1.10.14. If any litigation, claim, audit,
negotiation, or other action involving records has started before the
expiration of the record retention period, records will be retained until all
finding’s involving records have been resolved and final action is taken (2
CFR 200.334(a)). As defined in the policy, records must be retained and
audited after the end of the Program. To assist with the compliance of
these codes, the Program Representatives will work with the New Jersey
Division of Revenue and Enterprise Services Records Management
Services to submit and obtain an electronic Imaging System Certification,
if applicable. This will include documenting the retention schedule
outlined by the Program policy, defining our system configuration, quality
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control, disaster prevention/recovery, scanning policy, and procedures
and data migration plan.
12.4.3 Prepare Standard Operating Procedures
These documents will be adjusted from time to time, as required to
operate the program. At a minimum, the SOP will:
Provide a description of what must be inventoried so that proper
quality controls can be implemented. The inventory will consist of
electronic records, such as scanned forms, electronic forms including
signatures, internal and external reports, photographs, estimates, and
drawings. These files shall be maintained such that they can be
transferred via e-mail, disc format, and download.
Define file formats and meta-data for each electronic record.
Provide a clear description that appropriate State and Federal
monitors/auditors will be allowed access to the records upon
reasonable notice, unless fraud, waste, or abuse (See Policy 2.10.88)
is the reason for the visit.
Define specific procedures for the scanning of paper documents for
the creation of an electronic file (paper forms are not anticipated).
Implement quality controls that assure specific electronic records are
being associated with the correct applicant ID and stored in the
correct locations and format within the MIS.
List the records retention schedule per Program policy.
Define the methods of electronic records protection that include
remote access control by only authorized staff members and physical
security of the hardware.
Define records disposition for program closeout, either by transfer of
ownership or by destruction prior to the end of the required record
retention period. This will include a plan to guard against technological
obsolescence which will involve common file formats, interfaces, and
communication.
12.4.4 Required Records
Program Representative will provide support to DCA to meet the reporting
requirements, where applicable to the Program, to the recordkeeping
areas identified in the DCA Policy of Management and Record Keeping
2.10.19. These topics include but are not limited to:
1. Disaster Recovery (DR) Action Plan submission to HUD, which
includes the application, program descriptions, certifications, and
any amendments to the DR Action Plan, etc.;
2. Executed grant agreement or memorandum of understanding;
3. Description, geographic location, and budget of each funded activity;
4. Eligibility and national objective determinations for each activity;
5. Personnel files;
6. Property management files;
7. HUD monitoring correspondence;
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8. Citizen participation compliance documentation;
9. Fair Housing and Equal Opportunity records;
10. Environmental review records;
11. Documentation of compliance with other Federal requirements,
including but not limited to: Davis-Bacon Prevailing Wage
requirements; Uniform Relocation Act, Section 3, and Lead-Based
Paint; Employment/Economic Opportunity for Lower Income
Persons (Section 3); Section 504 of the Rehabilitation Act of 1973;
Americans with Disabilities Act; and Employment and Contracting
(Minority and Women’s Business Enterprise);
12. Chart of accounts;
13. Manual on accounting procedures;
14. Accounting journals and ledgers;
15. Source documentation (purchase orders, invoices, canceled
checks, etc.);
16. Procurement files (including bids, contracts, etc.);
17. Real property inventory;
18. Bank account records (including revolving loan fund records, if
applicable);
19. Draw down requests;
20. Payroll records and reports;
21. Financial reports;
22. Audit files;
23. Relevant financial correspondence;
24. Evidence of having met a national objective (see below);
25. Sub recipient agreement or Memorandum of Understanding, if
applicable;
26. Procurement documentation, including any bids or contracts;
27. Locations of the beneficiaries;
28. Data on racial, ethnic, and gender characteristics of beneficiaries
29. Compliance with special program requirements, including
environmental review records;
30. Budget and expenditure information (including draw requests);
31. Status of the project/activity;
32. National objective; and
33. Income.
12.4.5 Destruction of Records
In no case shall the record destruction date be less than seven (7) years
from the time of final closeout. All original records become property of the
State of New Jersey. These original records shall be transferred to DCA
for storage consistent with the Plan. The Program shall maintain copies for
not less than seven (7) years of relevant records.
