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pdfOctober 1999
Hazard
Mitigation
Grant
Program
Desk
Reference
Overview
Purpose of
This Desk
Reference
The purpose of this Desk Reference is to:
"" Provide comprehensive information about FEMA’s Hazard Mitigation Grant
Program (HMGP);
"" Increase awareness of the HMGP as an integral part of statewide hazard
mitigation efforts; and
"" Encourage deeper commitments and increased responsibilities on the part of all
States and communities to reduce damage and losses from natural disasters.
This Desk Reference is organized to simplify program information and assist the
reader with practical guidance for successful participation in the program.
Lists of program-related acronyms and definitions are included, along with appendices
that amplify selected aspects of the HMGP.
Organization
of This
Manual
This Desk Reference is organized into 14 sections, each of which presents a major
HMGP subject area.
In each section, information is presented on the right side of the page. Headings on
the left side of the page identify the topics and subtopics covered in the section and
serve as visual bookmarks.
In several sections, job aids containing supplemental material are provided. The job
aids for each section can be found at the end of the section.
At the front of each section, there is a detailed table of contents to help you locate
specific information.
Please contact your Regional Office for assistance in locating the Code of Federal
Regulations and OMB circulars referenced throughout the text.
The table that follows describes each section of the document.
Section 1:
Introduction
to the HMGP
This section presents the intent and goals of the HMGP, and eligible program
applicants.
Section 2:
Building
State
Capability:
Before the
Disaster
This section positions the HMGP among the State’s ongoing mitigation activities and
examines the State Hazard Mitigation Plan and Administrative Plan.
Hazard Mitigation Grant Program Desk Reference
Page v
Overview
Section 3:
After a
Disaster
Occurs
Section 4:
Hazard
Mitigation
Grant
Program
Availability
Section 5:
Identifying
and
Selecting
Grant
Projects
Section 6:
The
Application
Process
This section presents the sequence of events that should follow a Presidential
declaration of disaster and lead to program participation.
This section describes the manner in which potential HMGP funds are identified,
requested, and obligated.
This section discusses strategies for identifying potential projects and criteria for
selecting projects.
This section describes the format, timelines, and review procedures for HMGP
applications.
Section 7:
Project
Eligibility
This section provides examples of eligible and ineligible projects and presents the five
minimum criteria for eligibility.
Section 8:
Environmental
Review
This section provides compliance guidance for environmental, historical, and
archaeological consideration of proposed projects.
Section 9:
CostEffectiveness
This section examines the necessity and methodology for benefit-cost analysis.
Page vi
Hazard Mitigation Grant Program Desk Reference
Overview
Section 10:
Appeals
This section describes the process through which an applicant may appeal a project
decision.
Section 11:
Project
Implementation Requirements
This section describes the community’s and State’s responsibilities and obligations that
follow the grant award.
Section 12:
Allowable
Project Costs
This section examines various project costs and distinguishes those that are allowable
from those that are not.
Section 13:
Administrative/Grants
Management
This section reviews administrative and grants management methods.
Section 14:
Closeouts
and Audits
This section reviews closeout procedures for individual projects and the program.
Section 15:
Acronyms
This section defines the most common acronyms used in the discussion of the HMGP.
Section 16:
Definitions
This section defines the most common terms used in the discussion of the HMGP.
Using This
Desk
Reference
Mitigation personnel should use this manual to help them carry out their HMGP-related
responsibilities in a consistent and standardized manner.
To locate information, first go to the main table of contents to determine which section
of the manual to consult. Next, refer to the detailed table of contents within each
section to locate more specific information.
Hazard Mitigation Grant Program Desk Reference
Page vii
Thank you for your interest in the Hazard Mitigation Grant Program Desk Reference.
This document is an interim version. If you have any comments about this document,
please contact the:
Federal Emergency Management Agency
Mitigation Directorate
Program Support Division
500 C Street S.W., Room 417
Washington, DC 20472
Table of Contents
Overview.............................................................................................................................. i
Section 1: Introduction to the Hazard Mitigation Grant Program
The Hazard Mitigation Grant Program: An Evolving Resource ..............................................1-1
Intent .................................................................................................................................1-1
Goals .................................................................................................................................1-2
Three Types of Eligible Applicants .......................................................................................1-2
Section 2: Building State Capability: Before the Disaster
Integration of Hazard Mitigation Planning .............................................................................2-1
Submission/Approval of the State Hazard Mitigation Plan ......................................................2-2
Submission/Approval Deadlines for the Administrative Plan...................................................2-2
Contents of the State Administrative Plan .............................................................................2-2
Developing a Statewide Commitment to Hazard Mitigation ....................................................2-4
Job Aid 2-1: Checklist for Preparing the State Administrative Plan ........................................2-7
Section 3: After a Disaster Occurs
The Declaration Process .....................................................................................................3-1
Letter of Intent ....................................................................................................................3-1
State Responsibilities ..........................................................................................................3-1
Applicant/Subgrantee Responsibilities ..................................................................................3-3
Federal Responsibilities ......................................................................................................3-4
Native American Tribe Grantee Authority..............................................................................3-4
Job Aid 3-1: Sample Letter of Intent ....................................................................................3-5
Job Aid 3-2: State Responsibilities for HMGP ......................................................................3-6
Job Aid 3-3: Authorities for State Activities Under the HMGP ................................................3-8
Section 4: Hazard Mitigation Grant Program Availability
Available Assistance...........................................................................................................4-1
How the Award Limit Is Calculated .......................................................................................4-1
Timeframes for Lock-In of HMGP Ceiling..............................................................................4-1
Application/Submission Timeline..........................................................................................4-2
Timeframe for FEMA To Obligate Program Funds .................................................................4-2
Section 5: Identifying and Selecting Grant Projects
Identifying Grant Projects ....................................................................................................5-1
Setting State Priorities .........................................................................................................5-1
Pre-Disaster Funding To Identify Projects.............................................................................5-1
Early Implementation of Mitigation Strategies .......................................................................5-1
Identify and Notify Potential Applicants.................................................................................5-1
Notification Opportunities ....................................................................................................5-2
Notification Methods ...........................................................................................................5-2
Disseminate Full Information ...............................................................................................5-2
Selection Criteria ................................................................................................................5-3
Job Aid 5-1: Applicants Briefing Invitation Letter...................................................................5-4
Job Aid 5-2: Agenda for 1-Hour Presentation .......................................................................5-5
Job Aid 5-3: Sample Pre-Application Form ..........................................................................5-6
Hazard Mitigation Grant Program Desk Reference
Page i
Table of Contents
Section 6: The Application Process
Overview of Process ...........................................................................................................6-1
Timeframes ........................................................................................................................6-1
Application Timeframe ........................................................................................................6-2
Local Application to State....................................................................................................6-2
The Project Application .......................................................................................................6-2
State Application to FEMA...................................................................................................6-2
Managing States.................................................................................................................6-3
NEMIS Application ..............................................................................................................6-4
Job Aid 6-1: Hazard Mitigation Grant Program Application Process .......................................6-5
Job Aid 6-2: State and Federal Activities Required Through Submission of State
HMGP Applications ........................................................................................6-6
Job Aid 6-3: SF 424, Application for Federal Assistance.......................................................6-7
Job Aid 6-4: Project Application Checklist............................................................................6-8
Job Aid 6-5: State Review Results ....................................................................................6-12
Job Aid 6-6: FEMA Disaster Grant Agreement Articles, Hazard Mitigation Grant Program ....6-13
Job Aid 6-7: Creating the Application in NEMIS ..................................................................6-16
Section 7: Project Eligibility
Eligible Types of Projects ....................................................................................................7-1
NEMIS Project Codes .........................................................................................................7-1
Ineligible Projects ...............................................................................................................7-1
Five Minimum Criteria for Project Eligibility ...........................................................................7-2
Other Eligibility Factors .......................................................................................................7-4
The 5% Initiative .................................................................................................................7-5
Eligibility of Phased Projects................................................................................................7-7
Job Aid 7-1: NEMIS Project Codes....................................................................................7-10
Section 8: Environmental Review
Compliance With Environmental Laws and Regulations and Executive Orders .......................8-1
Roles, Responsibilities, and Information Collection ...............................................................8-2
Information Collection .........................................................................................................8-2
Categorical Exclusions ........................................................................................................8-3
NEPA Compliance Exception ..............................................................................................8-4
Review Under Other Environmental Laws and Executive Orders ...........................................8-5
Job Aid 8-1: FEMA’s NEPA Environmental Review Process .................................................8-8
Job Aid 8-2: Environmental Considerations and Review Checklist.........................................8-9
Job Aid 8-3: List of CATEXes and Required Documentation ...............................................8-13
Section 9: Cost-Effectiveness
Cost-Effective Projects........................................................................................................9-1
Who Does the Analysis? .....................................................................................................9-1
Guidance on Cost-Effectiveness Review ..............................................................................9-1
What “Cost-Effective” Means ...............................................................................................9-1
Guidance and Discount Rates for Benefit-Cost Analysis of Federal Programs.........................9-1
Thorough Assessment ........................................................................................................9-2
How FEMA and States Determine Cost-Effectiveness...........................................................9-3
Benefits and Costs..............................................................................................................9-4
Learning More About Benefit-Cost Analysis..........................................................................9-6
Job Aid 9-1: Key Data Needed for Analyzing Project Applications .........................................9-7
Page ii
Hazard Mitigation Grant Program Desk Reference
Table of Contents
Section 10: Appeals
Appeal Format ..................................................................................................................10-1
Two Levels of Appeal........................................................................................................10-1
Technical Evaluation .........................................................................................................10-1
Appeal Timeframes ...........................................................................................................10-1
Decision Notification .........................................................................................................10-1
Section 11: Project Implementation Requirements
The State as Manager.......................................................................................................11-1
Nondiscrimination of HMGP Grants....................................................................................11-1
What Title VI and Section 308 Do ......................................................................................11-1
Maintenance of the Project ................................................................................................11-3
Environmental Mitigation Implementation and Costs ...........................................................11-3
Hazardous Materials .........................................................................................................11-3
Compliance With Companion Program Criteria ...................................................................11-4
Insurance Requirements ...................................................................................................11-4
Mapping Implications ........................................................................................................11-4
Standards and Codes .......................................................................................................11-5
Standard Wage Rate Requirements...................................................................................11-5
Duplication of Benefits ......................................................................................................11-5
Conditions for Post-Disaster Code Enforcement Projects ....................................................11-8
Acquisition/Relocations ................................................................................................... 11-10
Property Appraisal and Negotiation.................................................................................. 11-11
Treatment of Agricultural Properties ................................................................................. 11-14
Managing Purchased Land as Open Spaces .................................................................... 11-17
Applicability of the URA ................................................................................................... 11-21
Job Aid 11-1: Hazardous Materials – Property Survey ...................................................... 11-25
Job Aid 11-2: Exhibit A – Attached to Warranty Deed ....................................................... 11-28
Job Aid 11-3: Exhibit B – Conservation Easement ............................................................ 11-31
Job Aid 11-4: Statement of Voluntary Participation........................................................... 11-35
Job Aid 11-5: Sample Relocation Notice.......................................................................... 11-36
Job Aid 11-6: Sample Log for Receipt of Relocation Notice .............................................. 11-39
Job Aid 11-7: FEMA Form 90-69D, Declaration of Applicant ............................................. 11-40
Section 12: Allowable Project Costs
General Cost Criteria for Federal Awards ...........................................................................12-1
Different Governing Principles ...........................................................................................12-1
Reasonable Costs ............................................................................................................12-2
Unallowable Costs ............................................................................................................12-2
Project-Specific Allowable Costs........................................................................................12-3
Costs for Post-Disaster Code Enforcement .........................................................................12-3
Environmental Mitigation Costs..........................................................................................12-3
Acquisition/Relocation Project Costs ..................................................................................12-4
Job Aid 12-1: Allowable Costs Under OMB Circular A-87 ...................................................12-5
Job Aid 12-2: Sample Project Cost Breakdowns ................................................................12-9
Hazard Mitigation Grant Program Desk Reference
Page iii
Table of Contents
Section 13: Administrative/Grants Management
State Responsibilities ........................................................................................................13-1
Management Costs and Administrative Costs.....................................................................13-1
Program Income...............................................................................................................13-6
Cost-Share and Matching ..................................................................................................13-6
The 5% Initiative and Grants Management .........................................................................13-9
Insular Areas ....................................................................................................................13-9
Compliance With the Administrative Requirements of CFR 44 Parts 13 and 206 ................. 13-10
Processing of Requests for Advances of Funds and Reimbursements ............................... 13-10
Quarterly Reports ........................................................................................................... 13-11
Recordkeeping ............................................................................................................... 13-11
Cost Overruns and Underruns ......................................................................................... 13-11
Scope Changes .............................................................................................................. 13-12
Job Aid 13-1: Quarterly Progress Report Checklist........................................................... 13-13
Job Aid 13-2: Sample Quarterly Progress Report ............................................................. 13-14
Job Aid 13-3: Standard Form 269, Financial Status Report (Long Form)............................ 13-15
Job Aid 13-4: Standard Form 269A, Financial Status Report (Short Form) ......................... 13-17
Job Aid 13-5: FEMA Form 20-10, Financial Status Report ................................................ 13-19
Job Aid 13-6: NEMIS Status Reports............................................................................... 13-23
Job Aid 13-7: FEMA Form 20-19, Report of Unobligated Balance of Federal
Funds, Draw Downs, and Undrawn Funds ................................................. 13-28
Section 14: Closeouts and Audits
Closeout ..........................................................................................................................14-1
Program Closeout .............................................................................................................14-2
Closeout Steps for State Grantee ......................................................................................14-3
Closeout Steps for FEMA Regional Level ...........................................................................14-3
Audits ..............................................................................................................................14-4
Job Aid 14-1: SF 270, Final Request for Payment ..............................................................14-5
Job Aid 14-2: FEMA Form 20-18, Report of Government Property ......................................14-7
Job Aid 14-3: Program Closeout: State Grantees ............................................................ 14-11
Job Aid 14-4: Program Closeout: FEMA ......................................................................... 14-12
Job Aid 14-5: Checklist for Project Closeout Report ......................................................... 14-14
Section 15: Acronyms
Acronyms.........................................................................................................................15-1
Section 16: Definitions
Definitions ........................................................................................................................16-1
Page iv
Hazard Mitigation Grant Program Desk Reference
Section 1: Introduction to the
Hazard Mitigation Grant Program
Section 1: Introduction to the Hazard Mitigation Grant Program
Contents
The Hazard Mitigation Grant Program: An Evolving Resource ........................................................... 1-1
One Tool in the State’s Ongoing Mitigation Program ................................................................. 1-1
Intent .............................................................................................................................................. 1-1
Goals .............................................................................................................................................. 1-2
Three Types of Eligible Applicants .................................................................................................... 1-2
State and Local Governments.................................................................................................. 1-2
Private Non-Profit Organizations or Institutions ......................................................................... 1-2
Native American Tribes or Alaskan Native Villages ................................................................... 1-2
Hazard Mitigation Grant Program Desk Reference
Section 1: Introduction to the Hazard Mitigation Grant Program
The Hazard
Mitigation
Grant
Program: An
Evolving
Resource
One Tool in
the State’s
Ongoing
Mitigation
Program
FEMA’s Hazard Mitigation Grant Program is a powerful resource in the combined effort
by Federal, State, and local government, as well as private industry and homeowners,
to end the cycle of repetitive disaster damage.
The Robert T. Stafford Disaster Relief and Emergency Assistance Act was passed on
November 23, 1988, amending Public Law 93-288, the Disaster Relief Act of 1974.
The Stafford Act included Section 404, which established the Hazard Mitigation Grant
Program. In 1993, the Hazard Mitigation and Relocation Act amended Section 404 to
increase the amount of HMGP funds available and the cost-share to 75 percent
Federal. This amendment also encouraged the use of property acquisition and other
non-structural flood mitigation measures.
In an effort to streamline HMGP delivery, FEMA encourages States to develop their
mitigation programs before disaster strikes. States are adopting a more active HMGP
management role. Increased capabilities may include:
"" Conducting comprehensive all-hazard mitigation planning prior to disaster events;
"" Providing applicants technical assistance on sound mitigation techniques and
hazard mitigation policy and procedures;
"" Coordinating mitigation programs through interagency teams or councils.
"" Conducting benefit-cost analyses; and
"" Preparing National Environmental Policy Act reviews for FEMA approval.
States that integrate the HMGP with their frequently updated State Administrative and
Hazard Mitigation Plans will create cohesive and effective approaches to loss
reduction. This type of coordinated approach minimizes the distinction between “predisaster” and “post-disaster” time periods, and instead produces an ongoing mitigation
effort.
Intent
Hazard mitigation is any sustained action taken to reduce or eliminate long-term risk to
people and property from natural hazards and their effects.
A key purpose of the HMGP is to ensure that the opportunity to take critical mitigation
measures to protect life and property from future disasters is not lost during the
recovery and reconstruction process following a disaster.
Program grant funds available under Section 404 of the Stafford Act provide States
with the incentive and capability to implement mitigation measures that previously may
have been infeasible.
Hazard Mitigation Grant Program Desk Reference
Page 1-1
Section 1: Introduction to the Hazard Mitigation Grant Program
Goals
Three Types
of Eligible
Applicants
The goals of the HMGP are twofold:
The State is responsible for soliciting applications from eligible applicants, assisting in
the preparation and prioritization of those applications, and managing the approved
projects. All interested applicants, with the exception of Native American tribes, must
apply to the State.
The following types of entities are eligible to apply to the State for HMGP funding:
"" State and local governments;
"" Private non-profit organizations or institutions; and
"" Native American tribes and Alaskan Native villages.
State and
Local
Governments
The State Hazard Mitigation Officer or Mitigation Team should contact affected local
governments and pertinent State agencies to solicit potential applications. Agencies
involved in natural resources, geologic hazards, floodplain management, parks and
recreation, infrastructure regulation or construction, and community development may
have projects that help support hazard mitigation objectives.
Private NonProfit
Organizations
or Institutions
Private non-profit organizations or institutions that own or operate a
private non-profit facility as defined in 44 CFR 206.221(e) are eligible.
Each non-profit applicant must provide either:
44 CFR
206.221(e)
"" 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, as amended; or
"" State certification, under State law, of non-profit status.
FEMA encourages local governments to partner with non-profit conservation and land
trust organizations for open-space property acquisition projects.
Native
American
Tribes or
Alaskan
Native
Villages
Tribes or authorized tribal organizations and Alaskan Native villages or organizations
are eligible to apply for the HMGP.
Many States act as grantee on behalf of Native American tribes, providing technical
assistance and administrative coordination. However, if the tribe prefers, it may apply
directly to FEMA.
Alaskan Native corporations with ownership vested in private individuals are not
eligible to apply.
Page 1-2
Hazard Mitigation Grant Program Desk Reference
Section 2: Building State Capability:
Before the Disaster
Section 2: Building State Capability: Before the Disaster
Contents
Integration of Hazard Mitigation Planning .......................................................................................... 2-1
State Hazard Mitigation Plan: The Design Mechanism.............................................................. 2-1
State Administrative Plan: The Implementation Mechanism ...................................................... 2-1
Hazard Mitigation Grant Program: The Funding Mechanism ..................................................... 2-1
Submission/Approval of the State Hazard Mitigation Plan ................................................................... 2-2
Submission/Approval Deadlines for the Administrative Plan................................................................ 2-2
Using NEMIS .......................................................................................................................... 2-2
Contents of the State Administrative Plan .......................................................................................... 2-2
Designation of the Grantee Agency.......................................................................................... 2-3
Identification of the State Hazard Mitigation Officer ................................................................... 2-3
Identification of Staffing Requirements and Resources .............................................................. 2-3
Procedures To Guide Implementation Activities ........................................................................ 2-4
Developing a Statewide Commitment to Hazard Mitigation ................................................................. 2-4
State Hazard Mitigation Team: A Valuable Resource ............................................................... 2-5
Role of the State Hazard Mitigation Team ................................................................................ 2-6
Job Aid 2-1: Checklist for Preparing the State Administrative Plan ..................................................... 2-7
Hazard Mitigation Grant Program Desk Reference
Section 2: Building State Capability: Before the Disaster
Integration
of Hazard
Mitigation
Planning
State Hazard
Mitigation
Plan: The
Design
Mechanism
When a State views the State Hazard Mitigation Plan, the State Administrative Plan,
and the Hazard Mitigation Grant Program as three elements of a whole, the
mechanisms are present to design, implement, and fund the statewide vision of
damage reduction.
The Stafford Act, Section 409, requires each State to conduct an evaluation of existing
natural hazards statewide, and the risks that they pose. This evaluation, known as the
State Hazard Mitigation Plan, helps to identify beneficial hazard mitigation measures.
States use the hazard mitigation planning process to set short- and long-range
mitigation goals and objectives. The plan links ongoing State activities such as
implementation of State-FEMA Performance Partnership Agreements and
development of disaster-resistant communities. After a disaster declaration,
heightened interest and available funding sources create increased opportunities for
mitigation.
The State Hazard Mitigation Plan may take any form including a component of a
comprehensive State mitigation strategy. The Hazard Mitigation Plan may include a
specific list of mitigation measures that the State would like to implement. If kept
current, the Hazard Mitigation Plan will capture evolving risks to State populations and
resources, prioritize types of mitigation measures, and serve as a ready-made wish list
when HMGP or other (State, local, private, Federal, etc.) funds are available.
State
Administrative
Plan: The
Implementation
Mechanism
The State Administrative Plan is a procedural guide that details how the State will
administer the HMGP. States must have a current Administrative Plan approved by
the FEMA Regional Director before receiving HMGP funds.
Hazard
Mitigation
Grant
Program: The
Funding
Mechanism
The HMGP may provide a State with an amount equal or up to 15 percent of the total
disaster grants awarded by FEMA after a major disaster declaration to fund measures
identified in the State’s Hazard Mitigation Plan. These grants may fund up to 75
percent of eligible mitigation measures. The State or local government provides the
remaining 25 percent cost-share from non-Federal sources.
"
The Administrative Plan may also take any form including a chapter within a
comprehensive State mitigation program strategy.
TIP: See Section 13 for cost-share details.
Hazard Mitigation Grant Program Desk Reference
Page 2-1
Section 2: Building State Capability: Before the Disaster
Submission/
Approval of
the State
Hazard
Mitigation
Plan
Ideally, States will have their Hazard Mitigation Plans up to date when disaster strikes.
If not, the State will forward the Hazard Mitigation Plan or update to FEMA within 180
days of the date of the disaster declaration. With written justification from the State,
extensions up to 365 days after the disaster declaration may be granted. Because
HMGP funding is linked to the plan, early completion can streamline HMGP delivery.
FEMA’s Regional Director will, in writing, acknowledge receipt of the plan,
indicate whether the plan is approved, and detail any suggested
improvements.
Details for this requirement are in 44 CFR 206 Subpart M.
Submission/
Approval
Deadlines for
the Administrative Plan
44 CFR 206
Subpart M
The State may forward an administrative plan to the Regional Director at any time prior
to a disaster declaration or immediately after and request approval. Because an
approved administrative plan is a prerequisite of receiving HMGP funds, it is
expeditious for the State to keep the plan updated. Independent of the frequency of
disaster declarations, each State should review and update the plan at least annually.
Annual updates are an eligible activity under FEMA’s annual cooperative agreement
with the State.
The State may update the State Administrative Plan after each major disaster
declaration. Updates, amendments, or plan revisions should be submitted to the
FEMA Regional Director for review. However, if the Regional Director has approved
the plan or updates within the previous 12 months, no update is required.
If the State determines that its current plan does not require changes, the State should
notify FEMA within 90 days after the disaster declaration.
Using NEMIS
Contents of
the State
Administrative Plan
The State Administrative Plan module in the National Emergency Management
Information System (NEMIS) stores and provides subsequent access to State
Administrative Plans received by FEMA. The system is a tool for administrative plan
review. This includes tracking of the approval date of each received plan.
The Administrative Plan describes how the State will manage the HMGP in the event
of a disaster. At a minimum, the plan will:
"" Designate the State agency that will act as grantee;
"" Identify the State Hazard Mitigation Officer;
"" Identify staffing requirements and resources; and
"" Establish procedures to guide certain administrative activities.
The required contents are listed in 44 CFR 206.437.
44 CFR 206.437
The following paragraphs will explain these components in greater detail.
Job Aid 2-1, Checklist for Preparing the State Administrative Plan,
appears at the end of this section.
Page 2-2
Job Aid 2-1
Hazard Mitigation Grant Program Desk Reference
Section 2: Building State Capability: Before the Disaster
Designation of
the Grantee
Agency
Typically, the agency designated to act as grantee manages the State responsibilities
for Federal and State disaster assistance and, in many States, is responsible for
meeting the hazard mitigation planning requirement. While a single agency may
administer the funding, the Governor may establish an interagency team to manage
the State mitigation program.
Identification
of the State
Hazard
Mitigation
Officer
The State Hazard Mitigation Officer is usually responsible for managing the State’s
mitigation program, coordinating the mitigation team or council, and planning activities.
After a disaster, the State Hazard Mitigation Officer manages the HMGP and serves as
FEMA’s mitigation liaison. Ongoing responsibilities and HMGP duties may overlap
immediately after a disaster. Therefore, the State Hazard Mitigation Officer should
ensure that there is adequate staff to address the State’s mitigation responsibilities.
Identification
of Staffing
Requirements
and
Resources
The State may wish to designate the minimum number of personnel, with type of
position, needed for the program; however, the organizational structure of the staff
should remain flexible and capable of expansion as necessary. Some key staff
positions include:
"" Clerical, administrative, and financial management support;
"" Assistants and program specialists to assist with grant program activities;
"" Program specialists qualified to conduct benefit-cost analyses; and
"" Environmental planners.
States often rely on staff from the emergency management agency, other State
agencies, or the State Hazard Mitigation Team to augment the efforts of the State
Hazard Mitigation Officer.
In large events, States may need to hire temporary or contract staff to administer the
HMGP effectively. The plan should outline a procedure for expanding staff resources
and utilizing State management costs.
"
TIP: See Section 13 for more information on State
management costs.
States should contact FEMA regional office staff or the Emergency Management
Institute to identify scheduled training that will increase management ability. Training
opportunities include workshops on benefit-cost analysis, the National Environment al
Policy Act, and grants management. To the extent possible, these costs should be
reflected in the State’s request for management cost funding.
Hazard Mitigation Grant Program Desk Reference
Page 2-3
Section 2: Building State Capability: Before the Disaster
Procedures
To Guide
Implementation Activities
In the Administrative Plan, the State must establish procedures to guide the following 13
activities:
"" Identify and notify potential applicants of the availability of the program.
"" Ensure that potential applicants are provided information on the application
process, program eligibility, and key deadlines.
"" Determine applicant eligibility.
"" Provide information for environmental and floodplain management reviews in
conformance with 44 CFR Parts 9 and 10.
"" Establish priorities for selection of mitigation projects.
"" Process requests for advances of funds and reimbursements.
"" Monitor and evaluate the progress and completion of selected projects.
"" Review and approve cost overruns.
"" Process appeals.
"" Provide technical assistance as required to subgrantees.
"" Comply with the administrative requirements of
44 CFR Parts 13 and 206.
"" Comply with audit requirements of 44 CFR Part 14.
44 CFR Parts
13, 14, and 206
"" Provide quarterly progress reports to the Regional Director on approved projects.
Developing a
Statewide
Commitment
to Hazard
Mitigation
While interest in hazard mitigation is keenest just after a natural disaster, States should
actively encourage year-round dialog on mitigation issues among interested parties
statewide.
Project Impact can be an important part of a local community’s and State’s mitigation
strategy. It is an initiative that helps communities protect themselves from the
devastating effects of natural disasters by taking actions that dramatically reduce
disruption and loss.
Project Impact operates on a common-sense, damage-reduction approach:
?? Preventive actions must be decided at the local level.
?? Private-sector participation is vital.
?? Long-term efforts and investments in prevention measures are essential.
Working with these local and private-sector partners, States can offer expertise and
technical assistance to help build disaster-resistant communities. Strategies include
efforts at the national and regional level, as well as working with other Federal agencies
and States.
Page 2-4
Hazard Mitigation Grant Program Desk Reference
Section 2: Building State Capability: Before the Disaster
State Hazard
Mitigation
Team: A
Valuable
Resource
There are many advantages for States that establish State hazard mitigation teams.
Individual members bring their varied backgrounds, specialized expertise, and
perspectives together to create interagency, interdisciplinary insight. Mitigation issues
often cross agency boundaries and require multi-agency coordination to achieve
resolution. The interagency aspect of the team diffuses political pressure on the
grantee agency and eases the burden of resources.
Typically, State hazard mitigation teams include, but are not limited to, agencies
involved with:
"" Emergency management;
"" Natural resources;
"" Floodplain management;
"" Environmental issues and historic and archeological preservation;
"" Soil conservation;
"" Transportation;
"" Planning and zoning;
"" Housing and economic development;
"" Building regulations;
"" Infrastructure regulations or construction;
"" Public information; and
"" Insurance.
Hazard Mitigation Grant Program Desk Reference
Page 2-5
Section 2: Building State Capability: Before the Disaster
Role of the
State Hazard
Mitigation
Team
Teams meet regularly and more frequently after a disaster. Team activities include:
"" Identifying the State’s vulnerability to hazards;
"" Reviewing existing mitigation plans and prioritizing recommendations;
"" Developing or updating hazard mitigation plans required under 44
CFR 206 Subpart M; and
"" Developing a comprehensive strategy for the development
and implementation of a State mitigation program;
44 CFR 206
Subpart M
"" Building public and business/industry support for mitigation initiatives;
"" Reviewing, assigning priority, and recommending mitigation actions for
implementation, including measures to be funded under the HMGP or other Federal
grant programs;
"" Seeking funding for implementation of mitigation measures; and
"" Preparing periodic status reports for the Governor and State legislature.
The State may also request local governments to appoint a mitigation point of contact to
assist with both HMGP and planning activities.
Many States have established interagency review boards or selection teams to assist
with reviewing, prioritizing, and recommending projects for HMGP funding. These
activities may be conducted by the State hazard mitigation team, or an expanded group
that may include representatives from the State team, in addition to regional and local
government officials and other public or private sector organizations.
"
Page 2-6
TIP: States that do not have a State hazard
mitigation team should refer to Chapter 4 of
the Post-Disaster Hazard Mitigation Planning
Guidance for State and Local Governments
(DAP-12) for detailed guidance on the
development of State hazard mitigation teams.
Hazard Mitigation Grant Program Desk Reference
Section 2: Building State Capability: Before the Disaster
Checklist for Preparing the State Administrative Plan
Job Aid 2-1
This checklist may be useful when preparing your State’s HMGP Administrative Plan. Use it to verify that
all required plan components are included and complete.
Legal Authorities
Does your State plan:
" " Include the legal basis in Federal and State law and also the Federal and State regulations that
implement the laws, including:
?? Federal financial regulations?
?? Federal insurance requirements?
?? State financial regulations?
?? Procurement code?
?? The Governor’s executive orders?
?? Stafford Act and other applicable Federal laws?
" " Indicate that the State has the level of knowledge of the laws, regulations, and executive orders so
that the State is able to develop methods and procedures to meet legal and audit requirements?
Definitions
Does your State plan:
" " Define words, phrases, abbreviations, and acronyms relevant to HMGP program management
(including program and financial definitions)?
" "Define or explain unique and/or unfamiliar words and phrases so that the plan user can have a
complete understanding of the section containing those words and/or phrases?
Job Aid 2-1
Hazard Mitigation Grant Program Desk Reference
Page 2-7
Section 2: Building State Capability: Before the Disaster
Checklist for Preparing the State Administrative Plan (Continued)
Job Aid 2-1
Responsibilities
Does your State plan:
" " Detail the organization framework for HMGP program management?
" " Clearly delineate who is responsible for each phase of program management?
" " Explain the relationships between and among major management elements, including the:
?? Governor’s Authorized Representative?
?? State Hazard Mitigation Officer?
?? State hazard mitigation team or council?
" " Include how each major element becomes a part of the management team?
" " Identify the grantee organization and SHMO?
" " Include the staffing pattern that will be used at the Disaster Field Office?
Project Identification
Does your State plan:
" " Describe the methods by which projects will be identified?
Applicant Information
Does your State Plan:
" " Include application notification procedures that ensure due process to all applicants?
" " Provide for timely notification of applicants?
" " Specify the methods for providing technical assistance to applicants?
" " Include procedures to maintain the timely flow of the application and supplemental information
between the State and the applicant?
" " Include required contents of a preapplication and procedures for submittal to the State Hazard
Mitigation Officer?
" " Specify the due date of the application?
Job Aid 2-1
Page 2-8
Hazard Mitigation Grant Program Desk Reference
Section 2: Building State Capability: Before the Disaster
Checklist for Preparing the State Administrative Plan (Continued)
Job Aid 2-1
Review, Ranking, and Selection of Projects
Does your State plan provide details about:
" " Who will review, select, and rank the projects?
" " The selection criteria? (Note: See 44 CFR 206.434 and 206.435.)
" " The criteria for ranking the projects that are forwarded to FEMA?
" " The schedule for project submission to FEMA and how exceptions will be handled?
Eligibility Requirements for Applicants and Projects
Does your State plan:
" " Provide a detailed listing of eligibility requirements to ensure due process by making it clear who can
apply and projects that can be considered?
" " List or cite the Federal eligibility criteria?
" " Explain additional eligibility criteria established by the State (if applicable)?
" " Identify resources and procedures for conducting environmental reviews?
" " Identify resources and procedures for conducting benefit-cost analyses?
Appeals
Does your State plan address:
" " The types of appeals that can be made?
" " Elements common to all appeals, including:
?? Who may appeal the decision?
?? The appeal format?
?? The time schedule for an appeal?
?? The actual appeal process?
Job Aid 2-1
Hazard Mitigation Grant Program Desk Reference
Page 2-9
Section 2: Building State Capability: Before the Disaster
Checklist for Preparing the State Administrative Plan (Continued)
Job Aid 2-1
Funding and Grants Management
Does your State plan include explanations of:
" " The cost-sharing formula (i.e., Federal, State, local, or other)?
" " Source and calculations used to determine the State and local shares?
" " When work should start on an approved project, when work should be completed, and acceptable
extensions to the target completion date?
" " Procedures that the State will follow if progress toward completion of an approved project is
inadequate?
" " Procedures to follow to change the scope of work on a project?
" " Records maintenance and retention procedures for both the State and subgrantees?
" " Is your State plan detailed enough to ensure continuity and provide an audit trail?
Does your State plan include:
" " Procedures for the advance or reimbursement of funds to subgrantees, including the amount of
advances and the flow of forms and funds?
" " Procedures for handling cost overruns, including the approval process, required documentation, and
the flow of forms and funds?
" " Procedures for handling cost underruns, including the required documentation and the flow of forms
and funds?
" " Documentation procedures that subgrantees must use?
" " Procedures for monitoring progress, including site visits?
Job Aid 2-1
Page 2-10
Hazard Mitigation Grant Program Desk Reference
Section 2: Building State Capability: Before the Disaster
Checklist for Preparing the State Administrative Plan (Continued)
Job Aid 2-1
Data Management System
Does your State plan include information about how you will handle:
" " Individual project files?
" " The declaration master file?
" " Reports, including:
?? HMGP funding balance reports?
?? Quarterly progress reports to FEMA?
?? Quarterly financial reports to FEMA?
?? HMGP status reports?
?? Project/application tracking reports?
Audit Requirements
Does your State plan:
" " References 44 CFR Part 14 and OMB Circular A-133?
" " Describe the coordination between the State Hazard Mitigation Officer and the Governor’s Authorized
Representative to ensure that audits are performed and reviewed?
" " Include review procedures for audits and the actions to take if there are exceptions or adverse
findings?
" " Procedures for the State Hazard Mitigation Officer to request an audit of any project from the
Governor’s Authorized Representative?
Job Aid 2-1
Hazard Mitigation Grant Program Desk Reference
Page 2-11
Section 2: Building State Capability: Before the Disaster
Checklist for Preparing the State Administrative Plan (Continued)
Job Aid 2-1
Closeout Procedures
Does your State plan include project closeout procedures, including copies of the:
" " Letter confirming final inspection and payment to the applicant?
" " Letter to the FEMA Regional Director from the Governor’s Authorized Representative requesting that
FEMA close the project? Note: This letter must include the following information and/or enclosures:
?? The project name, Federal project number, and State identification number.
?? A financial summary of the project.
?? Certifications
""
Of all eligible funds paid to the subgrantee;
""
That all work was completed according to FEMA requirements;
""
That all costs were incurred as the result of eligible work.
""
That all work was completed in accordance with provisions of the FEMA-State and Statelocal agreements.
""
That all payments were made according to Federal and State legal and regulatory
requirements.
""
That no bills are outstanding.
""
That no further requests for funding will be made for the project.
Does your State plan include program closeout procedures, including:
" " Documentation that all projects are closed?
" " The requirements that records be retained for a period of 3 years from the date that the request for
program closeout is submitted to FEMA?
Plan Review
Does your State plan:
" " Explain when and why the plan will be reviewed and revised?
" " Provide for FEMA review of the plan (or for notification that the State’s review did not result in
revisions)?
Job Aid 2-1
Page 2-12
Hazard Mitigation Grant Program Desk Reference
Section 2: Building State Capability: Before the Disaster
Checklist for Preparing the State Administrative Plan (Continued)
Job Aid 2-1
Appendices
Does your plan include any appendices that are necessary to assist in program administration? Sample
appendices could include copies of:
" " The executive order and letter appointing the State hazard mitigation team or council.
" " Sample press releases.
" " A sample agenda for the HMGP briefing at the Disaster Field Office or in the field.
" " The State’s application form.
" " The State-Local Disaster Assistance Agreement/Certification.
" " The quarterly progress and financial report formats.
" " The names of State hazard mitigation team or council members with addresses and phone/fax
numbers.
" " Items to take to the Disaster Field Office.
" " Items to include in the project and disaster files.
" " A sample letter of the State’s participation in the HMGP.
" " A copy of the subgrantee procedures for grant administration.
" " State-specific procedures or requirements for specific project types.
" " Sample closeout letters.
Job Aid 2-1
Hazard Mitigation Grant Program Desk Reference
Page 2-13
Section 3: After a Disaster Occurs
Section 3: After a Disaster Occurs
Contents
The Declaration Process .................................................................................................................. 3-1
Letter of Intent ................................................................................................................................. 3-1
State Responsibilities ....................................................................................................................... 3-1
Approved Plans ...................................................................................................................... 3-1
State Hazard Mitigation Officer ................................................................................................ 3-1
Sufficient Staff ........................................................................................................................ 3-2
Key State Activities ................................................................................................................. 3-2
Managing States..................................................................................................................... 3-2
Sufficient Staff for Managing States ......................................................................................... 3-2
Key Managing State Activities.................................................................................................. 3-3
Applicant/Subgrantee Responsibilities ............................................................................................... 3-3
Federal Responsibilities ................................................................................................................... 3-4
Regional Director Responsibilities ............................................................................................ 3-4
Regional Mitigation Staff Responsibilities ................................................................................. 3-4
Native American Tribe Grantee Authority........................................................................................... 3-4
Job Aid 3-1: Sample Letter of Intent ................................................................................................. 3-5
Job Aid 3-2: State Responsibilities for HMGP ................................................................................... 3-6
Job Aid 3-3: Authorities for State Activities Under the HMGP ............................................................. 3-8
Hazard Mitigation Grant Program Desk Reference
Section 3: After a Disaster Occurs
The
Declaration
Process
In spite of increasingly effective hazard mitigation, natural disasters will still cause
losses. When the recovery process is beyond the capability of the State and local
emergency management agencies, Federal assistance can provide both relief and
opportunity.
