The Real Deal New York

Sandy recovery update: NYC on track, New Jersey under fire

De Blasio says city disbursed over $6.3M in homeowner aid; NJ paid contractors nearly $100M
July 17, 2014 04:10PM

New York City is back on track with post-Hurricane Sandy rebuilding, according to Mayor Bill de Blasio. Nearby New Jersey, however, is under fire for spending nearly $100 million in federal funds on contractors, including one that was later fired for poor performance, according to a report released Wednesday.

So far, the city’s initiative has finished 30 homes and disbursed over $6.3 million to reimburse homeowners for reconstruction costs, the mayor said in an announcement today. Those numbers have the city on track to have started work on 500 homes and disbursed 500 checks by Labor Day.

The announcement follows a promise to reach benchmarks announced three months ago, as frustration with the program’s slow pace mounted.

Across the river, the Garden State has shelled out $91.7 million through the end of June on eight contractors tasked with helping homeowners rebuild — and that amount is likely to grow, the Wall Street Journal reported. And while that figure accounts for only a sliver of the over $4 billion in relief set aside by the U.S. Department of Housing and Urban Development for the state, the use of contractors has come under scrutiny since one Louisiana-based firm was criticized for its system of helping homeowners apply for grants earlier this year. [Crain’s] and [WSJ]Julie Strickland