The state of New Jersey says a company it hired to oversee the rebuilding of homes damaged or destroyed by Superstorm Sandy is being phased out of its duties.

Dept. of Community Affairs Commissioner Richard Constable talks to the press and residents about the second round of federal Superstorm Sandy Recovery Funds. (Governor's Office/Tim Larsen)

The state government says it started informing homeowners this week that San Francisco-based URS Corp. would no longer handle their cases.

New Jersey Community Affairs Commissioner Richard Constable said Friday that the state hired three contractors to do the work last year but has since realized it needed only two.

He did not say why URS was the one being cut.

A spokesman for the company did not immediately return a call.

The decision was made public as storm victims have expressed growing frustration with the way the state has handled rebuilding after the October 2012 storm.

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