[Third Reprint]

ASSEMBLY, No. 4784


with Assembly Floor Amendments

(Proposed by Senator TURNER)




      These Senate amendments provide for a single payment plan for over-disbursement debt of Sandy-affected homeowners. The bill originally set forth a standard payment plan and non-standard payment plan, the eligibility for which was determined by net disposable income. Under the amendments, DCA would provide a payment plan to all Sandy-impacted homeowners to repay any over-disbursement debt either in lump-sum or in 60 months, paying as much or as little as they choose per month, over the course of the repayment period until the debt is satisfied. At the end of 60 months, any remaining debt would be transferred to the Division of Revenue and Enterprise Services in the Department of Treasury.

      The amendments provide that in cases when over-disbursement was made to a Sandy-impacted, low income or moderate income homeowner, as the equivalent terms are defined by the United States Department of Housing and Urban Development, and the homeowner does not have sufficient income, assets, or resources to make payments, the homeowner may request to have some or all of the over-disbursement debt compromised.  In such a case, DCA would determine whether a low-to-moderate income Sandy-impacted homeowner does not have sufficient income, assets, or resources to make payments. If that determination is made, the over-disbursement debt, except for any portion of the debt the debtor can pay through disposable assets, would be compromised in whole or in part.

      Under the amendments, in making the determination, DCA would evaluate the homeowner’s assets, income, and reasonable living expenses to determine whether the homeowner can pay the debt. Additionally, when determining the ability of a low-to-moderate income Sandy-impacted homeowner to repay the debt, DCA may consider the homeowner’s age, health, financial hardship, and other extraordinary circumstances as determined by the Commissioner of Community Affairs.          

      The amendments also specify that any Sandy-impacted homeowner who received an over-disbursement of RREM  or LMI funds, and for whom a Final Grant Reconciliation Document has been signed by DCA or who has repaid an over-disbursement debt either in whole or in part, may appeal the DCA’s determination in writing.  Finally, the amendments require that information about the appeals process be placed on DCA’s Internet website.