44 CFR Part 206 — Federal Disaster Assistance

PART 206—FEDERAL DISASTER ASSISTANCE Authority: Robert T. Stafford Disaster Relief and Emergency Assistance Act, 42 U.S.C. 5121 through 5207; Homeland Security Act of 2002, 6 U.S.C. 101 et seq.; Source: 54 FR 11615, Mar. 21, 1989, unless otherwise noted. Subpart A—General Source: 55 FR 2288, Jan. 23, 1990, unless otherwise noted. § 206.1 Purpose. (a) Purpose. et seq. (b) Prior regulations. [59 FR 53363, Oct. 24, 1994] § 206.2 Definitions. (a) General. (1) The Stafford Act: (2) Applicant: (3) [Reserved] (4) Concurrent, multiple major disasters: (5) Contractor: (6) Designated area: (7) Administrator: (8) Disaster Recovery Manager (DRM): (9) Emergency: (10) Federal agency: (11) Federal Coordinating Officer (FCO): (12) Governor: (13) Governor's Authorized Representative (GAR): (14) Hazard mitigation: (15) Individual assistance: (16) Local government: (i) A county, municipality, city, town, township, local public authority, school district, special district, intrastate district, council of governments (regardless of whether the council of governments is incorporated as a nonprofit corporation under State law), regional or interstate government entity, or agency or instrumentality of a local government; (ii) An Indian tribe or authorized tribal organization, or Alaska Native village or organization; and (iii) A rural community, unincorporated town or village, or other public entity, for which an application for assistance is made by a State or political subdivision of a State. (17) Major disaster: (18) Mission assignment: (19) Private nonprofit organization: (i) An effective ruling letter from the U.S. Internal Revenue Service granting tax exemption under section 501 (c), (d), or (e) of the Internal Revenue Code of 1954; or (ii) Satisfactory evidence from the State that the organization or entity is a nonprofit one organized or doing business under State law. (20) Public Assistance: (21) Regional Administrator: (22) State: (23) State Coordinating Officer (SCO): (24) State emergency plan: (25) Temporary housing: (26) United States: (27) Voluntary organization: (b) Additional definitions. [54 FR 11615, Mar. 21, 1989, as amended at 63 FR 17110, Apr. 8, 1998; 66 FR 57352, 57353, Nov. 14, 2001; 69 FR 24083, May 3, 2004; 74 FR 15346, Apr. 3, 2009] § 206.3 Policy. It is the policy of FEMA to provide an orderly and continuing means of assistance by the Federal Government to State and local governments in carrying out their responsibilities to alleviate the suffering and damage that result from major disasters and emergencies by: (a) Providing Federal assistance programs for public and private losses and needs sustained in disasters; (b) Encouraging the development of comprehensive disaster preparedness and assistance plans, programs, capabilities, and organizations by the States and local governments; (c) Achieving greater coordination and responsiveness of disaster preparedness and relief programs; (d) Encouraging individuals, States, and local governments to obtain insurance coverage and thereby reduce their dependence on governmental assistance; and (e) Encouraging hazard mitigation measures, such as development of land-use and construction regulations, floodplain management, protection of wetlands, and environmental planning, to reduce losses from disasters. § 206.4 State emergency plans. The State shall set forth in its emergency plan all responsibilities and actions specified in the Stafford Act and these regulations that are required of the State and its political subdivisions to prepare for and respond to major disasters and emergencies and to facilitate the delivery of Federal disaster assistance. Although not mandatory, prior to the adoption of the final plan, the State is encouraged to circulate the plan to local governments for review and comment. [55 FR 2288, Jan. 23, 1990, 55 FR 5458, Feb. 15, 1990] § 206.5 Assistance by other Federal agencies. (a) In any declared major disaster, the Administrator, Assistant Administrator for the Disaster Operations Directorate, or the Regional Administrator may direct any Federal agency to utilize its authorities and the resources granted to it under Federal law (including personnel, equipment, supplies, facilities, and managerial, technical, and advisory services) to support State and local assistance efforts. (b) In any declared emergency, the Administrator, Assistant Administrator for the Disaster Operations Directorate, or the Regional Administrator may direct any Federal agency to utilize its authorities and the resources granted to it under Federal law (including personnel, equipment, supplies, facilities, and managerial, technical, and advisory services) to support emergency efforts by State and local governments to save lives; protect property, public health and safety; and lessen or avert the threat of a catastrophe. (c) In any declared major disaster or emergency, the Administrator, Assistant Administrator for the Disaster Operations Directorate, or the Regional Administrator may direct any Federal agency to provide emergency assistance necessary to save lives and to protect property, public health, and safety by: (1) Utilizing, lending, or donating to State and local governments Federal equipment, supplies, facilities, personnel, and other resources, other than the extension of credit, for use or distribution by such governments in accordance with the purposes of this Act; (2) Distributing medicine, food, and other consumable supplies; or (3) Performing work or services to provide emergency assistance authorized in the Stafford Act. (d) Disaster assistance by other Federal agencies is subject to the coordination of the FCO. Federal agencies shall provide any reports or information about disaster assistance rendered under the provisions of these regulations or authorities independent of the Stafford Act, that the FCO or Regional Administrator considers necessary and requests from the agencies. (e) Assistance furnished by any Federal agency under paragraphs (a), (b), or (c) of this section is subject to the criteria provided by the Assistant Administrator for the Disaster Operations Directorate under these regulations. (f) Assistance under paragraphs (a), (b), or (c) of this section, when directed by the Administrator, Assistant Administrator for the Disaster Operations Directorate, or the Regional Administrator, does not apply to nor shall it affect the authority of any Federal agency to provide disaster assistance independent of the Stafford Act. (g) In carrying out the purposes of the Stafford Act, any Federal agency may accept and utilize, with the consent of the State or local government, the services, personnel, materials, and facilities of any State or local government, agency, office, or employee. Such utilization shall not make such services, materials, or facilities Federal in nature nor make the State or local government or agency an arm or agent of the Federal Government. (h) Any Federal agency charged with the administration of a Federal assistance program may, if so requested by the applicant State or local authorities, modify or waive, for a major disaster, such administrative conditions for assistance as would otherwise prevent the giving of assistance under such programs if the inability to meet such conditions is a result of the major disaster. § 206.6 Donation or loan of Federal equipment and supplies. (a) In any major disaster or emergency, the Administrator, Assistant Administrator for the Disaster Operations Directorate, or the Regional Administrator may direct Federal agencies to donate or loan their equipment and supplies to State and local governments for use and distribution by them for the purposes of the Stafford Act. (b) A donation or loan may include equipment and supplies determined under applicable laws and regulations to be surplus to the needs and responsibilities of the Federal Government. The State shall certify that the surplus property is usable and necessary for current disaster purposes in order to receive a donation or loan. Such a donation or loan is made in accordance with procedures prescribed by the General Services Administration. § 206.7 Implementation of assistance from other Federal agencies. All directives, known as mission assignments, to other Federal agencies shall be in writing, or shall be confirmed in writing if made orally, and shall identify the specific task to be performed and the requirements or criteria to be followed. If the Federal agency is to be reimbursed, the letter will also contain a dollar amount which is not to be exceeded in accomplishing the task without prior approval of the issuing official. § 206.8 Reimbursement of other Federal agencies. (a) Assistance furnished under § 206.5 (a) or (b) of this subpart may be provided with or without compensation as considered appropriate by the Administrator, Assistant Administrator for the Disaster Assistance Directorate, or the Regional Administrator or Regional Director. (b) The Administrator, Assistant Administrator for the Disaster Assistance Directorate, or the Regional Administrator or the Regional Director may not approve reimbursement of costs incurred while performing work pursuant to disaster assistance authorities independent of the Stafford Act. (c) Expenditures eligible for reimbursement. (1) Overtime, travel, and per diem of permanent Federal agency personnel. (2) Wages, travel, and per diem of temporary Federal agency personnel assigned solely to performance of services directed by the Administrator, Assistant Administrator for the Disaster Assistance Directorate, or the Regional Administrator or the Regional Director in the major disaster or emergency area designated by the Regional Director. (3) Travel and per diem of Federal military personnel assigned solely to the performance of services directed by the Administrator, Assistant Administrator for the Disaster Assistance Directorate, or the Regional Administrator or the Regional Director in the major disaster or emergency area designated by the Regional Director. (4) Cost of work, services, and materials procured under contract for the purposes of providing assistance directed by the Administrator, Assistant Administrator for the Disaster Assistance Directorate, or the Regional Administrator or the Regional Director. (5) Cost of materials, equipment, and supplies (including transportation, repair, and maintenance) from regular stocks used in providing directed assistance. (6) All costs incurred which are paid from trust, revolving, or other funds, and whose reimbursement is required by law. (7) Other costs submitted by an agency with written justification or otherwise agreed to in writing by the Administrator, Assistant Administrator for the Disaster Assistance Directorate, or the Regional Administrator or the Regional Director and the agency. (d) Procedures for reimbursement. (1) Federal agencies may submit requests for reimbursement of amounts greater than $1,000 at any time. Requests for lesser amounts may be submitted only quarterly. An agency shall submit a final accounting of expenditures after completion of the agency's work under each directive for assistance. The time limit and method for submission of reimbursement requests will be stipulated in the mission assignment letter. (2) An agency shall document its request for reimbursement with specific details on personnel services, travel, and all other expenses by object class as specified in OMB Circular A-12 and by any other subobject class used in the agency's accounting system. Where contracts constitute a significant portion of the billings, the agency shall provide a listing of individual contracts and their associated costs. (3) Reimbursement requests shall cite the specific mission assignment under which the work was performed, and the major disaster or emergency identification number. Requests for reimbursement of costs incurred under more than one mission assignment may not be combined for billing purposes. (4) Unless otherwise agreed, an agency shall direct all requests for reimbursement to the Regional Administrator of the region in which the costs were incurred. (5) A Federal agency requesting reimbursement shall retain all financial records, supporting documents, statistical records, and other records pertinent to the provision of services or use of resources by that agency. These materials shall be accessible to duly authorized representatives of FEMA and the U.S. Comptroller General, for the purpose of making audits, excerpts, and transcripts, for a period of 3 years starting from the date of submission of the final billing. § 206.9 Nonliability. The Federal Government shall not be liable for any claim based upon the exercise or performance of, or the failure to exercise or perform a discretionary function or duty on the part of a Federal agency or an employee of the Federal Government in carrying out the provisions of the Stafford Act. § 206.10 Use of local firms and individuals. In the expenditure of Federal funds for debris removal, distribution of supplies, reconstruction, and other major disaster or emergency assistance activities which may be carried out by contract or agreement with private organizations, firms, or individuals, preference shall be given, to the extent feasible and practicable, to those organizations, firms, and individuals residing or doing business primarily in the area affected by such major disaster or emergency. This shall not be considered to restrict the use of Department of Defense resources in the provision of major disaster assistance under the Stafford Act. § 206.11 Nondiscrimination in disaster assistance. (a) Federal financial assistance to the States or their political subdivisions is conditioned on full compliance with 44 CFR part 7, Nondiscrimination in Federally-Assisted Programs. (b) All personnel carrying out Federal major disaster or emergency assistance functions, including the distribution of supplies, the processing of the applications, and other relief and assistance activities, shall perform their work in an equitable and impartial manner, without discrimination on the grounds of race, color, religion, nationality, sex, age, or economic status. (c) As a condition of participation in the distribution of assistance or supplies under the Stafford Act, or of receiving assistance under the Stafford Act, government bodies and other organizations shall provide a written assurance of their intent to comply with regulations relating to nondiscrimination. (d) The agency shall make available to employees, applicants, participants, beneficiaries, and other interested parties such information regarding the provisions of this regulation and its applicability to the programs or activities conducted by the agency, and make such information available to them in such manner as the head of the agency finds necessary to apprise such persons of the protections against discrimination assured them by the Act and this regulation. § 206.12 Use and coordination of relief organizations. (a) In providing relief and assistance under the Stafford Act, the FCO or Regional Administrator may utilize, with their consent, the personnel and facilities of the American National Red Cross, the Salvation Army, the Mennonite Disaster Service, and other voluntary organizations in the distribution of medicine, food, supplies, or other items, and in the restoration, rehabilitation, or reconstruction of community services and essential facilities, whenever the FCO or Regional Administrator finds that such utilization is necessary. (b) The Administrator is authorized to enter into agreements with the American Red Cross, The Salvation Army, the Mennonite Disaster Service, and other voluntary organizations engaged in providing relief during and after a major disaster or emergency. Any agreement shall include provisions assuring that use of Federal facilities, supplies, and services will be in compliance with § 206.11, Nondiscrimination in Disaster Assistance, and § 206.191, Duplication of Benefits, of these regulations and such other regulations as the Administrator may issue. The FCO may coordinate the disaster relief activities of the voluntary organizations which agree to operate under his/her direction. (c) Nothing contained in this section shall be construed to limit or in any way affect the responsibilities of the American National Red Cross as stated in Public Law 58-4. § 206.13 Standards and reviews. (a) The Administrator shall establish program standards and assess the efficiency and effectiveness of programs administered under the Stafford Act by conducting annual reviews of the activities of Federal agencies and State and local governments involved in major disaster or emergency response efforts. (b) In carrying out this provision, the Administrator may direct Federal agencies to submit reports relating to their disaster assistance activities. The Administrator may request similar reports from the States relating to these activities on the part of State and local governments. Additionally, the Administrator may conduct independent investigations, studies, and evaluations as necessary to complete the reviews. [55 FR 2288, Jan. 23, 1990; 55 FR 5458, Feb. 15, 1990] § 206.14 Criminal and civil penalties. (a) Misuse of funds. (b) Civil enforcement. (c) Referral to Attorney General. (d) Civil penalty. [55 FR 2288, Jan. 23, 1990, as amended at 74 FR 15346, Apr. 3, 2009; 74 FR 58850, Nov. 16, 2009] § 206.15 Recovery of assistance. (a) Party liable. (b) Rendering of care. § 206.16 Audit and investigations. (a) Subject to the provisions of chapter 75 of title 31, United States Code, and 2 CFR parts 200 and 3002, relating to requirements for single audits, the Administrator, the Assistant Administrator for the Disaster Operations Directorate, or the Regional Administrator shall conduct audits and investigations as necessary to assure compliance with the Stafford Act, and in connection therewith may question such persons as may be necessary to carry out such audits and investigations. (b) For purposes of audits and investigations under this section, FEMA or State auditors, the Governor's Authorized Representative, the Administrator, the Regional Administrator, the Assistant Administrator for the Disaster Assistance Directorate, the DHS Inspector General, and the Comptroller General of the United States, or their duly authorized representatives, may inspect any books, documents, papers, and records of any person relating to any activity undertaken or funded under the Stafford Act. [55 FR 2288, Jan. 23, 1990, as amended at 74 FR 15346, Apr. 3, 2009; 79 FR 76085, Dec. 19, 2014] § 206.17 Effective date. These regulations are effective for all major disasters or emergencies declared on or after November 23, 1988. §§ 206.18-206.30 [Reserved] Subpart B—The Declaration Process Source: 55 FR 2292, Jan. 23, 1990, unless otherwise noted. § 206.31 Purpose. The purpose of this subpart is to describe the process leading to a Presidential declaration of a major disaster or an emergency and the actions triggered by such a declaration. § 206.32 Definitions. All definitions in the Stafford Act and in § 206.2 apply. In addition, the following definitions apply: (a) Appeal: (b) Commitment: (c) Disaster Application Center: (d) FEMA-State Agreement: (e) Incident: (f) Incident period: Federal Register. § 206.33 Preliminary damage assessment. The preliminary damage assessment (PDA) process is a mechanism used to determine the impact and magnitude of damage and the resulting unmet needs of individuals, businesses, the public sector, and the community as a whole. Information collected is used by the State as a basis for the Governor's request, and by FEMA to document the recommendation made to the President in response to the Governor's request. It is in the best interest of all parties to combine State and Federal personnel resources by performing a joint PDA prior to the initiation of a Governor's request, as follows. (a) Preassessment by the State. (b) Damage assessment teams. (c) Review of findings. (d) Exceptions. § 206.34 Request for utilization of Department of Defense (DOD) resources. (a) General. (b) Request process. (1) Information describing the types and amount of DOD emergency assistance being requested; (2) Confirmation that the Governor has taken appropriate action under State law and directed the execution of the State emergency plan; (3) A finding that the situation is of such severity and magnitude that effective response is beyond the capabilities of the State and affected local governments and that Federal assistance is necessary for the preservation of life and property; (4) A certification by the Governor that the State and local government will reimburse FEMA for the non-Federal share of the cost of such work; and (5) An agreement: (i) To provide all lands, easements and rights-of-way necessary to accomplish the approved work without cost to the United States; (ii) To hold and save the United States free from damages due to the requested work, and to indemnify the Federal government against any claims arising from such work; and (iii) To assist DOD in all support and local jurisdictional matters. (c) Processing the request. (d) Implementation of assistance. (e) Limits. (f) Federal share. (g) Project management. (h) Reimbursement of DOD. § 206.35 Requests for emergency declarations. (a) When an incident occurs or threatens to occur in a State, which would not qualify under the definition of a major disaster, the Governor of a State, or the Acting Governor in his/her absence, may request that the President declare an emergency. The Governor should submit the request to the President through the appropriate Regional Administrator to ensure prompt acknowledgment and processing. The request must be submitted within 5 days after the need for assistance under title V becomes apparent, but no longer than 30 days after the occurrence of the incident, in order to be considered. The period may be extended by the Assistant Administrator for the Disaster Assistance Directorate provided that a written request for such extension is made by the Governor, or Acting Governor, during the 30-day period immediately following the incident. The extension request must stipulate the reason for the delay. (b) The basis for the Governor's request must be the finding that the situation: (1) Is of such severity and magnitude that effective response is beyond the capability of the State and the affected local government(s); and (2) Requires supplementary Federal emergency assistance to save lives and to protect property, public health and safety, or to lessen or avert the threat of a disaster. (c) In addition to the above findings, the complete request shall include: (1) Confirmation that the Governor has taken appropriate action under State law and directed the execution of the State emergency plan; (2) Information describing the State and local efforts and resources which have been or will be used to alleviate the emergency; (3) Information describing other Federal agency efforts and resources which have been or will be used in responding to this incident; and (4) Identification of the type and extent of additional Federal aid required. (d) Modified declaration for Federal emergencies. (e) Other authorities. § 206.36 Requests for major disaster declarations. (a) When a catastrophe occurs in a State, the Governor of a State, or the Acting Governor in his/her absence, may request a major disaster declaration. The Governor should submit the request to the President through the appropriate Regional Administrator to ensure prompt acknowledgment and processing. The request must be submitted within 30 days of the occurrence of the incident in order to be considered. The 30-day period may be extended by the Assistant Administrator for the Disaster Assistance Directorate, provided that a written request for an extension is submitted by the Governor, or Acting Governor, during this 30-day period. The extension request will stipulate reasons for the delay. (b) The basis for the request shall be a finding that: (1) The situation is of such severity and magnitude that effective response is beyond the capabilities of the State and affected local governments; and (2) Federal assistance under the Act is necessary to supplement the efforts and available resources of the State, local governments, disaster relief organizations, and compensation by insurance for disaster-related losses. (c) In addition to the above findings, the complete request shall include: (1) Confirmation that the Governor has taken appropriate action under State law and directed the execution of the State emergency plan; (2) An estimate of the amount and severity of damages and losses stating the impact of the disaster on the public and private sector; (3) Information describing the nature and amount of State and local resources which have been or will be committed to alleviate the results of the disaster; (4) Preliminary estimates of the types and amount of supplementary Federal disaster assistance needed under the Stafford Act; and (5) Certification by the Governor that State and local government obligations and expenditures for the current disaster will comply with all applicable cost sharing requirements of the Stafford Act. (d) For those catastrophes of unusual severity and magnitude when field damage assessments are not necessary to determine the requirement for supplemental Federal assistance, the Governor or Acting Governor may send an abbreviated written request through the Regional Administrator for a declaration of a major disaster. This may be transmitted in the most expeditious manner available. In the event the FEMA Regional Office is severely impacted by the catastrophe, the request may be addressed to the Administrator of FEMA. The request must indicate a finding in accordance with § 206.36(b), and must include as a minimum the information requested by § 206.36 (c)(1), (c)(3), and (c)(5). Upon receipt of the request, FEMA shall expedite the processing of reports and recommendations to the President. Notification to the Governor of the Presidential declaration shall be in accordance with 44 CFR 206.39. The Assistant Administrator for the Disaster Assistance Directorateshall assure that documentation of the declaration is later assembled to comply fully with these regulations. § 206.37 Processing requests for declarations of a major disaster or emergency. (a) Acknowledgment. (b) Regional summary. (c) FEMA recommendation. (1) Major disaster recommendation. (2) Emergency recommendation. (d) Modified Federal emergency recommendation. § 206.38 Presidential determination. (a) The Governor's request for a major disaster declaration may result in either a Presidential declaration of a major disaster or an emergency, or denial of the Governor's request. (b) The Governor's request for an emergency declaration may result only in a Presidential declaration of an emergency, or denial of the Governor's