Presidential declaration of a major disaster may now trigger the availability of Hazard
Mitigation Grant Program funds in every county within the State, instead of only those
designated for Individual or Public Assistance.
The Governor may request that all counties be designated eligible for HMGP funds
when he or she requests a major declaration by the President through the Regional
Director.
The process of requesting that FEMA designate areas for disaster
assistance is detailed in 44 CFR 206.40.
Letter of
Intent
44 CFR 206.40
Regulations require the State to provide a Letter of Intent within 60 days after a
disaster declaration that tells FEMA whether or not the State will participate in the
HMGP. This requirement is satisfied if the Governor asks for the HMGP in the
declaration request.
The Regional Director is also authorized to extend the 60-day Letter of
Intent deadline if he or she determines the extension is justified.
The State should request such an extension in writing.
Job Aid 3-1 contains a sample Letter of Intent for your reference.
State
Responsibilities
Job Aid 3-1
The State has primary responsibility for project management and accountability of
funds. The State is responsible for ensuring that applicants and subgrantees adhere
to all program and administrative requirements.
The State should envision the HMGP as an opportunity to fund the implementation of
the State Hazard Mitigation Plan.
After indicating that it will participate in the Hazard Mitigation Grant Program, the State
should ensure that:
Approved
Plans
"" The Regional Director has approved the State’s Hazard Mitigation Plan
documenting its comprehensive mitigation planning process;
"" The Regional Director has approved the State’s administrative plan for
implementing the HMGP;
State Hazard
Mitigation
Officer
"" The State has appointed a State Hazard Mitigation Officer who will administer the
HMGP during the time of its availability;
(Experience shows that a full-time, permanent State Hazard Mitigation Officer is better
able to implement a successful post-disaster mitigation program.)
Hazard Mitigation Grant Program Desk Reference
Page 3-1
Section 3: After a Disaster Occurs
Sufficient
Staff
"" The State has staff qualified to:
?? Update their mitigation plan with a post-disaster mitigation strategy;
?? Provide applicants with technical assistance on sound mitigation techniques
and HMGP policy and procedures; and
?? Understand the National Environmental Policy Act and related Federal
environmental requirements, and perform required analyses if necessary.
Key State
Activities
Once the program is underway, key State activities include:
"" Soliciting program interest and helping potential applicants to develop complete
applications;
"" Reviewing and selecting grant proposals from eligible applicants;
"" Preparing and submitting applications to FEMA;
"" Notifying applicants of FEMA decisions on submitted projects; and
"" Submitting quarterly financial and progress reports to FEMA indicating the status
and completion date for each approved project.
Managing
States
In an effort to streamline the HMGP and provide States more flexibility, FEMA is
examining the roles and responsibilities for HMGP administration. FEMA has
proposed a Managing State arrangement for those States that have the capability and
would like to assume a stronger management role in the HMGP.
Under a Managing State arrangement, FEMA will accept the State’s eligibility and
benefit-cost determinations made in accordance with the terms in a Memorandum of
Understanding. This includes a list of eligible project types that the State and FEMA
negotiated prior to signing the Memorandum. Although States will be encouraged to
prepare environmental documentation for each project, a FEMA official must sign and
approve the documentation, as such authority cannot be delegated to a State in
accordance with the National Environmental Policy Act.
The State then submits a project summary sheet to FEMA for each project. FEMA’s
review of project summary sheets, rather than the entire application packet, should
significantly expedite the project approval process.
Sufficient
Staff for
Managing
States
The managing State has staff qualified to perform the tasks above, as well as:
"" Conduct eligibility reviews;
"" Conduct and review benefit-cost analyses using FEMA-approved methodology;
and
"" Develop documentation to comply with environmental requirements for FEMA
approval.
Page 3-2
Hazard Mitigation Grant Program Desk Reference
Section 3: After a Disaster Occurs
Key Managing
State
Activities
Key responsibilities of the managing State include:
"" Soliciting program interest and helping potential applicants to develop complete
applications;
"" Reviewing and selecting grant proposals from eligible applicants;
"" Ensuring eligibility of submitted applications;
"" Conducting benefit-cost analyses to determine whether the project meets the
criteria listed in 44 CFR 206.434(b)(5);
"" Developing documentation to comply with the environmental requirements for
FEMA approval;
"" Dispersing funds to applicants after the State has determined a project meets
program eligibility requirements, including cost-effectiveness, per FEMA guidance
and FEMA has approved the required environmental documentation;
"" Administering the HMGP consistent with program law, regulations, and policy
guidance;
"" Providing quarterly performance and financial reports to FEMA; and
"" Approving all funding to applicants within 24 months of the
disaster declaration or returning uncommitted funds to the general
fund.
A chart of State responsibilities is provided in Job Aid 3-2.
Job Aid 3-3 illustrates the required State activities, timeframes,
and authorizing document(s).
Applicant/
Subgrantee
Responsibilities
Job Aid 3-2
and 3-3
Applicants are responsible for submitting complete, accurate project applications to the
State. An applicant becomes a subgrantee if the proposed measure is selected as an
approved project. The subgrantee, then, is responsible for:
"" Managing the implementation of the approved project;
"" Complying with HMGP requirements, grants management
procedures in 44 CFR Part 13, the grant agreement, and
applicable Federal, State, and local laws and standards;
"" Accounting for the appropriate use of grant funds to the grantee
State; and
"" Maintaining records on the program and projects as required by
44 CFR 13.42.
Hazard Mitigation Grant Program Desk Reference
44 CFR Part 13
44 CR 13.42
Page 3-3
Section 3: After a Disaster Occurs
Federal
Responsibilities
Regional
Director
Responsi bilities
The paragraphs below list some of the key responsibilities of FEMA personnel
regarding HMGP.
The FEMA Regional Director is responsible for:
"" Overseeing and managing the HMGP;
"" Assisting the State in setting priorities for the use of HMGP funds in the aftermath
of a disaster; and
"" Approving or denying applications for funding by the State.
Regional
Mitigation
Staff
Responsibilities
The FEMA regional Mitigation staff serves as the point of contact for the State Hazard
Mitigation Officer. FEMA regional Mitigation staff members are responsible for:
"" Keeping the State apprised of the anticipated amount of available funding;
"" Reviewing and evaluating submitted applications or project summaries and States’
determinations of eligibility;
"" Coordinating with the Regional Environmental Officers to prepare the
environmental decision document based on information submitted by the applicant
and State;
"" Notifying the State in writing of application decisions;
"" Providing technical assistance to States, applicants, and subgrantees in order to
ensure effective and efficient implementation of the program, including:
?? Assisting with the identification of appropriate projects;
?? Assisting with project applications, specifically environmental and floodplain
management considerations and project cost-effectiveness; and
?? Providing technical information from appropriate experts, as necessary;
"" Reviewing the State’s quarterly reports and following up on issues as necessary.
Native
American
Tribe
Grantee
Authority
A Native American tribe or tribal organization has the option to submit applications
directly to the Regional Director. If a tribe would like to act as grantee, it should notify
FEMA as soon as possible after the disaster declaration. Upon project approval, the
Native American tribe becomes the grantee and designates an equivalent to the
Governor’s Authorized Representative.
FEMA will then estimate the amount of HMGP Funding available to the tribe based on
the amount of other disaster grants provided to the tribe.
Page 3-4
Hazard Mitigation Grant Program Desk Reference
Section 3: After a Disaster Occurs
Sample Letter of Intent
Job Aid 3-1
Governor’s Authorized Representative for ______(State)________
Division of Disaster Emergency Services
FCO, FEMA Region _______
xxx Main Street
Anywhere, USA XXXXX
This letter is to notify you that ______(State)_______ intends to participate in the Hazard Mitigation Grant
Program, which is available subsequent to the Federal disaster declaration, FEMA- ______ -DR- ______
on ___(date)____ .
I have designated _____(name)_____ as the Hazard Mitigation Officer for the Hazard Mitigation Grant
Program. If you should have any questions concerning the State’s participation, please contact
____(name)____ at _____(phone)_____ .
Sincerely,
__________________
GAR
Job Aid 3-1
Hazard Mitigation Grant Program Desk Reference
Page 3-5
Section 3: After a Disaster Occurs
Sample Responsibilities for HMGP
Job Aid 3-2
Responsibilities for States under HMGP are shown in the table below, along with the tasks associated
with each responsibility. Use this information as a guide for developing your State’s capabilities .
RESPONSIBILITY
Manage the program
Provide technical assistance to
applicants
TASKS
Setting program priorities:
" " Indicating the program priorities in its State mitigation plan.
Selecting applications to be funded:
" " Maintaining an interagency, interdisciplinary coordination
mechanism, such as a State team.
Determining eligibility:
" " Determining whether the proposed project is consistent with the
program purpose and objectives.
" " Conducting benefit-cost analyses to determine whether the
project meets the criteria listed in 44 CFR 206.434(b)(5).
" " Recommending to FEMA the level of environmental analysis
required under 44 CFR Part 10.
" " Coordinating with FEMA to conduct environmental analyses.
" " Assisting FEMA in determining whether significant environmental
impacts exist and, if so, how they might be avoided or reduced.
" " Assisting in identifying potential mitigation projects.
" " Assisting in identifying experts.
" " Providing expertise in identifying and analyzing environmental
issues and requirements.
" " Assisting subgrantees in performing benefit-cost analyses using
FEMA-approved methodology.
Job Aid 3-2
Page 3-6
Hazard Mitigation Grant Program Desk Reference
Section 3: After a Disaster Occurs
Sample Responsibilities for HMGP (Continued)
RESPONSIBILITY
Provide quarterly performance
and financial reports
Closeout
Maintain records
TASKS
Managing the day-t o-day operations of grant- and subgrant-supported
activities:
" " Comparing actual accomplishments to the objectives to be
accomplished for the period.
" " Explaining the reason for slippage if the established objectives
were not met.
" " Providing additional pertinent information as appropriate.
" " Informing FEMA of problems, delays, or adverse conditions that
will materially impair the grantee’s or subgrantee’s ability to meet
the project objectives.
" " Monitoring subgrantee implementation.
Preparing and submitting financial reports:
" " Preparing SF 269, SF 269A, or FEMA Form 20-10 and submitting
the form to FEMA no later than 15 working days following the end
of each quarter.
" " Preparing and submitting SF 270 or SF 271, as necessary, to
report outlays and/or request reimbursements.
" " Reconciling/adjusting project costs.
" " Submitting final project report.
" " Visiting site.
" " Closing projects in program and financial systems.
" " Coordinating records retention with participating grantee agencies
and subgrantees as necessary.
" " Retaining records for 3 years from the date of submission of the
final expenditure report.
Job Aid 3-2
Hazard Mitigation Grant Program Desk Reference
Page 3-7
Section 3: After a Disaster Occurs
Authorities for State Activities Under the HMGP
Job Aid 3-3
The table below includes major tasks and activities required under the Hazard Mitigation Grant Program
and authorizing document(s) for each requirement. When a timeframe is critical to task performance, it is
included also.
TASK/ACTIVITY
APPROXIMATE
TIMEFRAME*
1.
Appoint State Hazard
Mitigation Officer
2.
Participate in the HM field
survey
3.
Coordinate with local
jurisdictions regarding local
HM Plans
4.
Submit HMGP Administrative
Plan
Preferably pre-disaster; prior to
project approval
44 CFR 206.437
5.
Submit application packages
to prospective applicants
1–90 days
44 CFR 206.436
6.
Conduct and review benefitcost analyses using FEMAapproved methodology
30–180 days
Managing State guidance
7.
Develop documentation to
comply with environmental
requirements for FEMA
approval
30–180 days
Managing State guidance
8.
Review, evaluate, and rank
HMGP project proposals
30–180 days
44 CFR 206.435
9.
Submit Hazard Mitigation
Plan.
10. Submit SF 424 application
and project applications or
summaries to FEMA for
review and approval
Pre-disaster
AUTHORIZATION
44 CFR 206.433(c)
3–10 days
44 CFR 206.402(c)(3)
15–20 days
44 CFR 206.402(c)(5)
Preferably pre-disaster;
180 days
30–270 days
44 CFR 206.405(d)
44 CFR 206.436
OMB Circular A-102 1.c.1
44 CFR 13.10(a)(2)
*Following declaration
Note: These timeframes are approximate and do not account for exceptions to regulatory deadlines, which might lengthen the
timeline.
Job Aid 3-3
Page 3-8
Hazard Mitigation Grant Program Desk Reference
Section 3: After a Disaster Occurs
Authorities for State Activities Under the HMGP (Continued)
Job Aid 3-3
TASK/ACTIVITY
APPROXIMATE
TIMEFRAME*
AUTHORIZATION
11. Disperse funds to applicants
after the State has
determined a project meets
program eligibility
requirements, including cost
effectiveness, per FEMA
guidance and FEMA has
approved the required
environmental
documentation
30–270 days
12. Evaluate and monitor project
implementation and
completion according to
schedule in grant agreement
Ongoing
44 CFR 13.40
44 CFR 206.438
13. Administer the HMGP
consistent with program law,
regulations, and policy
guidance
Ongoing
Managing State guidance
14. Approve all funding to
applicants within 24 months
of the disaster declaration or
return uncommitted funds to
the general fund
24 months
Managing State guidance
15. Prepare and submit financial
status reports
Quarterly
OMB Circular A-102 2.c
44 CFR 13.20(b)(1)
44 CFR 13.41(b)
44 CFR 13.41(c)
16. Prepare and submit
performance reports
Quarterly
44 CFR 206.438(c)
17. Perform HMGP closeout
When all required
work is complete;
usually 2 years or less
18. Retain records
3 years from
date of final
submission
Managing State guidance
OMB Circular A-102 3
44 CFR 13.50
44 CFR 13.36(1)(11)
44 CFR 13.42(b)
44 CFR 13.42(c)
*Following declaration
Note: These timeframes are approximate and do not account for exceptions to regulatory deadlines, which might lengthen the
timeline.
Job Aid 3-3
Hazard Mitigation Grant Program Desk Reference
Page 3-9
Section 4: Hazard Mitigation
Grant Program Availability
Section 4: Hazard Mitigation Grant Program Availability
Contents
Available Assistance........................................................................................................................ 4-1
How the Award Limit Is Calculated .................................................................................................... 4-1
Timeframes for Lock-In of HMGP Ceiling........................................................................................... 4-1
Extensions to the Lock-In Ceiling Timeframe ............................................................................ 4-2
Application/Submission Timeline....................................................................................................... 4-2
Extensions ............................................................................................................................. 4-2
Timeframe for FEMA To Obligate Program Funds .............................................................................. 4-2
Extensions ............................................................................................................................. 4-2
Hazard Mitigation Grant Program Desk Reference
Section 4: Hazard Mitigation Grant Program Availability
Available
Assistance
The Hazard Mitigation Grant Program may provide a State with not more than 15
percent of the total estimated Federal grant assistance (excluding any associated
administrative costs) provided under Sections 403, 406, 407, 408, 410, 411, 416, and
701 of the Stafford Act.
The total of Section 404 grants for project and management grants
may not exceed the mitigation ceiling, but the subgrantee and grantee
administrative costs (sliding scales from 44 CFR 206.439) do not count
1
against the ceiling.
44 CFR
206.439
These Federal grants may be used to fund up to 75 percent of an approved mitigation
measure. States or local applicants provide non-Federal funds to pay for the
remaining 25 percent of eligible project costs.
"
How the
Award Limit
Is Calculated
TIP: Cost -sharing is discussed fully in Section 13.
The ceiling is the guaranteed level of hazard mitigation project and management cost
funding in a particular disaster. The FEMA regional Mitigation Division will coordinate
the hazard mitigation estimated ceiling, lock-in ceiling, and final lock-in ceiling with the
State.
FEMA’s quarterly Disaster Finance Status Report is the mechanism for calculating the
mitigation ceiling. It contains the Regional Director’s projections for all of a region’s
declarations, including the projections data for other disaster programs. The Region
may use the most recent or closest quarterly status report. The Disaster Finance
Status Report is pre-encoded to perform these three steps:
Timeframes
for Lock-In
of HMGP
Ceiling
1.
Take the total Federal share of program costs for all relevant Stafford Act
programs;
2.
Remove any administrative costs; and
3.
Multiply this total by 15 percent to automatically calculate the mitigation ceiling.
The following timeframe indicates the schedule for establishing the HMGP estimated
ceiling and lock-in ceiling.
"" 3 Months: The HMGP estimated ceiling will be established initially within 90 days
of the disaster declaration. It will be maintained until the first ceiling review at 6
months.
"" 6 Months: The estimate will be reevaluated based upon the ceiling calculated by
the Disaster Finance Status Report. The lock-in ceiling will reflect any increase or
decrease in the resulting estimate. Only at the time of this initial HMGP ceiling
review shall a decrease in available funds be incorporated into the lock-in.
Subsequent reviews will result in a change to the ceiling only when the review
reflects an increase. This first lock-in represents the minimum amount of HMGP
funds available for a given disaster.
1
For disasters declared prior to 10/1/97 the management costs do not count against the HMGP ceiling.
Hazard Mitigation Grant Program Desk Reference
Page 4-1
Section 4: Hazard Mitigation Grant Program Availability
Timeframes
for Lock-In
of HMGP
Ceiling
(Continued)
"" 12 Months: A final review of the lock-in ceiling will be conducted 12 months after
the disaster declaration. The resulting estimate will impact the final lock-in amount
only if it reflects an increase.
Extensions to
the Lock-In
Ceiling
Timeframe
The Regional Director may extend the timeframe to include an additional review at 18
months after the disaster declaration, if the State requests it and demonstrates that the
disaster is so catastrophic that it is causing major fluctuations in the estimated ceiling.
If the resulting estimate has increased, the final lock-in amount will reflect the increase.
Application/
Submission
Timeframe
States should complete the review and prioritization of subgrantee applications within
90 days after the State Hazard Mitigation Plan is approved. Generally this results in a
deadline between 9 and 18 months after the disaster declaration, but the deadline
rarely exceeds 18 months.
Extensions
Timeframe
for FEMA To
Obligate
Program
Funds
"
Extensions
Page 4-2
The Regional Director may extend the above timeframes in 90-day increments, in the
event of extraordinary circumstances or to allow a State to adjust to an increase in the
HMGP lock-in ceiling, upon written request from the State. Extensions beyond 18
months after the disaster declaration are to be granted in rare circumstances only.
Within 24 months of the disaster declaration, FEMA will make determinations on all
applications and project summaries, and will complete all obligations for approved
applications. FEMA will de-allocate any HMGP funds not obligated or committed to a
pending project application after the 24-month obligation deadline has passed. The
availability of unused funds expires at this time.
TIP: See page 13-12 regarding obligation of cost
underrun funding to other approved projects.
The Regional Director may extend the deadline by 90 days, in the event of
extraordinary circumstances, or to reflect extensions granted to the State.
Hazard Mitigation Grant Program Desk Reference
Section 5: Identifying and
Selecting Grant Projects
Section 5: Identifying and Selecting Grant Projects
Contents
Identifying Grant Projects ................................................................................................................. 5-1
Setting State Priorities ...................................................................................................................... 5-1
Pre-Disaster Funding To Identify Projects.......................................................................................... 5-1
Early Implementation of Mitigation Strategies .................................................................................... 5-1
Identify and Notify Potential Applicants.............................................................................................. 5-1
Notification Opportunities ................................................................................................................. 5-2
Notification Methods ........................................................................................................................ 5-2
Disseminate Full Information ............................................................................................................ 5-2
Selection Criteria ............................................................................................................................. 5-3
Job Aid 5-1: Applicants Briefing Invitation Letter................................................................................ 5-4
Job Aid 5-2: Agenda for 1-Hour Presentation .................................................................................... 5-5
Job Aid 5-3: Sample Pre-Application Form ....................................................................................... 5-6
Hazard Mitigation Grant Program Desk Reference
Section 5: Identifying and Selecting Grant Projects
Identifying
Grant
Projects
"
Setting State
Priorities
The State should use the identification procedures included in its Administration Plan
to identify potential Hazard Mitigation Grant Program projects that are consistent with
the State Hazard Mitigation Plan. Ideally, this should be accomplished by the State
hazard mitigation team.
TIP: States that do not have a State hazard
mitigation team should refer to Chapter 4 of
the Post-Disaster Hazard Mitigation Planning
Guidance for State and Local Governments
(DAP-12) for detailed guidance on the
development of State hazard mitigation teams.
A State committed to hazard mitigation will have adopted a proactive stance that is
based in planning. Ideally, the State has pre-identified its statewide mitigation strategy
and potential HMGP projects during the development of its up-to-date, comprehensive
Hazard Mitigation Plan. Such a plan will expedite not only post-disaster mitigation
funding, but also use of pre-disaster resources.
The State should submit project applications that reflect these planning objectives and
strategies.
Pre-Disaster
Funding To
Identify
Projects
Early
Implementation of
Mitigation
Strategies
The State may use annual cooperative agreement funding to update or expand its
Hazard Mitigation Plan. With this “ready” stance, the State need only examine the
mitigation opportunities revealed by the latest disaster before final selection of potential
projects is made.
Potential projects may be identified during the preliminary damage assessment or
post-disaster hazard mitigation team process. The Interagency Hazard Mitigation
Teams and Hazard Mitigation Survey Teams conduct site visits immediately after a
disaster occurs and compile their recommendations for a mitigation strategy. This
feedback often identifies immediate mitigation opportunities and enables early
implementation of appropriate strategies.
Another activity that may assist in the identification of potential mitigation measures is
the review of Project Worksheets for the Public Assistance Program. These inspection
reports may identify site-specific issues as well as widespread problems. The State
Hazard Mitigation Officer should discuss types of damage, eligible measures under the
Public Assistance Program and HMGP, and potential applicants and projects with
State and Federal Public Assistance Officers.
Identify and
Notify
Potential
Applicants
Following the identification of potential measures, the State should contact all potential
applicants, notify them that HMGP funds are available, and provide application
information.
Potential applicants include State agencies, local governments, private non-profit
organizations, and Native American tribes.
Hazard Mitigation Grant Program Desk Reference
Page 5-1
Section 5: Identifying and Selecting Grant Projects
Notification
Opportunities
Notification
Methods
Notification opportunities include:
Notification methods may include:
"" Public notices;
"" Statewide direct mail effort;
"" News releases; and
"" Formal meetings and briefings.
Disseminate
Full
Information
Ensure that potential applicants receive information on the application process,
program eligibility, and key deadlines.
The State Hazard Mitigation Officer is responsible for ensuring that the grant
application submitted to FEMA is complete. It is in the State’s interest that the State
Hazard Mitigation Officer provide in-depth program information to all potential
applicants so that their applications to the State are complete.
It is key for States to set clear priorities and encourage applicants to propose projects
within those priorities. This can focus application submissions and reduce the State’s
review burden.
One effective manner to disseminate program information is through
a Hazard Mitigation Grant Program Applicants Briefing. A sample
Applicants Briefing Letter, Agenda for 1-Hour Presentation, and
Pre-Application Form are included as Job Aids 5-1, 5-2, and 5-3,
respectively.
"
Page 5-2
Job Aid 5-1,
5-2, and 5-3
TIP: Consult FEMA’s HMGP Applicant Handbook for
detailed guidance.
Hazard Mitigation Grant Program Desk Reference
Section 5: Identifying and Selecting Grant Projects
Selection
Criteria
Total applications from potential subgrantees often exceed the total amount of
available grant funds. The State is responsible for reviewing and ranking potential
projects by priority.
The State will use the criteria delineated in the Administrative Plan to thoroughly
review all project applications. The State must ensure that all potential
measures it selects:
"" Meet minimum eligibility criteria. The selection criteria must comply
with the minimum project eligibility under 44 CFR 206.434(b).
"
44 CFR
206.435(b)
TIP: Section 7 describes the five minimum criteria for
project eligibility.
"" Meet minimum selection criteria. The projects must also meet the three minimum
project selection criteria under 44 CFR 206.435(b).
1. Best-fit within the overall development plan and/or the hazard mitigation plan
for the area. The State should review appropriate plans, such as land use and
comprehensive plans to ensure that the projects conform with State or local
government planning objectives.
2. Address severe detrimental impacts. Selected projects should be those that
clearly reduce loss of life, loss of essential services, damage to critical
facilities, or severe economic hardship.
3. Have the greatest potential to reduce future losses after examining the
alternatives available.
1
Other considerations the State may add to its evaluation criteria include:
"" Repetitive history of damage at the site.
"" Severity of hazard and vulnerability at the project location.
"" Level of protection provided by the project.
"" Measures designed to accomplish multi-objectives, including damage reduction,
environmental enhancement, and economic recovery.
"" The applicant community’s participation in the National Flood Insurance Program,
compliance record, and Community Rating System level.
"" Protection of primary residences versus secondary homes and businesses.
"" Whether property to be protected is covered by flood or hazard insurance.
"" The applicant’s ability to provide local cost-share.
"" Local commitment and public buy-in.
Hazard Mitigation Grant Program Desk Reference
Page 5-3
Section 5: Identifying and Selecting Grant Projects
Applicants Briefing Invitation Letter
Job Aid 5-1
Letters should be sent to all potential applicants notifying them of the availability of funds under the
Hazard Mitigation Program and inviting them to attend the Hazard Mitigation Grant Program Applicants
Briefing. This letter provides general information on the program and includes scheduling information for
the briefing.
Dear State and Local Government Agencies/Private Non-Profit Organizations/Native American Tribes
and Tribal Organizations:
As a result of damage suffered recently in ___State___ , the President has declared ___State___ as a
major disaster area. This disaster declaration makes Federal disaster assistance available to those
counties in the disaster area. Federal disaster assistance is authorized under the Stafford Act.
The Stafford Act also authorizes the Hazard Mitigation Grant Program for all counties in the State. This
program funds cost-effective hazard mitigation measures. Hazard mitigation is defined as sustained
action taken to reduce or eliminate long-term risk to people and property from hazards and their effects.
Hazard mitigation projects should, therefore, reduce future disaster relief expenditures for the repair or
replacement of public and private property, and expenditures for the relief of personal loss, hardship, and
suffering. Federal funds are available for up to 75 percent of the cost of the hazard mitigation measure.
To be eligible, projects must satisfy specific criteria.
A briefing on the Hazard Mitigation Grant Program will be held on ___date, time___ , at __location____ .
Eligible applicants include State and local government entities, private non-profit organizations, and
Native American tribes. The briefing will provide an overview of the Hazard Mitigation Grant Program and
will specifically address:
""
""
""
""
""
""
Eligibility Criteria;
Project Identification and Selection;
Application Process;
Project Management;
Technical Assistance; and
Available Funding.
For additional information, please contact __name, title__ of the ___State emergency management
agency ___ at __telephone number___.
Sincerely,
State Director
Job Aid 5-1
Page 5-4
Hazard Mitigation Grant Program Desk Reference
Section 5: Identifying and Selecting Grant Projects
Agenda for 1-Hour Presentation
I.
Welcome
II.
Introduction
III.
IV.
A.
Purpose and Objectives of Meeting
B.
Explanation of Hazard Mitigation and the Hazard Mitigation Grant Program
Overview of Hazard Mitigation Grant Program
A.
Intent
B.
Eligible Applicants
C.
Project Eligibility
D.
Project Identification
E.
Project Selection
F.
Available Funding
G.
Technical Assistance
H.
Application Schedule
I.
Contact for Additional Information
Questions and Answers/Conclusion
Hazard Mitigation Grant Program Desk Reference
10 minutes
40 minutes
10 minutes
Job Aid 5-2
Page 5-5
Section 5: Identifying and Selecting Grant Projects
Sample Pre-Application Form
Date:________________________________
Disaster No: ___________________________
Name of Applicant: _____________________________________________________________
Project Contact:
(Name)
(Title)
(Agency)
(Address)
(Phone No.)
Brief Description of
Problems To Be Solved:
Location of Project:
Brief Description of
Alternatives Under
Consideration:
Total Estimated Cost:
Source(s) of Funding:
Job Aid 5-3
Page 5-6
Hazard Mitigation Grant Program Desk Reference
Section 6: The Application Process
Section 6: The Application Process
Contents
Overview of Process ........................................................................................................................ 6-1
Timeframes ..................................................................................................................................... 6-1
Application Submittal ................................................................................................................. 6-1
Obligations ................................................................................................................................ 6-1
Funds Expire............................................................................................................................. 6-1
Extensions ................................................................................................................................ 6-1
Application Timeframe ..................................................................................................................... 6-2
Local Application to State................................................................................................................. 6-2
The Project Application .................................................................................................................... 6-2
State Application to FEMA................................................................................................................ 6-2
Managing States.............................................................................................................................. 6-3
NEMIS Application ........................................................................................................................... 6-4
Job Aid 6-1: Hazard Mitigation Grant Program Application Process.................................................... 6-5
Job Aid 6-2: State and Federal Activities Required Through Submission of State
HMGP Applications .................................................................................................... 6-6
Job Aid 6-3: SF 424, Application for Federal Assistance.................................................................... 6-7
Job Aid 6-4: Project Application Checklist......................................................................................... 6-8
Job Aid 6-5: State Review Results ................................................................................................. 6-12
Job Aid 6-6: FEMA Disaster Grant Agreement Articles, Hazard Mitigation Grant Program ................. 6-13
Job Aid 6-7: Creating the Application in NEMIS ............................................................................... 6-16
Hazard Mitigation Grant Program Desk Reference
Section 6: The Application Process
Overview of
Process
The application process for the Hazard Mitigation Grant Program consists of the
following steps:
1.
The State notifies potential applicants of the availability of funds.
2.
Applicants submit projects to the State.
Early on the State alerts FEMA of projects likely to be selected that will require
detailed environmental review.
3.
The State HMGP staff or team thoroughly reviews the projects submitted by
potential subgrantees.
The State selects projects that best fit within its priorities and appear to be eligible.
4.
The State submits selected projects to FEMA, in priority order. (Managing States
forward only summaries, otherwise States send full applications to FEMA.)
5.
FEMA reviews the application or the State’s eligibility recommendation and
envi ronmental documentation.
6.
If the application is approved, the State begins grant management.
The flowchart shown in Job Aid 6-1 summarizes the basic steps in the
application process.
Timeframes
Job Aid 6-1
To ensure timely administration of the HMGP, FEMA and all States will follow the
timeframes detailed below.
This is a review of timeframes presented in Section 4.
Application
Submittal
The State will submit all selected local applications or summaries to the Regional
Director within 90 days after the State Hazard Mitigation Plan is approved.
(Approximately 9-18 months after disaster declaration.)
Obligations
The Regional Director will obligate all funding within 24 months after the disaster
declaration.
Funds Expire
Any HMGP funds not obligated or committed to a pending project application after the
24-month obligation deadline expire, and are no longer available.
Extensions
The Regional Director may extend any of the above timeframes by 90 days, in the
event of extraordinary circumstances, upon a written request from the State. The
Associate Director for Mitigation may extend timeframes related to FEMA actions by 90
days, in the event of extraordinary circumstances, upon written request by the
Regional Director.
Hazard Mitigation Grant Program Desk Reference
Page 6-1
Section 6: The Application Process
Application
Timeframe
The flowchart shown in Job Aid 6-2 illustrates the chain of events
and accompanying timeframes when application to the HMGP is made.
Job Aid 6-2
Local
Application
to State
The Project
Application
There is no standard form required for the local community application to
the State for the HMGP. However, States may provide potential
applicants with a State application form, a copy of this section, or the
HMGP Applicant Handbook to encourage complete applications in a
uniform format. NEMIS also provides a model application outline for
State use. (See Job Aid 6-4.)
Job Aid 6-4
There are 10 sections in the project application that must be completed by the
applicant:
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Applicant Information
Summary Project Information
Description of the Problem
Description of Applicant’s Decision-Making Process
Project Description
Project Cost Estimate and Match Source
Maintenance Assurance
Cost-Effectiveness (Risk) Information
Environmental and Historical Considerations
Attachments
Subpart N requirement 44 CFR 206.434(b)(5)(iii) reads, in part: “. . . project has been
determined to be the most practical, effective, and environmentally sound alternative
after considering a range of options.”
Section 4 of the proposal should clearly demonstrate that other options were
considered, and the reasons why they were not selected.
"
State
Application
to FEMA
TIP: Refer to the HMGP Applicant Handbook for
further detail.
The State makes a single application to FEMA representing all the local
applications selected by the State in priority order. This application
usually takes the form of Standard Forms 424 and 424d as a cover
sheet, with the selected local applications attached. If the State does not
send all local applications at one time, it may amend the initial
application with an amended Standard Form 424 and additional local
applications attached. Managing States submit project summaries
instead of local applications. (See Job Aid 6-3 for a sample Standard
Form 424.)
Some States send an SF 424 as a cover sheet for each project. This is
not required.
Page 6-2
Job Aid 6-3
Hazard Mitigation Grant Program Desk Reference
Section 6: The Application Process
Managing
States
For Managing States, FEMA’s role in the review process is primarily to confirm the
State’s eligibility decisions. Applicants submit proposed projects to the State for
thorough review and ranking. States forward project summaries to FEMA for review.
Later, FEMA may review a sampling of applications during a joint State/FEMA program
evaluation.
For those States that request it, FEMA continues to offer support in benefit-cost
analysis and other areas, as needed. However, States are urged to hire and/or train
staff to fully implement and manage the program.
FEMA retains primary responsibility for compliance with the National Environmental
Policy Act and other Federal environmental laws and Executive orders. While the
applicant and State submit the environmental research and analysis, FEMA approves
the environmental decision document.
Instead of submitting full applications to FEMA, the Managing State forwards a project
summary containing the following information:
1.
Major disaster number from which mitigation funds will be obligated by FEMA.
2.
A hazard mitigation project number.
3.
FIPS code.
4.
Project location.
5.
U.S. Congressional District (Senators and Representatives).
6.
Applicant name(s) (i.e., Community and POC information).
7.
Brief description of the project.
8.
List of alternatives considered (e.g., acquisition, elevation, drainage upgrade).
9.
Total project cost.
10.
Amount requested (Federal share).
11.
Non-Federal cost-share amount and source (e.g., local, State).
12.
Proposed performance period (completion date).
13.
Reviews/Results: (See Job Aid 6-5 for State Review Results).
"" Certify that the State has reviewed and determined that this
project is eligible.
Job Aid 6-5
"" Attach record of environmental review.
"" Attach benefit-cost summary sheet.
Hazard Mitigation Grant Program Desk Reference
Page 6-3
Section 6: The Application Process
NEMIS
Application
The HMGP Application Development module of the National Emergency Management
Information System enables each State to store project applications and submit them
to FEMA regional personnel in digital format.
See Job Aid 6-7 for guidance on creating an application with NEMIS.
Job Aid 6-7
Page 6-4
Hazard Mitigation Grant Program Desk Reference
Section 6: The Application Process
Hazard Mitigation Grant Program Application Process
1. State notifies potential applicants.
2.
Applicants submit projects to
State.
3.
State HMGP staff or team reviews
the project.
4.
State submits selected projects
to FEMA.
5.
FEMA reviews the application or the
State's eligibility recommendation.
6.
If approved, State begins grant
management.
Job Aid 6-1
Hazard Mitigation Grant Program Desk Reference
Page 6-5
Section 6: The Application Process
State and Federal Activities Required Through Submission of
State HMGP Applications
Declaration
STATE
0
State Mitigation Officer Appointed
Update State Admin plan and HM Plan if necessary
Federal/State HM team report completed
}
HM Field Survey conducted
}
FEMA
Federal Mitigation Officer appointed
HM Field Survey conducted
Federal/State HM team report completed
1
Notification to local jurisdiction of HMGP availability
GAR notified of administrative plan status
}
Request for “Pre-applications” from eligible applicants (not required)
Submit application package
to prospective applicants
(State sets timeframe)
}
Deadline for notifying FEMA of interest in
participating (or not participating) in HMGP
2
3
Receive local HM plans (if required)
Initial estimate of ceiling; GAR notified of initial estimate
4
Submit State admin plan for approval (if necessary)
Review, evaluate, and rank HMGP project
proposals (State sets timeframe)
Deadline for Hazard Mitigation Plan submission
Review, evaluate, and rank HMGP project proposals
(State sets timeframe)
5
6
}
7
Review estimate and lock-in ceiling
State Hazard Mitigation Plan reviewed
State Hazard Mitigation Plan approved (RD)
8
Submit projects to FEMA for review/approval
9-18
12
Final lock-in
MONTHS*
* The months indicated in this flowchart represent approximate required timeframes.
Note:
These times are approximate and do not account for exceptions to regulatory deadlines that might lengthen the
timeline.
Job Aid 6-2
Page 6-6
Hazard Mitigation Grant Program Desk Reference
Section 6: The Application Process
SF 424, Application for Federal Assistance
Hazard Mitigation Grant Program Desk Reference
Job Aid 6-3
Page 6-7
Section 6: The Application Process
Project Application Checklist
Use this checklist to ensure that an HMGP application is complete. The checklist will assist in the review
and will speed the application process.
Applicant
______________________
Project Title _____________________________________________________________
(Ensure that project title above matches that of the attached project application.)
1.
Applicant Information
" " What is the name of applicant organization?
" " Is contact information for the applicant provided?
" " Did the applicant check a (proper) category of eligible applicants from below?
?? State or local government.
?? Native American tribe
?? Special governmental district
?? Eligible private non-profit (PNP)
" " If the applicant is a PNP:
?? Is there a description of the legal status, function, and facilities owned?
?? Is the State or Federal tax number and tax-exempt certificate provided?
" " If the applicant is a Native American tribe:
?? Is the appropriate tribal identification number or other proof of eligibility provided?
?? “Standard Applicant Certifications and Assurances” (See your States’ application.)
" " Has the applicant signed the project application?
" " Has the applicant provided the following additional information?
?? Applicant’s FIPS number for this disaster
?? Applicant’s NFIP participation, status, and compliance history
?? List of all Project Worksheets that relate to this project, if any
Job Aid 6-4
Page 6-8
Hazard Mitigation Grant Program Desk Reference
Section 6: The Application Process
Project Application Checklist (Continued)
2.
Summary Project Information
" " Does the project title adequately describe the proposed measure?
(location and project type)
" " Has the applicant estimated the total cost of the mitigation measure?
" " Has the applicant specified the requested HMGP grant amount
(Federal share)?
" " Confirm and certify that the project is in conformance with the State Mitigation Plan required by
Section 409 of the Stafford Act.
3.
Description of the Problem
" " Has the applicant written a narrative description of the existing problem that includes a brief
narrative description of the existing problem, the location, the source of the hazard, and the
history and extent of the damage?
4.
Description of Applicant’s Decision-Making Process
" " Has the applicant described the process for selecting the project as the best solution to the
problem?
" " Are the alternative approaches that were considered listed?
" " Has it been confirmed that the selection process used by the applicant was sufficient and
included appropriate public notice and involvement?
5.
Project Description
" " Has the applicant written a narrative description of the mitigation measure?
" " Does the application explain how and to what extent the project solves the problem?
" " Is there a detailed scope of work with:
?? Schematic plans and preliminary engineering specifications?
?? Explanation if mitigation measure is a functional part of a bigger project?
?? Property site inventory (especially residential retrofits and acquisitions)?
?? Building construction date, condition, and renovation history?
