WASHINGTON —Two New Jersey members of the U.S. House want Gov. Chris Christie to respond to a government watchdog report that questioned how the state spent $43 million in Hurricane Sandy housing funds.
Reps. Frank Pallone Jr. (D-6th Dist.) and Bill Pascrell Jr. (D-9th Dist.) said Christie needs to account for the money spent on the housing programs and make sure that future funding is properly handed out. They plan to release a letter at a press conference in Moonachie on Friday.
New Jersey had awarded a three-year, $67.7-million contract to Hammerman and Gainer Inc. to distribute funds for three housing programs, but ended it after one year following complaints by homeowners about inept management, poor communication and long delays. The state wound up paying $43.5 million.
"We want answers for the folks who were left without homes," Pallone and Pascrell said in a joint statement. "We want answers because this federal funding was spent improperly. We want answers and we want action to ensure this doesn't happen again when the next storm hits New Jersey."
The HUD inspector general said the Christie administration did not properly account for $43.1 million. The report said the state did not ensure that the disbursements met a national objective, that the prices were fair and reasonable, the costs were necessary and there was proper documentation for labor and travel costs.
The inspector general said HUD should either require proper documentation or demand that the state repay the agency.
The New Jersey attorney general's office rejected the findings, saying there was proper documentation for the expenses, that the state Department of Community Affairs corrected some of the problems while the agreement was in place, and that the state properly followed its own rules in awarding the contract.
The two Democratic lawmakers earlier sought an investigation by the U.S. Department of Housing and Urban Development in 2014 after the state ended its agreement with Hammerman & Gainer.
"We fought too hard for these federal disaster recovery dollars to stand by while they are recklessly mismanaged," the lawmakers wrote at the time. "New Jerseyans who are still struggling to put their lives back together over a year after Hurricane Sandy deserve better."
Pascrell and Pallone have been critical of the state's response to Sandy. After New Jersey in January got only $15 million of the $326 million it requested in disaster relief under a program funded in the Hurricane Sandy aid package, Pallone said the state submitted "a lousy application" and Pascrell gave the administration "poor grades."
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