A Guide to Hurricane Sandy Assistance

Offered by Patrick Parker Realty www.patrickparkerrealty.com

A Special Message from Patrick Parker Far too many New Jersey residents experienced the destruction caused by Hurricane Sandy and its aftermath. This Guide, prepared by Patrick Parker Realty, is intended as a reference to those affected by the Superstorm. The victims of Sandy face a wide variety of financial, housing and legal issues, and here we attempt to survey those issues that arise most often. Although this Guide cannot explore all issues completely or touch on every point that may arise, we have made considerable efforts to determine what issues are most relevant to the victims of the Hurricane and its aftermath. Please note that this information is current as of January 1, 2013 but by the time you read this material, the federal, state and county governments may have adopted additional measures to assist victims of Sandy.

We realize this Guide cannot answer all of the questions you undoubtedly have in the wake of the Superstorm. Rather, it is intended to identify the issues that many victims will need to consider, and to point you in the right direction. You may need to contact federal, state, city or county officials, local aid organizations, or even seek legal representation in order to obtain more specific information about your individual concerns.

A Guide to Hurricane Sandy Assistance

Table of Contents

FEMA Extends Deadlines . . . 3 Apply for FEMA Disaster Assistance About SBA Loans

Appealing a FEMA Ineligibility Letter . 4

How to Apply for an SBA Loan . . 5 How to Appeal an SBA Loan Denial

Requesting a Tax Assessment Reduction . 6

Find Housing . . . . . . . 7 Register for Automatic Rental Property Alerts

“Individual & Households” Grants . . . 8

Tax Deductions for Victims . . . . 9

Tax Reprieve for Victims . . . . 10

Regarding Rentals . . . . . . 11 Register for Automatic Rental Property Alerts

Additional Resources . . . . . 12

It’s Not Too Late to Apply for Assistance Those who suffered losses due to Hurricane Sandy in New Jersey now have until January 30, 2013 to register for disaster assistance through FEMA.

People with storm losses in all counties can register online at www.disasterassistance.gov via smartphone or tablet at m.fema.gov or by calling (800) 621-3362.

At the request of the state of New Jersey, FEMA extended the registration deadline beyond the original 60-day window due to the magnitude of the Hurricane Sandy disaster. Tips Before You Apply After You Apply Rumor Control Replace Vital Documents USPS Change of Address Online

FEMA Extends Deadlines

APPLY FOR FEMA ASSISTANCE

What is an SBA Loan? The U.S. Small Business Administration (SBA) is now offering disaster recovery loans to business owners, home owners and renters who suffered losses due to Hurricane Sandy. The deadline to apply is January 30.

SBA loans help businesses, homeowners and renters recover by offering a low-interest loan alternative, an opportunity to businesses to recoup losses as a result of power outages and other loss of capital opportunities regardless of whether the business suffered property damage, and finally, homeowners and renters can apply for loans to repair or replace personal property.

Interest rates for SBA loans range from 4.0% to 6.0%, depending on the availability of non-SBA credit. Interest rates for home recovery loans range from 1.688% to 3.375%, depending on the availability of non-SBA credit.

Each SBA loan program has its own eligibility criteria and application process. However, as you prepare to submit your paperwork, you will need to gather and prepare similar documentation. Learn more here.

For information about the disaster loan process email disastercustomerservice@sba.gov or call 800-659-2955.

Turning That “No” Into a “Yes” If you have received notice from FEMA that you are ineligible for disaster assistance following Hurricane Sandy you may be able to use additional documentation to turn that “no” into a “yes.”

“Every applicant has the right to appeal a decision,” said Federal Coordinating Officer Gregory W. Eaton. “In fact, applicants can appeal any FEMA decision. When you do so, you are asking us to review your case again, and we will gladly do that.”

Applicants who received a letter stating they are “ineligible” should read that document carefully. It will list some reasons the aid was denied and provide instructions on filing an appeal.

Some common reasons an applicant may be determined ineligible include:

• Insufficient storm-related damage. • Adequate insurance coverage. • Additional personal or insurance information needed

to complete the assistance evaluation process. • Confusion about Social Security numbers, addresses

or phone numbers.

Appealing a FEMA Ineligibility Letter

Applicants may appeal the decision if they find circumstances have changed from the time they registered. They may have discovered additional damage to their property, or that they need housing help after all. Renters may find upon returning that their residences are unlivable.

