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New Jersey has so far distributed $416 million a or less than a quarter a of the more than $1.8 billion in federal Hurricane Sandy disaster relief aid. Here, the Ortley Beach section of Toms River is pictured after Sandy ravaged the community.

(Andrew Mills/The Star-Ledger)

Though the federal government allocated more than $1.8 billion in Hurricane Sandy disaster relief aid for New Jersey more than a year ago, less that a quarter has been distributed to cash-strapped residents struggling to rebuild, according to a new state report.

State officials, however, say they are making considerable progress with recovery programs, addressing concerns and making changes where needed to speed up the delivery of aid. But advocates claim a botched rollout of major housing recovery programs has taken its toll on distributing funding more quickly.

More than $1.3 billion of federal aid is "in the pipeline or out the door," according to the state’s most recent quarterly performance report to the Department of Housing and Urban Development. The federal agency allocated more than $1.8 billion to New Jersey in February 2013 and approved the state’s plan for spending the money that April.

More than $416 million of that funding had been distributed by March 31, according to the state’s report.

Adam Gordon, staff attorney for the Cherry Hill-based Fair Share Housing Center, acknowledged the overall challenges in distributing these funds.

But, he said, particularly for the state’s major housing recovery program, "there should be more in the hands of residents at this point."

New Jersey officials set aside $710 million to create the Reconstruction, Rehabilitation, Elevation and Mitigation grant. After homeowners complained for months about lost paperwork and a lack of communication in regards to the application process, the state earlier this year dismissed the contractor hired to manage that program, as well as other housing recovery initiatives.

More than $275 million has been earmarked through the rebuilding program for homeowners who have signed grant awards, state Department of Community Affairs Commissioner Richard Constable said while testifying in front of a legislative panel last week, but only roughly $50 million in reimbursement payments have actually reached residents.

While Christie and other top officials have blamed federal red tape for bogging down the distribution of aid, the report notes two changes the state made recently to improve the program: homeowners using their own contractors may now receive half of their overall award in advance and federally mandated environmental reviews have been moved up to begin earlier in the process.

Kevin Roberts, a spokesman for Gov. Chris Christie, pointed to comments HUD Secretary Shaun Donovan made during a television interview in January when he said that Sandy aid, in general, could be distributed more quickly, "but if you look at overall, this money is moving faster than in any prior major disaster."

"Still," Roberts said, "we have been working to improve the programs and get funding to families as quickly as possible."

According to the state’s quarterly report, almost 600 homeowners signed grant awards for the housing recovery program in March, nearly doubling the number of awards signed the previous month. Homeowners are eligible for up to $150,000 through the rebuilding grant.

While other programs have also faced challenges pushing money out the door, some have been able to reach residents more quickly.

A business grant program by the end of March had disbursed $12.5 million of the $100 million dedicated to the initiative. The program offers a maximum award of $50,000.

Another program that distributes $10,000 grants to homeowners for non-construction purposes has reached residents more quickly. By the end of March, checks had been sent to almost 18,100 of the more than 18,500 homeowners who were approved for the grant, according to the state’s report. State officials expect to disburse the remaining grants in this quarter.

More than $1.46 billion in additional federal aid is on its way to New Jersey. The federal government is now reviewing the state’s plan to spend that money.

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