request. [55 FR 2292, Jan. 23, 1990; 55 FR 5458, Feb. 15, 1990] § 206.39 Notification. (a) The Governor will be promptly notified by the Administrator or his/her designee of a declaration by the President that an emergency or a major disaster exists. FEMA also will notify other Federal agencies and other interested parties. (b) The Governor will be promptly notified by the Administrator or his/her designee of a determination that the Governor's request does not justify the use of the authorities of the Stafford Act. (c) Following a major disaster or emergency declaration, the Regional Administrator or the Assistant Administrator for the Disaster Assistance Directorate will promptly notify the Governor of the designations of assistance and areas eligible for such assistance. § 206.40 Designation of affected areas and eligible assistance. (a) Eligible assistance. (b) Areas eligible to receive assistance. Federal Register. (c) Requests for additional designations after a declaration. Federal Register. (d) Time limits to request. [55 FR 2292, Jan. 23, 1990, as amended at 74 FR 60213, Nov. 20, 2009] § 206.41 Appointment of disaster officials. (a) Federal Coordinating Officer. (b) Disaster Recovery Manager. (c) State Coordinating Officer. (d) Governor's Authorized Representative. § 206.42 Responsibilities of coordinating officers. (a) Following a declaration of a major disaster or an emergency, the FCO shall: (1) Make an initial appraisal of the types of assistance most urgently needed; (2) In coordination with the SCO, establish field offices and Disaster Application Centers as necessary to coordinate and monitor assistance programs, disseminate information, accept applications, and counsel individuals, families and businesses concerning available assistance; (3) Coordinate the administration of relief, including activities of State and local governments, activities of Federal agencies, and those of the American Red Cross, the Salvation Army, the Mennonite Disaster Service, and other voluntary relief organizations which agree to operate under the FCO's advice and direction; (4) Undertake appropriate action to make certain that all of the Federal agencies are carrying out their appropriate disaster assistance roles under their own legislative authorities and operational policies; and (5) Take other action, consistent with the provisions of the Stafford Act, as necessary to assist citizens and public officials in promptly obtaining assistance to which they are entitled. (b) The SCO coordinates State and local disaster assistance efforts with those of the Federal Government working closely with the FCO. The SCO is the principal point of contact regarding coordination of State and local disaster relief activities, and implementation of the State emergency plan. The functions, responsibilities, and authorities of the SCO are set forth in the State emergency plan. It is the responsibility of the SCO to ensure that all affected local jurisdictions are informed of the declaration, the types of assistance authorized, and the areas eligible to receive such assistance. § 206.43 Emergency support teams. The Federal Coordinating Officer may activate emergency support teams, composed of Federal program and support personnel, to be deployed into an area affected by a major disaster or emergency. These emergency support teams assist the FCO in carrying out his/her responsibilities under the Stafford Act and these regulations. Any Federal agency can be directed to detail personnel within the agency's administrative jurisdiction to temporary duty with the FCO. Each detail shall be without loss of seniority, pay, or other employee status. § 206.44 FEMA-State Agreements. (a) General. (b) Terms and conditions. (c) Provisions for modification. (d) In a modified declaration for a Federal emergency, a FEMA-State Agreement may or may not be required based on the type of assistance being provided. [55 FR 2292, Jan. 23, 1990, as amended at 67 FR 61460, Sept. 30, 2002] § 206.45 Loans of non-Federal share. (a) Conditions for making loans. (1) The State or other eligible disaster assistance applicant is unable to assume their financial responsibility under such cost sharing provisions: (i) As a result of concurrent, multiple major disasters in a jurisdiction, or (ii) After incurring extraordinary costs as a result of a particular disaster; (2) The damages caused by such disasters or disaster are so overwhelming and severe that it is not possible for the State or other eligible disaster assistance applicant to immediately assume their financial responsibility under the Act; and (3) The State and the other eligible disaster applicants are not delinquent in payment of any debts to FEMA incurred as a result of Presidentially declared major disasters or emergencies. (b) Repayment of loans. (1) The State shall repay the loan (the principal disbursed plus interest) in accordance with the repayment schedule approved by the Assistant Administrator for the Disaster Assistance Directorate together with the Chief Financial Officer. (2) If the State fails to make payments in accordance with the approved repayment schedule, FEMA will offset delinquent amounts against the current, prior, or any subsequent disasters, or monies due the State under other FEMA programs, in accordance with the established Claims Collection procedures. (c) Interest. § 206.46 Appeals. (a) Denial of declaration request. (b) Denial of types of assistance or areas. (c) Denial of advance of non-Federal share. (d) Extension of time to appeal. § 206.47 Cost-share adjustments. (a) We pay seventy-five percent (75%) of the eligible cost of permanent restorative work under section 406 of the Stafford Act and for emergency work under section 403 and section 407 of the Stafford Act, unless the Federal share is increased under this section. (b) We recommend an increase in the Federal cost share from seventy-five percent (75%) to not more than ninety percent (90%) of the eligible cost of permanent work under section 406 and of emergency work under section 403 and section 407 whenever a disaster is so extraordinary that actual Federal obligations under the Stafford Act, excluding FEMA administrative cost, meet or exceed a qualifying threshold of: (1) Beginning in 1999 and effective for disasters declared on or after May 21, 1999, $75 per capita of State population; (2) Effective for disasters declared after January 1, 2000, and through December 31, 2000, $85 per capita of State population; (3) Effective for disasters declared after January 1, 2001, $100 per capita of State population; and, (4) Effective for disasters declared after January 1, 2002 and for later years, $100 per capita of State population, adjusted annually for inflation using the Consumer Price Index for All Urban Consumers published annually by the Department of Labor. (c) When we determine whether to recommend a cost-share adjustment we consider the impact of major disaster declarations in the State during the preceding twelve-month period. (d) If warranted by the needs of the disaster, we recommend up to one hundred percent (100%) Federal funding for emergency work under section 403 and section 407, including direct Federal assistance, for a limited period in the initial days of the disaster irrespective of the per capita impact. [64 FR 19498, Apr. 21, 1999] § 206.48 Factors considered when evaluating a Governor's request for a major disaster declaration. When we review a Governor's request for major disaster assistance under the Stafford Act, these are the primary factors in making a recommendation to the President whether assistance is warranted. We consider other relevant information as well. (a) Public Assistance Program. (1) Estimated cost of the assistance. (2) Localized impacts. (3) Insurance coverage in force. (4) Hazard mitigation. (5) Recent multiple disasters. (6) Programs of other Federal assistance. (b) Factors for the Individual Assistance Program. (1) State fiscal capacity and resource availability. (i) Fiscal capacity (principal factor for individuals and households program). (A) Total taxable resources (TTR) of the State. (B) Gross domestic product (GDP) by State. (C) Per capita personal income by local area. (D) Other factors. (ii) Resource availability. (A) State, tribal, and local government; non-governmental organizations (NGO); and Private Sector Activity. (B) Cumulative effect of recent disasters. (2) Uninsured home and personal property losses (principal factor for individuals and households program). (i) The cause of damage. (ii) The jurisdictions impacted and concentration of damage. (iii) The number of homes impacted and degree of damage. (iv) The estimated cost of assistance. (v) The homeownership rate of impacted homes. (vi) The percentage of affected households with sufficient insurance coverage appropriate to the peril. (vii) Other relevant preliminary damage assessment data. (3) Disaster impacted population profile. (i) The percentage of the population for whom poverty status is determined. (ii) The percentage of the population already receiving government assistance such as Supplemental Security Income and Supplemental Nutrition Assistance Program benefits. (iii) The pre-disaster unemployment rate. (iv) The percentage of the population that is 65 years old and older. (v) The percentage of the population 18 years old and younger. (vi) The percentage of the population with a disability. (vii) The percentage of the population who speak a language other than English and speak English less than “very well.” (viii) Any unique considerations regarding American Indian and Alaskan Native Tribal populations raised in the State's request for a major disaster declaration that may not be reflected in the data points referenced in paragraphs (b)(3)(i) through (vii) of this section. (4) Impact to community infrastructure. (i) Life saving and life sustaining services. (ii) Essential community services. (iii) Transportation infrastructure and utilities. (5) Casualties. (6) Disaster related unemployment. [64 FR 47698, Sept. 1, 1999, as amended at 84 FR 10663, Mar. 21, 2019; 85 FR 2039, Jan. 14, 2020] §§ 206.49-206.60 [Reserved] Subpart C—Emergency Assistance Source: 55 FR 2296, Jan. 23, 1990, unless otherwise noted. § 206.61 Purpose. The purpose of this subpart is to identify the forms of assistance which may be made available under an emergency declaration. § 206.62 Available assistance. In any emergency declaration, the Regional Administrator or Administrator may provide assistance, as follows: (a) Direct any Federal agency, with or without reimbursement, to utilize its authorities and the resources granted to it under Federal law (including personnel, equipment, supplies, facilities, and managerial, technical and advisory services) in support of State and local emergency assistance efforts to save lives, protect property and public health and safety, and lessen or avert the threat of a catastrophe; (b) Coordinate all disaster relief assistance (including voluntary assistance) provided by Federal agencies, private organizations, and State and local governments; (c) Provide technical and advisory assistance to affected State and local governments for: (1) The performance of essential community services; (2) Issuance of warnings of risks or hazards; (3) Public health and safety information, including dissemination of such information; (4) Provision of health and safety measures; and (5) Management, control, and reduction of immediate threats to public health and safety; (d) Provide emergency assistance under the Stafford Act through Federal agencies; (e) Remove debris in accordance with the terms and conditions of section 407 of the Stafford Act; (f) Provide assistance in accordance with section 408 of the Stafford Act; and (g) Assist State and local governments in the distribution of medicine, food, and other consumable supplies, and emergency assistance. [55 FR 2296, Jan. 23, 1990, as amended at 67 FR 61460, Sept. 30, 2002] § 206.63 Provision of assistance. Assistance authorized by an emergency declaration is limited to immediate and short-term assistance, essential to save lives, to protect property and public health and safety, or to lessen or avert the threat of a catastrophe. § 206.64 Coordination of assistance. After an emergency declaration by the President, all Federal agencies, voluntary organizations, and State and local governments providing assistance shall operate under the coordination of the Federal Coordinating Officer. § 206.65 Cost sharing. The Federal share for assistance provided under this title shall not be less than 75 percent of the eligible costs. § 206.66 Limitation on expenditures. Total assistance provided in any given emergency declaration may not exceed $5,000,000, except when it is determined by the Administrator that: (a) Continued emergency assistance is immediately required; (b) There is a continuing and immediate risk to lives, property, public health and safety; and (c) Necessary assistance will not otherwise be provided on a timely basis. § 206.67 Requirement when limitation is exceeded. Whenever the limitation described in § 206.66 is exceeded, the Administrator must report to the Congress on the nature and extent of continuing emergency assistance requirements and shall propose additional legislation if necessary. §§ 206.68-206.100 [Reserved] Subpart D—Federal Assistance to Individuals and Households §§ 206.101-206.109 [Reserved] § 206.110 Federal assistance to individuals and households. (a) Purpose. (b) Maximum amount of assistance. (1) The maximum amount of financial assistance excludes rental assistance under § 206.117(b)(1)(i) and lodging expense reimbursement under § 206.117(b)(1)(i). (2) The maximum amount of financial assistance excludes expenses to repair or replace eligible damaged accessibility-related real property improvements and personal property for individuals with disabilities. (c) Multiple types of assistance. (d) Date of eligibility. (e) Period of assistance. (f) Assistance not counted as income. (g) Exemption from garnishment. (h) Duplication of benefits. (1) Payment of the applicable benefits are significantly delayed; (2) Applicable benefits are insufficient to cover the housing or other needs; or (3) Applicants cannot use their insurance because there is no housing on the private market. (i) Cost sharing. (2) Federal and State cost shares for “Other Needs” assistance under the Stafford Act, 42 U.S.C. 5174(e) and (f), are as follows: (i) The Federal share is 75 percent; and (ii) The non-Federal share is 25 percent and must be paid from funds made available by the State. If the State does not provide the non-Federal share to FEMA before FEMA begins to provide assistance to individuals and households under the Stafford Act, 42 U.S.C. 5174(e), FEMA will still process applications. The State will then be obliged to reimburse FEMA for the non-Federal cost share of such assistance on a monthly basis. If the State does not provide such reimbursement on a monthly basis, then FEMA will issue a billing notice to the State on a monthly basis for the duration of the program. FEMA will charge interest, penalties, and administrative costs on delinquent billing notices in accordance with the Debt Collection Improvement Act. Cost shared funds, interest, penalties and administrative costs owed to FEMA through delinquent billing notices may be offset from other FEMA disaster assistance programs ( i.e., (j) Application of the Privacy Act. (i) In response to a release signed by the applicant that specifies the purpose for the release, to whom the release is to be made, and that the applicant authorizes the release; (ii) In accordance with one of the published routine uses in our system of records; or (iii) As provided in paragraph (j)(2) of this section. (2) Under the Stafford Act, 42 U.S.C. 5174(f)(2), FEMA must share applicant information with States in order for the States to make available any additional State and local disaster assistance to individuals and households. (i) States receiving applicant information under this paragraph must protect such information in the same manner that the Privacy Act requires FEMA to protect it. (ii) States receiving such applicant information must not further disclose the information to other entities, and must not use it for purposes other than providing additional State or local disaster assistance to individuals and households. (k) Flood Disaster Protection Act requirement. financial assistance for acquisition or construction purposes See (2) Individuals or households that are located in a special flood hazard area may not receive Federal Assistance for National Flood Insurance Program (NFIP)—insurable real and/or personal property, damaged by a flood, unless the community in which the property is located is participating in the NFIP (See 44 CFR 59.1), or the exception in 42 U.S.C. 4105(d) applies. However, if the community in which the damaged property is located qualifies for and enters the NFIP during the six-month period following the declaration, the Governor's Authorized Representative may request a time extension for FEMA ( See (3) Flood insurance purchase requirement: (A) If the applicant is a homeowner, flood insurance coverage must be maintained at the address of the flood-damaged property for as long as there is a residential building (See 44 CFR 59.1) at the address. The flood insurance requirement is reassigned to any subsequent owner of the flood-damaged address. (B) If the applicant is a renter, flood insurance coverage must be maintained on the contents for as long as the renter resides at the flood-damaged rental unit. The restriction is lifted once the renter moves from the rental unit. (C) When financial assistance is used to purchase a dwelling, flood insurance coverage must be maintained on the dwelling for as long as the dwelling exists and is located in a designated Special Flood Hazard Area. The flood insurance requirement is reassigned to any subsequent owner of the dwelling. (ii) FEMA may not provide financial assistance for acquisition or construction purposes to individuals or households who fail to buy and maintain flood insurance required under paragraph (k)(3)(i) of this section or required by the Small Business Administration. (l) Environmental requirements. (m) Historic preservation. (n) Severability. [67 FR 61452, Sept. 30, 2002; 67 FR 62896, Oct. 9, 2002, as amended at 81 FR 56533, Aug. 22, 2016; 89 FR 4118, Jan. 22, 2024] § 206.111 Definitions. Adequate, alternate housing Alternative housing resources Applicant Assistance from other Dependent Destroyed Displaced applicant Effective date of assistance Eligible hazard mitigation measures Essential tools Fair market rent Financial ability Financial assistance Functioning Household Housing costs Inaccessible In-kind contributions Lodging expenses Manufactured housing sites (1) Commercial site, (2) Private site, (3) Group site, Necessary expense Occupant Owner-occupied (1) The legal owner with verifiable documentation; or (2) A person who does not hold formal title to the residence and pays no rent, but can produce verifiable documentation demonstrative of legal responsibility including tax payment receipts; receipts for major repairs, maintenance, or improvements of the residence; court documents, a letter from a public official, or, for mobile home or travel trailer owners residing in a commercial park, a letter from the mobile home park owner or manager; or (3) A person who has verifiable documentation of lifetime occupancy rights with formal title vested in another. Permanent housing plan Primary residence Reasonable commuting distance e.g., Recertification Repairs Safe Sanitary Serious need Significantly delayed State Uninhabitable We, our, us [67 FR 61452, Sept. 30, 2002; 67 FR 62896, Oct. 9, 2002, as amended at 89 FR 4119, Jan. 22, 2024] § 206.112 Registration period. (a) Initial period. (b) Extension of the registration period. (c) Reopening of the registration period. (d) Late registrations. [67 FR 61452, Sept. 30, 2002; 67 FR 62896, Oct. 9, 2002, as amended at 89 FR 4120, Jan. 22, 2024] § 206.113 Eligibility factors. (a) Conditions of eligibility. (1) When the individual or household has incurred a disaster-related necessary expense and serious need in the State in which the disaster has been declared, without regard to their residency in that State; (2) In a situation where the applicant has insurance, when the individual or household files a claim with their insurance provider for all potentially applicable types of insurance coverage and the claim is denied; (3) In a situation where the applicant has insurance, when the insured individual or household's insurance proceeds have been significantly delayed through no fault of his, her or their own, and the applicant has agreed to repay the assistance to FEMA or the State from insurance proceeds that he, she or they receive later; (4) In a situation where the applicant has insurance, but the applicant cannot use their insurance because housing is not available on the private market; (5) In a situation where the applicant has insurance, when the insured individual or household has accepted all assistance from other sources for which he, she, or they are eligible, including insurance, and that assistance and insurance is insufficient to cover the necessary expense and serious need; (6) When the applicant agrees to refund to FEMA or the State any portion of the assistance that the applicant receives or is eligible to receive as assistance from another source; (7) With respect to housing assistance, if the primary residence has been destroyed, is uninhabitable, or is inaccessible; (8) With respect to housing assistance, if a renter's primary residence is no longer available as a result of the disaster; and (9) With respect to home repair for accessibility-related items, if an applicant meets the following conditions: (i) The applicant is either an individual with a disability as defined in 42 U.S.C. 5122 whose disability existed prior to the disaster and whose primary residence was damaged by the disaster, or an individual with a disability as defined in 42 U.S.C. 5122 whose disability was caused by the disaster and whose primary residence was damaged by the disaster; (ii) The real property component is necessary to meet the accessibility-related need of the household; and (iii) The real property component is not covered by insurance or any other source. (b) Conditions of ineligibility. (1) For housing or displacement assistance, to individuals or households who are displaced from other than their pre-disaster primary residence; (2) For temporary housing or displacement assistance, to individuals or households who have adequate rent-free housing accommodations; (3) For temporary housing or displacement assistance, to individuals or households who own a secondary or vacation residence within reasonable commuting distance to the disaster area, or who own available rental property that meets their temporary housing needs; (4) For temporary housing or displacement assistance to individuals or households who evacuated the residence in response to official warnings solely as a precautionary measure and are able to return to and safely occupy the residence immediately after the incident; (5) For housing assistance, for improvements or additions to the pre-disaster condition of property, except for the following: (i) Improvements or additions required to make repairs that comply with local and State ordinances; (ii) Eligible hazard mitigation measures; or (iii) Accessibility-related items for individuals with disabilities, consistent with paragraph (a)(9) of this section; (6) To individuals or households who have adequate insurance coverage and where there is no indication that insurance proceeds will be significantly delayed, or who have refused assistance from insurance providers; (7) To individuals or households whose damaged primary residence is located in a designated special flood hazard area, and in a community that is not participating in the National Flood Insurance Program, except that financial assistance may be provided to rent alternate housing and for medical, dental, funeral expenses and uninsurable items to such individuals or households. However, if the community in which the damaged property is located qualifies for and enters the NFIP during the six-month period following the declaration then the individual or household may be eligible; (8) To individuals or households who did not fulfill the condition to purchase and maintain flood insurance as a requirement of receiving previous Federal disaster assistance; (9) For business losses, including farm businesses; or (10) For any items not otherwise authorized by §§ 206.117 and 206.119. [67 FR 61452, Sept. 30, 2002; 67 FR 62896, Oct. 9, 2002, as amended at 89 FR 4120, Jan. 22, 2024] § 206.114 Criteria for continued or additional assistance. (a) General. (b) Rental assistance. (1) FEMA may periodically recertify all displaced applicants who received initial rental assistance and request continued rental assistance. All displaced applicants requesting continued rental assistance must take the following actions at certain points throughout the recertification process: (i) Submit rent receipts to show that they have exhausted or will exhaust previously provided funds; (ii) Provide documentation demonstrating they lack the financial ability to pay their post-disaster housing costs and have a continued need for rental assistance; (iii) Establish a realistic permanent housing plan; and (iv) Provide documentation showing that they are making efforts to obtain permanent housing. (2) FEMA expects that pre-disaster renters will use their initial rental assistance to obtain permanent housing. However, FEMA may provide continued rental assistance to pre-disaster renters with a continuing disaster-related housing need. (c) Direct housing assistance. (1) Establish a realistic permanent housing plan; and (2) Provide documentation showing that they are making efforts to obtain permanent housing throughout the recertification process. (d) Other assistance. (1) If FEMA requires more information to process an applicant's initial request for assistance, it may request additional information. (2) After the initial award of assistance, applicants requesting additional assistance for repairs, housing replacement, lodging expense reimbursement, personal property, transportation, child care, medical, dental, funeral, moving and storage, or other necessary expenses and serious needs may submit an appeal as outlined in § 206.115 and will be required to submit information and/or verifiable documentation established via guidance identifying the additional need. [89 FR 4120, Jan. 22, 2024] § 206.115 Appeals. (a) Under the provisions of the Stafford Act, 42 U.S.C. 5189a, applicants for assistance under this subpart may appeal any determination of eligibility for assistance made under this subpart. Applicants must file