FEMA understands that circumstances after a disaster can be fluid and changeable, you have the chance to report those changes — changes that could make the difference in becoming eligible for disaster assistance.

Effective appeal letters should follow these procedures: In the first paragraph, list the applicant’s full legal name used on the aid application, along with Social Security number and the FEMA case number. Include a personal phone number as well as a back-up phone number where the applicant also can be reached, in addition to a correct mailing address.

Write an explanation of events that provides evidence to support the appeal. Summarize changes in circumstances or needs, additional damages to property discovered after the registration was filed or higher-than-planned costs for repairs, for example.

Include photocopies of receipts for materials and labor as well as up to three written bids for repair work if those costs exceed the award amount. Submitting repair estimates, receipts, statements or invoices helps applicants lodge effective appeals.

Also keep in mind: The appeal letter must be submitted within 60 days of the date on the denial letter — by mail, or by fax at 1-800-827-8112, or in person at a state/federal Disaster Recovery Center. Keep a copy of the appeal letter and supporting documentation for your records.

Information on how and where to file an appeal is included with denial letters and in the “Help After a Disaster” booklet that is included with registration packets.

Disaster Recover Centers One of the best sources of help with an appeal is your local Disaster Recover Center. A Disaster Recovery Center is a readily accessible facility or mobile office where applicants may go for information about FEMA or other disaster assistance programs, or for questions related to your case.

Search for a Disaster Recovery Center

First Step: Register with FEMA First, register with FEMA to obtain a FEMA Registration Number by calling 1-800-621-3362.

Call the SBA Customer Service Center to obtain a loan application: 1-800-659-2955; You can also email the SBA at disastercustimerservice@sba.gov.

You can apply online or in person at any FEMA Disaster Recovery Center and receive personal, one-on-one help from an SBA representative. To find a location, please contact SBA’s Customer Service Center at 1-800-659-2955 or email disastercustomerservice@sba.gov.

You will need the following information when you apply:

1. Contact information 2. Identity information (social security numbers / 3. FEMA registration number) 4. Deed or lease information, if available 5. Insurance information, if applicable: name, address,

and policy number 6. Financial information (income, creditors’ names,

payments, balances)

For more information, visit www.sba.gov/content/fact-sheet-homeowners-andrenters

How to Apply for an SBA Loan How to appeal an SBA Loan denial? Though criteria for SBA loans are less stringent that bank loans, denials may still be based on problems with credit history, or an inability to repay.

You have the right to appeal an unfavorable decision. Appeals go to the Office of Hearings and Appeals (OHA). Visit http://www.sba.gov/oha for more information.

1. File your appeal, which is called a “request for reconsideration” by email, fax, mail, or delivery.

2. Appeals must be submitted within six months.

If filing by email, send the appeal to ohafilings@sba.gov. Send any communication as an attached document. Note that some filings emailed to OHA have not been successfully transmitted due to the size or content of the email. The sender is responsible for ensuring transmission. Call 202-401-8200 to confirm receipt.

If filing by fax, OHA’s fax number is (202) 205-7059.

If filing by mail or delivery, send or drop off appeal to:

Docketing Clerk, Office of Hearings and Appeals Small Business Administration 409 Third Street SW, 8th Floor Washington DC 20416.

First, you need to find out the name of your local tax adjustor. A simple Google Search of the term ‘Tax Assessor Town Name’ should yield great results. This should also help you find where to address your letter, which is generally to your Township.

Second, compose a letter requesting a reassessment due to natural disaster citing New Jersey Statute that allows for these kinds of contingencies. View a sample template you can use to write to your Tax Assessor.

For Your Reference Matthew S. Clark, CTA Monmouth County Tax Administrator Phone: (732) 431-7404 | Fax: (732) 409-4890 mclark@co.monmouth.nj.us

Monmouth County Board of Taxation 1 East Main Street Freehold, NJ 07728

Are You Eligible for a Tax Reassessment? Taxes are based on the market value of your property, or some percentage of the value, less any state deductions or exemptions; the remaining amount is then multiplied by the local millage rate. A millage rate of 7.5, for example, means you pay $7.50 for every $1,000 of taxable value; if you had $100,000 in taxable value after all adjustments were made, you’d pay an annual $750 tax.