(if applicable)
?? Maps of site/location (street, plat, flood, topographic)?
Hazard Mitigation Grant Program Desk Reference
Job Aid 6-4
Page 6-9
Section 6: The Application Process
Project Application Checklist (Continued)
5.
Project Description (Continued)
?? Photographs?
?? Work schedule (milestones, start/stop, limitations)?
6.
Project Cost Estimate and Match Source
" " Ensure that the following are provided:
?? An estimate of the total mitigation project budget, including any items to be used as match;
?? Line-items that reflect elements identified in the scope of work; and
?? The source and value of funds to be used for the non-Federal match.
7.
Maintenance Assurance
" " Has the applicant identified any maintenance required to preserve the long-term mitigation
effectiveness of the project?
" " Are maintenance costs and schedules included?
" " Is the entity that will perform the long-term maintenance identified?
" " If the responsible entity is other than the applicant, is a letter attached from the entity accepting
performance responsibility?
8.
Cost-Effectiveness (Risk) Information
" " At a minimum, has the applicant provided the following in order to calculate a “lower bound”
benefit-cost ratio using the FEMA module?
?? Cost of observed damages in declared events (includes PA, IA, NFIP, etc.);
?? Frequency of declared events (years);
?? A verage facility or facility occupancy (24 hours/7 days per week);
?? Building structural type;
?? Total floor area (sf);
?? First finished floor elevation;
?? Annual operating budget for the building or facility.
Job Aid 6-4
Page 6-10
Hazard Mitigation Grant Program Desk Reference
Section 6: The Application Process
Project Application Checklist (Continued)
8.
Cost-Effectiveness (Risk) Information (Continued)
" " Loss of function (time) based on various frequency events;
" " Loss of function ($) based on various frequency events;
" " Annual budget of public or non-profit agencies occupying facility;
" " Total monthly rent from all tenants ($/month); and
" " Estimated net income of commercial businesses ($/month).
9.
Environmental and Historic Review Information
" " Non-construction or ground disturbance projects (e.g., planning, training, education, mapping,
studies, codes development inspection/monitoring) do not require detailed environmental
review.
" " For all other projects, ensure that Environmental Considerations and Review Checklist (Job Aid
8-2, or an equivalent) is completed and attached.
10.
Attachments
" " Review attachments to the application, which may include:
?? PNPs: Tax-exempt certificate and articles of incorporation;
?? Schematic plans and preliminary engineering specifications;
?? Maps of site/location (street, plat, flood, topographic);
?? Photographs;
?? Detailed address list (if multi-site project);
?? Maintenance agreement (if other than applicant responsible for maintenance);
?? Environmental/historic studies and letters.
Hazard Mitigation Grant Program Desk Reference
Job Aid 6-4
Page 6-11
Section 6: The Application Process
State Review Results
By signing the SF 424 and forwarding a project application or summary to FEMA, the State certifies that:
"" The applicant is eligible based on HMGP regulations and guidance.
"" The project is in conformance with the State Mitigation Plan required by Section 409 of the Stafford
Act.
"" The selection process used by the applicant was sufficient and included appropriate public notice and
involvement.
"" The applicant’s project description and proposed scope of work are sufficiently detailed and
documented to determine eligibility based on the HMGP regulations and guidance.
"" The applicant’s costs are accurate, complete, and reasonable compared to industry standards, and
that non-Federal matching funds are or will be available for the project.
"" The maintenance requirements have been sufficiently identified, and the applicant or another
authorized entity has accepted performance responsibility.
"" The applicant’s underlying benefit-cost data is accurate and complete.
"" The environmental information submitted by the applicant is sufficient for FEMA to determine whether
or not the project can be categorically excluded from further environmental review
"" The State as grantee will comply with the standard disaster grant agreement articles (Job Aid 6-6).
.
Job Aid 6-5
Page 6-12
Hazard Mitigation Grant Program Desk Reference
Section 6: The Application Process
Federal Emergency Management Agency Disaster Grant Agreement Articles
Hazard Mitigation Grant Program
ARTICLE I. The United States of America through the Director, Federal Emergency Management Agency
(FEMA) (hereinafter referred to as "the Grantor") or his/her delegate, agrees to grant to the State
Government, through its designated agency named above (hereinafter referred to as "the Grantee") funds in
the amount specified on the obligating document, to support the Hazard Mitigation Grant Program (HMGP)
authorized under the Robert T. Stafford Disaster Relief and Emergency Assistance Act, 42 U.S.C. 5121 et
seq. By signing the Memorandum of Understanding, the Grantee agrees to abide by the grant terms and
conditions as set forth in this document as well as all conditions contained in the FEMA-State Agreement.
ARTICLE II. This agreement takes effect at the time it is executed and the obligating document is signed
and remains in effect until the grant program is completed. Refer to obligating documents for funding
information.
ARTICLE III. The following laws and regulations govern standard grant management practices and are
incorporated into this Agreement by reference. Due to the nature of grant administration following
Presidential declaration of a disaster or emergency, some variance from standard practice may be warranted
upon determination by FEMA.
Public Law 93-288, as amended. Robert T. Stafford Disaster Relief and Emergency Assistance Act, 42
U.S.C. 5121 et seq.
Title 44 of the Code of Federal Regulations (CFR)
44 CFR
Part 13 Uniform administrative requirements for grants and cooperative
agreements to state and local governments
44 CFR
Part 14 Administration of grants: Audits of State and local governments
44 CFR
Part 17 Government-wide debarment and suspension (nonprocurement) and
government wide requirements for drug-free workplace (grants)
44 CFR
Part 18 New restrictions on lobbying
44 CFR
SUBCHAPTER B - Insurance and Hazard Mitigation
44 CFR
SUBCHAPTER C - Fire Prevention and Control
44 CFR
SUBCHAPTER D - Disaster Assistance
44 CFR
Part 7 Nondiscrimination in Federally Assisted Programs
Hazard Mitigation Grant Program Desk Reference
Job Aid 6-6
Page 6-13
Section 6: The Application Process
Federal Emergency Management Agency Disaster Grant Agreement Articles
Hazard Mitigation Grant Program (Continued)
OMB Circular A-110 Uniform Administrative Requirements for Grants and Agreements with institutions of
Higher Education, Hospitals, and Other Non-Profit Organizations
OMB Circular A-102 Uniform Administrative Requirements for Grants and Cooperative Agreements with
State and Local Governments
OMB Circular A-87 Cost Principles for State and Local Governments
OMB Circular A-21 Cost Principles for Educational Institutions
OMB Circular A-122 Cost Principles for Nonprofit Organizations
OMB Circular A-133 Audits of States, Local Governments, and Non-Profit Organizations
Assurances submitted with the SF 424, Application for Federal Assistance
31 CFR 205.6
Funding techniques
ARTICLE IV. The specific terms and conditions of this agreement are as follows:
1.
No transfer of funds to agencies other than those identified in the approved grant agreement shall be
made without prior approval of FEMA. Grantee shall be paid using the HHS SMARTLINK System,
provided Grantee maintains and complies with procedures for minimizing the time between transfer
of funds from the US Treasury and disbursement by the state and subgrantees. The state should
make drawdowns as close as possible to the time of making disbursements.
2.
The Grantee shall submit financial and programmatic reports 30 days after the end of each Federal
quarter following the initial grant award. Reporting dates are: January 30, April 30, July 30, October
30. Final reports are due 90 days after the end of the grant. The FEMA Disaster Recovery Manager
(DRM) may waive the initial report if the disaster occurs too close to the end of the Federal quarter.
The DRM may suspend state drawdowns if quarterly reports are not submitted on a timely basis.
3.
The Grantee shall transfer to FEMA the appropriate share, based on the Federal support
percentage, of any refund, rebate, credit or other amounts arising from the performance of this
agreement, along with accrued interest, if any. The Grantee shall take necessary action to effect
prompt collection of all monies due or which may become due and to cooperate with FEMA in any
claim or suit in connection with amounts due.
4.
Prior to the start of any construction activity, the Grantee shall ensure that all applicable Federal,
State, and local permits and clearances are obtained including FEMA compliance with NEPA.
5.
The Grantee is free to copyright any original work developed in the course of or under the
agreement. FEMA reserves a royalty-free, nonexclusive and irrevocable right to reproduce, publish
or otherwise use, and to authorize others to use, the work for Government purposes. Any publication
resulting from work performed under this agreement shall include an acknowledgement of FEMA
financial support and a statement that the publication does not necessarily reflect FEMA's views.
Job Aid 6-6
Page 6-14
Hazard Mitigation Grant Program Desk Reference
Section 6: The Application Process
Federal Emergency Management Agency Disaster Grant Agreement Articles
Hazard Mitigation Grant Program (Continued)
6.
Per 44 CFR Part 13.50, when FEMA and the state have completed the agreed upon grant activities,
the State shall submit a final financial status report, any required performance reports, a request to
close the program, and any other required forms and certifications within 90 days of completion of
grant activities. FEMA will evaluate grantee reports, perform the necessary financial reconciliation,
make any necessary adjustments, and closeout the grant.
7.
The grant shall be completed within four years of the disaster declaration. Written request for an
extension will include information and documentation to support the amendment and a schedule for
completion. No subsequent grant agreements, monetary increase amendments, or time extension
amendments will be approved unless all overdue final financial or performance reports have been
submitted by the Grantee to the appropriate Regional Office. Exceptions to this policy can be
approved only by the FEMA Regional Director or DRM.
8.
Within his/her authorities, the Governor shall ensure, through the State agency responsible for
regulation of the insurance industry, that insurance companies make full payment of eligible
insurance benefits for damage resulting from a disaster. The State also shall take all responsible
steps to ensure that disaster victims are aware of procedures for filing insurance claims, are informed
of any State procedures instituted for assisting insured disaster victims, and are aware of their
responsibility to repay government assistance which is duplicated by insurance proceeds.
9.
The State agrees, on its behalf and on behalf of its political subdivisions and other recipients of
Federal disaster assistance, to cooperate with the Federal Government in seeking recovery of any
funds expended as a result of fraudulent actions that contributed to those damages which resulted in
a disaster declaration.
10.
The certifications signed by the State on the FEMA-State Agreement relating to maintenance of a
Drug-Free workplace (per 44 CFR Part 17, Subpart F) and New Restrictions on Lobbying (44 CFR
Part 18) apply to this grant agreement and are incorporated by reference.
Hazard Mitigation Grant Program Desk Reference
Job Aid 6-6
Page 6-15
Section 6: The Application Process
Creating the Application in NEMIS
See the NEMIS Software User Manual for detailed guidance on performing the following tasks:
Task
Name of Screen Where Task Is Performed
1.
Applicant Information: Enter name, contact
information, category of eligible subgrantee,
and signature.
Applicant Information
2.
Description of the Problem: Describe the
problem and your decision-making process,
including alternative measures considered.
Supply risk information for costeffectiveness.
Problem & Risk
3.
Describe the scope of the mitigation
measure. Explain how and to what degree
the project solves the problem. Describe the
existing environment in the project area.
Attach environmental information here.
Project Information
4.
Provide work schedule including significant
milestones.
Work Schedule
5.
Include location, age of structure, and
expected impact of project on
environmental, archaeological, or historic
conditions.
Property Site Inventory
6.
Provide a detailed line-item budget that is
based on industry standards and specifies
unit costs.
Cost Estimate
7.
Identify source and value of non-Federal
match.
Match Sources
8.
Provide maintenance schedule, costs, and
assurances of implementation.
Maintenance Assurance
9.
Scan and/or attach all supporting
documentation.
Attachments
10. Identify details of public notice actions.
Public Notice
11. Provide results of thorough State review of
project eligibility.
Eligibility Review
12. Signature of State submission.
Authorization
Job Aid 6-7
Page 6-16
Hazard Mitigation Grant Program Desk Reference
Section 7: Project Eligibility
Section 7: Project Eligibility
Contents
Eligible Types of Projects ................................................................................................................. 7-1
NEMIS Project Codes ...................................................................................................................... 7-1
Ineligible Projects ............................................................................................................................ 7-1
Retrofitting Places of Worship.................................................................................................. 7-1
Projects in Progress................................................................................................................ 7-2
Five Minimum Criteria for Project Eligibility ........................................................................................ 7-2
Conforms With State Hazard Mitigation Plan ............................................................................ 7-2
Provides Beneficial Impact Upon Designated Disaster Area....................................................... 7-2
Conforms With Environmental Laws and Regulations ................................................................ 7-3
Solves a Problem or Is a Portion of a Solution .......................................................................... 7-3
Demonstrates Cost-Effectiveness ............................................................................................ 7-4
Other Eligibility Factors .................................................................................................................... 7-4
Contributes to a Long-Term Solution ........................................................................................ 7-4
NFIP Participation................................................................................................................... 7-4
Duplication of Programs .......................................................................................................... 7-5
Applicant Agreement to Property Acquisition Requirements....................................................... 7-5
The 5% Initiative .............................................................................................................................. 7-6
A Proposal’s Second Chance.................................................................................................. 7-7
Examples of 5% Initiative Projects ........................................................................................... 7-7
Eligibility of Phased Projects............................................................................................................. 7-7
Pre-Screening Process ........................................................................................................... 7-8
Phase I Conditional Approval................................................................................................... 7-8
Phase II Approval–Construction Process.................................................................................. 7-9
Job Aid 7-1: NEMIS Project Codes................................................................................................. 7-10
Hazard Mitigation Grant Program Desk Reference
Section 7: Project Eligibility
Eligible
Types of
Projects
To be eligible for funding under the HMGP, proposed measures
must meet the minimum project criteria under 44 CFR 206.434(b).
These criteria are designed to ensure that the most appropriate
projects are selected for funding.
44 CFR 206.434(b)
Projects may be of any nature that will result in protection of public
or private property from natural hazards. Some types of projects
that may be eligible include:
"" Acquisition of hazardprone property and conversion to open space;
"" Retrofitting existing buildings and facilities;
"" Elevation of floodprone structures;
"" Vegetative management/soil stabilization;
"" Infrastructure protection measures;
"" Stormwater management;
"" Minor structural flood control projects; and
"" Post-disaster code enforcement activities.
NEMIS
Project
Codes
Ineligible
Projects
FEMA will process the grant program through the National Emergency Management
Information System.
The State should include the appropriate NEMIS project code (see Job
Aid 7-1) when submitting applications for potential HMGP projects.
Applicants may also propose project types not listed in the NEMIS codes
Job Aid 7-1
for funding consideration.
The following types of projects are not eligible under the HMGP:
"" Retrofitting places of worship (or other projects that solely benefit religious
organizations); and
"" Projects in progress.
The paragraphs below discuss these project types in greater detail.
Retrofitting
Places of
Worship
FEMA does not provide grants for the purpose of retrofitting places of religious worship
(or other projects that solely benefit religious organizations), because the retrofit
program is indistinguishable from the direct cash grant programs that are uniformly
forbidden by the United States Government.
However, an eligible applicant (such as a local government) could include the
acquisition of a church in its application where the whole community, not just the
church, is the beneficiary.
Hazard Mitigation Grant Program Desk Reference
Page 7-1
Section 7: Project Eligibility
Projects in
Progress
Five
Minimum
Criteria for
Project
Eligibility
HMGP funds are not available for projects already in progress. The funding is
reserved for measures that arise from the disaster that generates those funds or for
not-yet-initiated projects that have been previously identified in a hazard mitigation
plan. FEMA and the State cannot meet the requirements of the National
Environmental Policy Act if construction has already begun. The Regional Director
may grant exceptions for certain projects that can be categorically excluded under
NEPA if the work started after the disaster declaration.
There are five minimum criteria that all projects must meet in order to be considered for
funding:
"" Conforms with the State Hazard Mitigation Plan;
"" Provides beneficial impact upon the designated disaster area;
"" Conforms with environmental laws and regulations;
"" Solves a problem independently or constitutes a functional portion of a solution;
and
"" Is cost-effective.
The paragraphs below describe each of these criteria in greater detail.
Conforms
With State
Hazard
Mitigation
Plan
Conformance with the State Hazard Mitigation Plan ensures that the proposed
measure is in keeping with statewide mitigation strategies. In some cases, the
proposed measure may be pre-identified within the existing plan.
If the State’s Hazard Mitigation Plan is current, the State is poised for the quickest
project approval path. FEMA requires only that these States review and update the
existing plans based upon the disaster event.
A State that lacks a current plan may be required to submit a new or expanded postdisaster Hazard Mitigation Plan.
"
Provides
Beneficial
Impact Upon
Designated
Disaster Area
Page 7-2
TIP: Refer to Section 2 for more information.
The designated disaster area comprises those counties designated in the disaster
declaration as eligible for HMGP funds. Note that the areas designated for HMGP
availability is not limited to the areas eligible for Individual or Public Assistance. Upon
State request, all counties in the State may be designated as eligible for HMGP funds
in the declaration.
Hazard Mitigation Grant Program Desk Reference
Section 7: Project Eligibility
Conforms
With
Environmental
Laws and
Regulations
In an effort to protect the environment, all projects must undergo a review process to
ensure compliance with applicable environmental laws, regulations, and E.O.s,
including but not limited to:
44 CFR Parts 9
and 10
Solves a
Problem or Is
a Portion of a
Solution
Approved projects must either solve a site-specific problem or be an element of a
larger solution where there is assurance of project completion. A study plan that
simply analyzes a problem or identifies a problem without a funded, scheduled,
implementation program will not be eligible for HMGP funding.
Examples of projects that solve a problem independently include:
"" A project to elevate 6 houses in a neighborhood of 20 houses, would meet this
criterion because the damage to those structures would be reduced or prevented.
"" A three-phase project to 1) study the feasibility of, 2) design, and 3) construct a
series of drainage improvements in a small community.
"" A project to delineate local high-hazard areas, tied to a local ordinance restricting
development and construction in the identified zones.
Examples of projects that do not solve a problem independently include:
"" A project to map a hazard area without any connection to implementing measures
to reduce the risk of damage in the mapped area.
"" A feasibility study with no provisions for implementing the results.
"" The development of a community mitigation plan.
Hazard Mitigation Grant Program Desk Reference
Page 7-3
Section 7: Project Eligibility
Demonstrates
CostEffectiveness
"
Other
Eligibliity
Factors
Projects funded by the HMGP must be cost-effective. 44 CFR lists a
number of minimum criteria that projects must meet in order to be eligible
for funding under the HGMP. Among these is that projects must be “cost
effective and substantially reduce the risk of future damage, hardship,
loss, or suffering resulting from a major disaster.”
44 CFR
TIP: See the benefit-cost guidance and training for
complete information.
In addition to the five minimum eligibility criteria, the following factors are also
considered when determining project eligibility:
"" Contributes to a long-term solution;
"" National Flood Insurance Program participation; and
"" Duplication of programs.
"" Applicant agreement to property acquisition requirements.
Contributes to
a Long-Term
Solution
Mitigation measures funded under the HMGP are intended to provide a long-term or
permanent solution. Ideally, the measure would be effective for the life of the property
being protected.
Erecting an emergency berm on a beach to prevent wave damage to structures is a
short-term solution, as opposed to a long-term solution, such as elevation or relocation
of the structures.
NFIP
Participation
HMGP funds for construction or land acquisition cannot be awarded in certain
communities which do not participate in the National Flood Insurance Program (NFIP).
Federal grants cannot be given for acquisition or construction purposes if the site is
located in a designated Special Flood Hazard Area which has been identified by the
Director for at least 1 year and the community is not participating in the NFIP. This
includes communities suspended from participation.
If a community with mapped Special Flood Hazard Areas qualifies for and enters the
program after the disaster declaration, the State may consider their grant application.
FEMA recommends that States give priority to those communities that were
participating and in good standing in the NFIP prior to the disaster and are complying
with program requirements during reconstruction.
Non-participating communities may submit projects to the HMGP only if the projects
are located in unmapped areas or areas outside of the Special Flood Hazard Area.
Page 7-4
Hazard Mitigation Grant Program Desk Reference
Section 7: Project Eligibility
NFIP
Participation
(Continued)
The project
must be
located in a
participating
community.
In some cases, the applicant may be in compliance with this criterion even if the
applicant does not participate in the NFIP. An example follows:
A non-participating county is interested in relocating a school building presently in a
Special Flood Hazard Area. The city (and not the county) has floodplain management
authority over the land on which the school is located. The county owns the land and
would retain its title. It would dedicate the land to open-space use after relocation of
the school building. Although the county is not a participating community, it is the city,
which is a participating community, that has jurisdiction over the land. The project is
eligible because the jurisdiction with floodplain management over the project site is
participating in the NFIP.
If a project is sited within a mapped special flood hazard area of a community that
does not participate in the NFIP, the proposed project is not eligible regardless of who
the applicant is. An example follows:
A non-profit organization proposes a project sited within a Special Flood Hazard Area
of a community that does not participate in the NFIP. Even though the applicant is an
entity separate from the non-participating community, the non-profit organization does
not possess land use authority. Their proposed project would not be eligible because
the applicable community is not participating.
Duplication of
Programs
The HMGP provides an opportunity to fund measures that cannot be funded under
other authorities. HMGP funds can be packaged with other funds, but are not intended
to be used as a substitute for other available program authorities. Other programs and
authorities should be examined before application to this program is made. Available
program authorities include other FEMA programs, such as the Public Assistance
Program, and programs under other Federal agencies, such as the U.S. Army Corps of
Engineers and the Natural Resources Conservation Service.
However, project applications that have been denied funding by other Federal
programs may be submitted for consideration by the HMGP.
Applicant
Agreement to
Property
Acquisition
Requirements
Applicant communities will certify in their application for property acquisition projects
that they understand the restrictions for future use of the acquired land. Also, they will
consult with the U.S. Army Corps of Engineers (USACE) to ensure no flood damage
reduction levees (including berms, floodwalls, or dikes) are under consideration for the
area.
The construction of flood damage reduction levees on these lands is incompatible with
open space uses and, therefore, will not be allowed. This restriction generally does
not apply to structures for ecosystem preservation, restoration, or enhancement.
Local governments will consult with USACE, prior to submittal of the HMGP project
application, to address and consider the potential future use of the proposed
acquisition project area for the construction of a USACE flood damage reduction levee.
If the local government dismisses consideration of a future flood damage reduction
levee in that area, the local government may submit to FEMA, through the State, an
HMGP application for an open space acquisition project. This application must include
the assurances discussed below.
Hazard Mitigation Grant Program Desk Reference
Page 7-5
Section 7: Project Eligibility
Applicant
Agreement to
Property
Acquisition
Requirements
(Continued)
If this initial level of consultation indicates that the local government wishes to consider
a flood damage reduction levee in the area, the local government must then undertake
an expanded consultation process with the State, FEMA, and USACE. The
consultation will involve the identification and full consideration of future potential land
use conflicts to enable the local government to make an informed decision regarding
how it should proceed. There may be situations where the local government may be
able to pursue both the open space acquisition and flood damage reduction levee
projects without any land use conflicts (i.e., the levee will not cross acquired land). If,
however, the local government determines that such conflicts cannot be resolved and
chooses to pursue the USACE flood damage reduction levee, the local government
must notify FEMA, through the State that it will not submit an HMGP application for
open space acquisition.
If the local government decides to pursue an acquisition project following the
consultation process, it will include in its application formal assurances, a resolution or
a comparable document, adopted by the governing body of the local government that
indicate:
1.
The local government understands that land acquired for open space purposes
under the HMGP will be restricted in perpetuity to open space uses and will be
unavailable for construction of flood damage reduction levees; and
2.
In consultation with USACE, the local government has addressed and considered
the potential future use of these lands for the construction of flood damage
reduction levees, and has chosen to proceed with acquisition of permanent open
space.
The State and FEMA will not entertain an HMGP application for an open space
acquisition project unless the local government provides these formal assurances with
its application.
"
The 5%
Initiative
TIP: See Section 11 for details on property
acquisition project implementation
requirements and allowable open space uses.
Some hazard mitigation measures are difficult to evaluate against traditional program
cost-effectiveness criteria. Up to 5 percent of the total HMGP funds may be set aside
by the State to pay for measures such as these.
To be eligible for the 5% Initiative, measures must:
"" Be identified in the State Hazard Mitigation Plan as a measure that would reduce
or prevent damage to property or prevent loss of life or injury;
"" Be submitted for review with a narrative rationale that identifies the mitigation
benefits and indicates that there is a reasonable expectation that future damage or
loss of life or injury will be reduced or prevented; and
"" Comply with any other applicable HMGP eligibility criteria, and Federal, State, and
local laws and ordinances.
Page 7-6
Hazard Mitigation Grant Program Desk Reference
Section 7: Project Eligibility
The 5%
Initiative
(Continued)
"
TIP: See page 9-2 for the contents of the narrative
cost -effectiveness review.
A Proposal’s
Second
Chance
The 5% Initiative, like all HMGP funds, should not be used as a substitute for other
Federal programs. Projects that fall under the responsibilities of other Federal
agencies are not eligible.
Examples of
5% Initiative
Projects
Types of projects that could be funded under the 5% Initiative include:
"" The use, evaluation, and application of new, unproven mitigation techniques,
technologies, methods, procedures, or products that are developmental or
research based;
"" Equipment and systems for the purpose of warning residents and officials of
impending hazard events;
"" Hazard identification or mapping and related equipment that are tied to the
implementation of mitigation measures;
"" Geographical Information System software, hardware, and data acquisition whose
primary aim is mitigation;
"" Public awareness or education campaigns about mitigation; and
"" Other activities, clearly falling under the goal of mitigation, for which benefits are
unproven or not clearly measurable and which the State has listed as a priority in
its Hazard Mitigation Plan.
Eligibility of
Phased
Projects
It is sometimes beyond the applicant’s technical and financial resources to provide the
complete technical information required for a full eligibility or environmental review of a
complex project. The State and Region may provide technical assistance to the
applicant to develop this complete body of technical data by approving an application
to complete a Phase I design, engineering, environmental, or feasibility study.
The Phase I study provides FEMA with a technical body of information mutually
concurred on by the applicant, the State, and FEMA to determine project eligibility. If
the results of the Phase I review indicate that the project meets benefit-cost, floodplain
management, and environmental review requirements, the project would then be
eligible for funding for construction under a Phase II approval. Phase I study funding is
part of the project’s total estimated cost, and is subject to the 75/25 cost-share.
The following provides guidelines and outlines the process for selecting projects for
Phase I/Phase II project approval.
Hazard Mitigation Grant Program Desk Reference
Page 7-7
Section 7: Project Eligibility
Pre-Screening
Process
Phase I
Conditional
Approval
Page 7-8
The project must meet the following pre-screening criteria for a conditional Phase I
approval in the following sequence:
1.
State Mitigation Plan - The proposed project must be in conformance with the
State’s Mitigation Plan.
2.
Justification for Selection of the Proposed Project - 44 CFR requires
that the applicant provide justification for the selection of the proposed
solution after consideration of a range of options.
44 CFR
3.
Potential Cost-Effectiveness - The project demonstrates potential costeffectiveness based on a preliminary assessment of anticipated project benefits
and cost. This preliminary assessment may include the use of FEMA’s limited
data module. It is imperative that the applicant is aware that this preliminary
assessment is solely for the purpose of the Phase I pre-screening process and is
not the final cost-effectiveness determination.
4.
Environmental Review - Initial environmental review to identify major NEPA
compliance issues. The Phase I study is categorically excluded from NEPA
review.
5.
Hydrologic and Hydraulic or Other Relevant Technical Data - The applicant
provides available hydrologic and hydraulic data based on existing models.
The State and Region may approve projects meeting the above pre-screening
requirements for technical assistance under a Phase I conditional approval. FEMA
and the State will coordinate closely to ensure mutual concurrence on all data and
technical information as the Phase I technical review process proceeds. The
sequence for the process is as follows:
1.
Hydrologic and Hydraulic or Other Relevant Technical Data – If appropriate, the
State and FEMA will review the hydrologic and hydraulic or other technical data
provided by the applicant.
2.
Revised Engineering Design - Based upon the technical data, the applicant
develops a preliminary engineering design and layout and cost estimates with
ad hoc technical assistance from the State and FEMA. The applicant’s design and
costing must meet State and FEMA approval before proceeding with the benefitcost analysis.
3.
Executive Order 11988 – If applicable, based upon the technical data and revised
engineering design, the project must demonstrate compliance with floodplain
management requirements under this Executive Order (E.O.). If a flood map
amendment or revision is necessary, the State and FEMA will provide the
applicant with technical assistance to meet this requirement.
Hazard Mitigation Grant Program Desk Reference
Section 7: Project Eligibility
Phase I
Conditional
Approval
(Continued)
Phase II
Approval—
Construction
Process
4.
Refinement of the Cost-Effectiveness Determination - Based upon the revised
design and cost estimates, the State and FEMA will refine the preliminary
determination of cost-effectiveness conducted in the Phase I pre-screening
process. This will result in a final benefit-cost ratio to evaluate the project’s costeffectiveness.
5.
Environmental Review – The State and FEMA will conduct an environmental
review of the revised project design to ensure compliance with NEPA. This
includes an evaluation of other resources such as wetlands, endangered species,
and historic structures. The project will meet environmental review requirements
before Phase II approval.
If the project is determined to be eligible, technically feasible, cost-effective, and
compliant with E.O. 11988 and 11990 and NEPA/Historic Preservation requirements
under the Phase I technical review, the project may then be approved for construction
under Phase II.
Hazard Mitigation Grant Program Desk Reference
Page 7-9
Section 7: Project Eligibility
NEMIS Project Codes
Note: This also includes projects eligible only under the 5% Initiative.
Stormwater Management - Diversions
Public Awareness and Education (brochures, workshops, videos, etc.)
Professional Education (Building Inspectors, Architects, Engineers, Contractors, etc.)
Mitigation Plans - Storm Water/Drainage Management Plans
Mitigation Plans - Land Use Planning Resulting in Revised Land Development Regulations
Mitigation Plans - Vegetation Management
Feasibility, Engineering and Design Studies
Developing, Implementing and Enforcing Codes, Standards, Ordinances and Regulations
Applied Research and Development in the Building Sciences
Retrofitting Private Structures -- Wildfire
Retrofitting Public Structures -- Wildfire
Non-Structural Retrofitting Private Structures -- Seismic
Non-Structural Retrofitting Public Structures -- Seismic
Structural Retrofitting Private Structures -- Seismic
Structural Retrofitting Public Structures -- Seismic
Retrofitting Private Structures -- Wind
Retrofitting Public Structures -- Wind
Vegetation Management - Natural Dune Restoration
Vegetation Management - Wildfire
Vegetation Management - Wind
Vegetation Management - Non Coastal Shoreline Stabilization
Vegetation Management - Landslide Stabilization
Shoreline Stabilization (riprap, etc.)
Landslide Stabilization
Wetland Restoration/Creation
Utility Protective Measures (electric, gas, etc.)
Job Aid 7-1
Page 7-10
Hazard Mitigation Grant Program Desk Reference
Section 8: Environmental Review
Section 8: Environmental Review
Contents
Compliance With Environmental Laws and Regulations and Executive Orders .................................... 8-1
What is the National Environmental Policy Act (NEPA)? ............................................................ 8-1
The Environmental Review Process......................................................................................... 8-1
Roles, Responsibilities, and Information Collection ............................................................................ 8-2
Roles and Responsibilities....................................................................................................... 8-2
Information Collection ...................................................................................................................... 8-2
Categorical Exclusions ..................................................................................................................... 8-3
Consideration of Extraordinary Circumstances .......................................................................... 8-3
Environmental Assessments and Environmental Impact Statements .......................................... 8-4
Coordinating With Other Agencies ........................................................................................... 8-4
Managing States..................................................................................................................... 8-4
NEPA Compliance Exception ........................................................................................................... 8-4
Other Compliance Considerations............................................................................................ 8-5
Review Under Other Environmental Laws and Executive Orders ........................................................ 8-5
National Historic Preservation Act............................................................................................ 8-5
Clean Water Act—U.S. Army Corps of Engineers Permits ......................................................... 8-5
Compliance With Executive Orders 11988 and 11990 ............................................................... 8-6
Requirements for Public Notice................................................................................................ 8-6
Implementation of E.O. 12898 Concerning Environmental Justice.............................................. 8-7
Job Aid 8-1: FEMA’s NEPA Environmental Review Process .............................................................. 8-8
Job Aid 8-2: Environmental Considerations and Review Checklist...................................................... 8-9
Job Aid 8-3: List of CATEXes and Required Documentation ............................................................ 8-13
Hazard Mitigation Grant Program Desk Reference
Section 8: Environmental Review
Compliance
With
Environmental Laws
and
Regulations
and
Executive
Orders
What is the
National
Environmental Policy
Act (NEPA)?
For any project submitted for funding, prior to initiation of the project, FEMA must
undertake a review under the requirements of the National Environmental Policy Act
(NEPA), as well as other applicable Federal environmental laws and Executive orders.
The FEMA project review process includes a number of steps; this section highlights
only the environmental review step.
In each FEMA region there is a Regional Environmental Officer (REO), who is the
primary point of contact for all matters regarding the National Environmental Policy Act
(NEPA), and environmental and historic compliance. The REO should be consulted
regarding specific documentation requirements, policies, and approval processes.
NEPA is a Federal law that establishes a national policy for the protection and
maintenance of the environment. It provides a broad planning process which all
Federal agencies must follow to ensure that:
"" The Federal agency has considered the effects of their actions on the environment
before deciding to fund and implement a proposed action.
"" Environmental information is made available to other public officials and citizens
before agency decisions are made and before actions are taken.
"" For the NEPA administrative documentation process, FEMA will make a
determination if the project:
?? Qualifies to be categorically excluded (CATEX) from a more detailed NEPA
review,
?? Requires an Environmental Assessment (EA), or
?? Requires an Environmental Impact Statement (EIS).
"" The EA and EIS are the NEPA documents that record the Agency’s evaluation of
the environmental impacts of the project and its viable alternatives.
Projects require full compliance under other environmental laws regardless of the level
of NEPA review or documentation.
The
Environmental
Review
Process
44 CFR Part 10 contains FEMA’s regulations for implementing NEPA.
This section provides guidance for complying with NEPA, other
environmental laws and regulations, and Executive orders.
44 CFR Part 10
FEMA’s NEPA review process is outlined in Job Aid 8-1. All projects that
are considered for Federal funding will be reviewed according to NEPA
and other environmental laws. The review for other environmental laws
is not depicted in Job Aid 8-1. The information and compliance process
for these other laws is incorporated into the NEPA review process and
document, so that it occurs simultaneously.
Job Aid 8-1
Hazard Mitigation Grant Program Desk Reference
Page 8-1
Section 8: Environmental Review
Roles,
Responsibilities, and
Information
Collection
Roles and
Responsibilities (see 44
CFR 10.7(c))
Successful completion of environmental review requires the full
participation of all of the HMGP partners: Applicants, States, and FEMA.
In support of FEMA’s environmental review, applicants and States undertake the
following roles:
"" Consult appropriate agencies during planning stages.
"" Consider viable alternatives to the proposed project, particularly when
environmental issues or impacts are identified.
"" Provide thorough and accurate information regarding details of projects, and
environmental issues or resources in the project area.
"" Conduct studies which are deemed necessary and appropriate to determine
impacts.
"" Inform the public of the applicants’ proposals and inform FEMA of potentially
controversial issues or interested parties.
Managing States undertake a greater role in environmental review by taking on greater
responsibility to ensure the completeness and accuracy of environmental information,
provide qualified staff to make recommendations to FEMA, and undertake greater
coordination with environmental agencies and the public.
FEMA’s role is to provide technical assistance to applicants and States,
where necessary. FEMA is involved in coordination with other Federal
agencies, when potential impacts are identified. FEMA is responsible for
environmental review and must review and approve all environmental review
documents and ensure compliance with all Federal environmental laws.
Job Aid 8-2 contains an Environmental Considerations and Review
Checklist, which can be used by States as a tool to assist FEMA with the
environmental review.
Information
Collection
"
Page 8-2
Job Aid 8-2
Applicants are responsible for providing most of the necessary information to complete
environmental review under the NEPA and other laws and Executive orders. States,
particularly Managing States, take an active role in assisting applicants to prepare
adequate environmental information and analysis. FEMA may assist applicants and
States with technical assistance, as necessary, to complete environmental analysis.
TIP: See the HMGP Applicant Handbook for greater
detail on specific information needs.
Hazard Mitigation Grant Program Desk Reference
Section 8: Environmental Review
Information
Collection
(Continued)
To greatly facilitate FEMA’s environmental review, the applicant and State should
gather factual information, resource maps, and comments from relevant
environmental agencies and the public that addresses the environment in the project
area, including:
"" Previously undisturbed land that may be affected by the project.
"" Waterways, water bodies, floodplains/floodways, potential wetland areas, and
water quality.
"" Vegetated areas or areas of habitat, and threatened or endangered species.
"" Archeological, historical or cultural resources.
"" Hazardous and toxic materials.
"" Other sensitive natural areas, such as groundwater acquifers, barrier islands, wild
and scenic rivers, and prime and important farmland.
"" Low income and minority populations and socio-economic concerns.
Categorical
Exclusions
The majority of HMGP actions have very low potential to result in significant impacts,
and thus have been excluded from the need to prepare extensive NEPA analytic
documents (the Environmental Assessment and the Environmental Impact
Statement). These actions can be Categorically Excluded (CATEX) if the action
corresponds to a listed CATEX category. This review can be satisfied by relatively
simple documentation.
To qualify for a CATEX a project must not involve any “extraordinary
circumstances” and must comply with all other environmental laws. A list
of CATEXes are provided in Job Aid 8-3.
"
Consideration
of
Extraordinary
Circumstances
"
Job Aid 8-3
TIP: See 44 CFR Part 10.8 and Job Aid 8-3 for a list
of categorical exclusions.
In some cases, an action that normally is categorically excluded may involve
extraordinary circumstances. In situations where an extraordinary circumstance is
identified, an EA may be prepared.
TIP: See 44 CFR Part 10.8 for a list of extraordinary
circumstances that may trigger further review.
Hazard Mitigation Grant Program Desk Reference
Page 8-3
Section 8: Environmental Review
Consideration
of Extraordinary
Circumstances
(Continued)
Environmental
Assessments
and
Environmental
Impact
Statements
Extraordinary circumstances address issues such as high public controversy, unusual
projects, or projects with a potential to affect critical or special status resources.
The levels of documentation required for various CATEXed actions are
shown in Job Aid 8-3. The REO is the approving official for CATEXs.
The REO should be consulted regarding specific documentation
requirements and delegation of approval authority for certain levels of
CATEXs.
Job Aid 8-3
If FEMA determines that a project does not qualify for a CATEX, the FEMA Regional
Office, in coordination with the applicant and State, will prepare an analysis of impacts
called the Environmental Assessment (EA), to determine whether the proposed
project has potential to cause significant environmental impact.
If no significant impact is anticipated, FEMA will prepare a Finding of No Significant
1
Impact, signed by the REO in most regions. If significant impact is anticipated, then
the State and FEMA will prepare an Environmental Impact Statement in coordination
with the FEMA Environmental Officer.
There are very specific EIS requirements identified in 44 CFR Part 10 and the Council
on Environmental Quality’s regulations at 40 CFR parts 1500-1508. An EIS is a much
more extensive evaluation of the impacts of the proposed project and all reasonable
alternatives. Rigorous public involvement is required.
Coordinating
With Other
Agencies
Managing
States
NEPA
Compliance
Exception
When an EA or EIS is prepared, FEMA coordinates affected Federal,
State, and local agencies and concerned groups. This coordination is
required by FEMA regulations 44 CFR 10.9(c), 10.10 and the Council
on Environmental Quality regulations 40 CFR Parts 1500-1508.