their appeal within 60 days after the date that we notify the applicant of the award or denial of assistance. Applicants may appeal the following: (1) Eligibility for assistance, including recoupment; (2) Amount or type of assistance; (3) Cancellation of an application; (4) The rejection of a late application; (5) The denial of continued assistance under § 206.114, Criteria for continued assistance; (6) FEMA's intent to collect rent from occupants of a housing unit that FEMA provides; (7) Termination of direct housing assistance; (8) Denial of a request to purchase a FEMA-provided housing unit at the termination of eligibility; (9) The sales price of a FEMA-provided housing unit they want to purchase; or (10) Any other eligibility-related decision. (b) Appeals must include a written explanation or verifiable documentation for the appeal and meet the requirements of § 206.117, as applicable. See §§ 206.117(b)(2)(vi), 206.117(b)(3)(iv), and 206.117(b)(4)(iii). If someone other than the applicant files the appeal, then the applicant must also submit a signed statement giving that person authority to represent them. If a written explanation is submitted, it must be signed by the applicant or a person the applicant designates to represent them. (c) Applicants must appeal to FEMA for decisions made under this subpart, unless FEMA has made a grant to the State to provide assistance to individuals and households under § 206.120(a), State administration of other needs assistance; then the applicant must appeal to the State. (d) An applicant may ask for a copy of information in his or her file by writing to FEMA or the State as appropriate. If someone other than the applicant is submitting the request, then the applicant must also submit a signed statement giving that person authority to represent them. (e) FEMA or the appropriate State official will review the original decision after receiving the appeal. FEMA or the State, as appropriate, will give the appellant a written notice of the disposition of the appeal and a reason for the determination within 90 days of receiving the appeal. The decision of the FEMA or State appellate authority is final. [67 FR 61452, Sept. 30, 2002; 67 FR 62896, Oct. 9, 2002, as amended at 89 FR 4121, Jan. 22, 2024] § 206.116 Recovery of funds. (a) The applicant must agree to repay to FEMA (when funds are provided by FEMA) and/or the State (when funds are provided by the State) from insurance proceeds or recoveries from any other source an amount equivalent to the value of the assistance provided. In no event must the amount repaid to FEMA and/or the State exceed the amount that the applicant recovers from insurance or any other source. (b) An applicant must return funds to FEMA and/or the State (when funds are provided by the State) when FEMA and/or the State determines that the assistance was provided erroneously, that the applicant spent the funds inappropriately, or that the applicant obtained the assistance through fraudulent means. [67 FR 61452, Sept. 30, 2002; 67 FR 62896, Oct. 9, 2002] § 206.117 Housing assistance. (a) Definitions. “ Multifamily Rental Housing “ Real Property Component” or “Component” “ Semi-Permanent Housing (b) Types of housing assistance Temporary housing assistance Rental assistance. (A) FEMA will include all members of a pre-disaster household in a single registration and will provide assistance for one temporary housing residence, unless FEMA determines that the size or nature of the household requires that we provide assistance for more than one residence. (B) FEMA will base the amount of assistance on the current fair market rent for existing rental units. FEMA will further base the applicable rate on the location of the rental unit and the number of bedrooms the household requires, as determined by FEMA. (C) Rental assistance may include the payment of the cost of utilities, excluding telephone, cable, television, and internet service. (D) Rental assistance may include the payment of the cost of security deposits, not to exceed an amount equal to the fair market rent for one month, as determined under paragraph (b)(1)(i)(B) of this section. (E) Applicants that receive displacement assistance under § 206.119(b)(2) must request rental assistance if their disaster-caused temporary housing needs continue once displacement assistance is exhausted. (ii) Direct assistance. (B) FEMA will include all members of a pre-disaster household in a single application and will provide assistance for one temporary housing unit, unless FEMA determines that the size or nature of the household requires that we provide assistance for more than one temporary housing unit. (C) Any site upon which a FEMA-provided temporary housing unit is placed must comply with applicable State and local codes and ordinances, as well as 44 CFR part 9, Floodplain Management and Protection of Wetlands, and all other applicable environmental and historic preservation laws, regulations, Executive orders, and agency policy. (D) All utility costs and utility security deposits are the responsibility of the occupant except where the utility does not meter utility services separately and utility services are a part of the rental charge. (E) FEMA-provided or funded temporary housing units may be placed in the following locations: ( 1 ( 2 ( 3 ( 4 (F) If FEMA determines it would be a cost-effective alternative to other temporary housing options, FEMA may enter into lease agreements with owners of multifamily rental housing properties to house displaced applicants eligible for assistance under this subpart. ( 1 ( 2 (G) After the end of the 18-month period of assistance, FEMA may begin to charge up to the fair market rent for each temporary housing unit provided. We will base the rent charged on the number of bedrooms occupied and needed by the household. When establishing the amount of rent, FEMA will take into account the financial ability of the household. (H) We may terminate direct assistance for reasons that include, but are not limited to, the following: ( 1 ( 2 ( 3 ( 4 ( 5 (I) FEMA will provide a 15 day written notice when initiating the termination of direct assistance that we provide under our lease agreements. This notice will specify the reasons for termination of assistance and occupancy, the date of termination, the procedure for appealing the determination, and the occupant's liability for such additional charges as FEMA deems appropriate after the termination date, including fair market rent for the unit. (J) Duplication of benefits may occur when an applicant has additional living expense insurance benefits to cover the cost of renting alternate housing. In these instances, FEMA may provide a temporary housing unit if adequate alternate housing is not available, or if doing so is in the best interest of the household and the government. We will establish fair market rent, not to exceed insurance benefits available. (2) Repairs. (A) The eligibility criteria in § 206.113 are met; (B) FEMA determines the dwelling was damaged by the disaster; and, (C) The damage is not covered by insurance. (ii) FEMA may provide financial assistance for the repair of the disaster damaged dwelling to a safe and sanitary living or functioning condition including: (A) Structural components of the residence. This includes real property components, such as the foundation, exterior walls, and roof. (B) Windows and doors. (C) The Heating, Ventilation and Air Conditioning system. (D) Utility systems. This includes electrical, gas, water and sewage systems. (E) Interior components. This includes, but is not limited to, the structure's floors, walls, ceilings, and cabinetry. (F) The structure's access and egress, including privately owned access roads and privately owned bridges. (G) Blocking, leveling, and anchoring of a mobile home, and reconnecting or resetting mobile home sewer, water, electrical and fuel lines and tanks. (H) Eligible hazard mitigation measures. (iii) FEMA financial assistance for the repair of disaster damage will be limited to repairs of a quality necessary for a safe and sanitary living or functioning condition. In some instances, when the extent of the damage is unclear, FEMA may provide assistance for the average cost of a licensed technician's professional assessment. FEMA may provide for the replacement of a component if repair is not feasible. (iv) Eligible individuals or households may receive up to the maximum amount of assistance (See § 206.110(b)) to repair damage to their primary residence irrespective of other financial resources, except insurance proceeds. (v) The individual or household is responsible for obtaining all local permits or inspections that applicable State or local building codes may require. (vi) If the applicant disputes a determination made by FEMA regarding eligibility for repair assistance, the applicant may appeal that determination pursuant to the procedures in § 206.115. In addition to the requirements in § 206.115, the applicant must provide proof that the component meets the requirements of paragraph (b)(2)(i) of this section. If the applicant disputes the amount of repair assistance awarded, the applicant must also provide justification for the amount sought. (3) Housing replacement. (A) The eligibility criteria in § 206.113 are met; (B) The residence was destroyed by the disaster; and (C) The damage to the residence is not covered by insurance. (ii) If replacement assistance is granted, the applicant may either use the maximum amount of assistance (See § 206.110(b)) to replace the dwelling in its entirety, or may use the assistance toward the cost of acquiring a new permanent residence. (iii) Housing replacement assistance will be based on the average replacement cost established by FEMA for the type of residence destroyed, or the statutory maximum (See § 206.110(b)), whichever is less. (iv) If the applicant disputes a determination made by FEMA regarding eligibility for replacement assistance, the applicant may appeal that determination pursuant to the procedures in § 206.115. In addition to the requirements in § 206.115, the applicant must provide proof that repair is not feasible, or will not ensure the safety or health of the occupant. If the applicant disputes the amount of replacement assistance awarded, the applicant must also provide justification for the amount sought. (4) Permanent and semi-permanent housing construction. (A) The eligibility criteria in § 206.113 are met; (B) The residence was damaged by the event; (C) The damage to the residence is not covered by insurance; (D) The residence was an owner-occupied primary residence; and (E) The residence is in a location where alternative housing resources are not available and the types of financial or direct temporary housing assistance described in paragraphs (b)(1), (2), and (3) of this section are unavailable, infeasible, or not cost-effective. (ii) Permanent and semi-permanent housing construction, in general, must be consistent with current minimal local building codes and standards where they exist, or minimal acceptable construction industry standards in the area, including reasonable hazard mitigation measures, and Federal environmental laws and regulations. Dwellings will be of average quality, size and capacity, taking into consideration the needs of the occupant. (iii) If the applicant disputes a determination made by FEMA regarding eligibility for construction assistance, the applicant may appeal that determination pursuant to the procedures in § 206.115. In addition to the requirements in § 206.115, the applicant must provide proof that the property is in a location where alternative housing resources are not available. The applicant must also provide proof that the types of financial or direct temporary housing assistance described in paragraph (b)(1) of this section are unavailable, infeasible, or not cost effective. If the applicant disputes the amount of construction assistance awarded, the applicant must also provide justification for the amount sought. [67 FR 61452, Sept. 30, 2002; 67 FR 62896, Oct. 9, 2002, as amended at 78 FR 66856, Nov. 7, 2013; 81 FR 56533, Aug. 22, 2016; 89 FR 4121, Jan. 22, 2024] § 206.118 Disposal of housing units. (a) FEMA may sell temporary housing units purchased under § 206.117(b)(1)(ii), Temporary housing, direct assistance, as follows: (1) Sale to an occupant. (ii) FEMA may approve adjustments to the sales price when selling a temporary housing unit to the occupant if the occupant is unable to pay the fair market value of the temporary housing unit and when doing so is in the best interest of the occupant and FEMA. (iii) FEMA may sell a temporary housing unit to the occupant only on the condition that the purchaser agrees to obtain and maintain hazard insurance, as well as flood insurance on the temporary housing unit if it is or will be in a designated Special Flood Hazard Area. (2) Other methods of disposal. (A) Comply with the nondiscrimination provisions of the Stafford Act, 42 U.S.C. 5151; and (B) Obtain and maintain hazard insurance on the temporary housing unit, as well as flood insurance if the housing unit is or will be in a designated Special Flood Hazard Area. (ii) FEMA may also sell temporary housing units at a fair market value to any other person. (b) A temporary housing unit will be sold “as is, where is”, except for repairs FEMA deems necessary to protect health or safety, which are to be completed before the sale. There will be no implied warranties. In addition, FEMA will inform the purchaser that they may have to bring the installation of the temporary housing unit up to codes and standards that are applicable at the proposed site. [89 FR 4123, Jan. 22, 2024] § 206.119 Financial assistance to address other needs. (a) Purpose. (b) Types of assistance. Serious needs. (2) Displacement. (3) Medical and dental. (i) Medical service costs; (ii) Dental service costs; (iii) Repair or replacement of medical or dental equipment; (iv) Loss or injury of a service animal; and (v) Costs for prescription medicines related to eligible medical or dental services, or which need to be replaced due to the disaster. (4) Child care. (i) Standard child care service fees, including personal assistance services that support activities of daily living for children with disabilities; and (ii) Registration and health inventory fees for applicants who require a new child care provider. (5) Funeral. (i) Funeral services; (ii) Burial or cremation; and (iii) Other related funeral expenses. (6) Personal property. (i) Clothing; (ii) Household items, furnishings or appliances; (iii) Computing devices; (iv) Essential tools, specialized or protective clothing, computing devices, and equipment required for employment; (v) Computing devices, uniforms, schoolbooks and supplies required for educational purposes; and (vi) Cleaning or sanitizing any eligible personal property item. (7) Transportation. (i) Repairing or replacing vehicles; (ii) Public transportation; and (iii) Other transportation related costs or services. (8) Moving and storage. (i) Moving and storing personal property to avoid additional disaster damage; (ii) Storage of personal property while disaster-related repairs are being made to the primary residence; and (iii) Return of the personal property to the individual or household's primary residence. (9) Group Flood Insurance purchase. (i) The premium for the GFIP is a necessary expense within the meaning of this section. FEMA or the State must withhold this portion of the Other Needs award and provide it to the NFIP on behalf of individuals and households who are eligible for coverage. The coverage must be equivalent to the maximum assistance amount established under the Stafford Act, 42 U.S.C. 5174. (ii) FEMA or the State IHP staff must provide the NFIP with records of individuals who received assistance for flood-insurable losses within a SFHA and are to be insured through the GFIP. Records of applicants to be insured must be accompanied by payments to cover the premium amounts for each applicant for the 3-year policy term. The NFIP will then issue a Certificate of Flood Insurance to each applicant. Flood insurance coverage becomes effective on the 30th day following the receipt of records of GFIP insureds and their premium payments from the State or FEMA, and such coverage terminates 36 months from the inception date of the GFIP, which is 60 days from the date of the disaster declaration. (iii) Insured applicants would not be covered if they are determined to be ineligible for coverage based on a number of exclusions established by the NFIP. Therefore, once applicants/policyholders receive the Certificate of Flood Insurance that contains a list of the policy exclusions, they should review that list to see if they are ineligible for coverage. Those applicants who fail to do this may find that their property is, in fact, not covered by the insurance policy when the next flooding incident occurs and they file for losses. Once the applicants find that their damaged buildings, contents, or both, are ineligible for coverage, they should notify the NFIP in writing in order to have their names removed from the GFIP, and to have the flood insurance maintenance requirement expunged from the data-tracking system. (10) Miscellaneous. [89 FR 4123, Jan. 22, 2024] § 206.120 State administration of other needs assistance. (a) State administration of other needs assistance. (b) State administrative options. (c) State Administrative Plan (SAP). (1) Timeframe for submission of SAP. (2) Renewals. (3) Amendments. (i) During non-disaster periods. (ii) During Presidentially-declared disasters. (d) State administrative plan requirements. (1) Assignment of grant program responsibilities to State officials or agencies. (2) Staffing Schedule that identifies the position, salary and percent of time for each staff person assigned to program administration and/or implementation. (3) Procedures for interaction with applicants: (i) Procedures for notifying potential applicants of the availability of the program, to include the publication of application deadlines, pertinent program descriptions, and further program information on the requirements which must be met by the applicant in order to receive assistance; (ii) Procedures for registration and acceptance of applications, including late applications, up to the prescribed time limitations as described in § 206.112; (iii) Procedures for damage inspection and/or other verifications. (iv) Eligibility determinations. (A) Under a cooperative agreement: (B) Under a grant: (v) Procedures for checking compliance for mandated flood insurance in accordance with § 206.110(k); (vi) Procedures for notifying applicants of the State's eligibility decision; (vii) Procedures for disbursement of funds to applicants; (viii) Procedures for applicant appeal processing. Procedures must provide for any appealable determination as identified in § 206.115(a); (ix) Procedures for expeditious reporting of allegations of fraud, waste or abuse to DHS Office of Inspector General. (x) Capacity to investigate allegations of waste, fraud and abuse independently if requested by DHS OIG, or in conjunction with DHS OIG. (xi) Provisions for safeguarding the privacy of applicants and the confidentiality of information, in accordance with § 206.110(j). (xii) Provisions for complying with § 206.116(b), Recovery of funds. (4) Procedures for financial management, accountability and oversight. (i) Procedures for verifying by random sample that assistance funds are meeting applicants' needs, are not duplicating assistance from other means, and are meeting flood insurance requirements. (ii) Provisions for specifically identifying, in the accounts of the State, all Federal and State funds committed to each grant program; and for immediately returning, upon discovery, all Federal funds that are excess to program needs. (iii) Provisions for accounting for cash in compliance with State law and procedure and the Cash Management Improvement Act of 1990, as amended. (iv) Reports. (A) Procedures for preparing and submitting quarterly and final Financial Status Reports in compliance with 2 CFR 200.327. (B) Procedures for submitting Program Status Reports in compliance with paragraph (f)(2)(iii) of this section. (C) Procedures for preparing and submitting the PSC 272, Federal Cash Transactions Report. (v) Procedures for inventory control, including a system for identifying and tracking placement of equipment purchased with grant funds or loaned by FEMA to the State for purposes of administering the Individuals and Households Program. (vi) Procedures for return of funds to FEMA. (vii) State criteria and requirements for closing out Federal grants. (viii) Process for retention of records. (e) Application for assistance procedure. (1) The State must submit an Other Needs assistance application to the Regional Administrator within 72 hours of the major disaster declaration before IHP assistance may be provided. FEMA will work with the State to approve the application or to modify it so it can be approved. (2) The application shall include: (i) Standard Form (SF) 424, Application for Federal Assistance; (ii) FEMA Form (FF) 20-20 Budget Information—Non Construction Programs; (iii) Copy of approved indirect cost rate from a Federal cognizant agency if indirect costs will be charged to the grant. Indirect costs will be included in the administrative costs of the grant allowed under paragraph (a) of this section; and (iv) Disaster specific changes to the State Administrative Plan, if applicable. (f) Grants management oversight Period of assistance. (2) Reporting requirements. (ii) The State shall provide copies of PSC 272, Federal Cash Transactions Report to FEMA. The PSC 272 is required quarterly by the Department of Health and Human Services from users of its SMARTLINK service. (iii) The State shall provide weekly program status reports which include the number and dollar amount of applications approved, the amount of assistance disbursed and the number of appeals received. (3) Ineligible costs. (4) Closeout. (5) Recovery of funds. (i) Adjustments to expenditures will be made as funding is recovered and will be reported quarterly on the Financial Status Report. (ii) A list of applicants from whom recoveries are processed will be submitted on the quarterly progress report to allow FEMA to adjust its program and financial information systems. (iii) The State will reimburse FEMA for the Federal share of awards not recovered through quarterly financial adjustments within the 90 day close out liquidation period of the grant award. (iv) If the State does not reimburse FEMA within the 90 day close out liquidation period, a bill for collection will be issued. FEMA will charge interest, penalties, and administrative fees on delinquent bills for collection in accordance with the Debt Collection Improvement Act. Recovered funds, interest, penalties, and fees owed to FEMA through delinquent bills for collection may be offset from other FEMA disaster assistance programs from which the State is receiving funds or future grant awards from FEMA or other Federal agencies. Debt collection procedures will be followed as outlined in 44 CFR part 11. (6) Audit requirements. (7) Document retention. [67 FR 61452, Sept. 30, 2002; 67 FR 62896, 62897, Oct. 9, 2002; 79 FR 76085, Dec. 19, 2014; 82 FR 42, Jan. 3, 2017] §§ 206.121-206.130 [Reserved] Subpart E [Reserved] Subpart F—Other Individual Assistance § 206.141 Disaster unemployment assistance. The authority to implement the disaster unemployment assistance (DUA) program authorized by section 410 of the Stafford Act, and the authority to issue regulations, are currently delegated to the Secretary of Labor. §§ 206.142-206.150 [Reserved] § 206.151 Food commodities. (a) The Administrator will assure that adequate stocks of food will be ready and conveniently available for emergency mass feeding or distribution in any area of the United States which suffers a major disaster or emergency. (b) In carrying out the responsibilities in paragraph (a) of this section, the Administrator may direct the Secretary of Agriculture to purchase food commodities in accordance with authorities prescribed in section 413(b) of the Stafford Act. §§ 206.152-206.160 [Reserved] § 206.161 Relocation assistance. Notwithstanding any other provision of law, no person otherwise eligible for any kind of replacement housing payment under the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (Pub. L. 91-646) shall be denied such eligibility as a result of his being unable, because of a major disaster as determined by the President, to meet the occupancy requirements set by such Act. §§ 206.162-206.163 [Reserved] § 206.164 Disaster legal services. (a) Legal services, including legal advice, counseling, and representation in non fee-generating cases, except as provided in paragraph (b) of this section, may be provided to low-income individuals who require them as a result of a major disaster. For the purpose of this section, low-income individuals (b) Disaster legal services shall be provided free to such individuals. Fee-generating cases shall not be accepted by lawyers operating under these regulations. For purposes of this section, a fee-generating case is one which would not ordinarily be rejected by local lawyers as a result of its lack of potential remunerative value. Where any question arises as to whether a case is fee-generating as defined in this section, the Regional Administrator or his/her representative, after any necessary consultation with local or State bar associations, shall make the determination. Any fee-generating cases shall be referred by the Regional Administrator or his/her representative to private lawyers, through existing lawyer referral services, or, where that is impractical or impossible, the Regional Administrator may provide a list of lawyers from which the disaster victim may choose. Lawyers who have rendered voluntary legal assistance under these regulations are not precluded from taking fee-generating cases referred to them in this manner while in their capacity as private lawyers. (c) When the Regional Administrator determines after any necessary consultation with the State Coordinating Officer, that implementation of this section is necessary, provision of disaster legal services may be accomplished by: (1) Use of volunteer lawyers under the terms of appropriate agreements; (2) Use of Federal lawyers, provided that these lawyers do not represent an eligible disaster victim before a court or Federal agency in a matter directly involving the United States, and further provided that these lawyers do not act in a way which will violate the standards of conduct of their respective agencies or departments; (3) Use of private lawyers who may be paid by the Federal Emergency Management Agency when the Regional Administrator has determined that there is no other means of obtaining adequate legal assistance for qualified disaster