Municipalities ravaged by Super Storm Sandy are no longer required to repay millions of dollars in federal government loans that were distributed to help them recover from the storm.
A bill signed by President Joe Biden includes the cancellation of community disaster loans worth tens of millions of dollars that were granted to several coastal towns affected by Sandy in 2012.
Without the decision, according to the New Jersey congressional delegation, 18 New Jersey municipalities would still owe more than $ 25 million.
“Traditionally, these loans have been canceled, but in recent years efforts have been made to ensure that this does not happen,” said Congressman Frank Pallone, DN.J. 6th District, declared New Jersey 101.5. “We had to fight a long battle to achieve this. “
Pallone and Congressman Andy Kim, DN.J. 3rd District, held a press conference Tuesday in Toms River regarding the loan cancellation.
“I’m proud to have fought and won over $ 12 million in total loan forgiveness for several towns and schools in Ocean County,” Kim said.
Pallone said this is great news for residents who may have seen loan obligations come back to them in the form of increased taxes or reduced services.
“Forgiving the millions of dollars in community disaster loans is an important step in finally putting Sandy behind us,” said Highlands Mayor Carolyn Broullon.
“The remission of the Community Disaster Loan means our residents will not have to pay millions of dollars on top of the devastation they have already suffered,” added Keansburg Mayor George Hoff.
Pallone said the fight continues to end federal disaster loan repayments by individuals as well – he says the funding should have been in the form of grants, not loans. From now on, New Jersey residents have until 2023 to repay so-called “clawbacks” of Sandy-related funds, unless those funds were obtained fraudulently.
Contact reporter Dino Flammia at [email protected]
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