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Fair NY Rising changes payment plan
NY Rising was launched in April 2013, promoted as a way to help homeowners fill the funding gaps left by the Federal Emergency Management Agency, the U.S. Small Business Administration and their insurance policies. The program, tasked with distributing $1.7 billion in federal Sandy aid money allocated to the state, began releasing grant awards that year, a reimbursement process that residents and local officials have often described as sluggish and complicated.
Homeowners were told that once they met the eligibility criteria, they would receive upfront payments of 10 percent of the total estimated cost of repairs, mitigation or elevation of their homes, followed by periodic interim payments as work went on.
Over time, the program changed the payout schedule to 50 percent upfront and the other half when the work was completed. Contractors often began the work, but refused to lay out additional money to continue the project. As a result, many homeowners were left with half-repaired or half-rebuilt houses, while lacking the necessary funds to complete the work.
Last week, NY Rising once again modified the program, to allow for an additional interim payment. It will now offer an initial payment of 50 percent of the total grant; an interim payment, on request, of 25 percent when substantial work has been done; and the remaining 25 percent when construction is complete.
“It was a significant breakthrough — it was one of my number one priorities when I got to Albany,” said Assemblyman Todd Kaminsky. “Every chance I got to lobby the governor’s administration about it, I did. And it’s not the end of our problem, but it’s a good step forward, and we have to keep taking those steps as best as we can. The original system did not provide homeowners with adequate assistance to rebuild, causing undue stress and financial hardship. Finally these homeowners will have some additional support that they have been calling for.”