victims; or (4) Any other arrangement the Regional Administrator deems appropriate. The Assistant Administrator for the Disaster Assistance Directorate shall coordinate with appropriate Federal agencies and the appropriate national, state and local bar associations, as necessary, in the implementation of the disaster legal services programs. (d) In the event it is necessary for FEMA to pay lawyers for the provision of legal services under these regulations, the Regional Administrator, in consultation with State and local bar associations, shall determine the amount of reimbursement due to the lawyers who have provided disaster legal services at the request of the Regional Administrator. At the Regional Administrator's discretion, administrative costs of lawyers providing legal services requested by him or her may also be paid. (e) Provision of disaster legal services is confined to the securing of benefits under the Act and claims arising out of a major disaster. (f) Any disaster legal services shall be provided in accordance with subpart A of these regulations, Non-discrimination in disaster assistance. §§ 206.165-206.170 [Reserved] § 206.171 Crisis counseling assistance and training. (a) Purpose. (b) Definitions. Assistant Administrator (2) Crisis (3) Crisis counseling (4) Federal Coordinating Officer (FCO) (5) Grantee (6) Immediate services (7) Major disaster (8) Project Officer (9) Regional Administrator (10) Secretary (11) State Coordinating Officer (SCO) (c) Agency policy. (2) The Regional Administrator and Assistant Administrator for the Disaster Assistance Directorate, in fulfilling their responsibilities under this section, shall coordinate with the Secretary. (3) In meeting the responsibilities under this section, the Secretary or his/her delegate will coordinate with the Assistant Administrator for the Disaster Assistance Directorate. (d) State initiation of the crisis counseling program. (e) Public or private mental health agency programs. (f) Immediate services. (1) The application must be submitted to the Regional Administrator no later than 14 days following the declaration of the major disaster. This application represents the Governor's agreement and/or certification: (i) That the requirements are beyond the State and local governments' capabilities; (ii) That the program, if approved, will be implemented according to the plan contained in the application approved by the Regional Administrator; (iii) To maintain close coordination with and provide reports to the Regional Administrator; and (iv) To include mental health disaster planning in the State's emergency plan prepared under title II of the Stafford Act. (2) The application must include: (i) The geographical areas within the designated disaster area for which services will be provided; (ii) An estimate of the number of disaster victims requiring assistance; (iii) A description of the State and local resources and capabilities, and an explanation of why these resources cannot meet the need; (iv) A description of response activities from the date of the disaster incident to the date of application; (v) A plan of services to be provided to meet the identified needs; and (vi) A detailed budget, showing the cost of proposed services separately from the cost of reimbursement for any eligible services provided prior to application. (3) Reporting requirements. (i) A mid-program report only when a regular program grant application is being prepared and submitted. This report will be included as part of the regular program grant application; (ii) A final program report, a financial status report, and a final voucher 90 days after the last day of immediate services funding. (4) Immediate services program funding: (i) Shall not exceed 60 days following the declaration of the major disaster, except when a regular program grant application has been submitted; (ii) May continue for up to 30 additional days when a regular program grant application has been submitted; (iii) May be extended by the Regional Administrator, upon written request from the State, documenting extenuating circumstances; and (iv) May reimburse the State for documented, eligible expenses from the date of the occurrence of the event or incurred in anticipation of and immediately preceding the disaster event which results in a declaration. (v) Any funds granted pursuant to an immediate services program, paragraph (f) of this section, shall be expended solely for the purposes specified in the approved application and budget, these regulations, the terms and conditions of the award, and the applicable principles prescribed in 2 CFR parts 200 and 3002. (5) Appeals. (i) The State may appeal the Regional Administrator's decision. This appeal must be submitted in writing within 60 days of the date of notification of the application decision, but early enough to allow for further appeal if desired. The appeal must include information justifying a reversal of the decision. The Regional Director shall review the material submitted, and after consultation with the Secretary, notify the State, in writing within 15 days of receipt of the appeal, of his/her decision; (ii) The State may further appeal the Regional Administrator's decision to the Assistant Administrator for the Disaster Assistance Directorate. This appeal shall be made in writing within 60 days of the date of the Regional Administrator's notification of the decision on the immediate services application. The appeal must include information justifying a reversal of the decision. The Assistant Administrator for the Disaster Assistance Directorate, or other impartial person, shall review the material submitted, and after consultation with the Secretary and Regional Administrator, notify the State, in writing, within 15 days of receipt of the appeal, of his/her decision. (g) Regular program. (i) That the requirements are beyond the State and local governments' capabilities; (ii) That the program, if approved, will be implemented according to the plan contained in the application approved by the Assistant Administrator for the Disaster Assistance Directorate; (iii) To maintain close coordination with and provide reports to the Regional Administrator, the Assistant Administrator for the Disaster Assistance Directorate, and the Secretary; and (iv) To include mental health disaster planning in the State's emergency plan prepared under title II of the Stafford Act. (2) The application must include: (i) Standard Form 424, Application for Federal Assistance; (ii) The geographical areas within the designated disaster area for which services will be supplied; (iii) An estimate of the number of disaster victims requiring assistance. This documentation of need should include the extent of physical, psychological, and social problems observed, the types of mental health problems encountered by victims, and a description of how the estimate was made; (iv) A description of the State and local resources and capabilities, and an explanation of why these resources cannot meet the need; (v) A plan of services which must include at a minimum: (A) The manner in which the program will address the needs of the affected population, including the types of services to be offered, an estimate of the length of time for which mental health services will be required, and the manner in which long-term cases will be handled; (B) A description of the organizational structure of the program, including designation by the Governor of an individual to serve as administrator of the program. If more than one agency will be delivering services, the plan to coordinate services must also be described; (C) A description of the training program for project staff, indicating the number of workers needing such training; (D) A description of the facilities to be utilized, including plans for securing office space if necessary to the project; and (E) A detailed budget, including identification of the resources the State and local governments will commit to the project, proposed funding levels for the different agencies if more than one is involved, and an estimate of the required Federal contribution. (3) Reporting requirements. (i) Quarterly progress reports, as required by the Regional Administrator or the Secretary, due 30 days after the end of the reporting period. This is consistent with 2 CFR 200.328, Monitoring and Reporting Program Performance; (ii) A final program report, to be submitted within 90 days after the end of the program period. This is also consistent with 2 CFR 200.328, Monitoring and Reporting Program Performance; (iii) An accounting of funds, in accordance with 2 CFR 200.327, Financial Reporting, to be submitted with the final program report; and (iv) Such additional reports as the Regional Administrator, Secretary, or SCO may require. (4) Regular program funding: (i) Shall not exceed 9 months from the date of the DHHS notice of grant award, except that upon the request of the State to the Regional Administrator and the Secretary, the Assistant Administrator for the Disaster Assistance Directorate may authorize up to 90 days of additional program period because of documented extraordinary circumstances. In limited circumstances, such as disasters of a catastrophic nature, the Assistant Administrator for the Disaster Assistance Directorate may extend the program period for more than 90 days where he or she deems it to be in the public interest. (ii) The amount of the regular program grant award will take into consideration the Secretary's estimate of the sum necessary to carry out the grant purpose. (iii) Any funds granted pursuant to a regular program, paragraph (g) of this section, shall be expended solely for the purposes specified in the approved application and budget, these regulations, the terms and conditions of the award, and the applicable cost principles prescribed in subpart Q of 45 CFR part 92. (5) Appeals. (h) Eligibility guidelines. (i) He/she has a mental health problem which was caused or aggravated by the major disaster or its aftermath; or (ii) He/she may benefit from preventive care techniques. (2) For training. (i) The crisis counseling project staff or consultants to the project are eligible for the specific instruction that may be required to enable them to provide professional mental health crisis counseling to eligible individuals; (ii) All Federal, State, and local disaster workers responsible for assisting disaster victims are eligible for general instruction designed to enable them to deal effectively and humanely with disaster victims. (i) Assignment of responsibilities. (i) In the case of an immediate services program application, acknowledge receipt of the request, verify (with assistance from the Secretary) that State resources are insufficient, approve or disapprove the State's application, obligate and advance funds for this purpose, review appeals, make a determination (with assistance from the Secretary), and notify the State; (ii) In the case of a regular program grant application: (A) Acknowledge receipt of the request; (B) Request the Secretary to conduct a review to determine the extent to which assistance requested by the Governor or his/her authorized representative is warranted; (C) Considering the Secretary's recommendation, recommend approval or disapproval of the application for assistance under this section; and forward the Regional Administrator's and Secretary's recommendations and documentation to the Assistant Administrator for the Disaster Assistance Directorate; (D) Assist the State in preliminary surveys and provide guidance and technical assistance if requested to do so; and (E) Maintain liaison with the Secretary and look to the Secretary for program oversight and monitoring. (2) The Secretary shall: (i) Provide technical assistance, consultation, and guidance to the Regional Administrator in reviewing a State's application, to a State during program implementation and development, and to mental health agencies, as appropriate; (ii) At the request of the Regional Administrator, conduct a review to verify the extent to which the requested assistance is needed and provide a recommendation on the need for supplementary Federal assistance. The review must include: (A) A verification of the need for services with an indication of how the verification was conducted; (B) Identification of the Federal mental health programs in the area, and the extent to which such existing programs can help alleviate the need; (C) An identification of State, local, and private mental health resources, and the extent to which these resources can assume the workload without assistance under this section and the extent to which supplemental assistance is warranted; (D) A description of the needs; and (E) A determination of whether the plan adequately addresses the mental health needs; (iii) If the application is approved, provide grant assistance to States or the designated public or private entities; (iv) If the application is approved, monitor the progress of the program and perform program oversight; (v) Coordinate with, and provide program reports to, the Regional Administrator, and the Assistant Administrator for the Disaster Assistance Directorate; (vi) Make the appeal determination, for regular program grants, involving allowable costs and termination for cause as described in paragraph (j)(2) of this section; (vii) As part of the project monitoring responsibilities, report to the Regional Administrator and Assistant Administrator for the Disaster Assistance Directorate at least quarterly on the progress of crisis counseling programs, in a report format jointly agreed upon by the Secretary and FEMA; provide special reports, as requested by the Regional Administrator, FCO, or Assistant Administrator for the Disaster Assistance Directorate; (viii) Require progress reports and other reports from the grantee to facilitate his/her project monitoring responsibilities; (ix) Properly account for all Federal funds made available to grantees under this section. Submit to the Assistant Administrator for the Disaster Assistance Directorate, within 120 days of completion of a program, a final accounting of all expenditures for the program and return to FEMA all excess funds. Attention is called to the reimbursement requirements of this part. (3) The Assistant Administrator for the Disaster Assistance Directorate shall: (i) Approve or disapprove a State's request for assistance based on recommendations of the Regional Administrator and the Secretary; (ii) Obligate funds and authorize advances of funds to the DHHS; (iii) Request that the Secretary designate a Project Officer; (iv) Maintain liaison with the Secretary and Regional Administrator; and (v) Review and make determinations on appeals, except for regular program appeals involving allowable costs and termination for cause as described in paragraph (j)(2) of this section, and notify the State of the decision. (j) Grant awards. (2) Several other regulations of the DHHS apply to grants under this section. These include, but are not limited to: 45 CFR part 16—DHHS grant appeals procedures 42 CFR part 50, subpart D—PHS grant appeals procedures 45 CFR part 74—Administration of grants 45 CFR part 75—Informal grant appeals procedures (indirect cost rates and other cost allocations) 45 CFR part 80—Nondiscrimination under programs receiving Federal assistance through the DHHS (effectuation of Title VI of the Civil Rights Act of 1964) 45 CFR part 81—Practice and procedure for hearings under part 80 45 CFR part 84—Nondiscrimination on the basis of handicap in federally assisted programs 45 CFR part 86—Nondiscrimination on the basis of sex in federally assisted programs 45 CFR part 91—Nondiscrimination on the basis of age in federally assisted programs 45 CFR part 92—Uniform administrative requirements for grants and cooperative agreements to State and local governments (k) Federal audits. [54 FR 11615, Mar. 21, 1989, as amended at 68 FR 9900, Mar. 3, 2003; 79 FR 76085, Dec. 19, 2014] §§ 206.172-206.180 [Reserved] § 206.181 Use of gifts and bequests for disaster assistance purposes. (a) General. (b) Purposes for awarding funds. (1) Disaster-related home repair and rebuilding assistance to families for permanent housing purposes, including site acquisition and development, relocation of residences out of hazardous areas, assistance with costs associated with temporary housing or permanent rehousing (e.g., utility deposits, access, transportation, connection of utilities, etc.); (2) Disaster-related unmet needs of families who are unable to obtain adequate assistance under the Act or from other sources. Such assistance may include but is not limited to: health and safety measures; evacuation costs; assistance delineated in the Act or other Federal, State, local, or volunteer programs; hazard mitigation or floodplain management purposes; and assistance to self-employed persons (with no employees) to reestablish their businesses; and (3) Other services which alleviate human suffering and promote the well being of disaster victims. For example, services to the elderly, to children, or to handicapped persons, such as transportation, recreational programs, provision of special ramps, or hospital or home visiting services. The funds may be provided to individual disaster victims, or to benefit a group of disaster victims. (c) Conditions for use of the Cora Brown Fund. Federal Register, (2) A disaster victim normally will receive no more than $2,000 from this fund in any one declared disaster unless the Assistant Administrator for the Disaster Assistance Directorate determines that a larger amount is in the best interest of the disaster victim and the Federal Government. Funds to provide service which benefit a group may be awarded in an amount determined by the Assistant Administrator for the Disaster Assistance Directorate, based on the Regional Administrator's recommendation. (3) The fund may not be used in a way that is inconsistent with other federally mandated disaster assistance or insurance programs, or to modify other generally applicable requirements. (4) Funds awarded to a disaster victim may be provided by FEMA jointly to the disaster victim and to a State or local agency, or volunteer organization, to enable such an agent to assist in providing the approved assistance to an applicant. Example: Repair funds may be provided jointly to an applicant and the Mennonite Disaster Service, who will coordinate the purchase of supplies and provide the labor. (5) Money from this fund will not duplicate assistance for which a person is eligible from other sources. (6) In order to comply with the Flood Disaster Protection Act of 1973 (Pub. L. 93-234), as amended, any award for acquisition or construction purposes shall carry a requirement that any adequate flood insurance policy be purchased and maintained. The Assistant Administrator for the Disaster Assistance Directorate shall determine what is adequate based on the purpose of the award. (7) The fund shall be administered in an equitable and impartial manner without discrimination on the grounds of race, color, religion, national origin, sex, age, or economic status. (8) Funds awarded to a disaster victim from this fund may be combined with funds from other sources. (d) Administrative procedures. (2) The Chief Financial Officer shall be responsible for fund accountability and, in coordination with the Assistant Administrator for the Disaster Assistance Directorate, for liaison with the Department of the Treasury concerning the investment of excess money in the fund pursuant to the provisions contained in section 601 of the Act. (3) Each FEMA Regional Administrator may submit requests to the Assistant Administrator for the Disaster Assistance Directorate on a disaster victim's behalf by providing documentation describing the needs of the disaster victim, a verification of the disaster victim's claim, a record of other assistance which has been or will be available for the same purpose, and his/her recommendation as to the items and the amount. The Assistant Administrator for the Disaster Assistance Directorate shall review the facts and make a determination. If the award amount is below $2,000, the Assistant Administrator for the Disaster Assistance Directorate may appoint a designee to have approval authority; approval authority of $2,000 or above shall be retained by the Assistant Administrator for the Disaster Assistance Directorate. The Assistant Administrator for the Disaster Assistance Directorate shall notify the Chief Financial Officer of a decision for approval, and the Chief Financial Officer shall order a check to be sent to the disaster victim (or jointly to the disaster victim and an assistance organization), through the Regional Administrator. The Assistant Administrator for the Disaster Assistance Directorate shall also notify the Regional Administrator of the decision, whether for approval or disapproval. The Regional Administrator shall notify the disaster victim in writing, identify any award as assistance from the Cora Brown Fund, and advise the recipient of appeal procedures. (4) If the award is to be for a service to a group of disaster victims, the Regional Administrator shall submit his/her recommendation and supporting documentation to the Assistant Administrator for the Disaster Assistance Directorate (or his/her designee if the award is below $2,000), who shall review the information and make a determination. In cases of approval, the Assistant Administrator for the Disaster Assistance Directorate shall request the Chief Financial Officer to send a check to the intended recipient or provider, as appropriate. The Assistant Administrator for the Disaster Assistance Directorate shall notify the Regional Administrator of the decision. The Regional Administrator shall notify a representative of the group in writing. (5) The Chief Financial Officer shall process requests for checks, shall keep records of disbursements and balances in the account, and shall provide the Assistant Administrator for the Disaster Assistance Directorate with quarterly reports. (e) Audits. §§ 206.182-206.190 [Reserved] § 206.191 Duplication of benefits. (a) Purpose. (b) Government policy. (2) Major disaster and emergency assistance provided to individuals and families under the Act, and comparable disaster assistance provided by States, local governments, and disaster assistance organizations, is not considered as income or a resource when determining eligibility for or benefit levels under federally funded income assistance or resource-tested programs. Examples of federally funded income assistance or resource-tested programs are the food stamp program and welfare assistance programs. (c) FEMA policy. (1) To prevent duplication of benefits between its own programs and insurance benefits, and between its own programs and other disaster assistance. Assistance under the Act may be provided in instances where the applicant has not received other benefits to which he/she may be entitled by the time of application and if the applicant agrees to repay all duplicated assistance to the agency providing the Federal assistance; (2) To examine a debt resulting from duplication to determine that the likelihood of collecting the debt and the best interests of the Federal Government justify taking the necessary recovery actions to remedy duplication which has occurred when other assistance has become available; (3) To assure uniformity in preventing duplication of benefits, by consulting with other Federal agencies and by performing selected quality control reviews, that the other disaster relief agencies establish and follow policies and procedures to prevent and remedy duplication among their programs, other programs, and insurance benefits; and (4) To coordinate the effort of agencies providing assistance so that each agency understands the prevention and remedial policies of the others and is able to fulfill its own responsibilities regarding duplication of benefits. (d) Guidance to prevent duplication of benefits. (i) Duplication occurs when an agency has provided assistance which was the primary responsibility of another agency, and the agency with primary responsibility later provides assistance. A delivery sequence establishes the order in which disaster relief agencies and organizations provide assistance. The specific sequence, in accordance with the mandates of the assistance programs, is to be generally followed in the delivery of assistance. (ii) When the delivery sequence has been disrupted, the disrupting agency is responsible for rectifying the duplication. The delivery sequence pertains to that period of time in the recovery phase when most of the traditional disaster assistance programs are available. (2) The delivery sequence is, in order of delivery: (i) Volunteer agencies' emergency assistance (except expendable items such as clothes, linens, and basic kitchenware); insurance (including flood insurance); (ii) Housing assistance pursuant to the Stafford Act, 42 U.S.C. 5174; (iii) Other Needs assistance, pursuant to the Stafford Act, 42 U.S.C. 5174; (iv) Small Business Administration and Department of Agriculture disaster loans; (v) Volunteer agencies' “additional assistance” programs; and (vi) The “Cora Brown Fund.” (3) Two significant points about the delivery sequence are that: (i) Each assistance agency should, in turn, offer and be responsible for delivering assistance without regard to duplication with a program later in the sequence; and (ii) The sequence itself determines what types of assistance can duplicate other assistance (i.e., a Federal program can duplicate insurance benefits, however, insurance benefits cannot duplicate the Federal assistance). An agency's position in the sequence determines the order in which it should provide assistance and what other resources it must consider before it does so. (4) If following the delivery sequence concept would adversely affect the timely receipt of essential assistance by an individual or household, an agency may offer assistance which is the primary responsibility of another agency. There also may be cases when an agency (Agency B) delivers assistance which is normally the primary responsibility of another agency (Agency A) because Agency A has, for good cause, denied assistance. After the assistance is delivered, Agency A reopens the case. If the primary response Agency A then provides assistance, that Agency A is responsible for coordinating with Agency B to either: (i) Assist Agency B in preventing the duplication of benefits, or (ii) In the case where the individual or household has refused assistance from Agency A, Agency A must notify Agency B that it must recover assistance previously provided. (e) Program guidance Programs under the Act vs. other agency assistance. (ii) If it is determined that timely assistance can be provided by the agency with primary responsibility, refrain from providing assistance under the Act. If it is determined