We understand that there are endless questions about the New Jersey Reconstruction, Rehabilitation, Elevation, and Mitigation (RREM) Program.
This is the federally-funded $600 Million program that provides up to $150,000 to eligible homeowners in the form of grants. The RREM program is intended to “fill the gap” between the cost of repairs and other funds the owner has received to repair the structure.
There have recently been a few very important changes in the RREM program for homeowners to be aware of. The changes ultimately benefit homeowners, as they provide more flexibility in choosing a contractor and in most cases will enable you to get back in to you home much more quickly than with the old system.
As of July, 2014, when you sign your DBA (Design Build Agreement) at your 5A meeting, you are committed to Path C and cannot change to Path B.
This is a very important note – until now you could sign the DBA and authorize the design scope (soil boring, surveying and engineering) but you were not committed to staying with Path C and could switch. That isn’t the case any longer. You have to decide at or prior to the 5A meeting (which is where the CM (construction manager) meets with your assigned contractor).
If you sign the DBA at your 5A meeting, you are stuck with Path C. Be really careful that you understand what is happening at your 5A meeting – if you are unsure, call us at (732) 475-0999 and we will talk you through it.
As always when unsure about anything with RREM or finding the right RREM contractor for you, ask for a delay and consult with someone you trust.
More details are in this recent article, but the bottom line is that NJ homeowners are no longer required to work with a state-appointed contractor. They now have the option to work with any contractor they choose, as long as that contractor is properly licensed in the state of New Jersey.