Federal Disaster Assistance for Disasters Declared On or After November 23, 1988

§§ 206.192–206.199

44 CFR Ch. I (10–1–02 Edition)

actions, then take those recovery actions in conjunction with agency representatives for each identified case in
the random sample (or larger universe,
at the Regional Director’s discretion).
(5) Duplication when assistance under
other authorities is involved. When the
random sample shows evidence that duplication has occurred and corrective
action is required, the Regional Director and the FCO shall urge the duplicating agency to follow its own procedures to take corrective action, and
shall work with the agency toward that
end. Under his/her authority in section
312, the Regional Director shall require
the duplicating agency to report to
him/her on its attempt to correct the
duplications identified in the sample.
(f) Recovering FEMA funds: debt collection. Funds due to FEMA are recovered
in accordance with FEMA’s Debt Collection Regulations (44 CFR part 11,
subpart C).
[54 FR 11615, Mar. 21, 1989, as amended at 67
FR 61460, Sept. 30, 2002]

§§ 206.192–206.199

[Reserved]

Subpart G—Public Assistance
Project Administration
SOURCE: 55 FR 2304, Jan. 23, 1990, unless
otherwise noted.

§ 206.200

General.

(a) Purpose. This subpart establishes
procedures for the administration of
Public Assistance grants approved
under the provisions of the Stafford
Act.
(b) What policies apply to FEMA public
assistance grants? (1) The Stafford Act
requires that we deliver eligible assistance as quickly and efficiently as possible consistent with Federal laws and
regulations. We expect the Grantee and
the subgrantee to adhere to Stafford
Act requirements and to these regulations when administering our public
assistance grants.
(2) The regulations entitled ‘‘Uniform
Requirements for Grants and Cooperative Agreements to State and Local
Governments,’’ published at 44 CFR
part 13, place requirements on the
State in its role as Grantee and gives
the Grantee discretion to administer

federal programs under their own procedures. We expect the Grantee to:
(i) Inform subgrantees about the status of their applications, including notifications of our approvals of Project
Worksheets and our estimates of when
we will make payments;
(ii) Pay the full amounts due to subgrantees as soon as practicable after
we approve payment, including the
State contribution required in the
FEMA-State Agreement; and
(iii) Pay the State contribution consistent with State laws.
[55 FR 2304, Jan. 23, 1990, as amended at 63
FR 64425, Nov. 20, 1998; 64 FR 55160, Oct. 12,
1999]

§ 206.201 Definitions used in this subpart.
(a) Applicant means a State agency,
local government, or eligible private
nonprofit organization, as identified in
Subpart H of this regulation, submitting an application to the Grantee for
assistance under the State’s grant.
(b) Emergency work means that work
which must be done immediately to
save lives and to protect improved
property and public health and safety,
or to avert or lessen the threat of a
major disaster.
(c) Facility means any publicly or privately owned building, works, system,
or equipment, built or manufactured,
or an improved and maintained natural
feature. Land used for agricultural purposes is not a facility.
(d) Grant means an award of financial
assistance. The grant award shall be
based on the total eligible Federal
share of all approved projects.
(e) Grantee means the government to
which a grant is awarded 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 regulation, except as noted in
§ 206.202, the State is the grantee.
(f) Hazard mitigation means any cost
effective measure which will reduce the
potential for damage to a facility from
a disaster event.
(g) Permanent work means that restorative work that must be performed
through repairs or replacement, to restore an eligible facility on the basis of

