New York lawmakers slam 'appalling' HUD plan to divert $1B in Hurricane Sandy aid

The Department of Housing and Urban Development has proposed holding a 'national resiliency competition' in which other states that have had disasters can apply for at least $1 billion of the $3.5 billion remaining from last year's Sandy appropriation. Lawmakers say residents of New York and New Jersey still 'sorely need' the funds.

BY DAN FRIEDMAN 

 NEW YORK DAILY NEWS
April 22, 2014

WASHINGTON — New York lawmakers were up in arms Monday over a federal proposal that would allow at least $1 billion in Hurricane Sandy aid to be diverted to other areas of the country.

Rep. Michael Grimm (R-Staten Island) called the Department of Housing and Urban Development plan “appalling.”

“This proposal needs to go directly into Secretary (Shaun) Donovan’s trash can, and I will be personally conveying that sentiment to him,” Grimm said.

At issue is HUD’s proposal to hold a “national resiliency competition.” It would allow other states that have had disasters to apply for at least $1 billion of the $3.5 billion in funds remaining from last year’s Sandy appropriation to HUD. The money would be used for projects 

that fortify communities against future disasters.

“Any effort to make disaster victims compete against each other for financial assistance is ridiculous,” said Rep. Eliot Engel (D-Bronx). “There are still many individuals and families who sorely need these funds.”

Sandy legislation allows the HUD money to be used in any federally declared disaster area — but Sen. Chuck Schumer (D-N.Y.) said that’s only if New York and New Jersey don’t need the money for Sandy recovery.

“We will fight to ensure that every one of New York’s needs is met before a national competition sends a single Sandy relief dollar elsewhere,” said Schumer, who spoke several times Monday to HUD’s secretary.

Mayor de Blasio also criticized the HUD proposal.

“The legislation was passed to serve the needs of people in New York and New Jersey who were devastated by Sandy. And it was about both getting people back on their feet and providing the resiliency we need for the future,” de Blasio said.

But a federal official said the bill gives HUD discretion in how to spend the money. The official said HUD already spent $1 billion of the funds for recovery from disasters like tornadoes in Joplin, Mo., and mudslides in Colorado.

“All of these allocations have been made with public announcements and, up until now, members of Congress have not complained about using the funds in this manner,” the official said.