that assistance from the agency with primary responsibility will be delayed, assistance under the Act may be provided, but then must be recovered from the applicant when the other assistance becomes available. (2) Programs under the Act vs. insurance. (i) Remind the applicant about his/her responsibility to pursue an adequate settlement. The applicant must provide information concerning insurance recoveries. (ii) Determine whether the applicant's insurance settlement will be sufficient to cover the loss or need without disaster assistance; and (iii) Determine whether insurance benefits (including flood insurance) will be provided in a timely way. Where flood insurance is involved, FEMA must coordinate with the Federal Insurance Administration. The purpose of this coordination is to obtain information about flood insurance coverage and settlements. (3) Random sample. (4) Duplication when assistance under the Act is involved. (i) If the duplicating agency followed its procedures and was successful in correcting the duplication, FEMA will take no further action. If the agency was not successful in correcting the duplication, and FEMA is satisfied that the duplicating agency followed its remedial procedures, no further action will be taken. (ii) If the duplicating agency did not follow its duplication of benefits procedures, or FEMA is not satisfied that the procedures were followed in an acceptable manner, then FEMA must provide an opportunity for the agency to take the required corrective action. If the agency cannot fulfill its responsibilities for remedial action, FEMA must notify the recipient of the excess assistance, and after examining the debt, then as appropriate, take those recovery actions in conjunction with agency representatives for each identified case in the random sample (or larger universe, at FEMA's discretion). (5) Duplication when assistance under other authorities is involved. (f) Recovering FEMA funds: debt collection. (g) Severability. [54 FR 11615, Mar. 21, 1989, as amended at 67 FR 61460, Sept. 30, 2002; 74 FR 15350, Apr. 3, 2009; 89 FR 4124, Jan. 22, 2024] §§ 206.192-206.199 [Reserved] Subpart G—Public Assistance Project Administration Source: 55 FR 2304, Jan. 23, 1990, unless otherwise noted. § 206.200 General. (a) Purpose. (b) What policies apply to FEMA public assistance grants? (2) The regulations entitled “Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards,” published at 2 CFR parts 200 and 3002, place requirements on the State in its role as recipient and gives the recipient discretion to administer federal programs under their own procedures. We expect the recipient to: (i) Inform subrecipients about the status of their applications, including notifications of our approvals of Project Worksheets and our estimates of when we will make payments; (ii) Pay the full amounts due to subrecipients as soon as practicable after we approve payment, including the State contribution required in the FEMA-State Agreement; and (iii) Pay the State contribution consistent with State laws. [55 FR 2304, Jan. 23, 1990, as amended at 63 FR 64425, Nov. 20, 1998; 64 FR 55160, Oct. 12, 1999; 79 FR 76086, Dec. 19, 2014; 82 FR 42, Jan. 3, 2017] § 206.201 Definitions used in this subpart. (a) Applicant (b) Emergency work (c) Facility (d) Grant (e) Hazard mitigation (f) Host-State. (g) Impact-State. (h) Indian Tribal government (i) Permanent work (j) Predisaster design (k) A project (1) We must approve a scope of eligible work and an itemized cost estimate before funding a project. (2) A project may include eligible work at several sites. (l) Project approval (m) Recipient. (n) Subgrant (o) Subrecipient [55 FR 2304, Jan. 23, 1990, as amended at 63 FR 64425, Nov. 20, 1998; 64 FR 55160, Oct. 12, 1999; 74 FR 60213, Nov. 20, 2009; 82 FR 43, Jan. 3, 2017] § 206.202 Application procedures. (a) General. (b) Recipient. (1) Providing technical advice and assistance to eligible subrecipients; (2) Providing State support for project identification activities to include small and large project formulation and the validation of small projects; (3) Ensuring that all potential applicants are aware of available public assistance; and (4) Submitting documents necessary for the award of grants. (c) Request for Public Assistance (Request). Request Requests (d) Project Worksheets. (i) We or the applicant, assisted by the State as appropriate, will prepare a Project Worksheet (FEMA Form 90-91) for each project. The Project Worksheet must identify the eligible scope of work and must include a quantitative estimate for the eligible work. (ii) The applicant will have 60 days following its first substantive meeting with us to identify and to report damage to us. (2) When the estimated cost of work on a project is less than $3,000, that work is not eligible and we will not approve a Project Worksheet for the project. Such $3,000 amount shall be adjusted annually to reflect changes in the Consumer Price Index for All Urban Consumers published by the Department of Labor. (e) Grant approval. (2) When the applicant submits the Project Worksheets, we will have 45 days to obligate Federal funds. If we have a delay beyond 45 days we will explain the delay to the recipient. (f) Exceptions. (1) Host-State Evacuation and/or Sheltering General. Application for Federal Assistance (ii) Force Account Labor Costs. (2) Time limitations. [64 FR 55160, Oct. 12, 1999, as amended at 74 FR 15350, Apr. 3, 2009; 74 FR 60213, Nov. 20, 2009; 79 FR 10686, Feb. 26, 2014; 79 FR 76086, Dec. 19, 2014; 82 FR 43, Jan. 3, 2017] § 206.203 Federal grant assistance. (a) General. (b) Cost sharing. (c) Project funding Large projects. (2) Small projects. (3) Applicability date. (d) Funding options Improved projects. (2) Alternate projects. (i) The alternate project option may be taken only on permanent restorative work. (ii) Federal funding for alternate projects for damaged public facilities will be 90 percent of the Federal share of the Federal estimate of the cost of repairing, restoring, reconstructing, or replacing the facility and of management expenses. (iii) Federal funding for alternate projects for damaged private nonprofit facilities will be 75 percent of the Federal share of the Federal estimate of the cost of repairing, restoring, reconstructing, or replacing the facility and of management expenses. (iv) Funds contributed for alternate projects may be used to repair or expand other selected public facilities, to construct new facilities, or to fund hazard mitigation measures. These funds may not be used to pay the nonFederal share of any project, nor for any operating expense. (v) Prior to the start of construction of any alternate project the recipient shall submit for approval by the Regional Administrator the following: a description of the proposed alternate project(s); a schedule of work; and the projected cost of the project(s). The recipient shall also provide the necessary assurances to document compliance with special requirements, including, but not limited to floodplain management, environmental assessment, hazard mitigation, protection of wetlands, and insurance. [55 FR 2304, Jan. 23, 1990, as amended at 66 FR 22444, May 4, 2001; 73 FR 20551, Apr. 16, 2008; 79 FR 10686, Feb. 26, 2014; 82 FR 43, Jan. 3, 2017; 87 FR 47379, Aug. 3, 2022] § 206.204 Project performance. (a) General. (b) Advances of funds. (c) Time limitations for completion of work Deadlines. Completion Deadlines Type of work Months Debris clearance 6 Emergency work 6 Permanent work 18 (2) Exceptions. (ii) Based on extenuating circumstances or unusual project requirements beyond the control of the subrecipient, the recipient may extend the deadlines under paragraph (c)(1) of this section for an additional 6 months for debris clearance and emergency work and an additional 30 months, on a project by project basis for permanent work. (d) Requests for time extensions. (1) The dates and provisions of all previous time extensions on the project; and (2) A detailed justification for the delay and a projected completion date. The Regional Administrator shall review the request and make a determination. The recipient shall be notified of the Regional Administrator's determination in writing. If the Regional Administrator approves the request, the letter shall reflect the approved completion date and any other requirements the Regional Administrator may determine necessary to ensure that the new completion date is met. If the Regional Administrator denies the time extension request, the recipient may, upon completion of the project, be reimbursed for eligible project costs incurred only up to the latest approved completion date. If the project is not completed, no Federal funding will be provided for that project. (e) Cost Overruns. (i) Variations in unit prices; (ii) Change in the scope of eligible work; or (iii) Delays in timely starts or completion of eligible work. (2) The subrecipient must evaluate each cost overrun and, when justified, submit a request for additional funding through the recipient to the Regional Administrator for a final determination. All requests for the Regional Administrator's approval will contain sufficient documentation to support the eligibility of all claimed work and costs. The recipient must include a written recommendation when forwarding the request. The Regional Administrator will notify the recipient in writing of the final determination. FEMA will not normally review an overrun for an individual small project. The normal procedure for small projects will be that when a subrecipient discovers a significant overrun related to the total final cost for all small projects, the subrecipient may submit an appeal for additional funding in accordance with § 206.206, within 60 days following the completion of all its small projects. (f) Progress reports. [55 FR 2304, Jan. 23, 1990; 55 FR 5458, Feb. 15, 1990, as amended at 64 FR 55161, Oct. 12, 1999; 79 FR 76086, Dec. 19, 2014; 82 FR 43, Jan. 3, 2017] § 206.205 Payment of claims. (a) Small Projects. (b) Large projects. (2) The Regional Administrator shall review the accounting to determine the eligible amount of reimbursement for each large project and approve eligible costs. If a discrepancy between reported costs and approved funding exists, the Regional Administrator may conduct field reviews to gather additional information. If discrepancies in the claim cannot be resolved through a field review, a Federal audit may be conducted. If the Regional Administrator determines that eligible costs exceed the initial approval, he/she will obligate additional funds as necessary. [55 FR 2304, Jan. 23, 1990, as amended at 64 FR 55161, Oct. 12, 1999; 79 FR 76086, Dec. 19, 2014; 82 FR 43, Jan. 3, 2017] § 206.206 Appeals and arbitrations. (a) Definitions. Administrator Amount in dispute Applicant Final agency determination means: (2) The decision of FEMA, if the applicant or recipient withdraws the pending appeal and does not file a request for arbitration within 30 calendar days of the withdrawal of the pending appeal; or (3) The decision of the FEMA Regional Administrator, if the applicant or recipient does not submit a second appeal within the time limits provided for in paragraph (b)(2)(ii)(A) of this section. Recipient Regional Administrator Rural area Urbanized area (b) Appeals and arbitrations. (1) First appeal. (i) Content. (A) Contain all documented justification supporting the applicant or recipient's position; (B) Specify the amount in dispute, as applicable; and (C) Specify the provisions in Federal law, regulation, or policy with which the applicant or recipient believes the FEMA determination was inconsistent. (ii) Time limits. (B) Within 90 calendar days following receipt of a first appeal, if there is a need for additional information, the Regional Administrator will provide electronic notice to the recipient and applicant. If there is no need for additional information, then FEMA will not provide notification. The Regional Administrator will generally allow the recipient 30 calendar days to provide any additional information. (C) The Regional Administrator will provide electronic notice of the disposition of the appeal to the applicant and recipient within 90 calendar days of receipt of the appeal or within 90 calendar days following the receipt of additional information or following expiration of the period for providing the information. (iii) Technical advice. (iv) Effect of an appeal. (B) Notwithstanding paragraph (b)(1)(iv)(A) of this section, FEMA may: ( 1 ( 2 ( 3 (v) Implementation. (vi) Guidance. (2) Second appeal. (i) Content. (A) Contain all documented justification supporting the applicant or recipient's position; (B) Specify the amount in dispute, as applicable; and (C) Specify the provisions in Federal law, regulation, or policy with which the applicant or recipient believes the FEMA determination was inconsistent. (ii) Time limits. (B) Within 90 calendar days following receipt of a second appeal, if there is a need for additional information, the Assistant Administrator for the Recovery Directorate will provide electronic notice to the recipient and applicant. If there is no need for additional information, then FEMA will not provide notification. The Assistant Administrator for the Recovery Directorate will generally allow the recipient 30 calendar days to provide any additional information. (C) The Assistant Administrator for the Recovery Directorate will provide electronic notice of the disposition of the appeal to the recipient and applicant within 90 calendar days of receipt of the appeal or within 90 calendar days following the receipt of additional information or following expiration of the period for providing the information. (iii) Technical advice. (iv) Effect of an appeal. (B) Notwithstanding paragraph (b)(2)(iv)(A) of this section, FEMA may: ( 1 ( 2 ( 3 (v) Implementation. (vi) Guidance. (3) Arbitration Applicability. (A) There is a dispute of the eligibility for assistance or of the repayment of assistance arising from a major disaster declared on or after January 1, 2016; and (B) The amount in dispute is greater than $500,000, or greater than $100,000 for an applicant for assistance in a rural area; and (C) The Regional Administrator has denied a first appeal decision or received a first appeal but not rendered a decision within 180 calendar days of receipt. (ii) Limitations. (iii) Request for arbitration. (B) Time limits. 1 ( 2 (C) Content of request. (iv) Expenses. (v) Guidance. (c) Finality of decision. (2) In the alternative, a decision of the majority of the CBCA panel constitutes a final decision, binding on all parties. See 48 CFR 6106.613. Final decisions are not subject to further administrative review. [86 FR 45683, Aug. 16, 2021] § 206.207 Administrative and audit requirements. (a) General. (b) State administrative plan. (i) The designation of the State agency or agencies which will have the responsibility for program administration. (ii) The identification of staffing functions in the Public Assistance program, the sources of staff to fill these functions, and the management and oversight responsibilities of each. (iii) Procedures for: (A) Notifying potential applicants of the availability of the program; (B) Conducting briefings for potential applicants and application procedures, program eligibility guidance and program deadlines; (C) Assisting FEMA in determining applicant eligibility; (D) Participating with FEMA in conducting damage surveys to serve as a basis for obligations of funds to subrecipients; (E) Participating with FEMA in the establishment of hazard mitigation and insurance requirements; (F) Processing appeal requests, requests for time extensions and requests for approval of overruns, and for processing appeals of recipient decisions; (G) Compliance with the administrative requirements of 2 CFR parts 200 and 3002 and 44 CFR part 206; (H) Compliance with the audit requirements of 2 CFR parts 200 and 3002; (I) Processing requests for advances of funds and reimbursement; and (J) Determining staffing and budgeting requirements necessary for proper program management. (K) Determining the reasonable percentage or amount of pass-through funds for management costs provided under 44 CFR part 207 that the recipient will make available to subrecipients, and the basis, criteria, or formula for determining the subrecipient percentage or amount. (2) The recipient may request the Regional Administrator to provide technical assistance in the preparation of such administrative plan. (3) In accordance with the Interim Rule published March 21, 1989, the recipient was to have submitted an administrative plan to the RD for approval by September 18, 1989. An approved plan must be on file with FEMA before grants will be approved in a future major disaster. Thereafter, the recipient shall submit a revised plan to the Regional Administrator annually. In each disaster for which Public Assistance is included, the Regional Administrator shall request the recipient to prepare any amendments required to meet current policy guidance. (4) The recipient shall ensure that the approved administrative plan is incorporated into the State emergency plan. (c) Audit Nonfederal audit. (2) Federal audit. [55 FR 2304, Jan. 23, 1990; 55 FR 5458, Feb. 15, 1990, as amended at 72 FR 57875, Oct. 11, 2007; 74 FR 15350, Apr. 3, 2009; 79 FR 76086, Dec. 19, 2014; 82 FR 43, Jan. 3, 2017] § 206.208 Direct Federal assistance. (a) General. (b) Requests for assistance. (1) A written agreement that the State will: (i) Provide without cost to the United States all lands, easements and rights-of-ways necessary to accomplish the approved work; (ii) Hold and save the United States free from damages due to the requested work, and shall indemnify the Federal Government against any claims arising from such work; (iii) Provide reimbursement to FEMA for the nonFederal share of the cost of such work in accordance with the provisions of the FEMA-State Agreement; and (iv) Assist the performing Federal agency in all support and local jurisdictional matters. (2) A statement as to the reasons the State and the local government cannot perform or contract for performance of the requested work. (3) A written agreement from an eligible applicant that such applicant will be responsible for the items in subparagraph (b)(1) (i) and (ii) of this section, in the event that a State is legally unable to provide the written agreement. (c) Implementation. (2) If all or any part of the requested work falls within the statutory authority of another Federal agency, the Regional Administrator shall not approve that portion of the work. In such case, the unapproved portion of the request will be referred to the appropriate agency for action. (3) If an impact-State requests assistance in providing evacuation and sheltering support outside an impact-State, FEMA may directly reimburse a host-State for such eligible costs through a grant to a host-State under an impact-State's declaration, consistent with § 206.202(f)(1). FEMA may award a grant to a host-State when FEMA determines that a host-State has sufficient capability to meet some or all of the sheltering and/or evacuation needs of an impact-State, and a host-State agrees in writing to provide such support to an impact-State. (d) Time limitation. (e) Project management. (2) Pursuant to the agreements provided in the request for assistance the recipient shall assist the performing Federal agency in all State and local jurisdictional matters. These matters include securing local building permits and rights of entry, control of traffic and pedestrians, and compliance with local building ordinances. [55 FR 2304, Jan. 23, 1990, as amended at 64 FR 55161, Oct. 12, 1999; 74 FR 60214, Nov. 20, 2009; 82 FR 43, Jan. 3, 2017] § 206.209 Arbitration for Public Assistance determinations related to Hurricanes Katrina and Rita (Major disaster declarations DR-1603, DR-1604, DR-1605, DR-1606, and DR-1607). (a) Scope. (b) Applicability. (1) the applicant is eligible to file an appeal under § 206.206; or (2) the applicant had a first or second level appeal pending with FEMA pursuant to § 206.206 on or after February 17, 2009. (c) Governing rules. (d) Limitations Election of remedies. (2) Final agency action under § 206.206. (e) Request for arbitration Content of request. (2) Submission by the applicant to the recipient, the FEMA Regional Administrator, and the arbitration administrator. (3) Submission by the recipient to the arbitration administrator and FEMA. (4) Submission of FEMA's response. (5) Process for submissions. (f) Selection of arbitration panel. (g) Preliminary conference. (h) Hearing Request for hearing. (2) Location of hearing. (3) Conduct of hearing. (4) Closing of hearing. (5) Time limits. (6) Postponement. (7) Record of the hearing. (8) Post-hearing submission of additional information. (9) Reopening of hearing. (i) Review by the arbitration panel Determination of timeliness. (2) Substantive review. (j) Ex parte communications. (k) Decision Time limits. (2) Form and content. (3) Finality of decision. (4) Delivery of decision. (l) Costs. (m) Guidance. [74 FR 44767, Aug. 31, 2009, as amended at 82 FR 43, Jan. 3, 2017] §§ 206.210-206.219 [Reserved] Subpart H—Public Assistance Eligibility Source: 55 FR 2307, Jan. 23, 1990, unless otherwise noted. § 206.220 General. This subpart provides policies and procedures for determinations of eligibility of applicants for public assistance, eligibility of work, and eligibility of costs for assistance under sections 402, 403, 406, 407, 418, 419, 421(d), 502, and 503 of the Stafford Act. Assistance under this subpart must also conform to requirements of 44 CFR part 201, Mitigation Planning, 44 CFR part 206, subparts G—Public Assistance Project Administration, I—Public Assistance Insurance Requirements, J—Coastal Barrier Resources Act, and M—Minimum Standards, 44 CFR part 9—Floodplain Management, and other applicable environmental and historic preservation laws, regulations, Executive Orders, and agency policy. [81 FR 56533, Aug. 22, 2016] § 206.221 Definitions. (a) Educational institution (1) Any elementary school as defined by section 801(c) of the Elementary and Secondary Education Act of 1965; or (2) Any secondary school as defined by section 801(h) of the Elementary and Secondary Education Act of 1965; or (3) Any institution of higher education as defined by section 1201 of the Higher Education Act of 1965. (b) Force account (c) Immediate threat (d) Improved property (e) Private nonprofit facility (1) Educational facilities (2) Utility (3) Irrigation facility (4) Emergency facility (5) Medical facility (6) Custodial care facility (7) Other essential governmental service facility (f) Private nonprofit organization (1) An effective ruling letter from the U.S. Internal Revenue Service, granting tax exemption under sections 501(c), (d), or (e) of the Internal Revenue Code of 1954, or (2) Satisfactory evidence from the State that the nonrevenue producing organization or entity is a nonprofit one organized or doing business under State law. (g) Public entity (h) Public facility (i) Standards [55 FR 2307, Jan. 23, 1990, as amended at 58 FR 47994, Sept. 14, 1993; 66 FR 22445, May 4, 2001] § 206.222 Applicant eligibility. The following entities are eligible to apply for assistance under the State public assistance grant: (a) State and local governments. (b) Private non-profit organizations or institutions which own or operate a private nonprofit facility as defined in § 206.221(e). (c) Indian tribes or authorized tribal organizations and Alaska Native villages or organizations, but not Alaska Native Corporations, the ownership of which is vested in private individuals. [55 FR 2307, Jan. 23, 1990, as amended at 82 FR 44, Jan. 3, 2017] § 206.223 General work eligibility. (a) General. (1) Be required as the result of the emergency or major disaster event; (2) Be located within the designated area of a major disaster or emergency declaration, except that sheltering and evacuation activities may be located outside the designated area; and (3) Be the legal responsibility of an eligible applicant. (b) Private nonprofit facilities. (c) Public entities. (d) Facilities serving a rural community or unincorporated town or village. (e) Negligence. [55 FR 2307, Jan. 23, 1990, as amended at 71 FR 40027, July 14, 2006; 74 FR 60214, Nov. 20, 2009] § 206.224 Debris removal. (a) Public interest. (1) Eliminate immediate threats to life, public health, and safety; or (2) Eliminate immediate threats of significant damage to improved public or private property; or (3) Ensure economic recovery of the affected community to the benefit of the community-at-large; or (4) Mitigate the risk to life and property by removing substantially damaged structures and associated appurtenances as needed to convert property acquired through a FEMA hazard mitigation program to uses compatible with open space, recreation, or wetlands management practices. Such removal must be completed within two years of the declaration date, unless the Assistant Administrator for the Disaster Assistance Directorate extends this period. (b) Debris removal from private property. (c) Assistance to individuals and private organizations. [55 FR 2307, Jan. 23, 1990, as amended at 66 FR 33901, June 26, 2001] § 206.225 Emergency work. (a) General. (2) In determining whether emergency work is required, the Regional Administrator may require certification by local State, and/or Federal officials that a threat exists, including identification and evaluation of the threat and recommendations of the emergency work necessary to cope with the threat. (3) In order to be eligible, emergency protective measures must: (i) Eliminate or lessen immediate threats to live, public health or safety; or (ii) Eliminate or lessen immediate threats of significant additional damage to improved public or private property through measures which are cost effective. (b) Emergency access. (c) Emergency communications. (d) Emergency public transportation. § 206.226 Restoration of damaged facilities. Work to restore eligible facilities on the basis of the design of such facilities as they existed immediately prior to the disaster and in conformity with the following is eligible: (a) Assistance under other Federal agency (OFA) programs. (2) An exception to the policy described in paragraph (a)(1) of this section exists for public elementary and secondary school facilities which are otherwise eligible for assistance from the Department of Education (ED) under 20 U.S.C. 241-1 and 20 U.S.C. 646. Such facilities are also eligible for assistance from FEMA under the Stafford Act, and recipients shall accept applications from local educational agencies for assistance under the Stafford Act. (3) The exception does not cover payment of increased current operating expenses or replacement of lost revenues as provided in 20 U.S.C. 241-1(a) and implemented by 34 CFR 219.14. Such assistance shall continue to be granted and