44 CFR Part 206

§ 204.64

44 CFR Ch. I (10–1–11 Edition)

(b) We will reimburse indirect costs
for the administration of a fire management assistance grant in compliance with the Grantee’s approved indirect cost rate under OMB Circular A–
87.
§ 204.64 Reporting and audit requirements
(a) Reporting. Within 90-days of the
Performance Period expiration date,
the State will submit a final Financial
Status Report (FEMA Form 20–10),
which reports all costs incurred within
the incident period and all administrative costs incurred within the performance period; and
(b) Audit. (1) Audits will be performed, for both the Grantee and the
subgrantees, under 44 CFR 13.26.
(2) FEMA may elect to conduct a program-specific Federal audit on the Fire
Management Assistance Grant or a
subgrant.

PART 205 [RESERVED]
PART 206—FEDERAL DISASTER
ASSISTANCE
Subpart A—General
Sec.
206.1 Purpose.
206.2 Definitions.
206.3 Policy.
206.4 State emergency plans.
206.5 Assistance by other Federal agencies.
206.6 Donation or loan of Federal equipment
and supplies.
206.7 Implementation of assistance from
other Federal agencies.
206.8 Reimbursement of other Federal agencies.
206.9 Nonliability.
206.10 Use of local firms and individuals.
206.11 Nondiscrimination in disaster assistance.
206.12 Use and coordination of relief organizations.
206.13 Standards and reviews.
206.14 Criminal and civil penalties.
206.15 Recovery of assistance.
206.16 Audit and investigations.
206.17 Effective date.
206.18–206.30 [Reserved]

Subpart B—The Declaration Process
206.31
206.32
206.33

206.34 Request for utilization of Department
of Defense (DOD) resources.
206.35 Requests for emergency declarations.
206.36 Requests for major disaster declarations.
206.37 Processing requests for declarations
of a major disaster or emergency.
206.38 Presidential determination.
206.39 Notification.
206.40 Designation of affected areas and eligible assistance.
206.41 Appointment of disaster officials.
206.42 Responsibilities of coordinating officers.
206.43 Emergency support teams.
206.44 FEMA-State Agreements.
206.45 Loans of non-Federal share.
206.46 Appeals.
206.47 Cost-share adjustments.
206.48 Factors considered when evaluating a
Governor’s request for major disaster
declaration.
206.49–206.60 [Reserved]

Subpart C—Emergency Assistance
206.61 Purpose.
206.62 Available assistance.
206.63 Provision of assistance.
206.64 Coordination of assistance.
206.65 Cost sharing.
206.66 Limitation on expenditures.
206.67 Requirement when limitation is exceeded.
206.68–206.100 [Reserved]

Subpart D—Federal Assistance to
Individuals and Households
206.101 Temporary housing assistance for
emergencies and major disasters declared
on or before October 14, 2002.
206.102–206.109 [Reserved]
206.110 Federal assistance to individuals and
households.
206.111 Definitions.
206.112 Registration period.
206.113 Eligibility factors.
206.114 Criteria for continued assistance.
206.115 Appeals.
206.116 Recovery of funds.
206.117 Housing assistance.
206.118 Disposal of housing units.
206.119 Financial assistance to address
other needs.
206.120 State administration of other needs
assistance.
206.121–206.130 [Reserved]

Subpart E—Individual and Family Grant
Programs
206.131 Individual and Family Grant Program for major disasters declared on or
before October 14, 2002.
206.132–206.140 [Reserved]

Purpose.
Definitions.
Preliminary damage assessment.

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Federal Emergency Management Agency, DHS
Subpart F—Other Individual Assistance
206.141 Disaster unemployment assistance.
206.142–206.150 [Reserved]
206.151 Food commodities.
206.152–206.160 [Reserved]
206.161 Relocation assistance.
206.162–206.163 [Reserved]
206.164 Disaster legal services.
206.165–206.170 [Reserved]
206.171 Crisis counseling assistance and
training.
206.172–206.180 [Reserved]
206.181 Use of gifts and bequests for disaster
assistance purposes.
206.182–206.190 [Reserved]
206.191 Duplication of benefits.
206.192–206.199 [Reserved]

Subpart G—Public Assistance Project
Administration
206.200 General.
206.201 Definitions used in this subpart.
206.202 Application procedures.
206.203 Federal grant assistance.
206.204 Project performance.
206.205 Payment of claims.
206.206 Appeals.
206.207 Administrative and audit requirements.
206.208 Direct Federal assistance.
206.209 Arbitration for Public Assistance determinations related to Hurricanes
Katrina and Rita (Major disaster declarations DR–1603, DR–1604, DR–1605, DR–1606,
and DR–1607).
206.210–206.219 [Reserved]

Subpart H—Public Assistance Eligibility
206.220 General.
206.221 Definitions.
206.222 Applicant eligibility.
206.223 General work eligibility.
206.224 Debris removal.
206.225 Emergency work.
206.226 Restoration of damaged facilities.
206.227 Snow assistance.
206.228 Allowable costs.
206.229–206.249 [Reserved]

206.343 Scope.
206.344 Limitations on Federal expenditures.
206.345 Exceptions.
206.346 Applicability to disaster assistance.
206.347 Requirements.
206.348 Consultation.
206.349 Consistency determinations.
206.350–206.359 [Reserved]

Subpart K—Community Disaster Loans
206.360 Purpose.
206.361 Loan program.
206.362 Responsibilities.
206.363 Eligibility criteria.
206.364 Loan application.
206.365 Loan administration.
206.366 Loan cancellation.
206.367 Loan repayment.
206.368–206.369 [Reserved]
206.370 Purpose and scope.
206.371 Loan program.
206.372 Responsibilities.
206.373 Eligibility criteria.
206.374 Loan application.
206.375 Loan administration.
206.376 Loan cancellation.
206.377 Loan repayment.
206.378–206.389 [Reserved]

Subpart L—Fire Suppression Assistance
206.390 General.
206.391 FEMA-State Agreement.
206.392 Request for assistance.
206.393 Providing assistance.
206.394 Cost eligibility.
206.395 Grant administration.
206.396–206.399 [Reserved]

S ubpart M—Minimum Standards
206.400
206.401
206.402

General.
Local standards.
Compliance.

Subpart N—Hazard Mitigation Grant
Program

Subpart I—Public Assistance Insurance
Requirements
206.250 General.
206.251 Definitions.
206.252 Insurance requirements for facilities
damaged by flood.
206.253 Insurance requirements for facilities
damaged by disasters other than flood.
206.254–206.339 [Reserved]

206.430 General.
206.431 Definitions.
206.432 Federal grant assistance.
206.433 State responsibilities.
206.434 Eligibility.
206.435 Project identification and selection
criteria.
206.436 Application procedures.
206.437 State administrative plan.
206.438 Project management.
206.439 Allowable costs.
206.440 Appeals.
AUTHORITY: Robert T. Stafford Disaster
Relief and Emergency Assistance Act, 42
U.S.C. 5121 through 5207; Reorganization
Plan No. 3 of 1978, 43 FR 41943, 3 CFR, 1978
Comp., p. 329; Homeland Security Act of 2002,

Subpart J—Coastal Barrier Resources Act
206.340
206.341
206.342

Pt. 206

Purpose of subpart.
Policy.
Definitions.

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§ 206.1

44 CFR Ch. I (10–1–11 Edition)

6 U.S.C. 101; E.O. 12127, 44 FR 19367, 3 CFR,
1979 Comp., p. 376; E.O. 12148, 44 FR 43239, 3
CFR, 1979 Comp., p. 412; and E.O. 13286, 68 FR
10619, 3 CFR, 2003 Comp., p. 166.
SOURCE: 54 FR 11615, Mar. 21, 1989, unless
otherwise noted.

Subpart A—General
SOURCE: 55 FR 2288, Jan. 23, 1990, unless
otherwise noted.

§ 206.1

Purpose.

(a) Purpose. The purpose of this subpart is to prescribe the policies and
procedures to be followed in implementing those sections of Public Law
93–288, as amended, delegated to the
Administrator,
Federal
Emergency
Management Agency (FEMA). The
rules in this subpart apply to major
disasters and emergencies declared by
the President on or after November 23,
1988, the date of enactment of the Robert T. Stafford Disaster Relief and
Emergency Assistance Act, 42 U.S.C.
5121 et seq.
(b) Prior regulations. Prior regulations
relating to major disasters and emergencies declared by the President before November 23, 1988 were published
in 44 CFR part 205 (see 44 CFR part 205
as contained in the CFR edition revised
as of October 1, 1994).
[59 FR 53363, Oct. 24, 1994]

§ 206.2

Definitions.

(a) General. The following definitions
have general applicability throughout
this part:
(1) The Stafford Act: The Robert T.
Stafford Disaster Relief and Emergency Assistance Act, Public Law 93–
288, as amended.
(2) Applicant: Individuals, families,
States and local governments, or private nonprofit organizations who apply
for assistance as a result of a declaration of a major disaster or emergency.
(3) [Reserved]
(4) Concurrent, multiple major disasters:
In considering a request for an advance, the term concurrent multiple
major disasters means major disasters
which occur within a 12-month period
immediately preceding the major disaster for which an advance of the non-

Federal share is requested pursuant to
section 319 of the Stafford Act.
(5) Contractor: Any individual, partnership, corporation, agency, or other
entity (other than an organization engaged in the business of insurance) performing work by contract for the Federal Government or a State or local
agency.
(6) Designated area: Any emergency or
major disaster-affected portion of a
State which has been determined eligible for Federal assistance.
(7) Administrator: The Administrator,
FEMA.
(8) Disaster Recovery Manager (DRM):
The person appointed to exercise the
authority of a Regional Administrator
for a particular emergency or major
disaster.
(9) Emergency: Any occasion or instance for which, in the determination
of the President, Federal assistance is
needed to supplement State and local
efforts and capabilities to save lives
and to protect property and public
health and safety, or to lessen or avert
the threat of a catastrophe in any part
of the United States.
(10) Federal agency: Any department,
independent establishment, Government corporation, or other agency of
the executive branch of the Federal
Government, including the United
States Postal Service, but shall not include the American National Red
Cross.
(11)
Federal
Coordinating
Officer
(FCO): The person appointed by the Administrator, or in his absence, the Deputy Director, to coordinate Federal assistance in an emergency or a major
disaster.
(12) Governor: The chief executive of
any State or the Acting Governor.
(13) Governor’s Authorized Representative (GAR): The person empowered by
the Governor to execute, on behalf of
the State, all necessary documents for
disaster assistance.
(14) Hazard mitigation: Any cost effective measure which will reduce the potential for damage to a facility from a
disaster event.
(15) Individual assistance: Supplementary Federal assistance provided
under the Stafford Act to individuals
and families adversely affected by a
major disaster or an emergency. Such

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Federal Emergency Management Agency, DHS
assistance may be provided directly by
the Federal Government or through
State or local governments or disaster
relief organizations. For further information, see subparts D, E, and F of
these regulations.
(16) Local government:
(i) A county, municipality, city,
town, township, local public authority,
school district, special district, intrastate district, council of governments
(regardless of whether the council of
governments is incorporated as a nonprofit corporation under State law), regional or interstate government entity,
or agency or instrumentality of a local
government;
(ii) An Indian tribe or authorized
tribal organization, or Alaska Native
village or organization; and
(iii) A rural community, unincorporated town or village, or other public
entity, for which an application for assistance is made by a State or political
subdivision of a State.
(17) Major disaster: Any natural catastrophe (including any hurricane, tornado, storm, high water, winddriven
water, tidal wave, tsunami, earthquake, volcanic eruption, landslide,
mudslide, snowstorm, or drought), or,
regardless of cause, any fire, flood, or
explosion, in any part of the United
States, which in the determination of
the President causes damage of sufficient severity and magnitude to warrant major disaster assistance under
this Act to supplement the efforts and
available resources of States, local
governments, and disaster relief organizations in alleviating the damage,
loss, hardship, or suffering caused
thereby.
(18) Mission assignment: Work order
issued to a Federal agency by the Regional Administrator, Assistant Administrator for the Disaster Operations
Directorate, or Administrator, directing completion by that agency of a
specified task and citing funding, other
managerial controls, and guidance.
(19) Private nonprofit organization:
Any nongovernmental agency or entity
that currently has:
(i) An effective ruling letter from the
U.S. Internal Revenue Service granting
tax exemption under section 501 (c), (d),
or (e) of the Internal Revenue Code of
1954; or

§ 206.2

(ii) Satisfactory evidence from the
State that the organization or entity is
a nonprofit one organized or doing
business under State law.
(20) Public Assistance: Supplementary
Federal assistance provided under the
Stafford Act to State and local governments or certain private, nonprofit organizations other than assistance for
the direct benefit of individuals and
families. For further information, see
subparts G and H of this part. Fire
Management Assistance Grants under
section 420 of the Stafford Act are also
considered Public Assistance. See subpart K of this part and part 204 of this
chapter.
(21) Regional Administrator: An administrator of a regional office of FEMA,
or his/her designated representative. As
used in these regulations, Regional Administrator also means the Disaster
Recovery Manager who has been appointed to exercise the authority of the
Regional Administrator for a particular emergency or major disaster.
(22) State: Any State of the United
States, the District of Columbia, Puerto Rico, the Virgin Islands, Guam,
American Samoa, and the Commonwealth of the Northern Mariana Islands.
(23) State Coordinating Officer (SCO):
The person appointed by the Governor
to act in cooperation with the Federal
Coordinating Officer to administer disaster recovery efforts.
(24) State emergency plan: As used in
section 401 or section 501 of the Stafford Act means that State plan which
is designated specifically for Statelevel response to emergencies or major
disasters and which sets forth actions
to be taken by the State and local governments, including those for implementing Federal disaster assistance.
(25) Temporary housing: Temporary
accommodations provided by the Federal Government to individuals or families whose homes are made unlivable
by an emergency or a major disaster.
(26) United States: The 50 States, the
District of Columbia, Puerto Rico, the
Virgin
Islands,
Guam,
American
Samoa, and the Commonwealth of the
Northern Mariana Islands.
(27) Voluntary organization: Any chartered or otherwise duly recognized tax-

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§ 206.3

44 CFR Ch. I (10–1–11 Edition)

exempt local, State, or national organization or group which has provided
or may provide needed services to the
States, local governments, or individuals in coping with an emergency or a
major disaster.
(b) Additional definitions. Definitions
which apply to individual subparts are
found in those subparts.
[54 FR 11615, Mar. 21, 1989, as amended at 63
FR 17110, Apr. 8, 1998; 66 FR 57352, 57353, Nov.
14, 2001; 69 FR 24083, May 3, 2004; 74 FR 15346,
Apr. 3, 2009]

§ 206.3

Policy.

It is the policy of FEMA to provide
an orderly and continuing means of assistance by the Federal Government to
State and local governments in carrying out their responsibilities to alleviate the suffering and damage that
result from major disasters and emergencies by:
(a) Providing Federal assistance programs for public and private losses and
needs sustained in disasters;
(b) Encouraging the development of
comprehensive disaster preparedness
and assistance plans, programs, capabilities, and organizations by the
States and local governments;
(c) Achieving greater coordination
and responsiveness of disaster preparedness and relief programs;
(d) Encouraging individuals, States,
and local governments to obtain insurance coverage and thereby reduce their
dependence on governmental assistance; and
(e) Encouraging hazard mitigation
measures, such as development of landuse and construction regulations,
floodplain management, protection of
wetlands, and environmental planning,
to reduce losses from disasters.
§ 206.4

State emergency plans.

The State shall set forth in its emergency plan all responsibilities and actions specified in the Stafford Act and
these regulations that are required of
the State and its political subdivisions
to prepare for and respond to major
disasters and emergencies and to facilitate the delivery of Federal disaster assistance. Although not mandatory,
prior to the adoption of the final plan,
the State is encouraged to circulate

the plan to local governments for review and comment.
[55 FR 2288, Jan. 23, 1990, 55 FR 5458, Feb. 15,
1990]

§ 206.5 Assistance by other Federal
agencies.
(a) In any declared major disaster,
the Administrator, Assistant Administrator for the Disaster Operations Directorate, or the Regional Administrator may direct any Federal agency
to utilize its authorities and the resources granted to it under Federal law
(including personnel, equipment, supplies, facilities, and managerial, technical, and advisory services) to support
State and local assistance efforts.
(b) In any declared emergency, the
Administrator,
Assistant
Administrator for the Disaster Operations Directorate, or the Regional Administrator may direct any Federal agency
to utilize its authorities and the resources granted to it under Federal law
(including personnel, equipment, supplies, facilities, and managerial, technical, and advisory services) to support
emergency efforts by State and local
governments to save lives; protect
property, public health and safety; and
lessen or avert the threat of a catastrophe.
(c) In any declared major disaster or
emergency, the Administrator, Assistant Administrator for the Disaster Operations Directorate, or the Regional
Administrator may direct any Federal
agency to provide emergency assistance necessary to save lives and to protect property, public health, and safety
by:
(1) Utilizing, lending, or donating to
State and local governments Federal
equipment, supplies, facilities, personnel, and other resources, other than
the extension of credit, for use or distribution by such governments in accordance with the purposes of this Act;
(2) Distributing medicine, food, and
other consumable supplies; or
(3) Performing work or services to
provide emergency assistance authorized in the Stafford Act.
(d) Disaster assistance by other Federal agencies is subject to the coordination of the FCO. Federal agencies
shall provide any reports or information about disaster assistance rendered

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Federal Emergency Management Agency, DHS
under the provisions of these regulations or authorities independent of the
Stafford Act, that the FCO or Regional
Administrator considers necessary and
requests from the agencies.
(e) Assistance furnished by any Federal agency under paragraphs (a), (b),
or (c) of this section is subject to the
criteria provided by the Assistant Administrator for the Disaster Operations
Directorate under these regulations.
(f) Assistance under paragraphs (a),
(b), or (c) of this section, when directed
by the Administrator, Assistant Administrator for the Disaster Operations
Directorate, or the Regional Administrator, does not apply to nor shall it affect the authority of any Federal agency to provide disaster assistance independent of the Stafford Act.
(g) In carrying out the purposes of
the Stafford Act, any Federal agency
may accept and utilize, with the consent of the State or local government,
the services, personnel, materials, and
facilities of any State or local government, agency, office, or employee.
Such utilization shall not make such
services, materials, or facilities Federal in nature nor make the State or
local government or agency an arm or
agent of the Federal Government.
(h) Any Federal agency charged with
the administration of a Federal assistance program may, if so requested by
the applicant State or local authorities, modify or waive, for a major disaster, such administrative conditions
for assistance as would otherwise prevent the giving of assistance under
such programs if the inability to meet
such conditions is a result of the major
disaster.
§ 206.6 Donation or loan of Federal
equipment and supplies.
(a) In any major disaster or emergency, the Administrator, Assistant
Administrator for the Disaster Operations Directorate, or the Regional Administrator may direct Federal agencies to donate or loan their equipment
and supplies to State and local governments for use and distribution by them
for the purposes of the Stafford Act.
(b) A donation or loan may include
equipment and supplies determined
under applicable laws and regulations
to be surplus to the needs and respon-

§ 206.8

sibilities of the Federal Government.
The State shall certify that the surplus
property is usable and necessary for
current disaster purposes in order to
receive a donation or loan. Such a donation or loan is made in accordance
with procedures prescribed by the General Services Administration.
§ 206.7 Implementation of assistance
from other Federal agencies.
All directives, known as mission assignments, to other Federal agencies
shall be in writing, or shall be confirmed in writing if made orally, and
shall identify the specific task to be
performed and the requirements or criteria to be followed. If the Federal
agency is to be reimbursed, the letter
will also contain a dollar amount
which is not to be exceeded in accomplishing the task without prior approval of the issuing official.
§ 206.8 Reimbursement of other Federal agencies.
(a) Assistance furnished under § 206.5
(a) or (b) of this subpart may be provided with or without compensation as
considered appropriate by the Administrator, Assistant Administrator for the
Disaster Assistance Directorate, or the
Regional Administrator or Regional
Director.
(b) The Administrator, Assistant Administrator for the Disaster Assistance
Directorate, or the Regional Administrator or the Regional Director may
not approve reimbursement of costs incurred while performing work pursuant
to disaster assistance authorities independent of the Stafford Act.
(c) Expenditures eligible for reimbursement. The Administrator, Assistant Administrator for the Disaster Assistance
Directorate, or the Regional Administrator or the Regional Director may
approve reimbursement of the following costs which are incurred in providing requested assistance.
(1) Overtime, travel, and per diem of
permanent Federal agency personnel.
(2) Wages, travel, and per diem of
temporary Federal agency personnel
assigned solely to performance of services directed by the Administrator, Assistant Administrator for the Disaster
Assistance Directorate, or the Regional
Administrator or the Regional Director

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§ 206.9

44 CFR Ch. I (10–1–11 Edition)

in the major disaster or emergency
area designated by the Regional Director.
(3) Travel and per diem of Federal
military personnel assigned solely to
the performance of services directed by
the Administrator, Assistant Administrator for the Disaster Assistance Directorate, or the Regional Administrator or the Regional Director in the
major disaster or emergency area designated by the Regional Director.
(4) Cost of work, services, and materials procured under contract for the
purposes of providing assistance directed by the Administrator, Assistant
Administrator for the Disaster Assistance Directorate, or the Regional Administrator or the Regional Director.
(5) Cost of materials, equipment, and
supplies (including transportation, repair, and maintenance) from regular
stocks used in providing directed assistance.
(6) All costs incurred which are paid
from trust, revolving, or other funds,
and whose reimbursement is required
by law.
(7) Other costs submitted by an agency with written justification or otherwise agreed to in writing by the Administrator, Assistant Administrator
for the Disaster Assistance Directorate, or the Regional Administrator
or the Regional Director and the agency.
(d) Procedures for reimbursement. Federal agencies performing work under a
mission assignment will submit requests for reimbursement, as follows:
(1) Federal agencies may submit requests for reimbursement of amounts
greater than $1,000 at any time. Requests for lesser amounts may be submitted only quarterly. An agency shall
submit a final accounting of expenditures after completion of the agency’s
work under each directive for assistance. The time limit and method for
submission of reimbursement requests
will be stipulated in the mission assignment letter.
(2) An agency shall document its request for reimbursement with specific
details on personnel services, travel,
and all other expenses by object class
as specified in OMB Circular A–12 and
by any other subobject class used in
the agency’s accounting system. Where

contracts constitute a significant portion of the billings, the agency shall
provide a listing of individual contracts and their associated costs.
(3) Reimbursement requests shall cite
the specific mission assignment under
which the work was performed, and the
major disaster or emergency identification number. Requests for reimbursement of costs incurred under more
than one mission assignment may not
be combined for billing purposes.
(4) Unless otherwise agreed, an agency shall direct all requests for reimbursement to the Regional Administrator of the region in which the costs
were incurred.
(5) A Federal agency requesting reimbursement shall retain all financial
records, supporting documents, statistical records, and other records pertinent to the provision of services or use
of resources by that agency. These materials shall be accessible to duly authorized representatives of FEMA and
the U.S. Comptroller General, for the
purpose of making audits, excerpts,
and transcripts, for a period of 3 years
starting from the date of submission of
the final billing.
§ 206.9

Nonliability.