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Federal Emergency Management Agency
its predisaster design and current applicable standards.
(h) Predisaster design means the size
or capacity of a facility as originally
designed and constructed or subsequently modified by changes or additions to the original design. It does not
mean the capacity at which the facility
was being used at the time the major
disaster occurred if different from the
most recent designed capacity.
(i) A project is a logical grouping of
work required as a result of the declared major disaster or emergency.
The scope of work and cost estimate
for a project are documented on a
Project Worksheet (FEMA Form 90–91).
(1) We must approve a scope of eligible work and an itemized cost estimate
before funding a project.
(2) A project may include eligible
work at several sites.
(j) Project approval means the process
in which the Regional Director, or designee, reviews and signs an approval of
work and costs on a Project Worksheet
or on a batch of Project Worksheets.
Such approval is also an obligation of
funds to the Grantee.
(k) Subgrant means an award of financial assistance under a grant by a
grantee to an eligible subgrantee.
(l) 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.
[55 FR 2304, Jan. 23, 1990, as amended at 63
FR 64425, Nov. 20, 1998; 64 FR 55160, Oct. 12,
1999]

§ 206.202

Application procedures.

(a) General. This section describes the
policies and procedures that we use to
process public assistance grants to
States. Under this section the State is
the Grantee. As Grantee you are responsible for processing subgrants to
applicants under 44 CFR parts 13, 14,
and 206, and your own policies and procedures.
(b) Grantee. You are the grant administrator for all funds provided under
the Public Assistance grant program.
Your responsibilities under this section
include:
(1) Providing technical advice and assistance to eligible subgrantees;

§ 206.202

(2) Providing State support for
project identification activities to include small and large project formulation and the validation of small
projects;
(3) Ensuring that all potential applicants are aware of available public assistance; and
(4) Submitting documents necessary
for the award of grants.
(c) Request for Public Assistance (Request). The Grantee must send a completed Request (FEMA Form 90–49) to
the Regional Director for each applicant who requests public assistance.
You must send Requests to the Regional
Director within 30 days after designation of the area where the damage occurred.
(d) Project Worksheets. (1) An applicant’s authorized local representative
is responsible for representing the applicant and for ensuring that the applicant has identified all eligible work
and submitted all costs for disaster-related damages for funding.
(i) We or the applicant, assisted by
the State as appropriate, will prepare a
Project Worksheet (FEMA Form 90–91)
for each project. The Project Worksheet must identify the eligible scope
of work and must include a quantitative estimate for the eligible work.
(ii) The applicant will have 60 days
following its first substantive meeting
with us to identify and to report damage to us.
(2) When the estimated cost of work
on a project is less than $1,000, that
work is not eligible and we will not approve a Project Worksheet for the
project. Periodically we will review
this minimum approval amount for a
Project Worksheet and, if needed, will
adjust the amount by regulation.
(e) Grant approval. (1) Before we obligate any funds to the State, the Grantee must complete and send to the Regional Director a Standard Form (SF)
424, Application for Federal Assistance,
and a SF 424D, Assurances for Construction Programs. After we receive
the SF 424 and SF 424D, the Regional
Director will obligate funds to the
Grantee based on the approved Project
Worksheets. The Grantee will then approve subgrants based on the Project
Worksheets approved for each applicant.

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§ 206.203

44 CFR Ch. I (10–1–02 Edition)

(2) When the applicant submits the
Project Worksheets, we will have 45
days to obligate Federal funds. If we
have a delay beyond 45 days we will explain the delay to the Grantee.
(f) Exceptions. The following are exceptions to the procedures and time
limitations outlined in paragraphs (c),
(d), and (e) of this section.
(1) Grant applications. An Indian tribe
or authorized tribal organization may
submit a SF 424 directly to the RD
when the Act authorizes assistance and
a State is legally unable to assume the
responsibilities that these regulations
prescribe.
(2) Time limitations. The RD may extend the time limitations shown in
paragraphs (c) and (d) of this section
when the Grantees justifies and makes
a request in writing. The justification
must
be
based
on
extenuating
circustances beyond the grantee’s or
subgrantee’s control.
[64 FR 55160, Oct. 12, 1999]

