New Jersey Assembly Bill A723

New Jersey 2022-2023 Regular Session

• Introduced: 1/11/22
• Refer: 1/11/22

Caption

Establishes process for recovery of Superstorm Sandy aid overpayments and makes General Fund appropriation.

Impact

The bill aims to facilitate a structured process for those Sandy-impacted homeowners to repay debts incurred from over-disbursements. It allows for flexible payment options where homeowners can choose to pay in a lump sum or over a maximum of 60 months, which is designed to ease the financial burden on those who may struggle to repay these debts. Particularly for low- to moderate-income homeowners, the bill permits the Department to compromise debts if the homeowner demonstrates financial hardship, factoring in elements such as income, assets, and basic living expenses when assessing repayment capacity. This could potentially alleviate financial pressure on vulnerable populations who have already suffered substantial losses due to the disaster.

Summary

Assembly Bill A723 establishes procedures for the recovery of overpayments made to homeowners affected by Superstorm Sandy through state-sponsored aid programs like the Reconstruction, Rehabilitation, Elevation and Mitigation Program (RREM) and the Low-to-Moderate Income Homeowner Rebuilding Program (LMI). The bill mandates that homeowners who have received an over-disbursement of funds are to be notified of their debts and the repayment conditions. This includes a detailed accounting of disbursed funds, homeowners' rights, and information on how to appeal the determination of over-disbursement. Notably, it requires that this information be easily accessible on the Department of Community Affairs' (DCA) website.

Contention

Some points of contention surrounding A723 could involve how effectively the DCA will assess the qualifications for debt compromise, especially in terms of income eligibility and the consideration of extraordinary circumstances like age and health. The potential for administrative challenges in implementing this appeals process and the overall effectiveness in managing debt recovery, alongside addressing homeowner grievances, are also points of concern. Furthermore, the stipulation that no actions for debt recovery can be initiated beyond three years post-project completion could prompt debates on accountability and timely resolution of any disbursement errors.