The Federal Government shall not be
liable for any claim based upon the exercise or performance of, or the failure
to exercise or perform a discretionary
function or duty on the part of a Federal agency or an employee of the Federal Government in carrying out the
provisions of the Stafford Act.
§ 206.10 Use of local firms and individuals.
In the expenditure of Federal funds
for debris removal, distribution of supplies, reconstruction, and other major
disaster or emergency assistance activities which may be carried out by
contract or agreement with private organizations, firms, or individuals, preference shall be given, to the extent feasible and practicable, to those organizations, firms, and individuals residing
or doing business primarily in the area
affected by such major disaster or
emergency. This shall not be considered to restrict the use of Department
of Defense resources in the provision of

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Federal Emergency Management Agency, DHS
major disaster assistance under the
Stafford Act.
§ 206.11 Nondiscrimination in disaster
assistance.
(a) Federal financial assistance to
the States or their political subdivisions is conditioned on full compliance
with 44 CFR part 7, Nondiscrimination
in Federally-Assisted Programs.
(b) All personnel carrying out Federal major disaster or emergency assistance functions, including the distribution of supplies, the processing of
the applications, and other relief and
assistance activities, shall perform
their work in an equitable and impartial manner, without discrimination on
the grounds of race, color, religion, nationality, sex, age, or economic status.
(c) As a condition of participation in
the distribution of assistance or supplies under the Stafford Act, or of receiving assistance under the Stafford
Act, government bodies and other organizations shall provide a written assurance of their intent to comply with
regulations relating to nondiscrimination.
(d) The agency shall make available
to employees, applicants, participants,
beneficiaries, and other interested parties such information regarding the
provisions of this regulation and its applicability to the programs or activities conducted by the agency, and
make such information available to
them in such manner as the head of the
agency finds necessary to apprise such
persons of the protections against discrimination assured them by the Act
and this regulation.
§ 206.12 Use and coordination of relief
organizations.
(a) In providing relief and assistance
under the Stafford Act, the FCO or Regional Administrator may utilize, with
their consent, the personnel and facilities of the American National Red
Cross, the Salvation Army, the Mennonite Disaster Service, and other voluntary organizations in the distribution of medicine, food, supplies, or
other items, and in the restoration, rehabilitation, or reconstruction of community services and essential facilities, whenever the FCO or Regional Ad-

§ 206.14

ministrator finds that such utilization
is necessary.
(b) The Administrator is authorized
to enter into agreements with the
American Red Cross, The Salvation
Army, the Mennonite Disaster Service,
and other voluntary organizations engaged in providing relief during and
after a major disaster or emergency.
Any agreement shall include provisions
assuring that use of Federal facilities,
supplies, and services will be in compliance with § 206.11, Nondiscrimination in
Disaster Assistance, and § 206.191, Duplication of Benefits, of these regulations and such other regulations as the
Administrator may issue. The FCO
may coordinate the disaster relief activities of the voluntary organizations
which agree to operate under his/her
direction.
(c) Nothing contained in this section
shall be construed to limit or in any
way affect the responsibilities of the
American National Red Cross as stated
in Public Law 58–4.
§ 206.13 Standards and reviews.
(a) The Administrator shall establish
program standards and assess the efficiency and effectiveness of programs
administered under the Stafford Act by
conducting annual reviews of the activities of Federal agencies and State
and local governments involved in
major disaster or emergency response
efforts.
(b) In carrying out this provision, the
Administrator may direct Federal
agencies to submit reports relating to
their disaster assistance activities. The
Administrator may request similar reports from the States relating to these
activities on the part of State and local
governments. Additionally, the Administrator may conduct independent investigations, studies, and evaluations
as necessary to complete the reviews.
[55 FR 2288, Jan. 23, 1990; 55 FR 5458, Feb. 15,
1990]

§ 206.14 Criminal and civil penalties.
(a) Misuse of funds. Any person who
knowingly misapplies the proceeds of a
loan or other cash benefit obtained
under the Stafford Act shall be fined an
amount equal to one and one-half
times the misapplied amount of the
proceeds or cash benefit.

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§ 206.15

44 CFR Ch. I (10–1–11 Edition)

(b) Civil enforcement. Whenever it appears that any person has violated or is
about to violate any provision of the
Stafford Act, including any civil penalty imposed under the Stafford Act,
the Attorney General may bring a civil
action for such relief as may be appropriate. Such action may be brought in
an appropriate United States district
court.
(c) Referral to Attorney General. The
Office of Chief Counsel shall expeditiously refer to the Attorney General
for appropriate action any evidence developed in the performance of functions under the Stafford Act that may
warrant consideration for criminal
prosecution.
(d) Civil penalty. Any individual who
knowingly violates any order or regulation shall be subject to a civil penalty of not more than $5,500 for each
violation.
[55 FR 2288, Jan. 23, 1990, as amended at 74
FR 15346, Apr. 3, 2009; 74 FR 58850, Nov. 16,
2009]

§ 206.15 Recovery of assistance.
(a) Party liable. Any person who intentionally causes a condition for
which Federal assistance is provided
under this Act or under any other Federal law as a result of a declaration of
a major disaster or emergency under
this Act shall be liable to the United
States for the reasonable costs incurred by the United States in responding to such disaster or emergency to
the extent that such costs are attributable to the intentional act or omission of such person which caused such
condition. Such action shall be brought
in an appropriate United States District Court.
(b) Rendering of care. A person shall
not be liable under this section for
costs incurred by the United States as
a result of actions taken or omitted by
such person in the course of rendering
care or assistance in response to a
major disaster or emergency.
§ 206.16 Audit and investigations.
(a) Subject to the provisions of chapter 75 of title 31, United States Code,
and 44 CFR part 13, relating to requirements for single audits, the Administrator, the Assistant Administrator for
the Disaster Operations Directorate, or

the Regional Administrator shall conduct audits and investigations as necessary to assure compliance with the
Stafford Act, and in connection therewith may question such persons as may
be necessary to carry out such audits
and investigations.
(b) For purposes of audits and investigations under this section, FEMA or
State auditors, the Governor’s Authorized Representative, the Administrator, the Regional Administrator,
the Assistant Administrator for the
Disaster Assistance Directorate, the
DHS Inspector General, and the Comptroller General of the United States, or
their duly authorized representatives,
may inspect any books, documents, papers, and records of any person relating
to any activity undertaken or funded
under the Stafford Act.
[55 FR 2288, Jan. 23, 1990, as amended at 74
FR 15346, Apr. 3, 2009]

§ 206.17

Effective date.

These regulations are effective for all
major disasters or emergencies declared on or after November 23, 1988.
§§ 206.18–206.30

[Reserved]

Subpart B—The Declaration
Process
SOURCE: 55 FR 2292, Jan. 23, 1990, unless
otherwise noted.

§ 206.31

Purpose.

The purpose of this subpart is to describe the process leading to a Presidential declaration of a major disaster
or an emergency and the actions triggered by such a declaration.
§ 206.32 Definitions.
All definitions in the Stafford Act
and in § 206.2 apply. In addition, the following definitions apply:
(a) Appeal: A request for reconsideration of a determination on any action
related to Federal assistance under the
Stafford Act and these regulations.
Specific procedures for appeals are contained in the relevant subparts of these
regulations.
(b) Commitment: A certification by the
Governor that the State and local governments will expend a reasonable

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Federal Emergency Management Agency, DHS
amount of funds to alleviate the effects
of the major disaster or emergency, for
which no Federal reimbursement will
be requested.
(c) Disaster Application Center: A center established in a centralized location within the disaster area for individuals, families, or businesses to apply
for disaster aid.
(d) FEMA-State Agreement: A formal
legal document stating the understandings, commitments, and binding
conditions for assistance applicable as
the result of the major disaster or
emergency declared by the President.
(e) Incident: Any condition which
meets the definition of major disaster
or emergency as set forth in § 206.2
which causes damage or hardship that
may result in a Presidential declaration of a major disaster or an emergency.
(f) Incident period: The time interval
during which the disaster-causing incident occurs. No Federal assistance
under the Act shall be approved unless
the damage or hardship to be alleviated
resulted from the disaster-causing incident which took place during the incident period or was in anticipation of
that incident. The incident period will
be established by FEMA in the FEMAState Agreement and published in the
FEDERAL REGISTER.
§ 206.33 Preliminary damage assessment.
The preliminary damage assessment
(PDA) process is a mechanism used to
determine the impact and magnitude
of damage and the resulting unmet
needs of individuals, businesses, the
public sector, and the community as a
whole. Information collected is used by
the State as a basis for the Governor’s
request, and by FEMA to document the
recommendation made to the President
in response to the Governor’s request.
It is in the best interest of all parties
to combine State and Federal personnel resources by performing a joint
PDA prior to the initiation of a Governor’s request, as follows.
(a) Preassessment by the State. When
an incident occurs, or is imminent,
which the State official responsible for
disaster operations determines may be
beyond the State and local government
capabilities to respond, the State will

§ 206.34

request the Regional Administrator to
perform a joint FEMA-State preliminary damage assessment. It is not anticipated that all occurrences will result in the requirement for assistance;
therefore, the State will be expected to
verify their initial information, in
some manner, before requesting this
support.
(b) Damage assessment teams. Damage
assessment teams will be composed of
at least one representative of the Federal Government and one representative of the State. A local government
representative, familiar with the extent and location of damage in his/her
community, should also be included, if
possible. Other State and Federal agencies, and voluntary relief organizations
may also be asked to participate, as
needed. It is the State’s responsibility
to coordinate State and local participation in the PDA and to ensure that
the participants receive timely notification concerning the schedule. A
FEMA official will brief team members
on damage criteria, the kind of information to be collected for the particular incident, and reporting requirements.
(c) Review of findings. At the close of
the PDA, FEMA will consult with
State officials to discuss findings and
reconcile any differences.
(d) Exceptions. The requirement for a
joint PDA may be waived for those incidents of unusual severity and magnitude that do not require field damage
assessments to determine the need for
supplemental Federal assistance under
the Act, or in such other instances determined by the Regional Administrator upon consultation with the
State. It may be necessary, however, to
conduct an assessment to determine
unmet needs for managerial response
purposes.
§ 206.34 Request for utilization of Department of Defense (DOD) resources.
(a) General. During the immediate
aftermath of an incident which may ultimately qualify for a Presidential declaration of a major disaster or emergency, when threats to life and property are present which cannot be effectively dealt with by the State or local

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§ 206.34

44 CFR Ch. I (10–1–11 Edition)

governments, the Assistant Administrator for the Disaster Assistance Directorate may direct DOD to utilize
DOD personnel and equipment for removal of debris and wreckage and temporary restoration of essential public
facilities and services.
(b) Request process. The Governor of a
State, or the Acting Governor in his/
her absence, may request such DOD assistance. The Governor should submit
the request to the Assistant Administrator for the Disaster Assistance Directorate through the appropriate Regional Administrator to ensure prompt
acknowledgment and processing. The
request must be submitted within 48
hours of the occurrence of the incident.
Requests made after that time may
still be considered if information is
submitted indicating why the request
for assistance could not be made during
the initial 48 hours. The request shall
include:
(1) Information describing the types
and amount of DOD emergency assistance being requested;
(2) Confirmation that the Governor
has taken appropriate action under
State law and directed the execution of
the State emergency plan;
(3) A finding that the situation is of
such severity and magnitude that effective response is beyond the capabilities of the State and affected local governments and that Federal assistance
is necessary for the preservation of life
and property;
(4) A certification by the Governor
that the State and local government
will reimburse FEMA for the non-Federal share of the cost of such work; and
(5) An agreement:
(i) To provide all lands, easements
and rights-of-way necessary to accomplish the approved work without cost
to the United States;
(ii) To hold and save the United
States free from damages due to the requested work, and to indemnify the
Federal
government
against
any
claims arising from such work; and
(iii) To assist DOD in all support and
local jurisdictional matters.
(c) Processing the request. Upon receipt of the request, the Regional Administrator shall gather adequate information to support a recommendation and forward it to the Assistant

Administrator for the Disaster Assistance Directorate. If the Assistant Administrator for the Disaster Assistance
Directorate determines that such work
is essential to save lives and protect
property, he/she will issue a mission assignment to DOD authorizing direct
Federal assistance to the extent
deemed appropriate.
(d) Implementation of assistance. The
performance of emergency work may
not exceed a period of 10 days from the
date of the mission assignment.
(e) Limits. Generally, no work shall be
approved under this section which falls
within the statutory authority of DOD
or another Federal agency. However,
where there are significant unmet
needs of sufficient severity and magnitude, not addressed by other assistance, which could appropriately be addressed under this section of the Stafford Act, the involvement of other Federal agencies would not preclude the
authorization of DOD assistance by the
Assistant Administrator for the Disaster Assistance Directorate.
(f) Federal share. The Federal share of
assistance under this section shall be
not less than 75 percent of the cost of
eligible work.
(g) Project management. DOD shall ensure that the work is completed in accordance with the approved scope of
work, costs, and time limitations in
the mission assignment. DOD shall also
keep the Regional Administrator and
the State advised of work progress and
other project developments. It is the
responsibility of DOD to ensure compliance with applicable Federal, State
and local legal requirements. A final
report will be submitted to the Regional Administrator upon termination
of all direct Federal assistance work.
Final reports shall be signed by a representative of DOD and the State. Once
the final eligible cost is determined,
DOD will request reimbursement from
FEMA and FEMA will submit a bill to
the State for the non-Federal share of
the mission assignment.
(h) Reimbursement of DOD. Reimbursement will be made in accordance
with § 206.8 of these regulations.

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Federal Emergency Management Agency, DHS
§ 206.35 Requests for emergency declarations.
(a) When an incident occurs or
threatens to occur in a State, which
would not qualify under the definition
of a major disaster, the Governor of a
State, or the Acting Governor in his/
her absence, may request that the
President declare an emergency. The
Governor should submit the request to
the President through the appropriate
Regional Administrator to ensure
prompt acknowledgment and processing. The request must be submitted
within 5 days after the need for assistance under title V becomes apparent,
but no longer than 30 days after the occurrence of the incident, in order to be
considered. The period may be extended by the Assistant Administrator
for the Disaster Assistance Directorate
provided that a written request for
such extension is made by the Governor, or Acting Governor, during the
30-day period immediately following
the incident. The extension request
must stipulate the reason for the
delay.
(b) The basis for the Governor’s request must be the finding that the situation:
(1) Is of such severity and magnitude
that effective response is beyond the
capability of the State and the affected
local government(s); and
(2) Requires supplementary Federal
emergency assistance to save lives and
to protect property, public health and
safety, or to lessen or avert the threat
of a disaster.
(c) In addition to the above findings,
the complete request shall include:
(1) Confirmation that the Governor
has taken appropriate action under
State law and directed the execution of
the State emergency plan;
(2) Information describing the State
and local efforts and resources which
have been or will be used to alleviate
the emergency;
(3) Information describing other Federal agency efforts and resources which
have been or will be used in responding
to this incident; and
(4) Identification of the type and extent of additional Federal aid required.
(d) Modified declaration for Federal
emergencies. The requirement for a Governor’s request under paragraph (a) of

§ 206.36

this section can be waived when an
emergency exists for which the primary responsibility rests in the Federal government because the emergency involves a subject area for
which, under the Constitution or laws
of the United States, the Federal government exercises exclusive or preeminent responsibility and authority.
Any party may bring the existence of
such a situation to the attention of the
FEMA Regional Administrator. Any
recommendation for a Presidential declaration of emergency in the absence of
a Governor’s request must be initiated
by the Regional Administrator or
transmitted through the Regional Administrator by another Federal agency.
In determining that such an emergency
exists, the Assistant Administrator for
the Disaster Assistance Directorate or
Regional Administrator shall consult
the Governor of the affected State, if
practicable.
(e) Other authorities. It is not intended for an emergency declaration to
preempt other Federal agency authorities and/or established plans and response mechanisms in place prior to
the enactment of the Stafford Act.
§ 206.36 Requests for major disaster
declarations.
(a) When a catastrophe occurs in a
State, the Governor of a State, or the
Acting Governor in his/her absence,
may request a major disaster declaration. The Governor should submit the
request to the President through the
appropriate Regional Administrator to
ensure prompt acknowledgment and
processing. The request must be submitted within 30 days of the occurrence
of the incident in order to be considered. The 30-day period may be extended by the Assistant Administrator
for the Disaster Assistance Directorate, provided that a written request
for an extension is submitted by the
Governor, or Acting Governor, during
this 30-day period. The extension request will stipulate reasons for the
delay.
(b) The basis for the request shall be
a finding that:
(1) The situation is of such severity
and magnitude that effective response
is beyond the capabilities of the State
and affected local governments; and

