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May 13, 2013

Loans Will Help Sandy-Devastated Local Governments
Application Deadline Is May 15

Dear Mayor:

The Division of Local Government Services (DLGS) in the Department of Community Affairs (DCA) today announced that the Federal Emergency Management Agency (FEMA) has awarded the first batch of more than $34 million in Community Disaster Loans (CDL) to Sandy-devastated local governments in New Jersey. The loans have a low interest rate and can be forgiven in certain circumstances. They will help 10 municipalities, one municipal utility authority, and one fire district to continue providing essential services to their residents while the communities are rebuilt. More loans are expected to be approved in the next several weeks.

On March 15, Governor Christie signed Executive Order No. 128, requiring local governmental units and school districts that may be eligible for Community Disaster Loan assistance to apply. The deadline to apply is May 15.

The Community Disaster Loan Program provides budget relief for local governments experiencing, or projected to experience, revenue losses greater than 5 percent of annual collections due to the impacts of Superstorm Sandy.

Revenue sources include taxable properties destroyed and damaged by the storm, taxable properties at risk of reduced valuation because of projected tax appeals, decreases in tax collection rates, and decreases in other revenues such as water / sewer collections, beach badges, parking meters, hotel taxes, municipal court fines and fees, and boat ramp fees.

The maximum loan amount is capped at $5 million or 25 percent of a local government's operating expenses, whichever is less. For municipalities and school districts experiencing distress that cannot be addressed due to caps on the Community Disaster Loan Program, additional funds can be applied through the Essential Services Grant program.

We commend DCA Commissioner Richard Constable, as well as DLGS Director Tom Neff and his team for leading municipalities to the CDL program and for helping them through the application process. And of course, we again thank Governor Christie and our entire Congressional Delegation for their commitment to securing for New Jersey all the resources we will need to recover and rebuild.

For more information on Community Disaster Loans, log on to

Very truly yours,

William G. Dressel, Jr.
Executive Director


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