Hazard Mitigation Grant Program (HMGP) Elevation Grant

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1 Hazard Mitigation Grant Program (HMGP) Elevation Grant FAQ 1. What is the Hazard Mitigation Grant Program (HMGP) Elevation Grant? The HMGP Elevation Grant is a reimbursement grant program. The goal of the program is to assist homeowners with the elevation of their primary residence single family homes after Superstorm Sandy. The grant will be dispersed to the homeowner after the Department of Community Affairs (DCA) approves the grant application and the elevation has been completed. Thus, no award monies will be dispersed prior to or while an applicant s home is being elevated. 2. Who is eligible for a HMGP Elevation Grant? To be eligible to receive HMGP Elevation Grant assistance, an applicant must meet the following eligibility factors: The residence must be located in one of the nine (9) most impacted Counties [Atlantic, Bergen, Cape May, Essex, Hudson, Middlesex, Monmouth, Ocean, and Union]. At the time of Superstorm Sandy the residence must have been owned and occupied by the applicant as the applicant s primary residence. The homeowner s residence must be located in the 100-year floodplain. The property must be the primary residence and a single-family structure. The applicant must not be a recipient of funding from the Department of Community Affairs RREM program. The property must not be targeted for acquisition under the State HMGP acquisition program. No elevation work has been started (repairs made to the home not related to elevating the premises are not a reason for disqualification). Note: An application can be made to both RREM and HMGP but funds may be accepted from one or the other, not both. 3. Why would I elevate my home? Elevation of residential structures to the design flood elevation plus one foot, which is the New Jersey standard, reduces the risk of damage to the property and its contents in the event of major flooding. It also may provide a significant reduction in flood insurance premiums compared to a structure that is not elevated. 4. Must I have applied to FEMA to qualify? No, the HMGP Elevation Grant does not require that an applicant has applied for FEMA assistance. 5. Is there an income cap or limitation? No. 6. Can I begin the elevation process now?

2 No, you must wait until you receive written Department of Community Affairs approval. Per FEMA, you may perform home repairs and recovery activities, but may not place a shovel in the ground or initiate any activity related to physically elevating your home or you will be disqualified from the HMGP Elevation Program. 7. How does the extent of damage my house received affect my HMGP Elevation Program eligibility? Applications will be priority ranked based on risk and damage. Risk is determined by the elevation required for the first floor to be 1 foot above the FEMA base flood elevation (or best available data for flood elevation). The extent of damage from Superstorm Sandy will also be used to prioritize applications. Two categories of damage will be used within risk-based elevation groups: a. Major damage and greater (> 1 feet water on the first floor or at least $8,000 of damages); b. Less than major damage or no damage 8. What proof do I need to provide that I owned my home and that it is my primary residence? The program will attempt to verify ownership first by doing a title search or using other public records. If we are unable to verify ownership, your HMGP Advisor will work with you to obtain the necessary documents. 9. I am planning to tear down and rebuild my home; can the HMGP Elevation Grant provide funds for the elevation portion of the project? No, reconstruction is not an eligible activity under HMGP. The RREM program will provide for reconstruction including elevations. This program provides reimbursement for home elevations of existing structures only. 10. I am thinking about selling my home, can I apply for a HMGP Elevation Grant? Yes, if you still own your home you can apply for the HMGP Elevation Grant, BUT you cannot sell or transfer title until the elevation is complete or you will be disqualified from the program. The Application Process 11. How do I apply for a HMGP Elevation Grant? Applying for a HMGP Elevation Grant is easy. You can apply: Online: visit renewjerseystronger.org. If you need help while filling out the online application our Call Center can answer your questions SANDYHM ( ). By phone: If you would prefer, you can call our Call Center and a representative will complete the online application for you.