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§ 206.37

44 CFR Ch. I (10–1–11 Edition)

(2) Federal assistance under the Act
is necessary to supplement the efforts
and available resources of the State,
local governments, disaster relief organizations, and compensation by insurance for disaster-related losses.
(c) In addition to the above findings,
the complete request shall include:
(1) Confirmation that the Governor
has taken appropriate action under
State law and directed the execution of
the State emergency plan;
(2) An estimate of the amount and severity of damages and losses stating
the impact of the disaster on the public
and private sector;
(3) Information describing the nature
and amount of State and local resources which have been or will be
committed to alleviate the results of
the disaster;
(4) Preliminary estimates of the
types and amount of supplementary
Federal disaster assistance needed
under the Stafford Act; and
(5) Certification by the Governor that
State and local government obligations
and expenditures for the current disaster will comply with all applicable
cost sharing requirements of the Stafford Act.
(d) For those catastrophes of unusual
severity and magnitude when field
damage assessments are not necessary
to determine the requirement for supplemental Federal assistance, the Governor or Acting Governor may send an
abbreviated written request through
the Regional Administrator for a declaration of a major disaster. This may
be transmitted in the most expeditious
manner available. In the event the
FEMA Regional Office is severely impacted by the catastrophe, the request
may be addressed to the Administrator
of FEMA. The request must indicate a
finding in accordance with § 206.36(b),
and must include as a minimum the information requested by § 206.36 (c)(1),
(c)(3), and (c)(5). Upon receipt of the request, FEMA shall expedite the processing of reports and recommendations
to the President. Notification to the
Governor of the Presidential declaration shall be in accordance with 44 CFR
206.39. The Assistant Administrator for
the
Disaster
Assistance
Directorateshall assure that documentation of the declaration is later

assembled to comply fully with these
regulations.
§ 206.37 Processing requests for declarations of a major disaster or
emergency.
(a) Acknowledgment. The Regional Administrator shall provide written acknowledgment of the Governor’s request.
(b) Regional summary. Based on information obtained by FEMA/State preliminary damage assessments of the affected area(s) and consultations with
appropriate State and Federal officials
and other interested parties, the Regional Administrator shall promptly
prepare a summary of the PDA findings. The data will be analyzed and
submitted with a recommendation to
the Assistant Administrator for the
Disaster Assistance Directorate. The
Regional Analysis shall include a discussion of State and local resources
and capabilities, and other assistance
available to meet the major disaster or
emergency-related needs.
(c) FEMA recommendation. Based on
all available information, the Administrator shall formulate a recommendation which shall be forwarded to the
President with the Governor’s request.
(1) Major disaster recommendation. The
recommendation will be based on a
finding that the situation is or is not of
such severity and magnitude as to be
beyond the capabilities of the State
and its local governments. It will also
contain a determination of whether or
not supplemental Federal assistance
under the Stafford Act is necessary and
appropriate. In developing a recommendation, FEMA will consider
such factors as the amount and type of
damages; the impact of damages on affected individuals, the State, and local
governments; the available resources
of the State and local governments,
and other disaster relief organizations;
the extent and type of insurance in effect to cover losses; assistance available from other Federal programs and
other sources; imminent threats to
public health and safety; recent disaster history in the State; hazard mitigation measures taken by the State or
local governments, especially implementation of measures required as a

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Federal Emergency Management Agency, DHS
result of previous major disaster declarations; and other factors pertinent
to a given incident.
(2) Emergency recommendation. The
recommendation will be based on a report which will indicate whether or not
Federal emergency assistance under
section 502 of the Stafford Act is necessary to supplement State and local
efforts to save lives, protect property
and public health and safety, or to lessen or avert the threat of a catastrophe.
Only after it has been determined that
all other resources and authorities
available to meet the crisis are inadequate, and that assistance provided in
section 502 of the Stafford Act would be
appropriate, will FEMA recommend an
emergency declaration to the President.
(d) Modified Federal emergency recommendation. The recommendation will
be based on a report which will indicate that an emergency does or does
not exist for which assistance under
section 502 of the Stafford Act would be
appropriate. An emergency declaration
will not be recommended in situations
where the authority to respond or coordinate is within the jurisdiction of
one or more Federal agencies without a
Presidential
declaration.
However,
where there are significant unmet
needs of sufficient severity and magnitude, not addressed by other assistance, which could appropriately be addressed under the Stafford Act, the involvement of other Federal agencies
would not preclude a declaration of an
emergency under the Act.
§ 206.38 Presidential determination.
(a) The Governor’s request for a
major disaster declaration may result
in either a Presidential declaration of
a major disaster or an emergency, or
denial of the Governor’s request.
(b) The Governor’s request for an
emergency declaration may result only
in a Presidential declaration of an
emergency, or denial of the Governor’s
request.
[55 FR 2292, Jan. 23, 1990; 55 FR 5458, Feb. 15,
1990]

§ 206.39 Notification.
(a) The Governor will be promptly
notified by the Administrator or his/
her designee of a declaration by the

§ 206.40

President that an emergency or a
major disaster exists. FEMA also will
notify other Federal agencies and other
interested parties.
(b) The Governor will be promptly
notified by the Administrator or his/
her designee of a determination that
the Governor’s request does not justify
the use of the authorities of the Stafford Act.
(c) Following a major disaster or
emergency declaration, the Regional
Administrator or the Assistant Administrator for the Disaster Assistance Directorate will promptly notify the Governor of the designations of assistance
and areas eligible for such assistance.
§ 206.40 Designation of affected areas
and eligible assistance.
(a) Eligible assistance. The Assistant
Administrator for the Disaster Assistance Directorate has been delegated
authority to determine and designate
the types of assistance to be made
available. The initial designations will
usually be announced in the declaration. Determinations by the Assistant
Administrator for the Disaster Assistance Directorate of the types and extent of FEMA disaster assistance to be
provided are based upon findings
whether the damage involved and its
effects are of such severity and magnitude as to be beyond the response capabilities of the State, the affected
local governments, and other potential
recipients of supplementary Federal
assistance. The Assistant Administrator for the Disaster Assistance Directorate may authorize all, or only
particular types of, supplementary
Federal assistance requested by the
Governor.
(b) Areas eligible to receive assistance.
The Assistant Administrator for the
Disaster Assistance Directorate also
has been delegated authority to designate the affected areas eligible for
supplementary
Federal
assistance
under the Stafford Act. These designations shall be published in the FEDERAL
REGISTER. An affected area designated
by the Assistant Administrator for the
Disaster Assistance Directorate includes all local government jurisdictions within its boundaries. The Assistant Administrator for the Disaster Assistance Directorate may, based upon

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§ 206.41

44 CFR Ch. I (10–1–11 Edition)

damage assessments in any given area,
designate all or only some of the areas
requested by the Governor for supplementary Federal assistance.
(c) Requests for additional designations
after a declaration. After a declaration
by the President, the Governor, or the
GAR, may request that additional
areas or types of supplementary Federal assistance be authorized by the
Assistant Administrator for the Disaster Assistance Directorate. Such requests shall be accompanied by appropriate verified assessments and commitments by State and local governments to demonstrate that the requested designations are justified and
that the unmet needs are beyond State
and local capabilities without supplementary Federal assistance. Additional
assistance or areas added to the declaration will be published in the FEDERAL REGISTER.
(d) Time limits to request. In order to
be considered, all supplemental requests under paragraph (c) of this section must be submitted within 30 days
from the termination date of the incident, or 30 days after the declaration,
whichever is later. The 30-day period
may be extended by the Assistant Administrator for the Disaster Assistance
Directorate provided that a written request is made by the appropriate State
official during this 30-day period. The
request must include justification of
the State’s inability to meet the deadline.
[55 FR 2292, Jan. 23, 1990, as amended at 74
FR 60213, Nov. 20, 2009]

§ 206.41 Appointment of disaster officials.
(a) Federal Coordinating Officer. Upon
a declaration of a major disaster or of
an emergency by the President, the Administrator or Deputy Administrator
shall appoint an FCO who shall initiate
action immediately to assure that Federal assistance is provided in accordance with the declaration, applicable
laws, regulations, and the FEMA-State
Agreement.
(b) Disaster Recovery Manager. The
Regional Administrator shall designate
a DRM to exercise all the authority of
the Regional Administrator in a major
disaster or an emergency.

(c) State Coordinating Officer. Upon a
declaration of a major disaster or of an
emergency, the Governor of the affected State shall designate an SCO
who shall coordinate State and local
disaster assistance efforts with those of
the Federal Government.
(d) Governor’s Authorized Representative. In the FEMA-State Agreement,
the Governor shall designate the GAR,
who shall administer Federal disaster
assistance programs on behalf of the
State and local governments and other
grant or loan recipients. The GAR is
responsible for the State compliance
with the FEMA-State Agreement.
§ 206.42 Responsibilities
nating officers.

of

coordi-

(a) Following a declaration of a
major disaster or an emergency, the
FCO shall:
(1) Make an initial appraisal of the
types of assistance most urgently needed;
(2) In coordination with the SCO, establish field offices and Disaster Application Centers as necessary to coordinate and monitor assistance programs,
disseminate information, accept applications, and counsel individuals, families and businesses concerning available assistance;
(3) Coordinate the administration of
relief, including activities of State and
local governments, activities of Federal agencies, and those of the American Red Cross, the Salvation Army,
the Mennonite Disaster Service, and
other voluntary relief organizations
which agree to operate under the FCO’s
advice and direction;
(4) Undertake appropriate action to
make certain that all of the Federal
agencies are carrying out their appropriate disaster assistance roles under
their own legislative authorities and
operational policies; and
(5) Take other action, consistent
with the provisions of the Stafford Act,
as necessary to assist citizens and public officials in promptly obtaining assistance to which they are entitled.
(b) The SCO coordinates State and
local disaster assistance efforts with
those of the Federal Government working closely with the FCO. The SCO is

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Federal Emergency Management Agency, DHS
the principal point of contact regarding coordination of State and local disaster relief activities, and implementation of the State emergency plan. The
functions, responsibilities, and authorities of the SCO are set forth in the
State emergency plan. It is the responsibility of the SCO to ensure that all
affected local jurisdictions are informed of the declaration, the types of
assistance authorized, and the areas eligible to receive such assistance.
§ 206.43

Emergency support teams.

The Federal Coordinating Officer
may
activate
emergency
support
teams, composed of Federal program
and support personnel, to be deployed
into an area affected by a major disaster or emergency. These emergency
support teams assist the FCO in carrying out his/her responsibilities under
the Stafford Act and these regulations.
Any Federal agency can be directed to
detail personnel within the agency’s
administrative jurisdiction to temporary duty with the FCO. Each detail
shall be without loss of seniority, pay,
or other employee status.
§ 206.44

FEMA-State Agreements.

(a) General. Upon the declaration of a
major disaster or an emergency, the
Governor, acting for the State, and the
FEMA Regional Administrator or his/
her designee, acting for the Federal
Government, shall execute a FEMAState Agreement. The 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, their local governments, and private nonprofit organizations within the States in the form of
conditions for assistance which are legally enforceable. No FEMA funding
will be authorized or provided to any
grantees or other recipients, nor will
direct Federal assistance be authorized
by mission assignment, until such time
as this Agreement for the Presidential
declaration has been signed, except
where it is deemed necessary by the
Regional Administrator to begin the
process of providing essential emergency services or housing assistance

§ 206.45

under the Individuals and Households
Program.
(b) Terms and conditions. This Agreement describes the incident and the incident period for which assistance will
be made available, the type and extent
of the Federal assistance to be made
available, and contains the commitment of the State and local government(s) with respect to the amount of
funds to be expended in alleviating
damage and suffering caused by the
major disaster or emergency. The
Agreement also contains such other
terms and conditions consistent with
the declaration and the provisions of
applicable laws, Executive Order and
regulations.
(c) Provisions for modification. In the
event that the conditions stipulated in
the original Agreement are changed or
modified, such changes will be reflected in properly executed amendments to the Agreement, which may be
signed by the GAR and the Regional
Administrator or his/her designee for
the specified major disaster or emergency. Amendments most often occur
to close or amend the incident period,
to add forms of assistance not originally authorized, or to designate additional areas eligible for assistance.
(d) In a modified declaration for a
Federal emergency, a FEMA-State
Agreement may or may not be required
based on the type of assistance being
provided.
[55 FR 2292, Jan. 23, 1990, as amended at 67
FR 61460, Sept. 30, 2002]

§ 206.45 Loans of non-Federal share.
(a) Conditions for making loans. At the
request of the Governor, the Assistant
Administrator for the Disaster Assistance Directorate together with the
Chief Financial Officer may lend or advance to a State, either for its own use
or for the use of public or private nonprofit applicants for disaster assistance
under the Stafford Act, the portion of
assistance for which the State or other
eligible disaster assistance applicant is
responsible under the cost-sharing provisions of the Stafford Act in any case
in which:
(1) The State or other eligible disaster assistance applicant is unable to
assume their financial responsibility
under such cost sharing provisions:

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§ 206.46

44 CFR Ch. I (10–1–11 Edition)

(i) As a result of concurrent, multiple
major disasters in a jurisdiction, or
(ii) After incurring extraordinary
costs as a result of a particular disaster;
(2) The damages caused by such disasters or disaster are so overwhelming
and severe that it is not possible for
the State or other eligible disaster assistance applicant to immediately assume their financial responsibility
under the Act; and
(3) The State and the other eligible
disaster applicants are not delinquent
in payment of any debts to FEMA incurred as a result of Presidentially declared major disasters or emergencies.
(b) Repayment of loans. Any loan
made to a State under paragraph (a) of
this section must be repaid to the
United States. The Governor must include a repayment schedule as part of
the request for advance.
(1) The State shall repay the loan
(the principal disbursed plus interest)
in accordance with the repayment
schedule approved by the Assistant Administrator for the Disaster Assistance
Directorate together with the Chief Financial Officer.
(2) If the State fails to make payments in accordance with the approved
repayment schedule, FEMA will offset
delinquent amounts against the current, prior, or any subsequent disasters, or monies due the State under
other FEMA programs, in accordance
with the established Claims Collection
procedures.
(c) Interest. Loans or advances under
paragraph (a) of this section shall bear
interest at a rate determined by the
Secretary of the Treasury, taking into
consideration the current market
yields on outstanding marketable obligations of the United States with remaining periods to maturity comparable to the reimbursement period of
the loan or advance. Simple interest
will be computed from the date of the
disbursement of each drawdown of the
loan/advance by the State based on 365
days/year.
§ 206.46 Appeals.
(a) Denial of declaration request. When
a request for a major disaster declaration or for any emergency declaration
is denied, the Governor may appeal the

decision. An appeal must be made within 30 days after the date of the letter
denying the request. This one-time request for reconsideration, along with
appropriate additional information, is
submitted to the President through the
appropriate Regional Administrator.
The processing of this request is similar to the initial request.
(b) Denial of types of assistance or
areas. In those instances when the type
of assistance or certain areas requested
by the Governor are not designated or
authorized, the Governor, or the GAR,
may appeal the decision. An appeal
must be submitted in writing within 30
days of the date of the letter denying
the request. This one-time request for
reconsideration, along with justification and/or additional information, is
sent to the Assistant Administrator for
the
Disaster
Assistance
Directoratethrough the appropriate
Regional Administrator.
(c) Denial of advance of non-Federal
share. In those instances where the
Governor’s request for an advance is
denied, the Governor may appeal the
decision. An appeal must be submitted
in writing within 30 days of the date of
the letter denying the request. This
one-time request for reconsideration,
along with justification and/or additional information, is sent to the Assistant Administrator for the Disaster
Assistance Directoratethrough the appropriate Regional Administrator.
(d) Extension of time to appeal. The 30day period referred to in paragraphs
(a), (b), or (c) of this section may be extended by the Assistant Administrator
for the Disaster Assistance Directorate
provided that a written request for
such an extension, citing reasons for
the delay, is made during this 30-day
period, and if the Assistant Administrator for the Disaster Assistance Directorate agrees that there is a legitimate basis for extension of the 30-day
period. Only the Governor may request
a time extension for appeals covered in
paragraphs (a) and (c) of this section.
The Governor, or the GAR if one has
been named, may submit the time extension request for appeals covered in
paragraph (b) of this section.

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Federal Emergency Management Agency, DHS
§ 206.47

Cost-share adjustments.

(a) We pay seventy-five percent (75%)
of the eligible cost of permanent restorative work under section 406 of the
Stafford Act and for emergency work
under section 403 and section 407 of the
Stafford Act, unless the Federal share
is increased under this section.
(b) We recommend an increase in the
Federal cost share from seventy-five
percent (75%) to not more than ninety
percent (90%) of the eligible cost of
permanent work under section 406 and
of emergency work under section 403
and section 407 whenever a disaster is
so extraordinary that actual Federal
obligations under the Stafford Act, excluding FEMA administrative cost,
meet or exceed a qualifying threshold
of:
(1) Beginning in 1999 and effective for
disasters declared on or after May 21,
1999, $75 per capita of State population;
(2) Effective for disasters declared
after January 1, 2000, and through December 31, 2000, $85 per capita of State
population;
(3) Effective for disasters declared
after January 1, 2001, $100 per capita of
State population; and,
(4) Effective for disasters declared
after January 1, 2002 and for later
years, $100 per capita of State population, adjusted annually for inflation
using the Consumer Price Index for All
Urban Consumers published annually
by the Department of Labor.
(c) When we determine whether to
recommend a cost-share adjustment we
consider the impact of major disaster
declarations in the State during the
preceding twelve-month period.
(d) If warranted by the needs of the
disaster, we recommend up to one hundred percent (100%) Federal funding for
emergency work under section 403 and
section 407, including direct Federal assistance, for a limited period in the initial days of the disaster irrespective of
the per capita impact.
[64 FR 19498, Apr. 21, 1999]

§ 206.48 Factors considered when evaluating a Governor’s request for a
major disaster declaration.
When we review a Governor’s request
for major disaster assistance under the
Stafford Act, these are the primary

§ 206.48

factors in making a recommendation
to the President whether assistance is
warranted. We consider other relevant
information as well.
(a) Public Assistance Program. We
evaluate the following factors to evaluate the need for assistance under the
Public Assistance Program.
(1) Estimated cost of the assistance. We
evaluate the estimated cost of Federal
and
nonfederal
public
assistance
against the statewide population to
give some measure of the per capita
impact within the State. We use a figure of $1 per capita as an indicator that
the disaster is of such size that it
might warrant Federal assistance, and
adjust this figure annually based on
the Consumer Price Index for all Urban
Consumers. We are establishing a minimum threshold of $1 million in public
assistance damages per disaster in the
belief that we can reasonably expect
even the lowest population States to
cover this level of public assistance
damage.
(2) Localized impacts. We evaluate the
impact of the disaster at the county
and local government level, as well as
impacts at the American Indian and
Alaskan Native Tribal Government levels, because at times there are extraordinary concentrations of damages that
might warrant Federal assistance even
if the statewide per capita is not met.
This is particularly true where critical
facilities are involved or where localized per capita impacts might be extremely high. For example, we have at
times seen localized damages in the
tens or even hundreds of dollars per
capita though the statewide per capita
impact was low.
(3) Insurance coverage in force. We
consider the amount of insurance coverage that is in force or should have
been in force as required by law and
regulation at the time of the disaster,
and reduce the amount of anticipated
assistance by that amount.
(4) Hazard mitigation. To recognize
and encourage mitigation, we consider
the extent to which State and local
government measures contributed to
the reduction of disaster damages for
the disaster under consideration. For
example, if a State can demonstrate in
its disaster request that a Statewide
building code or other mitigation

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§ 206.48

44 CFR Ch. I (10–1–11 Edition)

measures are likely to have reduced
the damages from a particular disaster,
we consider that in the evaluation of
the request. This could be especially
significant in those disasters where, because of mitigation, the estimated public assistance damages fell below the
per capita indicator.
(5) Recent multiple disasters. We look
at the disaster history within the last
twelve-month period to evaluate better
the overall impact on the State or locality. We consider declarations under
the Stafford Act as well as declarations
by the Governor and the extent to
which the State has spent its own
funds.
(6) Programs of other Federal assistance. We also consider programs of
other Federal agencies because at
times their programs of assistance
might more appropriately meet the
needs created by the disaster.
(b) Factors for the Individual Assistance Program. We consider the following factors to measure the severity,
magnitude and impact of the disaster
and to evaluate the need for assistance
to individuals under the Stafford Act.
(1) Concentration of damages. We
evaluate the concentrations of damages to individuals. High concentrations of damages generally indicate a
greater need for Federal assistance
than widespread and scattered damages
throughout a State.
(2) Trauma. We consider the degree of
trauma to a State and to communities.

Some of the conditions that might
cause trauma are:
(i) Large numbers of injuries and
deaths;
(ii) Large scale disruption of normal
community functions and services; and
(iii) Emergency needs such as extended or widespread loss of power or
water.
(3) Special populations. We consider
whether special populations, such as
low-income, the elderly, or the unemployed are affected, and whether they
may have a greater need for assistance.
We also consider the effect on American Indian and Alaskan Native Tribal
populations in the event that there are
any unique needs for people in these
governmental entities.
(4) Voluntary agency assistance. We
consider the extent to which voluntary
agencies and State or local programs
can meet the needs of the disaster victims.
(5) Insurance. We consider the
amount of insurance coverage because,
by law, Federal disaster assistance cannot duplicate insurance coverage.
(6) Average amount of individual assistance by State. There is no set threshold
for recommending Individual Assistance, but the following averages may
prove useful to States and voluntary
agencies as they develop plans and programs to meet the needs of disaster
victims.

AVERAGE AMOUNT OF ASSISTANCE PER DISASTER
[July 1994 to July 1999]

Average Population (1990 census data) ............................................
Number of Disaster Housing Applications Approved .........................
Number of Homes Estimated Major Damage/Destroyed ...................
Dollar Amount of Housing Assistance ................................................
Number of Individual and Family Grant Applications Approved ........
Dollar Amount of Individual and Family Grant Assistance .................
Disaster Housing/IFG Combined Assistance .....................................