Since storm damage to a home can significantly drive down its value, not just due to the damage to that home, but also as a result of damage to approximate derelict properties and the community at large. For example, if a storm wrecks the roof of a neighboring home, another home in the community could have its value negatively impacted. Or if you have invested in a second home in one of the popular summer rental areas on the shore as a means of income or plans for future retirement, the demand for your area has plummeted.

So what do you do? It is worth submitting a letter to your local tax adjustor requesting a property tax adjustment as a result of major depreciation to the value of your property.

Requesting a Tax Assessment Reduction

VIEW A SAMPLE REASSESSMENT LETTER

Need Housing? Residents displaced by Hurricane Sandy are having a hard time finding a temporary place to live. Thousands of people are calling real estate offices, looking to rent apartments or homes.

Real estate agents say there are more people looking for rentals than units available. Agents are asking sellers to let displaced people live in their vacant homes.

About 960 rentals are on the market in Monmouth and Ocean County, according to the Monmouth County Association of Realtors, but the number is fluid and probably lower.

Patrick Parker Realty is here to Help Patrick Parker Realty has dedicated personnel on hand to take your calls if you have been displaced by Hurricane Sandy. In addition, with the launch of our new website, we want you to know about our property search feature that can email you rentals or homes that meet your specifications automatically once you register.

Jennifer Pricci, a Highlands resident displaced by Sandy, was recently placed in a rental unit similar to what she was already renting, in price and amenities.

The New Housing Shortage

“I spoke to many realtors after the storm hit. If it weren’t for Patrick Parker and the diligence of his team I do not think I would have found a new home so quickly. I really got the sense that his office dropped everything to take care of me. While juggling so much in the wake of the storm, Patrick Parker Realty helped make this transaction as smooth as possible taking care of the many peripheral details so that I didn’t have to.”

Register for Automatic Property Alerts Delivered to your Inbox:

1. Go to www.patrickparkerrealty.com and on the top right of the page next to PROPERTY ALERTS click “SIGN-UP” 2. Click on Advanced Search 3. Choose from the dropdown menu what kind of property you’re seeking such as “Single Family Residential” or

“Rentals” 4. You can refine your search by checking boxes in the “Select type…” area 5. Choose the City in which you wish to search

To choose multiple cities hold down “Ctrl” continuously as you make your selections. All cities you select will highlight. If you make a mistake you can simply unclick the city name but continue to hold the “Ctrl” key

6. Select the county. Hold down “Ctrl” and select Monmouth and Ocean unless you are considering moving outside the immediate area.

7. Enter your Low Price and Enter your High Price 8. Enter desired number of Bedrooms and Bathrooms 9. Choose how you’d like to Sort your results 10. Click “Next Step >” 11. Complete the registration form by entering your First and Last name, email, phone number, email format, and select

a password to log back into the system so you can save properties and return to them at a later date. 12. Click “Save my Search” 13. You will receive a notice that an email has been sent to the email address you registered for confirmation and

verification instructions. You will also then be brought to a page with your search results. Click “Save Search.”

If you need further assistance with the registration process Contact Patrick Parker Realty so we can help.

Tip: Disregard Zip Tip: Disregard Days Listed

Tip: For Renters, Disregard Min Sq Ft

When Insurance Doesn’t Cover It… The Individuals and Households Grants Program offers two forms of assistance for individuals and families who experienced property damage in the storm that is not covered by insurance.

What is “Housing Needs” Assistance? Temporary financial assistance may be available for those who rented or owned, in order to rent a place to live or a government provided housing unit when rental properties are not available. Generally, emergency rental assistance is available without a prior inspection of the property for two months, and may be extended based on a review of the application and inspection. The maximum duration of assistance is 20 months. Amount of assistance varies based on geographic location and size of the rental.

Financial assistance may be available to homeowners to repair damage to their primary residence caused by the disaster that is not covered by insurance. The goal is to make the home safe, sanitary and functional (e.g., payment for a downed tree on the property that does not affect the safety of the house would not be covered). If home repairs exceed your FEMA grant allocation, you can apply for an SBA loan.

Financial assistance may be available to homeowners to replace their home destroyed in the disaster that is not covered by insurance.

To qualify you must show that:

• You have losses in an area that has been declared a disaster by the President

• You filed for insurance benefits and the damage to your property is not covered or your insurance settlement is insufficient to cover your losses

• You have a valid Social Security Number • The home at issue is in the declared disaster area, and

is where you usually live and where you were living at the time of the disaster

• You are not able to live in your home now, you cannot get to your home due to the disaster, or your home requires repairs due to damage caused by the disaster

View the Applicant’s Guide to the Individuals & Households Program

Damages to a secondary or vacation home are not compensable. However, if you own a secondary home that is rented or occupied by a family member, you may be eligible for assistance from the U.S. Small Business Administration (SBA).

