Sandy victims express anger, confusion to learn they may be ineligible for $720 million in new relief grants
Federal government is making money available through 'NYC Build It Back Program' but anybody who already approved for a loan from the U.S. Small Business Administration is ineligible, even if they didn't accept the money.
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| Assemblyman Phil Goldfeder (second from l.) is urging the feds to allow city residents who were previously advised to seek assistance fromt the U.S. Small Business Administration to secure grants now being awarded under a newer program. |
First came the storm. Then came the bureaucracy.
There is $720 million available in new grant money for victims of Superstorm Sandy, but many folks are learning that since they already applied for a federal loan, they are not eligible — even if they didn’t accept any money.
Elected officials are urging the feds to allow the city residents — who were previously advised to seek assistance from the U.S. Small Business Administration — to secure grants.
“Everybody was urged to sign up for SBA loans,” said Assemblyman Phillip Goldfeder (D-Rockaway Beach), who is urging the city to address the problem. “Now they’re being penalized for it.”
Homeowners who didn’t accept the loans may soon be able to qualify for grants, which are distributed by the NYC Build It Back Program with money from the U.S. Department of Housing and Urban Development.
But residents who accepted the funds won’t be eligible for grants because they already received government assistance, federal officials said.
It’s all very confusing, and Breezy Point resident Kelly Jahrnes isn’t sure if she qualifies.
The 35-year-old mother of four was approved for a $114,000 federal loan after Sandy flooded her family’s basement, damaged her roof and destroyed her boiler and electrical panel.
“Nobody knew the ramifications of simply applying for a SBA loan,” Jahrnes said. “Now these grants are available and I can’t apply for them.”
Many local leaders now regret encouraging their neighbors to apply to the earlier program.
“(FEMA) told us you must make sure that everybody applied for an SBA loan,” said Dan Mundy Jr., president of the Broad Channel Civic Association. “If they had never applied, they would have had a fantastic shot of getting grant money.”
Muddling matters even further, the grants are only available to residents whose homes were not severely damaged, to cover repairs they already paid out-of-pocket.
But homeowners whose houses sustained damages worth at least 50% of their pre-storm value are not eligible for the reimbursement grants.
The city has been working with federal officials to clarify these issues. Meanwhile, any Sandy victim who needs assistance is being advised to apply.
“If you still have damages and you still need assistance, register,” said NYC Build It Back spokesman Peter Spencer.
There are no caps on grant amounts, he said. Funding will be based on how much is needed to finish repairs.
About 12,000 city residents have applied for relief through the program, which opened in June. Applications will be accepted through Sept. 30, Spencer said.
To apply for a NYC Build It Back grant, call 311 or visit nyc.gov/builditback.
We were MORE THAN "URGED" to apply for an SBA. We were berated with the mantra, "Have you applied for an SBA loan?" There were promises? threats? 'If you don't apply for an SBA loan you may not get all of (or any) the help from FEMA.
ReplyDeleteThe storm was, and remains, the least of our problems. How do you strike fear into the hearts of Sandy victims with mere words?
"We're from the government. We're here to help"