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APPENDIX A: HUD FY2022 INCOME LIMITS
2022 New Jersey MIDs 30% AMI Low Income Limits
Persons in Family
County
1 2 3 4 5 6 7 8
Bergen County
$25,700 $29,400 $33,050 $36,700 $39,650 $42,600 $45,550 $48,450
Essex County
$24,150 $27,600 $31,050 $34,500 $37,300 $40,050 $42,800 $45,550
Gloucester County
$22,150 $25,300 $28,450 $31,600 $34,150 $36,700 $39,200 $41,750
Hudson County
$24,150 $27,600 $31,050 $34,450 $37,250 $40,000 $42,750 $45,500
Hunterdon County
$28,500 $32,600 $36,650 $40,700 $44,000 $47,250 $50,500 $53,750
Mercer County
$25,050 $28,600 $32,200 $35,750 $38,650 $41,500 $44,350 $47,200
Middlesex County
$28,500 $32,600 $36,650 $40,700 $44,000 $47,250 $50,500 $53,750
Morris County
$24,150 $27,600 $31,050 $34,500 $37,300 $40,050 $42,800 $45,550
Passaic County
$25,700 $29,400 $33,050 $36,700 $39,650 $42,600 $45,550 $48,450
Somerset County
$28,500 $32,600 $36,650 $40,700 $44,000 $47,250 $50,500 $53,750
Union County
$24,150 $27,600 $31,050 $34,500 $37,300 $40,050 $42,800 $45,550
Warren County
$24,250 $27,700 $31,150 $34,600 $37,400 $40,150 $42,950 $45,700
2022 New Jersey MIDs 50% AMI Low Income Limits
Persons in Family
County
1 2 3 4 5 6 7 8
Bergen County
$42,850 $49,000 $55,100 $61,200 $66,100 $71,000 $75,900 $80,800
Essex County
$40,250 $46,000 $51,750 $57,500 $62,100 $66,700 $71,300 $75,900
Gloucester County
$36,900 $42,200 $47,450 $52,700 $56,950 $61,150 $65,350 $69,600
Hudson County
$40,250 $46,000 $51,750 $57,450 $62,050 $66,650 $71,250 $75,850
Hunterdon County
$47,500 $54,250 $61,050 $67,800 $73,250 $78,650 $84,100 $89,500
Mercer County
$41,750 $47,700 $53,650 $59,600 $64,400 $69,150 $73,950 $78,700
Middlesex County
$47,500 $54,250 $61,050 $67,800 $73,250 $78,650 $84,100 $89,500
Morris County
$40,250 $46,000 $51,750 $57,500 $62,100 $66,700 $71,300 $75,900
Passaic County
$42,850 $49,000 $55,100 $61,200 $66,100 $71,000 $75,900 $80,800
Somerset County
$47,500 $54,250 $61,050 $67,800 $73,250 $78,650 $84,100 $89,500
Union County
$40,250 $46,000 $51,750 $57,500 $62,100 $66,700 $71,300 $75,900
Warren County
$40,400 $46,200 $51,950 $57,700 $62,350 $66,950 $71,550 $76,200
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2022 New Jersey MIDs 80% AMI Low Income Limits
Persons in Family
County
1 2 3 4 5 6 7 8
Bergen County
$63,000 $72,000 $81,000 $90,000 $97,200 $104,400 $111,600 $118,800
Essex County
$62,600 $71,550 $80,500 $89,400 $96,600 $103,750 $110,900 $118,050
Gloucester County
$59,050 $67,450 $75,900 $84,300 $91,050 $97,800 $104,550 $111,300
Hudson County
$64,350 $73,550 $82,750 $91,900 $99,300 $106,650 $114,000 $121,350
Hunterdon County
$63,000 $72,000 $81,000 $90,000 $97,200 $104,400 $111,600 $118,800
Mercer County
$62,600 $71,550 $80,500 $89,400 $96,600 $103,750 $110,900 $118,050
Middlesex County
$63,000 $72,000 $81,000 $90,000 $97,200 $104,400 $111,600 $118,800
Morris County
$62,600 $71,550 $80,500 $89,400 $96,600 $103,750 $110,900 $118,050
Passaic County
$63,000 $72,000 $81,000 $90,000 $97,200 $104,400 $111,600 $118,800
Somerset County
$63,000 $72,000 $81,000 $90,000 $97,200 $104,400 $111,600 $118,800
Union County
$62,600 $71,550 $80,500 $89,400 $96,600 $103,750 $110,900 $118,050
Warren County
$62,600 $71,550 $80,500 $89,400 $96,600 $103,750 $110,900 $118,050
2022 New Jersey MIDs 120% AMI Income Limits
Persons in Family
County
1 2 3 4 5 6 7 8
Bergen County
$102,800 $117,500 $132,200 $146,900 $158,650 $170,400 $182,150 $193,900
Essex County
$96,600 $110,400 $124,200 $138,000 $149,050 $160,100 $171,100 $182,150
Gloucester County
$88,550 $101,200 $113,850 $126,500 $136,600 $146,700 $156,850 $166,950
Hudson County
$96,500 $110,300 $124,100 $137,900 $148,900 $159,950 $170,950 $182,000
Hunterdon County
$113,900 $130,200 $146,450 $162,700 $175,750 $188,750 $201,750 $214,800
Mercer County
$100,150 $114,450 $128,750 $143,050 $154,500 $165,950 $177,350 $188,800
Middlesex County
$113,900 $130,200 $146,450 $162,700 $175,750 $188,750 $201,750 $214,800
Morris County
$96,600 $110,400 $124,200 $138,000 $149,050 $160,100 $171,100 $182,150
Passaic County
$102,800 $117,500 $132,200 $146,900 $158,650 $170,400 $182,150 $193,900
