The state's congressional delegation praised the city's decision to reimburse New Yorkers who paid for home repairs out of their own pockets after Hurricane Sandy.
The change was included in the city's updated plan, released this week, on how it will spend nearly $2 billion in federal aid.
Initially, the city was only going to make federal grants available to those who were unable to pay for the repairs themselves.
"That's a big change. That would have been awful," said Sen. Chuck Schumer. "The people who had to repair their homes would be down and out."
"We didn't want to see Nassau County and other areas of New York that were going to be doing state programs having benefits that the city wasn't getting," said Rep. Michael Grimm, whose district encompasses Staten Island and parts of Brooklyn.
Homeowners will have to be in compliance with the the New York City Building Code to qualify for the reimbursement.
The plan still needs to be approved by federal officials.