Home > Uncategorized > Letter From HUD Inspector General Vows Strict Audit and Enforcement Oversight of NJ Sandy Funds

Letter From HUD Inspector General Vows Strict Audit and Enforcement Oversight of NJ Sandy Funds

Climate Change and Sea Level Rise Not Incorporated in Enforceable State Programs

Christie Seeks To Use Federal Funds As State Match Requirement

Unless the federal rules are enforced, New Jersey will use these funds to recreate the pre-Sandy highly vulnerable development pattern, ensuring that billions of federal dollars will be wasted on projects virtually certain to be destroyed by climate change-driven sea level rise and extreme storm events.  ~~~  Bill Wolfe, Director, NJ PEER

Interesting stuff in the HUD IG letter – the new 2 year “use it or lose it” may relate to the recent firing of HGI contractor and jeopardize millions of dollars of unexpended RREM funds.

[BTW, we predicted this chaos – and why it would occur – 2 weeks after Sandy struck]

From out friends at PEER:

Press Release

For Immediate Release: Wednesday, February 5, 2014

Contact:  Bill Wolfe (609) 397-4861; Leola Webb (202) 265-7337

New Christie Sandy Spending Plan Has Gaping Holes

HUD Beefs up Audits for Jersey Expenditures; 2-Year Use-It-or-Lose-It Deadline

Trenton — New Jersey Governor Chris Christie’s long-awaited plan for spending the bulk of federal funds awarded to the state for post-Super Storm Sandy relief suffers from several gaps and flaws.  At the same time, the U.S. Department of Housing & Urban Development (HUD) Office of Inspector General has signaled that it has expanded its audit and enforcement efforts in New Jersey, including a “spending deadline” for use of funds, according to a letter released today by Public Employees for Environmental Responsibility (PEER) which had asked for this more intensive review.

Earlier this week, the Christie administration unveiled its plan for spending nearly $1.5 billion in federal reconstruction aid.  While more problems will be uncovered during scheduled hearings—which will be the first time public input has been solicited on New Jersey’s plans–several key features jump out on first review:

  • The Christie administration proposes to pay the state match with federal funds, a clear misuse of federal funds for which the state is required to provide a partial match with its own funds;
  • Each state is supposed to have a comprehensive “science-based” risk analysis that it “has or will employ to select, prioritize, implement, and maintain infrastructure projects or activities.” However, New Jersey has no such risk analysis.  Nor does the plan specify any mechanism for ensuring these analyses would be implemented if they were written; and
  • For the largest pot of funds, the Homeowner Reconstruction, Rehabilitation, Elevation and Mitigation (RREM) Program, in Tier One New Jersey found 12,389 homes eligible  but just 5,124 (41%) have “received a grant award” (this may not be actual cash in hand for the homeowner).  In the new Tier Two plan, New Jersey requests $390 million more for RREM, yet fails to explain the delay in disbursement or disclose why the contractor was abruptly fired, or provide a plan for fixing whatever it was that caused the delay in the first place.

“It takes a lot of nerve to use federal funds for the state match to qualify for federal funds,” stated New Jersey PEER Director Bill Wolfe. “This is less a plan than a vague promise to write a plan.”

On January 15, 2014, PEER asked the HUD Inspector General to broaden its current investigation on the “Stronger than the Storm” media contract to include New Jersey’s compliance with a host of federal rules, ranging from incorporating climate change to using a “transparent and inclusive process” to select projects.  In a response dated January 28th, Randy McGinnis, Assistant Inspector General for Audit, wrote that the federal agency is committing “significant audit, evaluation and investigative resources” to oversight and pledged that “we will ensure that HUD is enforcing Federal requirements” cited by PEER.

In addition, the letter indicated that “HUD established a spending deadline for Hurricane Sandy funds which is 2 years from the date of the grantee’s grant agreement.”  For Tier Two funding, that deadline will start to run once HUD accepts New Jersey’s just unveiled funding plan.  For Tier One funds, however, the deadline is already running and, at its current rate, New Jersey may have to forfeit unspent funds.

“HUD appears to have woken up to the fact that the Christie administration has made a mess of post-Sandy reconstruction,” Wolfe added.  “Unless the federal rules are enforced, New Jersey will use these funds to recreate the pre-Sandy highly vulnerable development pattern, ensuring that billions of federal dollars will be wasted on projects virtually certain to be destroyed by climate change-driven sea level rise and extreme storm events.”

###

Read the HUD IG letter

See PEER call for expanded federal audit of Jersey Sandy spending

Look at new Christie $1.5 billion Sandy spending plan

View language on New Jersey using federal funds for state match

New Jersey PEER is a state chapter of a national alliance of state and federal agency resource professionals working to ensure environmental ethics and government accountability

 