FEMA “Individual & Households” Grants Program How Do I Apply for These Forms of Relief? Apply online at www.disasterassistance.gov, or by calling 1-800-621-3362.

You will need the following information when you apply:

1. Social security number. If you do not have one, your household still may be eligible for assistance if there is a minor child in the household who is a U.S. citizen with a social security number.

2. Current and pre-disaster address and telephone number where you can be reached

3. Insurance information 4. Total household income 5. A description of your losses

What Happens After I Apply For Assistance? You will receive a FEMA application number. FEMA will also mail you (1) a copy of your application; and (2) a guide after you apply for relief which will provide you with additional information about the aid.

FEMA usually grants between one and three months of rental assistance at a time. If applying for continued assistance you must provide documentation showing that you are making efforts to obtain permanent housing at each recertification.

How to Get Catastrophe Tax Deduction The tax code allows you to deduct a catastrophic loss from your income. What’s a catastrophe? The IRS defines it as “damage, destruction, or loss of property resulting from an identifiable event that is sudden, unexpected, or unusual.”

If your house was in Sandy’s path, you probably qualify for a catastrophe deduction

To get a Catastrophe Tax Deduction you must itemize your deductions. The catastrophic loss deduction is limited to amounts above 10% of your adjusted gross income — the amount on line 37 of your 1040 form. Adjusted gross income is your total income, minus exemptions and certain adjustments, such as traditional IRA contributions and student loan interest.

Remember that this is not a tax credit, which reduces your taxes dollar-for-dollar. It’s a deduction, which reduces your taxable income, which, in turn, reduces your taxes. If you’re in the 25% tax bracket, for example, a $4,900 deduction would reduce your taxes by $1,225.

The deduction is more lucrative if you have no insurance — or if insurance refuses to pay.

Tax Deductions for Victims

It’s important to document any claims you make. If your home is wiped out, it’s likely many of your records are as well — in which case, you’ll have to reconstruct records of your home’s value. One place to start would be with comparable home values from a database such as Zillow.com.

If you’re dealing with a particularly large disaster claim, you might consider getting an appraisal of your home’s pre- and post-disaster value from a qualified professional. If the IRS challenges your loss, you’ll have convincing proof on your side.

More Information

Internal Revenue Service irs.gov Disaster resource guide for individuals and businesses Casualty, Disaster, and Theft Loss Workbook Business Casualty, Disaster, and Theft Loss Workbook

Insurance Information Institute iii.org Settling Insurance Claims after a Disaster Tax Deductions for Unreimbursed Losses

IRS Grants Tax Reprieve to Sandy Victims IRS regulations provide that whenever there is a federally declared disaster the IRS may postpone various tax filing deadlines for taxpayers in the affected area by as much as one year. This includes filing income tax returns and paying taxes due.

Such relief applies to:

• any individual whose principal residence is located in a covered disaster area

• any business entity or sole proprietor whose principal place of business is located in a covered disaster area

• taxpayers not in the covered disaster area but whose records necessary to meet an IRS deadline are in such area

• any relief worker assisting in a covered disaster area. • the spouse of an affected taxpayer for purposes of

filing a joint tax return • any individual visiting the covered disaster area who

was killed or injured as a result of the disaster

This relief is automatic — taxpayers need not take any action to qualify for it other than come within one of the above categories. The IRS will abate any interest, late-payment or late-filing penalty that would otherwise apply.

The IRS has already postponed one deadline for Sandy victims: It has granted taxpayers and tax preparers affected by Hurricane Sandy until Nov. 7 to file returns and accompanying payments normally due Oct. 31.

The IRS also announced that it is in the process of postponing many more tax deadlines for taxpayers affected by Hurricane Sandy or otherwise impacted by the storm that hit the Mid-Atlantic and Northeastern United States. It will post these announcements on its Tax Relief In Disaster Situations Web page.

Currently, federal disaster area declarations due to Hurricane Sandy have been made for multiple counties in Connecticut, Delaware, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, Virginia, West Virginia, as well as the District of Columbia. By visiting the FEMA website, you can easily find out if your county has been declared a federal disaster area.