NOTE: The high 3 and low 3 disasters, based
on Disaster Housing Applications, are not
considered in the averages. Number of Damaged/Destroyed Homes is estimated based on
the number of owner-occupants who qualify
for Eligible Emergency Rental Resources.
Data source is FEMA’s National Processing

Small states
(under 2 million
pop.)

Medium states
(2–10 million
pop.)

1,000,057 ...........
1,507 ..................
173 .....................
$2.8 million
495 .....................
1.1 million ...........
3.9 million ...........

4,713,548 ...........
2,747 ..................
582 .....................
$4.6 million
1,377 ..................
2.9 million ...........
7.5 million ...........

Large states
(over 10 million
pop.)
15,522,791
4,679
801
$9.5 million
2,071
4.6 million
14.1 million

Service Centers. Data are only available
from July 1994 to the present.
Small Size States (under 2 million population,
listed in order of 1990 population): Wyoming,
Alaska, Vermont, District of Columbia,
North Dakota, Delaware, South Dakota,
Montana, Rhode Island, Idaho, Hawaii, New

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Federal Emergency Management Agency, DHS
Hampshire, Nevada, Maine, New Mexico, Nebraska, Utah, West Virginia. U.S. Virgin Islands and all Pacific Island dependencies.
Medium Size States (2–10 million population,
listed in order of 1990 population): Arkansas,
Kansas, Mississippi, Iowa, Oregon, Oklahoma, Connecticut, Colorado, South Carolina, Arizona, Kentucky, Alabama, Louisiana, Minnesota, Maryland, Washington,
Tennessee, Wisconsin, Missouri, Indiana,
Massachusetts, Virginia, Georgia, North
Carolina, New Jersey, Michigan. Puerto
Rico.
Large Size States (over 10 million population,
listed in order of 1990 population): Ohio, Illinois, Pennsylvania, Florida, Texas, New
York, California.
[64 FR 47698, Sept. 1, 1999]

§§ 206.49–206.60

[Reserved]

Subpart C—Emergency
Assistance

§ 206.66

(2) Issuance of warnings of risks or
hazards;
(3) Public health and safety information, including dissemination of such
information;
(4) Provision of health and safety
measures; and
(5) Management, control, and reduction of immediate threats to public
health and safety;
(d) Provide emergency assistance
under the Stafford Act through Federal
agencies;
(e) Remove debris in accordance with
the terms and conditions of section 407
of the Stafford Act;
(f) Provide assistance in accordance
with section 408 of the Stafford Act;
and
(g) Assist State and local governments in the distribution of medicine,
food, and other consumable supplies,
and emergency assistance.

SOURCE: 55 FR 2296, Jan. 23, 1990, unless
otherwise noted.

[55 FR 2296, Jan. 23, 1990, as amended at 67
FR 61460, Sept. 30, 2002]

§ 206.61

§ 206.63 Provision of assistance.
Assistance authorized by an emergency declaration is limited to immediate and short-term assistance, essential to save lives, to protect property
and public health and safety, or to lessen or avert the threat of a catastrophe.

Purpose.

The purpose of this subpart is to
identify the forms of assistance which
may be made available under an emergency declaration.
§ 206.62

Available assistance.

In any emergency declaration, the
Regional Administrator or Administrator may provide assistance, as follows:
(a) Direct any Federal agency, with
or without reimbursement, to utilize
its authorities and the resources granted to it under Federal law (including
personnel, equipment, supplies, facilities, and managerial, technical and advisory services) in support of State and
local emergency assistance efforts to
save lives, protect property and public
health and safety, and lessen or avert
the threat of a catastrophe;
(b) Coordinate all disaster relief assistance (including voluntary assistance) provided by Federal agencies,
private organizations, and State and
local governments;
(c) Provide technical and advisory assistance to affected State and local
governments for:
(1) The performance of essential community services;

§ 206.64 Coordination of assistance.
After an emergency declaration by
the President, all Federal agencies,
voluntary organizations, and State and
local governments providing assistance
shall operate under the coordination of
the Federal Coordinating Officer.
§ 206.65 Cost sharing.
The Federal share for assistance provided under this title shall not be less
than 75 percent of the eligible costs.
§ 206.66 Limitation on expenditures.
Total assistance provided in any
given emergency declaration may not
exceed $5,000,000, except when it is determined by the Administrator that:
(a) Continued emergency assistance
is immediately required;
(b) There is a continuing and immediate risk to lives, property, public
health and safety; and
(c) Necessary assistance will not otherwise be provided on a timely basis.

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§ 206.67

44 CFR Ch. I (10–1–11 Edition)

§ 206.67 Requirement when limitation
is exceeded.
Whenever the limitation described in
§ 206.66 is exceeded, the Administrator
must report to the Congress on the nature and extent of continuing emergency assistance requirements and
shall propose additional legislation if
necessary.
§§ 206.68–206.100

[Reserved]

Subpart D—Federal Assistance to
Individuals and Households
§ 206.101 Temporary housing assistance for emergencies and major disasters declared on or before October 14, 2002.
(a) Purpose. This section prescribes
the policy to be followed by the Federal Government or any other organization when implementing section 408
of the Stafford Act for Presidentiallydeclared emergencies and major disasters declared on or before October 14,
2002 (Note that the reference to section
408 of the Stafford Act refers to prior
legislation amended by the Disaster
Mitigation Act 2000).
(b) Program intent. Assistance under
this program is made available to applicants who require temporary housing as a result of a major disaster or
emergency that is declared by the
President. Eligibility for assistance is
based on need created by disaster-related unlivability of a primary residence or other disaster-related displacement, combined with a lack of
adequate insurance coverage. Eligible
applicants may be paid for authorized
accommodations and/or repairs. In the
interest of assisting the greatest number of people in the shortest possible
time, applicants who are able to do so
will be encouraged to make their own
arrangements for temporary housing.
Although numerous instances of minor
damage may cause some inconvenience
to the applicant, the determining eligibility factor must be the livability of
the primary residence. FEMA has also
determined that it is reasonable to expect applicants or their landlords to
make some repairs of a minor nature.
Temporary housing will normally consist of a check to cover housing-related
costs wherever possible.

(c) Definitions—(1) Adequate alternate
housing means housing that:
(i) Accommodates the needs of the
occupants.
(ii) Is within reasonable commuting
distance of work, school, or agricultural activities which provide over 25%
of the household income.
(iii) Is within the financial ability of
the occupant in the realization of a
permanent housing plan.
(2) Effective date of assistance means
the date the eligible applicant received
temporary housing assistance but,
where applicable, only after appropriate insurance benefits are exhausted.
(3) Essential living area means that
area of the residence essential to normal living, i.e., kitchen, one bathroom,
dining area, living room, entrances and
exits, and essential sleeping areas. It
does not include family rooms, guest
rooms, garages, or other nonessential
areas, unless hazards exist in these
areas which impact the safety of the
essential living area.
(4) Fair market rent means a reasonable amount to pay in the local area
for the size and type of accommodations which meets the applicant’s
needs.
(5) Financial ability is the determination of the occupant’s ability to pay
housing costs. The determination is
based upon the amount paid for housing before the disaster, provided the
household income has not changed subsequent to or as a result of the disaster
or 25 percent of gross post disaster income if the household income changed
as a result of the disaster. When computing financial ability, extreme or unusual financial circumstances may be
considered by the Regional Administrator.
(6) Household means all residents of
the predisaster residence who request
temporary housing assistance, plus any
additions during the temporary housing period, such as infants, spouses, or
part-time residents who were not
present at the time of the disaster but
who are expected to return during the
temporary housing period.
(7) Housing costs means shelter rent
and mortgage payments including principal, interest, real estate taxes, real

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Federal Emergency Management Agency, DHS
property insurance, and utility costs,
where appropriate.
(8) Occupant means an eligible applicant residing in temporary housing
provided under this section.
(9) Owner-occupied means that the
residence is occupied by: the legal
owner; a person who does not hold formal title to the residence and pays no
rent but is responsible for the payment
of taxes, or maintenance of the residence; or a person who has lifetime occupancy rights with formal title vested
in another.
(10) Primary residence means the
dwelling where the applicant normally
lives during the major portion of the
calendar year, a dwelling which is required because of proximity to employment, or to agricultural activities as
referenced in paragraph (c)(1)(ii) of this
section.
(d) Duplication of benefits—(1) Requirement to avoid duplication. Temporary
housing assistance shall not be provided to an applicant if such assistance
has been provided by any other source.
If any State or local government or
voluntary agency has provided temporary housing, the assistance under
this section begins at the expiration of
such assistance, and may continue for
a period not to exceed l8 months from
the date of declaration, provided the
criteria for continued assistance in
paragraph (k)(3) of this section are
met. If it is determined that temporary
housing assistance will be provided
under this section, notification shall be
given those agencies which have the
potential for duplicating such assistance. In the instance of insured applicants, temporary housing assistance
shall be provided only when:
(i) Payment of the applicable benefits
has been significantly delayed;
(ii) Applicable benefits have been exhausted;
(iii) Applicable benefits are insufficient to cover the temporary housing
need; or
(iv) Housing is not available on the
private market.
(2) Recovery of funds. Prior to provision of assistance, the applicant must
agree to repay to FEMA from insurance proceeds or recoveries from any
other source an amount equivalent to
the value of the temporary housing as-

§ 206.101

sistance provided. In no event shall the
amount repaid to FEMA exceed the
amount recovered by the applicant. All
claims shall be collected in accordance
with agency procedures for debt collection.
(e) Applications—(1) Application period.
The standard FEMA application period
is the 60 days following the date the
President declares an incident a major
disaster or an emergency. The Regional
Administrator may, however, extend
the application period, when we anticipate that we need more time to collect
applications from the affected population or to establish the same application deadline for contiguous Counties
or States. After the application period
has ended, FEMA will accept and process applications for an additional 60
days only from persons who can provide an acceptable explanation (and
documentation to substantiate their
explanation) for why they were not
able to contact FEMA before the application period ended.
(2) Household composition. Members of
a household shall be included on a single application and be provided one
temporary housing residence unless it
is determined by the Regional Administrator that the size of the household
requires that more than one residence
be provided.
(f) General eligibility guidelines. Temporary housing assistance may be made
available to those applicants who, as a
result of a major disaster or emergency
declared by the President, are qualified
for such assistance.
(1) Conditions of eligibility. Temporary
housing assistance may be provided
only when both of the following conditions are met:
(i) The applicant’s primary residence
has been made unlivable or the applicant has been displaced as the result of
a major disaster or emergency because:
(A) The residence has been destroyed,
essential utility service has been interrupted, or the essential living area has
been damaged as a result of the disaster to such an extent as to constitute
a serious health or safety hazard which
did not exist prior to the disaster. The
Regional Administrator shall prepare
additional guidelines when necessary
to respond to a particular disaster;

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§ 206.101

44 CFR Ch. I (10–1–11 Edition)

(B) The residence has been made inaccessible as a result of the incident to
the extent that the applicant cannot
reasonably be expected to gain entry
due to the disruption or destruction of
transportation routes, other impediments to access, or restrictions placed
on movement by a responsible official
due to continued health and safety
problems;
(C) The owner of the applicant’s residence requires the residence to meet
their personal needs because the owner’s predisaster residence was made
unlivable as a result of the disaster;
(D) Financial hardship resulting from
the disaster has led to eviction or dispossession; or
(E) Other circumstances resulting
from the disaster, as determined by the
Regional Administrator, prevent the
applicant
from
occupying
their
predisaster primary residence.
(ii) Insured applicants have made
every reasonable effort to secure insurance benefits, and the insured has
agreed to repay FEMA from whatever
insurance proceeds are later received,
pursuant to paragraph (d)(2) of this section.
(2) Conditions of ineligibility. Except as
provided for in section 408(b), Temporary Housing Assistance shall not be
provided:
(i) To an applicant who is displaced
from other than their primary residence; or
(ii) When the residence in question is
livable, i.e., only minor damage exists
and it can reasonably be expected to be
repaired by the applicant/owner or the
landlord; or
(iii) When the applicant owns a secondary or vacation residence, or unoccupied rental property which meets
their temporary housing needs; or
(iv) To an applicant who has adequate rent-free housing accommodations; or
(v) To an applicant who has adequate
insurance coverage and there is no indication that benefits will be delayed;
or
(vi) When a late application is not approved for processing by the Regional
Administrator; or
(vii) To an applicant who evacuated
the residence in response to official
warnings solely as a precautionary

measure, and who is able to return to
the residence immediately after the incident (i.e., the applicant is not otherwise eligible for temporary housing assistance).
(g) Forms of Temporary Housing Assistance. All proceeds received or receivable by the applicant under § 206.101
shall be exempt from garnishment, seizure, encumbrance, levy, execution,
pledge, attachment, release, or waiver.
No rights under this provision are assignable or transferable.
(1) Temporary Housing Assistance is
normally provided in the form of a
check to cover the cost of rent or essential home repairs. The exceptions to
this are when existing rental resources
are not available and repairs to the
home will not make it livable in a reasonable period of time, or when the eligible applicant is unable to physically
leave the home due to the need to tend
crops or livestock.
(i) Government-owned, private, and
commercial properties. When an eligible
applicant is unable to obtain an available temporary housing unit, FEMA
may enter into a leasing agreement for
the eligible applicant. Rent payments
shall be in accordance with the fair
market rent (FMR) rates established
for each operation for the type and size
residence.
(ii) Transient accommodations. Immediately following a Presidentially declared major disaster or emergency,
disaster victims are expected to stay
with family or friends without FEMA
assistance, or to make use of mass
shelters to the fullest extent possible
for short-term housing. Transient accommodations may be provided when
individual circumstances warrant such
assistance for only a short period of
time or pending provision of other temporary housing resources. Transient
accommodations may be provided for
up to 30 days unless this period is extended by the Regional Administrator.
Authorized expenditures for transient
accommodations shall be restricted to
the rental cost including utilities except for those which are separately metered. Payment for food, telephone, or
other similar services is not authorized
under this section.
(2) Mobile homes, travel trailers, and
other manufactured housing units.

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Federal Emergency Management Agency, DHS
Government-owned or privately owned
mobile homes, travel trailers, and
other manufactured housing units may
be placed on commercial, private, or
group sites. The placement must comply with applicable State and local
codes and ordinances as well as
FEMA’S regulations at 44 CFR part 9,
Floodplain Management and Protection of Wetlands, and the regulations
at 44 CFR part 10, Environmental Considerations.
(i) A commercial site is a site customarily leased for a fee because it is
fully equipped to accommodate a housing unit. In accordance with section
408(a)(2)(B), the Assistant Administrator for the Disaster Assistance Directorate has determined that leasing
commercial sites at Federal expense is
in the public interest. When the Regional Administrator determines that
upgrading of commercial sites or installation of utilities on such sites will
provide more cost-effective, timely,
and suitable temporary housing than
other types of resources, they may authorize such action at Federal expense.
(ii) A private site is a site provided or
obtained by the applicant at no cost to
the Federal Government. Also in accordance with section 408(a)(2)(B), the
Assistant Administrator for the Disaster Assistance Directorate has determined that the cost of installation or
repairs of essential utilities on private
sites is authorized at Federal expense
when such actions will provide more
cost-effective, timely, and suitable
temporary housing than other types of
resources.
(iii) A group site is a site which accommodates two or more units. In accordance with section 408(a)(2)(A), locations for group sites shall be provided
by State or local government complete
with utilities. However, the Assistant
Administrator for the Disaster Assistance Directorate may authorize development of group sites, including installation of essential utilities, by the Federal Government, based on a recommendation from the Regional Administrator; provided, however, that
the Federal expense is limited to 75
percent of the cost of construction and
development (including installation of
utilities). In accordance with section
408(a)(4) of the Stafford Act, the State

§ 206.101

or local government shall pay any cost
which is not paid for from the Federal
share, including long-term site maintenance such as snow removal, street repairs and other services of a governmental nature.
(3) Temporary mortgage and rental payments. Assistance in the form of mortgage or rental payments may be paid
to or be provided on behalf of eligible
applicants who, as a result of a major
disaster or emergency, have received
written notice of dispossession or eviction from their primary residence by
foreclosure of any mortgage or lien,
cancellation of any contract of sale, or
termination of any lease entered into
prior to the disaster. Written notice,
for the purpose of this paragraph,
means a communication in writing by
a landlord, mortgage holder, or other
party authorized under State law to
file such notice. The purpose of such
notice is to notify a person of impending termination of a lease, foreclosure
of a mortgage or lien, or cancellation
of any contract of sale, which would result in the person’s dispossession or
eviction. Applications for this type of
assistance may be filed for up to 6
months following the date of declaration. This assistance may be provided
for a period not to exceed 18 months or
for the duration of the period of financial hardship, as determined by the Regional Administrator, whichever is
less. The location of the residence of an
applicant for assistance under this section shall not be a consideration of eligibility.
(4) Home repairs. Repairs may be authorized to quickly repair or restore to
a livable condition that portion of or
areas affecting the essential living area
of, or private access to, an owner-occupied primary residence which was damaged as a result of the disaster. Installation of utilities or conveniences not
available in the residence prior to the
disaster shall not be provided. However, repairs which are authorized shall
conform to applicable local and/or
State building codes; upgrading of existing damaged utilities may be authorized when required by these codes.
(i) Options for repairs. Eligible applicants approved for repairs may be assisted through one or a combination of
the following methods:

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§ 206.101

44 CFR Ch. I (10–1–11 Edition)

(A) Cash payment. Payment shall be
limited to the reasonable costs for the
repairs and replacements in the locality, as determined by the Regional Administrator. This will be the method
normally used, unless unusual circumstances warrant the methods listed
under paragraph (g)(4), (i) (B) or (C) of
this section.
(B) Provision of materials and replacement items.
(C) Government awarded repair contracts when authorized by the Assistant Administrator for the Disaster Assistance Directorate.
(ii) Feasibility. Repairs may be provided to those eligible applicants:
(A) Who are owner-occupants of the
residence to be made livable;
(B) Whose residence can be made livable by repairs to the essential living
area within 30 days following the feasibility determination. The Regional Administrator may extend this period for
extenuating circumstances by determining that this type of assistance is
still more cost effective, timely and
otherwise suitable than other forms for
temporary housing; and
(C) Whose residence can be made livable by repairs to the essential living
area, the cost of which do not exceed
the dollar limitations established by
the Assistant Administrator for the
Disaster Assistance Directorate. The
Regional Administrator may, on a
case-by-case basis, waive the dollar
limitations when repairs are more cost
effective and appropriate than other
forms of housing assistance or when extenuating circumstances warrant.
(iii) Scope of work. The type of repair
or replacement authorized may vary
depending upon the nature of the disaster. Items will be repaired where feasible or replaced only when necessary
to insure the safety or health of the occupant. Replacement items shall be of
average quality, size, and capacity taking into consideration the needs of the
occupant. Repairs shall be disaster related and shall be limited to:
(A) Repairs to the plumbing system,
including repairs to or replacement of
fixtures, providing service to the kitchen and one bathroom;
(B) Repairs to the electrical system
providing service to essential living

areas, including repairs to or replacement of essential fixtures;
(C) Repairs to the heating unit, including repairs to duct work, vents,
and integral fuel and electrical systems. If repair or replacement through
other forms of assistance cannot be accomplished before the start of the season requiring heat, home repairs may
be authorized by the Regional Administrator when an inspection shows that
the unit has been damaged beyond repair, or when the availability of necessary parts or components makes repair impossible;
(D) Repairs to or replacement of essential components of the fuel system
to provide for cooking;
(E) Pumping and cleaning of the septic system, repairs to or replacement of
the tank, drainfield, or repairs to sewer
lines;
(F) Flushing and/or purifying the
water well, and repairs to or replacement of the pump, controls, tank, and
pipes;
(G) Repairs to or replacement of exterior doors, repair of windows and/or
screens needed for health purposes;
(H) Repairs to the roof, when the
damages affect the essential living
area;
(I) Repairs to interior floors, when
severe buckling or deterioration creates a serious safety hazard;
(J) Blocking, leveling, and anchoring
of a mobile home; and reconnecting
and/or resetting mobile home sewer,
water, electrical and fuel lines, and
tanks;
(K) Emergency repairs to private access routes, limited to those repairs
that meet the minimum safety standards and using the most economical
materials available. Such repairs are
provided on a one-time basis when no
alternative access facilities are immediately available and when the repairs
are more cost effective, timely or otherwise suitable than other forms of
temporary housing.
(L) Repairs to the foundation piers,
walls or footings when the damages affect the structural integrity of the essential living area;
(M) Repairs to the stove and refrigerator, when feasible; and