44 CFR 10.9(c)
and 10.10
In some cases, Managing States will undertake a greater role in the preparation of
EAs and EISs by conducting more extensive analysis and preparation of documents.
FEMA retains final approval authority.
With rare exception, actions initiated and/or completed without fulfilling the specific
documentation and procedural requirements of NEPA will not be considered for
funding. The rare exception might be actions that were initiated in an emergency
situation to prevent or reduce an immediate threat to life, health, property, or severe
economic losses, if otherwise eligible.
The FEMA Regional Director will consult with the REO in such cases. Further
consultation with the FEMA Environmental Officer and the Council on Environmental
Quality may be necessary for a final decision.
1
In most regions, the REO has been delegated this authority; if there is no REO, then the FEMA EO at headquarters is the approving official for
EAs and EISs.
Page 8-4
Hazard Mitigation Grant Program Desk Reference
Section 8: Environmental Review
Other
Compliance
Considerations
Review
Under Other
Environmental Laws and
Executive
Orders
National
Historic
Preservation
Act
Even actions that qualify for a categorical exclusion must comply with other Federal
statutes, such as, but not limited to, the Endangered Species Act, the Clean Water
Act, the National Historic Preservation Act, etc., as well as Executive orders on
Floodplains, Wetlands, and Environmental Justice.
This section presents a brief overview of the laws and Executive orders most
frequently encountered when reviewing HMGP projects. There are many other laws
that may be relevant to a particular project.
Section 106 of the National Historic Preservation Act requires that Federal agencies
“take into account the effect of the undertaking [proposed project] may have on any
district, site, building, structure, or object that is included in or eligible for inclusion in
the National Register [of Historic Places].” FEMA, in coordination with the State
Historic Preservation Officer (SHPO), must identify resources in the area that may be
affected by the proposed HMGP project and identify effects of the actions. FEMA
must then obtain concurrence from the SHPO on the eligibility of the identified
resource and the potential to affect them. If there are adverse effects, FEMA, in
cooperation with the applicant and Grantee, enters into consultation with the SHPO
on ways to avoid or mitigate effects to cultural resources and develop a projectspecific agreement with the SHPO that identifies the agreed-upon measures to
mitigate effects. FEMA may consult the Advisory Council on Historic Preservation in
some situations.
Responsibility for compliance with the National Historic Preservation Act lies with the
Federal agency funding the project, in this case; it is FEMA. However, there may be
Programmatic Agreements in effect for certain disasters or States that reassign
responsibility for various aspects of compliance. In any case, applicants and States
assist FEMA in carrying out responsibilities under the Act.
In Managing States, the State may take a greater proactive role in identifying historic
properties and potential effects.
Clean Water
Act—U.S. Army
Corps of
Engineers
Permits
All projects that may affect streams, rivers, lakes, oceans, wetlands, or any waters of
the U.S., may require a U.S. Army Corps of Engineers Clean Water Act permit to
proceed. In these cases, the applicant should work with the U.S. Army Corps of
Engineers to develop the project and consider alternatives to avoid impacts to
wetlands and other significant resources.
Hazard Mitigation Grant Program Desk Reference
Page 8-5
Section 8: Environmental Review
Compliance
With Executive
Orders 11988
and 11990
Executive Orders 11988, Floodplain Management, and 11990,
Protection of Wetlands, require FEMA to ensure that an eight-step
decision-making process is completed for proposed actions that are
located in or affect a floodplain or wetland. The State will assist FEMA
in complying with the eight-step process. The steps in the process, as
defined in 44 CFR Part 9, are:
Requirements
for Public
Notice
Executive Orders 11988 and 11990 require FEMA and the State to notify the public of
most actions affecting floodplains or wetlands. In certain instances, other projects
may require a public notice if controversy or sensitive environmental issues are
involved. The State and FEMA program staff should always consult the Regional
Environmental Officer if a question arises.
44 CFR
Part 9
Notification should occur, in coordination with applicants and States, when the project
is initially developed (initial notice) and at the end of the review phase (final notice),
prior to action. A disaster-wide notice is appropriate for some situations. A public
meeting may be appropriate if homeowners or controversy are involved.
Executive Order 12898, discussed on the following page, requires
that FEMA notify and involve affected low-income and minority
populations.
FEMA’s NEPA regulations recommend a public notice of a Finding of
No Significant Impact in some situations. See 44 CFR 10.9(e).
Page 8-6
44 CFR 10.9(e)
Hazard Mitigation Grant Program Desk Reference
Section 8: Environmental Review
Implementation of E.O.
12898
Concerning
Environmental
Justice
Executive Order 12898, “Federal Actions to Address Environmental Justice in Minority
Populations and Low-Income Populations,” directs each Federal agency to identify
and address, as appropriate, disproportionately high and adverse human health or
environmental effects of its programs, policies, and activities on minority populations
and low-income populations.
Hazard Mitigation Grant Program Desk Reference
Page 8-7
Section 8: Environmental Review
FEMA’s NEPA Environmental Review Process
Preliminary Coordination
and Education
Identify Proposed Action
and Connected Actions
Statutory
Exclusion
(P.L. 93-288
Sect. 312)
44 CFR 10.8(c)
Yes
Determine
Level of
NEPA Review
Categorical
Exclusion
(44 CFR Part 10.8(d))
Environmental
Assessment
(44 CFR Part 10.9)
Extraordinary
Circumstances?
(44 CFR Part
10.8(d)(3))
Significant
Impacts or
Controversy?
No
Yes
Environmental
Impact
Statement
(44 CFR
Part 10.8(b))
Yes
No
Administrative
Record
Finding of No
Significant Impact
Record of
Decision
Agency Action
Agency Action
Agency Action
Job Aid 8-1
Page 8-8
Hazard Mitigation Grant Program Desk Reference
Section 8: Environmental Review
Environmental Considerations and Review Checklist
Projects funded under the Hazard Mitigation Grant Program must comply with certain environmental
requirements. The first step is to collect and analyze environmental information to ensure compliance
with other environmental laws.
Second, the information and evaluation for compliance with other environmental laws is essential to
determine the appropriate level of NEPA review. If the project falls within the scope of a CATEX
category, the environmental information and evaluation of compliance with other laws will be used to
determine if any extraordinary circumstance are present. If the project meets all requirements for the
CATEX, NEPA CATEX review is documented as appropriate for the three CATEX levels. Otherwise, a
more extensive review of the information analysis is completed as part of an EA or EIS.
Information received as part of the application submittal should be categorized in the following
issue/resource/compliance areas. Federal or State agencies, such as a State Department of natural
Resources or the State Historic Preservation Office, may have information pertinent to the potential
environmental resources in the project areas and impacts of the project. Phone records or letters or
response should be included in the submittal package. Information provided in this analysis should be as
complete and thorough as possible to expedite approval. “Yes” or “no” answers may not be sufficient
without a supporting explanation. Both beneficial and adverse impacts should be addressed.
Job Aid 8-2
Hazard Mitigation Grant Program Desk Reference
Page 8-9
Section 8: Environmental Review
Environmental Considerations and Review Checklist (Continued)
The checklist below is based on the information you will need to provide to the NEMIS system. For each
issue, you will need to determine the status by identifying the most appropriate response:
"" Not the project area;
"" In the project area with no effect;
"" Presence in area undetermined;
"" In project area—effect unknown;
"" Adverse effect.
For each issue you must determine if the analysis should include supporting documentation such as
maps and studies.
Issue
Aquatic and Terrestrial Biotic Resources
Consultations
Consult with:
" " Appropriate State agency
" " U.S. Fish and Wildlife Service
" " National Marine Fisheries Services
Archeological or Cultural Resources
Consult with:
" " Local historical society
" " State Historic Preservation Office
Coastal Zone Management and Coastal Barriers
Consult with:
" " Appropriate State agency
" " U.S. Fish and Wildlife Service
" " National Marine Fisheries Service
Designated Floodplain/ Floodway
Consult with:
" " Local floodplain administrator
" " Appropriate State agency
" " FEMA
Hazardous Materials
Consult with:
" " Appropriate State agency
" " Environmental Protection Agency
Historic Structures
Consult with:
" " State Historic Preservation Officer
" " Local historical society
" " National Register of Historic Places
Job Aid 8-2
Page 8-10
Hazard Mitigation Grant Program Desk Reference
Section 8: Environmental Review
Environmental Considerations and Review Checklist (Continued)
Issue
Hydrology/ Hydraulics
Consultations
Consult with:
" " Appropriate State agency
" " FEMA
" " USACE
" " NRCS
Land Use/ Development
Patterns
Consult with:
" " Appropriate State agency
" " Regional Planning Commissions
Local Economy/
Community Services
Consult with:
" " Appropriate State agency
" " Regional Planning Commissions
Low-Income or Minority Populations
Consult with:
" " Appropriate State agency
" " HUD
Prime Farmland
Consult with:
" " Appropriate State agency
" " USDA
" " Natural Resources Conservation Service
Slopes and Soil
Consult with:
" " Appropriate State agency
" " Natural Resources Conservation Service
Special Status
Natural Areas
Consult with:
" " Appropriate State agency
" " U.S. Fish and Wildlife Service
" " National Marine Fisheries Service
Threatened/ Endangered Species
Consult with:
" " Appropriate State agency
" " U.S. Fish and Wildlife Service
" " National Marine Fisheries Service
Job Aid 8-2
Hazard Mitigation Grant Program Desk Reference
Page 8-11
Section 8: Environmental Review
Environmental Considerations and Review Checklist (Continued)
Issue
Water Quality
Consultations
Consult with:
" " Appropriate State agency
" " USACE
" " EPA
Wetlands
Consult with:
" " Appropriate State agency
" " USACE
" " FEMA
Job Aid 8-2
Page 8-12
Hazard Mitigation Grant Program Desk Reference
Section 8: Environmental Review
List of CATEXs and Required Documentation*
Level 1
No Documentation
Administrative actions such as personnel or travel
44 CFR 10.8(d)(2)(i)
Preparation/revision of program or manuals
44 CFR 10.8(d)(2)(ii)
Studies requiring only manpower/associated costs
44 CFR 10.8(d)(2)(iii)
Inspection and code enforcement activities
44 CFR 10.8(d)(2)(iv)
Training activities
44 CFR 10.8(d)(2)(v)
Goods and services and storage of supplies
44 CFR 10.8(d)(2)(vi)
Level 2
Notation
Acquisition and/or relocation projects
44 CFR 10.8(d)(2)(vii)
Acquisition, operation of communication/utility
systems
44 CFR 10.8(d)(2)(ix)
Demolition or disposal of non-contaminated
structures
44 CFR 10.8(d)(2)(xii)
Physical relocation of structures where FEMA has
no role in relocated site
44 CFR 10.8(d)(2)(xiii)
Repair or construction of duplicative structures
44 CFR 10.8(d)(2)(xv)
Actions with enclosed facilities that meet all
environmental requirements
44 CFR 10.8(d)(2)(xvii)
Acquisition or lease of existing facilities
44 CFR 10.8(d)(2)(viii)
Routine maintenance at FEMA facilities
44 CFR 10.8(d)(2)(x)
Planting indigenous vegetation
44 CFR 10.8(d)(2)(xi)
Granting NFIP exceptions for basements meeting
44 CFR 60.6(c)
44 CFR 10.8(d)(2)(xiv)
Planning and administrative actions during
emergency and disaster response and recovery
44 CFR 10.8(d)(2)(xviii)
Response and recovery and mitigation activities
specified under Sections 402, 403, 407, 408, 410,
411, 412, 413, 415, 416, 417, 418, 418, 420, and
502
44 CFR 10.8(d)(2)(xix)
Demolition and disposal of structures to off-site
locations
44 CFR 10.8(d)(2)(vii)
*Descriptions are abbreviated. See 44 CFR 10.8(d)(2) for more complete guidance.
Job Aid 8-3
Hazard Mitigation Grant Program Desk Reference
Page 8-13
Section 8: Environmental Review
List of CATEXs and Required Documentation* (Continued)
Level 1
No Documentation
Level 2
Notation
Physical relocation of individual structures when
FEMA has no further involvement
44 CFR 10.8 (d)(2)(xii)
Acquisition, installation, or operation of utility or
communication systems 44 CFR 10.8 (d)(2)(ix)
Elevation or retrofitting to current codes or a preexisting design, function, or location
44 CFR 10.8 (d)(2)(xv)
Actions conducted within enclosed facilities that
comply with environmental laws and regulations
44 CFR 10.8 (d)(2)(xvii)
*Descriptions are abbreviated. See 44 CFR 10.8(d)(2) for more complete guidance.
Level 3: Full Documentation
Improvements to existing facilities and the construction of small-scale hazard mitigation measures in
existing developed areas with substantially completed infrastructure, when the immediate project areas
has already been disturbed, and when those actions do not alter basic functions, do not exceed capacity
of other system components, or modify the intended land use; provided the operation of the completed
project will not, of itself, have an adverse effect on the quality of the human environment. 44 CFR
10.8(d)(2)xvi.
Job Aid 8-3
Page 8-14
Hazard Mitigation Grant Program Desk Reference
Section 9: Cost-Effectiveness
Section 9: Cost-Effectiveness
Contents
Cost-Effective Projects..................................................................................................................... 9-1
Who Does the Analysis? .................................................................................................................. 9-1
Guidance on Cost-Effectiveness Review ........................................................................................... 9-1
What “Cost-Effective” Means ............................................................................................................ 9-1
Net Present Value................................................................................................................... 9-1
Guidance and Discount Rates for Benefit-Cost Analysis of Federal Programs...................................... 9-1
Thorough Assessment ..................................................................................................................... 9-2
Potential Projects Requiring No Benefit-Cost Analysis............................................................... 9-2
How FEMA and States Determine Cost-Effectiveness........................................................................ 9-3
Benefits and Costs........................................................................................................................... 9-4
Benefits.................................................................................................................................. 9-4
Direct Benefits ........................................................................................................................ 9-5
Indirect Benefits Not Included .................................................................................................. 9-5
Costs ..................................................................................................................................... 9-5
Data Necessary ...................................................................................................................... 9-5
Learning More About Benefit-Cost Analysis....................................................................................... 9-6
Job Aid 9-1: Key Data Needed for Analyzing Project Applications ...................................................... 9-7
Hazard Mitigation Grant Program Desk Reference
Section 9: Cost-Effectiveness
Cost-Effective
Projects
Who Does the
Analysis?
Guidance on
CostEffectiveness
Review
What “CostEffective”
Means
The Stafford Act and its implementing regulations require that HMGP
projects be cost-effective (44 CFR 206.434(b)). A benefit-cost
analysis should be performed in order to determine how the
anticipated value of the project compares to the cost.
44 CFR 206.434(b)
FEMA encourages States to do benefit-cost analyses of projects they submit for
funding. Otherwise FEMA staff will complete it. Managing States generally always
conduct the analyses. When States submit benefit-cost analyses with projects, FEMA
may verify the results using its software.
This section describes the benefit-cost model used by FEMA to determine the costeffectiveness of a hazard mitigation project, and discusses the documentation
applicants should include when submitting an application to the State for review.
For HMGP projects to be considered cost-effective, a project has to return more money
over its life than it cost initially. The “return” is money saved because a mitigation
project reduces or prevents damages from a flood, hurricane, earthquake, or other
natural hazard event.
According to 44 CFR 206.434(b)(5)(ii) to be eligible for a grant,
projects must “not cost more than the anticipated value of the
reduction in both direct damages and subsequent negative impacts to
44 CFR
the area if future disasters were to occur. Both costs and benefits will 206.434(b)(5)(ii)
be computed on a net present value basis.”
Net Present
Value
Guidance and
Discount
Rates for
Benefit-Cost
Analysis of
Federal
Programs
Net present value is the total value of benefits over a project’s life, discounted at a rate
given to FEMA by the Office of Management and Budget (OMB). Inflation and
investment value are two factors that demonstrate the standard economic principle that
a $1 benefit received in the future is not the same as a $1 benefit received today. The
State or FEMA use this method to determine net present value.
OMB directs most Federal agencies on how to determine cost-effectiveness for their
programs. OMB Circular A-94, Guidelines and Discount Rates for Benefit-Cost
Analysis of Federal Programs, is the guidance FEMA is required to use in this area.
Circular A-94 describes the economic principles and methods by which most Federal
programs, including the HMGP, must analyze and verify the cost-effectiveness of
projects they fund.
Hazard Mitigation Grant Program Desk Reference
Page 9-1
Section 9: Cost-Effectiveness
Thorough
Assessment
In nearly all cases it is necessary to do a benefit-cost analysis as part of the eligibility
determination. The process of assessing cost-effectiveness is not only required, but is
also a good way to get an overall understanding of the project being evaluated. Nearly
all aspects of a project—from the risks it seeks to mitigate (the benefits), to its costs, to
its performance—must be recognized and quantified as part of a benefit-cost analysis.
The FEMA publication How To Determine Cost-Effectiveness of Hazard Mitigation
Projects (often called “the yellow book,”) suggests a series of 10 questions as
precursors to doing an analysis. Responding to the questions gives a “snapshot” of
the proposed project, and so is a worthwhile exercise before starting an analysis.
Potential
Projects
Requiring No
Benefit-Cost
Analysis
Projects that are submitted as 5% Initiative projects do not require a quantitative
analysis. The contents of the narrative statement will include:
1.
Identification of expected mitigation benefits;
2.
Approximate value of benefits, if possible; and
3.
Description of why State and applicant expect that the project will likely reduce
future disaster losses.
See Section 7 for further detail on 5% Initiative projects.
Additionally, the acquisition and demolition of substantially damaged structures from
the Special Flood Hazard Area requires no benefit-cost analysis.
How FEMA
and States
Determine
CostEffectiveness
FEMA has developed a set of eight computer programs as a tool to determine costeffectiveness by doing benefit-cost analysis for projects that mitigate effects of natural
hazards. While each of the modules is tailored to a particular type of mitigation project,
they all use established risk modeling and economic principles as the basis for
calculating the benefits of a project and comparing these to its costs.
Contact your FEMA regional office for information about these computer modules:
"" Riverine Very Limited Data (VLD) Module
"" Riverine Limited Data (LD) Module
"" Riverine Full Data (FD) Module
"" Hurricane Wind Module
"" Coastal A-Zone Module
"" Coastal V-Zone Module
"" Earthquake Module
"" Earthquake Limited Data (LD) Module
Page 9-2
Hazard Mitigation Grant Program Desk Reference
Section 9: Cost-Effectiveness
How FEMA
and States
Determine
CostEffectiveness
(Continued)
States using the riverine module may select the version that is most appropriate,
based on the data that is available.
These modules and related technical manuals are available from FEMA free of charge.
States will find it easiest to use the FEMA software when doing benefit-cost analyses.
Training is available in the use of the modules.
The following information describes generally how modules are used. Refer to the
benefit-cost guidance and training for more detail.
Each of the eight FEMA computer modules incorporates established economic
principles, OMB guidance, and risk calculations to determine the benefits of a project
over its expected life. These benefits (which are avoided losses) are expressed in
dollars so they can be compared with project costs.
If the benefits (discounted to present-day dollars; see discussion of “Net Present
Value” above) exceed the costs, the project is cost-effective. The comparison of
benefits to costs is expressed as a ratio. The total benefits are divided by the total
costs; if the resulting ratio is greater than 1.0, the project is cost-effective (see box
below). Another way to state this is that the ratio is the dollar amount of benefits that
the project returns over its life for each dollar spent initially.
(Benefits) ? (Costs) = Benefit-to-Cost Ratio
For example: $225,000 ? $150,000 = 1.5
Benefits = 225,000
= 1.5
Costs = 150,000
Benefit-Cost Ratio
States may use other programs or mechanisms to analyze projects. Such a
methodology must be consistent with the FEMA model and be approved in advance by
FEMA.
Benefits and
Costs
Benefits
As the term “benefit-cost analysis” suggests, you need both of these numbers to
assess cost-effectiveness and get a ratio.
Of all the information needed for benefit-cost analysis, benefits are the most difficult to
determine and quantify. The benefits of a mitigation project are avoided damages and
losses that would happen in the future, so regardless of which module the analyst is
using, the benefits are a prediction. The description of a benefit provided in OMB
Circular A-94 is presented in the following paragraph.
A complete analysis includes comprehensive estimates of the expected benefits and
costs to society. Social net benefits, and not the benefits and costs to the Federal
Government, are the basis for evaluating government programs or policies that have
effects on private citizens or other levels of government. Social net benefits in the
context of HMGP are defined as prevented damages, loss, or emergency protection
costs. Social net benefits do not include recreational or economic benefits unrelated to
the hazard mitigation objectives of HMGP.
Hazard Mitigation Grant Program Desk Reference
Page 9-3
Section 9: Cost-Effectiveness
Direct Benefits
It isn’t possible to make a list of every benefit that could be included in an analysis.
Circular A-94 specifies that benefits must be “direct.” In the case of a mitigation
project, this means that there has to be a clear cause-and-effect relationship between
the natural hazard and the damage or loss. Some examples of types of direct benefits
include avoided:
"" Building damages;
"" Loss of, or damage to, personal property or building contents;
"" Infrastructure damages;
"" Displacement costs after a disaster event;
"" Temporary relocation costs due to a disaster event;
"" Casualties;
"" Loss of function: Critical public facilities;
"" Transportation routes;
"" Electric power (industry studies of the costs of such events exist);
"" Businesses; and
"" Emergency protective measures.
Indirect Benefits
Not Included
Some benefits may not be considered when determining the benefits of a mitigation
project. Damages and losses are not included in the analysis when there is no clear
cause and effect between the event (flood, earthquake, etc.) and the damages or loss.
While it’s not possible to list all possible indirect benefits, some include:
"" Lost wages;
"" Looting;
"" Gross or region-wide economic effects; and
"" Recreation opportunities lost or gained.
Costs
The costs of a project are generally easier to determine than the benefits. Costs are
usually provided by the applicant as part of the application. If the applicant hasn’t
provided this information, there are many sources and means of getting it; these
obviously differ depending on the kind of project being considered. The State reviews
project costs for reasonableness.
Data Necessary
Different types of projects require specific data collection. This includes
economic information as well as environmental and engineering data.
Often, these data are missing or limited, and will impact your choice of
benefit-cost analysis module. See Job Aid 9-1 for key data needed for
analyzing project applications.
Page 9-4
Job Aid 9-1
Hazard Mitigation Grant Program Desk Reference
Section 9: Cost-Effectiveness
Learning More
About BenefitCost Analysis
There are various resources available to learn more about benefit-cost analysis.
These include:
Hazard Mitigation Grant Program Desk Reference
Page 9-5
Section 9: Cost-Effectiveness
Key Data Needed for Analyzing Project Applications
The following are examples of key data that are typically used for analyzing flood and earthquake hazard
mitigation projects:
Type of Information
Flood Project
Data and Source
Earthquake Project
Data and Source
Hazard Data (often not included in
application)
Flood Insurance Study (FIS) data, or
historical flood data from application.
Seismic hazard data from a credible
source
First Floor Elevation
Is this available from engineering
surveys or can it be estimated from
observed flood depths?
Not applicable
Scope
What problem does the project
address? How vulnerable is the
building, item, or area?
Same as flood
Cost
Is there a well-documented cost
estimate or only a rough estimate?
Same as flood
Useful Lifetime
How long will the project provide
protection (mitigation) against
damages and losses?
Same as flood
Economic Considerations
What is the square footage of the
building? What are the replacement
values of the building (or other facility)
and contents?
Same as flood
Occupancy
Not usually applicable.
What are the levels of occupancy and
visitors during various times
throughout the day?
Function
What is the function of the facility and
is it entirely or partially related to
emergency response and recovery?
Same as flood
Structure Type (if a building)
Number of stories
Square footage
General condition
Basement
Construction type (wood frame, steel,
masonry)
Level of seismic design, if known)
# stories
Occupancy
If a “service” such as electrical
substation, road, water utility
What are the volume and unit of
service provided and the cost, if
known.
What are the volume and unit of
service provided and the cost, if
known.
Project Performance
Describe extent to which project
protects the buildings (i.e., number of
feet elevated or protects to 100-year
flood).
Describe level of seismic design,
define fragility after project, or note
event to which project protects (i.e.,
100-year earthquake).
Job Aid 9-1
Page 9-6
Hazard Mitigation Grant Program Desk Reference
Section 10: Appeals
Section 10: Appeals
Contents
Appeal Format ............................................................................................................................... 10-1
Two Levels of Appeal..................................................................................................................... 10-1
Technical Evaluation ...................................................................................................................... 10-1
Appeal Timeframes ........................................................................................................................ 10-1
Decision Notification ...................................................................................................................... 10-1
Hazard Mitigation Grant Program Desk Reference
Section 10: Appeals
Appeal
Format
An eligible applicant, subgrantee, or State may appeal, in writing, any FEMA decision
regarding projects submitted for funding under the Hazard Mitigation Grant Program.
The appeal should contain documentation that justifies the request for reconsideration.
The appeal should specify the monetary figure in dispute and the provisions in Federal
law, regulation, or policy with which the appellant believes the initial action was
inconsistent.
Whether the appeal is originated by the State or by an applicant, the appeal must be
submitted in writing to the Regional Director by the State.
Two Levels
of Appeal
There are two levels of appeal. The Regional Director is the decisionmaker on first
appeals. If there is an appeal of the Regional Director’s decision on any first appeal,
the Associate Director for Mitigation is the decisionmaker for the second appeal.
Technical
Evaluation
In some cases, the appeal may involve highly technical issues. The Regional Director
or Associate Director may consult independent scientific or technical experts on the
subject under appeal.
Appeal
Timeframes
Appeals must be made within 60 days of the applicant’s receipt of FEMA’s funding
decision.
The State must forward any appeal from an applicant or subgrantee with a written
recommendation to the Regional Director within 60 days of receipt.
Within 90 days following the receipt of an appeal, the Regional Director will notify the
State in writing as to the new decision or the need for more information.
If additional information or technical evaluation is needed in order to make a decision,
the Regional Director or Associate Director will act within 90 days following the receipt
of the new information.
Decision
Notification
FEMA will provide its decision to the State in writing. If the decision is to grant the
appeal, the Regional Director will take the appropriate action.
Hazard Mitigation Grant Program Desk Reference
Page 10-1
Section 11: Project
Implementation
Requirements
Section 11: Project Implementation Requirements
Contents
The State as Manager.................................................................................................................... 11-1
Nondiscrimination of HMGP Grants................................................................................................. 11-1
What Title VI and Section 308 Do ................................................................................................... 11-1
Those Required To Comply ................................................................................................... 11-2
How To Comply .................................................................................................................... 11-2
Maintenance of the Project ............................................................................................................. 11-3
Environmental Mitigation Implementation and Costs ........................................................................ 11-3
Hazardous Materials ...................................................................................................................... 11-3
Compliance With Companion Program Criteria ................................................................................ 11-4
Insurance Requirements ................................................................................................................ 11-4
Mapping Implications ..................................................................................................................... 11-4
Standards and Codes .................................................................................................................... 11-5
Standard Wage Rate Requirements................................................................................................ 11-5
Duplication of Benefits ................................................................................................................... 11-5
Increased Cost of Compliance............................................................................................... 11-5
Program Delivery Sequence.................................................................................................. 11-6
Preventing Duplication of Benefits in an Acquisition Project ..................................................... 11-7
Not a Repayment of Repair Grants ........................................................................................ 11-8
Duplications and Cost Share ................................................................................................. 11-8
Multiple Disasters and Duplications ........................................................................................ 11-8
Conditions for Post-Disaster Code Enforcement Projects ................................................................. 11-8
Mechanisms To Conduct Assessments.................................................................................. 11-9
Allowable Costs for Grants to Building Departments................................................................ 11-9
Assistance After 6 Months ..................................................................................................... 11-9
Acquisition/Relocations ................................................................................................................ 11-10
Basic Requirements............................................................................................................... 11-10
Property Appraisal and Negotiation............................................................................................... 11-11
National Flood Insurance Program Credits ........................................................................... 11-11
Notification of Acquisition Price............................................................................................ 11-11
Negotiating With Property Owners Who Purchased Damaged Property
After the Event.............................................................................................................. 11-11
Avoiding Provision of Assistance to Unlawful Residents of the U.S......................................... 11-12
Additional Non-URA Relocation Assistance.......................................................................... 11-13
Clear Title Required at Purchase......................................................................................... 11-13
Subgrantee Takes Ownership.............................................................................................. 11-13
Conservation Easements as an Alternative to Purchase of Full Title....................................... 11-14
Treatment of Agricultural Properties .............................................................................................. 11-14
Options for Agricultural Land Acquisition .............................................................................. 11-15
Subgrantee Responsibility and Deed Restriction ................................................................... 11-16
Removal of Existing Structures ............................................................................................ 11-17
Managing Purchased Land as Open Spaces ................................................................................. 11-17
Procedure To Transfer Ownership ....................................................................................... 11-17
Environmental Review of Subsequent Activities .................................................................... 11-17
Monitoring and Enforcing Deed Restrictions ......................................................................... 11-18
Allowable Open Space Uses ............................................................................................... 11-18
Unallowable Open Space Uses ........................................................................................... 11-19
Crop Storage Facilities on Open Space................................................................................ 11-20
Agricultural Properties and Future Disaster Assistance.......................................................... 11-20
Uninsurable Crops .............................................................................................................. 11-20
Insurable Crops .................................................................................................................. 11-21
Hazard Mitigation Grant Program Desk Reference
Section 11: Project Implementation Requirements
Contents (Continued)
Applicability of the URA ................................................................................................................ 11-21
Notice of Voluntary Nature of Project ................................................................................... 11-21
Mandatory URA Assistance for Displaced Tenants ............................................................... 11-22
Displaced Tenants .............................................................................................................. 11-22
Compensation for a Reasonable Increase in Rent ................................................................. 11-22
Base Monthly Rent ............................................................................................................. 11-22
Maximum Rental Increase Payment ..................................................................................... 11-23
Owners of Manufactured Homes .......................................................................................... 11-23
Use of URA Payments ........................................................................................................ 11-24
Avoiding Provision of URA Assistance to Unlawful Residents of the U.S................................. 11-24
Job Aid 11-1: Hazardous Materials – Property Survey ................................................................... 11-25
Job Aid 11-2: Exhibit A – Attached to Warranty Deed .................................................................... 11-28
Job Aid 11-3: Exhibit B – Conservation Easement ......................................................................... 11-31
Job Aid 11-4: Statement of Voluntary Participation........................................................................ 11-35
Job Aid 11-5: Sample Relocation Notice....................................................................................... 11-36
Job Aid 11-6: Sample Log for Receipt of Relocation Notice ........................................................... 11-39
Job Aid 11-7: FEMA Form 90-69D, Declaration of Applicant .......................................................... 11-40
Hazard Mitigation Grant Program Desk Reference
Section 11: Project Implementation Requirements
The State as
Manager
The State is required to oversee the implementation of HMGP projects. Monitoring
methods include site visits, updates via telephone, meetings, and progress reports.
The State should request regular progress reports from subgrantees to aid the State in
monitoring and evaluating the projects. The State also will use these reports when
preparing quarterly progress reports for FEMA.
This section describes some of the responsibilities of the State and subgrantee once
the grant is approved.
Nondiscrimination of
HMGP
Grants
Like other disaster assistance programs, the HMGP must be administered in an
equitable and impartial manner, without discrimination on the grounds of race, color,
religion, nationality, sex, age, or economic status. The HMGP complies with Section
308 of the Stafford Act and Title VI of the 1964 Civil Rights Act. In implementing the
HMGP, States and subgrantees will ensure that no discrimination is practiced.
Additionally, States and subgrantees must avoid conflicts of interest, both real and
perceived. Subgrantees must comply with the procurement guidelines at 44 CFR
13.36. Among other requirements, Part 13 urges subgrantees to avoid situations
where local officials with project oversight authority might benefit financially from the
grant disbursement.
What Title VI
and Section
308 Do
Section 308 of the Stafford Act and Title VI of the 1964 Civil Rights Act:
"" Prohibits entities from denying an individual any service, financial aid, or other
benefit on the grounds of race, color, religion, nationality, sex, age, or economic
status;
"" Prohibits entities from providing services or benefits to some individuals that are
different or inferior (either in quantity or quality) to those provided to others;
"" Prohibits segregation or separate treatment in any manner related to receiving
program services or benefits;
"" Prohibits entities from requiring different standards or conditions as prerequisites
for serving individuals;
"" Encourages the participation of minorities as members of planning or advisory
bodies for programs receiving Federal funds;
"" Prohibits discriminatory activity in a facility built in whole or part with Federal funds;
"" Requires information and services to be provided in languages other than English
when significant numbers of beneficiaries are of limited English-speaking ability;
"" Requires entities to notify the eligible population about applicable programs;
"" Prohibits locating facilities in any way that would limit or impede access to a
Federally funded service or benefit; and
"" Requires assurance of nondiscrimination in purchasing of services.
Hazard Mitigation Grant Program Desk Reference
Page 11-1
Section 11: Project Implementation Requirements
Those
Required to
Comply
"
How to
Comply
All recipients of Federal assistance must comply with Title VI, including State and local
governments and private non-profit organizations distributing Federal assistance.
TIP: See related topic, Environmental Justice, on
page 8-7.
There is a broad range of activities that States can utilize to help ensure compliance
with Section 308 and Title VI. Activities below are included only as examples.
States may:
"" Set objective process/criteria for community applicants;
"" Assist local communities with match requirement (either by seeking other
resources or contributing cash); or
"" Work with communities to ensure the program is made available without
discrimination.
Subgrantees may:
"" Set objective criteria for selecting homeowner and/or business beneficiaries.
"" Ask local officials who may benefit personally from projects to recuse themselves
from project related decisionmaking and oversight.
"" Provide pamphlets and letters to prospective participants in other languages as
appropriate; or
"" Use a committee that represents various community groups to make decisions and
plan outreach.
These mandates apply to discrimination throughout an agency, not just to actions
involving the Federally assisted program. Therefore, if an agency receives any
Federal financial assistance for any program or activity, the entire agency is required to
comply with Title VI, not just that particular program.
"
Page 11-2
TIP: For more information about Title VI, contact
the State agency responsible for Title VI
compliance.
Hazard Mitigation Grant Program Desk Reference
Section 11: Project Implementation Requirements
Maintenance
of the
Project
Environmental Mitigation
Implementation and
Costs
The subgrantee or owner of the property is responsible for maintaining the project after
the initial implementation. The FEMA grant is not intended to pay for future
maintenance, such as mowing open space or ensuring hurricane shutters are
operable. The State should encourage subgrantees to develop a maintenance plan
that identifies the maintenance tasks, schedule, and budget (e.g., a clearance
schedule and funding plan for a culvert improvement project).
Subgrantees will implement any environmental or historic preservation mitigation
actions specifically required of them in relation to project approval. Environmental
mitigation measures are conditions of the grant award. This means it is essential that
the measures are carried out as agreed upon. Such measures include recordation or
relocation of historic structures, Phase III archeological data recovery, protection for
endangered species, etc. Such activities are treated as a project cost and are costshared.
FEMA or the State usually pays for reviews to determine if environmental requirements
are met or if environmental mitigation is necessary. The cost of implementing such
required measures are cost-shared project costs.
Hazardous
Materials
"
Subgrantees may not use HMGP funds to purchase contaminated
property. If a community is considering purchasing commercial or
industrial property as part of an HMGP project, it should ensure that the
owner provides information identifying what, if any, hazardous materials
are on the property. Applicants should consult the sample Property
Owners’ Questionnaire on Hazardous Materials, included as
Job Aid 11-1.
Job Aid 11-1
TIP: See Section 8 for more information on
environmental considerations.
Before purchasing commercial or industrial properties, the community should require
the owner to remove hazardous materials and containers. The owner must provide a
clean-site certification from the State agency issuing such before the community can
purchase any interest (including an easement for development rights) in the property.
When the community purchases an easement for development rights only, the seller
must agree to indemnify the State, FEMA, and the community for any liability arising
from previous contamination of the property.
Presence of non-leaking underground storage tanks, septic systems, home heating oil
tanks, and normal quantities of lead, asbestos, and household hazardous materials do
not preclude use of FEMA dollars for acquisition. These costs should be addressed in
the demolition budget.
Hazard Mitigation Grant Program Desk Reference
Page 11-3
Section 11: Project Implementation Requirements
Hazardous
Materials
(Continued)
Compliance
With
Companion
Program
Criteria
Insurance
Requirements
If the State and FEMA determine that a Phase I environmental site assessment is
necessary, the applicant, FEMA, or the State may conduct one prior to land purchase.
The cost of Phase III environmental site assessment remediation plans, cleanup, and
certification of the property are not eligible HMGP costs.
When funds such as Community Development Block Grants are used to match HMGP
grants, both programs’ requirements apply to the whole project. The State, as grantee,
is responsible for coordinating the various programs available within the State. It is
important to include local program representatives.
Because HMGP is a very flexible program in terms of specific procedures, it is
beneficial to coordinate approaches and schedules with other programs involved. The
objective should be to make the process as simple and consistent as possible for the
applicants and homeowners.
The following requirement applies to any project to alter existing structures that are
sited within a Special Flood Hazard Area:
"" When the project is implemented, all structures that will not be demolished or
relocated out of the Special Flood Hazard Area must be covered by flood
insurance to an amount at least equal to the project cost or to the maximum limit of
coverage made available with respect to the particular type of property, whichever
1
is less ; and
"" Insurance coverage on the property must be maintained during the life of the
property regardless of transfer of ownership of such property.
"" For example, elevation project owners must purchase and maintain flood
insurance; an acquisition of agricultural easement project would require insurance
on a remaining pole building; or in a project where hurricane shutters are installed
on a building within the Special Flood Hazard Area, insurance is required even
though it is not a flood mitigation project.
Mapping
Implications
If approved HMGP projects will impact the local Flood Insurance Rate Map, the
subgrantee is responsible for ensuring that appropriate map revisions are completed.
Please contact your regional office for details.
1
If an elevation or fill project results in a Letter of Map Revision (LOMR) indicating the structure is no longer located in the Special
Flood Hazard Area, then insurance purchase is not required.
Page 11-4
Hazard Mitigation Grant Program Desk Reference
Section 11: Project Implementation Requirements
Standards
and Codes
Alterations to existing structures will:
"" Comply with all applicable State and local codes and ordinances;
"" Comply with the applicable floodplain management standards
outlined in 44 CFR Part 9 and 60.3 (e.g., the need to elevate
structures to height at or above Base Flood Elevation, and the
prohibition against elevation or fill in a V zone); and
44 CFR Part 9 and
60.3
"" Provide protection for critical facilities to the elevation of the 500-year flood (the
flood with a .2 percent annual chance of occurrence) as required by 44 CFR
Part 9.
Standard
Wage Rate
Requirements
The Davis-Bacon Act of 1931 ensures that Federally contracted wages are paid at
rates not less than those being paid on similar construction in the area. The DavisBacon Act applies only to work for which FEMA contracts directly, not to granteecontracted work.
However, standard wage rates do apply to some U.S. Department of Housing and
Urban Development (HUD) grant funds depending on the funding program and the
type, scope, and size of the project. FEMA, the State, and subgrantees should
coordinate with HUD field representatives to determine whether the rates apply to
specific projects. If standard rates do apply, the additional cost is eligible under the
HMGP at the same cost-share as the overall project.
