New Jersey has published its action plan for the $1.8 billion CDBG grant allocated by HUD to assist the State's Hurricane Sandy recovery efforts. The public comment period for the action plan will end at 5:00 pm on March 19. Additional allocations are expected to be made at subsequent dates to be determined by HUD. Funds must be spent within two years unless HUD provides an extension. Governor Christie has designated the New Jersey Department of Community Affairs as the entity responsible to HUD for administering the distribution of CDBG funds for New Jersey. The action plan provides for the distribution of the $1.8 billion of CDBG funds in the following areas: homeowner assistance; rental housing; economic revitalization; and support for state and local agencies. Within each category are a variety of programs to address specific recovery needs. As an example, with respect to rental housing, $100,000,000 is designated to facilitate the creation of quality, affordable housing units to help New Jersey recover from the loss of multi-family housing. CDBG funds will be provided as zero- and low-interest loans to qualified developers to leverage 9% and 4% low income housing tax credits, tax-exempt bonds and stand-alone financing to support development. Awards will be limited to $120,000 per unit. Similarly $75,000,000 will be awarded through NJEDA in amounts up to $10,000,000 to redevelopment agencies, municipalities, businesses and nonprofits, including CDFIs and CBDOs for community revitalization. These funds may be used for property acquisition, demolition, site preparation and infrastructure repair and installation as well as physical improvement and expansion of existing facilities.
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