§ 206.203 Federal grant assistance.
(a) General. This section describes the
types and extent of Federal funding
available under State disaster assistance grants, as well as limitations and
special procedures applicable to each.
(b) Cost sharing. All projects approved
under State disaster assistance grants
will be subject to the cost sharing provisions established in the FEMA-State
Agreement and the Stafford Act.
(c) Project funding—(1) Large projects.
When the approved estimate of eligible
costs for an individual project is $35,000
or greater, Federal funding shall equal
the Federal share of the actual eligible
costs documented by a grantee. Such
$35,000 amount shall be adjusted annually to reflect changes in the Consumer
Price Index for All Urban Consumers
published by the Department of Labor.
(2) Small projects. When the approved
estimate of costs for an individual
project is less than $35,000, Federal
funding shall equal the Federal share
of the approved estimate of eligible
costs. Such $35,000 amount shall be adjusted annually as indicated in paragraph (c)(1) of this section.
(d) Funding options—(1) Improved
projects. If a subgrantee desires to
make improvements, but still restore
the predisaster function of a damaged

facility, the Grantee’s approval must
be obtained. Federal funding for such
improved projects shall be limited to
the Federal share of the approved estimate of eligible costs.
(2) Alternate projects. In any case
where a subgrantee determines that
the public welfare would not be best
served by restoring a damaged public
facility or the function of that facility,
the Grantee may request that the RD
approve an alternate project.
(i) The alternate project option may
be taken only on permanent restorative work.
(ii) Federal funding for such alternate projects will be 75 percent of the
Federal share of the approved Federal
estimate of eligible costs.
(iii) If soil instability at the alternate project site makes the repair, restoration or replacement of a State or
local government-owned or -controlled
facility infeasible, the Federal funding
for such an alternate project will be 90
percent of the Federal share of the approved Federal estimate of eligible
costs.
(iv) Funds contributed for alternate
projects may be used to repair or expand other selected public facilities, to
construct new facilities, or to fund hazard mitigation measures. These funds
may not be used to pay the nonFederal
share of any project, nor for any operating expense.
(v) Prior to the start of construction
of any alternate project the Grantee
shall submit for approval by the RD
the following: a description of the proposed alternate project(s); a schedule
of work; and the projected cost of the
project(s). The Grantee shall also provide the necessary assurances to document compliance with special requirements, including, but not limited to
floodplain management, environmental
assessment, hazard mitigation, protection of wetlands, and insurance.
[55 FR 2304, Jan. 23, 1990, as amended at 66
FR 22444, May 4, 2001]

§ 206.204 Project performance.
(a) General. This section describes the
policies and procedures applicable during the performance of eligible work.
(b) Advances of funds. Advances of
funds will be made in accordance with
44 CFR 13.21, Payment.

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Federal Emergency Management Agency
(c) Time limitations for completion of
work—(1) Deadlines. The project completion deadlines shown below are set
from the date that a major disaster or
emergency is declared and apply to all
projects approved under State disaster
assistance grants.
COMPLETION DEADLINES
Type of work

Months

Debris clearance ......................................................
Emergency work ......................................................
Permanent work .......................................................

6
6
18

(2) Exceptions. (i) The Grantee may
impose lesser deadlines for the completion of work under paragraph (c)(1) of
this section if considered appropriate.
(ii) Based on extenuating circumstances or unusual project requirements beyond the control of the subgrantee, the Grantee may extend the
deadlines under paragraph (c)(1) of this
section for an additional 6 months for
debris clearance and emergency work
and an additional 30 months, on a
project by project basis for permanent
work.
(d) Requests for time extensions. Requests for time extensions beyond the
Grantee’s authority shall be submitted
by the Grantee to the RD and shall include the following:
(1) The dates and provisions of all
previous time extensions on the
project; and
(2) A detailed justification for the
delay and a projected completion date.
The RD shall review the request and
make a determination. The Grantee
shall be notified of the RD’s determination in writing. If the RD approves the
request, the letter shall reflect the approved completion date and any other
requirements the RD may determine
necessary to ensure that the new completion date is met. If the RD denies
the time extension request, the grantee
may, upon completion of the project,
be reimbursed for eligible project costs
incurred only up to the latest approved
completion date. If the project is not
completed, no Federal funding will be
provided for that project.
(e) Cost Overruns. (1) During the execution of approved work a subgrantee
may find that the actual project costs