Somerset County
$113,900 $130,200 $146,450 $162,700 $175,750 $188,750 $201,750 $214,800
Union County
$96,600 $110,400 $124,200 $138,000 $149,050 $160,100 $171,100 $182,150
Warren County
$96,950 $110,800 $124,650 $138,500 $149,550 $160,650 $171,700 $182,800
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APPENDIX B: INCOME CERTIFICATION FORM
APPLICANT NAME: PROGRAM ID:
DAMAGED PROPERTY ADDRESS:
HOUSEHOLD MEMBERS: List all household members and provide the requested information which is supported by your 2021/2022
Federal Tax Return. “Household” is defined as all persons living in the same dwelling unit, regardless of relationship.
The number of people presently in my household who are 18 years of age or older:
The number of people presently in my household who are younger than 18 years of age:
Total household members:
List the ANNUAL INCOME of all adult household members for 2022. “Adult” is defined as any household member 18 years or older.
Household
Member Name Income Source #1 Income Source #2 Income Source #3 TOTAL
Type (such as name of
employer, SS/SSI,
Retirement, Unemployment
Amount
Type
Amount Type Amount
Amount
TOTAL
If a household member has additional sources of income, please make a copy of this page, and fill out for additional sources.
ESTIMATE TOTAL ANNUAL HOUSEHOLD INCOME FOR 2023:
When developing this estimate only include amounts that are certain to be received in 2022. For example, if it is uncertain whether your salary
will increase in 2023 or if your interest, income, or tips/bonus amounts are unknown, please use the 2022 amount when estimating 2023 income.
HEAD OF HOUSEHOLD MUST SIGN:
I certify that this information regarding my 2022 and 2023 household income is complete and accurate. I agree to provide to the State of New
Jersey or its designated contractor additional information and documentation on all income sources upon request.
We authorize the State of New Jersey and its designated contractors to verify the reported income information with third party sources.
WARNING: The information provided on this form is subject to verification by the State of New Jersey and the Department of Housing and Urban
Development (HUD) at any time. Title 18, Section 1001 of the U.S. Code states that knowingly and willingly making a false or fraudulent statement to a
department of the United States Government can result in termination of assistance and civil and criminal penalties.
Version 1 | January 2023
Signature of Head of Household
Printed Name Date
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APPENDIX C: AWARD CALCULATION
Applicant Name Applicant ID
Damaged Property
Address
Mailing
Address
Phone Number Household Income
Calculation Date Feasibility
Pathway
1. Total Development Cost
1a. Work in Place (Completed Repairs at Initial Site Inspection)
1b. Estimated Cost to Complete
1c. Estimated Elevation Cost
1d. Estimated Lead Hazard Abatement Cost
1e. Total Development Cost (1a + 1b + 1c + 1d)
1f. Total Estimated Remaining Cost to Complete (1b + 1c+ 1d)
2. Duplication of Benefits (DOB) - Funds Available From Other Sources
2a. FEMA
2b. Small Business Administration (SBA)
2c. Homeowners Insurance
2d. National Flood Insurance Program (NFIP) Insurance
2e. Increased Cost of Compliance (ICC)
2f. Non-Profit/Charitable/Other Funding
2g. Total Funds Available from Other Sources (2a + 2b + 2c + 2d + 2e + 2f)
3. Unmet Need Calculation
3a. Remaining Funds from Other Sources (2g - 1a)
3b. Unmet Need (1f - 3a)
4. Award Calculation
4a. Remaining Contract to Complete
4b. Contract Gap
4c. Program Ineligible Upgrades
4d. Remaining Funds from Other Sources
4e. Max Award Calculation
4f.Non-Program Fund Requirement (4b + 4c + 4d)
4g. HARP Award (4e - 4c)
Acknowledgement
Print Name Date
Signature
Program Representative Name Date
Program Representative Signature
HARP Award Calculation
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APPENDIX D: DOB QUESTIONNAIRE
Applicant Name:
Program ID:
Damaged Property
Address:
To enable us to continue to process your application, please provide the information requested
below.