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Federal Emergency Management Agency, DHS
(N) Elimination of other health and
safety hazards or performance of essential repairs which are authorized by
the Regional Administrator as not
available through emergency services
provided by voluntary or community
agencies, and cannot reasonably be expected to be completed on a timely
basis by the occupant without FEMA
assistance.
(iv) Requirements of the Flood Disaster Protection Act. FEMA has determined that flood insurance purchase
requirements need not be imposed as a
condition of receiving assistance under
paragraph (g)(4) of this section. Repair
recipients will normally receive assistance for further repairs from other programs which will impose the purchase
and maintenance requirements. Home
repairs may not be provided in Zones A
or V of a sanctioned or suspended community except for items that are not
covered by flood insurance.
(h) Appropriate form of temporary
housing. The form of temporary housing provided should not exceed occupants’ minimum requirements, taking
into consideration items such as timely availability, cost effectiveness, permanent housing plans, special needs
(handicaps, the location of crops and
livestock, etc.) of the occupants, and
the requirements of FEMA’S floodplain
management regulations at 44 CFR
part 9. An eligible applicant shall receive one form of temporary housing,
except for transient accommodations
or when provision of an additional form
is in the best interest of the Government. An eligible applicant is expected
to accept the first offer of temporary
housing; unwarranted refusal shall result in forfeiture of temporary housing
assistance. Existing rental resources
and home repairs shall be utilized to
the fullest extent practicable prior to
provision of government-owned mobile
homes.
(i) Utility costs and security deposits.
All utility costs shall be the responsibility of the occupant except where
utility services are not metered separately and are therefore a part of the
rental charge. Utility use charges and
deposits shall always be the occupants
responsibility. When authorized by the
Regional Administrator, the Federal
Government may pay security depos-

§ 206.101

its; however, the owner or occupant
shall reimburse the full amount of the
security deposit to the Federal Government before or at the time that the
temporary housing assistance is terminated.
(j) Furniture. An allowance for essential furniture may be provided to occupants when such assistance is required
to occupy the primary or temporary
housing residence. However, loss of furniture does not in and of itself constitute eligibility for temporary housing assistance. Luxury items shall not
be provided.
(k) Duration of assistance—(1) Commencement. Temporary housing assistance may be provided as of the date of
the incident of the major disaster or
emergency as specified in the FEDERAL
REGISTER notice and may continue for
18 months from the date of declaration.
An effective date of assistance shall be
established for each applicant.
(2) Continued assistance. Predisaster
renters normally shall be provided no
more than 1 month of assistance unless
the Regional Administrator determines
that continued assistance is warranted
in accordance with paragraph (k)(3) of
this section. All other occupants of
temporary housing shall be certified eligible for continued assistance in increments not to exceed 3 months. Recertification of eligibility for continued
assistance shall be in accordance with
paragraph (k)(3) of this section, taking
into consideration the occupant’s permanent housing plan. A realistic permanent housing plan shall be established for each occupant requesting additional assistance no later than at the
time of the first recertification.
(3) Criteria for continued assistance. A
temporary housing occupant shall
make every effort to obtain and occupy
permanent housing at the earliest possible time. A temporary housing occupant will be required to provide receipts documenting disaster related
housing costs and shall be eligible for
continued assistance when:
(i) Adequate alternate housing is not
available;
(ii) The permanent housing plan has
not been realized through no fault of
the occupant; or
(iii) In the case of FEMA-owner
leases, the occupant is in compliance

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§ 206.101

44 CFR Ch. I (10–1–11 Edition)

with the terms of the lease/rental
agreement.
(l) Period of assistance. Provided the
occupant is eligible for continued assistance, assistance shall be provided
for a period not to exceed 18 months
from the declaration date.
(m) Appeals. Occupants shall have the
right to appeal a program determination in accordance with the following:
(1) An applicant declared ineligible
for temporary housing assistance, an
applicant whose application has been
cancelled for cause, an applicant whose
application has been refused because of
late filing, and an occupant who received a direct housing payment but is
not eligible for continued assistance in
accordance with paragraph (k) of this
section, shall have the right to dispute
such a determination within 60 calendar days following notification of
such action. The Regional Administrator shall reconsider the original decision within 15 calendar days after its
receipt. The appellant shall be given a
written notice of the disposition of the
dispute. The decision of the Regional
Administrator is final.
(2) An occupant who has been notified that his/her request to purchase a
mobile home or manufactured housing
unit or that a request for an adjustment to the sales price has been denied
shall have the right to dispute such a
determination within 60 business days
after receipt of such notice. The Regional Administrator shall reconsider
the original decision within 15 calendar
days after receipt of the appeal. The
appellant shall receive written notice
of the disposition of the dispute. The
decision of the Regional Administrator
is final.
(3) Termination of assistance provided through a FEMA lease agreement
shall be initiated with a 15-day written
notice after which the occupant shall
be liable for such additional charges as
are deemed appropriate by the Regional Administrator including, but
not limited to, the fair market rental
for the temporary housing residence.
(i) Grounds for termination. Temporary housing assistance may be terminated for reasons including, but not
limited to the following:
(A) Adequate alternate housing is
available to the occupant(s);

(B) The temporary housing assistance was obtained either through misrepresentation or fraud; or
(C) Failure to comply with any term
of the lease/rental agreement.
(ii) Termination procedures. These procedures shall be utilized in all instances except when a State is administering the Temporary Housing Assistance program. States shall be subject
to their own procedures provided they
afford the occupant(s) with due process
safeguards described in paragraph
(m)(2)(v)(B) of this section.
(A) Notification to occupant. Written
notice shall be given by FEMA to the
occupant(s) at least 15 days prior to the
proposed termination of assistance.
This notice shall specify: the reasons
for termination of assistance/occupancy; the date of termination, which
shall be not less than 15 days after receipt of the notice; the administrative
procedure available to the occupant if
they wish to dispute the action; and
the occupant’s liability after the termination date for additional charges.
(B) Filing of appeal. If the occupant
desires to dispute the termination,
upon receipt of the written notice specified in paragraph (m)(2)(i) of this section, he/she shall present an appeal in
writing to the appropriate office in person or by mail within 60 days from the
date of the termination notice. The appeal must be signed by the occupant
and state the reasons why the assistance or occupancy should not be terminated. If a hearing is desired, the appeal should so state.
(C) Response to appeal. If a hearing
pursuant to paragraph (m)(2)(ii) of this
section has not been requested, the occupant has waived the right to a hearing. The appropriate program official
shall deliver or mail a written response
to the occupant within 5 business days
after the receipt of the appeal.
(D) Request for hearing. If the occupant requests a hearing pursuant to
paragraph (m)(2)(ii) of this section,
FEMA shall schedule a hearing date
within 10 business days from the receipt of the appeal, at a time and place
reasonably convenient to the occupant,
who shall be notified promptly thereof
in writing. The notice of hearing shall
specify the procedure governing the
hearing.

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Federal Emergency Management Agency, DHS
(E) Hearing—(1) Hearing officer. The
hearing shall be conducted by a Hearing Officer, who shall be designated by
the Regional Administrator, and who
shall not have been involved with the
decision to terminate the occupant’s
temporary housing assistance, nor be a
subordinate of any individual who was
so involved.
(2) Due process. The occupant shall be
afforded a fair hearing and provided the
basic safeguards of due process, including cross-examination of the responsible official(s), access to the documents on which FEMA is relying, the
right to counsel, the right to present
evidence, and the right to a written decision.
(3) Failure to appear. If an occupant
fails to appear at a hearing, the Hearing Officer may make a determination
that the occupant has waived the right
to a hearing, or may, for good cause
shown, postpone the hearing for no
more than 5 business days.
(4) Proof. At the hearing, the occupant must first attempt to establish
that continued assistance is appropriate; thereafter, FEMA must sustain
the burden of proof in justifying that
termination of assistance is appropriate. The occupant shall have the
right to present evidence and arguments in support of their complaint, to
controvert evidence relied on by
FEMA, and to cross examine all witnesses on whose testimony or information FEMA relies. The hearing shall be
conducted by the Hearing Officer, and
any evidence pertinent to the facts and
issues raised may be received without
regard to its admissibility under rules
of evidence employed in formal judicial
proceedings.
(F) Decision. The decision of the
Hearing Officer shall be based solely
upon applicable Federal and State law,
and FEMA regulations and requirements promulgated thereunder. The
Hearing Officer shall prepare a written
decision setting forth a statement of
findings and conclusions together with
the reasons therefor, concerning all
material issues raised by the complainant within 5 business days after the
hearing. The decision of the Hearing
Officer shall be binding on FEMA,
which shall take all actions necessary
to carry out the decision or refrain

§ 206.101

from any actions prohibited by the decision.
(1) The decision shall include a notice
to the occupant that he/she must vacate the premises within 3 days of receipt of the written notice or on the
termination date stated in the original
notice of termination, as required in
paragraph (m)(2)(i) of this section,
whichever is later. If the occupant does
not quit the premises, appropriate action shall be taken and, if suit is
brought, the occupant may be required
to pay court costs and attorney fees.
(2) If the occupant is required to give
a specific number of days’ notice which
exceeds the number of days in the termination notice, the Regional Administrator may approve the payment of
rent for this period of time if requested
by the occupant.
(n) Disposition of temporary housing
units—(1) Acquisition. The Assistant Administrator for the Disaster Assistance
Directorate may purchase mobile
homes or other manufactured housing
units for those who require temporary
housing. After such temporary housing
is vacated, it shall be returned to one
of the FEMA-operated Strategic Storage Centers for refurbishment and storage until needed in a subsequent major
disaster or emergency. When returning
the unit to a Strategic Storage Center
is not feasible or cost effective, the Assistant Administrator for the Disaster
Assistance Directorate may prescribe a
different method of disposition in accordance with applicable Federal statutes and regulations.
(2) Sales—(i) Eligibility. When adequate alternate housing is not available, the Regional Administrator shall
make available for sale directly to a
temporary housing occupant(s) any
mobile home or manufactured housing
unit acquired by purchase, in accordance with the following:
(A) The unit is to be used as a primary residence;
(B) The purchaser has a site that
complies with local codes and ordinances as well as FEMA’s floodplain
management regulations at 44 CFR
part 9 (in particular § 9.13(e)); and

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§ 206.101

44 CFR Ch. I (10–1–11 Edition)

(C) The purchaser has sufficient
funds to purchase and, if necessary, relocate the unit. The Assistant Administrator for the Disaster Assistance Directorate may approve the sale of a
mobile home or manufactured housing
unit to a temporary housing occupant
when adequate alternate housing is
available but only when such sales are
clearly in the best interest of the Government.
(ii) Sales price. Units shall be sold at
prices that are fair and equitable to the
purchaser and to the Government, as
determined by the Assistant Administrator for the Disaster Assistance Directorate. The purchaser shall pay the
total sales price at the time of sale.
(iii) Adjustment to the sales price.
(A) Adjustments to the sales price
may be provided only when both of the
following conditions are met:
(1) There is a need to purchase the
unit for use as the purchaser’s primary
residence because other adequate alternate housing is unavailable. Adequate
alternate housing must meet the criteria in paragraph (c)(1) of this section,
and may consist of:
(i) Existing housing;
(ii) Additional resources such as disaster-damaged rental accommodations
which can reasonably be expected to be
repaired and become available in the
near future;
(iii) New housing construction or
housing to be made available through
Government subsidy which is included
in the immediate recovery plans for
the area; and
(iv) Residences which can be repaired
by the predisaster owner/occupant
through funds available from insurance, other disaster assistance programs, or through their own resources.
(2) In addition to his/her resources,
the purchaser cannot obtain sufficient
funds through insurance proceeds, disaster loans, grants, and commercial
lending institutions to cover the sales
price.
(B) To determine the adjusted sales
price, the current available financial
resources of the purchaser shall be calculated. If the financial resources are
equal to or greater than the basic sales
price, then no adjustment shall be approved. If the purchaser’s financial resources are less than the basic sales

price, the sales price shall be adjusted
to take into consideration the financial
resources available but shall include
some consideration. Deviations from
this rule may be reviewed on a case-bycase basis by the Assistant Administrator for the Disaster Assistance Directorate.
(C) The Regional Administrator must
approve all adjustments to the sales
price of a mobile home.
(iv) Other conditions of sale.
(A) A unit shall be sold ‘‘as is, where
is’’ except for repairs necessary to protect health or safety, which are to be
completed prior to sale. There shall be
no implied warranties. In addition, the
purchaser must be informed that he/she
may have to bring the unit up to codes
and standards which are applicable at
the proposed site.
(B) In accordance with the Flood Disaster Protection Act of 1973, Public
Law 93–234, as amended, the sale of a
unit for the purpose of meeting the permanent housing need of an individual
or family may not be approved where
the unit would be placed in a designated special flood hazard area which
has been identified by the Administrator for at least 1 year as floodprone
unless the community in which the
unit is to be located after the sale is, at
the time of approval, participating in
the National Flood Insurance Program.
The purchaser must agree to buy and
maintain an adequate flood insurance
policy for as long as the unit is occupied by the purchaser. An adequate policy for purposes of this paragraph shall
mean one which provides coverage for
the basic sales price of the unit. The
purchaser must provide proof of purchase of the initial flood insurance policy.
(3) Transfer. The Assistant Administrator for the Disaster Assistance Directorate may lend temporary housing
units purchased under section 408(a) of
the Act directly to States, other Governmental entities, or voluntary organizations. Such transfers may be made
only in connection with a Presidential
declaration of a major disaster or
emergency. Donations may be made
only when it is in the best interest of
the Government, such as when future
re-use by the Federal Government
would not be economically feasible. As

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Federal Emergency Management Agency, DHS
a condition of such transfers, the Assistant Administrator for the Disaster
Assistance Directorate shall require
that the recipient:
(i) Utilize the units for the purpose of
providing temporary housing for victims of major disasters or emergencies
in accordance with the written agreement; and
(ii) Comply with the current applicable FEMA policies and regulations, including this section; 44 CFR part 9 (especially §§ 9.13 and 9.14), Floodplain
Management and Protection of Wetlands; 44 CFR part 10, Environmental
Considerations. The Assistant Administrator for the Disaster Assistance Directorate may order returned any temporary housing unit made available
under this section which is not used in
accordance with the terms of transfer.
(o) Reports. The Assistant Administrator for the Disaster Assistance Directorate, Regional Administrator, or
Federal Coordinating Officer may require from field operations such reports, plans, and evaluations as they
deem necessary to carry out their responsibilities under the Act and these
regulations.
(p) Federal responsibility. The Federal
financial and operational responsibility for the Temporary Housing Assistance program shall not exceed 18
months from the date of the declaration of the major disaster or emergency. This period may be extended in
writing by the Assistant Administrator
for the Disaster Assistance Directorate, based on a determination that
an extension is necessary and in the
public interest. The Regional Administrator may authorize continued use on
a non-reimbursable basis of Government property, office space, and equipment by a State, other Government entity, or voluntary organization after
the 18 month period.
(q) Applicant notification—(1) General.
All applicants for temporary housing
assistance will be notified regarding
the type and amount of assistance for
which they are qualified. Whenever
practicable, such notification will be
provided within 7 days of their application and will be in writing.
(2) Eligible applicants for temporary
housing assistance will be provided information regarding:

§ 206.101

(i) All forms of housing assistance
available;
(ii) The criteria which must be met
to qualify for each type of assistance;
(iii) Any limitations which apply to
each type of assistance; and
(iv) The address and telephone number of offices responsible for responding
to appeals and requests for changes in
the type or amount of assistance provided.
(r) Location. In providing temporary
housing assistance, consideration will
be given to the location of:
(1) The eligible applicants’ home and
place of business;
(2) Schools which the eligible applicant or members of the household attend; and
(3) Agricultural activities which provide 25 percent or more of the eligible
applicants’ annual income.
(s) NonFederal administration of temporary housing assistance. A State may
request authority to administer all or
part of the temporary housing assistance program in the Governor’s request
for a declaration or in a subsequent
written request to the Regional Administrator from the Governor or his/her
authorized representative. The Associate Director shall approve such a request based on the Regional Administrator’s recommendation and based on
a finding that State administration is
both in the interest of the Federal Government and those needing temporary
housing assistance. The State must
have an approved plan prior to the incident and an approved operational
annex within 3 days of the declaration
in order to administer the program.
When administering the program the
State must comply with FEMA program regulations and policies.
(1) State temporary housing assistance
plan. (i) States which have an interest
in administering the Temporary Housing Assistance program shall be required to develop a plan that includes,
at a minimum, the items listed below:
(A) Assignment of temporary housing
assistance responsibilities to State
and/or local officials and agencies;
(B) A description of the program, its
functions, goals and objectives of the
program, and proposed organization
and staffing plan;
(C) Procedures for:

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§ 206.101

44 CFR Ch. I (10–1–11 Edition)

(1) Accepting applications at Disaster
Application Centers and subsequently
at a State established disaster housing
office;
(2) Determining eligibility utilizing
FEMA’s habitability contract and notifying applicants of the determination;
(3) Preventing duplication of benefits
between temporary housing assistance
and assistance from other means, as
well as a recoupment procedure when
duplication occurs;
(4) Providing the various types of assistance (home repairs, existing rental
resources, transient accommodations,
and mobile homes);
(5) Providing furniture assistance;
(6) Recertifying occupants for continued assistance;
(7) Terminating assistance;
(8) Contracting for services and/or
supplies;
(9) Quality control;
(10) Maintaining a management information system;
(11) Financial management;
(12) Public information;
(13) Processing appeals; and
(14) Arranging for a program review.
(ii) The Governor or his/her designee
may request the Regional Administrator to provide technical assistance
in the preparation of an administrative
plan.
(iii) The Governor or designee shall
submit the plan to the Regional Administrator for approval. Plans shall be
revised, as necessary, and shall be reviewed at least annually by the Regional Administrator.
(2) Operational annex. Prior to the
State administering the program, the
state must submit an operational
annex which tailors the approved State
plan to the particular disaster or emergency. The annex must be reviewed and
approved by the Regional Administrator within 3 days of the declaration
or the State shall not be permitted to
administer the program. The operational annex shall include but not be
limited to:
(i) Organization and staffing specific
to the major disaster or emergency;
(ii) Pertinent goals and management
objectives;
(iii) A proposed budget; and
(iv) A narrative which describes
methods for orderly tracking and proc-

essing of applications; assuring timely
delivery of assistance; identification of
potential problem areas; and any deviations from the approved plan. The Regional Administrator may require additional annexes as necessary for subsequent phases of the operation.
(3) Evaluation of capability. State and
local government assumption of the
temporary housing assistance program
for a particular disaster shall be approved by the Assistant Administrator
for the Disaster Assistance Directorate
based on an evaluation of the capabilities and commitment of the entity by
the Regional Administrator. At a minimum, the evaluation shall include a
review of the following:
(i) The State temporary housing assistance plan which has been approved
by the Regional Administrator prior to
the incident, and the specific operational annex which has been approved
in accordance with paragraph (s)(2) of
this section.
(ii) Past performance in administration of temporary housing assistance
or other similar operations;
(iii) Management and staff capabilities; and
(iv) Demonstrated understanding of
the tasks to be performed.
(4) Grant application. Approval of
funding shall be obtained through submission of a project application by the
State or local government through the
Governor’s Authorized Representative.
The State shall maintain adequate documentation according to the requirements of 44 CFR part 13, Uniform Administrative Requirements for Grants
and Cooperative Agreements to State
and Local Governments, to enable
analysis of the program. Final reimbursement to the State, or final debt
collection, shall be based on an examination of the voucher filed by the
State.
(5) Authorized costs. All expenditures
associated with administering the program are authorized if in compliance
with 44 CFR 13.22, Allowable Costs, and
the associated OMB Circular A–87, Cost
Principles for State and Local Governments. Examples of program costs allowable under the Temporary Housing
Assistance program include home repairs, costs associated with rental payments, reimbursements for temporary

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Federal Emergency Management Agency, DHS
housing including transient accommodations and commercial site rental,
mobile home installation and maintenance, mobile home private site development, cost of supplemental assistance, mortgage and rental payments,
other necessary costs, when approved
by the Assistant Administrator for the
Disaster Assistance Directorate. All
contracts require the review and approval of the Regional Administrator
prior to award, in order to be considered as an authorized expenditure.
(6) Federal monitoring and oversight.
The Regional Administrator shall monitor State-administered activities since
he/she remains responsible for the overall delivery of temporary housing assistance. In addition, policy guidance
and interpretations to meet specific
needs of a disaster shall be provided
through the oversight function.
(7) Technical assistance. The Regional
Administrator shall provide technical
assistance as necessary to support
State-administered operations through
training, procedural issuances, and by
providing experienced personnel to assist the State and local staff.
(8) Operational resources. The Regional Administrator shall make available for use in State or locally administered temporary housing programs
Federal stand-by contracts, memoranda of understanding with Government and voluntary agencies, and Federal property, such as governmentowned mobile homes and travel trailers.
(9) Program reviews and audits. The
State shall conduct program review of
each operation. All operations are subject to Federal audit.
[55 FR 2296, Jan. 23, 1990, as amended at 61
FR 7224, Feb. 27, 1996; 64 FR 46853, Aug. 27,
1999; 67 FR 61460, Sept. 30, 2002; 74 FR 15347,
Apr. 3, 2009]