§ 206.205

exceed the approved Project Worksheet
estimates. Such cost overruns normally fall into the following three categories:
(i) Variations in unit prices;
(ii) Change in the scope of eligible
work; or
(iii) Delays in timely starts or completion of eligible work.
(2) The subgrantee must evaluate
each cost overrun and, when justified,
submit a request for additional funding
through the Grantee to the RD for a
final determination. All requests for
the RD’s approval will contain sufficient documentation to support the eligibility of all claimed work and costs.
The Grantee must include a written
recommendation when forwarding the
request. The RD will notify the Grantee in writing of the final determination. FEMA will not normally review
an overrun for an individual small
project. The normal procedure for
small projects will be that when a subgrantee discovers a significant overrun
related to the total final cost for all
small projects, the subgrantee may
submit an appeal for additional funding
in accordance with § 206.206, within 60
days following the completion of all its
small projects.
(f) Progress reports. Progress reports
will be submitted by the Grantee to the
RD quarterly. The RD and Grantee
shall negotiate the date for submission
of the first report. Such reports will describe the status of those projects on
which a final payment of the Federal
share has not been made to the grantee
and outline any problems or circumstances expected to result in noncompliance with the approved grant
conditions.
[55 FR 2304, Jan. 23, 1990; 55 FR 5458, Feb. 15,
1990, as amended at 64 FR 55161, Oct. 12, 1999]

§ 206.205

Payment of claims.

(a) Small Projects. Final payment of
the Federal share of these projects will
be made to the Grantee upon approval
of the Project Worksheet. The Grantee
will make payment of the Federal
share to the subgrantee as soon as
practicable after Federal approval of

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§ 206.206

44 CFR Ch. I (10–1–02 Edition)

funding. Before the closeout of the disaster contract, the Grantee must certify that all such projects were completed in accordance with FEMA approvals and that the State contribution to the non-Federal share, as specified in the FEMA-State Agreement,
has been paid to each subgrantee. Such
certification is not required to specify
the amount spent by a subgrantee on
small projects. The Federal payment
for small projects shall not be reduced
if all of the approved funds are not
spent to complete a project. However,
failure to complete a project may require that the Federal payment be refunded.
(b) Large projects. (1) The Grantee
shall make an accounting to the RD of
eligible costs for each approved large
project. In submitting the accounting
the Grantee shall certify that reported
costs were incurred in the performance
of eligible work, that the approved
work was completed, that the project
is in compliance with the provisions of
the FEMA-State Agreement, and that
payments for that project have been
made in accordance with 44 CFR 13.21,
Payments. Each large project shall be
submitted as soon as practicable after
the subgrantee has completed the approved work and requested payment.
(2) The RD shall review the accounting to determine the eligible amount of
reimbursement for each large project
and approve eligible costs. If a discrepancy between reported costs and approved funding exists, the RD may conduct field reviews to gather additional
information. If discrepancies in the
claim cannot be resolved through a
field review, a Federal audit may be
conducted. If the RD determines that
eligible costs exceed the initial approval, he/she will obligate additional
funds as necessary.
[55 FR 2304, Jan. 23, 1990, as amended at 64
FR 55161, Oct. 12, 1999]

§ 206.206 Appeals.
An eligible applicant, subgrantee, or
grantee may appeal any determination
previously made related to an application for or the provision of Federal assistance according to the procedures
below.
(a) Format and Content. The applicant
or subgrantee will make the appeal in