Duplication
of Benefits
FEMA and the grantee must avoid duplication of benefits between the
HMGP and any other form of assistance, as required by Section 312
of the Stafford Act, and further clarified in 44 CFR 206.191.
44 CFR 206.191
Generally, duplication of benefits is only an issue for property acquisition projects
where subgrantees pay pre-event value for damaged properties. However, it is
possible that another form of assistance might pay for the same eligible activities that
the HMGP does. HMGP recipients should not receive money from more than one
source for the same activity.
Increased
Cost of
Compliance
Increased Cost of Compliance (ICC) insurance coverage provides for a claim payment
to pay qualifying owners’ costs to elevate, demolish, relocate, or floodproof (nonresidential buildings only) after a flood. The maximum amount of Increased Cost of
Compliance coverage available is $15,000. Because these are also eligible HMGP
costs, the homeowner cannot receive HMGP funds for the same costs. However, if the
insurance claim does not pay the total mitigation cost, an HMGP grant can pay the
remainder. The Increased Cost of Compliance insurance claim payment would then be
counted as cost-share. See section 13 for more information.
Hazard Mitigation Grant Program Desk Reference
Page 11-5
Section 11: Project Implementation Requirements
Program
Delivery
Sequence
Section 206.191 specifies a delivery sequence for disaster relief
agencies and organizations. The sequence establishes both the
order in which agencies provide assistance and the program with
primary responsibility. Programs listed later in the sequence are
responsible for ensuring that they do not duplicate assistance that
should be provided by a program listed earlier in the sequence.
The programs listed in 44 CFR 206.191(d)(2) are “primary
programs:”
1.
Volunteer agencies’ emergency assistance;
2.
Insurance (including flood insurance);
3.
Temporary housing assistance (minimal repairs);
4.
Small Business Administration and Farmers Home
Administration disaster loans;
5.
Individuals and Family Grand program;
6.
Volunteer agencies’ “additional assistance” programs; and
7.
The “Cora Brown Fund.”
44 CFR 206.191(d)(2)
Because the HMGP is not a primary disaster assistance program, it is not listed in the
program delivery sequence and, therefore, would follow those that are listed.
In property acquisition projects, it is typical to package funds and benefits from several
different sources along with HMGP funds. Because it follows the “primary programs,”
the HMGP must ensure that it does not deliver assistance that duplicates any of the
previously listed sources.
Page 11-6
Hazard Mitigation Grant Program Desk Reference
Section 11: Project Implementation Requirements
Preventing
Duplication of
Benefits in an
Acquisition
Project
If a community is offering pre-event fair market value for homes recently damaged in a
disaster, duplication may occur. This is because the homeowner may have already
been compensated for the damage to the building by insurance, loans, or repair
grants. Paying full pre-event fair market value also compensates the owner for the
loss of value due to damage.
The following procedure prevents HMGP from duplicating benefits paid by primary
providers to compensate the owner for loss to the home:
2
1.
The subgrantee provides the State with a list of property owners who are
participating in the property purchase program.
2.
The subgrantee (with the advice and assistance of the State) establishes the fair
market value of the property, as of a certain date. Usually this is the date prior to
the disaster event. However, if the project is occurring separate from or more than
12 months after a disaster event, the current fair market value may be more
appropriate. A potential duplication only exists if the subgrantee is paying preevent value (or any value higher than current) for a damaged house.
3.
The State and FEMA inform the subgrantee of the amount of repair assistance
(from primary providers) provided to each property owner after the date for which
the fair market value was established.
4.
Property owners who have a U.S. Small Business Administration loan are required
to repay the loan or roll it over to a new property at closing.
5.
If insurance payments, minimal repair grants, Individual and Family Grants, and/or
funds from any other sources were awarded for the purpose of making repairs to a
structure after the fair market value date, the subgrantee reduces the purchase
offer by the amount of the awards. Reductions are not taken, however, for
2
amounts that the owner can verify with receipts were expended on repairs or
cleanup.
6.
If the owner’s insurance paid a claim that included an amount to reimburse the
owner for their own labor to clean up after the event, the subgrantee will not deduct
that amount from the offer.
7.
If a homeowner received FEMA Emergency Minimal Repair grants and used the
money for cleanup, repairs, or temporary rental accommodations and has receipts
to document expenditures, no deduction is necessary. However, if the homeowner
used the grant to make a mortgage payment or as a down payment on a new
home, this is a potential duplication and the community deducts the amount from
the purchase offer.
8.
If the community is paying the post-flood (or current) fair market value of the
property, no deductions for primary provider benefits are required.
Subgrantees may not credit homeowners for the homeowners’ own labor hours for repair work.
Hazard Mitigation Grant Program Desk Reference
Page 11-7
Section 11: Project Implementation Requirements
Not a
Repayment of
Repair Grants
Note that duplication of benefit deductions are not for the purpose of repaying grants
made earlier in the delivery sequence. When the subgrantee identifies a potential
duplicative benefit, the HMGP grant (or property purchase price) is reduced by an
appropriate amount to avoid duplication.
Duplications
and CostShare
Grants, loans, and insurance for the purpose of making disaster repairs are not
originally intended for mitigation purposes. Therefore, they cannot be used to match
HMGP grants even though they reduce the acquisition costs due to duplication of
benefits. This includes regular claims under the National Flood Insurance Program.
The HMGP project cost-share is calculated after duplications are deducted.
Multiple
Disasters and
Duplications
Conditions
for PostDisaster
Code
Enforcement
Projects
If a house has been damaged by multiple disaster events, the subgrantee should
determine for which disaster to check duplications. (See item number 2 on the
previous page.) Subgrantee should include any event within the last 12 months and
others, if they occurred close enough together to limit repairs.
Extraordinary needs associated with enforcing local building codes during postdisaster reconstruction may include the performance of building department functions
such as building inspections, and performance of substantial damage determinations
under the National Flood Insurance Program. These activities may be eligible for
HMGP funding if three conditions are met:
1.
The State assesses existing building code and/or zoning and land-use
management regulations to determine if they adequately address the identified
natural hazard risks in the community. The State determines if the community:
"" Has adopted one of the three model U.S. building codes;
"" Has a floodplain management ordinance that meets the minimum
requirements of the National Flood Insurance Program; and
"" Conforms to State-model or State-mandated building codes, as well as
model or mandatory floodplain management requirements.
Page 11-8
2.
The State evaluates the building department to determine that its organization,
funding, and enforcement and inspection processes are sufficient to ensure proper
enforcement of all applicable laws and ordinances during normal operations.
3.
The local community agrees to address any deficiencies identified in this
evaluation as a condition of receiving the grant. This agreement can be a simple
statement, attached to the evaluation. This agreement should include an
implementation schedule that is mutually satisfactory to the State, the community,
and FEMA. The agreement should include an acknowledgment by the community
that failure to meet the agreed upon implementation schedule can result in the loss
of all current and/or future building department assistance used to support postdisaster operations.
Hazard Mitigation Grant Program Desk Reference
Section 11: Project Implementation Requirements
Mechanisms
To Conduct
Assessments
The State’s assessment can be accomplished through various mechanisms. Any
assessment should include a discussion of the community’s compliance with the
National Flood Insurance Program. Suggested approaches include (but are not limited
to):
"" Employing a mutual-aid agreement among communities to use other local building
officials.
"" Entering into a contractual agreement with a State or regional government entity
that is well versed in building codes and proper administration of a building
department.
"" Entering into a contractual agreement with one of the three model building code
organizations. All three model building code organizations have established
programs for conducting similar assessments of building departments.
"" Deploying FEMA mitigation staff that are knowledgeable of building codes and
proper building department administration. Former local building officials can often
provide the requisite knowledge.
"" Employing the Hazard Mitigation Technical Assistance Program.
Allowable
Costs for
Grants to
Building
Departments
"
Assistance
After 6 Months
If the above conditions are met, extraordinary post-disaster code enforcement costs
are eligible for up to 6 months. Extraordinary costs are the costs of the department in
meeting disaster reconstruction needs after normal costs of the department are
deducted.
TIP: See Section 12, Allowable Project Costs, for a discussion of
post -disaster code enforcement costs.
If, after 6 months, the community requests additional assistance, the State will conduct
a needs assessment to determine if assistance provided to date has been effectively
used and if additional assistance is warranted. Assistance beyond 6 months will be
granted only in rare instances.
Hazard Mitigation Grant Program Desk Reference
Page 11-9
Section 11: Project Implementation Requirements
Acquisitions/
Relocations
Generally, HMGP-funded property acquisition projects consist of a community
purchasing flood-damaged homes and either demolishing them or physically moving
them to a new site outside of the floodplain. The purchased property is then
maintained for open-space purposes.
While some communities may elect to develop a new site outside of the floodplain for
participating residents to move to, FEMA encourages communities to opt for the
simpler acquisition and structure removal model. These projects require only minimal
environmental review, are considerably less expensive, and allow homeowners to
determine where to relocate.
The guidance that follows is generally aimed at acquisition/structure removal projects.
"
Basic
Requirements
TIP: Refer to the Acquisition Guidance for Local
Communities for more details.
State and subgrantees must comply with additional requirements when using HMGP
funding for open-space acquisition and/or relocation projects.
Subgrantees receiving assistance for a real property acquisition or building relocation
project will enter into an agreement with the State, subject to FEMA concurrence. The
agreement will provide assurances that:
"" The subgrantee will inform prospective participants in writing that it will not use its
eminent domain authority to acquire their property should negotiations fail, and
property owners will voluntarily elect to participate in the program. The community
may include an expiration date for this limitation in the letter.
"" With stated exceptions, the property will be used in perpetuity for open space
without future construction and in compliance with conservation requirements; and
"" Existing buildings will be removed within 90 days of settlement.
The agreement should include the deed restrictions that will be attached
to each property deed as Exhibit A.
See Job Aid 11-2 for Exhibit A. The FEMA Regional Director may
concur on a State-local grant agreement that incorporates Exhibit A.
Page 11-10
Job Aid 11-2
Hazard Mitigation Grant Program Desk Reference
Section 11: Project Implementation Requirements
Property
Appraisal
and
Negotiation
For each property identified for acquisition, the subgrantee should establish and
document a fair market value. The value must be derived from a reasonable
methodology that is consistently applied throughout the community. Methods may
include:
"" Independent appraisals (recommended);
"" Opinions of value; or
"" A formula based on tax assessments.
Communities may offer up to the pre-event market value of the real property. The
State should coordinate with the subgrantee (community) in their determination of
whether the valuation should be based on pre- or post-event market value. Post-event
(current) market value may be the most efficient method if no damage has occurred to
the properties in more than 12 months and they are currently occupied. All appraisals
in a given community (i.e., HMGP project area) should be based on the same terms.
The community should ensure that all property owners are treated fairly and are
offered an equitable package of benefits. As detailed above in the Duplication of
Benefits subsection, the subgrantee must make certain deductions from the
established pre-event fair market value before making a purchase offer to the property
owner.
"
TIP: See pages 11-5 through 11-7 for further details
on Duplication of Benefits.
National Flood
Insurance
Program
Credits
The State has the option to allow communities to provide a credit to property owners
with flood insurance. In this case, the subgrantee would increase the purchase offer
by an amount equal to up to 5 years of flood insurance premiums actually paid by the
current property owner for a National Flood Insurance Policy for structure coverage.
Notification of
Acquisition
Price
The acquiring entity (subgrantee) informs each property owner, in writing, of what it
considers to be the fair market value of the property. The subgrantee may wish to set
a time limit with the property owner for the validity of a purchase offer.
If several different entities or programs are acquiring property in the same area, property
owners may find it confusing if different offers are made to area owners at different times.
To avoid any negotiation difficulties or confusion, the local community should coordinate
the release of appraisal information and purchase offers to property owners for the
various programs.
Negotiating
With Property
Owners Who
Purchased
Damaged
Property After
the Event
The benefit of payment of pre-event value is only available to owners who owned the
property during the event. If the current property owner purchased the disaster
damaged property after the disaster declaration, then the community cannot offer the
owner more than the post-event fair market value (i.e., the amount paid by the current
owner for the damaged property or the current appraised fair market value, whichever
is higher, in order to account for any improvements to the property or other reasonable
property value increases).
Hazard Mitigation Grant Program Desk Reference
Page 11-11
Section 11: Project Implementation Requirements
Avoiding
Provision of
Assistance
to Unlawful
Residents of
the U.S.
To comply with the Personal Responsibility and Work Opportunity Reconciliation Act of
1996 (P.L. 104-193), as subgrantees implement acquisition projects, they will ensure
that only U.S. citizens and qualified aliens receive offers for the pre-event value of their
damaged homes. A qualified alien is defined as someone from one of the following
groups:
-
Lawful permanent residents;
-
Refugees;
-
Asylees;
-
Persons who have had their deportation withheld;
-
Parolees admitted for at least one year;
-
Aliens who have been present since before April 1, 1980; or
-
Certain battered aliens and alien parents of battered children under certain
conditions.
Subgrantees will ask all acquisition project participants (property owners) to certify that
they are either a U.S. citizen or qualified alien. Subgrantees will offer participants who
refuse to certify, or are not U.S. citizens or qualified aliens, no more than the appraised
current fair market value for their property. Participants who refuse to certify, or are not
U.S. citizens or qualified aliens, also may not receive additional non-URA relocation
assistance described on Page 11-13.
Subgrantees may use FEMA Form 90-69D (Job Aid 11-7) to obtain
certification from participating property owners. At the time of
certification, the subgrantee will ask the property owner to show a
form of identification (any identification displaying the signer’s name
will suffice). If the property owner applied for FEMA disaster
assistance, a 90-69D will already be on file at FEMA and the
subgrantee will instead request verification from FEMA through the
State that a certification is on file.
Job Aid 11-7
Though subgrantees do not request property owners to display proof that they meet
the qualified alien status, FEMA may later audit applications to verify the status.
"
Page 11-12
TIP: Please see Page 11-25 for details on how to
avoid provision of URA assistance to unlawful
residents who are tenants of property to be
acquired.
Hazard Mitigation Grant Program Desk Reference
Section 11: Project Implementation Requirements
Additional
Non-URA
Relocation
Assistance
There may be a shortfall between the amount the community pays an owner for his or
her damaged residence and the cost of a comparable replacement home in a nonhazardprone location. The State may allow the community to provide owner1
occupants the difference between the two amounts up to $22,500 . The subgrantee
must demonstrate that all of the following circumstances exist:
"" Decent, safe, and sanitary housing of comparable size and capacity is not
available in non-hazardprone sites within the nearby community at the anticipated
acquisition price of the property being vacated;
"" The project would otherwise have a disproportionately high adverse effect on lowincome or minority populations because project participants within those
populations would not be able to secure comparable decent, safe, and sanitary
housing; and
"" Funds cannot be secured from other more appropriate sources such as housing
agencies or voluntary groups.
Clear Title
Required at
Purchase
The subgrantee will conduct a title search for each property it plans to acquire with
HMGP funds. The purpose of the title search is to ensure that the owner is really the
titleholder to the property and that the title is clear (no one else has an interest in the
property). This means that there are no mortgages or liens outstanding at the time of
sale. In addition, there may not be incompatible easements or other encumbrances to
the property that would make it either ineligible for acquisition or noncompliant with
HMGP land use restrictions.
Subgrantee
Takes
Ownership
Depending upon the scope of the project, title to the property is treated in one of two
ways:
"" The subgrantee acquires or accepts the full title (preferred method); or
"" The subgrantee acquires a conservation easement that runs with the property in
perpetuity if more appropriate to the situation. The easement restricts use of the
land to open space and the original owner retains title and the right to use the
property for farming or quiet enjoyment.
The subgrantee takes possession (if applicable) at settlement. The deed transferring
title to the property will be recorded with restrictions according to State law within 14
days after settlement and will run with the land in perpetuity.
1
This dollar amount is consistent with the limits for relocation payments set by the URA.
Hazard Mitigation Grant Program Desk Reference
Page 11-13
Section 11: Project Implementation Requirements
Conservation
Easements as
an Alternative
to Purchase of
Full Title
A conservation easement allows the subgrantee to restrict use of the land, and remove
associated structures not compatible with open-space use without taking full title to the
property. Large parcels and agricultural land often are beneficial to the community for
the agricultural value as well as the inherent open-space value of such land. In many
cases, by purchasing a conservation easement, the community is able to retain these
benefits, while restricting improvements or uses of this land which are not compatible
with open-space uses.
Appraising the value of a conservation easement should take into account the loss of
development rights on the impacted parcel. However, if the parcel will continue to be
used for cultivation or other profitable recreational use, then this increases the benefit
of the easement to the owner and should also be accounted for in the appraisal.
Conservation easements are intended to benefit a property owner who wishes to sell
their house and restrict development, but wants to retain quiet enjoyment of the open
space land.
In situations where the community is only acquiring a conservation easement to the
property, they can provide the property owner an additional incentive to accept the offer
by:
"" Paying to physically relocate the damaged structure to a new site outside of the
floodplain; or
"" Paying the pre-event value of the structure and demolition and removal costs.
Treatment of
Agricultural
Properties
A community may include agricultural properties in its acquisition/relocation or
elevation projects under Section 404. However, due to the large tracts of land and
unique issues involved, these projects require special consideration. FEMA suggests
that communities work with farm property owners on a case-by-case basis to negotiate
an agreement (within the below options) that is acceptable to the farmer, the
community, the State, and FEMA.
FEMA requests that the community take into consideration the cost of the project and the
mitigation benefit to be gained in determining what type of offer to make to a farm property
owner, as these factors will be considered by FEMA in its review for funding approval. All
HGMP projects must be cost-effective.
Page 11-14
Hazard Mitigation Grant Program Desk Reference
Section 11: Project Implementation Requirements
Options for
Agricultural
Land
Acquisition
The methods which can be used to deal with agricultural property are listed below.
The option selected will depend upon the situation of the farmer and the property.
Hazard Mitigation Grant Program Desk Reference
Page 11-15
Section 11: Project Implementation Requirements
Subgrantee
Responsi bility and
Deed
Restriction
As a condition of receiving the grant, the State and the applicants agree to ensure that:
"" The owner and all subsequent owners will dedicate and maintain the property in
perpetuity for uses compatible with open-space, recreational, or wetlands
management practices;
"" The property acquired, accepted, or from which structures are removed will carry a
permanent deed restriction providing that the property be maintained for openspace, recreational, or wetlands management purposes only;
"" No new structures will be built on the property except as indicated below:
?? A public building that is open on all sides and functionally related to a
designated open-space or recreational use;
?? A public restroom; or
?? A structure that is compatible with open-space, recreational, or wetlands
management usage and proper floodplain management policies and practices,
which the Director approves in writing before the construction of the structure
begins;
"" Any structures built on the property according to the third
subparagraph above will be elevated or floodproofed to the baseflood elevation plus 1 foot of freeboard and meet applicable
requirements of the National Flood Insurance Program floodplain
management regulations at 44 CFR 60.3;
44 CFR 60.3
"" The deed restriction must stipulate that no future disaster assistance for any
purpose from any Federal source will be sought or provided with respect to the
property (insurance claims such as National Flood Insurance Program and Federal
Crop Insurance are not considered disaster assistance);
"" After settlement, no person or group may make application for additional disaster
assistance for any purpose with respect to the property to any Federal entity or
source, and no Federal entity or source will provide such assistance;
"" In fee simple transactions, the deed restriction must also stipulate that the
subgrantee must obtain the approval of the State grantee agency and the FEMA
Regional Director before conveying ownership of the property to another public
agency or qualified private non-profit organization. Property transfer to private
citizens and corporations will not be approved. All development rights in the form
of an easement on the property must be retained by the subgrantee or other public
agency; and
"" The subgrantee accepts responsibility for monitoring and enforcing the deed
restriction and/or easement language.
Page 11-16
Hazard Mitigation Grant Program Desk Reference
Section 11: Project Implementation Requirements
Removal of
Existing
Structures
The subgrantee takes possession of the property at settlement. The subgrantee must
ensure that all structures are removed from the property within 90 days of property
settlement and disposed of in accordance with applicable laws. The FEMA Regional
Director can grant an exception to this requirement if extenuating circumstances exist.
Any relocated buildings will be placed on a site outside of Special Flood Hazard Areas
or any other identified hazard areas, and at a distance at least 60 times the average
annual erosion rate measured from an appropriate “erosion reference feature.” The
owner will ensure the building is brought into compliance with all applicable Federal,
State, and local laws and regulations.
In certain instances, the demolition and debris removal related to acquired structures may
be eligible for reimbursement under FEMA’s Public Assistance program if the structures
represent a health and safety hazard as a result of the disaster. Check with your Public
Assistance Officer before assuming these costs are eligible under that program. If the
costs of demolition do not qualify for Public Assistance, they are allowable costs under
HMGP. If any parts of the structure are sold for salvage value, this amount reduces the
total cost of the project before cost shares are calculated.
Managing
Purchased
Land as
Open Spaces
The subgrantee must provide for the continued maintenance of the property once the
initial debris removal, vegetative site stabilization, and new landscaping are complete.
FEMA encourages subgrantees to post a notice on the property indicating the open
space designation.
In general, allowable open-space, recreational, and wetland management uses include
parks for outdoor recreational activities, nature reserves, cultivation, grazing, camping
(except where adequate warning time is not available to allow evacuation), temporary
storage in the open of licensed wheeled vehicles which are easily moveable (except
manufactured homes), unpaved, permeable parking lots, and buffer zones.
If communities wish, they may purchase the development rights to
agricultural properties and allow the farmer to continue farming the
land, but not to live there. Cultivation is an acceptable open-space
use under 44 CFR 206.434.
44 CFR 206.434
Regardless of the type of new use of the land, no future Federal
disaster assistance will be provided with respect to the property.
Procedure To
Transfer
Ownership
The subgrantee or other public property owner will seek the approval of the State
grantee agency and the FEMA Regional Director before conveying ownership of the
property to any other party.
All development rights to the property must be retained by the subgrantee or other
public entity or qualified private non-profit conservation organization. The FEMA
Regional Director will only approve the transfer of properties that meet the criteria
identified above.
Environmental
Review of
Subsequent
Activities
Future activities which occur on the acquired property after deed transfer, although
required to be consistent with the authorized land uses, is not required to undergo
National Environmental Policy Act evaluation because it is not part of the major
Federal action as defined under NEPA.
Hazard Mitigation Grant Program Desk Reference
Page 11-17
Section 11: Project Implementation Requirements
Monitoring
and Enforcing
Deed
Restrictions
In order to carry out tasks associated with monitoring, the subgrantee, State, or FEMA
has the right to enter the parcel, with notice to the parcel owner, to ensure compliance
with land use restrictions. Subgrantees may identify the open space nature of the
property on local tax maps to assist with monitoring.
Whether the subgrantee obtains full title or a conservation easement on the parcel, the
State will work with subgrantees to ensure that the property is maintained in accordance
with land use restrictions. Specifically, the State may:
"" Monitor and inspect the parcel every two years and certify that the inspected parcel
continues to be used for open space or agricultural purposes; and
"" Take measures to bring a non-compliant parcel back into compliance within 60 days
of notice.
Only as a last resort, FEMA reserves the right to require the subgrantee to bring the
property back into compliance and transfer the title and easement to a qualified third
party for future maintenance.
Allowable
Open Space
Uses
The list below is a guide to open space use that addresses typical situations; however,
the subgrantee and State should review every situation using the regulations, open
space intent, and floodplain management principles. The local floodplain administrator
should review all proposed use of acquired floodplain land.
Communities may re-use existing paved impervious surfaces for recreational uses,
however, they should remove paved impervious surfaces beyond that directly required
for such uses. Communities will use pervious materials where feasible for allowable
uses, particularly trails. Examples include grass, hard-packed earth, porous paving
material or tile systems, and graded gravel.
Communities may creatively salvage pre-existing structures on the acquired property.
In some cases, the complete demolition of a structure may not be necessary; it may be
possible to convert a closed-in structure with walls, such as a house, into an open
pavilion with a concrete slab floor and posts supporting the roof.
The community may lease the property to private interests for allowable uses.
Allowable uses include:
1.
Reforestation and planting of vegetation, agricultural cultivation, and grazing.
2.
Picnic shelters, pavilions, and gazebos, with associated foundations, provided that
the structure does not contain walls.
3.
Restrooms are the only walled and roofed buildings that are allowed.
4.
Tennis courts, basketball courts, ball fields, golf courses, miniature golf, open-air
amphitheaters, other small-scale recreational courts, bike and walking paths.
5.
Camping, except where adequate warning time is not available to allow
evacuation.
6. Installation of
Page 11-18
signs.
Hazard Mitigation Grant Program Desk Reference
Section 11: Project Implementation Requirements
Allowable
Open Space
Use s
(Continued)
7.
Simple agricultural structures (see Crop Storage facilities discussion below).
8.
Unimproved, pervious (porous or permeable surface) parking. Communities may
make accommodations for special needs, such as a limited area of paved parking
for handicap accessibility.
9.
Roads, driveways, camping pads limited to those necessary to serve the acceptable
uses. Existing paved roads can be reused for these purposes.
10. Small boat ramps, docks, and piers to serve a public recreational use.
11. Drainage facilities intended to service on-site needs.
12. Construction activities, excavation, and other minor water control structures
necessary to create areas for water detention/retention including wetlands
restoration or restoration of natural floodplain floodwater storage functions.
13. Sewer, water, and power to serve the allowable uses. Sewer, water, and power line
crossings, where there is no floodwater obstruction created and there are no other
readily available locations for these systems.
Other uses determined by the State and the Regional Office to be consistent with the
deed restrictions, grant agreement, and floodplain management requirements.
Unallowable
Open Space
Uses
The following uses are generally not allowed on acquired open space land:
1.
The construction of flood damage reduction levees, dykes, berms, or floodwalls.
2.
All walled buildings or manufactured homes, except restrooms. Re-use of preexisting structures, unless all walls are removed.
3.
Fences and all other obstructions in the floodway. Fences outside of the floodway
must be designed to trap a minimum amount of debris.
4.
Storage of inventory supporting a commercial operation or governmental facility,
except for temporary storage in the open of wheeled vehicles. Long-term storage of
very limited amounts of equipment, such as lawnmowers, necessary for
maintenance of the acquired open space land is acceptable.
5.
Cemeteries, landfills, storage of any hazardous or toxic materials, or other uses that
are considered environmentally contaminating, dangerous, or a safety hazard.
6.
Pumping and switching stations.
7.
Above or below ground storage tanks.
8.
Impervious parking. Impervious parking includes asphalt, concrete, oil treated soil,
or other impervious material.
Hazard Mitigation Grant Program Desk Reference
Page 11-19
Section 11: Project Implementation Requirements
Unallowable
Open Space
Uses
(Continued)
9.
Use of off-site fill, except where necessary to avoid impacting on-site archeological
resources. Grading using on-site soil is permissible.
10. Installation of septic systems or re-use of pre-existing septic systems, except to
service a permissible restroom.
Any uses determined by the State, Region, or Director as inconsistent with the
regulations or deed restrictions.
Crop Storage
Facilities on
Open Space
Some limited crop storage capacity on-site is necessary in order for the farmer to
operate successfully. A limited exception to the development restrictions exists in order
to allow limited construction of such storage facilities.
The exception applies only to projects in which the purchasing
communities and the sellers agree to execute an easement using the
recommended language in Job Aid 11-3: Exhibit B, which is attached to
and recorded with the deed (or a more restrictive version). This language
(and the exception) should only be used for the purchase of agricultural
property. Other projects should use the more restrictive development
prohibitions listed in 44 CFR 206.434.
Job Aid 11-3
44 CFR 206.434
Facilities allowed under the exception include simple agricultural structures used
exclusively for agricultural purposes in connection with the production, harvesting,
storage, drying, or raising of agricultural commodities, including livestock, and limited to
the following:
"" General purpose barns for the temporary feeding of livestock which are open on at
least one side;
"" Pole-frame buildings with open or closed sides used exclusively for storage of farm
machinery and equipment, and related agricultural items; and
"" Steel grain bins and steel-frame corn cribs.
The Director of FEMA may approve, on a case-by-case basis, the erection of structures
which do not meet the criteria above before commencement of construction. However,
the structure must be constructed in compliance with the community’s floodplain
management ordinance, meet NFIP minimum requirements, and be compatible with
open-space uses and floodplain management policies and practices.
Agricultural
Properties and
Future
Disaster
Assistance
For the purposes of the prohibition against disaster assistance for land or easements
purchased with HMGP funds, benefits under the Federal Crop Insurance Act will be
treated as described below.
Uninsurable
Crops
Crops for which insurance is not available will not be eligible for any disaster
assistance and are grown at the farmer’s risk.
Payment through the Non-Insured Crop Disaster Assistance Program (NAP), 7 U.S.C.
Section 1519, for damage to crops for which insurance is not available, is “disaster
assistance,” and will not be available to owners of open space-restricted land.
Page 11-20
Hazard Mitigation Grant Program Desk Reference
Section 11: Project Implementation Requirements
Insurable
Crops
Applicability
of the URA
Benefits obtained through crop insurance programs offered under the Federal Crop
Insurance Act, as amended, 7 U.S.C. Section 1501 et seq., are not considered
“disaster assistance,” and will be available to owners of FEMA-restricted properties.
The Uniform Relocation Assistance and Real Property Acquisition Policies Act (also
known as the Uniform Relocation Act, or URA) mandates that property owners receive
just compensation for their property and relocation assistance from Federally
supported acquisition programs. This act also sets specific time limits and places other
requirements on the acquiring agency.
There are exceptions to most URA provisions, however, for voluntary
transactions which meet the specific criteria found at 49 CFR
24.101(a). These criteria require that the acquiring agency
(subgrantee) inform the property owner in writing:
49 CFR 24.101(a)
"" That it will not use its power of imminent domain to acquire the property in the
event negotiations fail; and
"" What it believes to be the fair market value of the property.
Additionally, the property may not be part of an intended, planned, or designated
project area where all or substantially all of the properties in the area is to be acquired
within specific time limits. To meet the criteria, no specific property must be acquired
in order to satisfy the program needs.
Notice of
Voluntary
Nature of
Project
Please note that this guidance on the URA is a summary of the requirements of 49
CFR Part 24. Those regulations supercede this guidance if any conflict is perceived.
Generally, most HMGP open-space acquisitions meet this voluntary
exception because projects must be voluntary. FEMA recommends that
the property owner and the subgrantee sign a Statement of Voluntary
Participation (see Job Aid 11-4). This ensures that the property owner
understands that he or she is not automatically eligible for additional
relocation benefits beyond the purchase price of the property. The
statement also protects the community if a dispute arises later. The
community retains the statement in its records, but does not need to
submit it to FEMA.
Hazard Mitigation Grant Program Desk Reference
Job Aid 11-4
Page 11-21
Section 11: Project Implementation Requirements
Mandatory
URA
Assistance for
Displaced
Tenants
Exceptions to this voluntary rule are all tenants and mobile home
owners who rent homepads. Tenants who must relocate as a result of
acquisition of their housing are entitled to Uniform Relocation Act
relocation benefits (such as moving expenses, replacement housing rental
payments, and relocation assistance advisory services), regardless of the
owner’s voluntary participation. This includes owners of manufactured
homes who lease the pad site.
Displaced
Tenants
The amount of assistance the community must pay to the tenant is
derived from 49 CFR Part 24, Subpart E. The Uniform Relocation Act
states that an eligible displaced tenant is entitled to:
49 CFR Part 24
"" Reasonable out-of-pocket (or fixed schedule) moving expenses; and Subpart E
"" Compensation for a reasonable increase in rent and utility costs incurred in
connection with the relocation.
A tenant displaced from a dwelling due to a Federally funded acquisition project is
entitled to a rental increase payment if:
"" That tenant rents or purchases and occupies a decent, safe, and sanitary
replacement dwelling within 1 year after the date he or she moves out of the
original dwelling; and
"" The tenant occupied the displacement dwelling for the 90 days preceding the
negotiations for acquisition of the property.
(The initiation of negotiations is defined as the first formal indication that the
subgrantee wants to purchase a particular property.)
Any tenant who occupied the dwelling prior to a disaster event is usually eligible. The
exception to this is if the project negotiations are unrelated to a disaster event or begin
so long after the event that the event is no longer a relevant factor. If the dwelling is
reinhabited after the event, former tenants are generally not eligible.
Compensation
for a
Reasonable
Increase in
Rent
Compensation for rent increase is 42 times the amount which is obtained by
subtracting the “base monthly rent” for the displacement dwelling from the monthly rent
and average monthly cost of utilities for a comparable replacement dwelling, or the
decent, safe, and sanitary replacement dwelling now occupied by the displaced
person.
Base Monthly
Rent
The “base monthly rent” for the displacement dwelling is the lesser of the average
monthly cost for utilities plus the rent at the displacement dwelling as determined by
FEMA, or 30 percent of the tenant’s average gross household income. (The URA
regulations define “tenant” as any individual, family, partnership, corporation, or
association.)
A rental assistance payment may, at the subgrantee’s discretion, be disbursed in either
a lump sum or in installments. However, if any HUD programs are providing partial
funding for the project, check to ensure lump sum disbursements are allowed.
Page 11-22
Hazard Mitigation Grant Program Desk Reference
Section 11: Project Implementation Requirements
Maximum
Rental
Increase
Payment
The rental increase payment may not exceed a total of $5,250. Communities may and
should exceed this limit in extraordinary circumstances, if necessary to ensure that a
displaced tenant will be able to obtain and retain a decent, safe, and sanitary
comparable unit outside of the high-hazard area.
Owners of
Manufactured
Homes
Mobile home owners who lease a homepad and who must relocate to a new homepad
as the result of acquisition of their pre-disaster homepad are entitled to URA relocation
benefits and replacement housing payments, regardless of the homepad owner’s
voluntary participation. A person who rents both the mobile home and homepad is
considered a tenant and would be compensated using assistance outlined for tenants.
Displaced mobile home owners who rent their homepads are entitled to assistance
detailed below in a) and either b) or c). However, in only rare cases may the
combination of the two types of URA assistance exceed $22,500.
a) Homepad Rental Assistance: The displaced mobile home owner and homepad
renter is entitled to compensation for rental and utility increases resulting from
renting a comparable homepad and moving expenses as detailed in the section for
tenants. Compensation for homepad rent increase is also 42 times the amount
which is obtained by subtracting the “base monthly rent” for the displacement
homepad from the monthly rent and average monthly cost of utilities for a
comparable replacement homepad. The rental increase payment may not exceed
a total of $5,250.
b) Replacement Housing Assistance: For URA purposes the displaced mobile home
owner is considered to be involuntarily displaced from his or her residence due to
the homepad owner (landlord) selling that property. Therefore, if the mobile home
is purchased, the displaced mobile home owner is also entitled to replacement
housing assistance to compensate for his or her need to find replacement housing.
Compensation for mobile home replacement is equivalent to the amount which is
obtained by subtracting the value of the displacement mobile home
from the cost of a new replacement mobile home. In acquisition
projects where the mobile homes are intact and are being relocated
to new homepads, there is no difference. The replacement housing
payment may not exceed a total of $22,500.
If the owner is also being compensated for homepad rental increase, then the
combination of rental and relocation assistance may not exceed a total of $22,500.
c) Costs To Move a Manufactured Home: If the manufactured
homeowner wishes to move their existing home to a new site,
rather than sell it, those moving costs are eligible. The reasonable
cost of disassembling, moving, and reassembling any attached
appurtenances, such as porches, decks, skirting and awnings,
anchoring the unit, and utility hook-up charges are included.
See Job Aid 11-5 for a sample Relocation Notice and Job Aid 11-6 for a
Sample Log for Receipt of Relocation Notice.
Hazard Mitigation Grant Program Desk Reference
Job Aid 11-5
and 11-6
Page 11-23
Section 11: Project Implementation Requirements
Use of URA
Payments
Relocation assistance payments for tenants are intended to ensure that these
individuals are able to relocate to decent, safe, and sanitary comparable replacement
dwellings outside the floodplain or hazard area. If a tenant chooses to purchase a
replacement dwelling, the tenant may apply the amount of rental assistance to which
he or she would be entitled towards the downpayment. Similarly, if a mobile home
owner who rents a homepad chooses to purchase a replacement pad or lot, the mobile
home owner may apply the amount of rental assistance to which he or she would be
entitled towards the downpayment.
Avoiding
Provision of
URA
Assistance to
Unlawful
Residents of
the U.S.
A person who is an alien not lawfully present in the United States is not eligible to
receive URA relocation benefits or relocation advisory services. The State may
approve exceptions if unusual hardship to the alien’s spouse, parent, or child who is a
U.S. citizen or an alien admitted for permanent residence, would otherwise result.
Subgrantees will ask tenants who are potential recipients of URA assistance to certify
that they are a U.S. citizen or are lawfully present in the U.S. Subgrantees will not
provide URA assistance to participants who refuse to certify or are not a U.S. citizen or
lawfully present.
Please refer to 49 CFR Part 24 as updated by the February 12, 1999
final rule change for detailed instructions to comply.
Page 11-24
49 CFR Part 24
Hazard Mitigation Grant Program Desk Reference
Section 11: Project Implementation Requirements
Hazardous Materials—Property Survey
Note: This is an optional form – used only if contamination is suspected.
NAME OF OWNER(S)
[1]
[2]
[3]
PROPERTY ADDRESS: _________________________________________________________________
TOWN:
STATE:
ZIP:
OWNER(S) ADDRESS: __________________________________________________________________
TOWN:
STATE:
ZIP:
PHONE NUMBER OF OWNER(S):
[1] (
)
[2] (
)
[3] (
)
I (We), ________________________________ as owner(s) of the above referenced property that
lies within the jurisdiction of ___________________________, in the State of _______________________,
represent and certify that I (we) have used due diligence to determine, to the best of my (our) knowledge,
that the description of the property described herein is accurate with respect to the presence or absence of
contamination from toxic or hazardous substances. The term “property” refers to the physical piece of legally
recorded land that is to be acquired.
.
Is or was the property currently or previously used for governmental,
commercial, light industrial, or industrial activities?
Yes
No
Yes
No
Yes
No
If yes, list specific type and nature.
2.
Are there any Aboveground Storage Tanks (AST), Underground Storage
Tanks (UST), or Leaking Underground Storage Tanks (LUST) present on the
property?
If yes, list type of each tank, capacity, and condition.
3.
Is there presently or has there been in the past any generation, treatment,
storage, disposal, release, or spill of petroleum products, or solid or hazardous
substances and/or wastes (this includes pesticides, hericides, or rodenticides),
other than normal quantities of household substances?
If yes, list type of activity, substance, and quantity involved.
Job Aid 11-1
Hazard Mitigation Grant Program Desk Reference
Page 11-25
Section 11: Project Implementation Requirements
Hazardous Materials—Property Survey (Continued)
4.
Is there presently or has there been in the past a transportation facility on what
is now your property? This includes parking lots, railroad yards, and railroad
or roadway right-of-way.
Yes
No
Yes
No
Yes
No
Yes
No
Yes
No
If yes, list type of facility or activity.
5.
Have you noticed any unusual odors or discoloration in your drinking water
or on your property?
If yes, describe the location, color, and odor of the water.
6.
For your property, is there presently or has there been in the past any:
(A)
environmental investigations conducted by Federal, State, local
government agencies, or private firms; or
(B)
environmental or Occupational Safety and Health Administration
(OSHA) citations or notices of violation?
If yes, list the type of investigation or violation and the preparer or origin of
the investigation or violation.
7.
Are there any drinking water wells or sewage septic tanks/systems on your
property, or do any of the structures contain asbestos or lead containing
materials?