administered by the Department of Education. (b) Mitigation planning. (c) Private nonprofit facilities. (1) The facility provides critical services, which include power, water (including water provided by an irrigation organization or facility in accordance with § 206.221(e)(3)), sewer services, wastewater treatment, communications, emergency medical care, fire department services, emergency rescue, and nursing homes; or (2) The private nonprofit organization not falling within the criteria of § 206.226(c)(1) has applied for a disaster loan under section 7(b) of the Small Business Act (15 U.S.C.636(b)) and (i) The Small Business Administration has declined the organization's application; or (ii) Has eligible damages greater than the maximum amount of the loan for which it is eligible, in which case the excess damages are eligible for FEMA assistance. (d) Standards. (1) Apply to the type of repair or restoration required; (Standards may be different for new construction and repair work) (2) Be appropriate to the predisaster use of the facility; (3)(i) Be found reasonable, in writing, and formally adopted and implemented by the State or local government on or before the disaster declaration date or be a legal Federal requirement applicable to the type of restoration. (ii) This paragraph (d) applies to local governments on January 1, 1999 and to States on January 1, 2000. Until the respective applicability dates, the standards must be in writing and formally adopted by the applicant prior to project approval or be a legal Federal or State requirement applicable to the type of restoration. (4) Apply uniformly to all similar types of facilities within the jurisdiction of owner of the facility; and (5) For any standard in effect at the time of a disaster, it must have been enforced during the time it was in effect. (e) Hazard mitigation. (f) Repair vs. replacement. (2) If a damaged facility is not repairable in accordance with paragraph (f)(1) of this section, approved restorative work may include replacement of the facility. The applicant may elect to perform repairs to the facility, in lieu of replacement, if such work is in conformity with applicable standards. However, eligible costs shall be limited to the less expensive of repairs or replacement. (3) An exception to the limitation in paragraph (d)(2) of this section may be allowed for facilities eligible for or on the National Register of Historic Properties. If an applicable standard requires repair in a certain manner, costs associated with that standard will be eligible. (g) Relocation. (i) The facility is and will be subject to repetitive heavy damage; (ii) The approval is not barred by other provisions of title 44 CFR; and (iii) The overall project, including all costs, is cost effective. (2) When relocation is required by the Regional Administrator, eligible work includes land acquisition and ancillary facilities such as roads and utilities, in addition to work normally eligible as part of a facility reconstruction. Demolition and removal of the old facility is also an eligible cost. (3) When relocation is required by the Regional Administrator, no future funding for repair or replacement of a facility at the original site will be approved, except those facilities which facilitate an open space use in accordance with 44 CFR part 9. (4) When relocation is required by the Regional Administrator, and, instead of relocation, the applicant requests approval of an alternate project [see § 206.203(d)(2)], eligible costs will be limited to 90 percent of the estimate of restoration at the original location excluding hazard mitigation measures. (5) If relocation of a facility is not feasible or cost effective, the Regional Administrator shall disapprove Federal funding for the original location when he/she determines in accordance with 44 CFR parts 9, 10, 201, or subpart M of this part 206, that restoration in the original location is not allowed. In such cases, an alternative project may be applied for. (h) Equipment and furnishings. (i) Library books and publications. (j) Beaches. (2) Improved beaches. Work on an improved beach may be eligible under the following conditions: (i) The beach was constructed by the placement of sand (of proper grain size) to a designed elevation, width, and slope; and (ii) A maintenance program involving periodic renourishment of sand must have been established and adhered to by the applicant. (k) Restrictions Alternative use facilities. (2) Inactive facilities. [55 FR 2307, Jan. 23, 1990, as amended at 58 FR 55022, Oct. 25, 1993; 63 FR 5897, Feb. 5, 1998; 66 FR 22445, May 4, 2001; 67 FR 8854, Feb. 26, 2002; 68 FR 61371, Oct. 28, 2003; 69 FR 55097, Sept. 13, 2004; 74 FR 15350, Apr. 3, 2009; 74 FR 47482, Sept. 16, 2009; 82 FR 44, Jan. 3, 2017] § 206.227 Snow assistance. Emergency or major disaster declarations based on snow or blizzard conditions will be made only for cases of record or near record snowstorms, as established by official government records. Federal assistance will be provided for all costs eligible under 44 CFR 206.225 for a specified period of time which will be determined by the circumstances of the event. [62 FR 45330, Aug. 27, 1997] § 206.228 Allowable costs. General policies for determining allowable costs are established in2 CFR 200, subpart E. Exceptions to those policies as allowed in 2 CFR 200, subpart E and 2 CFR 200.102 are explained below. (a) Eligible direct costs Applicant-owned equipment. (i) Rates established under State guidelines. (ii) Rates established under local guidelines. (iii) No established rates. (2) Force Account Labor Costs. (i) Eligible in calculating the cost of eligible permanent repair, restoration, and replacement of facilities under section 406 of the Stafford Act; (ii) Eligible, at the Administrator's discretion, in calculating the cost of eligible debris removal work under sections 403(a)(3)(A), 502(a)(5), and 407 of the Stafford Act for a period not to exceed 30 consecutive calendar days, provided the recipient's or subrecipient's permanently employed personnel are dedicated solely to eligible debris removal work for any major disaster or emergency declared by the President on or after October 27, 2012, in response to Hurricane Sandy; and (iii) Not eligible in calculating the cost of other eligible emergency protective measures under sections 403 and 502 of the Stafford Act, except for those costs associated with host state evacuation and sheltering, as established in § 206.202. (3) Administrative and management costs for major disasters and emergencies will be paid in accordance with 44 CFR part 207. (b) [Reserved] [55 FR 2307, Jan. 23, 1990, as amended at 58 FR 47996, Sept. 14, 1993; 63 FR 64426, Nov. 20, 1998; 64 FR 55161, Oct. 12, 1999; 72 FR 57875, Oct. 11, 2007; 77 FR 67290, Nov. 9, 2012; 82 FR 44, Jan. 3, 2017] §§ 206.229-206.249 [Reserved] Subpart I—Public Assistance Insurance Requirements Source: 56 FR 64560, Dec. 11, 1991, unless otherwise noted. § 206.250 General. (a) Sections 311 and 406(d) of the Stafford Act, and the Flood Disaster Protection Act of 1973, Public Law 93-234, set forth certain insurance requirements which apply to disaster assistance provided by FEMA. The requirements of this subpart apply to all assistance provided pursuant to section 406 of the Stafford Act with respect to any major disaster declared by the President after November 23, 1988. (b) Insurance requirements prescribed in this subpart shall apply equally to private nonprofit (PNP) facilities which receive assistance under section 406 of the Act. PNP organizations shall submit the necessary documentation and assurances required by this subpart to the recipient. (c) Actual and anticipated insurance recoveries shall be deducted from otherwise eligible costs, in accordance with this subpart. (d) The full coverage available under the standard flood insurance policy from the National Flood Insurance Program (NFIP) will be subtracted from otherwise eligible costs for a building and its contents within the special flood hazard area in accordance with § 206.252. (e) The insurance requirements of this subpart should not be interpreted as a substitute for various hazard mitigation techniques which may be available to reduce the incidence and severity of future damage. [56 FR 64560, Dec. 11, 1991, as amended at 82 FR 44, Jan. 3, 2017] § 206.251 Definitions. (a) Assistance (b) Building (c) Community (d) National Flood Insurance Program et seq. (e) Special flood hazard area (f) Standard Flood Insurance Policy § 206.252 Insurance requirements for facilities damaged by flood. (a) Where an insurable building damaged by flooding is located in a special flood hazard area identified for more than one year by the Administrator, assistance pursuant to section 406 of the Stafford Act shall be reduced. The amount of the reduction shall be the maximum amount of the insurance proceeds which would have been received had the building and its contents been fully covered by a standard flood insurance policy. (b) The reduction stated above shall not apply to a PNP facility which could not be insured because it was located in a community not participating in the NFIP. However, the provisions of the Flood Disaster Protection Act of 1973 prohibit approval of assistance for the PNP unless the community agrees to participate in the NFIP within six months after the major disaster declaration date, and the required flood insurance is purchased. (c) Prior to approval of a Federal grant for the restoration of a facility and its contents which were damaged by a flood, the recipient shall notify the Regional Administrator of any entitlement to an insurance settlement or recovery. The Regional Administrator shall reduce the eligible costs by the amount of insurance proceeds which the recipient receives. (d) The recipient or subrecipient is required to obtain and maintain flood insurance in the amount of eligible disaster assistance, as a condition of receiving Federal assistance that may be available. This requirement also applies to insurable flood damaged facilities located outside a special flood hazard area when it is reasonably available, adequate, and necessary. However, the Regional Administrator shall not require greater types and amounts of insurance than are certified as reasonable by the State Insurance Commissioner. The requirement to purchase flood insurance is waived when eligible costs for an insurable facility do not exceed $5,000. [56 FR 64560, Dec. 11, 1991, as amended at 82 FR 44, Jan. 3, 2017] § 206.253 Insurance requirements for facilities damaged by disasters other than flood. (a) Prior to approval of a Federal grant for the restoration of a facility and its contents which were damaged by a disaster other than flood, the recipient shall notify the Regional Administrator of any entitlement to insurance settlement or recovery for such facility and its contents. The Regional Administrator shall reduce the eligible costs by the actual amount of insurance proceeds relating to the eligible costs. (b)(1) Assistance under section 406 of the Stafford Act will be approved only on the condition that the recipient obtain and maintain such types and amounts of insurance as are reasonable and necessary to protect against future loss to such property from the types of hazard which caused the major disaster. The extent of insurance to be required will be based on the eligible damage that was incurred to the damaged facility as a result of the major disaster. The Regional Administrator shall not require greater types and extent of insurance than are certified as reasonable by the State Insurance Commissioner. (2) Due to the high cost of insurance, some applicants may request to insure the damaged facilities under a blanket insurance policy covering all their facilities, an insurance pool arrangement, or some combination of these options. Such an arrangement may be accepted for other than flood damages. However, if the same facility is damaged in a similar future disaster, eligible costs will be reduced by the amount of eligible damage sustained on the previous disaster. (c) The Regional Administrator shall notify the recipient of the type and amount of insurance required. The recipient may request that the State Insurance Commissioner review the type and extent of insurance required to protect against future loss to a disaster-damaged facility, the Regional Administrator shall not require greater types and extent of insurance than are certified as reasonable by the State Insurance Commissioner. (d) The requirements of section 311 of the Stafford Act are waived when eligible costs for an insurable facility do not exceed $5,000. The Regional Administrator may establish a higher waiver amount based on hazard mitigation initiatives which reduce the risk of future damages by a disaster similar to the one which resulted in the major disaster declaration which is the basis for the application for disaster assistance. (e) The recipient shall provide assurances that the required insurance coverage will be maintained for the anticipated life of the restorative work or the insured facility, whichever is the lesser. (f) No assistance shall be provided under section 406 of the Stafford Act for any facility for which assistance was provided as a result of a previous major disaster unless all insurance required by FEMA as a condition of the previous assistance has been obtained and maintained. [56 FR 64560, Dec. 11, 1991, as amended at 82 FR 44, Jan. 3, 2017] §§ 206.254-206.339 [Reserved] Subpart J—Coastal Barrier Resources Act Source: 55 FR 2311, Jan. 23, 1990, unless otherwise noted. § 206.340 Purpose of subpart. This subpart implements the Coastal Barrier Resources Act (CBRA) (Pub. L. 97-348) as that statute applies to disaster relief granted to individuals and State and local governments under the Stafford Act. CBRA prohibits new expenditures and new financial assistance within the Coastal Barrier Resources System (CBRS) for all but a few types of activities identified in CBRA. This subpart specifies what actions may and may not be carried out within the CBRS. It establishes procedures for compliance with CBRA in the administration of disaster assistance by FEMA. § 206.341 Policy. It shall be the policy of FEMA to achieve the goals of CBRA in carrying out disaster relief on units of the Coastal Barrier Resources System. It is FEMA's intent that such actions be consistent with the purpose of CBRA to minimize the loss of human life, the wasteful expenditure of Federal revenues, and the damage to fish, wildlife and other natural resources associated with coastal barriers along the Atlantic and Gulf coasts and to consider the means and measures by which the long-term conservation of these fish, wildlife, and other natural resources may be achieved under the Stafford Act. § 206.342 Definitions. Except as otherwise provided in this subpart, the definitions set forth in part 206 of subchapter D are applicable to this subject. (a) Consultation (b) Essential link (c) Existing facility (d) Expansion (e) Facility (f) Financial assistance (g) New financial assistance (h) Start of construction (i) Structure (j) Substantial improvement (1) Before the repair or improvement is started; or (2) If the structure or facility has been damaged and is proposed to be restored, before the damage occurred. If a facility is a link in a larger system, the percentage of damage will be based on the relative cost of repairing the damaged facility to the replacement cost of that portion of the system which is operationally dependent on the facility. The term substantial improvement (k) System unit § 206.343 Scope. (a) The limitations on disaster assistance as set forth in this subpart apply only to FEMA actions taken on a unit of the Coastal Barrier Resources System or any conduit to such unit, including, but not limited to a bridge, causeway, utility, or similar facility. (b) FEMA assistance having a social program orientation which is unrelated to development is not subject to the requirements of these regulations. This assistance includes: (1) Individual and Family Grants that are not for acquisition or construction purposes; (2) Crisis counseling; (3) Disaster Legal services; and (4) Disaster unemployment assistance. § 206.344 Limitations on Federal expenditures. Except as provided in §§ 206.345 and 206.346, no new expenditures or financial assistance may be made available under authority of the Stafford Act for any purpose within the Coastal Barrier Resources System, including but not limited to: (a) Construction, reconstruction, replacement, repair or purchase of any structure, appurtenance, facility or related infrastructure; (b) Construction, reconstruction, replacement, repair or purchase of any road, airport, boat landing facility, or other facility on, or bridge or causeway to, any System unit; and (c) Carrying out of any project to prevent the erosion of, or to otherwise stabilize, any inlet, shoreline, or inshore area, except that such assistance and expenditures may be made available on units designated pursuant to Section 4 on maps numbered S01 through S08 for purposes other than encouraging development and, in all units, in cases where an emergency threatens life, land, and property immediately adjacent to that unit. § 206.345 Exceptions. The following types of disaster assistance actions are exceptions to the prohibitions of § 206.344. (a) After consultation with the Secretary of the Interior, the Regional Administrator may make disaster assistance available within the CBRS for: (1) Replacement, reconstruction, or repair, but not the expansion, of publicly owned or publicly operated roads, structures, or facilities that are essential links in a larger network or system; (2) Repair of any facility necessary for the exploration, extraction, or transportation of energy resources which activity can be carried out only on, in, or adjacent to coastal water areas because the use or facility requires access to the coastal water body; and (3) Restoration of existing channel improvements and related structures, such as jetties, and including the disposal of dredge materials related to such improvements. (b) After consultation with the Secretary of the Interior, the Regional Administrator may make disaster assistance available within the CBRS for the following types of actions, provided such assistance is consistent with the purposes of CBRA; (1) Emergency actions essential to the saving of lives and the protection of property and the public health and safety, if such actions are performed pursuant to sections 402, 403, and 502 of the Stafford Act and are limited to actions that are necessary to alleviate the impacts of the event; (2) Replacement, reconstruction, or repair, but not the expansion, of publicly owned or publicly operated roads, structures, or facilities, except as provided in § 206.347(c)(5); (3) Repair of air and water navigation aids and devices, and of the access thereto; (4) Repair of facilities for scientific research, including but not limited to aeronautical, atmospheric, space, geologic, marine, fish and wildlife and other research, development, and applications; (5) Repair of facilities for the study, management, protection and enhancement of fish and wildlife resources and habitats, including but not limited to, acquisition of fish and wildlife habitats and related lands, stabilization projects for fish and wildlife habitats, and recreational projects; and (6) Repair of nonstructural projects for shoreline stabilization that are designed to mimic, enhance, or restore natural stabilization systems. § 206.346 Applicability to disaster assistance. (a) Emergency assistance. (1) Removal of debris from public property; (2) Emergency protection measures to prevent loss of life, prevent damage to improved property and protect public health and safety; (3) Emergency restoration of essential community services such as electricity, water or sewer; (4) Provision of access to a private residence; (5) Provision of emergency shelter by means of providing emergency repair of utilities, provision of heat in the season requiring heat, or provision of minimal cooking facilities; (6) Relocation of individuals or property out of danger, such as moving a mobile home to an area outside of the CBRS (but disaster assistance funds may not be used to relocate facilities back into the CBRS); (7) Home repairs to private owner-occupied primary residences to make them habitable; (8) Housing eligible families in existing resources in the CBRS; and (9) Mortgage and rental payment assistance. (b) Permanent restoration assistance. (1) Roads and bridges; (2) Drainage structures, dams, levees; (3) Buildings and equipment; (4) Utilities (gas, electricity, water, etc.); and (5) Park and recreational facilities. § 206.347 Requirements. (a) Location determination. (1) Review a proposed action's location to determine if the action is on or connected to the CBRS unit and thereby subject to these regulations. The appropriate Department of Interior map identifying units of the CBRS will be the basis of such determination. The CBRS units are also identified on FEMA Flood Insurance Maps (FIRM's) for the convenience of field personnel. (2) If an action is determined not to be on or connected to a unit of the CBRS, no further requirements of these regulations needs to be met, and the action may be processed under other applicable disaster assistance regulations. (3) If an action is determined to be on or connected to a unit of the CBRS, it is subject to the consultation and consistency requirements of CBRA as prescribed in §§ 206.348 and 206.349. (b) Emergency disaster assistance. (1) FEMA has conducted advance consultation with the Department of the Interior concerning such emergency actions. The result of the consultation is that the Secretary of the Interior through the Assistance Secretary for Fish and Wildlife and Parks has concurred that the emergency work listed in § 206.346(a) is consistent with the purposes of CBRA and may be approved by FEMA without additional consultation. (2) Notification. (i) Identification of the unit in the CBRS; (ii) Description of work approved; (iii) Amount of Federal funding; and (iv) Additional measures required. (c) Permanent restoration assistance. (1) Essential links. (i) No facility may be expanded beyond its predisaster design. (ii) Consultation in accordance with § 206.348 shall be accomplished. (2) Channel improvements. (i) No channel or related structure may be repaired, reconstructed, or replaced unless funds were appropriated for the construction of such channel or structure before October 18, 1982; (ii) Expansion of the facility beyond its predisaster design is not permitted; (iii) Consultation in accordance with § 206.348 shall be accomplished. (3) Energy facilities. (i) No such facility may be repaired, reconstructed or replaced unless such function can be carried out only in, on, or adjacent to a coastal water area because the use or facility requires access to the coastal water body; (ii) Consultation in accordance with § 206.348 shall be accomplished. (4) Special-purpose facilities. (i) Consultation in accordance with § 206.348 shall be accomplished; (ii) No such facility may be repaired, reconstructed, or replaced unless it is otherwise consistent with the purposes of CBRA in accordance with § 206.349. (5) Other public facilities. (i) No such facility may be repaired, reconstructed, or replaced unless it is an “existing facility;” (ii) Expansion of the facility beyond its predisaster design is not permitted; (iii) Consultation in accordance with § 206.348 shall be accomplished; (iv) No such facility may be repaired, reconstructed, or replaced unless it is otherwise consistent with the purposes of CBRA in accordance with § 206.349. (6) Private nonprofit facilities. (i) Consultation in accordance with § 206.348 shall be accomplished. (ii) No such facility may be repaired, reconstructed, or replaced unless it is otherwise consistent with the purposes of CBRA in accordance with § 206.349. (7) Improved project. (8) Alternate project. § 206.348 Consultation. As required by section 6 of the CBRA, the FEMA Regional Administrator will consult with the designated representative of the Department of the Interior (DOI) at the regional level before approving any action involving permanent restoration of a facility or structure on or attached to a unit of the CBRS. (a) The consultation shall be by written memorandum to the DOI representative and shall contain the following: (1) Identification of the unit within the CBRS; (2) Description of the facility and the proposed repair or replacement work; including identification of the facility as an exception under section 6 of CBRA; and full justification of its status as an exception; (3) Amount of proposal Federal funding; (4) Additional mitigation measures required; and (5) A determination of the action's consistency with the purposes of CBRA, if required by these regulations, in accordance with § 206.349. (b) Pursuant to FEMA understanding with DOI, the DOI representative will provide technical information and an opinion whether or not the proposed action meets the criteria for a CBRA exception, and on the consistency of the action with the purposes of CBRA (when such consistency is required). DOI is expected to respond within 12 working days from the date of the FEMA request for consultation. If a response is not received within the time limit, the FEMA Regional Administrator shall contact the DOI representative to determine if the request for consultation was received in a timely manner. If it was not, an appropriate extension for response will be given. Otherwise, he or she may assume DOI concurrence and proceed with approval of the proposed action. (c) For those cases in which the regional DOI representative believes that the proposed action should not be taken and the matter cannot be resolved at the regional level, the FEMA Regional Administrator will submit the issue to the Director, Office of Environmental Planning and Historic Preservation, Mitigation Directorate. In coordination with the Office of Chief Counsel (OCC), consultation will be accomplished at the FEMA National Office with the DOI consultation officer. After this consultation, the Director, Office of Environmental Planning and Historic Preservation, Mitigation Directorate, determines whether or not to approve the proposed action. § 206.349 Consistency determinations. Section 6(a)(6) of CBRA requires that certain actions be consistent with the purposes of that statute if the actions are to be carried out on a unit of the CBRA. The purpose of CBRA, as stated in section 2(b) of that statute, is to minimize the loss of human life, wasteful expenditure of Federal revenues, and the damage to fish, wildlife, and other natural resources associated with the coastal barriers along with Atlantic and Gulf coasts. For those actions where a consistency determination is required, the FEMA Regional