§§ 206.102–206.109

[Reserved]

§ 206.110 Federal assistance to individuals and households.
(a) Purpose. This section implements
the policy and procedures set forth in
section 408 of the Robert T. Stafford
Disaster Relief and Emergency Assistance Act, 42 U.S.C. 5174, as amended by
the Disaster Mitigation Act of 2000.
This program provides financial assist-

§ 206.110

ance and, if necessary, direct assistance to eligible individuals and households who, as a direct result of a major
disaster or emergency, have uninsured
or under-insured, necessary expenses
and serious needs and are unable to
meet such expenses or needs through
other means.
(b) Maximum amount of assistance. No
individual or household will receive financial assistance greater than $25,000
under this subpart with respect to a
single major disaster or emergency.
FEMA will adjust the $25,000 limit annually to reflect changes in the Consumer Price Index (CPI) for All Urban
Consumers that the Department of
Labor publishes.
(c) Multiple types of assistance. One or
more types of housing assistance may
be made available under this section to
meet the needs of individuals and
households in the particular disaster
situation. FEMA shall determine the
appropriate types of housing assistance
to be provided under this section based
on considerations of cost effectiveness,
convenience to the individuals and
households and the suitability and
availability of the types of assistance.
An applicant is expected to accept the
first offer of housing assistance; unwarranted refusal of assistance may result
in the forfeiture of future housing assistance. Temporary housing and repair assistance shall be utilized to the
fullest extent practicable before other
types of housing assistance.
(d) Date of eligibility. Eligibility for
Federal assistance under this subpart
will begin on the date of the incident
that results in a presidential declaration that a major disaster or emergency exists, except that reasonable
lodging expenses that are incurred in
anticipation of and immediately preceding such event may be eligible for
Federal assistance under this chapter.
(e) Period of assistance. FEMA may
provide assistance under this subpart
for a period not to exceed 18 months
from the date of declaration. The Assistant Administrator for the Disaster
Assistance Directorate may extend this
period if he/she determines that due to
extraordinary circumstances an extension would be in the public interest.
(f) Assistance not counted as income.
Assistance under this subpart is not to

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§ 206.110

44 CFR Ch. I (10–1–11 Edition)

be counted as income or a resource in
the determination of eligibility for
welfare, income assistance or incometested benefit programs that the Federal Government funds.
(g) Exemption from garnishment. All
assistance provided under this subpart
is exempt from garnishment, seizure,
encumbrance, levy, execution, pledge,
attachment, release or waiver. Recipients of rights under this provision may
not reassign or transfer the rights.
These exemptions do not apply to
FEMA recovering assistance fraudulently obtained or misapplied.
(h) Duplication of benefits. In accordance with the requirements of section
312 of the Stafford Act, 42 U.S.C. 5155,
FEMA will not provide assistance
under this subpart when any other
source has already provided such assistance or when such assistance is
available from any other source. In the
instance of insured applicants, we will
provide assistance under this subpart
only when:
(1) Payment of the applicable benefits are significantly delayed;
(2) Applicable benefits are exhausted;
(3) Applicable benefits are insufficient to cover the housing or other
needs; or
(4) Housing is not available on the
private market.
(i) Cost sharing. (1) Except as provided
in paragraph (i)(2) of this section, the
Federal share of eligible costs paid
under this subpart shall be 100 percent.
(2) Federal and State cost shares for
‘‘Other Needs’’ assistance under subsections 408 (e) and (f) of the Stafford
Act will be as follows;
(i) The Federal share shall be 75 percent; and
(ii) The non-federal share shall be
paid from funds made available by the
State. If the State does not provide the
non-Federal share to FEMA before
FEMA begins to provide assistance to
individuals and households under subsection 408(e) of the Stafford Act,
FEMA will still process applications.
The State will then be obliged to reimburse FEMA for the non-Federal cost
share of such assistance on a monthly
basis. If the State does not provide
such reimbursement on a monthly
basis, then FEMA will issue a Bill for
Collection to the State on a monthly

basis for the duration of the program.
FEMA will charge interest, penalties,
and administrative fees on delinquent
Bills for Collection in accordance with
the Debt Collection Improvement Act.
Cost shared funds, interest, penalties
and fees owed to FEMA through delinquent Bills for Collections may be offset from other FEMA disaster assistance programs (i.e. Public Assistance)
from which the State is receiving, or
future grant awards from FEMA or
other Federal Agencies. Debt Collection procedures will be followed as outlined in 44 CFR part 11.
(j) Application of the Privacy Act. (1)
All provisions of the Privacy Act of
1974, 5 U.S.C. 552a, apply to this subpart. FEMA may not disclose an applicant’s record except:
(i) In response to a release signed by
the applicant that specifies the purpose
for the release, to whom the release is
to be made, and that the applicant authorizes the release;
(ii) In accordance with one of the
published routine uses in our system of
records; or
(iii) As provided in paragraph (j)(2) of
this section.
(2) Under section 408(f)(2) of the Stafford Act, 42 U.S.C. 5174(f)(2), FEMA
must share applicant information with
States in order for the States to make
available any additional State and
local disaster assistance to individuals
and households.
(i) States receiving applicant information under this paragraph must protect such information in the same
manner that the Privacy Act requires
FEMA to protect it.
(ii) States receiving such applicant
information shall not further disclose
the information to other entities, and
shall not use it for purposes other than
providing additional State or local disaster assistance to individuals and
households.
(k) Flood Disaster Protection Act requirement. (1) The Flood Disaster Protection Act of 1973, Public Law 93–234,
as amended (42 U.S.C. 4106), imposes
certain restrictions on federal financial
assistance for acquisition and construction purposes. For the purpose of
this paragraph, financial assistance for
acquisition or construction purposes
means assistance to an individual or

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Federal Emergency Management Agency, DHS
household to buy, receive, build, repair
or improve insurable portions of a
home and/or to purchase or repair insurable contents. For a discussion of
what elements of a home and contents
are insurable, See 44 CFR part 61, Insurance Coverage and Rates.
(2) Individuals or households that are
located in a special flood hazard area
may not receive Federal Assistance for
National Flood Insurance Program
(NFIP)—insurable real and/or personal
property, damaged by a flood, unless
the community in which the property
is located is participating in the NFIP
(See 44 CFR part 59.1), or the exception
in 42 U.S.C. 4105(d) applies. However, if
the community in which the damaged
property is located qualifies for and enters the NFIP during the six-month period following the declaration, the Governor’s Authorized Representative may
request a time extension for FEMA (See
§ 206.112) to accept registrations and to
process assistance applications in that
community.
(3) Flood insurance purchase requirement: (i) As a condition of the assistance and in order to receive any Federal assistance for future flood damage
to any insurable property, individuals
and households named by FEMA as eligible recipients under section 408 of the
Stafford Act who receive assistance,
due to flood damages, for acquisition or
construction purposes under this subpart must buy and maintain flood insurance, as required in 42 U.S.C. 4012a,
for at least the assistance amount.
This applies only to real and personal
property that is in or will be in a designated Special Flood Hazard Area and
that can be insured under the National
Flood Insurance Program.
(A) If the applicant is a homeowner,
flood insurance coverage must be
maintained at the address of the flooddamaged property for as long as the address exists. The flood insurance requirement is reassigned to any subsequent owner of the flood-damaged address.
(B) If the applicant is a renter, flood
insurance coverage must be maintained
on the contents for as long as the
renter resides at the flood-damaged
rental unit. The restriction is lifted
once the renter moves from the rental
unit.

§ 206.111

(C) When financial assistance is used
to purchase a dwelling, flood insurance
coverage must be maintained on the
dwelling for as long as the dwelling exists and is located in a designated Special Flood Hazard Area. The flood insurance requirement is reassigned to
any subsequent owner of the dwelling.
(ii) FEMA may not provide financial
assistance for acquisition or construction purposes to individuals or households who fail to buy and maintain
flood insurance required under paragraph (k)(3)(i) of this section or required by the Small Business Administration.
(l) Environmental requirements. Assistance provided under this subpart must
comply with the National Environmental Policy Act (NEPA) and other
environmental laws and Executive Orders, consistent with 44 CFR part 10.
(m) Historic preservation. Assistance
provided under this subpart generally
does not have the potential to affect
historic properties and thus is exempted from review in accordance with section 106 of the National Historic Preservation Act, with the exception of
ground disturbing activities and construction related to §§ 206.117(b)(1)(ii)
(Temporary housing), 206.117(b)(3) (Replacement housing), and 206.117(b)(4)
(Permanent housing construction).
[67 FR 61452, Sept. 30, 2002; 67 FR 62896, Oct.
9, 2002]

§ 206.111

Definitions.

Adequate, alternate housing means
housing that accommodates the needs
of the occupants; is within the normal
commuting patterns of the area or is
within reasonable commuting distance
of work, school, or agricultural activities that provide over 50 percent of the
household income; and is within the financial ability of the occupant.
Alternative housing resources means
any housing that is available or can
quickly be made available in lieu of
permanent housing construction and is
cost-effective when compared to permanent construction costs. Some examples are rental resources, mobile
homes and travel trailers.
Applicant means an individual or
household who has applied for assistance under this subpart.

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§ 206.111

44 CFR Ch. I (10–1–11 Edition)

Assistance from other means includes
monetary or in-kind contributions
from voluntary or charitable organizations, insurance, other governmental
programs, or from any sources other
than those of the applicant.
Dependent means someone who is
normally claimed as such on the Federal tax return of another, according to
the Internal Revenue Code. It may also
mean the minor children of a couple
not living together, where the children
live in the affected residence with the
parent or guardian who does not actually claim them on the tax return.
Displaced applicant means one whose
primary residence is uninhabitable, inaccessible, made unavailable by the
landlord (to meet their disaster housing need) or not functional as a direct
result of the disaster and has no other
housing available in the area, i.e., a
secondary home or vacation home.
Effective date of assistance means the
date that the applicant was determined
eligible for assistance.
Eligible hazard mitigation measures are
home improvements that an applicant
can accomplish in order to reduce or
prevent future disaster damages to essential components of the home.
Fair market rent means housing market-wide estimates of rents that provide opportunities to rent standard
quality housing throughout the geographic area in which rental housing
units are in competition. The fair market rent rates applied are those identified by the Department of Housing and
Urban Development as being adequate
for existing rental housing in a particular area.
Financial ability means the applicant’s capability to pay housing costs.
If the household income has not
changed subsequent to or as a result of
the disaster then the determination is
based upon the amount paid for housing before the disaster. If the household income is reduced as a result of
the disaster then the applicant will be
deemed capable of paying 30 percent of
gross post disaster income for housing.
When computing financial ability, extreme
or
unusual
financial
circumstances may be considered by the
Regional Administrator.
Financial assistance means cash that
may be provided to eligible individuals

and households, usually in the form of
a check or electronic funds transfer.
Functional means an item or home
capable of being used for its intended
purpose.
Household means all persons (adults
and children) who lived in the pre-disaster residence who request assistance
under this subpart, as well as any persons, such as infants, spouse, or parttime residents who were not present at
the time of the disaster, but who are
expected to return during the assistance period.
Housing costs means rent and mortgage payments, including principal, interest, real estate taxes, real property
insurance, and utility costs.
Inaccessible means as a result of the
incident, the applicant cannot reasonably be expected to gain entry to his or
her pre-disaster residence due to the
disruption, or destruction, of access
routes or other impediments to access,
or restrictions placed on movement by
a responsible official due to continued
health, safety or security problems.
In-kind contributions mean something
other than monetary assistance, such
as goods, commodities or services.
Lodging expenses means expenses for
reasonable short-term accommodations
that individuals or households incur in
the immediate aftermath of a disaster.
Lodging expenses may include but are
not limited to the cost of brief hotel
stays.
Manufactured housing sites means
those sites used for the placement of
government or privately owned mobile
homes, travel trailers, and other manufactured housing units, including:
(1) Commercial site, a site customarily
leased for a fee, which is fully equipped
to accommodate a housing unit;
(2) Private site, a site that the applicant provides or obtains at no cost to
the Federal Government, complete
with utilities; and
(3) Group site, a site provided by the
State or local government that accommodates two or more units and is complete with utilities.
Necessary expense means the cost associated with acquiring an item or
items, obtaining a service, or paying
for any other activity that meets a serious need.

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Federal Emergency Management Agency, DHS
Occupant means a resident of a housing unit.
Owner-occupied means that the residence is occupied by:
(1) The legal owner;
(2) A person who does not hold formal
title to the residence and pays no rent,
but is responsible for the payment of
taxes or maintenance of the residence;
or
(3) A person who has lifetime occupancy rights with formal title vested in
another.
Permanent housing plan means a realistic plan that, within a reasonable
timeframe, puts the disaster victim
back into permanent housing that is
similar to the victim’s pre-disaster
housing situation. A reasonable timeframe includes sufficient time for securing funds, locating a permanent
dwelling, and moving into the dwelling.
Primary residence means the dwelling
where the applicant normally lives,
during the major portion of the calendar year; or the dwelling that is required because of proximity to employment, including agricultural activities,
that provide 50 percent of the household’s income.
Reasonable commuting distance means
a distance that does not place undue
hardship on an applicant. It also takes
into consideration the traveling time
involved due to road conditions, e.g.,
mountainous regions or bridges out
and the normal commuting patterns of
the area.
Safe means secure from disaster-related hazards or threats to occupants.
Sanitary means free of disaster-related health hazards.
Serious need means the requirement
for an item, or service, that is essential
to an applicant’s ability to prevent,
mitigate, or overcome a disaster-related hardship, injury or adverse condition.
Significantly delayed means the process has taken more than 30 days.
Uninhabitable means the dwelling is
not safe, sanitary or fit to occupy.
We, our, and us mean FEMA.
[67 FR 61452, Sept. 30, 2002; 67 FR 62896, Oct.
9, 2002]

§ 206.112 Registration period.
(a) Initial period. The standard FEMA
registration period is 60 days following

§ 206.113

the date that the President declares an
incident a major disaster or an emergency.
(b) Extension of the registration period.
The regional administrator or his/her
designee may extend the registration
period when the State requests more
time to collect registrations from the
affected population. The Regional Administrator or his/her designee may
also extend the standard registration
period when necessary to establish the
same registration deadline for contiguous counties or States.
(c) Late registrations. After the standard or extended registration period
ends, FEMA will accept late registrations for an additional 60 days. We will
process late registrations for those registrants who provide suitable documentation to support and justify the
reason for the delay in their registration.
[67 FR 61452, Sept. 30, 2002; 67 FR 62896, Oct.
9, 2002]

§ 206.113

Eligibility factors.

(a) Conditions of eligibility. In general,
FEMA may provide assistance to individuals and households who qualify for
such assistance under section 408 of the
Stafford Act and this subpart. FEMA
may only provide assistance:
(1) When the individual or household
has incurred a disaster-related necessary expense or serious need in the
state in which the disaster has been declared, without regard to their residency in that state;
(2) In a situation where the applicant
has insurance, when the individual or
household files a claim with their insurance provider for all potentially applicable types of insurance coverage
and the claim is denied;
(3) In a situation where the applicant
has insurance, when the insured individual or household’s insurance proceeds have been significantly delayed
through no fault of his, her or their
own, and the applicant has agreed to
repay the assistance to FEMA or the
State from insurance proceeds that he,
she or they receive later;
(4) In a situation where the applicant
has insurance, when the insured individual or household’s insurance proceeds are less than the maximum

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§ 206.114

44 CFR Ch. I (10–1–11 Edition)

amount of assistance FEMA can authorize and the proceeds are insufficient to cover the necessary expenses
or serious needs;
(5) In a situation where the applicant
has insurance, when housing is not
available on the private market;
(6) In a situation where the applicant
has insurance, when the insured individual or household has accepted all assistance from other sources for which
he, she, or they are eligible, including
insurance, when the insured individual
or household’s insurance proceeds and
all other assistance are less than the
maximum amount of assistance FEMA
can authorize and the proceeds are insufficient to cover the necessary expense or serious needs;
(7) When the applicant agrees to refund to FEMA or the State any portion
of the assistance that the applicant receives or is eligible to receive as assistance from another source;
(8) With respect to housing assistance, if the primary residence has been
destroyed, is uninhabitable, or is inaccessible; and
(9) With respect to housing assistance, if a renter’s primary residence is
no longer available as a result of the
disaster.
(b) Conditions of ineligibility. We may
not provide assistance under this subpart:
(1) For housing assistance, to individuals or households who are displaced
from other than their pre-disaster primary residence;
(2) For housing assistance, to individuals or households who have adequate
rent-free housing accommodations;
(3) For housing assistance, to individuals or households who own a secondary or vacation residence within
reasonable commuting distance to the
disaster area, or who own available
rental property that meets their temporary housing needs;
(4) For housing assistance, to individuals or households who evacuated the
residence in response to official warnings solely as a precautionary measure
and who are able to return to the residence immediately after the incident;
(5) For housing assistance, for improvements or additions to the pre-disaster condition of property, except
those required to comply with local

and State ordinances or eligible mitigation measures;
(6) To individuals or households who
have adequate insurance coverage and
where there is no indication that insurance proceeds will be significantly delayed, or who have refused assistance
from insurance providers;
(7) To individuals or households
whose damaged primary residence is
located in a designated special flood
hazard area, and in a community that
is not participating in the National
Flood Insurance Program, except that
financial assistance may be provided to
rent alternate housing and for medical,
dental, funeral expenses and uninsurable items to such individuals or
households. However, if the community
in which the damaged property is located qualifies for and enters the NFIP
during the six-month period following
the declaration then the individual or
household may be eligible;
(8) To individuals or households who
did not fulfill the condition to purchase
and maintain flood insurance as a requirement of receiving previous Federal disaster assistance;
(9) For business losses, including
farm businesses and self-employment;
or
(10) For any items not otherwise authorized by this section.
[67 FR 61452, Sept. 30, 2002; 67 FR 62896, Oct.
9, 2002]

§ 206.114 Criteria for continued assistance.
(a) FEMA expects all recipients of assistance under this subpart to obtain
and occupy permanent housing at the
earliest possible time. FEMA may provide continued housing assistance during the period of assistance, but not to
exceed the maximum amount of assistance for the program, based on need,
and generally only when adequate, alternate housing is not available or
when the permanent housing plan has
not been fulfilled through no fault of
the applicant.
(b) Additional criteria for continued assistance. (1) All applicants requesting
continued rent assistance must establish a realistic permanent housing plan
no later than the first certification for
continued assistance. Applicants will
be required to provided documentation

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Federal Emergency Management Agency, DHS
showing that they are making efforts
to obtain permanent housing.
(2) Applicants requesting continued
rent assistance must submit rent receipts to show that they have exhausted the FEMA rent funds, and provide documentation identifying the
continuing need.
(3) FEMA generally expects that predisaster renters will use their initial
rental assistance to obtain permanent
housing. However, we may certify
them, during the period of assistance,
for continued rent assistance when adequate, alternate housing is not available, or when they have not realized a
permanent housing plan through no
fault of their own.
(4) FEMA may certify pre-disaster
owners for continued rent assistance,
during the period of assistance, when
adequate, alternate housing is not
available, or when they have not realized a permanent housing plan through
no fault of their own.
(5) Individuals or households requesting additional repair assistance will be
required to submit information and/or
documentation identifying the continuing need.
(6) Individuals or households requesting additional assistance for personal
property, transportation, medical, dental, funeral, moving and storage, or
other necessary expenses and serious
needs will be required to submit information and/or documentation identifying the continuing need.
[67 FR 61452, Sept. 30, 2002; 67 FR 62896, Oct.
9, 2002]

§ 206.115

Appeals.