3 In Person: Sandy Housing Assistance Centers are open in each of the nine (9) most impacted Counties [Atlantic, Bergen, Cape May, Essex, Hudson, Middlesex, Monmouth, Ocean, and Union]. You can go to the Center to make an application or get information about the program. Note: Please fill out only one HMGP application. How you apply does not affect your status or the likelihood that your application will be selected for award. 12. What is the deadline for application? The application opens July 22, 2013 and closes on September 15, There is no advantage to applying early as this is not a first-come, first-served program. All applications received on or before September 15 will be prioritized at one time. 13. Can I apply for more than one housing assistance program? Yes. You can and should apply for any recovery and mitigation program for which you may qualify. If, for example, a person has an application with RREM, has also applied to HMGP, and the HMGP Elevation Program offers funding first, then applicants will be notified and will need to decide to accept or reject the funding program offered to them at that time. Applicants should carefully consider which fund best meets their needs. 14. If I applied to RREM and did not receive an award, will my application automatically be transferred to the HMGP? No. Your RREM application will not be automatically referred or transferred to the HMGP Elevation Program. You must submit a separate, complete, and timely application for consideration for HMGP Elevation reimbursement. 15. How will applications be prioritized? See also question 7 above. Because the Hazard Mitigation Grant Program elevation program is designed to mitigate against future flooding events, applications will be prioritized primarily by elevation risk. Elevation risk is determined by how many feet a home needs to be elevated to meet the State design flood elevation (ABFE or best available data + 1 ft.) or as local codes require. The elevation risk groupings are the following: 1. Homes which need to be elevated more than or equal to 8 ft. 2. Homes which need to be elevated more than or equal to 5ft., but less than 8 ft. 3. Homes requiring elevation of less than 5ft. Within each elevation grouping, the following factors will be used to prioritize applications: Major damage greater than 1 foot of flood water on the first floor or damages equal to or greater than $8,000; and Less than major damage, including no damage. For example:

4 Priority Example 1 House needs to be elevated 12 feet with damage greater than $8,000 or 1 ft. of flood water. 2 House needs to be elevated 12 feet with less than $8,000 or 1 ft. of flood water. 3 House needs to be elevated 7 feet with damage greater than $8,000 or 1 ft. of flood water. 4 House needs to be elevated 7 feet with less than $8,000 or 1 ft. of flood water. 5 House needs to be elevated 4 feet with damage greater than $8,000 or 1 ft. of flood water. 6 House needs to be elevated 4 feet with less than $ 8,000 or 1 ft. of flood water. The HMGP Elevation Program will allocate funds to each of the nine designated counties for elevation projects. 16. What constitutes Major Damage and will that be a consideration in prioritizing homes for this program? Major Damage means damage of any type related to Superstorm Sandy (e.g. wind, flooding, etc.) sustained by a home causing greater than $8,000 worth of damage or greater than 1 ft. of flooding on the first floor. Homes with Major Damage or more will receive priority over homes which require the same height of elevation with less than Major Damage. 17. When will I know my award amount for the HMGP Program? Applicants will be contacted by or a letter on their status as the prioritization and selection process proceeds after the close of applications on September 15. If the number of applications received exceed the available funding then a randomization process will be used to select applicants to move forward in the review process. HMGP elevation awards are for up to $30,000. Award amounts will vary based on total elevation project cost less any duplication of benefits. 18. Do I need a letter from the Flood Plain Manager in order to elevate my house? Yes. You need an Elevation Certificate that you can get from your local Flood Plain Manager, surveyor, or engineering firm which states the current elevation of the home and the amount of feet you must elevate to meet the design flood elevation. However, this is not required in order to apply to this program. Successful applicants, those with highest priority rankings, will be required to submit an Elevation Certificate (and other documents) later in the process to continue through the award process. Successful applicants will be notified when these other documents are required. 19. What happens if my application data is incomplete? The application will be reviewed for eligibility and completeness. Applications that do not satisfy the eligibility and completeness requirement will not be approved nor funded.

5 Award Calculation 20. How is my award calculated? Program rules require that an owner does not receive funding that exceeds the cost of elevating their home. The duplication of benefits (DOB) analysis takes into consideration all of the funds the owner has received/will receive from government funds, private insurance money, Small Business Administration Loans, charitable foundations and any assistance from other sources that were for repair of the structure. Note that this applies only to assistance received for elevating your home, not other types of services or assistance you may have received (i.e. FEMA Individual Assistance for living expenses). To determine the amount of the HMGP grant, other sources of elevation funds will be subtracted from the actual cost paid by the homeowner to elevate the. For example: If the cost to elevate your home is $75,000 and you received an insurance settlement for $30,000, and an SBA loan for $30,000, the HMGP Grant would be $15,000 ($75,000 minus $60,000). Funds intended for the home repairs will not be considered a Duplication of Benefits. New Jersey Resettlement funds will not be considered a Duplication of Benefits. 21. What is Duplication of Benefit (DOB) and are funds intended for the repair of my house considered a Duplication of Benefits? Once you receive enough money to complete your project from program funds dedicated to such projects, no additional money can be granted. In other words, if your elevation costs $60,000 and you received $30,000 from Increased Cost of Compliance (ICC) and $30,000 from SBA Loans, you would have received the total amount needed to elevate, and any additional funds from HMGP would be a duplication of benefits already received. Therefore, by law, you would not qualify for additional HMGP funding. However, if your elevation cost $75,000 and you received $30,000 from ICC and $30,000 from SBA Loans, you would be potentially eligible for $15,000, the project cost not covered by the other programs. Only funds with the specific purpose of being used for elevation are considered a DOB for the HMGP elevation program. 22. What expenses are eligible for reimbursement? Only expenses incurred for elevation of the home. Examples of eligible elevation costs include: Engineering services for design, structural feasibility analysis, and cost estimate preparation; Surveying, soil sampling, completion of elevation certificate, deed recordation fees, legal and or permitting fees, construction management; Disconnection of all utilities; Physical elevation of the structure and subsequent lowering and attachment of the structure onto a new foundation; Reconnecting of utilities and extending lines and pipes as necessary; Debris disposal and erosion control; Cost for repair of lawns, landscaping, sidewalks, and driveways if damaged by elevation activities; Elevation of existing decks, porches, or stairs;

