The federal government will cover New York City’s entire cost of Hurricane Sandy-related recovery, according to a new report from the city’s Independent Budget Office seen by Crain’s.
Roughly 90 percent of the $6.3 billion in Sandy-related emergency and recovery spending will be funded by the Federal Emergency Management Agency, or FEMA. The remaining 10 percent will come through community development block grant funds.
The city has been banking on federal aid, Doug Turetsky, chief of staff at the Independent Budget Office, told Crain’s. Turetsky added that it was “good news we won’t be left footing part of that bill ourselves.” FEMA reimbursements for natural disasters begin at 75%, with Congress having the wiggle room to push that figure to 90 percent.
The report also showed federal allocations for cleanup, relief and repair needs — $1.4 billion — and capital improvement needs — $3.1 billion — as well as current costs of Sandy-associated city labor — $341 million. The city also received a further $1.8 billion in federal community development funds, which will help with public housing and business recovery. The city’s Rapid Repairs program — which enables landlords to make timely fixes to restore heat, power and hot water — cost $500 million. [Crain’s] – Hiten Samtani