(a) Under the provisions of section
423 of the Stafford Act, applicants for
assistance under this subpart may appeal any determination of eligibility
for assistance made under this subpart.
Applicants must file their appeal within 60 days after the date that we notify
the applicant of the award or denial of
assistance. Applicants may appeal the
following:
(1) Eligibility for assistance, including recoupment;
(2) Amount or type of assistance;
(3) Cancellation of an application;
(4) The rejection of a late application;

§ 206.115

(5) The denial of continued assistance
under § 206.114, Criteria for continued
assistance;
(6) FEMA’s intent to collect rent
from occupants of a housing unit that
FEMA provides;
(7) Termination of direct housing assistance;
(8) Denial of a request to purchase a
FEMA-provided housing unit at the
termination of eligibility;
(9) The sales price of a FEMA-provided housing unit they want to purchase; or
(10) Any other eligibility-related decision.
(b) Appeals must be in writing and
explain the reason(s) for the appeal.
The applicant or person who the applicant authorizes to act on his or her behalf must sign the appeal. If someone
other than the applicant files the appeal, then the applicant must also submit a signed statement giving that person authority to represent him, her or
them.
(c) Applicants must appeal to the Regional Administrator or his/her designee for decisions made under this
subpart, unless FEMA has made a
grant to the State to provide assistance to individuals and households
under § 206.120(a), State administration
of other needs assistance; then the applicant must appeal to the State.
(d) An applicant may ask for a copy
of information in his or her file by
writing to FEMA or the State as appropriate. If someone other than the applicant is submitting the request, then
the applicant must also submit a
signed statement giving that person
authority to represent him or her.
(e) The appropriate FEMA or State
program official will notify the applicant in writing of the receipt of the appeal.
(f) The Regional Administrator or
his/her designee or appropriate State
official will review the original decision after receiving the appeal. FEMA
or the State, as appropriate, will give
the appellant a written notice of the
disposition of the appeal within 90 days
of the receiving the appeal. The decision of the appellate authority is final.
[67 FR 61452, Sept. 30, 2002; 67 FR 62896, Oct.
9, 2002]

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§ 206.116
§ 206.116

44 CFR Ch. I (10–1–11 Edition)
Recovery of funds.

(a) The applicant must agree to repay
to FEMA (when funds are provided by
FEMA) and/or the State (when funds
are provided by the State) from insurance proceeds or recoveries from any
other source an amount equivalent to
the value of the assistance provided. In
no event must the amount repaid to
FEMA and/or the State exceed the
amount that the applicant recovers
from insurance or any other source.
(b) An applicant must return funds to
FEMA and/or the State (when funds are
provided by the State) when FEMA
and/or the State determines that the
assistance was provided erroneously,
that the applicant spent the funds inappropriately, or that the applicant obtained the assistance through fraudulent means.
[67 FR 61452, Sept. 30, 2002; 67 FR 62896, Oct.
9, 2002]

§ 206.117

Housing assistance.

(a) Purpose. FEMA may provide financial or direct assistance under this
section to respond to the disaster-related housing needs of individuals and
households.
(b) Types of housing assistance—(1)
Temporary housing assistance—(i) Financial assistance. Eligible individuals and
households may receive financial assistance to rent alternate housing resources, existing rental units, manufactured housing, recreational vehicles,
or other readily fabricated dwellings.
FEMA may also provide assistance for
the reasonable cost of any transportation, utility hookups, or installation
of a manufactured housing unit or recreational vehicle to be used for housing. This includes reimbursement for
reasonable short-term lodging expenses
that individuals or households incur in
the immediate aftermath of a disaster.
(A) FEMA will include all members
of a pre-disaster household in a single
registration and will provide assistance
for one temporary housing residence,
unless the Regional Administrator or
his/her designee determines that the
size or nature of the household requires
that we provide assistance for more
than one residence.
(B) FEMA will base the rental assistance on the Department of Housing and

Urban Development’s current fair market rates for existing rental units.
FEMA will further base the applicable
rate on the household’s bedroom requirement and the location of the rental unit.
(C) All utility costs and utility security deposits are the responsibility of
the occupant except where the utility
does not meter utility services separately and utility services are a part of
the rental charge.
(D) The occupant is responsible for
all housing security deposits. In extraordinary circumstances, the Regional Administrator or his/her designee may authorize the payment of security deposits; however, the owner or
occupant must reimburse the full
amount of the security deposit to the
Federal Government before or at the
time that the temporary housing assistance ends.
(ii) Direct assistance. (A) FEMA may
provide direct assistance in the form of
purchased or leased temporary housing
units directly to individuals or households who lack available housing resources and would be unable to make
use of the assistance provided under
paragraph (b)(1)(i) of this section.
(B) FEMA will include all members
of a pre-disaster household in a single
application and will provide assistance
for one temporary housing residence,
unless the Regional Administrator or
his/her designee determines that the
size or nature of the household requires
that we provide assistance for more
than one residence.
(C) Any site upon which a FEMA-provided housing unit is placed must comply with applicable State and local
codes and ordinances, as well as 44 CFR
part 9, Floodplain Management and
Protection of Wetlands, and 44 CFR
part 10, Environmental Considerations,
and all other applicable environmental
laws and Executive Orders.
(D) All utility costs and utility security deposits are the responsibility of
the occupant except where the utility
does not meter utility services separately and utility services are a part of
the rental charge.
(E) FEMA-provided or funded housing
units may be placed in the following locations:

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Federal Emergency Management Agency, DHS
(1) A commercial site that is complete with utilities; when the Regional
Administrator or his/her designee determines that the upgrading of commercial sites, or installation of utilities on such sites, will provide more
cost-effective, timely and suitable temporary housing than other types of resources, then Federal assistance may
be authorized for such actions.
(2) A private site that an applicant
provides, complete with utilities; when
the Regional Administrator or his/her
designee determines that the cost of installation or repairs of essential utilities on private sites will provide more
cost effective, timely, and suitable
temporary housing than other types of
resources, then Federal assistance may
be authorized for such actions.
(3) A group site that the State or
local government provides that accommodates two or more units and is complete with utilities; when the Regional
Administrator or his/her designee determines that the cost of developing a
group site provided by the State or
local government, to include installation or repairs of essential utilities on
the sites, will provide more cost effective, timely, and suitable temporary
housing than other types of resources,
then Federal assistance may be authorized for such actions.
(4) A group site provided by FEMA, if
the Regional Administrator or his/her
designee determines that such a site
would be more economical or accessible than one that the State or local
government provides.
(F) After the end of the 18-month period of assistance, FEMA may begin to
charge up to the fair market rent rate
for each temporary housing unit provided. We will base the rent charged on
the number of bedrooms occupied and
needed by the household. When establishing the amount of rent, FEMA will
take into account the financial ability
of the household.
(G) We may terminate direct assistance for reasons that include, but are
not limited to, the following:
(1) The period of assistance expired
under § 206.110(e) and has not been extended;
(2) Adequate alternate housing is
available to the occupant(s);

§ 206.117

(3) The occupant(s) obtained housing
assistance through either misrepresentation or fraud;
(4) The occupant(s) failed to comply
with any term of the lease/rental
agreement or other rules of the site
where the unit is located.
(5) The occupant(s) does not provide
evidence documenting that they are
working towards a permanent housing
plan.
(H) FEMA will provide a 15 day written notice when initiating the termination of direct assistance that we provide under our lease agreements. This
notice will specify the reasons for termination of assistance and occupancy,
the date of termination, the procedure
for appealing the determination, and
the occupant’s liability for such additional charges as the Regional Administrator or his/her designee deems appropriate after the termination date,
including fair market rent for the unit.
(I) Duplication of benefits may occur
when an applicant has additional living
expense insurance benefits to cover the
cost of renting alternate housing. In
these instances, FEMA may provide a
temporary housing unit if adequate alternate housing is not available, or if
doing so is in the best interest of the
household and the government. We will
establish fair market rent, not to exceed insurance benefits available.
(2) Repairs. (i) FEMA may provide financial assistance for the repairs of uninsured disaster-related damages to an
owner’s primary residence. The funds
are to help return owner-occupied primary residences to a safe and sanitary
living or functioning condition. Repairs may include utilities and residential infrastructure (such as private access routes, privately owned bridge,
wells and/or septic systems) damaged
by a major disaster.
(ii) The type of repair FEMA authorizes may vary depending upon the nature of the disaster. We may authorize
repair of items where feasible or replacement when necessary to insure
the safety or health of the occupant
and to make the residence functional.
(iii) FEMA may also provide assistance for eligible hazard mitigation
measures that reduce the likelihood of
future damage to damaged residences,
utilities or infrastructure.

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§ 206.118

44 CFR Ch. I (10–1–11 Edition)

(iv) Eligible individuals or households may receive up to $5,000 under
this paragraph, adjusted annually to
reflect changes in the CPI, to repair
damages to their primary residence
without first having to show that the
assistance can be met through other
means, except insurance proceeds.
(v) The individual or household is responsible for obtaining all local permits or inspections that applicable
State or local building codes may require.
(3) Replacement. FEMA may provide
financial assistance under this paragraph to replace the primary residence
of an owner-occupied dwelling if the
dwelling was damaged by the disaster
and there was at least $10,000 of damage (as adjusted annually to reflect
changes in the CPI). The applicant may
either replace the dwelling in its entirety for $10,000 (as adjusted annually
to reflect changes in the CPI) or less,
or may use the assistance toward the
cost of acquiring a new permanent residence that is greater in cost than
$10,000 (as adjusted annually to reflect
changes in the CPI). All replacement
assistance awards must be individually
approved by the Assistant Administrator for the Disaster Assistance Directorate. The Assistant Administrator
for the Disaster Assistance Directorate
may approve replacement assistance
for applicants whose damages are less
than $10,000 in extraordinary circumstances where replacement assistance is more appropriate than other
forms of housing assistance.
(4) Permanent housing construction.
FEMA may provide financial or direct
assistance to applicants for the purpose
of constructing permanent housing in
insular areas outside the continental
United States and in other remote locations when alternative housing resources are not available and the types
of financial or direct temporary housing assistance described at paragraph
(b)(1) of this section are unavailable,
infeasible, or not cost-effective.
(c) Eligible costs. (1) Repairs to the
primary residence or replacement of
items must be disaster-related and
must be of average quality, size, and
capacity, taking into consideration the
needs of the occupant. Repairs to the
primary residence are limited to res-

toration of the dwelling to a safe and
sanitary living or functioning condition and may include:
(i) Repair or replacement of the
structural components, including foundation, exterior walls, and roof;
(ii) Repair or replacement of the
structure’s windows and doors;
(iii) Repair or replacement of the
structure’s Heating, Ventilation and
Air Conditioning System;
(iv) Repair or replacement of the
structure’s utilities, including electrical, plumbing, gas, water and sewage
systems;
(v) Repair or replacement of the
structure’s interior, including floors,
walls, ceilings, doors and cabinetry;
(vi) Repair to the structure’s access
and egress, including privately owned
access road and privately owned bridge;
(vii) Blocking, leveling, and anchoring of a mobile home, and reconnecting
or resetting mobile home sewer, water,
electrical and fuel lines and tanks; and
(viii) Items or services determined to
be eligible hazard mitigation measures.
(2) Replacement assistance, will be
based on the verified disaster-related
level of damage to the dwelling, or the
statutory maximum, whichever is less.
(3) Permanent housing construction,
in general, must be consistent with
current minimal local building codes
and standards where they exist, or
minimal acceptable construction industry standards in the area, including
reasonable hazard mitigation measures, and federal environmental laws
and regulations Dwellings will be of average quality, size and capacity, taking
into consideration the needs of the occupant.
[67 FR 61452, Sept. 30, 2002; 67 FR 62896, Oct.
9, 2002]

§ 206.118 Disposal of housing units.
(a) FEMA may sell housing units purchased under § 206.117(b)(1)(ii), Temporary housing, direct assistance, as
follows:
(1) Sale to an applicant.
(i) Sale to the individual or household occupying the unit, if the occupant lacks permanent housing, has a
site that complies with local codes and
ordinances and part 9 of this Title.
(ii) Adjustment to the sales price.
FEMA may approve adjustments to the

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Federal Emergency Management Agency, DHS
sales price when selling a housing unit
to the occupant of a unit if the purchaser is unable to pay the fair market
value of the home or unit and when
doing so is in the best interest of the
applicant and FEMA.
(iii) FEMA may sell a housing unit to
the occupant only on the condition
that the purchaser agrees to obtain and
maintain hazard insurance, as well as
flood insurance on the unit if it is or
will be in a designated Special Flood
Hazard Area.
(2) Other methods of disposal:
(i) FEMA may sell, transfer, donate,
or otherwise make a unit available directly to a State or other governmental entity, or to a voluntary organization, for the sole purpose of providing temporary housing to disaster
victims in major disasters and emergencies. As a condition of the sale,
transfer, or donation, or other method
of provision, the State, governmental
entity, or voluntary organization must
agree to:
(A) Comply with the nondiscrimination provisions of the Stafford Act, 42
U.S.C. 5151; and
(B) Obtain and maintain hazard insurance on the unit, as well as flood insurance if the housing unit is or will be
in a designated Special Flood Hazard
Area.
(ii) FEMA may also sell housing
units at a fair market value to any
other person.
(b) A unit will be sold ‘‘as is, where
is’’, except for repairs FEMA deems
necessary to protect health or safety,
which are to be completed before the
sale. There will be no implied warranties. In addition, FEMA will inform the
purchaser that he/she may have to
bring the unit up to codes and standards that are applicable at the proposed site.
[67 FR 61452, Sept. 30, 2002; 67 FR 62896, Oct.
9, 2002]

§ 206.119 Financial assistance to address other needs.
(a) Purpose. FEMA and the State may
provide financial assistance to individuals and households who have other
disaster-related necessary expenses or
serious needs. To qualify for assistance
under this section, an applicant must
also:

§ 206.119

(1) Apply to the United States Small
Business Administration’s (SBA) Disaster Home Loan Program for all available assistance under that program;
and
(2) Be declined for SBA Disaster
Home Loan Program assistance; or
(3) Demonstrate that the SBA assistance received does not satisfy their
total necessary expenses or serious
needs arising out of the major disaster.
(b) Types of assistance. (1) Medical,
dental, and funeral expenses. FEMA
may provide financial assistance for
medical, dental and funeral items or
services to meet the disaster-related
necessary expenses and serious needs of
individuals and households.
(2) Personal property, transportation,
and other expenses.
(i) FEMA may provide financial assistance for personal property and
transportation items or services to
meet the disaster-related necessary expenses and serious needs of individuals
and households.
(ii) FEMA may provide financial assistance for other items or services
that are not included in the specified
categories for other assistance but
which FEMA approves, in coordination
with the State, as eligible to meet
unique disaster-related necessary expenses and serious needs of individuals
and households.
(c) Eligible costs—(1) Personal property.
Necessary expenses and serious needs
for repair or replacement of personal
property are generally limited to the
following:
(i) Clothing;
(ii) Household items, furnishings or
appliances;
(iii) Tools, specialized or protective
clothing, and equipment required by an
employer as a condition of employment;
(iv) Computers, uniforms, schoolbooks and supplies required for educational purposes; and
(v) Cleaning or sanitizing any eligible
personal property item.
(2) Transportation. Necessary expenses or serious needs for transportation are generally limited to the following:
(i) Repairing or replacing vehicles;
and

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§ 206.120

44 CFR Ch. I (10–1–11 Edition)

(ii) Financial assistance for public
transportation and any other transportation related costs or services.
(3) Medical expenses. Medical expenses
are generally limited to the following:
(i) Medical costs;
(ii) Dental costs; and
(iii) Repair or replacement of medical
equipment.
(4) Funeral expenses. Funeral expenses
are generally limited to the following
(i) Funeral services;
(ii) Burial or cremation; and
(iii) Other related funeral expenses.
(5) Moving and storage expenses. Necessary expenses and serious needs related to moving and storing personal
property to avoid additional disaster
damage generally include storage of
personal property while disaster-related repairs are being made to the primary residence, and return of the personal property to the individual or
household’s primary residence.
(6) Other. Other disaster-related expenses not addressed in this section
may include:
(i) The purchase of a Group Flood Insurance Policy as described in paragraph (d) of this section.
(ii) Other miscellaneous items or
services that FEMA, in consultation
with the State, determines are necessary expenses and serious needs.
(d) Group Flood Insurance purchase.
Individuals identified by FEMA as eligible for ‘‘Other Needs’’ assistance
under section 408 of the Stafford Act as
a result of flood damage caused by a
Presidentially-declared major disaster
and who reside in a special flood hazard
area (SFHA) may be included in a
Group Flood Insurance Policy (GFIP)
established under the National Flood
Insurance Program (NFIP) regulations
at 44 CFR 61.17.
(1) The premium for the GFIP is a
necessary expense within the meaning
of this section. FEMA or the State
shall withhold this portion of the Other
Needs award and provide it to the NFIP
on behalf of individuals and households
who are eligible for coverage. The coverage shall be equivalent to the maximum assistance amount established
under section 408 of the Stafford Act.
(2) FEMA or the State IHP staff shall
provide the NFIP with records of individuals who received an ‘‘Other Needs’’

award and are to be insured through
the GFIP. Records of ‘‘Other Needs’’
applicants to be insured shall be accompanied by payments to cover the
premium amounts for each applicant
for the 3-year policy term. The NFIP
will then issue a Certificate of Flood
Insurance to each applicant. Flood insurance coverage becomes effective on
the 30th day following the receipt of
records of GFIP insureds and their premium payments from the State or
FEMA, and such coverage terminates
36 months from the inception date of
the GFIP, which is 60 days from the
date of the disaster declaration.
(3) Insured applicants would not be
covered if they are determined to be ineligible for coverage based on a number
of exclusions established by the NFIP.
Therefore,
once
applicants/policyholders receive the Certificate of Flood
Insurance that contains a list of the
policy exclusions, they should review
that list to see if they are ineligible for
coverage. Those applicants who fail to
do this may find that their property is,
in fact, not covered by the insurance
policy when the next flooding incident
occurs and they file for losses. Once the
applicants find that their damaged
buildings, contents, or both, are ineligible for coverage, they should notify
the NFIP in writing in order to have
their names removed from the GFIP,
and to have the flood insurance maintenance requirement expunged from
the data-tracking system.
[67 FR 61452, Sept. 30, 2002; 67 FR 62896, Oct.
9, 2002]

§ 206.120 State administration of other
needs assistance.
(a) State administration of other needs
assistance. A State may request a grant
from FEMA to provide financial assistance to individuals and households in
the State under § 206.119. The State
may also expend administrative costs
not to exceed 5 percent of the amount
of the grant in accordance with section
408(f)(1)(b) of the Stafford Act. Any
State that administers the program to
provide financial assistance to individuals and households must administer
the program consistent with § 206.119
and the State Administrative Option
and the State Administrative Plan

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Federal Emergency Management Agency, DHS
that we describe at paragraph (b) and
(c) of this section.
(b) State administrative options. The
delivery of assistance under § 206.119 is
contingent upon the State choosing an
administrator for the assistance. The
State may either request that FEMA
administer the assistance or the State
may request a grant from FEMA for
State administration. The Governor or
designee will execute the State Administrative Option annually. During nondisaster periods the State may submit
any proposed amendments to the administrative option in writing to the
FEMA Regional Administrator. FEMA
shall review the request and respond to
the Governor or his/her designee within
45 days of receipt of the proposed
amendment;
(c) State Administrative Plan (SAP).
The delivery of assistance by a State
under this section is contingent upon
approval of a SAP, which describes the
procedures the State will use to deliver
assistance under section 408 of the
Stafford Act, 42 U.S.C. 5174, when a
State requests a grant to administer
Other Needs assistance. All implementation procedures must be in compliance with Federal laws and requirements, State laws and procedures, and
paragraphs (c) and (d) of this section.
(1) Timeframe for submission of SAP. A
signed SAP, or renewal, must be provided to the FEMA Regional Administrator prior to November 30 of each
year. A SAP shall be effective for at
least one year, and must be resubmitted in full every three years.
(2) Renewals. Annual updates/revisions to the SAP must be submitted by
November 30 of each year for FEMA’s
review and approval by December 31. If
the SAP does not need to be updated/
revised, a letter from the State stating
the SAP is still current must be submitted by November 30 to document
the SAP submission requirement.
(3) Amendments. The State may request amendments to the SAP at any
time. An amendment is effective upon
signature by the FEMA Regional Administrator and the Governor or his/
her designee. The State may request an
amendment to the administrative plan
as follows:
(i) During non-disaster periods. The
State may submit any proposed amend-

§ 206.120

ments to the SAP in writing to the
FEMA Regional Administrator. FEMA
shall review the request and respond to
the Governor or his/her designee within
45 days of receipt of the proposed
amendment;
(ii) During Presidentially-declared disasters. The State shall submit any proposed amendments to the SAP in writing to FEMA within three days after
disaster declaration. FEMA shall review the request and respond to the
Governor or his/her designee within
three days of receipt.
(d) State administrative plan requirements. The State shall develop a plan
for the administration of the Other
Needs assistance that describes, at a
minimum, the following items:
(1) Assignment of grant program responsibilities to State officials or agencies.
(2) Staffing Schedule that identifies
the position, salary and percent of time
for each staff person assigned to program administration and/or implementation.
(3) Procedures for interaction with
applicants:
(i) Procedures for notifying potential
applicants of the availability of the
program, to include the publication of
application deadlines, pertinent program descriptions, and further program
information on the requirements which
must be met by the applicant in order
to receive assistance;
(ii) Procedures for registration and
acceptance of applications, including
late applications, up to the prescribed
time limitations as described in
§ 206.112;
(iii) Procedures for damage inspection and/or other verifications.
(iv) Eligibility determinations.
(A) Under a cooperative agreement: The
procedure for eligibility determinations when the FEMA application and
inspection systems are used by the
State but additional eligibility criteria
are necessary to make State eligibility
determinations.
(B) Under a grant: The procedure for
eligibility determinations when the
FEMA application and inspection systems are not used by the State, including the method for determination of
costs for personal property and provision of a standard list for personal

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§ 206.120

44 CFR Ch. I (10–1–11 Edition)

property items with allowable costs
identified for each item.
(v) Procedures for checking compliance for mandated flood insurance in
accordance with § 206.110(k);
(vi) Procedures for notifying applicants of the State’s eligibility decision;
(vii) Procedures for disbursement of
funds to applicants;
(viii) Procedures for applicant appeal
processing. Procedures must provide
for any appealable determination as
identified in § 206.115(a);
(ix) Procedures for expeditious reporting of allegations of fraud, waste
or abuse to DHS Office of Inspector
General.
(x) Capacity to investigate allegations of waste, fraud and abuse independently if requested by DHS OIG, or
in conjunction with DHS OIG.
(xi) Provisions for safeguarding the
privacy of applicants and the confidentiality of information, in accordance
with § 206.110(j).
(xii) Provisions for complying with
§ 206.116(b), Recovery of funds.
(4) Procedures for financial management, accountability and oversight.
(i) Procedures for verifying by random sample that assistance funds are
meeting applicants’ needs, are not duplicating assistance from other means,
and are meeting flood insurance requirements.
(ii) Provisions for specifically identifying, in the accounts of the State, all
Federal and State funds committed to
each grant program; and for immediately returning, upon discovery, all
Federal funds that are excess to program needs.
(iii) Provisions for accounting for
cash in compliance with State law and
procedure and the Cash Management
Improvement Act of 1990, as amended.
(iv) Reports.
(A) Procedures for preparing and submitting quarterly and final Financial
Status Reports in compliance with 44
CFR 13.41.
(B) Procedures for submitting Program Status Reports in compliance
with paragraph (f)(2)(iii) of this section.
(C) Procedures for preparing and submitting the PSC 272, Federal Cash
Transactions Report.