If yes, please list and describe.
8.
If there are any issues not raised by the previous questions, please attach an
extra sheet describing the issues.
Job Aid 11-1
Page 11-26
Hazard Mitigation Grant Program Desk Reference
Section 11: Project Implementation Requirements
Hazardous Materials—Property Survey (Continued)
The property owner(s) acknowledge that this certification regarding hazardous substances and/or waste is a
material representation of fact upon which the Hazard Mitigation Grant Applicant (local government) and
other government entities rely upon to execute the property purchase. The property owner(s) certify that the
information contained within this Hazardous Materials – Property Survey Form is a full disclosure of all
available information to the best of their knowledge and that the owner(s) has exercised due diligence in
obtaining all relevant information.
Preparer
Signature: _________________________________ Date: _____________
Typed or Printed Name:
Title:
Owner(s)
Signature: _________________________________ Date: _____________
Typed or Printed Name:
Signature: _________________________________ Date: _____________
Typed or Printed Name:
Signature: _________________________________ Date: _____________
Typed or Printed Name:
Job Aid 11-1
Hazard Mitigation Grant Program Desk Reference
Page 11-27
Section 11: Project Implementation Requirements
Exhibit A—Attached to Warranty Deed
For fee simple acquisition (acquiring title to land), use Exhibit A
FEMA Regional Director should concur on the State-applicant agreement, which must reference and
attach Exhibit A.
The applicant shall reference Exhibit A in the deed and record it with the deed.
EXHIBIT A
In reference to the Deed between [property owner] participating in the FEMA acquisition project (“the
Grantor”) and [the Village/City/County], (“the Grantee”):
W HEREAS, The Robert T. Stafford Disaster Relief and Emergency Assistance Act, Public Law 93288, as amended ("The Stafford Act"), identifies the use of disaster relief funds under Section 404 (Hazard
Mitigation Grant Program, "HMGP"), including the acquisition and relocation of structures in the floodplain;
W HEREAS, Section 404 of the Stafford Act provides a process for a Community, through the State, to
make application for funding to be used to acquire interests in property, including the purchase of structures
in the floodplain, to demolish and/or remove the buildings, and to convert the land use into perpetual open
space;
W HEREAS, the [State] has made such application and has entered into a FEMA-State Agreement
dated [date] and herein incorporated by reference;
W HEREAS, the [Village/City/County], acting by and through the [Village/City/County] Board, has
entered into a cooperative grant agreement with [State] dated [date] (“Grant Agreement”), [OPTIONAL
include the following if the agreement is attached to the deed: and herein incorporated by reference];
W HEREAS, the terms of the Stafford Act, regulations promulgated thereunder (44 C.F.R. § 206.434),
and the FEMA-State Agreement require that the Grantee agree to conditions which are intended to restrict
the use of the land to open space in perpetuity in order to protect and preserve natural floodplain values; and
Job Aid 11-2
Page 11-28
Hazard Mitigation Grant Program Desk Reference
Section 11: Project Implementation Requirements
Exhibit A—Attached to Warranty Deed (Continued)
NOW, THEREFORE, the grant is made subject to the following terms and conditions:
1.
Terms. Pursuant to the terms of the Stafford Act, regulations promulgated thereunder (44 C.F.R.
206.434), as they read now and may be amended in the future, and the FEMA-State Agreement, the
following conditions and restrictions shall apply in perpetuity to each property described in the attached
deed and acquired by the Grantee pursuant to the Stafford Act § 404 acquisition program:
a.
Compatible Uses. The land shall be used only for purposes compatible with open space,
recreational, or wetlands management practices; in general, such uses include parks for outdoor
recreational activities, nature reserves, unimproved permeable parking lots and other uses
described in 44 C.F.R. § 206.434, as it reads now and may be amended in the future.
b.
Structures. No new structures or improvements shall be erected on the property other than:
i.
A public facility that is open on all sides and functionally related to the open space use;
ii.
A public rest room; or
iii. A structure that is compatible with the uses described in Paragraph 1(a), above, and approved
by the Director in writing prior to the commencement of the construction of the structure.
Any structures built on the property according to this paragraph shall be floodproofed or
elevated to the Base Flood Elevation plus one foot of freeboard.
c.
Disaster Assistance. No future disaster assistance from any Federal source for any purpose
related to the property may be sought, nor will such assistance be provided;
d.
Transfer. The Grantee agrees that it shall convey any interest in the property only with prior
approval of the transferee from the Regional Director of FEMA and only to another public entity or
to an organization qualified under Section 170(h) of the Internal Revenue Code of 1954, as
amended, and applicable regulations promulgated thereunder. However, the Grantee may convey
a lease to a private individual or entity for purposes compatible with the uses described in
Paragraph 1(a), above, including agriculture, with the prior approval of the Regional Director.
If title to the property is transferred to a public entity other than a qualified state or federal
agency with a conservation mission, it must be conveyed subject to a Conservation Easement
that shall be recorded with the deed and shall incorporate all terms and conditions set forth
herein, including the easement holder’s responsibility to enforce the easement. This shall be
accomplished by one of the following means:
2.
i.
The Grantee shall convey, in accordance with section (d), above, a conservation easement to
someone other than the title holder, or
ii.
At the time of title transfer, the Grantee shall retain such conservation easement, and record it
with the deed.
Inspection. FEMA, its representatives, and assigns, including [State], shall have the right to enter upon
the property, at reasonable times and with reasonable notice, for the purpose of inspecting the property
to ensure compliance with the terms of the grant.
Job Aid 11-2
Hazard Mitigation Grant Program Desk Reference
Page 11-29
Section 11: Project Implementation Requirements
Exhibit A—Attached to Warranty Deed (Continued)
3.
Monitoring and Reporting. Every two (2) years on [date], the Grantee, through [State], shall submit to
the FEMA Regional Director a report certifying that the Grantee has inspected the subject property
within the month preceding the report, and that the property continues to be maintained consistent with
the provisions of the grant.
4.
Enforcement. If the subject property is not maintained according to the terms of the grant, the Grantee,
[State], and FEMA, its representatives, and assigns are responsible for taking measures to bring the
property back into compliance.
5.
a.
The State will notify the Grantee in writing and advise the Grantee that it has 60 days to
correct the violation.
b.
If the Grantee fails to demonstrate a good faith effort to come into compliance with the terms
of the grant within the 60-day period, the State shall enforce the terms of the grant by taking
any measures it deems appropriate, including but not limited to bringing an action at law or in
equity in a court of competent jurisdiction.
c.
FEMA, its representatives and assigns may enforce the terms of the grant by taking any
measures it deems appropriate, including but not limited to the following:
i.
Requiring transfer of title in accordance with Paragraph 1(d). The Grantee shall bear the
costs of bringing the property back into compliance with the terms of the grant; or
ii.
Bringing an action at law or in equity in a court of competent jurisdiction against the State or
the Grantee.
Severability. Should any provision of this grant or the application thereof to any person or
circumstance be found to be invalid or unenforceable, the rest and remainder of the provisions of this
grant and their application shall not be affected and shall remain valid and enforceable.
[Signed by Grantor(s) and Grantee, witnesses and notarization in accordance with local law.]
Grantor’s Signature
Date
Name (printed or typed)
Grantee’s Signature
Date
Grantee’s Name
Grantee’s Title
Job Aid 11-2
Page 11-30
Hazard Mitigation Grant Program Desk Reference
Section 11: Project Implementation Requirements
Exhibit B—Conservation Easement
For acquisition projects on large parcels and agricultural properties use Exhibit B.
1)
FEMA Regional Director should concur on the State-applicant agreement which must reference and
attach Exhibit B.
2)
The applicant shall reference Exhibit B in the deed and record it with the deed.
[Community]
Project No.:
__________
Parcel No.:
__________
EXHIBIT B
W HEREAS, The Robert T. Stafford Disaster Relief and Emergency Assistance Act, Public Law 93-288,
as amended ("Stafford Act"), identifies the use of disaster relief funds under Section 404 (Hazard Mitigation
Grant Program, "HMGP"), including the acquisition and relocation of structures in the floodplain;
W HEREAS, Section 404 of the Stafford Act provides a process for a Community, through the State, to
make application for funding to be used to acquire interests in real property, demolish or relocate structures
on acquired property, and convert the property into open space;
W HEREAS, the [State] has made such application and has entered into a grant agreement with FEMA,
date [date], and herein incorporated by reference;
W HEREAS, Grantee, acting by and through the [Community] Board, has entered into a cooperative
sub-grant agreement with [State], date [date], and herein incorporated by reference;
W HEREAS, the terms of the Stafford Act, regulations promulgated thereunder (44 C.F.R. § 206.434),
and the grant sub-grant agreement require that Grantee agree to conditions which are intended to restrict the
use of the land to open space in perpetuity in order to protect and preserve natural floodplain values;
W HEREAS, [State] also has recognized the need to preserve the natural and open condition of the
land and so authorizes conveyance of an easement to that end under the provisions of [the state law, cite];
W HEREAS, the [Community] Board has determined that it is necessary in order to promote the public
interest for the purposes provided in the Stafford Act to acquire a conservation easement to this certain real
property owned by the Grantor;
Job Aid 11-3
Hazard Mitigation Grant Program Desk Reference
Page 11-31
Section 11: Project Implementation Requirements
Exhibit B—Conservation Easement (Continued)
NOW, THEREFORE, the Grantor, for and in consideration of the opportunity to participate in the FEMAfunded acquisition project, does voluntarily grant and convey to the Grantee a conservation easement in
perpetuity over the property situated in the [Community], County of [county], State of [state] and described in
Attachment A.
1.
Purpose. This grant of a conservation easement is made for conservation purposes in order to restrict
the use of the land to open space in perpetuity to protect and preserve natural floodplain values and to
prevent any future use of the property that will significantly impair or interfere with the open space
values of the property.
2.
Terms. In order to accomplish the purposes of this easement and, pursuant to the terms of the
Stafford Act, regulations promulgated thereunder (44 C.F.R. 206.434), as they read now and may be
amended in the future, the FEMA-State Agreement, and the Grant Agreement, the following conditions
and restrictions shall apply in perpetuity and shall run with the land as an incorporeal interest in the
property described in Attachment A:
a.
Compatible uses. The land shall be used only for purposes compatible with open space,
recreational, or wetlands management practices; in general, such uses include parks for outdoor
recreational activities, nature reserves, unimproved pervious parking lots and other uses
described in 44 C.F.R. § 206.434, as it reads now and may be amended in the future.
b.
Structures. No new structures or improvements shall be erected on the property other than:
i.
A public facility that is open on all sides and functionally related to the open space use;
ii.
A public rest room;
iii.
A structure that is compatible with the uses described in Paragraph 2(a), above, and
approved by the Director in writing prior to the commencement of the construction of the
structure; or
iv.
Simple agricultural structures used exclusively for agricultural purposes in connection with
the production, harvesting, storage, drying, or raising of agricultural commodities, including
livestock, and limited to—
a) General purpose which are open on at least one side and are for the temporary
storage of livestock.
b) Pole frame buildings with open or closed sides used exclusively for storage of farm
machinery and equipment, and related agricultural items.
c) Steel grain bins and steel frame corn cribs.
Job Aid 11-3
Page 11-32
Hazard Mitigation Grant Program Desk Reference
Section 11: Project Implementation Requirements
Exhibit B—Conservation Easement (Continued)
[OPTIONAL include the following if applicable: provided that (a) the structure is the subject
of approval by the County in accordance with the provisions of the [County Flood Plain Code,
Section number et seq. of the County Flood Plain Code name, State, as they now read and
as they may be amended in the future, and (b) NFIP requirements for wet-floodproofing (or
dry-floodproofing or elevation, where practicable) are met, pursuant to 44 C.F.R. 60.3;]
Any structures built on the property according to this paragraph shall be floodproofed or
elevated to the Base Flood Elevation plus one foot of freeboard.
c.
Disaster Assistance. No future disaster assistance from any Federal source for any purpose
related to the property may be sought, nor will such assistance be provided;
d.
Transfer. The Grantee agrees that it shall convey the easement only with prior approval by the
Regional Director of FEMA of the transferee. The easement may be transferred only to
someone other than the title holder and only to another public entity or to an organization
qualified under Section 170(h) of the Internal Revenue Code of 1954, as amended, and
applicable regulations promulgated thereunder, and authorized to acquire and hold conservation
easements.
i.
The Grantor may convey title, an easement, license, lease, or other interest in the land.
Such conveyance, whether implied or express, shall be subject to all conditions and
restrictions described herein, which shall run with the land in perpetuity.
3.
Inspection. The Grantee and FEMA, its representatives, and assigns, including [State], shall have the
right to enter upon the property, at reasonable times and with reasonable notice, for the purpose of
inspecting the property to ensure compliance with the terms of the easement.
4.
Monitoring and Reporting. Every two (2) years on [date], the Grantee, through [State], shall submit to
the FEMA Regional Director a report certifying that the Grantee has inspected the subject property
within the month preceding the report, and that the property continues to be maintained consistent with
the provisions of the easement.
5.
Enforcement. If the subject property is not maintained according to the terms of the easement, the
Grantee[State], and FEMA, its representatives, and assigns, are responsible for taking measures to
bring the property back into compliance.
Job Aid 11-3
Hazard Mitigation Grant Program Desk Reference
Page 11-33
Section 11: Project Implementation Requirements
Exhibit B—Conservation Easement (Continued)
6.
a.
The Grantee will notify the titleholder of the violation in writing and advise the title holder that it
has 60 days to correct the violation.
b.
If the title holder fails to demonstrate a good faith effort to come into compliance with the terms
of the easement within the 60-day period, the Grantee shall notify [State] of the violation.
c.
The State shall enforce the terms of the easement by taking any measures it deems
appropriate, including but not limited to bringing an action at law or in equity in a court of
competent jurisdiction.
d.
FEMA, its representatives and assigns may enforce the terms of the easement by taking any
measures it deems appropriate, including but not limited to the following:
i.
Requiring transfer of the conservation easement in accordance with Paragraph 2d, or;
ii.
Bringing an action at law or in equity in a court of competent jurisdiction against the State
or the Grantee.
Severability. Should any provision of this easement, or the application thereof to any person or
circumstance, be found to be invalid or unenforceable, the rest and remainder of the provisions of this
easement and their application shall not be affected and shall remain valid and enforceable.
The Grantee accepts the easement and acknowledges its obligations pursuant to the grant and sub-grant
agreements and this document to monitor the use of the land and enforce the provision of the easement.
Upon execution of this easement by the parties, the Grantee will officially record the easement.
Grantor’s Signature
Date
Name (printed or typed)
Grantee’s Signature
Date
Grantee’s Name
Grantee’s Title
Job Aid 11-3
Page 11-34
Hazard Mitigation Grant Program Desk Reference
Section 11: Project Implementation Requirements
Statement of Voluntary Participation
THIS AGREEMENT is made and entered into this _____ day of ____________, ____, by and between
______________, hereinafter referred to as “Sub-grantee,” by its authorized agent, ______________,
and _______________, hereinafter referred to as “Seller.” The parties agree as follows:
1.
Seller affirms that he/she/they is/are the owner/owners of property located at -______________,
hereinafter referred to as “property.”
2.
Sub-grantee has notified Seller that the Sub-grantee may wish to purchase property, and, if Seller
agrees to sell, Seller must permanently relocate from property.
3.
Sub-grantee has notified Seller that it believes the fair market value (FMV) of property, as of
_______________ is $______________ as determined by appropriate valuation procedures
publicized and implemented by Sub-grantee.
4.
Sub-grantee has notified Seller that Seller is not required to sell property and Sub-grantee will not
use its power of eminent domain for the purpose of this acquisition project to acquire property if
Seller chooses not to sell it.
5.
Sub-grantee has notified Seller that if Seller agrees to sell property to Sub-grantee, such a
transaction is voluntary. Consequently, Seller is not entitled to relocation benefits provided by the
Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, which are
available to property owners who must sell their properties involuntarily.
6.
Sub-grantee affirms that it has provided the notifications and explained the information described in
the preceding paragraphs, and property identified above is not a part of an intended, planned, or
designated project area where all or substantially all of the property within the area is to be acquired
within specific time limits.
7.
This Agreement shall expire on ______________, unless Seller has voluntarily sold property to
Sub-grantee by that date.
Property Owner Signature
Date
Property Owner Signature
Date
Sub-grantee’s Authorized Agent Signature
Date
Job Aid 11-4
Hazard Mitigation Grant Program Desk Reference
Page 11-35
Section 11: Project Implementation Requirements
Sample Relocation Notice
[DATE]
RELOCATION NOTICE
for (MOBILE HOME COURT NAME) Residents
(ADDRESS)
(TOWN), (STATE)
On or before (DATE), each mobile home owner and resident in the (MOBILE HOME COURT NAME)
received from (NAME), owner of (MOBILE HOME COURT NAME), a 90-day Notice to Vacate. As you
were informed in that notice, (MOBILE HOME COURT NAME) signed an agreement to sell the real estate
of the mobile home court to the Town of (NAME). This Relocation Notice supplements the 90-day Notice
to Vacate.
Because Federal funds will be used toward the purchase of (MOBILE HOME COURT NAME) by the
Town of (NAME) and, as renters, you will be involuntarily displaced, you are entitled to certain rights
under the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as
amended, also referred to as URA. The related regulations are the Uniform Relocation Assistance and
Real Property Acquisition Regulations for Federal and Federally Assisted Programs; Final Rule and
Notice, 49 CFR Part 24.
Assistance Services
Each mobile home resident is eligible for reasonable relocation advisory services, which are being
provided by representatives of the Town of (NAME). Contact persons for the Town of (NAME) are listed
in the final section of this notice. IT IS VERY IMPORTANT THAT YOU KEEP IN CONTACT WITH YOUR
ADVISORY ASSISTANCE PROVIDERS, so that they can provide you with the best possible relocation
advisory assistance in relocating to a new home. They are available to assist you with reasonable
relocation services, including referrals to replacement properties, help in filing payment claims, and other
necessary assistance to help you successfully relocate.
Job Aid 11-5
Page 11-36
Hazard Mitigation Grant Program Desk Reference
Section 11: Project Implementation Requirements
Sample Relocation Notice (Continued)
Moving Expenses
Each mobile home household will be eligible for moving assistance to be paid either on actual reasonable
expenses based on receipts, or by a flat moving fee based on the number of rooms of furniture. Each
household needs to choose one of these two moving expense options, but this decision does not need to
be confirmed with the Town until after you have completed your move. The Town has made the
determination that the number of rooms of furniture in each mobile home is four (4) rooms. Therefore,
households that choose the flat moving fee option will receive $650.00 for moving expenses, as
established in the “Residential Moving Expense and Dislocation Allowance Schedule” under 49 CFR
Part 24.
Method of payment for households that choose the actual reasonable expenses option will be by check
from the Town of (NAME) after moving expenses are confirmed by the Town. Method of payment for
households that choose the flat moving fee option will be by check from the Town of (NAME) as soon as
the Town has the funds available, but not longer than fourteen (14) days from the day that you confirm
your choice of moving expense options with the Town. Please contact your Town of (NAME) advisory
assistance providers for further assistance or if you have any questions or problems with moving.
Replacement Housing Payment
Each mobile home resident who has resided in the (MOBILE HOME COURT NAME) for at least the 90
days prior to [DATE], the date of real estate negotiations, may be eligible for rental assistance or home
ownership assistance not to exceed $5,250, also referred to as a rent/utility differential. Eligibility for
rent/utility differential is determined by the following factors: length of residency in the (MOBILE HOME
COURT NAME), family income, average 12-month rent/utility costs at (MOBILE HOME COURT NAME)
and expected monthly rent/utility costs in a comparable replacement dwelling. Utilities to be considered
are electricity and natural gas. Method of payment for rent/utility differential will be by check from the
Town of (NAME) in a lump sum after each of the determining factors listed above is confirmed. Part of
this confirmation will include an inspection by the Town of (NAME) of the replacement dwelling to
determine whether it is decent, safe, and sanitary. Please contact your Town of (NAME) advisory
assistance providers for further details or if you have any questions or problems with relocating to a new
home.
Job Aid 11-5
Hazard Mitigation Grant Program Desk Reference
Page 11-37
Section 11: Project Implementation Requirements
Sample Relocation Notice (Continued)
90-Day Notice
This Relocation Notice supplements the 90-day written notice that you received from (MOBILE HOME
COURT NAME) on or before [DATE]. You will not be required to move permanently until ninety (90) days
after a comparable replacement dwelling has been made available, unless the Town determines that
continued occupancy of the mobile home court would constitute a substantial danger to health or safety.
Please contact your Town of (NAME) advisory assistance providers for further details or if you have any
questions or problems with relocating to a new home.
Appeals
Within sixty (60) days of each relocation assistance/URA determination, each (MOBILE HOME COURT
NAME) mobile home owner or resident has the right to appeal URA determinations. Appeals must be in
writing to (NAME AND ADDRESS OF HEAD LOCAL OR STATE OFFICIAL – MAY NOT HAVE BEEN
DIRECTLY INVOLVED IN URA DETERMINATIONS).
Town of (NAME) Advisory Assistance Providers
IF YOU HAVE QUESTIONS OR NEED FURTHER ASSISTANCE, PLEASE CONTACT:
(NAME), Town Planner, or
Town Office (TELEPHONE NUMBER)
(NAME), Project Coordinator
Town Office (TELEPHONE NUMBER)
Home (TELEPHONE NUMBER)
Job Aid 11-5
Page 11-38
Hazard Mitigation Grant Program Desk Reference
Section 11: Project Implementation Requirements
Sample Log for Receipt of Relocation Notice
Log for Receipt of
RELOCATION NOTICE
I have received a copy of the (DATE) Relocation Notice for (MOBILE HOME COURT NAME) Residents. I
understand that my receipt of this notice serves to notify all persons in my household at the (MOBILE
HOME COURT NAME).
Lot #
Print Name
Signature
Date
1
2
3
4
5
Owner of Lot #5
Mobile Home
6
7
8
9
10
11
12
13 vacant lot
14
Job Aid 11-6
Hazard Mitigation Grant Program Desk Reference
Page 11-39
Section 11: Project Implementation Requirements
FEMA Form 90-69D
Declaration of Applicant
Job Aid 11-7
Page 11-40
Hazard Mitigation Grant Program Desk Reference
Section 12: Allowable
Project Costs
Section 12: Allowable Project Costs
Contents
General Cost Criteria for Federal Awards ........................................................................................ 12-1
Different Governing Principles ........................................................................................................ 12-1
Criteria for State, Local, or Native American Tribal Governments ............................................. 12-2
Reasonable Costs ......................................................................................................................... 12-2
Unallowable Costs ......................................................................................................................... 12-2
Project-Specific Allowable Costs..................................................................................................... 12-3
Costs for Post-Disaster Code Enforcement ...................................................................................... 12-3
Environmental Mitigation Costs....................................................................................................... 12-3
Acquisition/Relocation Project Costs ............................................................................................... 12-4
Acquisition of Property and Demolition of Structures ............................................................... 12-4
Acquisition of Property and Relocation of Structures ............................................................... 12-4
Additional Award To Relocate................................................................................................ 12-4
Job Aid 12-1: Allowable Costs Under OMB Circular A-87 ................................................................ 12-5
Job Aid 12-2: Sample Project Cost Breakdowns ............................................................................. 12-9
Hazard Mitigation Grant Program Desk Reference
Section 12: Allowable Project Costs
General Cost
Criteria for
Federal
Awards
General policies for determining allowable costs are established in
44 CFR 13.22, as follows:
"" Grant funds may be used only for:
44 CFR 13.22
" "The allowable costs of the grantees, subgrantees, and cost-type contractors,
including allowable costs in the form of payments to fixed-price contractors;
and
" "Reasonable fees or profit to cost-type contractors, but not any fee or profit (or
other increment above allowable costs) to the grantee or subgrantee.
"" For each kind of organization eligible to apply for Hazard Mitigation Grant Program
funds, there is a set of Federal principles for determining allowable costs.
Different
Governing
Principles
The various entities eligible to apply HMGP funds are controlled by different sets of
governing principles. The table below indicates what resource contains the governing
principles for each type of applicant.
Governing Principles for Allowable Costs
Applicant
Governing Principle
State, Local, or Native American
tribal government
OMB Circular A-87
Private nonprofit organization,
other than
OMB Circular A-122
(1) an institution of higher
education;
(2) a hospital; or
(3) an organization named in
OMB Circular A-122 as not
subject to that circular.
Educational institution
OMB Circular A-21
Because the majority of HMGP grants are made to State and local governments and
Native American tribal organizations, this Desk Reference will focus on the guidelines
in OMB Circular A-87. Please refer to the appropriate circular listed above if the
subgrantee is a hospital, educational institution, or private nonprofit organization.
Hazard Mitigation Grant Program Desk Reference
Page 12-1
Section 12: Allowable Project Costs
Criteria for
State, Local,
or Native
American
Tribal
Governments
To be allowable, costs incurred by State, local, or tribal governments must meet the
following general criteria:
"" Be necessary and reasonable for proper and efficient performance and
administration of Federal awards;
"" Conform to any limitations or exclusions set forth in OMB Circular A-87, Federal
laws, terms and conditions of the Federal award, or other governing regulations as
to types or amounts of cost items;
"" Be allocable to Federal awards under the provisions of OMB Circular A-87;
"" Be authorized or not prohibited under State or local laws or regulations;
"" Not be included as a cost or used to meet cost-sharing or matching requirements
of any other Federal award in either the current or a prior period, except as
specifically provided by Federal law or regulation;
"" Be consistent with policies, regulations, and procedures that apply uniformly to
both Federal awards and other activities of the governmental unit;
"" Be accorded consistent treatment. A cost may not be assigned to a Federal award
as direct cost if any other costs incurred for the same purpose in like
circumstances has been allocated to the Federal award as an indirect cost;
"" Except as otherwise provided in OMB Circular A-87, be determined in accordance
with generally accepted accounting principles;
"" Be the net of all applicable credits; and
"" Be adequately documented.
Reasonable
Costs
The State should consider whether project costs are reasonable as they
review the budget within an application, as they monitor the
implementation, and when a subgrantee requests budget or scope
changes. Reasonable costs, as defined by OMB Circular A-87, (see Job
Aid 12-1) are those that do not exceed costs that would be incurred by a Job Aid 12-1
prudent person in the same circumstances at the same time. Elements
to consider when determining reasonableness of a given cost include:
"" Federal, State, and other laws and regulations;
"" Terms and conditions of the Federal award; and
"" Market prices for comparable goods or services.
Unallowable
Costs
The State will disallow costs that are unreasonable or are not part of the approved
scope of work. Therefore, the State will always exercise judgment in its review of
costs. Obvious areas of caution include:
"" Costs incurred prior to grant approval other than design and technical or feasibility
studies that were incurred post disaster;
"" Items covered by the subgrantee administrative costs (because such items are not
allowable project costs);
"" The loss of tax revenue due to the public acquisition of land for open space (which
does not meet the criteria for allowable costs); and
"" Maintenance of the project after initial implementation (for example, mowing open
space, or ensuring hurricane shutters are operable).
Page 12-2
Hazard Mitigation Grant Program Desk Reference
Section 12: Allowable Project Costs
ProjectSpecific
Allowable
Costs
Additional governing principles apply to specific types of projects and further determine
allowable costs for those types of projects. Three examples include:
"" Costs for post-disaster code enforcement;
"" Environmental mitigation costs; and
"" Acquisition/relocation project costs.
Allowable costs for these types of projects are described below.
Costs for
PostDisaster
Code
Enforcement
Only extraordinary code enforcement costs are allowable. Extraordinary code
enforcement costs are the costs to ensure mitigation-based codes are implemented
during disaster reconstruction after normal costs of the building department are
deducted.
Costs might include staffing, equipment purchases, office rental, transportation,
supplies, and similar expenses.
Extraordinary costs equal disaster costs minus normal costs, minus cost of fee
waivers.
Normal costs can be determined from a monthly average of payroll and office
expenses during the most recent 12-month period that does not included Federal,
State, or local disaster declarations.
Disaster costs can be determined by the payroll and office expenses during the period
of assistance. If the applicant must purchase new equipment, only the equivalent
rental cost of this equipment for the period of assistance is considered a disaster cost.
The revenues generated by fees for inspections or permits, whether collected or not,
must be deducted.
If a community has already received Federal assistance for meeting emergency
building inspection needs (to post buildings, determine habitability, etc.), these costs
must be deducted in determining extraordinary costs.
The revenues generated by fees for inspections or permits, whether collected or not,
must be deducted since this is not an extraordinary cost.
"
Environmental
Mitigation
Costs
TIP: See page 11-8 for a discussion of the conditions
a State agrees to meet for post-disaster code
enforcement projects.
The costs to implement any environmental or historic-preservation mitigation actions
required in relation to project approval are allowable costs. These costs may include
recordation or relocation of historic structures, Phase III archeological data recovery,
protection for endangered species, etc. These costs are treated as project costs and
are cost shared.
Hazard Mitigation Grant Program Desk Reference
Page 12-3
Section 12: Allowable Project Costs
Acquisition/
Relocation
Project
Costs
Acquisition of
Property and
Demolition of
Structures
Eligible costs for real property acquisition and relocation projects depend upon the
scope of the project. Below are three examples of typical scopes for such projects and
the general costs allowable.
The following costs associated with the acquisition of hazardprone real property and
the demolition of structures are allowable:
"" Up to pre-event fair market value of the real property (land and structures) either at
the time of sale or immediately prior to the disaster event;
"" Necessary title search, easement and deed recordation, title insurance, and title
transfer fees;
"" Legal fees associated with property transfer contract review and conducting the
real estate settlement;
"" Appraisal costs; and
"" Demolition and removal of structures.
Acquisition of
Property and
Relocation of
Structures
The following costs associated with the acquisition of hazardprone property and
physical relocation of structures are allowable:
"" Up to pre-event fair market value of the real property (land only);
"" Necessary title search, easement and deed recordation, title insurance, and title
transfer fees;
"" Legal fees associated with property transfer contract review and conducting the
real estate settlement;
"" Appraisal costs;
"" Jacking and moving of structure to new site; and
"" Necessary individual site preparations including foundation, water, sewer, and
utility hookups, but not aesthetic improvements and landscaping, new property
acquisition, or public infrastructure and utility development.
Additional
Award To
Relocate
There may be a significant shortfall between the amount the community pays an owner
for his/her damaged residence and the cost of a comparable replacement home in a
non-hazardprone location. In exceptional circumstances, the State may allow the
community to provide owner-occupants the difference between the two amounts, up to
$22,500 per property. The subgrantee must meet other criteria that concern funding
availability, housing availability and impact the project. See Section 11 for further
detail.
Job Aid 12-2 provides examples of typical project costs for several
project types. It may be useful in identifying allowable costs.
Page 12-4
Job Aid 12-2
Hazard Mitigation Grant Program Desk Reference
Section 12: Allowable Project Costs
Allowable Costs Under OMB Circular A-87
The table below lists categories and examples of allowable and unallowable costs under FEMA’s disaster
assistance programs. The table is not a complete list, however. For more information about allowable
and unallowable administrative costs, refer to Office of Management and Budget (OMB) Circular A-87,
Cost Principles for State, Local, and Native American Tribal Governments. Note: These costs are
allowable within the total amount of the grant and relevant administrative or management caps. (See
Section 13 to calculate caps.) Costs must be reasonable and must apply to grant performance.
COST CATEGORY
" Advertising
EXAMPLES
" " Radio, television, and
newspaper ads
" " Direct mail campaigns
NOTES/RESTRICTIONS
When incurred for:
" " Recruitment of personnel
" " Procurement of goods and services
" " Advertising costs are not allowable
if they are incurred solely to
promote the governmental unit
" Alcoholic Beverages
" Audit Services
" " Costs for alcoholic beverages are
not allowable
" " Case or project reviews
" " Project inspections
Provided that the audits:
" " Comply with the provisions of the
Single Audit Act (see OMB Circular
A-128)
OR
" " Have otherwise been required
and/or approved by FEMA
" Bad Debts
" " Uncollectible funds
" " Losses arising from uncollectible
amounts and other claims, and
related costs, are not allowable
" Bonding Costs
Costs associated with attaining
surety bonds for employees
and officials
Provided that bonding is in accordance
with sound business practice
Job Aid 12-1
Hazard Mitigation Grant Program Desk Reference
Page 12-5
Section 12: Allowable Project Costs
Allowable Costs Under OMB Circular A-87 (Continued)
COST CATEGORY
" Budgeting
EXAMPLES
Budget:
NOTES/RESTRICTIONS
Allowable
" " Development
" " Preparation
" " Presentation
" " Execution
" Communications
" " Telephone
Allowable
" " Mail and messenger
service
" Compensation for
Personnel
" " Wages and salaries
Provided that compensation is
reasonable for the services provided
" " Fringe benefits
" Donated Services
Volunteered time by:
" " Technical personnel
" " Consultants
" " Skilled and unskilled labor
" Disbursing Services
" Equipment and
Other Capital
Expenditures
" " The value of donated services is
not reimbursable as either a direct
or an indirect cost
" " The value of donated services is
allowable to meet cost-sharing or
matching requirements
Costs associated with the
accounts payable function
Allowable
" " The net invoice price of
equipment, including
modifications,
attachments, or
accessories
For nonexpendable items of equipment
having:
" " Ancillary charges,
including taxes and freight
" " A useful life of more than 1 year
" " An acquisition cost of $5,000 or
more
Items of equipment with an acquisition
cost of less than $5,000 are considered
supplies
Job Aid 12-1
Page 12-6
Hazard Mitigation Grant Program Desk Reference
Section 12: Allowable Project Costs
Allowable Costs Under OMB Circular A-87 (Continued)
COST CATEGORY
"
General
Government
Expenses
EXAMPLES
" " Salaries and expenses of
the Office of the Governor
and/or State legislatures,
tribal councils, or other
local governmental bodies
NOTES/RESTRICTIONS
" " Normally not allowable
" " Costs associated with
government services
normally provided to the
general public (e.g., fire
and police)
" Legal Expenses
" " Professional and/or
support staff time
" " Legal expenses required for
program administration are
allowable
" " Filing fees
" " Legal expenses for prosecution of
claims against the Federal
Government are not allowable
"
Maintenance,
Operation, and
Repairs
" " Utilities
Allowable if they:
" " Insurance
" " Keep property in efficient operating
condition
" " Security
" " Janitorial services
"
Materials and
Supplies
" " Do not add to the permanent value
of property
" " Equipment repairs
" " Are not included in rental charges
for space
" " Stationery
Allowable after deducting:
" " General office supplies
" " Cash and/or trade discounts
" " Equipment with an
acquisition cost of less
than $5,000
" " Rebates
" " Other allowances
Job Aid 12-1
Hazard Mitigation Grant Program Desk Reference
Page 12-7
Section 12: Allowable Project Costs
Allowable Costs Under OMB Circular A-87 (Continued)
COST CATEGORY
" Motor Pools
EXAMPLES
Vehicle:
NOTES/RESTRICTIONS
" " Allowable if charged to the program
at a mileage or fixed rate:
" " Maintenance
" " Inspection
Under HMGP, State travel is only
allowable under Administrative Costs.
" " Repair services
"
Public Relations
Activities directed toward:
When:
" " Maintaining the image of
the governmental unit
" " Incurred to communicate with the
public and press pertaining to the
specific program
" " Promoting understanding
and favorable relations
with the public
" " Necessary to conduct general
liaison with the news media and
government public affairs officers to
keep the public Informed
" " Public relations costs are not
allowable if they are incurred solely
to promote the governmental unit
"
Training
"
Travel
Employee training and
development
Allowable to the extent that the training
is required for program operation.
" " Transportation
Provided that:
" " Lodging
" " Employees are traveling on official
business
" " Subsistence
" " The costs do not exceed the
amount normally allowed by the
agency in its regular operations
" " Under HMGP, State travel is only
allowable under Administrative
Costs
Job Aid 12-1
Page 12-8
Hazard Mitigation Grant Program Desk Reference
Section 12: Allowable Project Costs
Sample Project Cost Breakdown
Compiling a summary of estimated costs, like the ones shown below, may be useful in identifying eligible
project costs.
Cost Breakdown for an Acquisition and Structure Relocation Project
Item
Unit
Pre-event fair market value of hazardprone site—land only (.2–6.0
acres)
lump sum
Necessary title search, easement and deed recordation, title
insurance, and title transfer fees
hourly rate
Legal fees associated with property transfer contract review and
conducting the real estate settlement
hourly rate
Appraisal costs
hourly rate
Excavation
cubic yard
Boring for lift beams (under slab)
linear foot
Jacking
foot
Moving operation
lump sum
Foundation (concrete, brick, etc.)
thousand (880 sq. ft)
Water supply (high range for individual well)
lump sum
Sewer hookup (high range for septic tank)
lump sum
Sanitary sewer line 4”–6”, in place
linear foot
Water service line ¾”–1”, in place
linear foot
Internal/external repair—flooring, painting, etc. (houses to 1,000
sq. ft.)
lump sum
Grading
square foot
Seeding
square foot
Job Aid 12-2
Hazard Mitigation Grant Program Desk Reference
Page 12-9
Section 12: Allowable Project Costs
Sample Project Cost Breakdown (Continued)
Cost Breakdown for a Bank Stabilization Project
Item
Unit
Clearing and grubbing
job
Channel excavation
cubic yard
Construct storm outlet
each
Extend aerial sanitary sewer crossing
linear foot
Relocate 18” sanitary sewer
linear foot
Slope stabilization on 2:1 slopes
square yard
Grade control structures
each
Seeding
acre
Property acquisition
square foot
Riprap between drop and existing grade
ton
Fill in channel upstream of drop structure
ton
Job Aid 12-2
Page 12-10
Hazard Mitigation Grant Program Desk Reference
Section 13:
Administrative/Grants
Management
Section 13: Administrative/Grants Management
Contents
State Responsibilities ..................................................................................................................... 13-1
Management Costs and Administrative Costs.................................................................................. 13-1
State Management Costs ...................................................................................................... 13-1
Negotiation of Management Costs ......................................................................................... 13-1
Allowable Management Costs................................................................................................ 13-2
Unallowable Management Costs............................................................................................ 13-2
Preparing a Request for Management Costs .......................................................................... 13-3
Grantee Administrative Costs ................................................................................................ 13-3
Calculation of Grantee Administrative Costs ........................................................................... 13-4
Allowable Grantee Administrative Costs ................................................................................. 13-4
Subgrantee Administrative Costs ........................................................................................... 13-4
Subgrantees ......................................................................................................................... 13-5
Calculation of Subgrantee Administrative Costs...................................................................... 13-5
Allowable Administrative Subgrantee Costs............................................................................ 13-6
Program Income............................................................................................................................ 13-6
Cost-Share and Matching ............................................................................................................... 13-6
FEMA Cost-Share................................................................................................................. 13-7
Non-Federal Cost-Share ....................................................................................................... 13-7
Permanent Federal Identity ................................................................................................... 13-7
In-Kind Matches.................................................................................................................... 13-7
Other Federal Funds ............................................................................................................. 13-8
Private Funds ....................................................................................................................... 13-8
The 5% Initiative and Grants Management ...................................................................................... 13-9
Hazard Mitigation Grant Program Lock-In Ceiling.................................................................... 13-9
Cost-Share Ratios ................................................................................................................ 13-9
Program Funding Estimates Fluctuate.................................................................................... 13-9
Insular Areas ................................................................................................................................. 13-9
Compact of Free Association Funds ..................................................................................... 13-10
Compliance With the Administrative Requirements of CFR 44 Parts 13 and 206 .............................. 13-10
Processing of Requests for Advances of Funds and Reimbursements ............................................ 13-10
Quarterly Reports ........................................................................................................................ 13-11
Progress Reports................................................................................................................ 13-11
Financial Status Reports ..................................................................................................... 13-11
Recordkeeping ............................................................................................................................ 13-11
NEMIS Status Reports ........................................................................................................ 13-11
Cost Overruns and Underruns ...................................................................................................... 13-12
Approval Requirements....................................................................................................... 13-12
Notification Requirements ................................................................................................... 13-12
Scope Changes ........................................................................................................................... 13-12
Job Aid 13-1: Quarterly Progress Report Checklist........................................................................ 13-13
Job Aid 13-2: Sample Quarterly Progress Report .......................................................................... 13-14
Job Aid 13-3: Standard Form 269, Financial Status Report (Long Form)......................................... 13-15
Job Aid 13-4: Standard Form 269A, Financial Status Report (Short Form) ...................................... 13-17
Job Aid 13-5: FEMA Form 20-10, Financial Status Report ............................................................. 13-19
Job Aid 13-6: NEMIS Status Reports............................................................................................ 13-23
Job Aid 13-7: FEMA Form 20-19, Report of Unobligated Balance of Federal
Funds, Draw Downs, and Undrawn Funds ................................................................ 13-28
Hazard Mitigation Grant Program Desk Reference
Section 13: Administrative/Grants Management
State
Responsibilities
"
Management
Costs and
Administrative Costs
The State, as grantee, has primary responsibility for project management
and accountability of funds as indicated in 44 CFR Part 13. The State is
responsible for ensuring that subgrantees meet all program and
administrative requirements. Managing States meet the same
44 CFR Part 13
responsibilities with less oversight from FEMA.