writing through the grantee to the Regional Director. The grantee shall review and evaluate all subgrantee appeals before submission to the Regional
Director. The grantee may make grantee-related appeals to the Regional Director. The appeal shall contain documented justification supporting the appellant’s position, specifying the monetary figure in dispute and the provisions in Federal law, regulation, or policy with which the appellant believes
the initial action was inconsistent.
(b) Levels of Appeal. (1) The Regional
Director will consider first appeals for
public
assistance-related
decisions
under subparts A through L of this
part.
(2) The Associate Director/Executive
Associate Director for Response and
Recovery will consider appeals of the
Regional Director’s decision on any
first appeal under paragraph (b)(1) of
this section.
(c) Time Limits. (1) Appellants must
file appeals within 60 days after receipt
of a notice of the action that is being
appealed.
(2) The grantee will review and forward appeals from an applicant or subgrantee, with a written recommendation, to the Regional Director within 60
days of receipt.
(3) Within 90 days following receipt of
an appeal, the Regional Director (for
first appeals) or Associate Director/Executive Associate Director (for second
appeals) will notify the grantee in writing of the disposition of the appeal or
of the need for additional information.
A request by the Regional Director or
Associate Director/Executive Associate
Director for additional information
will include a date by which the information must be provided. Within 90
days following the receipt of the requested additional information or following expiration of the period for providing the information, the Regional
Director or Associate Director/Executive Associate Director will notify the
grantee in writing of the disposition of
the appeal. If the decision is to grant
the appeal, the Regional Director will
take appropriate implementing action.
(d) Technical Advice. In appeals involving highly technical issues, the Regional Director or Associate Director/
Executive Associate Director may, at

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Federal Emergency Management Agency
his or her discretion, submit the appeal
to an independent scientific or technical person or group having expertise
in the subject matter of the appeal for
advice or recommendation. The period
for this technical review may be in addition to other allotted time periods.
Within 90 days of receipt of the report,
the Regional Director or Associate Director/Executive Associate Director
will notify the grantee in writing of
the disposition of the appeal.
(e) Transition. (1) This rule is effective for all appeals pending on and appeals from decisions issued on or after
May 8, 1998, except as provided in paragraph (e)(2) of this section.
(2) Appeals pending from a decision
of an Associate Director/Executive Associate Director before May 8, 1998 may
be appealed to the Director in accordance with 44 CFR 206.440 as it existed
before May 8, 1998 (44 CFR, revised as of
October 1, 1997).
(3) The decision of the FEMA official
at the next higher appeal level shall be
the final administrative decision of
FEMA.
[63 FR 17110, Apr. 8, 1998; 63 FR 24970, May 6,
1998]

§ 206.207 Administrative and audit requirements.
(a) General. Uniform administrative
requirements which are set forth in 44
CFR part 13 apply to all disaster assistance grants and subgrants.
(b) State administrative plan. (1) The
State shall develop a plan for the administration of the Public Assistance
program that includes at a minimum,
the items listed below:
(i) The designation of the State agency or agencies which will have the responsibility for program administration.
(ii) The identification of staffing
functions in the Public Assistance program, the sources of staff to fill these
functions, and the management and
oversight responsibilities of each.
(iii) Procedures for:
(A) Notifying potential applicants of
the availability of the program;
(B) Conducting briefings for potential
applicants and application procedures,
program eligibility guidance and program deadlines;

§ 206.207

(C) Assisting FEMA in determining
applicant eligibility;
(D) Participating with FEMA in conducting damage surveys to serve as a
basis for obligations of funds to subgrantees;
(E) Participating with FEMA in the
establishment of hazard mitigation and
insurance requirements;
(F) Processing appeal requests, requests for time extensions and requests
for approval of overruns, and for processing appeals of grantee decisions;
(G) Compliance with the administrative requirements of 44 CFR parts 13
and 206;
(H) Compliance with the audit requirements of 44 CFR part 14;
(I) Processing requests for advances
of funds and reimbursement; and
(J) Determining staffing and budgeting requirements necessary for proper program management.
(2) The Grantee may request the RD
to provide technical assistance in the
preparation of such administrative
plan.
(3) In accordance with the Interim
Rule published March 21, 1989, the
Grantee was to have submitted an administrative plan to the RD for approval by September 18, 1989. An approved plan must be on file with FEMA
before grants will be approved in a future major disaster. Thereafter, the
Grantee shall submit a revised plan to
the RD annually. In each disaster for
which Public Assistance is included,
the RD shall request the Grantee to
prepare any amendments required to
meet current policy guidance.
(4) The Grantee shall ensure that the
approved administrative plan is incorporated into the State emergency plan.
(c) Audit—(1) Nonfederal audit. For
grantees or subgrantees, requirements
for nonfederal audit are contained in
FEMA regulations at 44 CFR part 14 or
OMB Circular A–110 as appropriate.
(2) Federal audit. In accordance with
44 CFR part 14, appendix A, para. 10,
FEMA may elect to conduct a Federal
audit of the disaster assistance grant
or any of the subgrants.
[55 FR 2304, Jan. 23, 1990; 55 FR 5458, Feb. 15,
1990]

