City to Begin Distributing Storm Aid This Summer (New York Times)

New York Times
(5/10/2013 3:15 PM, Mireya Navarro)

The federal government has approved New York City's plan to spend the first $1.77 billion in aid for Hurricane Sandy recovery, with the money expected to start flowing by early summer to homeowners, businesses and others in need.

The biggest chunk of money, $648 million, will go to programs to rebuild homes and make them more storm-resistant, according to the city's plan. That amount also includes $9 million for rental subsidies for up to 24 months intended mostly for low-income renters and people at risk of homelessness.

The rest of the money approved by the federal Department of Housing and Urban Development will be spent in several ways: $360 million on city infrastructure, $294 million on investments to make the city more resilient to storms and $293 million on loans, grants and other programs for businesses.

Mayor Michael R. Bloomberg is scheduled to announce approval of the plan at a news conference on Friday at City Hall with the federal housing secretary, Shaun Donovan, and Senator Charles E. Schumer.

City officials say the aid is not enough to cover all the damage caused by the storm — another allocation of federal money is expected later this year — but will allow them to design programs to address the greatest need and leverage other financing. The aid is also expected to provide more relief to persistent issues caused by the storm, including evacuees still in hotels and mold in homes that were flooded.

"The most significant portion of the funding is for housing recovery programs," said Caswell F. Holloway, the city's deputy mayor for operations. "The biggest step forward in bringing neighborhoods back is to help people get in their homes."

Those applying for grants will be able to do so through the city's 311 help line and Web site, nyc.gov., starting this month for businesses and in June for homeowners and others seeking assistance, city officials said. For the housing programs, prospective recipients will be assigned a "recovery specialist" to assess their financial need and determine eligibility. Mr. Holloway said that process should be completed "within weeks."

The money comes in the form of Community Development Block Grants that give local governments flexibility in deciding how to use funds. Advocates for the homeless and some community groups have faulted the city for not reaching out effectively to low-income residents and for undercounting the affordable housing lost to the storm.

Officials with HUD said the city had submitted a comprehensive plan identifying needs down to the level of neighborhoods but added that adjustments could be made for future aid to correct any disparities.