Categories: Uncategorized Tags:
  1. No comments yet.
Comment pages
1 2 3 31956
  1. October 27th, 2014 at 07:52 | #1
  2. April 28th, 2015 at 18:44 | #2
  3. May 20th, 2015 at 08:50 | #3
  4. June 2nd, 2015 at 22:25 | #4
  5. June 7th, 2015 at 10:37 | #5
  6. June 9th, 2015 at 21:50 | #6
  7. June 18th, 2015 at 23:08 | #7
  8. June 25th, 2015 at 17:04 | #8
  9. June 25th, 2015 at 19:52 | #9
  10. June 25th, 2015 at 21:28 | #10
  11. June 25th, 2015 at 21:30 | #11
  12. June 26th, 2015 at 01:29 | #12
  13. June 26th, 2015 at 05:42 | #13
  14. June 26th, 2015 at 08:14 | #14
  15. June 26th, 2015 at 09:51 | #15
  16. June 26th, 2015 at 12:15 | #16
  17. June 26th, 2015 at 18:35 | #17
  18. June 26th, 2015 at 21:17 | #18
  19. June 27th, 2015 at 00:07 | #19
  20. June 27th, 2015 at 08:46 | #20
  21. June 27th, 2015 at 12:35 | #21
  22. June 27th, 2015 at 13:58 | #22
  23. June 27th, 2015 at 21:28 | #23
  24. June 28th, 2015 at 06:50 | #24
  25. July 1st, 2015 at 11:06 | #25
  26. July 1st, 2015 at 17:11 | #26
  27. July 1st, 2015 at 17:19 | #27
  28. July 1st, 2015 at 20:09 | #28
  29. July 3rd, 2015 at 09:08 | #29
  30. July 3rd, 2015 at 09:46 | #30
  31. July 3rd, 2015 at 10:01 | #31
  32. July 3rd, 2015 at 10:35 | #32
  33. July 3rd, 2015 at 19:23 | #33
  34. July 3rd, 2015 at 20:16 | #34
  35. July 3rd, 2015 at 20:26 | #35
  36. July 3rd, 2015 at 21:46 | #36
  37. July 4th, 2015 at 05:28 | #37
  38. July 4th, 2015 at 06:33 | #38
  39. July 4th, 2015 at 19:06 | #39
  40. July 4th, 2015 at 23:07 | #40
  41. July 5th, 2015 at 01:42 | #41
  42. July 5th, 2015 at 04:28 | #42
  43. July 5th, 2015 at 14:44 | #43
  44. July 5th, 2015 at 22:30 | #44
  45. July 6th, 2015 at 03:51 | #45
  46. July 6th, 2015 at 05:27 | #46
  47. July 6th, 2015 at 05:28 | #47
  48. July 6th, 2015 at 08:15 | #48
  49. July 6th, 2015 at 15:26 | #49
  50. July 6th, 2015 at 16:25 | #50
  51. July 6th, 2015 at 19:21 | #51
  52. July 6th, 2015 at 19:46 | #52
  53. July 6th, 2015 at 19:51 | #53
  54. July 7th, 2015 at 01:46 | #54
  55. July 7th, 2015 at 07:40 | #55
  56. July 7th, 2015 at 11:33 | #56
  57. July 7th, 2015 at 11:54 | #57
  58. July 7th, 2015 at 18:28 | #58
  59. July 7th, 2015 at 22:19 | #59
  60. July 7th, 2015 at 22:19 | #60
  61. July 7th, 2015 at 22:20 | #61
  62. July 7th, 2015 at 22:20 | #62
  63. July 7th, 2015 at 22:22 | #63
  64. July 7th, 2015 at 22:23 | #64
  65. July 8th, 2015 at 04:12 | #65
  66. July 8th, 2015 at 05:07 | #66
  67. July 8th, 2015 at 15:43 | #67
  68. July 8th, 2015 at 15:50 | #68
  69. July 8th, 2015 at 20:11 | #69
  70. July 9th, 2015 at 00:59 | #70
  71. July 9th, 2015 at 05:40 | #71
  72. July 9th, 2015 at 09:24 | #72
  73. July 9th, 2015 at 09:25 | #73
  74. July 9th, 2015 at 09:25 | #74
  75. July 9th, 2015 at 09:26 | #75
  76. July 9th, 2015 at 15:20 | #76
  77. July 9th, 2015 at 16:24 | #77
  78. July 9th, 2015 at 23:17 | #78
  79. July 9th, 2015 at 23:32 | #79
  80. July 10th, 2015 at 06:07 | #80
  81. July 10th, 2015 at 10:20 | #81
  82. July 10th, 2015 at 17:46 | #82
  83. July 10th, 2015 at 19:54 | #83
  84. July 11th, 2015 at 08:30 | #84
  85. July 11th, 2015 at 09:33 | #85
  86. July 11th, 2015 at 09:33 | #86
  87. July 11th, 2015 at 13:20 | #87
  88. July 11th, 2015 at 15:58 | #88
  89. July 11th, 2015 at 22:04 | #89
  90. July 12th, 2015 at 00:51 | #90
  91. July 12th, 2015 at 02:26 | #91
  92. July 12th, 2015 at 05:58 | #92
  93. July 12th, 2015 at 06:56 | #93
  94. July 12th, 2015 at 07:05 | #94
  95. July 12th, 2015 at 11:02 | #95
  96. July 12th, 2015 at 12:50 | #96
  97. July 12th, 2015 at 13:20 | #97
  98. July 12th, 2015 at 18:20 | #98
  99. July 12th, 2015 at 19:15 | #99
  100. July 12th, 2015 at 23:34 | #100
  101. July 12th, 2015 at 23:54 | #101
  102. July 13th, 2015 at 00:16 | #102
You must be logged in to post a comment.