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NY Rising makes major change to 50-50 payout plan

Sandy victims could now get up to 75 percent in repair payments before work is complete

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Facing pressure from state and local officials, New York Rising announced a major policy change on March 19 to part of its reimbursement formula that officials say has stalled the rebuilding process for many Hurricane Sandy victims.

For nearly two years, homeowners in the program have criticized its 50-50 payout plan, with many complaining that it had forced them to deplete their retirement savings while they awaited funding.

The original payment structure provided 50 percent of the grant award at the start of construction, and 50 percent after completion. Under the new policy, eligible homeowners can receive up to 75 percent of their payout amount before the work is complete — 50 percent of the funding upfront; an interim payment of 25 percent upon request, after substantial work has been completed; and the final 25 percent after construction and a closeout process are finalized.

Barbara Brancaccio, a spokeswoman for the Governor’s Office of Storm Recovery, said that as many as 1,800 homeowners are eligible for interim payments under the new system, and will receive notices about how to apply via email this week.

“Recognizing financial challenges homeowners face repairing their homes, NY Rising has made a significant award payment change to its Repair and Reconstruction Program,” Brancaccio said. “This interim payment provides financial relief during the project instead of people, already financially strained, having to fund all work in progress and getting reimbursed at the very end.”

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 process that residents and elected officials have often described as sluggish and complicated.

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