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§ 206.208

44 CFR Ch. I (10–1–02 Edition)

§ 206.208 Direct Federal assistance.
(a) General. When the State and local
government lack the capability to perform or to contract for eligible emergency work and/or debris removal,
under sections 402(4), 403 or 407 of the
Act, the Grantee may request that the
work be accomplished by a Federal
agency. Such assistance is subject to
the cost sharing provisions outlined in
§ 206.203(b) of this subpart. Direct Federal assistance is also subject to the
eligibility criteria contained in Subpart H of these regulations. FEMA will
reimburse other Federal agencies in accordance with Subpart A of these regulations.
(b) Requests for assistance. All requests for direct Federal assistance
shall be submitted by the Grantee to
the RD and shall include:
(1) A written agreement that the
State will:
(i) Provide without cost to the
United States all lands, easements and
rights-of-ways necessary to accomplish
the approved work;
(ii) Hold and save the United States
free from damages due to the requested
work, and shall indemnify the Federal
Government against any claims arising
from such work;
(iii) Provide reimbursement to FEMA
for the nonFederal share of the cost of
such work in accordance with the provisions of the FEMA-State Agreement;
and
(iv) Assist the performing Federal
agency in all support and local jurisdictional matters.
(2) A statement as to the reasons the
State and the local government cannot
perform or contract for performance of
the requested work.
(3) A written agreement from an eligible applicant that such applicant will
be responsible for the items in subparagraph (b)(1) (i) and (ii) of this section,
in the event that a State is legally unable to provide the written agreement.
(c) Implementation. (1) If the RD approves the request, a mission assignment will be issued to the appropriate
Federal agency. The mission assignment letter to the agency will define
the scope of eligible work, the estimated cost of the eligible work and the

billing period frequency. The Federal
agency must not exceed the approved
funding limit without the authorization of the RD.
(2) If all or any part of the requested
work falls within the statutory authority of another Federal agency, the RD
shall not approve that portion of the
work. In such case, the unapproved
portion of the request will be referred
to the appropriate agency for action.
(d) Time limitation. The time limitation for completion of work by a Federal agency under a mission assignment is 60 days after the President’s
declaration. Based on extenuating circumstances or unusual project requirements, the RD may extend this time
limitation.
(e) Project management. (1) The performing Federal agency shall ensure
that the work is completed in accordance with the RD’s approved scope of
work, costs and time limitations. The
performing Federal agency shall also
keep the RD and Grantee advised of
work progress and other project developments. It is the responsibility of the
performing Federal agency to ensure
compliance with applicable Federal,
State and local legal requirements. A
final inspection report will be completed upon termination of all direct
Federal assistance work. Final inspection reports shall be signed by a representative of the performing Federal
agency and the State. Once the final eligible cost is determined (including
Federal agency overhead), the State
will be billed for the nonFederal share
of the mission assignment in accordance with the cost sharing provisions
of the FEMA-State Agreement.
(2) Pursuant to the agreements provided in the request for assistance the
Grantee shall assist the performing
Federal agency in all State and local
jurisdictional matters. These matters
include securing local building permits
and rights of entry, control of traffic
and pedestrians, and compliance with
local building ordinances.
[55 FR 2304, Jan. 23, 1990, as amended at 64
FR 55161, Oct. 12, 1999]

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