1. How many bedrooms were in your damaged residence at the time of the storm? _
2. Have you received a substantial damage letter from the Flood Plain Manager? Yes
No
3. Was your home destroyed or so seriously damaged that you believe it is likely a new
home will have to be built rather than repairing your home?
Yes
No
4. Does anyone in your household have a disability or mobility impairment that requires
special adaptations to your home (such as a wheel chair ramp or lowered cabinets)?
Yes
No
5. Do you currently have a builder working on your home? Yes No
If yes, please provide contact information for your builder. * No work should be
conducted after the date of application. Construction may begin again after the grant
agreement is signed.
Builder Company Name
Representative:
Address
Telephone: ( )- -
Duplication of Benefits
Federal regulations require the State of New Jersey to conduct a duplication of benefits (DOB)
analysis to ensure that (1) applicants do not receive more federal funds than needed and (2)
funds are used to meet a need the applicant still has after considering other funds received.
Applicants must report all assistance they have received for damage to their homes from such
sources as insurance, Small Business Administration (SBA), Federal Emergency Management
Agency (FEMA), National Flood Insurance Program (NFIP), Increased Cost of Compliance
Coverage (ICC), and other local, state, or Federal programs, and private or nonprofit charitable
organizations.
Any funds you received from these sources for repairs to your home must be considered when
the amount of your grant is determined. If you received funds for a purpose other than the
repair or reconstruction of your home, they do not need to be reported (e.g., contents).
Please use the chart on the next page to describe the funds you have received to repair or
reconstruct your home.
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FUNDS RECEIVED FOR REPAIRS/RECONSTRUCTION OF THE DAMAGED RESIDENCE AS
A RESULT OF TROPICAL STORM IDA DAMAGE
SOURCE OF
FUNDS
Amount you have
received to repair
your home (1)
Enter any more funds
you expect from
insurance or SBA (2)
How much of these
funds have you
spent? (3)
How much of these funds still
remain to complete repairs
to
your home? (4)
SBA
$ $ $ $
FEMA
$ $ $ $
Flood Insurance
$ $ $ $
Homeowners
Insurance
$ $ $ $
ICC Coverage
Funds
$ $ $ $
Nonprofit
organizations
$ $ $ $
Other Source $ $ $ $
TOTAL
$ $ $ $
Column (1) - Column (3) = Column (4) Example: $50,500 - $15,000 = $35,500
Please Note: If you have already spent any of the funds you identified above, please complete
the next chart that shows how the money was spent. You should provide as much detail as
possible so the Program can document and account for the full amount of funds you have
already spent on repair or reconstruction in your grant award. Program does not provide any
reimbursement.
COMPLETE THIS SECTION IF YOU HAVE MADE REPAIRS ON YOUR HOME.
Please provide as much detail as you can about the work completed and begin to accumulate
paid receipts and invoices to support the funds spent.
Purpose Description (what work was done, location of work, and quantities
where possible e.g., 6 windows)
Total Spent
EXAMPLE: Repair: Replaced windows Location:
Living Room and 2 Bedrooms
Quantity: 6 windows
Example:
$10,000.00
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Purpose Description (what work was done, location of work, and quantities
where possible e.g., 6 windows)
Total Spent
Mold/Water
Remediation
$
Debris Clean
Up/Demolition
$
Interior Repairs
$
Roof Repairs /
Exterior Repairs
$
Windows
$
Wells / Septic
Tanks
$
Electrical
Repairs
$
Plumbing
Repairs
$
Appliances
$
Engineer /
Surveyor /
Public Adjuster
$
Other
Purposes
$
$
$
TOTAL
$
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APPLICANT CERTIFICATION
I certify that the information provided in this questionnaire is true and accurate to the best of
my/our ability. I understand that if this information is not correct, it may affect the amount of any
grant I may receive.
Applicant Name (Typed or Printed) Applicant Signature Date
WARNING: The information provided on this form is subject to verification by the State of New
Jersey and the Department of Housing and Urban Development (HUD) at any time. Title 18,
Section 1001 of the U.S. Code states that knowingly and willingly making a false or fraudulent
statement to a department of the United States Government can result in termination of
assistance and civil and criminal penalties.