TIP: State responsibilities for the HMGP are
explained in Job Aid 3-2.
The HMGP provides three categories of “direct administrative costs:”
"" State management;
"" Grantee administrative (sliding scale); and
"" Subgrantee administrative (sliding scale).
State
Management
Costs
States are entitled to claim management costs. State management costs are intended
to include costs of managing or administering the HMGP that are not covered by the
percentage allowance. They include other “direct grant administration costs” of the
grantee that are consistent with the State Administrative Plan and 44 CFR Part 13.
Negotiation of
Management
Costs
To be eligible for a program management grant, the State must show its costs in its
administrative plan and submit its request to the Regional Director in advance of
incurring management costs.
State management costs are negotiated between FEMA and the State and must be
approved prior to assigning or hiring staff for the HMGP.
Management costs will be awarded as part of the HMGP ceiling, established by
estimating 15 percent of other Stafford Act grants. This means that for any given
disaster, the grantee management costs combined with the cost of all approved HMGP
projects may not exceed the final lock-in ceiling.
State management costs, based on the personnel needs of the State, must be
consistent with the staffing requirements established in the State Administrative Plan.
FEMA will continue to award the grantee and subgrantee administrative costs
separately from the HMGP ceiling.
Hazard Mitigation Grant Program Desk Reference
Page 13-1
Section 13: Administrative/Grants Management
Allowable
Management
Costs
State management costs generally include regular time salaries and
approved equipment and supply purchases. State management costs
are intended to be used to cover costs for personnel salaries and
administrative management of the program for a particular Presidentially
declared disaster. In accordance with 44 CFR Section 13.22, and as
specified in OMB Circular A-87, allowable grant costs must be necessary
and reasonable for proper and efficient administration of the grant and
not be a general expense required to carry out the overall emergency
management functions and responsibilities.
44 CFR 13.22
Specific allowable costs include (but are not limited to):
"" Regular time salaries for HMGP staff;
"" Regular time salaries for contract staff to manage the HMGP; and
"" Software to run FEMA Benefit-Cost Analysis modules.
Unallowable
Management
Costs
State management costs do not cover:
"" Overtime;
"" Per diem;
"" Travel;
"" Other costs already covered by grantee administrative costs;
"" The staffing and operation of a Disaster Recovery Center; or
"" Project-specific costs such as the costs of a project manager.
Page 13-2
Hazard Mitigation Grant Program Desk Reference
Section 13: Administrative/Grants Management
Figure 13-1 shows a sample calculation of management costs. States may pay
employee benefits as part or all of their cost-share or may pay 25 percent of the entire
salary and benefits cost. Therefore, two separate, valid calculations of management
costs are shown in the lower part of Figure 13-1.
Preparing a
Request for
Management
Costs
Figure 13-1. Sample Calculation of Management Costs
Job #
Position
0000
Specialist
2.00
$90,500.00
$34,100.00
0000
Coordinator
1.00
45,250.00
17,050.00
0000
Admin Asst.
0.05
20,625.00
8,000.00
3.50
$156,375.00
$59,150.00
Total
Work Years
Salary
Federal Share (75%) of Salary ($156,375) =
State Share (25%) of Salary ($156,375) =
Benefits
$117,281.25
$39,093.75
OR
Federal Share (75%) of Salary and Benefits ($215,525) =
State Share (25%) of Salary and Benefits ($215,525) =
Grantee
Administrative
Costs
$161,643.75
$53,881.25
FEMA also provides the State an allowance for grantee administrative
costs to include overtime pay, per diem, and travel of State employees
performing grant administration tasks. The calculation of the allowance
is based on a percentage of grants to subgrantees as described in 44 44 CFR 206.439(b)
CFR 206.439(b), and detailed on page 13-4.
Hazard Mitigation Grant Program Desk Reference
Page 13-3
Section 13: Administrative/Grants Management
Calculation of
Grantee
Administrative Costs
The calculation of administrative costs is based on a sliding scale established by
regulation. These costs are automatically calculated by FEMA’s computer system, and
are obligated as projects are funded.
The sliding scale used to calculate grantee administrative costs is as follows:
"" For the first $100,000 of the Federal share, 3 percent of such costs;
"" For the next $900,000, 2 percent of such costs;
"" For the next $4,000,000, 1 percent of such costs; and
"" For those costs over $5,000,000, .5 percent of such costs.
Worksheet for Determining HMGP
Grantee Administrative Costs
Total Federal Share
$
ADD:
3% of first $100,000
$
2% of next $900,000
$
1% of next $4,000,000
$
.5% of assistance over $5,000,000
$______
Total State Administrative Costs
$
Note that grantee administrative costs are based on only the Federal share of awards
to subgrantees, including subgrantee administrative costs.
Allowable
Grantee
Administrative
Costs
Examples of valid administrative costs include:
"" Overtime;
"" Per diem; and
"" Travel.
Subgrantee
Administrative
Costs
Page 13-4
Subgrantees are reimbursed for administrative (sliding scale) costs to include
preparation of applications, quarterly reports, audits, related field inspections,
recordkeeping, and the filing of reimbursement claims to the State. The percentage is
based on a percentage of net eligible costs.
Hazard Mitigation Grant Program Desk Reference
Section 13: Administrative/Grants Management
Subgrantees
Subgrantees are reimbursed for the administrative (sliding scale) costs only. This
percentage allowance is:
"" Based upon a percentage of net eligible costs (the approved project
cost); and
"" Intended to cover “all necessary costs of requesting, obtaining, and
administering Federal assistance.”
The percentage is calculated in accordance with 44 CFR 206.439(b).
Calculation of
Subgrantee
Administrative
Costs
44 CFR 206.439(b)
Subgrantee administrative costs are based on total net eligible costs. Total net eligible
costs are the FEMA contribution (approved scope of work) plus the non-Federal
proportionate minimum required match. This is the lesser amount of either total project
costs or 4/3 the amount of the Federal share. The administrative costs are limited to
ensure HMGP is reimbursing only the administrative activities related to administering
HMGP assistance. In some cases, the HMGP participation in a project is a minor
percentage of the overall project.
If program income is involved, the administrative costs are calculated before program
income is calculated. See page 13-6 for details. For example, if the total costs of the
subgrantee’s project is $100,000, and the Federal share is $75,000, the subgrantee
administrative will be based on $100,000. But if, for some reason, the Federal share
were only $40,000 of a $100,000 project, the subgrantee administrative costs would be
based on $52,800, or 4/3 the Federal share.
Sample Calculation Based on
75 Percent Federal Share
Total Project Cost
Federal Share
$78,000
58,500
Subgrantee Administrative Costs
(Federal Share x 4/3 = $78,000)
$78,000 x sliding scale of 3%:
$2,340
Sample Calculation Based on Less
Than 75 Percent Federal Share
Total Project Cost
Federal Share
$125,000
27,000
Subgrantee Administrative Costs
(Federal Share x 4/3 = $36,000)
$36,000 x sliding scale of 3%:
Hazard Mitigation Grant Program Desk Reference
$1,080
Page 13-5
Section 13: Administrative/Grants Management
Allowable
Subgrantee
Administrative
Costs
Examples of valid administrative costs include:
"" Preparation of applications, quarterly reports, audits, and related field inspections;
"" Recordkeeping; and
"" Filing claims to the State for reimbursement.
Project-specific costs such as construction oversight, or a project manager to work with
homeowners, are not covered by administrative costs. These are included in the
project budget.
Program
Income
Program income includes income from:
"" Use or rental of real or personal property acquired with grant funds;
"" Sale of commodities or items fabricated under a grant agreement; and
"" Payments of principal and interest on loans made with grant funds.
Program income does not include:
""
""
""
""
""
""
Interest on grant funds;
Rebates;
Credits;
Discounts;
Refunds; and
The interest earned on them.
FEMA encourages States and subgrantees to generate program income
to help defray program costs. Subgrantees deduct this income from total
project costs as specified in the grants management common rule
(44 CFR Part 13). Authorization for States to follow the other
alternatives is granted by the Regional Director sparingly.
44 CFR Part 13
The following is an example that illustrates appropriate deduction of program
income for an acquisition project:
Program income is generated when the subgrantee, with prior approval from the
State and the Regional Director, sells salvaged building components from a
structure acquired with HMGP funds. Any cost incurred during the sale of the
salvaged materials is deducted prior to calculating the project cost.
If the grant period is still open (as indicated in the grant agreement and the final
financial report), any income must be subtracted from the overall cost of the project
before the cost-share is calculated. However, once the grant period is ended, any
income generated from the land itself belongs to the subgrantee.
As indicated on page 13-5, FEMA calculates subgrantee administrative costs before
deducting program income.
Cost-Share
and
Matching
Page 13-6
All funds provided under the Hazard Mitigation Grant Program will be subject to the
cost-sharing provisions established in the Stafford Act and the FEMA-State
Agreement. FEMA cannot obligate funds until the State has provided assurance that
the non-Federal share has been identified.
Hazard Mitigation Grant Program Desk Reference
Section 13: Administrative/Grants Management
FEMA Cost Share
FEMA may contribute up to 75 percent of the cost of projects approved for funding
under the HMGP for major disasters declared on or after June 10, 1993.
Non-Federal
Cost-Share
A non-Federal source must contribute the remaining percentage of the total eligible
project costs. Use of the non-Federal share and any project contributing towards the
program cost-share will meet all program requirements, include eligibility criteria and
compliance with applicable Federal environmental laws.
While the non-Federal match for the HMGP must be at least 25 percent, it is not
necessary for the non-Federal match to be 25 percent on every individual project. It is
only necessary that the cost-share ratio for the funding of all combined projects for the
disaster is at least 25 percent.
Permanent
Federal
Identity
"
In-Kind
Matches
HMGP funds do not lose their Federal identity and may not be used as match for
another Federally funded project, including U.S. Army Corps of Engineers projects.
TIP: See page 13-8 for information on some
Federal funding that may match other Federal
grants like HMGP.
While the grantee or subgrantee must meet the cost share requirement, the State or
local share does not have to be cash; it can be met with in-kind services or materials
that are allowable costs provided by the third parties.
Examples of third party in-kind contributions include:
"" A local attorney affected by the flood donates her time to review the real property
acquisition contract documents and conduct the settlements for the subgrantee.
The normal cost of the attorney’s professional time donated to the project (based
on her normal per hour or per settlement rate) is allowable as local in-kind costshare.
"" Local contractors donate their services to complete seismic retrofit work to
residents’ homes. The normal cost of their time is allowable as a third party in-kind
contribution.
"" A homeowner accepts 75 percent of the value of his home in cash and donates the
rest of the appraised value to the project. The remaining 25 percent donated value
is allowable as a third party in-kind contribution.
"" The local hardware store donates construction materials for a hurricane shuttering
project. The retail value of those materials is an allowable third party in-kind
contribution.
Hazard Mitigation Grant Program Desk Reference
Page 13-7
Section 13: Administrative/Grants Management
Other Federal
Funds
Generally, the non-Federal match may not include funds from other Federal agencies.
However, some Federal grants have an authorizing statute that explicitly allows the
funds to be used as a match for other Federal grants. Examples include:
"" Subgrantees may use Department of Housing and Urban Development
Community Development Block Grant (entitlement and small cities) monies as a
match for HMGP funds in property acquisition projects as long as the projects are
eligible under that program.
"" The U.S. Small Business Administration and Farmer’s Home Administration
consider their loan funds to lose their Federal identity once the loan to the
individual is approved. Therefore, homeowners can supply funds from either of
these sources to match HMGP funds.
"" Indian Health Services funds may be used as the local match to HMGP funds as
long as the mitigation project “contributes to the purposes for which grants . . . are
made” under the Indian Health Services statute.
"" Bureau of Indian Affairs funds may be used as a match for HMGP funds.
"" Section 302(a)(3) of the Appalachian Regional Development Act of 1965, the
authorizing statute for Appalachian Regional Commission (ARC) funds, expressly
permits the use of ARC funds to increase the Federal share—in effect, reducing
the local cost-share. Therefore, ARC funds may contribute towards the non-FEMA
cost-share of a FEMA-funded project.
Private Funds
Individuals may use their own funds (including loans received from the U.S. Small
Business Administration, the Farmer’s Home Administration, and Increased Cost of
Compliance insurance claim payments) to help a local community to match HMGP
funds.
Increased Cost of Compliance coverage benefits under the National Flood Insurance
Program (NFIP) may be used to match elevation and/or acquisition and relocate
projects. Increased Cost of Compliance Coverage provides for the payment of a claim
to help pay for the cost to comply with a community floodplain management ordinance
after a direct physical loss by flood. When a building covered by a Standard Flood
Insurance Policy sustains a flood loss and the State or community declares the
building to be substantially damaged or repetitively damaged, Increased Cost of
Compliance Coverage will help pay for the cost to elevate, floodproof (non-residential
buildings only), demolish, or relocate the building. The maximum Increased Cost of
Compliance coverage is $15,000. All NFIP Regular Program policies with building
coverage issued or renewed on or after June 1, 1997 will include the coverage.
Of course, Increased Cost of Compliance claims can only be used for NFIP -approved
costs; these can then be applied to the HMGP match. For example, it can’t pay for
property acquisition, but can pay demolition or structure relocation.
Page 13-8
Hazard Mitigation Grant Program Desk Reference
Section 13: Administrative/Grants Management
The 5%
Initiative and
Grants
Management
As explained in Section 7, up to 5 percent of the total HMGP funds for a disaster may
be set aside by a State to pay for measures that are difficult to evaluate against
traditional program cost-effectiveness and eligibility.
Hazard
Mitigation
Grant
Program
Lock-In
Ceiling
Under no circumstances may the State spend more than the amount of the combined
regular projects and 5% Initiative projects. The State may not exceed the lock-in
ceiling of the HMGP. For example, if the State has spent all but 3 percent of the grant
funds on regular projects, only 3 percent may be used for 5% Initiative projects.
Cost-Share
Ratios
The cost-share on 5% Initiative projects is the same cost-share ratio as the balance of
grant funds for that disaster. When available amounts of 5% Initiative funds from two
or more disasters are combined to fund one large project, the State must adhere to the
cost-share requirements of each disaster that generated the funds for the project. (For
example, the HMGP cost-share changed from 50 percent to 75 percent in 1993.)
Program
Funding
Estimates
Fluctuate
The amount of the HMGP estimate fluctuates during the early stages of program
implementation. The amount of the 5% Initiative funds are calculated on the current
HMGP estimate at the time 5% Initiative projects are approved.
Insular Areas
Insular areas are U.S. territories and possessions that include American Samoa,
Guam, the Virgin Islands, and the Northern Mariana Islands. All Federal agencies
have the authority to waive cost-sharing that is otherwise required by statute for the
insular areas. Grants under $200,000 are automatically not subject to cost-sharing
required in non-insular areas. The term “grant” refers to the total award for HMGP that
the insular area receives. That is, if the HMGP ceiling is over $200,000, then the costshare is not automatically waived, but FEMA may modify it or waive it at FEMA’s
discretion.
Hazard Mitigation Grant Program Desk Reference
Page 13-9
Section 13: Administrative/Grants Management
Compact of
Free
Association
Funds
Compliance
With the
Adminstrative Requirements of 44
CFR Parts 13
and 206
The Federated States of Micronesia and the Republic of the Marshall Islands are
permitted to use funds provided thorough the Compact of Free Association to match
HMGP funds. Signed in 1986 by the governments of the United States, the Federated
States of Micronesia, and the Republic of the Marshall Islands, the compact created
General Purpose Grants whose only restriction is that 40 percent of the total funds
provided over the 15-year term be used for “capital development” purposes as defined
in the compact.
44 CFR Part 13, Uniform Administrative and Requirements for Grants and Cooperative
Agreements to State and Local Governments, establishes administrative requirements
for Federal grants and subgrants. The requirements in Part 206 are based on Part 13.
Part 13 addresses various administrative procedures, including:
"" Use of a standard application format;
"" Requirement that a State plan be developed before grant money can be received;
"" Financial management such as payment methods and allowable costs;
"" Monitoring of grantee and subgrantee activities through progress reports; and
"" Recordkeeping.
44 CFR Part 206, Federal Disaster Assistance for Disasters Declared On or After
November 23, 1988, prescribes the policies and procedures to be followed in
implementing the Stafford Act, as amended. This includes the HMGP under
Subpart N.
Processing
of Requests
for Advances
of Funds and
Reimbursements
Part of the State’s responsibility as financial administrator of the HMGP is to process
requests for advances and reimbursements of funds.
The State should establish accounting procedures in order to disburse money to
subgrantees in a timely manner. The system should include a point of contact; steps
that guide the request and receipt of funds, the records to be maintained, and the
forms to be used; and a timeline.
The subgrantees’ quarterly financial reports will inform the State Hazard Mitigation
Officer of project status.
Clearly, it is beneficial for the State Hazard Mitigation Officer to be knowledgeable
about the established accounting procedures. The State may wish to add financial
management expertise to their hazard mitigation staffs, through hiring and/or training.
Page 13-10
Hazard Mitigation Grant Program Desk Reference
Section 13: Administrative/Grants Management
Quarterly
Reports
States are required to submit two types of quarterly reports to the FEMA regional
mitigation staff:
"" Quarterly Progress Reports; and
"" Quarterly Financial Status Reports.
Progress
Reports
The State will submit a quarterly progress report to FEMA that indicates the
status and projected completion date for each project funded. These
reports should include descriptions of any problems impacting the
completion dates, scope of work, or project costs that are expected to result
in noncompliance with the approved grant conditions.
A checklist to use when preparing a Quarterly Progress Report is provided
in Job Aid 13-1, and a sample Quarterly Progress Report is shown in Job
Aid 13-2.
Financial
Status
Reports
Recordkeeping
Job Aid 13-1
and 13-2
States must submit Standard Form 269, Financial Status Report (Long
Form), Standard Form 269A, Financial Status Report (Short Form), or
FEMA Form 20-10 to report the status of funds. Sample copies of
these forms, and the instructions for completing them, are included
Job Aid 13-3,
as Job Aids 13-3, 13-4, and 13-5.
13-4, and 13-5
In order to properly track the implementation of approved projects, the State and
subgrantee should keep full records of all work, expenses, contracts, etc. These
records will serve as the basis for quarterly reports for submission to FEMA and should
be retained to facilitate audit requirements.
Records must be kept for 3 years.
NEMIS Status
Reports
The National Emergency Management Information System reports listed below are
used to facilitate program tracking.
"" Quarterly Tracking Report
"" Quarterly Reports by Project
"" Field Survey Report
"" Financial Status Report
"" Project Non-Federal Share Report
"" Project Cost Line Item Report
Samples of these reports are shown in Job Aid 13-6.
Additionally, FEMA Form 20-19, Unobligated Balance of Federal Funds,
Draw Downs, and Undrawn Funds should be used to monitor the status Job Aid 13-6
of funds for all open disasters. FEMA Form 20-19 is included as Job Aid
and 13-7
13-7.
Hazard Mitigation Grant Program Desk Reference
Page 13-11
Section 13: Administrative/Grants Management
Cost
Overruns
and
Underruns
Approval
Requirements
A cost overrun is an unanticipated increase in the cost of performing the specified
objectives of the project/grant. A cost underrun is an unanticipated decrease in the
cost of performing the specified objectives or the project/grant.
If the changes are due to a change in scope, then it is not treated as a cost overrun or
underrun, rather as a programmatic change (see next section on scope changes).
Subgrantees might expend funds exceeding the approved estimates. In its
Administrative Plan, the State must include instruction and procedures for request of
additional funds, submission of documentation to support the additional costs, and
State review and approval or disapproval. Documentation may include invoices,
progress reports, etc.
States may approve cost overruns that can be met by offsetting cost underruns on
other projects, so long as the full scope of work on all affected projects can still be met.
Notification
Requirements
Scope
Changes
States must report all cost overruns and such circumstances affecting project costs to
FEMA in quarterly reports. This includes those that can be offset by underruns.
A change to the scope of an approved project is defined as any:
"" Revision of the objectives of an approved project (regardless of budget
implications).
Examples:
"" The number of houses in a retrofit or acquisition project;
"" The size of a replacement culvert; or
"" The expanded or reduced project area.
"" Change in the period of availability of funds; or
"" Change in key personnel if specified in the application.
States must obtain prior approval from FEMA before implementing scope changes.
Per the Uniform Administrative Requirements for Grants and Cooperative Agreements
to State and Local Governments:
"" For construction projects, the grantee must “obtain prior written approval for any
budget revision which would result in a need for additional funds” (44 CFR 13(c));
"" A change in the scope of work must be approved by FEMA in advance regardless
of the budget implications; and
"" The grantee must notify FEMA as soon as significant developments become
known, such as delays or adverse conditions or favorable conditions allowing for
reduced cost or time schedule.
With FEMA approval, funds from cost underruns may be applied to scope changes
even after the 24-month obligation timeline described on page 4-2.
Additionally, under non-construction projects, contracting out, subcontracting (if
authorized by law), or otherwise obtaining the services of a third party to perform
activities which are central to the purposes of the award requires prior approval.
Page 13-12
Hazard Mitigation Grant Program Desk Reference
Section 13: Administrative/Grants Management
Quarterly Progress Report Checklist
When preparing a Quarterly Progress Report for submission to FEMA, include the information
shown below for each project.
"" Identifying information:
?? Disaster number.
?? Quarterly report number.
?? Report date.
?? The State Hazard Mitigation Officer’s name and telephone number.
"" The project number and title.
"" The project status:
?? On schedule.
?? Suspended.
?? Delayed.
?? Canceled.
?? Completed.
"" The approved completion date and, if different from the approved date, the actual completion date.
"" The cost status:
?? Unchanged.
?? Overrun.
?? Underrun.
"" Amount disbursed to date.
"" Comments.
Job Aid 13-1
Hazard Mitigation Grant Program Desk Reference
Page 13-13
Page 13-14
Project
Number
1—On Schedule
2—Suspended
3—Delayed
4—Cancelled
5—Completed
Description
Status Codes:
Status
Code
Approved
Completion
Date
Cost Codes:
Actual
Completion Cost
Date
Code
1—Cost Unchanged
2—Cost Overrun
3—Cost Underrun
Point of Contact:
Date of Report:
Phone:
Quarterly Report Number:
Disaster Number:
HMGP QUARTERLY PROGRESS REPORT
Amount
Dispersed
Comments
Section 13: Administrative/Grants Management
Sample Quarterly Progress Report
The sample below illustrates the types of information that should be included in a Quarterly Progress
Report.
Job Aid 13-2
Hazard Mitigation Grant Program Desk Reference
Section 13: Administrative/Grants Management
Standard Form 269, Financial Status Report (Long Form)
This form is used to report the status of funds. Instructions for completing the form are provided on the
back of the form (and reproduced on the following page).
Job Aid 13-3
Hazard Mitigation Grant Program Desk Reference
Page 13-15
Section 13: Administrative/Grants Management
Standard Form 269, Financial Status Report (Long Form) (Continued)
Job Aid 13-3
Page 13-16
Hazard Mitigation Grant Program Desk Reference
Section 13: Administrative/Grants Management
Standard Form 269A, Financial Status Report (Short Form)
This form is used to report the status of funds. Instructions for completing the form are provided on the
back of the form (and reproduced on the following page).
Job Aid 13-4
Hazard Mitigation Grant Program Desk Reference
Page 13-17
Section 13: Administrative/Grants Management
Standard Form 269A, Financial Status Report (Short Form) (Continued)
Job Aid 13-4
Page 13-18
Hazard Mitigation Grant Program Desk Reference
PROGRAM ACRONYM
CFDA NUMBER
$
(c)
7. BASE
STATUS OF FUNDS
NO
ACCRUAL
CASH
Provisional-Final
Predetermined
$
(d)
FROM: _______ TO: _______
8. Funding/Grant Period
9. Period Covered This Report
SAMPLE FORM
Fixed with carry over Forward
$
(e)
FROM: _______ TO: _______
Hazard Mitigation Grant Program Desk Reference
FEMA FORM 20-10
TYPE OR PRINT NAME AND TITLE
SIGNATURE OF AUTHORIZED CERTIFYING OFFICIAL
TELEPHONE NO. (Include area code, and
extension)
DATE
13. CERTIFICATION: I certify to the best of my knowledge and belief that this report is correct and complete
and that all outlays and unliquidated obligations are for the purposes set forth in the award documents.
12. REMARKS: Attach any explanations deemed necessary or information required by Federal sponsoring agency in
compliance with governing legislation. Obligations are for the purposes set forth.
e. Federal share of indirect cost
d. Total amount of indirect cost
c. Base
b. Indirect cost rate
$
(b)
YES
6. FINAL REPORT
O.M.B. NO.
Expires
3. RECIPIENT ORGANIZATION (Name and complete address, including zip code)
SAMPLE FORM
Page ___ of ___ pages
COMPUTATION OF TOTAL INDIRECT COST EXPENSE AS REPORTED ON LINES 10a TO 10g.
11. a. Type of indirect cost rate (place x in the appropriate box)
i. Unobligated balance of Federal
funds (line h minus line g)
$
(a)
See reverse side for Paperwork
Burden Disclosure Notice
2. FEDERAL GRANT OR OTHER IDENTIFYING
NUMBER ASSIGNED
5. RECIPIENT ACCT. NO. OR
I.D. NO.
h. Total Federal funds authorized for this
funding period
g. Total Federal share (Sum of line o and
line f)
f . Federal share of unliquidated
obligations
e. Recipient share ofunliquidated
obligations
d. Total unliquidated obligations
c. Federal share of outlays
b. Recipient share of outlays
a. Net Outlays
10.
4. EMPLOYER I.D. NUMBER
1. FEDERAL AGENCY AND ORGANIZATIONAL
ELEMENT TO WHICH REPORT IS SUBMITTED
FEDERAL EMERGENCY MANAGEMENT AGENCY
FINANCIAL STATUS REPORT
FEMA Form 20-10, Financial Status Report
Page 13-19
Job Aid 13-5
Section 13: Administrative/Grants Management
Enter the name and address of the organization receiving the funds. This information should be the same information as shown in item 5 of FEMA Form 76-10A.
Enter the number assigned to the recipient by the Internal Revenue Service. This number should be the same as the number reported in item 6 of the applicant’s Application for Federal
Assistance, SF 424.
Enter the account number or other identifying number assigned by the recipient.
Mark the appropriate box.
Mark the appropriate box.
Enter the beginning and ending dates of the current grant period.
Enter the beginning and ending dates of the quarter being reported.
Enter the program acronym for each program being reported. Enter the CFDA number assigned to the program being reported. Enter the cumulative amounts of:
3.
4.
5.
6.
7.
8.
9.
10.
Page 13-20
Hazard Mitigation Grant Program Desk Reference
Enter the number assigned by FEMA and listed in item 1 of the Obligating Document for Award/Amendment, FEMA Form 76-10A.
2.
Job Aid 13-5
Enter the FEMA Regional Office which awarded the grant/cooperative agreement to your organization.
1.
INSTRUCTIONS
“Public reporting burden for this form is estimated to average 1 hour per response. The burden estimate includes the time for reviewing instructions, searching existing data sources,
gathering and maintaining the data needed, and completing, reviewing, and submitting the form. Send comments regarding the accuracy of the burden estimate and any suggestions for
reducing the burden to: Information Collections Management, Federal Emergency Management Agency, 500 C Street, SW, Washington, DC 20472.”
Paperwork Burden Disclosure Notice
FEMA Form 20-10, Financial Status Report (Continued)
Section 13: Administrative/Grants Management
Federal outlays that are included in line 10a.
Unliquidated obligations (Federal and non-Federal), including unliquidated obligations to subgrantees and contractors.
Non-Federal unliquidated obligations which are included in line 10d.
Federal share of unliquidated obligations included in line 10d.
Enter the total Federal share of outlays and unliquidated obligations.
The amount of Federal funds authorized for the grant period.
This amount should be line 10h minus line 10g.
10c.
10d.
10e.
10f.
10g.
10h.
10i.
Enter total amount of Federal share of the indirect cost.
11e.
Hazard Mitigation Grant Program Desk Reference
Refer to Outlays Module, Part I, for detailed instructions.
Page 13-21
Job Aid 13-5
Enter total amount of indirect cost charged during the report period.
11d.
Enter the name, title, telephone number of the authorized certifying official, and date report was submitted.
Enter in each column the amount of base to which the indirect cost rate was applied.
11c.
13.
Enter in each column the indirect cost rate(s) that were in effect during the reporting period. If more space is needed, attach a schedule showing the computation of indirect cost.
11b.
Self-explanatory.
Check the appropriate box.
11a.
Report in this section the computation of total indirect costs reported on lines 10a through 10g.
Non-Federal outlays that are included in line 10a.
10b.
12.
11.
Outlays for each program (Federal and non-Federal). Enter cumulative program outlays less any rebates, refunds, or other credits.
10a.
FEMA Form 20-10, Financial Status Report (Continued)
Section 13: Administrative/Grants Management
Page 13-22
Job Aid 13-6
11/10/1997
1
Region: 7
Report
Generation Date
State: MO
Page 1 of 1
03/31/1997
Report Period
End Date
Hazard Mitigation Grant Program Desk Reference
01/01/1997
Report Period
Start Date
Declaration Date: 12/01/1993
Quarterly Tracking Report
Quarterly Report
Number
Disaster Number: 1006
Date: 02/16/98
NEMIS Status Repots: Quarterly Tracking Report
Section 13: Administrative/Grants Management
State: MO
0
1-M
1
State
App ID
Hazard Mitigation Grant Program Desk Reference
Comments:
Amendment
Number
11/06/1997
Date Approved
$100,000
Grant Amount
Page 1 of 1
Completed
Status Code
01/01/1998
Completion
Date
Cost
Unchanged
Cost Code
Page 13-23
Job Aid 13-6
$88,878
Amount
Dispersed
Report Generation Date: 11/10/1997
Declaration Date: 12/01/1993
Report Period End Date: 03/31/1997
Region: 7
Quarterly Report Listing Projects
Report Period Start Date: 01/01/1997
FEMA Project
Number
Report Number: 1
Disaster Number: 1006
Date: 02/16/98
NEMIS Status Repots: Quarterly Reports by Project
Section 13: Administrative/Grants Management
Page 13-24
Job Aid 13-6
8-F
Region: 6
Subgrantee
Declaration Date: 02/20/1998
03/10/1998
Final Project
Approval Date
Page 1 of 1
Hazard Mitigation Grant Program Desk Reference
Regional Council of Government COG-8
Field Survey Report
NEMIS Status Repots: Field Survey Report
Field Survey for Wetlands Restoration Project (Ap ID 41)
Field Survey Title
State: LA
Project Title: 5% Pfisteria Brochure
FEMA
Project Nr
Disaster Number: 6251
Date: 04/01/1998
Section 13: Administrative/Grants Management
HMGP Financial Activity
$0
$75,000
$1,305,000
$41,364
$73,800
$115,164
$1,420,164
5% Initiative Projects
State Management Costs
Estimated Ceiling
Grantee Admin Costs
Subgrantee Admin Costs
Admin Cost Sub Total
TOTALS
Hazard Mitigation Grant Program Desk Reference
$1,230,000
Regular Projects
$77,250
$2,250
$0
$2,250
$75,000
$75,000
$0
$0
$75,000
B
A
$1,305,000
Total Allocated
in NEMIS
Projected
Region: 7 Declaration Date: 12/01/1993
HMGP Project Funds
Disaster Number: 1006 State: MO
Date: 02/24/1998
Page 1 of 1
$77,250
$2,250
$0
$2,250
$75,000
$75,000
$0
$0
$75,000
C
Total Obligated
in NEMIS
$1,342,914
$112,914
$73,800
$39,114
$1,230,000
$0
$0
$1,230,000
$1,230,000
D (A-C)
Available
Page 13-25
Job Aid 13-6
Grantee: State Emergency Management Agency
NEMIS Status Reports: Financial Status Report
Section 13: Administrative/Grants Management
16-R
6251
0
Amendment
Number
Page 13-26
Job Aid 13-6
Local
Source
Agency
Cash Donation
Item Name
Other Funding Type Description
Ladies Sewing Circle
Source Name
Subgrantee: COG for Beaufort, Shelly, and Roth Counties
FEMA
Project Number
Disaster
Number
Non-Fed Share Fund
1
Cash
EA
Unit of Measure
$90,500
Grand Total Cost:
Hazard Mitigation Grant Program Desk Reference
$90,500
Total Cost
00/00/0000
$90,500
Unit Cost
00/00/0000
Funds Avail
Date
Page 1 of 1
Funds
Commitment
Letter Date
State Emergency Management Agency
Grantee
Project Title: Wetlands Restoration
LA
State
Funding Type
Unity Qty
41
State
App ID
NEMIS Status Reports: Project Non-Federal Share Report
Section 13: Administrative/Grants Management
State: LA
Application ID: 41
Project Amendment Number: 0
5,000
1
labor
design
Hazard Mitigation Grant Program Desk Reference
1
Unit Qty
plants
Item Name
$12,000.00
$50.00
$100,000.00
Unit Cost
Total Project Cost Estimate
EA
HR
EA
Unit of Measure
Page 13-27
Job Aid 13-6
$362,000.00
$12,000.00
$250,000.00
$100,000.00
Cost Estimate
Do not include Administrative Cost. These are calculated when funds are obligated for approved projects.
Disaster Number: 6251
Project Cost Estimate
NEMIS Status Reports: Project Cost Line Item Report
Section 13: Administrative/Grants Management
Page 13-28
Job Aid 13-7
See reverse side for Paperwork
Burden Disclosure Notice
Description
of
Transaction
Transaction
Date
Mo/Day/Yr
FEMA FORM 20-19, JUL 95
(b)
(a)
Award
Amount
(c)
ENDING DATE
(e)
Unobligated
Balance of
Federal Funds
(e) = (c) – (d)
(d)
Total Federal Share
of Outlays and
Unliquidated
Obligations
Financial Status of Federal Funds
B. HISTORY OF TRANSACTIONS
(f)
Drawn Down
Cumulative
Amount
(g)
7. COMPLETION DATE
Funds
Available
To Be Drawn
(h) = (c) – (g)
(h)
Undrawn
O.M.B. No. 3067-0206
Hazard Mitigation Grant Program Desk Reference
Amount
6. FINANCIAL MANAGEMENT CODE
4. PROJECT/TASK NUMBER
3. GRANT/COOPERATIVE AGREEMENT DESCRIPTION
5. PERIOD BEGINNING DATE
2. GRANT/COOPERATIVE AGREEMENT NUMBER
1. STATE OF
REPORT OF UNOBLIGATED BALANCE OF FEDERAL FUNDS, DRAW DOWNS, AND UNDRAWN FUNDS
FEDERAL EMERGENCY MANAGEMENT AGENCY
RECONCILIATION OF GRANTS AND COOPERATIVE AGREEMENTS
FEMA Form 20-19, Report of Unobligated Balance of Federal Funds, Draw Downs, and Undrawn Funds
Section 13: Administrative/Grants Management
Page 13-29
Job Aid 13-7
State of: Name of grantee (example: State of XYZ Emergency Management Agency).
Grant/Cooperative Agreement Number: Number assigned by the Regional Office to identify a grant/cooperative agreement. Can be found on FEMA Form 76-10A,
Obligating Document for Award/Amendment.
Grant/Cooperative Agreement Description: Acronym of grant/cooperative agreement being funded (example: SLA, DPIG).
Project/Task Number: Number assigned by implementing organization to identify project/task.
Period Beginning Date: Date grant/cooperative agreement is to begin. Ending Date: Date grant/cooperative agreement is to end.
Financial Management Code: 16-digit code used in accounting system to identify and track funds (example 95-3-6200-4120-2-9XXX). The last three digits identifies the
office and division. Detailed instructions on the use of financial management codes can be found in FEMA Manual 2300.10, Financial Management and Multi-Year Planning
Codes. This manual is updated annually.
Completion Date: 90 days after project ends. If the Ending Date changes, the Completion Date automatically changes so that it is 90 days after Ending Date.
History of Transactions:
(a) Transaction Date: Date Transaction is being made.
(b) Description of Transaction: Identifies the type of transaction being made (example: award, 1st quarter report); or the voucher assigned to the transaction
(example: vo. 95-1, vo. 95-2).
(c) Award Amount: Dollar amount of initial award or amendment.
(d) Total Federal Share of Outlays and Unliquidated Obligations: Can be found on line 10g of FEMA Form 20-10, or line 11q of FEMA Form 20-17.
(e) Unobligated Balance of Federal Funds (e) = (c) - (d): Self explanatory, compute formula shown.
(f)
Drawn Down Amount: Dollar amount of draw down.
(g) Cumulative Draw Down Amount: Total dollar amount of draw downs made after each transaction.
(h) Funds Available To Be Drawn (h) = (c) - (g): Self explanatory, compute formula shown.
Hazard Mitigation Grant Program Desk Reference
7.
8.
3.
4.
5.
6.
1.
2.
REPORT OF UNOBLIGATED BALANCE OF FEDERAL FUNDS, DRAW DOWNS, AND UNDRAWN FUNDS
INSTRUCTIONS
“Public reporting for this form is estimated to average 5 minutes per response. The burden estimate includes the time for reviewing instructions, searching existing data
resources, gathering and maintaining the data needed, and completing, reviewing, and submitting the form. Send comments regarding the accuracy of the burden estimate
and any suggestions for reducing the burden to: Information Collections Management, Federal Emergency Management Agency, 500 C Street, SW, Washington, DC
20472.”