Administrator shall evaluate the action according to the following procedures, and the evaluation shall be included in the written request for consultation with DOI. (a) Impact identification. (1) Risks to human life; (2) Risks of damage to the facility being repaired or replaced; (3) Risks of damage to other facilities; (4) Risks of damage to fish, wildlife, and other natural resources; (5) Condition of existing development served by the facility and the degree to which its redevelopment would be encouraged; and (6) Encouragement of new development. (b) Mitigation. (c) Conservation. (d) Finding. §§ 206.350-206.359 [Reserved] Subpart K—Community Disaster Loans Source: 55 FR 2314, Jan. 23, 1990, unless otherwise noted. § 206.360 Purpose. This subpart provides policies and procedures for local governments and State and Federal officials concerning the Community Disaster Loan program under section 417 of the Stafford Act. Sections 206.360 through 206.367 of the subpart do not implement the Community Disaster Loan Act of 2005. (see § 206.370). [70 FR 60446, Oct. 18, 2005] § 206.361 Loan program. (a) General. (b) Amount of loan. fiscal year (c) Interest rate. 1/8 (d) Time limitation. (e) Term of loan. (f) Use of loan funds. (g) Cancellation. (h) Relation to other assistance. [55 FR 2314, Jan. 23, 1990, as amended at 66 FR 22445, May 4, 2001] § 206.362 Responsibilities. (a) The local government shall submit the financial information required by FEMA in the application for a Community Disaster Loan and in the application for loan cancellation, if submitted, and comply with the assurances on the application, the terms and conditions of the Promissory Note, and these regulations. The local government shall send all loan application, loan administration, loan cancellation, and loan settlement correspondence through the GAR and the FEMA Regional Office to the FEMA Assistant Administrator for the Disaster Assistance Directorate. (b) The GAR shall certify on the loan application that the local government can legally assume the proposed indebtedness and that any proceeds will be used and accounted for in compliance with the FEMA-State Agreement for the major disaster. States are encouraged to take appropriate pre-disaster action to resolve any existing State impediments which would preclude a local government from incurring the increased indebtedness associated with a loan in order to avoid protracted delays in processing loan application requests in major disasters or emergencies. (c) The Regional Administrator or designee shall review each loan application or loan cancellation request received from a local government to ensure that it contains the required documents and transmit the application to the Assistant Administrator for the Disaster Assistance Directorate. He/she may submit appropriate recommendations to the Assistant Administrator for the Disaster Assistance Directorate. (d) The Assistant Administrator for the Disaster Assistance Directorate, or a designee, shall execute a Promissory Note with the local government, and the FEMA Finance Center, shall administer the loan until repayment or cancellation is completed and the Promissory Note is discharged. (e) The Assistant Administrator for the Disaster Assistance Directorate or designee shall approve or disapprove each loan request, taking into consideration the information provided in the local government's request and the recommendations of the GAR and the Regional Administrator. The Assistant Administrator for the Disaster Assistance Directorate or designee shall approve or disapprove a request for loan cancellation in accordance with the criteria for cancellation in these regulations. (f) The Chief Financial Officer shall establish and maintain a financial account for each outstanding loan and disburse funds against the Promissory Note. § 206.363 Eligibility criteria. (a) Local government. (2) Criteria considered by FEMA in determining the eligibility of a local government for a Community Disaster Loan include the loss of tax and other revenues as result of a major disaster, a demonstrated need for financial assistance in order to perform its governmental functions, the maintenance of an annual operating budget, and the responsibility to provide essential municipal operating services to the community. Eligibility for other assistance under the Act does not, by itself, establish entitlement to such a loan. (b) Loan eligibility General. (2) Substantial loss of tax and other revenues. (i) Whether the disaster caused a large enough reduction in cash receipts from normal revenue sources, excluding borrowing, which affects significantly and adversely the level and/or categories of essential municipal services provided prior to the disaster; (ii) Whether the disaster caused a revenue loss of over 5 percent of total revenue estimated for the fiscal year in which the disaster occurred or for the succeeding fiscal year; (3) Demonstrated need for financial assistance. (i) Whether there are sufficient funds to meet current fiscal year operating requirements; (ii) Whether there is availability of cash or other liquid assets from the prior fiscal year; (iii) Current financial condition considering projected expenditures for governmental services and availability of other financial resources; (iv) Ability to obtain financial assistance or needed revenue from State and other Federal agencies for direct program expenditures; (v) Debt ratio (relationship of annual receipts to debt service); (vi) Ability to obtain financial assistance or needed revenue from State and other Federal agencies for direct program expenditures; (vii) Displacement of revenue-producing business due to property destruction; (viii) Necessity to reduce or eliminate essential municipal services; and (ix) Danger of municipal insolvency. [55 FR 2314, Jan. 23, 1990, as amended at 66 FR 22445, May 4, 2001] § 206.364 Loan application. (a) Application. (2) The State exercises administrative authority over the local government's application. The State's review should include a determination that the applicant is legally qualified, under State law, to assume the proposed debt, and may include an overall review for accuracy for the submission. The Governor's Authorized Representative may request the Regional Administrator to waive the requirement for a State review if an otherwise eligible applicant is not subject to State administration authority and the State cannot legally participate in the loan application process. (b) Financial requirements. (i) Copies of the local government's financial reports (Revenue and Expense and Balance Sheet) for the 3 fiscal years immediately prior to the fiscal year of the disaster and the applicant's most recent financial statement must accompany the application. The local government's financial reports to be submitted are those annual (or interim) consolidated and/or individual official annual financial presentations for the General Fund and all other funds maintained by the local government. (ii) Each application for a Community Disaster Loan must also include: (A) A statement by the local government identifying each fund (i.e. General Fund, etc.) which is included as its annual Operating budget, and (B) A copy of the pertinent State statutes, ordinance, or regulations which prescribe the local government's system of budgeting, accounting and financial reporting, including a description of each fund account. (2) Operating budget. (3) Operating budget increases. (4) Revenue and assessment information. (5) Estimated disaster-related expense. (c) Federal review. (2) Resubmission of application. (d) Community disaster loan. (i) The amount of projected revenue loss plus the projected unreimbursed disaster-related expenses of a municipal operating character for the fiscal year of the major disaster and the subsequent 3 fiscal years, or (ii) 25 percent of the local government's annual operating budget for the fiscal year in which the disaster occurred. (2) Promissory note. (ii) If the State cannot legally cosign the Promissory Note, the local government must pledge collateral security, acceptable to the Assistant Administrator for the Disaster Assistance Directorate, to cover the principal amount of the Note. The pledge should be in the form of a resolution by the local governing body identifying the collateral security. [55 FR 2314, Jan. 23, 1990, as amended at 74 FR 15351, Apr. 3, 2009] § 206.365 Loan administration. (a) Funding. (2) When each incremental disbursement is requested, the local government shall submit a copy of its most recent financial report (if not submitted previously) for consideration by FEMA in determining whether the level and frequency of periodic payments continue to be justified. The local government shall also provide the latest available data on anticipated and actual tax and other revenue collections. Desired adjustments in the disbursement schedule shall be submitted in writing at least 10 days prior to the proposed disbursement date in order to ensure timely receipt of the funds. A sinking fund should be established to amortize the debt. (b) Financial management. (2) FEMA auditors, State auditors, the GAR, the Regional Administrator, the Assistant Administrator for the Disaster Assistance Directorate, and the Comptroller General of the United States or their duly authorized representatives shall, for the purpose of audits and examination, have access to any books, documents, papers, and records that pertain to Federal funds, equipments, and supplies received under these regulations. (c) Loan servicing. (2) The Disaster Assistance Directorate, will review the loan periodically. The purpose of the reevaluation is to determine whether projected revenue losses, disaster-related expenses, operating budgets, and other factors have changed sufficiently to warrant adjustment of the scheduled disbursement of the loan proceeds. (3) The Disaster Assistance Directorate, shall provide each loan recipient with a loan status report on a quarterly basis. The recipient will notify FEMA of any changes of the responsible municipal official who executed the Promissory Note. (d) Inactive loans. § 206.366 Loan cancellation. (a) Policies. operating budget (2) If the tax and other revenues rates or the tax assessment valuation of property which was not damaged or destroyed by the disaster are reduced during the 3 fiscal years subsequent to the major disaster, the tax and other revenue rates and tax assessment valuation factors applicable to such property in effect at the time of the major disaster shall be used without reduction for purposes of computing revenues received. This may result in decreasing the potential for loan cancellations. (3) If the local government's fiscal year is changed during the “full 3 year period following the disaster” the actual period will be modified so that the required financial data submitted covers an inclusive 36-month period. (4) If the local government transfers funds from its operating funds accounts to its capital funds account, utilizes operating funds for other than routine maintenance purposes, or significantly increases expenditures which are not disaster related, except increases due to inflation, the annual operating budget or operating statement expenditures will be reduced accordingly for purposes of evaluating any request for loan cancellation. (5) It is not the purpose of this loan program to underwrite predisaster budget or actual deficits of the local government. Consequently, such deficits carried forward will reduce any amounts otherwise eligible for loan cancellation. (b) Disaster-related expenses of a municipal operation character. (2) Disaster-related expenses do not include expenditures associated with debt service, any major repairs, rebuilding, replacement or reconstruction of public facilities or other capital projects, intragovernmental services, special assessments, and trust and agency fund operations. Disaster expenses which are eligible for reimbursement under project applications or other Federal programs are not eligible for loan cancellation. (3) Each applicant shall maintain records including documentation necessary to identify expenditures for unreimbursed disaster-related expenses. Examples of such expenses include but are not limited to: (i) Interest paid on money borrowed to pay amounts FEMA does not advance toward completion of approved Project Applications. (ii) Unreimbursed costs to local governments for providing usable sites with utilities for mobile homes used to meet disaster temporary housing requirements. (iii) Unreimbursed costs required for police and fire protection and other community services for mobile home parks established as the result of or for use following a disaster. (iv) The cost to the applicant of flood insurance required under Public Law 93-234, as amended, and other hazard insurance required under section 311, Public Law 93-288, as amended, as a condition of Federal disaster assistance for the disaster under which the loan is authorized. (4) The following expenses are not considered to be disaster-related for Community Disaster Loan purposes: (i) The local government's share for assistance provided under the Act including flexible funding under section 406(c)(1) of the Act. (ii) Improvements related to the repair or restoration of disaster public facilities approved on Project Applications. (iii) Otherwise eligible costs for which no Federal reimbursement is requested as a part of the applicant's disaster response commitment, or cost sharing as specified in the FEMA-State Agreement for the disaster. (iv) Expenses incurred by the local government which are reimbursed on the applicant's project application. (c) Cancellation application. (1) Financial information submitted with the application shall include the following: (i) Annual Operating Budgets for the fiscal year of the disaster and the 3 subsequent fiscal years; (ii) Annual Financial Reports (Revenue and Expense and Balance Sheet) for each of the above fiscal years. Such financial records must include copies of the local government's annual financial reports, including operating statements balance sheets and related consolidated and individual presentations for each fund account. In addition, the local government must include an explanatory statement when figures in the Application for Loan Cancellation form differ from those in the supporting financial reports. (iii) The following additional information concerning annual real estate property taxes pertaining to the community for each of the above fiscal years: (A) The market value of the tax base (dollars); (B) The assessment ratio (percent); (C) The assessed valuation (dollars); (D) The tax levy rate (mils); (E) Taxes levied and collected (dollars). (iv) Audit reports for each of the above fiscal years certifying to the validity of the Operating Statements. The financial statements of the local government shall be examined in accordance with generally accepted auditing standards by independent certified public accountants. The report should not include recommendations concerning loan cancellation or repayment. (v) Other financial information specified in the Application for Loan Cancellation. (2) Narrative justification. (d) Determination. (2) A loan or cancellation of a loan does not reduce or affect other disaster-related grants or other disaster assistance. However, no cancellation may be made that would result in a duplication of benefits to the applicant. (3) The uncancelled portion of the loan must be repaid in accordance with § 206.367. (4) Appeals. [55 FR 2314, Jan. 23, 1990, as amended at 74 FR 15351, Apr. 3, 2009] § 206.367 Loan repayment. (a) Prepayments. (b) Repayment. (1) The term of a loan made under this program is 5 years, unless extended by the Assistant Administrator for the Disaster Assistance Directorate. Interest will accrue on outstanding cash from the actual date of its disbursement by the Treasury. (2) The interest amount due will be computed separately for each Treasury disbursement as follows: I = P × R × T, where I = the amount of simple interest, P = the principal amount disbursed; R = the interest rate of the loan; and, T = the outstanding term in years from the date of disbursement to date of repayment, with periods less than 1 year computed on the basis of 365 days/year. If any portion of the loan is cancelled, the interest amount due will be computed on the remaining principal with the shortest outstanding term. (3) Each payment made against the loan will be applied first to the interest computed to the date of the payment, and then to the principal. Prepayments of scheduled installments, or any portion thereof, may be made at any time and shall be applied to the installments last to become due under the loan and shall not affect the obligation of the borrower to pay the remaining installments. (4) The Assistant Administrator for the Disaster Assistance Directorate may defer payments of principal and interest until FEMA makes its final determination with respect to any Application for Loan Cancellation which the borrower may submit. However, interest will continue to accrue. (5) Any costs incurred by the Federal Government in collecting the note shall be added to the unpaid balance of the loan, bear interest at the same rate as the loan, and be immediately due without demand. (6) In the event of default on this note by the borrower, the FEMA claims collection officer will take action to recover the outstanding principal plus related interest under Federal debt collection authorities, including administrative offset against other Federal funds due the borrower and/or referral to the Department of Justice for judicial enforcement and collection. (c) Additional time. (1) The local government must submit documented evidence that it has applied for the same credit elsewhere and that such credit is not available at a rate equivalent to the current Treasury rate. (2) The principal amount shall be the original uncancelled principal plus related interest. (3) The interest rate shall be the Treasury rate in effect at the time the new Promissory Note is executed but in no case less than the original interest rate. (4) The term of the new Promissory Note shall be for the settlement period requested by the local government but not greater than 10 years from the date the new note is executed. §§ 206.368-206.369 [Reserved] § 206.370 Purpose and scope. (a) Purpose. (b) Scope. [70 FR 60446, Oct. 18, 2005, as amended at 75 FR 2817, Jan. 19, 2010] § 206.371 Loan program. (a) General. (b) Amount of loan. (c) Interest rate. unusual circumstances involving financial hardship 1/8 (d) Time limitation. (e) Term of loan. (f) Use of loan funds. (g) Relation to other assistance. (h) Cancellation. [70 FR 60446, Oct. 18, 2005, as amended at 75 FR 2817, Jan. 19, 2010] § 206.372 Responsibilities. (a) The local government shall submit the financial information required by FEMA in the application for a Community Disaster Loan or other format specified by FEMA and comply with the assurances on the application, the terms and conditions of the Promissory Note, the application for loan cancellation, if submitted, and §§ 206.370 through 206.377. The local government shall send all loan application, loan administration, loan cancellation, and loan settlement correspondence through the Governor's Authorized Representative (GAR) and the FEMA Regional Office to the Director of the Public Assistance Division. (b) The GAR shall certify on the loan application that the local government can legally assume the proposed indebtedness and that any proceeds will be used and accounted for in compliance with the FEMA-State Agreement for the major disaster. States are encouraged to take appropriate pre-disaster action to resolve any existing State impediments which would preclude a local government from incurring the increased indebtedness associated with a loan in order to avoid protracted delays in processing loan application requests resulting from major disasters. (c) The Regional Administrator or designee shall review each loan application or loan cancellation request received from a local government to ensure that it contains the required documents and transmit the application to the Director of the Public Assistance Division. He/she may also submit appropriate recommendations to the Director of the Public Assistance Division. (d) The Director of the Public Assistance Division or a designee, shall execute a Promissory Note with the local government and shall administer the loan until repayment or cancellation is completed and the Promissory Note is discharged. (e) The Director of the Public Assistance Division shall approve or disapprove each loan request, taking into consideration the information provided in the local government's request and the recommendations of the GAR and the Regional Administrator. The Director of the Public Assistance Division shall approve or disapprove a request for loan cancellation in accordance with the criteria for cancellation in these regulations. (f) The FEMA Chief Financial Officer shall establish and maintain a financial account for each outstanding loan and disburse funds against the Promissory Note. [70 FR 60446, Oct. 18, 2005, as amended at 75 FR 2818, Jan. 19, 2010] § 206.373 Eligibility criteria. (a) Local government. (2) Criteria considered by FEMA in determining the eligibility of a local government for a Special Community Disaster Loan include the loss of tax and other revenues as result of a major disaster, a demonstrated need for financial assistance in order to perform essential governmental functions, the maintenance of an annual operating budget, and the responsibility to provide essential services to the community. Eligibility for other assistance under the Stafford Act does not, by itself, establish entitlement to such a loan. (b) Loan eligibility General. (2) Substantial loss of tax and other revenues. (i) Whether the disaster caused a large enough reduction in cash receipts from normal revenue sources, excluding borrowing, which affects significantly and adversely the level and/or categories of essential services provided prior to the disaster; (ii) Whether the disaster caused a revenue loss of over 5 percent of total revenue estimated for the fiscal year in which the disaster occurred or for the succeeding fiscal year. (3) Demonstrated need for financial assistance. (i) Whether there are sufficient funds to meet current fiscal year operating requirements; (ii) Whether there is availability of cash or other liquid assets from the prior fiscal year; (iii) Current financial condition considering projected expenditures for governmental services and availability of other financial resources; (iv) Ability to obtain financial assistance or needed revenue from State and other Federal agencies for direct program expenditures; (v) Debt ratio (relationship of annual receipts to debt service); (vi) Displacement of revenue-producing business due to property destruction; (vii) Necessity to reduce or eliminate essential services; and (viii) Danger of municipal insolvency. [70 FR 60446, Oct. 18, 2005] § 206.374 Loan application. (a) Application. (2) The State exercises administrative authority over the local government's application. The State's review should include a determination that the applicant is legally qualified, under State law, to assume the proposed debt, and may include an overall review for accuracy of the submission. The GAR may request the Regional Administrator to waive the requirement for a State review if an otherwise eligible applicant is not subject to State administration authority and the State cannot legally participate in the loan application process. (b) Financial requirements. (i) Copies of the local government's financial reports (Revenue and Expense and Balance Sheet) for the 3 fiscal years immediately prior to the fiscal year of the disaster and the applicant's most recent financial statement must, unless impracticable, accompany the application. The local government's financial reports to be submitted are those annual (or interim) consolidated and/or individual official annual financial presentations for the General Fund and all other funds maintained by the local government. (ii) Each application for a Special Community Disaster Loan must also include: (A) A statement by the local government identifying each fund (i.e. General Fund, etc.) which is included as its annual Operating budget, and (B) A copy of the pertinent State statutes, ordinances, or regulations which prescribe the local government's system of budgeting, accounting and financial reporting, including a description of each fund account. (2) Operating budget. (3) Operating budget increases. (4) Revenue and assessment information. (5) Estimated disaster-related expense. (c) Federal review. (2) Resubmission of application. (d) Special Community Disaster Loan. (i) The amount of projected revenue loss plus the projected unreimbursed disaster-related expenses of a municipal operating character for the fiscal year of the major disaster and the subsequent 3 fiscal years, or (ii) 25 percent of the local government's annual operating budget for the fiscal year in which the disaster occurred. (2) Promissory note. (ii) If the State cannot legally cosign the Promissory Note, the local government must pledge collateral security, acceptable to the Assistant Administrator for the Disaster Assistance Directorate, to cover the principal amount of the Note. The pledge should be in the form of a resolution by the local governing body identifying the collateral security. (e) Waiver of requirements. [70 FR 60446, Oct. 18, 2005, as amended at 75 FR 2818, Jan. 19, 2010] § 206.375 Loan administration. (a) Funding. (2) When each incremental disbursement is requested, the local government shall submit a copy of its most recent financial report (if not submitted previously) for consideration by FEMA in determining whether the level and frequency of periodic payments continue to be justified. The local government shall also provide the latest available data on anticipated and actual tax and other revenue collections. Desired adjustments in the disbursement schedule shall be submitted in writing at least 10 days prior to the proposed disbursement date in order to ensure timely receipt of the funds. (b) Financial management. (2) FEMA auditors, State auditors, the GAR, the Regional Administrator, the Assistant Administrator for the Disaster Assistance Directorate, the Department of Homeland Security Inspector General, and the Comptroller General of the United States or their duly authorized representatives shall, for the purpose of audits and examination, have access to any books, documents, papers, and records that pertain to Federal funds, equipments, and supplies received under §§ 206.370 through 206.377. (c) Loan servicing. (2) FEMA will review the loan periodically. The purpose of the reevaluation is to determine whether projected revenue