State agrees to pay $7.6 million to HGI

TRENTON, N.J. (AP) -- Gov. Chris Christie's administration has reached a deal to pay $7.6 million to a firm New Jersey contracted to help handle applications for its Superstorm Sandy housing recovery program.

A spokeswoman for the Department of Community Affairs said Friday the state reached an agreement on Thursday with Hammerman and Gainer Inc., also called HGI.

The state and HGI mutually ended their contract in January 2014 after agreeing to a three-year deal in 2013 that was capped at $67.7 million. The state has paid nearly $36 million.

HGI was seeking $21.8 million from the state.

Former DCA Commissioner Richard Constable had acknowledged in 2014 that the New Orleans-based company's performance was why the company no longer worked for the state.

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