President Biden touring storm-ravaged neighborhoods in Manville after Hurricane Ida in September 2021. (Photo by Edwin J. Torres | NJ Governor’s Office)
Lawmakers are looking for a new way to offer relief to Hurricane Ida victims still required to pay the mortgage on properties that have long been inhabitable, weeks after Gov. Phil Murphy conditionally vetoed a similar bill.
Sen. Troy Singleton (D-Burlington), the chief sponsor of the measure, said it’s “frustrating” to start from the beginning on this plan after working with the governor’s office for compromises on the initial bill. The bill’s supporters have said they were stunned the governor vetoed the first bill.
“Surprises are not things I’m a big fan of,” he said.
He told families attending a Senate Community and Urban Affairs Committee hearing Monday that the new bill would be different from the first one, but it would still ensure “all, not just some, will have an opportunity to gain the relief they need.”
He underscored that the new version of the legislation still offers mortgage forbearance and foreclosure protections to residents impacted by Hurricane Ida, which devastated parts of the state three years ago. The 2021 storm left thousands displaced and 30 people dead and was one of the deadliest storms in New Jersey’s modern history.
Murphy sent the original bill, which was unanimously passed in the Legislature, back to lawmakers, saying he had concerns it wasn’t equipped with enough oversight to avoid abuse.
Murphy provided a lengthy list of changes he wanted to see to the bill, like limiting awards to homeowners enrolled in state disaster recovery programs and requiring their applications for forbearance get reviewed by state officials. The governor said these changes would “provide targeted and appropriate relief to residents who are still burdened by damage caused by Hurricane Ida.”
Language in the new bill would direct people to apply for relief from the Department of Community Affairs, which would grant a certification of eligibility for forbearance if the application is approved.
The agency would be tasked with launching an online program for people seeking relief within 90 days of the bill becoming law. People would have 30 days to apply for the program once applications open.
Within 60 days of submission, the department must decide whether the applicant meets the criteria or not. People who are denied would be able to appeal the decision. If the department fails to act within 60 days, the bill would require the department to issue that certification.
While Murphy wanted relief limited to people enrolled in state disaster relief programs, the new version wouldn’t require that. It would open eligibility to those who “occupied the residential property as their primary residence and received federal disaster assistance for needs related to damage sustained from the remnants of Hurricane Ida.”
Homeowners told lawmakers Monday how helpful mortgage forbearance would be. Three witnesses said they were all denied federal relief funds and were struggling to pay bills or repay other loans they had to take out. The longer the state takes to stand up relief programs, the more expenses pile up, they said.
Debby Josephs, a Manville resident, said she didn’t receive any assistance from local or federal officials. Her town of about 10,000 people received 10 inches of rain over three hours during Ida, which flooded most of the borough. In August 2023, the state told Manville residents that people who wanted to elevate and rebuild their homes would have to do so on their own dime — state aid would only be available for residents willing to move from flood-prone areas.
Josephs said the rug “was quickly and unknowingly pulled right from underneath us” multiple times, like when the state reversed course on state aid and Murphy vetoed the relief bill last month. She urged lawmakers to help residents who are still struggling to balance paying rent on their new homes and a mortgage on their damaged houses.
“I encourage and am counting on this mortgage forbearance to finally give us the much-needed relief after three years of struggle,” Josephs said.
As lawmakers voted, they also voiced their frustration at having to advance this legislation again.
“I don’t even know why we’re here redoing this bill, but I was a yes last time. I’m an absolute yes this time,” said Sen. Holly Schepisi (R-Bergen).
The measure advanced unanimously and was referred to the Senate Budget and Appropriations Committee. The companion bill in the lower chamber, also introduced last week, has yet to be scheduled for a hearing in the Assembly Housing Committee.
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