losses, disaster-related expenses, operating budgets, and other factors have changed sufficiently to warrant adjustment of the scheduled disbursement of the loan proceeds. (3) FEMA shall provide each loan recipient with a loan status report on a quarterly basis. The recipient will notify FEMA of any changes of the responsible municipal official who executed the Promissory Note. (d) Inactive loans. [70 FR 60446, Oct. 18, 2005] § 206.376 Loan cancellation. (a) FEMA shall cancel repayment of all or part of a Special Community Disaster Loan to the extent that the Director of the Public Assistance Division determines that revenues of the local government during the three-full-fiscal-year period following the disaster are insufficient, as a result of the disaster, to meet the operating budget for the local government, including additional unreimbursed disaster-related expenses of a municipal operating character. (b) Definitions. (1) “Operating budget” means actual revenues and expenditures of the local government as published in the official financial statements of the local government. (2) “Revenue” means any source of income from taxes, fees, fines, and other sources of income, and will be recognized only as they become susceptible to accrual (measurable and available). (3) “Three-full-fiscal-year period following the disaster” means either a 36-month period beginning on September 1, 2005, or the 36 months of the applicant's fiscal year as established before the disaster, at the applicant's discretion. (4) “Operating expenses” means those expenses and expenditures incurred as a result of performing services, including salaries and benefits, contractual services, and commodities. Capital expenditures and debt service payments and capital leases are not considered operating expenses. Under accrual accounting, expenses are recognized as soon as a liability is incurred, regardless of the timing of related cash flows. (c) Revenue Calculation procedures. (2) At the applicant's discretion, the three-full-fiscal-year period following the disaster is either a 36-month period beginning on September 1, 2005 or the 36 months of the applicant's fiscal year as established before the disaster. If the applicant's fiscal year is changed within the 36 months immediately following the disaster, the actual period will be modified so that the required financial data submitted covers an inclusive 36-month period. Should the applicant elect the 36-month period beginning September 1, 2005, FEMA will prorate the revenues and expenses for the partial years based on the applicant's annual financial statements. (3) If the local government transfers funds from its operating funds accounts to its capital funds account, utilizes operating funds for other than routine maintenance purposes, or significantly increases expenditures which are not disaster related, except increases due to inflation, the annual operating budget or operating statement expenditures will be reduced accordingly for purposes of evaluating any request for loan cancellation. (4) Notwithstanding paragraph (c)(3) of this section, the amount of property taxes that are transferred to other funds for Debt Service or Pension Obligations funding will not be excluded from the calculation of the operating budget or from expenditures in calculation of the operating deficit, to the extent that the property tax revenues in the General Fund are less than they were pre-disaster. FEMA will consider the impact of the loss of property tax revenue in Debt Service or Pension Funds (non-operating funds) if all of the following conditions are met: (i) The entity experienced a loss of property tax revenue as a result of the disaster and the assessed value during the three years following the disaster, in the aggregate, is less than the pre-disaster assessed value; (ii) the entity has a property tax cap limitation on the ability to raise property taxes post-disaster; and (iii) the property taxes are levied through the General Operating Fund and transfers for obligations mandated by law are made to fund Debt Service or Pension Obligations which result in the entity experiencing a reduction of property tax revenues in the General Fund. (5) It is not the purpose of this loan program to underwrite pre-disaster budget or actual deficits of the local government. Consequently, such deficits carried forward will reduce any amounts otherwise eligible for loan cancellation. (6) The provisions of this section apply to all Special Community Disaster loans issued from the dates of enactment of Public Law 109-88 and Public Law 109-234. (d) Disaster-related expenses of a municipal operation character. (2) Disaster-related expenses do not include expenditures associated with debt service, any major repairs, rebuilding, replacement or reconstruction of public facilities or other capital projects, intragovernmental services, special assessments, and trust and agency fund operations. Disaster expenses which are eligible for reimbursement under project applications or other Federal programs are not eligible for loan cancellation. (3) Each applicant shall maintain records including documentation necessary to identify expenditures for unreimbursed disaster-related expenses. Examples of such expenses include but are not limited to: (i) Interest paid on money borrowed to pay amounts FEMA does not advance toward completion of approved Project Applications. (ii) Unreimbursed costs to local governments for providing usable sites with utilities for mobile homes used to meet disaster temporary housing requirements. (iii) Unreimbursed costs required for police and fire protection and other community services for mobile home parks established as the result of or for use following a disaster. (iv) The cost to the applicant of flood insurance required under Public Law 93-234, as amended, and other hazard insurance required under section 311, Public Law 93-288, as amended, as a condition of Federal disaster assistance for the disaster under which the loan is authorized. (4) The following expenses are not considered to be disaster-related for Special Community Disaster Loan purposes: (i) The local government's share for assistance provided under the Stafford Act including flexible funding under section 406(c)(1) of the Act (42 U.S.C. 5172). (ii) Improvements related to the repair or restoration of disaster public facilities approved on Project Applications. (iii) Otherwise eligible costs for which no Federal reimbursement is requested as a part of the applicant's disaster response commitment, or cost sharing as specified in the FEMA-State Agreement for the disaster. (iv) Expenses incurred by the local government which are reimbursed on the applicant's Project Application. (e) Cancellation application. (1) Financial information submitted with the application shall include the following: (i) Annual Operating Budgets for the fiscal year of the disaster and the three subsequent fiscal years; (ii) Annual Financial Reports (Revenue and Expense and Balance Sheet) for each of the above fiscal years. Such financial records must include copies of the local government's annual financial reports, including operating statements and balance sheets and related consolidated and individual presentations for each fund account. In addition, the local government must include an explanatory statement when figures in the Application for Loan Cancellation form differ from those in the supporting financial reports. (iii) The following additional information concerning annual real estate property taxes pertaining to the community for each of the above fiscal years: (A) The market value of the tax base (dollars); (B) The assessment ratio (percent); (C) The assessed valuation (dollars); (D) The tax levy rate (mils); (E) Taxes levied and collected (dollars). (iv) Audit reports for each of the above fiscal years certifying to the validity of the Operating Statements. The financial statements of the local government shall be examined in accordance with generally accepted auditing standards by independent certified public accountants. The report should not include recommendations concerning loan cancellation or repayment. (v) Other financial information specified in the Application for Loan Cancellation. (2) Narrative justification. (f) Determination. (2) If, based on a review of the Application for Loan Cancellation and FEMA audit, the Director of the Public Assistance Division determines that all or part of the Special Community Disaster Loan funds should be canceled, the amount of principal canceled and the related interest will be forgiven. The Director of the Public Assistance Division's determination concerning loan cancellation will specify that any uncancelled principal and related interest must be repaid in accordance with the terms and conditions of the Promissory Note, and that, if repayment will constitute a financial hardship, the local government must submit for FEMA review and approval, a repayment schedule for settling the indebtedness on a timely basis. Such repayments must be made to the Treasurer of the United States and be sent to FEMA, Attention: Office of the Chief Financial Officer. (3) A loan or cancellation of a loan does not reduce or affect other disaster-related grants or other disaster assistance. However, no cancellation may be made that would result in a duplication of benefits to the applicant. (4) The uncancelled portion of the loan must be repaid in accordance with § 206.377. (5) Appeals. [75 FR 2818, Jan. 19, 2010] § 206.377 Loan repayment. (a) Prepayments. (b) Repayment. (1) The term of a loan made under this program is 5 years, unless extended by the Assistant Administrator for the Disaster Assistance Directorate. Interest will accrue on outstanding cash from the actual date of its disbursement by FEMA or FEMA's designated Disbursing Agency. (2) The interest amount due will be computed separately for each Treasury disbursement as follows: I = P X R X T, where I = the amount of simple interest, P = the principal amount disbursed; R = the interest rate of the loan; and, T = the outstanding term in years from the date of disbursement to date of repayment, with periods less than 1 year computed on the basis of 365 days/year. If any portion of the loan is cancelled, the interest amount due will be computed on the remaining principal with the shortest outstanding term. (3) Each payment made against the loan will be applied first to the interest computed to the date of the payment, and then to the principal. Prepayments of scheduled installments, or any portion thereof, may be made at any time and shall be applied to the installments last to become due under the loan and shall not affect the obligation of the borrower to pay the remaining installments. (4) The Assistant Administrator for the Disaster Assistance Directorate may defer payments of principal and interest until FEMA makes its final determination with respect to any Application for Loan Cancellation which the borrower may submit. However, interest will continue to accrue. (5) Any costs incurred by the Federal Government in collecting the note shall be added to the unpaid balance of the loan, bear interest at the same rate as the loan, and be immediately due without demand. (6) In the event of default on this note by the borrower, the FEMA claims collection officer will take action to recover the outstanding principal plus related interest under Federal debt collection authorities, including administrative offset against other Federal funds due the borrower and/or referral to the Department of Justice for judicial enforcement and collection. (c) Additional time. (1) The local government must submit documented evidence that it has applied for the same credit elsewhere and that such credit is not available at a rate equivalent to the current Treasury rate. (2) The principal amount shall be the original uncancelled principal plus related interest less any payments made. (3) The interest rate shall be the Treasury rate in effect at the time the new Promissory Note is executed but in no case less than the original interest rate. A reduced rate may not be applied if was it was not previously applied to the loan. (4) The term of the new Promissory Note shall be for the settlement period requested by the local government but not greater than 10 years from the date the new note is executed. [70 FR 60446, Oct. 18, 2005, as amended at 75 FR 2820, Jan. 19, 2010] §§ 206.378-206.389 [Reserved] Subpart L [Reserved] Subpart M—Minimum Standards Source: 67 FR 8852, Feb. 26, 2002, unless otherwise noted. § 206.400 General. (a) As a condition of the receipt of any disaster assistance under the Stafford Act, the applicant shall carry out any repair or construction to be financed with the disaster assistance in accordance with applicable standards of safety, decency, and sanitation and in conformity with applicable codes, specifications and standards. (b) Applicable codes, specifications, and standards shall include any disaster resistant building code that meets the minimum requirements of the National Flood Insurance Program (NFIP) as well as being substantially equivalent to the recommended provisions of the National Earthquake Hazards Reduction Program (NEHRP). In addition, the applicant shall comply with any requirements necessary in regards to Executive Order 11988, Floodplain Management, Executive Order 12699, Seismic Safety of Federal and Federally Assisted or Regulated New Building Construction, and any other applicable Executive orders. (c) In situations where there are no locally applicable standards of safety, decency and sanitation, or where there are no applicable local codes, specifications and standards governing repair or construction activities, or where the Regional Administrator determines that otherwise applicable codes, specifications, and standards are inadequate, then the Regional Administrator may, after consultation with appropriate State and local officials, require the use of nationally applicable codes, specifications, and standards, as well as safe land use and construction practices in the course of repair or construction activities. (d) The mitigation planning process that is mandated by section 322 of the Stafford Act and 44 CFR part 201 can assist State and local governments in determining where codes, specifications, and standards are inadequate, and may need to be upgraded. § 206.401 Local standards. The cost of repairing or constructing a facility in conformity with minimum codes, specifications and standards may be eligible for reimbursement under section 406 of the Stafford Act, as long as such codes, specifications, and standards meet the criteria that are listed at 44 CFR 206.226(d). [74 FR 47482, Sept. 16, 2009] § 206.402 Compliance. A recipient of disaster assistance under the Stafford Act must document for the Regional Administrator its compliance with this subpart following the completion of any repair or construction activities. Subpart N—Hazard Mitigation Grant Program Source: 55 FR 35537, Aug. 30, 1990, unless otherwise noted. § 206.430 General. This subpart provides guidance on the administration of hazard mitigation grants made under the provisions of section 404 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act, 42 U.S.C. 5170c, hereafter Stafford Act, or the Act. [59 FR 24356, May 11, 1994] § 206.431 Definitions. Activity Applicant Enhanced State Mitigation Plan Grant application Grant award Indian Tribal government Local Mitigation Plan Pass-through entity Recipient Standard State Mitigation Plan State Administrative Plan for the Hazard Mitigation Grant Program Subapplicant Subaward Subaward application Subrecipient Tribal Mitigation Plan [86 FR 50676, Sept. 10, 2021] § 206.432 Federal grant assistance. (a) General. (b) Amounts of assistance. (1) Standard percentages. (2) Twenty (20) percent. (3) The estimates of Federal assistance under this paragraph (b) will be based on the Regional Administrator's estimate of all eligible costs, actual grants, and appropriate mission assignments. (c) Cost sharing. [55 FR 35537, Aug. 30, 1990, as amended at 59 FR 24356, May 11, 1994; 67 FR 8853, Feb. 26, 2002; 67 FR 61515, Oct. 1, 2002; 69 FR 55097, Sept. 13, 2004; 72 FR 61750, Oct. 31, 2007; 74 FR 47482, Sept. 16, 2009; 86 FR 50677, Sept. 10, 2021] § 206.433 State responsibilities. (a) Recipient. (b) Priorities. (c) Hazard Mitigation Officer. (d) Administrative plan. [55 FR 35537, Aug. 30, 1990, as amended at 72 FR 61750, Oct. 31, 2007; 86 FR 50677, Sept. 10, 2021] § 206.434 Eligibility. (a) Eligible entities. (1) Applicants—States and Indian Tribal governments; (2) Subapplicants—(i) State agencies and local governments; (ii) Private nonprofit organizations that own or operate a private nonprofit facility as defined in § 206.221(e). A qualified conservation organization as defined at § 80.3(h) of this chapter is the only private nonprofit organization eligible to apply for acquisition or relocation for open space projects; (iii) Indian Tribal governments. (b) Plan requirement. (2) Regional Administrators may grant an exception to this requirement in extraordinary circumstances, such as in a small and impoverished community when justification is provided. In these cases, a plan will be completed within 12 months of the award of the project subaward. If a plan is not provided within this timeframe, the project subaward will be terminated, and any costs incurred after notice of subaward's termination will not be reimbursed by FEMA. (c) Minimum project criteria. (1) Be in conformance with the State Mitigation Plan and Local or Tribal Mitigation Plan approved under 44 CFR part 201; or for Indian Tribal governments acting as recipients, be in conformance with the Tribal Mitigation Plan approved under 44 CFR 201.7; (2) Have a beneficial impact upon the designated disaster area, whether or not located in the designated area; (3) Be in conformance with 44 CFR part 9, Floodplain Management and Protection of Wetlands, and other applicable environmental and historic preservation laws, regulations, Executive Orders, and agency policy; (4) Solve a problem independently or constitute a functional portion of a solution where there is assurance that the project as a whole will be completed. Projects that merely identify or analyze hazards or problems are not eligible; (5) Be cost-effective and substantially reduce the risk of future damage, hardship, loss, or suffering resulting from a major disaster. The recipient must demonstrate this by documenting that the project; (i) Addresses a problem that has been repetitive, or a problem that poses a significant risk to public health and safety if left unsolved, (ii) Will not cost more than the anticipated value of the reduction in both direct damages and subsequent negative impacts to the area if future disasters were to occur, (iii) Has been determined to be the most practical, effective, and environmentally sound alternative after consideration of a range of options, (iv) Contributes, to the extent practicable, to a long-term solution to the problem it is intended to address, (v) Considers long-term changes to the areas and entities it protects, and has manageable future maintenance and modification requirements. (d) Eligible activities Planning. (2) Types of projects. (i) Structural hazard control or protection projects; (ii) Construction activities that will result in protection from hazards; (iii) Retrofitting of facilities; (iv) Property acquisition or relocation, as defined in paragraph (e) of this section; (v) Development of State or local mitigation standards; (vi) Development of comprehensive mitigation programs with implementation as an essential component; (vii) Development or improvement of warning systems. (e) Property acquisitions and relocation requirements. (f) Duplication of programs. (g) Packaging of programs. [55 FR 35537, Aug. 30, 1990, as amended at 59 FR 24356, May 11, 1994; 67 FR 8853, Feb. 26, 2002; 67 FR 61515, Oct. 1, 2002; 69 FR 55097, Sept. 13, 2004; 72 FR 61750, Oct. 31, 2007; 74 FR 47483, Sept. 16, 2009; 81 FR 56534, Aug. 22, 2016; 86 FR 50677, Sept. 10, 2021] § 206.435 Project identification and selection criteria. (a) Identification. (b) Selection. (1) Measures that best fit within an overall plan for development and/or hazard mitigation in the community, disaster area, or State; (2) Measures that, if not taken, will have a severe detrimental impact on the applicant, such as potential loss of life, loss of essential services, damage to critical facilities, or economic hardship on the community; (3) Measures that have the greatest potential impact on reducing future disaster losses; (c) Other considerations. [55 FR 35537, Aug. 30, 1990, as amended at 66 FR 8853, Feb. 26, 2002; 68 FR 63738, Nov. 10, 2003; 86 FR 50678, Sept. 10, 2021] § 206.436 Application procedures. (a) General. (b) Governor's Authorized Representative. (c) Hazard mitigation application. (1) Name of the subrecipient, if any; (2) State or local contact for the measure; (3) Location of the project; (4) Description of the measure; (5) Cost estimate for the measure; (6) Analysis of the measure's cost-effectiveness and substantial risk reduction, consistent with § 206.434(c); (7) Work schedule; (8) Justification for selection; (9) Alternatives considered; (10) Environmental information consistent with 44 CFR part 9, Floodplain Management and Protection of Wetlands, and other applicable environmental and historic preservation laws, regulations, Executive Orders, and agency policy. (d) Application submission time limit. (e) Extensions. (1) The State may request the Regional Administrator to extend the application time limit by 30 to 120 day increments, not to exceed a total of 240 days. The applicant must include a justification in its request. (2) FEMA will only consider requests for extensions beyond 240 days for extenuating circumstances outside of the applicant's control. Such requests must be submitted to the Regional Administrator and must include justification. The Regional Administrator, in coordination with FEMA's Assistant Administrator for the Mitigation Directorate, may extend the application time limit for a reasonable amount of time based upon the extenuating circumstances. (f) Reopening of application period. (1) Recalculation of assistance. (2) Appeal. (g) FEMA approval. (h) Indian Tribal recipients. [67 FR 8853, Feb. 26, 2002, as amended at 79 FR 76086, Dec. 19, 2014; 81 FR 56534, Aug. 22, 2016; 86 FR 50678, Sept. 10, 2021; 89 FR 66253, Aug. 15, 2024] § 206.437 State administrative plan. (a) General. (b) Minimum criteria. (1) Designation of the State agency will have responsibility for program administration; (2) Identification of the State Hazard Mitigation Officer responsible for all matters related to the Hazard Mitigation Grant Program. (3) Determination of staffing requirements and sources of staff necessary for administration of the program; (4) Establishment of procedures to: (i) Identify and notify potential applicants (subrecipients) of the availability of the program; (ii) Ensure that potential applicants are provided information on the application process, program eligibility and key deadlines; (iii) Determine applicant eligibility; (iv) Conduct environmental and floodplain management reviews; (v) Establish priorities for selection of mitigation projects; (vi) Process requests for advances of funds and reimbursement; (vii) Monitor and evaluate the progress and completion of the selected projects; (viii) Review and approve cost overruns; (ix) Process appeals; (x) Provide technical assistance as required to subrecipient(s); (xi) Comply with the administrative and audit requirements of 2 CFR parts 200 and 3002 and 44 CFR part 206. (xii) Provide quarterly progress reports to the Regional Administrator on approved projects. (xiii) Determine the percentage or amount of pass-through funds for management costs provided under 44 CFR part 207 that the recipient will make available to subrecipients, and the basis, criteria, or formula for determining the subrecipient percentage or amount. (c) Format. (d) Approval. [55 FR 35537, Aug. 30, 1990, as amended at 55 FR 52172, Dec. 20, 1990; 72 FR 57875, Oct. 11, 2007; 74 FR 15352, Apr. 3, 2009; 79 FR 76086, Dec. 19, 2014; 86 FR 50678, Sept. 10, 2021] § 206.438 Project management. (a) General. (b) Cost overruns. (c) Progress reports. (d) Payment of claims. (e) Audit requirements. [86 FR 50678, Sept. 10, 2021] § 206.439 Allowable costs. (a) General requirements for determining allowable costs are established in 2 CFR part 200, Cost Principles. Exceptions to those requirements as allowed in 2 CFR 200.101 and 2 CFR 200.102 are explained in paragraph (b) of this section. (b) Administrative and management costs for major disasters will be paid in accordance with 44 CFR part 207. (c) Pre-award costs. [72 FR 57875, Oct. 11, 2007, as amended at 72 FR 61750, Oct. 31, 2007; 79 FR 76086, Dec. 19, 2014; 86 FR 50679, Sept. 10, 2021] § 206.440 Appeals. An eligible applicant, subrecipient, or recipient may appeal any determination previously made related to an application for or the provision of Federal assistance according to the procedures in this section. (a) Format and content. (b) Levels of appeal. (2) The Assistant Administrator for the Mitigation Directorate will consider appeals of the Regional Administrator's decision on any first appeal under paragraph (b)(1) of this section. (c) Time limits. (2) The recipient will review and forward appeals from an applicant or subrecipient, with a written recommendation, to the Regional Administrator within 60 days of receipt. (3) Within 90 days following receipt of an appeal, the Regional Administrator (for first appeals) or Assistant Administrator for the Mitigation Directorate (for second appeals) will notify the recipient in writing of the disposition of the appeal or of the need for additional information. A request by the Regional Administrator or Assistant Administrator for the Mitigation Directorate for additional information will include a date by which the information must be provided. Within 90 days following the receipt of the requested additional information or following expiration of the period for providing the information, the Regional Administrator or Assistant Administrator for the Mitigation Directorate will notify the recipient in writing of the disposition of the appeal. If the decision is to grant the appeal, the Regional Administrator will take appropriate implementing action. (d) Technical advice. (e) Transition. (2) Appeals pending from a decision of an Assistant Administrator for the Mitigation Directorate before May 8, 1998 may be appealed to the Administrator in accordance with 44 CFR 206.440 as it existed before May 8, 1998. (3) The decision of the FEMA official at the next higher appeal level will be the final administrative decision of FEMA. [63 FR 17111, Apr. 8, 1998, as amended at 86 FR 50679, Sept. 10, 2021]

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