If you live in the Sandy disaster area and receive a penalty notice from the IRS, you should call the telephone number on the notice to have the IRS abate any interest and any late-filing or late-payment penalties that would otherwise be due.

Tax Reprieve for Victims

Renters Rights: What You Need to Know

Regarding Rentals

If your rental was damaged by Hurricane Sandy and your landlord refuses to make repairs this is called “constructive eviction.” You can move out before the lease ends and not be responsible for rent for the time left on the lease. You are also entitled to have your security deposit returned to you.

Just some of the conditions that fall under “constructive eviction” include no heat, no water, a broken toilet, a broken elevator, flooding and excessive and constant disturbances. It is important to have proof of the bad conditions. You can get this proof by having a building inspection done and taking pictures before you move out.

To arrange an inspection:

• If you live in a building with three or more apartments, you may arrange an inspection by calling the State Inspection service at 609-633-6241, or visit http://www.nj.gov/dca/divisions/codes/offices/housinginspection.html

• If you live in a building with two or less apartments, call your municipality to arrange for a building inspection.

• It is important that you first give the landlord written notice of the defective conditions and a reasonable amount of time to make repairs. Send your notice by certified mail, return receipt requested, and keep a copy for your records

You also have the legal right to call in the building or health inspector, use your rent to make repairs, withhold your rent or take legal action.

What if you received an eviction notice? You do NOT have to leave. The only person who can legally evict you is a judge. In fact, a lockout or eviction is illegal if it is not done pursuant to a court order. A judge can order your eviction only after a hearing, and the landlord must show one of 18 possible bases for eviction under the Anti-Eviction Act.

Any landlord who illegally evicts a tenant has committed a disorderly persons offense. For detailed information about the eviction process, contact New Jersey Legal Services at 1-888-576-5529 or visit http://www.lsnjlaw.org/housing/Landlord-Tenant/Evictions/Pages/default.aspx.

If you are searching for a new rental you can register for Automatic Property Alerts on the Patrick Parker Realty website to get desired listings delivered directly to your inbox. Or call us at 732-455-5252 to speak with a dedicated Hurricane Sandy displacement specialist.

Additional Resources

More Tips and Tools Buying A New Home After Hurricane Sandy Managing Credit and Debt After Hurricane Sandy Hurricane Sandy Mortgage Relief Replacing Lost Income After Hurricane Sandy Consumer Protection & Fraud During Times of Disaster Renters Rights & Warrant of Habitability Automatic Property Alerts

Key Contacts

Federal Emergency Management Agency (FEMA) 1-800-621-FEMA www.DisasterAssistance.gov

Small Business Assistance/Disaster Loan Applications http://www.sba.gov/content/applying-disaster-loan

NJ 2-1-1 Hurricane Response and Recover www.nj211.org NJHelps is a free guide to help you to determine what programs and assistance for which you may be eligible.

Housing Assistance http://www.state.nj.us/dobi/njhope/alliance.html Automatic Property Alerts

American Red Cross 732-493-9100 NJDOE Hotline for Families Displaced 609-292-2070 Office of Consumer Protection at 1-800-242-5846 For Disability Assistance 1-877-222-3737 For Assistance with Pets 1-855-407-4787 Mental Health Hotline 1-800-985-5990 or 211 New Jersey Disaster Legal Services 1-888-541-1900 Additional Resources and Contacts

Disclaimer: Patrick Parker Realty makes available this Guide for general purposes only. It was compiled from numerous sources. Although we intend the information contained herein to be helpful, we cannot warrant that it is complete, particularly since circumstances may change after this Guide is disseminated. Also, the Guide is intended to be general in nature, and does not provide information applicable to any individual’s unique factual situation. It is thus important to note that this Guide does not constitute legal advice and should not be relied upon as legal advice. Acknowledgements: We acknowledge with gratitude the efforts of those who have contributed to preparing this resource and bringing it to fruition: Patrick Parker Realty Brokers, Agents and Partners, Inman News, NJAR, USA Today, The law firm of McCarter & English, LLP, AOL Real Estate PHANTOM POWER, FEMA, SBA, Google Images, Fannie Mae, Freddie Mac.

Jennifer Pricci Marketing PHANTOM POWER New Jersey

624 Main Street . Bradley Beach, NJ 07720 . Phone: 732.455.5252 . Fax: 732.455.5250

info@patrickparkerrealty.com . www.patrickparkerrealty.com