BURDEN DISCLOSURE NOTICE
FEMA Form 20-19, Report of Unobligated Balance of Federal Funds, Draw Downs, and Undrawn Funds
(Continued)
Section 13: Administrative/Grants Management
Section 13: Administrative/Grants Management
FEMA Form 20-19, Report of Unobligated Balance of Federal Funds, Draw
Downs, and Undrawn Funds (Continued)
PREPARATION INSTRUCTIONS FOR
REPORT OF UNOBLIGATED BALANCE OF
FEDERAL FUNDS, DRAW DOWNS, AND UNDRAWN FUNDS
FEMA FORM 20-19
A.
GENERAL INFORMATION: FEMA Form 20-19, Report of Unobligated Balance of
Federal Funds, Draw Downs, and Undrawn Funds, should be used to reconcile awards,
outlays, and draw downs during and at completion of a grant or cooperative agreement.
FEMA Form 20-19 -- Things To Remember During Award Cycle.
The Cumulative Amount of Draw Downs (column g) should not exceed the total Award
Amount (column c).
The amount reported for Total Federal Share of Outlays and Unliquidated Obligations
(column d) should not exceed the Total Award Amount (column c).
FEMA Form 20-19 -- Things To Remember At Closeout.
Before a grant or cooperative agreement can be closed out, the totals of columns (c),
(d), and (g) must be equal.
If the award is greater than the final reported outlays, there needs to be a deobligation
of Federal funds.
If the award is less than outlays, the recipient will be required to explain excessive
outlays.
If draws are greater than final outlays, a refund of cash advanced is needed.
If draws are less than final outlays, an additional draw down is necessary.
B.
DETAILED INSTRUCTIONS FOR FEMA FORM 20-19:
1. State Of. Name of grantee (example: State of XYZ Emergency Management Agency).
2. Grant/Cooperative Agreement Number. Number assigned by the Regional Office to
identify a grant/cooperative agreement. This number can be found on FEMA Form 7610A, Obligating Document for Award/Amendment.
Job Aid 13-7
Page 13-30
Hazard Mitigation Grant Program Desk Reference
Section 13: Administrative/Grants Management
FEMA Form 20-19, Report of Unobligated Balance of Federal Funds, Draw
Downs, and Undrawn Funds (Continued)
3. Grant/Cooperative Agreement Description. Acronym of grant/cooperative agreement
being funded (example: SLA, DPIG).
4. Project/Task Number: Number assigned by implementing organization to identify
project/task.
5. Period Beginning Date: Date grant/cooperative agreement is to begin.
Ending Date: Date grant/cooperative agreement is to end.
6. Financial Management Code. This is a 16-digit code used in the accounting system to
identify and track funds (example: 95-3-6200-4120-2-9XXX). The last three digits
identifies the office and division. Detailed instructions on the use of financial
management codes can be found in FEMA Manual 2300.13, Financial Management
and Multi- Year Planning Codes. This manual is updated annually.
7. Completion Date. 90 days after project ends. If the Ending Date changes, the
Completion Date automatically changes so that it is 90 days after Ending Date.
8. History of Transactions.
(a)
Transaction Date. Date transaction is being made.
(b)
Description of Transaction. Identifies the type of transaction being made
(example: award, 1st quarter report); or the voucher number assigned to the
transaction (example: Voucher 95-1, Voucher 95-2, etc.)
(c)
Award Amount. Dollar amount of initial award or amendment.
(d)
Total Federal Share of Outlays and Unliquidated Obligations. This amount is
shown on line 10g of FEMA Form 20-10 or line 11q of FEMA Form 20-17.
(e)
Unobligated Balance of Federal Funds (e) = (c) - (d). Self explanatory, compute
formula shown. Also, this amount is shown on line 10i of FEMA Form 20-10.
(f)
Draw Down Amount. Dollar amount of draw down.
(g)
Cumulative Draw Down Amount. Total dollar amount of draw downs made after
each transaction.
(h)
Funds Available To Be Drawn (h) = (c) - (g). Self explanatory, compute formula
shown.
Job Aid 13-7
Hazard Mitigation Grant Program Desk Reference
Page 13-31
Section 14: Closeouts
and Audits
Section 14: Closeouts and Audits
Contents
Closeout ....................................................................................................................................... 14-1
Agreement to Closeout.......................................................................................................... 14-1
Reconcilement/Adjustment of Project Costs ........................................................................... 14-1
Submission of Final Project Report ........................................................................................ 14-1
Site Visit............................................................................................................................... 14-2
Appeal of Ruling ................................................................................................................... 14-2
Closure of Tracking Systems................................................................................................. 14-2
Using NEMIS for Project Closeout ......................................................................................... 14-2
Program Closeout .......................................................................................................................... 14-2
Closeout of Management Costs............................................................................................. 14-2
Closeout of Mission Assignments/Contracts ........................................................................... 14-3
Agreement on Amount/Closeout Date .................................................................................... 14-3
Closeout in Program/Financial Systems ................................................................................. 14-3
Closeout Steps for State Grantee ................................................................................................... 14-3
Use NEMIS for Program Closeout .......................................................................................... 14-3
Closeout Steps for FEMA Regional Level ........................................................................................ 14-3
Audits ........................................................................................................................................... 14-4
Exceptions to Annual Audits .................................................................................................. 14-4
Audit Trail Required .............................................................................................................. 14-4
Job Aid 14-1: SF 270, Final Request for Payment ........................................................................... 14-5
Job Aid 14-2: FEMA Form 20-18, Report of Government Property ................................................... 14-7
Job Aid 14-3: Program Closeout: State Grantees ......................................................................... 14-11
Job Aid 14-4: Program Closeout: FEMA ...................................................................................... 14-12
Job Aid 14-5: Checklist for Project Closeout Report ...................................................................... 14-14
Hazard Mitigation Grant Program Desk Reference
Section 14: Closeouts and Audits
Closeout
44 CFR 13.50 requires FEMA to close out the Hazard Mitigation Grant Program
awards when all applicable administrative and required work has been completed.
Each individual project and the entire Hazard Mitigation Grant Program need to be
closed out.
The State should notify the FEMA region when a project is ready to be closed.
Otherwise, upon apparent completion, FEMA may suggest project closure to the State.
There are five basic steps in the closure of a project:
1.
Agreement to close the project.
2.
Reconcilement/adjustment of project costs.
3.
Submission of the final project report.
4.
Site visit.
5.
Project closeout in program and financial systems.
These steps are explained in greater detail in the following paragraphs.
Agreement to
Closeout
If the State and FEMA concur that the project is ready to be closed, the closeout
proceeds. The State, however, may not agree. The State may request an extension,
appeal denied projects, or request approval of cost overruns that necessitate eligibility
reviews.
Reconcilement/Adjust ment of
Project Costs
The subgrantee, the State, and FEMA must coordinate to make sure that funds
advanced through the program balance with funds expended by the State and
subgrantee.
If the amount expended does not match the grant amount, the State and FEMA will
take steps to reconcile and adjust final project expenditures and grantee and
subgrantee administrative costs.
Submission of
Final Project
Report
The State should submit a final project report that addresses any financial adjustments
that FEMA and the State identifies as needed.
States should include these elements in the final project report:
"" Final Financial and Progress report (if applicable).
"" Standard Form 270, Final Request for Payment, if applicable
(included as Job Aid 14.1).
"" FEMA Form 20-18, Report of Government Property (included as
Job Aid 14.2).
"" Final inspection reports.
"" Photographs, etc., to validate expenditures.
Hazard Mitigation Grant Program Desk Reference
Job Aid 14-1
and 14-2
Page 14-1
Section 14: Closeouts and Audits
Site Visit
The State should conduct a site visit for all projects to ensure the approved scope of
work was completed.
Appeal of
Ruling
The subgrantee has 60 days to appeal if it does not agree with the State and FEMA’s
findings.
Closure of
Tracking
Systems
FEMA and the State will coordinate their financial systems to record the amount and
date of the final payment. Financial files will be closed and excess funds will be
deobligated.
Using NEMIS
for Project
Closeout
The State may use the Project Closeout module on the National Emergency
Management Information System to review individual mitigation for work completion
and financial balance. The module also is used to close a project.
The task of reviewing project identifiers is performed on the Project Closeout screen.
See the NEMIS Software User Manual for detailed guidance.
Program
Closeout
Closeout of
Management
Costs
Once all projects under a single Hazard Mitigation Grant Program are closed, the
entire program is ready for closeout. Four steps comprise the program closeout:
1.
Closeout of management costs;
2.
Closeout of mission assignments and technical assistance contracts;
3.
Agreement on amount and closeout date; and
4.
Closeout of the HMGP in program and financial systems.
The FEMA/State Management Cost agreement governs the process of reconciling and
closing management costs. That agreement established the amount of management
costs and the approved staffing pattern.
Actual management costs must be reconciled with FEMA obligations and approved
staffing patterns must be confirmed.
To close out management costs, the State must:
"" Review management costs items;
"" Report the cost management figures recorded from Smartlink drawdowns;
"" Document approved staffing patterns; and
"" Review property disposition records.
FEMA and the State will make adjustments for cost overruns and underruns, and
concur on closing management costs.
Page 14-2
Hazard Mitigation Grant Program Desk Reference
Section 14: Closeouts and Audits
Closeout of
Mission
Assignments/
Contracts
All mission assignments and technical assistance contracts must be closed before the
program can be closed. Generally, HMGP projects generate few mission assignments.
Technical assistance contracts most frequently are for environmental reviews that are
conducted early in the program.
Agreement on
Amount/
Closeout Date
FEMA and the State will agree on the Final Claim Amount and on the
Concurrence Date. The State will generate a concurrence letter and sign
Standard Form 269, 269A, or FEMA Form 20-10.
Standard Forms 269 and 269A are included as Job Aids 13-3 and 13-4.
FEMA Form 20-10 is included as Job Aid 13-5.
Closeout in
Program/
Financial
Systems
Closeout
Steps for
State
Grantee
Use NEMIS for
Program
Closeout
Job Aid 13-3,
13-4, and
13-5
The State will record the HMGP closeout in its program and financial records. The
FEMA and State Hazard Mitigation Officers are responsible for coordinating and
ensuring that both Federal and State records are available in the event of an audit.
The State grantee has specific responsibilities at each stage of the HMGP
closeout process. The steps required to close out the HMGP at the State
level are shown in Job Aid 14-3, together with the applicable timeframes
for closeout.
Job Aid 14-3
The MT Disaster Closeout process on the National Emergency Management
Information System enables the consolidation of the individual mitigation project
closeout actions and verifies that all projects that comprise the mitigation activity for
this disaster are complete and that the disaster may be closed.
The task of reviewing the status of individual projects is performed on the Disaster
Closeout screen. See the NEMIS Software User Manual for detailed guidance.
Closeout
Steps for
FEMA
Regional
Level
To comply with 44 CFR 513.50, FEMA regional staff complete the steps
outlined in Job Aid 14-4.
Job Aid 14-5 contains a checklist that will assist in the preparation of the
Project Closeout Report.
Hazard Mitigation Grant Program Desk Reference
Job Aid 14-4
and 14-5
Page 14-3
Section 14: Closeouts and Audits
Audits
State and local governments that receive grant funds from FEMA must comply with the
audit requirements under the Single Audit Act of 1984, P.L. 98-502.
The Single Audit Act, implemented by OMB Circular A-133, “Audit of State and Local
Governments,” requires that:
"" State or local governments that receive $300,000 or more a year in Federal
financial assistance shall have an audit in accordance with the circular; and
"" State or local governments that receive less than $300,000 a year shall be exempt
from audit requirements for that year.
Audits will be conducted annually by an independent auditor and will examine either
the entire operations of the government or those departments or agencies that
received, expended, or administered Federal funds. The subgrantee should maintain
complete records of all work, including receipts, checks, job orders, contracts,
equipment usage, payroll information, and any other necessary documentation that
would be required for an audit.
If there is evidence of noncompliance, the State should ensure that appropriate
corrective action is taken within 6 months. The State will provide a copy to the FEMA
Inspector General.
Exceptions to
Annual Audits
Under two circumstances audits will be conducted biennially covering both years.
Those circumstances are:
"" Those States or localities that have, by January 1, 1987, enacted constitutional or
statutory requirement for less frequent audits; and
"" Requests from governments that have administrative policy calling for audits less
frequent than annual, but only for fiscal years beginning before January 1, 1987.
Additionally, FEMA may conduct audits of States and subgrantees of HMGP funds.
Audit Trail
Required
The State, as grantee, is responsible for informing the subapplicant of the need for an
audit trail. The grant recipient is obligated to break out costs. Either the State or the
subgrantee should retain all backup documentation such as:
"" Invoices;
"" Canceled checks;
"" Acquisition/real property project records (deed, title, easements, etc.); and
"" Engineering certificates.
This detailed backup information will not be submitted in quarterly reports to FEMA but
must be stored and made available for State or FEMA auditors to review.
Page 14-4
Hazard Mitigation Grant Program Desk Reference
Section 14: Closeouts and Audits
SF 270, Final Request for Payment
Job Aid 14-1
Hazard Mitigation Grant Program Desk Reference
Page 14-5
Section 14: Closeouts and Audits
SF 270, Final Request for Payment (Continued)
Job Aid 14-1
Page 14-6
Hazard Mitigation Grant Program Desk Reference
Section 14: Closeouts and Audits
FEMA Form 20-18, Report of Government Property
Job Aid 14-2
Hazard Mitigation Grant Program Desk Reference
Page 14-7
Section 14: Closeouts and Audits
FEMA Form 20-18, Report of Government Property (Continued)
PREPARATION INSTRUCTIONS FOR
REPORT OF GOVERNMENT PROPERTY
FEMA FORM 20-18
AUTHORITY FOR THESE INSTRUCTIONS: 44 CFR 13, Uniform Administrative Requirements for
Grants and Cooperative Agreements to State and Local Governments, Subpart C – Post -Award
Requirements, Section 13.23 and 13.33.
A.
GENERAL INFORMATION: In all FEMA grants or cooperative agreements, the recipient will
be held accountable for equipment and supplies. FEMA Form 20-18 is designed to meet the
management requirements as set forth in 44 CFR 13.32 and 13.33. The recipient must submit one
copy of FEMA Form 20-18 to the cognizant FEMA regional office as part of the required FEMA
closeout procedures for a grant or cooperative agreement. Separate forms are required for
equipment (acquired under a grant and Federally owned) and supplies.
Equipment purchased under a grant or cooperative agreement means an article of tangible,
nonexpendable, personal property having a useful life of more than one year and an acquisition cost
of $5,000.00 or more per unit.
FEMA reserves the right to transfer title of grant acquired equipment to the Federal Government or a
third party named by FEMA when such third party is otherwise eligible under existing statutes. To
exercise this right, FEMA must identify the equipment acquired in the grant or cooperative
agreement.
In the event a grantee or subgrantee is provided federally owned equipment:
(1)
Title to Federally owned equipment remains vested in the Federal Government.
(2)
Grantees or subgrantees will manage the equipment in accordance with Federal agency
rules and procedures and submit a FEMA Form 20-18 annually.
Supplies includes all tangible, personal property other than equipment as defined in paragraph A.
Job Aid 14-2
Page 14-8
Hazard Mitigation Grant Program Desk Reference
Section 14: Closeouts and Audits
FEMA Form 20-18, Report of Government Property (Continued)
Upon completion of a grant or cooperative agreement, the recipient is required to submit listings of
equipment and supplies to FEMA and request disposition instructions for the following:
(1)
All equipment purchased under the grant or cooperative agreement having a useful life of more than
one year and an acquisition cost of $5,000 or more per unit.
(2)
All Federally owned equipment used during the grant or cooperative agreement.
(3)
Unused supplies where residual inventory exceeds $5,000 in total aggregate fair market value.
FEMA will approve or disapprove the disposition request within 120 days after receipt.
B.
DETAILED INSTRUCTIONS:
Item 1
Date of Report. Enter the date of the report.
Item 2
FEMA IDENTIFICATION NUMBER. Enter the Grant or Cooperative Agreement Number
being reported. This number is found in Item 1 of the Obligating Document for
Award/Amendment (FEMA Form 76-10A).
Item 3
NAME AND TITLE OF RECIPIENT. Print or type the recipient’s name and title.
Item 4
NAME AND TITLE OF AUTHORIZED REPRESENTATIVE. Print or type the authorized
representative’s name and title.
Item 5
SIGNATURE. Authorized representative’s signature.
Item 6a
GOVERNMENT ID NO. AND FSN. Enter the recipient’s identification number and
Federal stock number (FSN), if applicable.
Item 6b
DESCRIPTION OF ITEM. List a brief description of item.
Item 6c
MFR. Enter the manufacturer’s name.
Item 6d
MFR SERIAL NO. Enter the manufacturer’s serial number.
Item 6e
QUANTITY. List the quantity.
Item 6f
CONDITION. Describe the condition of item being reported.
Item 6g
LOCATION. List the location of item being reported.
Item 6h
COST. Enter the cost of item being reported.
Item 6i
DATE RECEIVED. Enter the date of purchase or date item was received by the
recipient.
Job Aid 14-2
Hazard Mitigation Grant Program Desk Reference
Page 14-9
Section 14: Closeouts and Audits
FEMA Form 20-18, Report of Government Property (Continued)
Item 6j
RECIPIENT’S DISPOSITION REQUEST. Enter the recipient’s suggested disposition for
each item being reported.
Item 6k-1 APPROVAL. FEMA indicates approval or disapproval of the disposition request (FEMA
will return the FEMA Form 20-18 to the recipient).
Item 6m FOR USE BY FEMA ONLY.
Job Aid 14-2
Page 14-10
Hazard Mitigation Grant Program Desk Reference
Section 14: Closeouts and Audits
Program Closeout: State Grantees
The steps required to close out the HMGP at the State level are shown below, together with the
applicable timeframes for closeout.
STEP
ACTION
TIMEFRAME
1
Reconcile cash with award and outlays.
Prior to closeout
2
Notify subgrantees when projects are ready for closeout.
As required
3
Complete final project inspections, audits, etc., required
to make final project determinations.
As required
4
Make final payments (or recoupments) on all projects.
As required
5
Address all appeals filed by subgrantees.
As required
6
Work with FEMA Regional staff to reconcile grant funds.
30 days before
submitting closeout
package.
7
Prepare and submit (via certified mail) the closeout
package, including:
Letter from GAR or POC to RD requesting program
closeout and deobligation of unused funds.
90 days after all
program work is
completed.
Final Status Report (SF 269).
Final Request For Payment (SF 270) (if applicable).
Report of Government Property (if applicable) (FEMA
Form 20-18).
Report of Unobligated Balance of Federal Funds, Draw
Downs, and Undrawn Funds (FEMA Form 20-19).
8
Receive and process cost adjustments or return
unobligated cash advanced to FEMA (via Smartlink).
Within 90 days after
FEMA receives the
final closeout
package.
9
File a copy of the closeout package for 3 years from the
date it was mailed to FEMA.
N/A
Job Aid 14-3
Hazard Mitigation Grant Program Desk Reference
Page 14-11
Section 14: Closeouts and Audits
Program Closeout: FEMA
44 CFR 13.50 requires FEMA to close out the HMGP when all applicable administrative and required
work has been completed. The steps required to close out the HMGP at the FEMA regional level are
shown below.
STEP
1
ACTION
DATA SOURCE(S)
Close out individual projects:
Review NEMIS reports and State status reports to identify
projects that can be closed out.
Reconcile NEMIS and State budget figures. (Work with the
SHMO or POC as necessary.)
Monitor dates of final payments to subgrantees.
Copies of bills and summary
documentation from the State
SF 272, Federal Cash
Transaction Report (Smartlink)
NEMIS Quarterly Report
Tracking and NEMIS Quarterly
Reports by Project
After 60-day appeal period, write a letter to the State
recommending closeout of completed projects.
Close projects in NEMIS and print reports to include in the
disaster closeout file.
2
Review program documentation for the disaster:
Program closeout package
Receive and file State appeal notifications and project
closeout packages.
Final Status Report (from the
final closeout package)
Verify receipt of the final quarterly report.
Copies of bills and summary
documentation from the State
Verify that all final inspections have been completed and
that appeals have been resolved.
3
NEMIS Appeal Report
Ensure that all HM mission assignments are closed.
NEMIS Closeout Report
Coordinate with the State to close the program:
SF 272, Federal Cash
Transaction Report (Smartlink)
Monitor administrative cost data submitted by the State.
Examine Smartlink balances to determine the status of
drawdowns.
Notify the State (as necessary) to ensure that final
drawdowns are completed.
FEMA Form 20-19, Report of
Unobligated Balance of Federal
Funds, Draw Downs, and
Undrawn Funds
Prepare a letter from the RD to the GAR or POC with
instructions for preparing the closeout package.
4
Close the program in NEMIS.
N/A
5
Request OS to deobligate remaining obligations and
reduce the program allocation amount to zero.
N/A
Copies of the NEMIS report that you will use during closeout are shown on the following pages.
Job Aid 14-4
Page 14-12
Hazard Mitigation Grant Program Desk Reference
Hazard Mitigation Grant Program Desk Reference
178478907890
Help Ronda
34879
PrimaryMobile
Dwelling
Type
Code
78780978
7907890
PrimaryMultifam
No
Yes
Basement
1
State
App ID
Flood
Zone
Code
AO
A
State Emergency Management Agency
Grantee
7899
3456
First
Floor
Elev
Acquisition
Acquisition
Property
Action
No
Yes
BCA
Yiuyyu
USAA
Insurance
Policy
Provider
Project Title: Acquisition of One Million Homes
OR
State
Property Site Inventory
Damage Address: 3456 Main Street Apartment 4B Fairfax VA 22030
Picabo
Street
Damage Address: 555 5 Street Fairfax VA 22030
th
Owner Tax Id
Owner
Flood Ins
Policy Nr
0
1-R
1004
Subgrantee: Test this
Amendment
Number
FEMA
Project Number
Disaster
Number
Date: 02/24/1998
$39,999.00
$45,000.00
Pre-Event
FMV
50-99%
100%
Damage
Category
"
"
SHPO
Cleared
Page 1 of 1
Section 14: Closeouts and Audits
Program Closeout: FEMA (Continued)
Property Inventory Report
Job Aid 14-4
Page 14-13
Section 14: Closeouts and Audits
Checklist for Project Closeout Report
The Project Closeout Report requires the identification of the disaster number, project number, grantee,
and project type. The checklist below reflects the actual NEMIS screens for the Project Closeout Report.
" " Date State Mitigation Plan approved
" " Date Administrative Plan approved
" " SF 424 submitted
Project Application
" " Date project received
" " Date project approved
" " Statement of Work approved
" " Last Statement of Work amendment
" " Initial Federal public notice
" " Benefit-cost analysis approved
" " Ratio
" " NEPA
" " Signed CATEX, FONSI, or Final Environmental Assessment
" " Final notice published for FONSI or EA
" " News release
Job Aid 14-5
Page 14-14
Hazard Mitigation Grant Program Desk Reference
Section 14: Closeouts and Audits
Checklist for Project Closeout Report (Continued)
Project Application (Continued)
Environmental Impact Statement Requirements
" " Federal Register Notice of Intent to Prepare an EIS 44 CFR
" " Initiation of the Scoring Process
" " Environmental Impact Statement Monitoring Program (Mitigation measures to be implemented and
monitored as a condition of the Environmental Impact Statement)
" " Draft Environmental Impact Statement available
" " Final Environmental Impact Statement available
" " Signed Environmental Impact Statement
" " News release
" " EIS Final Federal public notice
" " Notified that project was complete
""
Project completion verified and/or field inspection of construction project
""
Final project performance report received
?? Milestones met
?? Final quarterly reports received
(
)Y
(
)N
" " Initial closeout letter to grantee from FEMA requesting closeout of project
" " State letter to FEMA requesting project closeout (all closeout documents attached)
Job Aid 14-5
Hazard Mitigation Grant Program Desk Reference
Page 14-15
Section 14: Closeouts and Audits
Checklist for Project Closeout Report (Continued)
Post-Award Budget Changes Requiring Approval
" " Amended budget non-construction projects (approval date)
" " Cumulative transfers among direct cost categories > 10% or > $100
" " Transfer of training funds
" " Increased budget for construction projects (approval date)
" " Construction/non-construction funding transfers (approval date)
" " Extending time period for availability of funds (approval date)
" " Non-construction contracting out, third-party services or subcontracting (approval date)
" " Changes in personnel (approval date)
Acquisition/Relocation Project Closeout*
" " Copy of notification that eminent domain would not be used to acquire property
" " DOB verification for all properties
""
Privacy Act release
" " Hazardous materials checklist
" " Statement of Assurances
" " Restrictive covenants on all property deeds -copies in file, signed and dated
" " Demolition or removal of all structures (completion date)
" " Relocation assistance determination letters in file
*To be maintained at the State and local levels, but not at FEMA.
Job Aid 14-5
Page 14-16
Hazard Mitigation Grant Program Desk Reference
Section 14: Closeouts and Audits
Checklist for Project Closeout Report (Continued)
Acquisition/Relocation Project Closeout* (Continued)
" " Floodplain Management and Protection of Wetland E.O. 11988 and E.O. 11990 decisionmaking
process completed and in file
" " Engineering certificates*
" " Property inventory form completed by project monitor
" " Property inventory form sent to FEMA Headquarters
" " Final project closeout letter from FEMA to State signed
Administrative Cost Review for State Management Costs
" " Verify staffing level and that time and attendance records exist
" " Payroll/wages
" " Supplies
""
Supply budget
""
Disposition of supplies with aggregate value > $5,000, FEMA Form 20-18
" " Equipment
""
Inventory of equipment
""
Equipment budget
""
Lease agreements
""
Disposition of equipment
""
Did lease end on or before the ending date of award?
*To be maintained at the State and local levels, but not at FEMA.
Job Aid 14-5
Hazard Mitigation Grant Program Desk Reference
Page 14-17
Section 14: Closeouts and Audits
Checklist for Project Closeout Report (Continued)
Administrative Cost Review for State Management Costs (Continued)
" " Federally owned property
""
Inventory
""
Disposition report
""
FEMA Form 20-18 in file
" " Were copyrights or patents awarded for any action as a result of this grant?
Fiscal Requirements
" " Approved project estimate
""
Federal share (percentage and dollar amount)
""
Non-Federal share (percentage and dollar amount)
" " Date of last budget amendment
" " Total project costs
""
Net eligible
""
Net eligible Federal share (percentage)
""
Allocated project funds
""
Obligated project funds
""
Subgrantee admin. obligation
""
Grantee admin. obligation
""
Total project obligations
""
State management project allocations
""
State management obligations
""
Income generated by project
Job Aid 14-5
Page 14-18
Hazard Mitigation Grant Program Desk Reference
Section 14: Closeouts and Audits
Checklist for Project Closeout Report (Continued)
Fiscal Requirements (Continued)
" " Total Federal share (percentage)
" " Total non-Federal share (percentage)
""
Final Request for Payment
""
Cost adjustment
" " Cost overrun
" " Cost underrun
""
Cash adjustment
""
Unobligated Federal funds
" " Deobligated Federal funds
""
Reconciliation
Final Financial Reports Approved
" " IFMIS
" " NEMIS
" " Smartlink
" " Final project closeout letter from FEMA to State signed
Job Aid 14-5
Hazard Mitigation Grant Program Desk Reference
Page 14-19
Section 15: Acronyms
Section 15: Acronyms
Contents
Acronyms...................................................................................................................................... 15-1
Hazard Mitigation Grant Program Desk Reference
Section 15: Acronyms
BCR
CATEX
Benefit-Cost Ratio
Categorical Exclusion
CFR
Code of Federal Regulations
CRS
Community Rating System
EA
Environmental Assessment
EIS
Environmental Impact Statement
EMI
Emergency Management Institute
E.O.
Executive Order
FBFM
Flood Boundary Floodway Maps
FEMA
Federal Emergency Management Agency
FHBM
Flood Hazard Boundary Map
FIRM
Flood Insurance Rate Map
FIS
FMA
FONSI
GAR
Flood Insurance Study
Flood Mitigation Assistance Program
Finding of No Significant Impact
Governor’s Authorized Representative
HMGP
Hazard Mitigation Grant Program
HMST
Hazard Mitigation Survey Team
Hazard Mitigation Grant Program Desk Reference
Page 15-1
Section 15: Acronyms
ICC
IHMT
Interagency Hazard Mitigation Team
NEPA
National Environmental Policy Act
NEMIS
National Emergency Management Information
System
NFIP
National Flood Insurance Program
NHPA
National Historic Preservation Act
NRCS
National Resource Conservation Service
OSHA
Occupational Safety and Health Administration
PNP
RD
Private nonprofit
FEMA Regional Director
SFHA
Special Flood Hazard Area
SHMO
State Hazard Mitigation Officer
URA
Page 15-2
Increased Cost of Compliance coverage
Uniform Relocation Act
Hazard Mitigation Grant Program Desk Reference
Section 16: Definitions
Section 16: Definitions
Contents
Definitions ..................................................................................................................................... 16-1
Hazard Mitigation Grant Program Desk Reference
Section 16: Definitions
Administrative Costs, authorized under the Stafford Act, are costs for preparation of applications,
progress reports, audits, etc. These costs are reimbursable based on a percentage of financial
assistance received.
Applicant means a State agency, local government, Native American tribe, public entity, or eligible private
nonprofit organization submitting an application to the grantee for assistance under the Hazard Mitigation
Grant Program.
Application means the request for Hazard Mitigation Grant Program funding.
Benefit-cost analysis means a quantitative procedure that assesses the desirability of a hazard mitigation
measure by taking a long-term view of avoided future damages as compared to the cost of a project. The
outcome of the analysis is a benefit-cost ratio, which demonstrates whether the net present value of
benefits exceeds the net present value of costs.
44 CFR Part 9, Floodplain Management and Protection of Wetlands are regulations to implement and
enforce Executive Order 11988, Floodplain Management, and Executive Order 11990, Protection of
Wetlands.
44 CFR Part 10, Environmental Considerations are regulations for compliance with the National
Environmental Policy Act.
44 CFR Part 13, Uniform Administrative Requirements for Grants and Cooperative Agreements to States
and Local Governments establishes administrative requirements for Federal grants and subgrants.
44 CFR Part 14, Administration of Grants: Audits of State and Local Governments are requirements for
non-Federal audits of recipients of financial assistance from FEMA.
44 CFR 206, Federal Disaster Assistance for Disasters Declared On or After November 23, 1988, are
regulations for implementing the Stafford Act.
Comprehensive Building Code means an adopted law or ordinance whose purpose is to provide minimum
standards to safeguard life or limb, health, property, and public welfare by regulating and controlling the
design, construction, quality of materials, use and occupancy, locations, and maintenance of all buildings
and structures within a jurisdiction. The Uniform Building Code, National Building Code, Standard
Building Code, Council of American Building Officials One and Two Family Dwelling Code, and the
International Building Code are all considered to meet this criteria.
Cost-effectiveness is determined by a systematic quantitative method for comparing the costs of
alternative means of achieving the same stream of benefits or a given objective. The benefits in the
context of hazard mitigation are avoided future damages and losses. Cost-effectiveness is generally
determined by performing a benefit-cost analysis.
Environmental Assessment is the document that is prepared when a project does not qualify as a
categorical exclusion and serves to determine whether an Environmental Impact Statement is needed.
Environmental Impact Statement is the document that is prepared for all actions significantly affecting the
environment.
Hazard Mitigation Grant Program Desk Reference
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Section 16: Definitions
Environmental Justice means that Federal agencies are required to protect the environment by
conducting reviews that include evaluation of the human environment (e.g., historic/archeological
resource, land use, demographics, religion, politics, justice, economics, housing, infrastructure, social
services, recreation, and aesthetics), the physical environment (e.g., geology, soils, climate, and
hydrology), and the biological environment (e.g., plants, microbes, fish, and wildlife).
Environmental Officer is a FEMA-appointed staff who serves as a regional resource to State personnel
and ensures that environmental justice is served.
Executive Orders 11988 and 11990 are the requirements to avoid direct or indirect support of floodplain
development and to minimize harm to floodplains and wetlands. Federal decisionmakers are obligated to
comply with these orders, accomplished through an eight-step decision-making process.
Executive Order 12699 requires that new construction of Federal buildings comply with appropriate
seismic design and construction standards.
FEMA-State Agreement states the understandings, commitments, and conditions for assistance under
which FEMA disaster assistance shall be provided. This agreement imposes binding obligations on
FEMA, States, and their local governments in the form of conditions for assistance which are legally
enforceable.
Finding of No Significant Impact is a determination that an action will have no significant impact on the
environment.
Flood Mitigation Assistance program (FMA) is a Federal grant program through which FEMA provides
financial assistance to States and communities for flood mitigation planning and activities that reduce the
risk of flood damage to structures insurable under the National Flood Insurance Program (NFIP).
Governor’s Authorized Representative is the individual, designated by the Governor, who serves as the
grant administrator for all funds provided under the Hazard Mitigation Grant Program.
Grant means an award of financial assistance. The total grant award shall not exceed 15 percent of the
total estimated Federal assistance (excluding any associated administrative costs) provided under
Sections 403, 406, 407, 408, 410, 411, 416, and 701 of the Stafford Act.
Grantee means the government to which a grant is awarded and which is accountable for the use of the
funds provided. The grantee is the entire legal entity even if only a particular component of the entity is
designated in the grant award document. For purposes of this program, except as noted in 44 CFR
206.436(g)(1), the State is the grantee.
Hazard Mitigation Grant Program, as authorized under Section 404 of the Stafford Act, provides funding for
hazard mitigation measures that are cost effective and complement existing post-disaster mitigation
programs and activities by providing funding for beneficial mitigation measures that are not funded through
other programs.
Hazard Mitigation Plan is the documentation of a State or local government’s evaluation of natural hazards
and the strategy to mitigate such hazards. States and local governments are required by Section 409 of
the Stafford Act to undergo the mitigation planning process as a condition of receiving Federal disaster
assistance.
Hazard Mitigation Survey Team means the FEMA/State/local survey team that is activated following
disasters to identify immediate mitigation opportunities and issues to be addressed in the State Hazard
Mitigation Plan. The Hazard Mitigation Survey Team may include representatives of other Federal
agencies, as appropriate.
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Hazard Mitigation Grant Program Desk Reference
Section 16: Definitions
Hazard Mitigation Survey Team Report means the report developed by the Hazard Mitigation Survey
Team. It is similar in format to the Interagency Hazard Mitigation Team Report. The report identifies
mitigation measures for implementation and recommends issues to be addressed in the state Hazard
Mitigation Plan, including those measure recommended for funding under the HMGP.
Increased Cost of Compliance (ICC) coverage benefits under the National Flood Insurance Program may
be used for elevation and/or acquisition location costs. The coverage is included under all regular NFIP
policies issued or renewed after June 1, 1997.
Individual Assistance means the supplementary Federal assistance provided under the Stafford Act to
individuals and families adversely affected by a major disaster or emergency.
Interagency Hazard Mitigation Team is the mitigation team that is activated following flood-related
disasters pursuant to the Office of Management and Budget directive on Nonstructural Flood Protection
measures and Flood Disaster Recovery, and the subsequent December 15, 1980, Interagency Agreement
for Nonstructural Damage Reduction.
Interagency Hazard Mitigation Team Report means the report that is developed following any
Presidentially declared flood disaster by an interagency, intergovernmental, and interdisciplinary team.
The report identifies post-flood mitigation opportunities and common post-flood recovery policies. Ideally,
the report should be completed within 15 days following the disaster.
Management Costs are intended to include costs of managing or administering the HMGP that are not
covered by the percentage allowance and generally include regular time salaries and approved equipment
purchases.
Measure means any mitigation measure, project, or action proposed to reduce risk of future damage,
hardship, loss, or suffering from disasters. The term “measure” is used interchangeably with the term
“project” in this program.
National Environmental Policy Act requires that actions affecting the environment comply with specific
policies and procedures.
National Flood Insurance Program provides the availability of flood insurance in exchange for the adoption
of a minimum local floodplain management ordinance that regulates new and substantially improved
development in identified flood hazard areas.
Non-Federal funds means financial resources provided by sources other than the Federal Government.
The term does not included funds provided to a State or local government through a Federal grant unless
the authorizing statute for that grant explicitly allows the funds to be used as a match for other Federal
grants.
Project means any mitigation measure, project, or action proposed to reduce risk of future damage,
hardship, loss, or suffering from disasters. The term “project” is used interchangeably with the term
“measure” in this program.
Project worksheet is a report of damages caused by a major disaster or emergency including location,
description, and estimate of required work that may be eligible for FEMA’s Public Assistance program.
Public Assistance is Federal financial assistance provided to State and local governments or to eligible
private non-profit organizations for work that must be done, through repairs or replacement, to restore an
eligible facility on the basis of its pre-disaster design and in conformity with current applicable codes,
specification, and standards.
Hazard Mitigation Grant Program Desk Reference
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Section 16: Definitions
Section 404 of the Stafford Act authorizes the Hazard Mitigation Grant Program, which provides funding for
cost-effective hazard mitigation measures.
Section 406 of the Stafford Act authorizes Public Assistance grants to repair, restore, or replac e damaged
facilities belonging to public and private nonprofit entities, and other associated expenses.
Section 409 of the Stafford Act authorizes repair of facilities to applicable codes and standards. It also
requires State and local governments to prepare and implement Hazard Mitigation Plans. In these plans,
State and local governments evaluate the natural hazards in the designated disaster area and identify
appropriate actions to mitigate such hazards. This hazard mitigation planning is both required under
Section 409 and a prerequisite for eligibility for Section 404 funds.
Standard Form 424 is the Application for Federal Assistance to be included as part of the State’s overall
Hazard Mitigation Application.
State Administrative Plan for the Hazard Mitigation Grant Program means the plan developed by the State
to describe the procedures for administration of the Hazard Mitigation Grant Program.
State Hazard Mitigation Officer is the representative of a State government who serves on the Hazard
Mitigation Survey Team and Interagency Hazard Mitigation Team, and who is the primary point of contact
with FEMA, other Federal agencies, and local units of government in the planning and implementation of
post-disaster mitigation activities.
State Hazard Mitigation Team is composed of key State agency representatives, local units of government,
and other public or private sector bodies or agencies. The purpose of the State Hazard Mitigation Team is
to evaluate hazards, identify strategies, coordinate resources, and implement measures that will reduce
the vulnerability of people and property to damage from hazards.
State management costs are the reimbursable salaries of State personnel and necessary equipment
responsible for managing the Hazard Mitigation Grant Program.
Subgrant means an award of financial assistance under a grant by a grantee to an eligible subgrantee.
Subgrantee means the Government or other legal entity to which a subgrant is awarded and which is
accountable to the grantee for the use of the funds provided. Subgrantees can be a State agency, local
government, private nonprofit organization, or Native American tribe as outlined in 44 CFR 206.434.
Subpart M, Hazard Mitigation Planning is the section of 44 CFR 206 that prescribes the actions and
procedures for implementing Section 409 of the Stafford Act.
Subpart N, Hazard Mitigation Grant Program, is the section of 44 CFR 206 that governs the award of
hazard mitigation grants made under provisions of Section 404 of the Stafford Act.
Substantial Damage is defined as disaster-induced damages that total at least 50 percent of the pre-event
fair market value of the property.
406 Mitigation or Public Assistance assists in the funding for repair of damaged facilities and
infrastructures with eligible applicants. Under this program, all repairs must be made to applicable codes
and standards, and damaged facilities can be improved for mitigation purposes if technically feasible, costeffective and environmentally sound.
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Hazard Mitigation Grant Program Desk Reference
| File Type | application/pdf |
| File Title | Embedded File.PDF |
| Author | ljohnso3 |
| File Modified | 2007-06-20 |
| File Created | 2007-06-20 |