6 Construction of new stairs and railings to access the elevated living space per minimum code and local ordinance; Documented reasonable living expenses ( except for food and personal transportation) that are incurred during the period when the owner is displaced by elevation construction; Abatement of asbestos and lead-based paint; and Filling basements with compacted clean fill. 23. What is the maximum award per household and when is the HMGP awarded? The maximum award per household is $30,000. HMGP is a reimbursement program. Receipts need to be submitted for 100% project cost even though FEMA is only providing up to $30, Will the reimbursement cover all costs of elevating a home? If not who is responsible for the portion of my elevation not funded by the HMGP Elevation Program? It is unlikely that the HMGP grant will cover all costs associated with the elevation of a home. The homeowner is responsible for the entire cost of the elevation project, but can be reimbursed for eligible expenses up to $30, What kind of receipts do I need to keep for reimbursement? In order to effectively document that eligible work was both performed and paid for, HMGP requires verification of payment (paid invoices, receipts, cancelled checks documenting work, a bank statement that reflects the payment of an eligible expense, or contractor statement on company letterhead certifying that an eligible expense was paid for if no other documentation is available). 26. Is my award taxable? No, but each awardee is encouraged to consult a tax professional for information on how this award will affect your tax liability. Elevating My Home 27. How high do I have to elevate my home? You must elevate to the strictest elevation standard of the Federal, State and Local Government, usually referred to as the design flood elevation. The State mandates that you add one additional foot to the Advisory Base Flood Elevations (ABFEs) unless they have been replaced by the Preliminary Base Flood Elevations (BFEs). If no ABFE exists, the existing BFE would be used, plus one additional foot. Your municipality may also require additional elevation. If new Preliminary BFEs have been released for your community the Preliminary BFE plus one additional foot will be required. If a community added an additional elevation requirement, then you must elevate to the local government standard. You should check with your local Flood Plain Administrator for details. 28. Do I have to vacate the house during the elevation process? If yes, is relocation during this time a reimbursable expense?

7 If relocation is required then relocation is an eligible reimbursable expense. Relocation cost must be documented reasonable living expenses (except for food and personal transportation) that are incurred during the period that the homeowner is displaced by the elevation construction. 29. Am I responsible for finding a qualified builder and is there a list of approved contractors available to consider for my project? Homeowners are responsible for finding a builder. The Department of Community Affairs (DCA) is not affiliated with any contractor or contracting firm, nor does it endorse or recommend any contractor or contracting firm. 30. What types of permits and insurance do I need to elevate my home? Required permits and insurance are determined by local codes and ordinances. Applicants are encouraged to consult their local building code official. 31. What is a deed restriction and why must I have one regarding flood insurance? As a condition of reimbursement, the structure must be covered by flood insurance for the life of the structure. A deed restriction requiring flood insurance must be maintained for any structure that has received HMGP funding. This reduces the risk to the Federal Government from future flood losses on a property where the Federal Government has provided mitigation funding. If you accept an award under this program, pursuant to federal law, you must maintain flood insurance on the home and a deed restriction indicating this as a requirement for future homeowners for the life of the structure. 32. What if there is a death, incapacity, or divorce of property owners during the process? The HMGP Elevation Grant makes allowances for changes in home ownership due to deaths, incapacity, or divorce. renew Jersey Stronger Call Center SANDYHM ( ) Privacy and Security Copyright , Department of Community Affairs All rights Reserved