$25M In Federal Disaster Loans From Sandy Forgiven For NJ Towns

TOMS RIVER, NJ — In the wake of Superstorm Sandy in 2012, Jersey Shore communities borrowed millions from the federal government to pay for the cleanup.

Those Community Disaster Loans from the Federal Emergency Management Agency have lingered, weighing on the finances of local governments that were saddled with losses to their property tax base from homes that were destroyed.

Those loans are no longer an issue, however; the government operations bill signed last week by President Joe Biden included loan forgiveness for New Jersey communities that still owed money to the federal government.

Eighteen towns and school districts from Monmouth County to Cape May County still owed more than $25 million to the federal government, officials said.

On Tuesday, that relief was highlighted at a news conference in Toms River, where U.S. Reps. Frank Pallone Jr. and Andy Kim joined officials from Monmouth and Ocean counties to celebrate the signing.

"I’m proud to have fought for and won more than $12 million in total loan forgiveness for several Ocean County towns and schools," said Kim, who represents much of Ocean County. "This relief is an important step in healing our communities, but there’s still work ahead of us. I won’t stop fighting until every single homeowner in my district has the financial relief they need."

"It’s simply unfair to force New Jersey residents to bear the burden of paying millions of dollars that they needed after a time of crisis," Pallone said. "I’m glad we were able to get loan forgiveness across the finish line."

Kim noted the efforts of U.S. Reps. Chris Smith and Jeff Van Drew in pushing for the loan forgiveness, which helped Atlantic Highlands, Union Beach, Keansburg, Highlands, Avon-by-the-Sea, Manasquan, Point Pleasant Beach, Point Pleasant Borough, Berkeley Township, Toms River, Stafford Township, Little Egg Harbor Township, Beach Haven, Ventnor City, and the Central Regional, Seaside Park, Manasquan, Ocean Gate and Tuckerton school districts.

"Superstorm Sandy devastated Highlands," Mayor Carolyn Broullon said. "Even all these years later, the Borough is still recovering. Forgiving the millions of dollars in Community Disaster Loans is a major step in finally putting Sandy behind us."

"We cannot thank Congressman Pallone and the New Jersey Congressional Delegation enough for never forgetting about Union Beach and the havoc Superstorm Sandy created for the Borough and its residents," Mayor Charlie Cocuzza said. "CDL forgiveness means Union Beach can move forward with its ongoing recovery without the weight of hundreds of thousands of dollars in federal loan debt."

"'Community Disaster Loan forgiveness means our residents won't have to be on the hook for millions of dollars on top of the devastation they have already had to endure," Keansburg Mayor George Hoff said.

In Toms River, Mayor Maurice Hill said the township still owed about $3 million of $5 million it had borrowed in the wake of Sandy, which wiped out hundreds of homes and created millions of dollars in loss to the township's property tax ratable base.

The loan forgiveness is a huge relief for Toms River taxpayers, he said.

The loan forgiveness allows the affected towns and school districts to use funds for other priorities, particularly critical in the wake of the additional financial stresses caused by the coronavirus pandemic.

Kim and Pallone said they are continuing to fight "clawbacks," where the FEMA has sought repayment from homeowners who received more money than FEMA says they should have received.

“It's great news that we secured Sandy Community Disaster Loan forgiveness for towns in the spending bill that House passed and President Biden signed into law," said Joseph Mangino, president of the New Jersey Organizing Project, which has fought for Jersey Shore residents on issues related to Sandy.

"My town, Stafford, has a Community Disaster Loan," he said. "It’s not just our towns that are being asked to unfairly repay disaster relief funding, it’s also individuals like me. We are hopeful that individual clawback relief will be included in future bills and stand ready to work with Ida-impacted families to make sure everyone gets home and whole."