(v) Procedures for inventory control,
including a system for identifying and
tracking placement of equipment purchased with grant funds or loaned by
FEMA to the State for purposes of administering the Individuals and Households Program.
(vi) Procedures for return of funds to
FEMA.
(vii) State criteria and requirements
for closing out Federal grants.
(viii) Process for retention of records.
(e) Application for assistance procedure.
This section describes the procedures
that must be followed by the State to
submit an application to administer
the Individuals and Households Program through a Grant Award or a Cooperative Agreement.
(1) The State must submit an Other
Needs assistance application to the Regional Administrator within 72 hours
of the major disaster declaration before IHP assistance may be provided.
FEMA will work with the State to approve the application or to modify it so
it can be approved.
(2) The application shall include:
(i) Standard Form (SF) 424, Application for Federal Assistance;
(ii) FEMA Form (FF) 20–20 Budget Information—Non
Construction
Programs;
(iii) Copy of approved indirect cost
rate from a Federal cognizant agency if
indirect costs will be charged to the
grant. Indirect costs will be included in
the administrative costs of the grant
allowed under paragraph (a) of this section; and
(iv) Disaster specific changes to the
State Administrative Plan, if applicable.
(f) Grants management oversight—(1)
Period of assistance. All costs must be
incurred within the period of assistance, which is 18 months from the date
of the disaster declaration. This period
of assistance may be extended if requested in writing by the State and approved in writing by the Assistant Administrator for the Disaster Assistance
Directorate. The State must include a
justification for an extension of the assistance period.
(2) Reporting requirements. (i) The
State shall provide financial status reports, as required by 44 CFR 13.41.

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Federal Emergency Management Agency, DHS
(ii) The State shall provide copies of
PSC 272, Federal Cash Transactions Report to FEMA. The PSC 272 is required
quarterly by the Department of Health
and Human Services from users of its
SMARTLINK service.
(iii) The State shall provide weekly
program status reports which include
the number and dollar amount of applications approved, the amount of assistance disbursed and the number of appeals received.
(3) Ineligible costs. Funds provided to
the State for the administrative costs
of administering Other Needs assistance shall not be used to pay regular
time for State employees, but may be
used to pay overtime for those employees.
(4) Closeout. The State has primary
responsibility to closeout the tasks approved under the Grant Award. In compliance with the period of assistance,
as identified in the award, the State
must reconcile costs and payments, resolve negative audit findings, and submit final reports within 90 days of the
end of the period of assistance. The
State must also provide an inventory
of equipment purchased with grant
funds and loaned to it by FEMA for
purposes of administering IHP, which
lists the items, dates, and costs of
equipment purchased.
(5) Recovery of funds. The State is responsible for recovering assistance
awards from applicants obtained fraudulently, expended for unauthorized
items or services, expended for items
for which assistance is received from
other means, and awards made in error.
(i) Adjustments to expenditures will
be made as funding is recovered and
will be reported quarterly on the Financial Status Report.
(ii) A list of applicants from whom
recoveries are processed will be submitted on the quarterly progress report
to allow FEMA to adjust its program
and financial information systems.
(iii) The State will reimburse FEMA
for the Federal share of awards not recovered through quarterly financial adjustments within the 90 day close out
liquidation period of the grant award.
(iv) If the State does not reimburse
FEMA within the 90 day close out liquidation period, a bill for collection
will be issued. FEMA will charge inter-

§ 206.131

est, penalties, and administrative fees
on delinquent bills for collection in accordance with the Debt Collection Improvement Act. Recovered funds, interest, penalties, and fees owed to FEMA
through delinquent bills for collection
may be offset from other FEMA disaster assistance programs from which
the State is receiving funds or future
grant awards from FEMA or other Federal agencies. Debt collection procedures will be followed as outlined in 44
CFR part 11.
(6) Audit requirements. Pursuant to 44
CFR 13.26, uniform audit requirements
apply to all grants provided under this
subpart.
(7) Document retention. Pursuant to 44
CFR 13.42, States are required to retain
records, including source documentation, to support expenditures/costs incurred against the grant award, for 3
years from the date of submission to
FEMA of the final Financial Status Report. The State is responsible for resolving questioned costs that may result from an audit conducted during
the three-year record retention period
and for returning disallowed costs from
ineligible activities.
[67 FR 61452, Sept. 30, 2002; 67 FR 62896, 62897,
Oct. 9, 2002]

§§ 206.121–206.130

[Reserved]

Subpart E—Individual and Family
Grant Programs
§ 206.131 Individual and Family Grant
Program for major disasters declared on or before October 14,
2002.
(a) General. The Governor may request that a Federal grant be made to
a State for the purpose of such State
making grants to individuals or families who, as a result of a major disaster, are unable to meet disaster-related necessary expenses or serious
needs for Presidentially-declared major
disasters declared on or before October
14, 2002 (Note that the reference to section 411 of the Stafford Act refers to
prior legislation amended by the Disaster Mitigation Act 2000). The total
Federal grant under this section will be
equal to 75 percent of the actual cost of
meeting necessary expenses or serious
needs of individuals and families, plus

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§ 206.131

44 CFR Ch. I (10–1–11 Edition)

State administrative expenses not to
exceed 5 percent of the Federal grant
(see paragraph (g) of this section). The
total Federal grant is made only on
condition that the remaining 25 percent of the actual cost of meeting individuals’ or families’ necessary expenses
or serious needs is paid from funds
made available by the State. With respect to any one major disaster, an individual or family may not receive a
grant or grants under this section totaling more than $10,000 including both
the Federal and State shares. The
$10,000 limit will be adjusted annually,
at the beginning of each fiscal year, to
reflect changes in the Consumer Price
Index for all Urban Consumers. IFG assistance for damages or losses to real
or personal property, or both, will be
provided to individuals or families with
those IFG-eligible losses totaling $201
or more; those individuals with damages or losses of $200 or less to real or
personal property, or both, are ineligible. The Governor or his/her designee
is responsible for the administration of
the grant program. The provisions of
this regulation are in accordance with
44 CFR Part 13, Uniform Administrative Requirements for Grants and Cooperative Agreements to State and
Local Governments.
(b) Purpose. The grant program is intended to provide funds to individuals
or families to permit them to meet
those disaster-related necessary expenses or serious needs for which assistance from other means is either unavailable or inadequate. Meeting those
expenses and needs as expeditiously as
possible will require States to make an
early commitment of personnel and resources. States may make grants in instances where the applicant has not received other benefits to which he/she
may be entitled by the time of application to the IFG program, and if the applicant agrees to repay all duplicated
assistance to the State. The grant program is not intended to indemnify disaster losses or to permit purchase of
items or services which may generally
be characterized as nonessential, luxury, or decorative. Assistance under
this program is not to be counted as income or a resource in the determination of eligibility for welfare or other
income-tested programs supported by

the Federal Government, in that IFG
assistance is intended to address only
disaster-related needs.
(c) Definitions used in this section. (1)
Necessary expense means the cost of a
serious need.
(2) Serious need means the requirement for an item or service essential to
an individual or family to prevent,
mitigate, or overcome a disaster-related hardship, injury, or adverse condition.
(3) Family means a social unit living
together and composed of:
(i) Legally married individuals or
those couples living together as if they
were married and their dependents; or
(ii) A single person and his/her dependents; or
(iii) Persons who jointly own the residence and their dependents.
(4) Individual means anyone who is
not a member of a family as described
above.
(5) Dependent means someone who is
normally claimed as such on the Federal tax return of another, according to
the Internal Revenue Code. It may also
mean the minor children of a couple
not living together where the children
live in the affected residence with the
parent who does not actually claim
them on the tax return.
(6)
Expendable
items
means
consumables,
as
follows:
linens,
clothes, and basic kitchenware (pots,
pans, utensils, dinnerware, flatware,
small kitchen appliances).
(7) Assistance from other means means
assistance including monetary or inkind contributions, from other governmental programs, insurance, voluntary
or charitable organizations, or from
any sources other than those of the individual or family. It does not include
expendable items.
(8) Owner-occupied means that the
residence is occupied by: The legal
owner; a person who does not hold formal title to the residence but is responsible for payment of taxes, maintenance of the residence, and pays no
rent; or a person who has lifetime occupancy rights in the residence with formal title vested in another. In States
where documentation proving ownership is not recorded or does not exist,
the State is required to include in its
administrative plan a State Attorney

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Federal Emergency Management Agency, DHS
General approved set of conditions describing adequate proof of ownership.
(9) Flowage easement means an area
where the landowner has given the
right to overflow, flood, or submerge
the land to the government or other
entity for a public purpose.
(d) National eligibility criteria. In administering the IFG program, a State
shall determine the eligibility of an individual or family in accordance with
the following criteria;
(1) General. (i) To qualify for a grant
under this section, an individual or
family representative must:
(A) Make application to all applicable available governmental disaster assistance programs for assistance to
meet a necessary expense or serious
need, and be determined not qualified
for such assistance, or demonstrate
that the assistance received does not
satisfy the total necessary expense or
serious need;
(B) Not have previously received or
refused assistance from other means
for the specific necessary expense or
serious need, or portion thereof, for
which application is made; and
(C) Certify to refund to the State
that part of the grant for which assistance from other means is received, or
which is not spent as identified in the
grant award document.
(ii) Individuals and families who
incur a necessary expense or serious
need in the major disaster area may be
eligible for assistance under this section without regard to their alienage,
their residency in the major disaster
area, or their residency within the
State in which the major disaster has
been declared except that for assistance in the ‘‘housing’’ category, ownership and residency in the declared disaster area are required (see paragraph
(d)(2)(i) of this section).
(iii) The Flood Disaster Protection
Act of 1973, Public Law 93–234, as
amended, imposes certain restriction
on approval of Federal financial assistance for acquisition and construction
purposes. This paragraph states those
requirements for the IFG program.
(A) For the purpose of this paragraph, financial assistance for acquisition
or construction purposes means a grant
to an individual or family to repair, replace, or rebuild the insurable portions

§ 206.131

of a home, and/or to purchase or repair
insurable contents. For a discussion of
what elements of a home and contents
are insurable, see 44 CFR part 61, Insurance Coverage and Rates.
(B) A State may not make a grant for
acquisition or construction purposes
where the structure to which the grant
assistance relates is located in a designated special flood hazard area which
has been identified by the Assistant
Administrator for Mitigation for at
least 1 year as floodprone, unless the
community in which the structure is
located is participating in the National
Flood Insurance Program (NFIP). However, if a community qualifies for and
enters the NFIP during the 6-month period following the major disaster declaration, the Governor’s Authorized
Representative (GAR) may request a
time extension (see paragraph (j)(1)(ii)
of this section) from the Regional Administrator for the purpose of accepting and processing grant applications
in that community. The Regional Administrator or Assistant Administrator
for the Disaster Assistance Directorate, as appropriate, may approve
the State’s request if those applicable
governmental disaster assistance programs which were available during the
original application period are available to the grant applicants during the
extended application period.
(C)(1) The State may not make a
grant for acquisition or construction
purposes in a designated special flood
hazard area in which the sale of flood
insurance is available under the NFIP
unless the individual or family obtains
adequate flood insurance and maintains such insurance for as long as they
live at that property address. The coverage shall equal the maximum grant
amount established under § 411(f) of the
Stafford Act. If the grantee is a homeowner, flood insurance coverage must
be maintained on the residence at the
flood-damaged property address for as
long as the structure exists if the
grantee, or any subsequent owner of
that real estate, ever wishes to be assisted by the Federal government with
any subsequent flood damages or losses
to real or personal property, or both. If
the grantee is a renter, flood insurance
coverage must be maintained on the

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§ 206.131

44 CFR Ch. I (10–1–11 Edition)

contents for as long as the renter resides at the flood-damaged property address. The restriction is lifted once the
renter moves from the rental unit.
(2) Individuals named by a State as
eligible recipients under § 411 of the
Stafford Act for an IFG program award
for flood damage as a result of a Presidential major disaster declaration will
be included in a Group Flood Insurance
Policy (GFIP) established under the
National Flood Insurance Program
(NFIP) regulations, at 44 CFR 61.17.
(i) The premium for the GFIP is a
necessary expense within the meaning
of this section. The State shall withhold this portion of the IFG award and
provide it to the NFIP on behalf of individuals and families who are eligible
for coverage. The coverage shall be
equivalent to the maximum grant
amount established under § 411(f) of the
Stafford Act.
(ii) The State IFG program staff shall
provide the NFIP with records of individuals who received an IFG award and
are, therefore, to be insured. Records of
IFG grantees to be insured shall be accompanied by payments to cover the
premium amounts for each grantee for
the 3-year policy term. The NFIP will
then issue a Certificate of Flood Insurance to each grantee. Flood insurance
coverage becomes effective on the 30th
day following the receipt of records of
GFIP insureds and their premium payments from the State, and terminates
36 months from the inception date of
the GFIP, i.e., 60 days from the date of
the disaster declaration.
(iii) Insured grantees would not be
covered if they are determined to be ineligible for coverage based on a number
of exclusions established by the NFIP.
Therefore, once grantees/policyholders
receive the Certificate of Flood Insurance that contains a list of the policy
exclusions, they should review that list
to see if they are ineligible for coverage. Those grantees who fail to do
this may find that their property is, in
fact, not covered by the insurance policy when the next flooding incident occurs and they file for losses. Once the
grantees find that their damaged buildings, contents, or both, are ineligible
for coverage, they should notify the
NFIP in writing in order to have their
names removed from the GFIP, and to

have the flood insurance maintenance
requirement expunged from the NFIP
data-tracking system. (If the grantee
wishes to refer to or review a Standard
Flood Insurance Policy, it will be made
available by the NFIP upon request.)
(D) A State may not make a grant to
any individual or family who received
Federal disaster assistance for flood
damage occurring after September 23,
1994, if that property has already received Federal flood-disaster assistance
in a disaster declared after September
23, 1994, a flood insurance purchase and
maintenance requirement was levied as
a condition or result of receiving that
Federal disaster assistance, and flood
insurance was, in fact, not maintained
in an amount at least equal to the
maximum IFG grant amount. However,
if that property was determined to be
ineligible for NFIP flood insurance coverage and is in a special flood hazard
area located in a community participating in the NFIP, then the State
may continue to make grants to those
individuals or families that receive additional damage in all subsequent
Presidentially declared major disasters
involving floods.
(iv) In order to comply with the
President’s Executive Orders on Floodplain Management (E.O. 11988) and Protection of Wetlands (E.O. 11990), the
State must implement the IFG program in accordance with FEMA regulations 44 CFR part 9. That part specifies
which IFG program actions require a
floodplain
management
decisionmaking process before a grant may be
made, and also specifies the steps to
follow in the decisionmaking process.
Should the State determine that an individual or family is otherwise eligible
for grant assistance, the State shall accomplish the necessary steps in accordance with that section, and request the
Regional Administrator to make a
final floodplain management determination.
(2) Eligible categories. Assistance
under this section shall be made available to meet necessary expenses or serious needs by providing essential
items or services in the following categories:
(i) Housing. With respect to primary
residences (including mobile homes)
which are owner-occupied at the time

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Federal Emergency Management Agency, DHS
of the disaster, grants may be authorized to:
(A) Repair, replace, or rebuild;
(B) Provide access. When an access
serves more than one individual or
family, an owner-occupant whose primary residence is served by the access
may be eligible for a proportionate
share of the cost of jointly repairing or
providing such access. The owner-occupant may combine his/her grant funds
with funds made available by the other
individuals or families if a joint use
agreement is executed (with no cost or
charge involved) or if joint ownership
of the access is agreed to;
(C) Clean or make sanitary;
(D) Remove debris from such residences. Debris removal is limited to
the minimum required to remove
health or safety hazards from, or protect against additional damage to the
residence;
(E) Provide or take minimum protective measures required to protect such
residences against the immediate
threat of damage, which means that
the disaster damage is causing a potential safety hazard and, if not repaired,
will cause actual safety hazards from
common weather or environmental
events (example: additional rain, flooding, erosion, wind); and
(F) Minimization measures required
by owner-occupants to comply with the
provision of 44 CFR part 9 (Floodplain
Management and Protection of Wetlands), to enable them to receive assistance from other means, and/or to
enable them to comply with a community’s floodplain management regulations.
(ii) Personal property. Proof of ownership of personal property is not required. This category includes:
(A) Clothing;
(B) Household items, furnishings, or
appliances. If a predisaster renter receives a grant for household items, furnishings, or appliances and these items
are an integral part of mobile home or
other furnished unit, the predisaster
renter may apply the funds awarded for
these specific items toward the purchase of the furnished unit, and toward
mobile home site development, towing,
set-up, connecting and/or reconnecting;
(C) Tools, specialized or protective
clothing, and equipment which are re-

§ 206.131

quired by an employer as a condition of
employment;
(D) Repairing, cleaning or sanitizing
any eligible personal property item;
and
(E) Moving and storing to prevent or
reduce damage.
(iii) Transportation. Grants may be
authorized to repair, replace, or provide privately owned vehicles or to provide public transportation.
(iv) Medical or dental expenses.
(v) Funeral expenses. Grants may include funeral and burial (and/or cremation) and related expenses.
(vi) Cost of the first year’s flood insurance premium to meet the requirement of this section.
(vii) Costs for estimates required for
eligibility determinations under the
IFG program. Housing and personal
property estimates will be provided by
the government. However, an applicant
may appeal to the State if he/she feels
the government estimate is inaccurate.
The cost of an applicant-obtained estimate to support the appeal is not an eligible cost.
(viii) Other. A State may determine
that other necessary expenses and serious needs are eligible for grant assistance. If such a determination is made,
the State must summarize the facts of
the case and thoroughly document its
findings of eligibility. Should the State
require technical assistance in making
a determination of eligibility, it may
provide a factual summary to the Regional Administrator and request guidance. The Assistant Administrator for
the Disaster Assistance Directorate
also may determine that other necessary expenses and serious needs are
eligible for grant assistance. Following
such a determination, the Assistant
Administrator for the Disaster Assistance Directorate shall advise the
State, through the Regional Administrator, and provide the necessary program guidance.
(3) Ineligible categories. Assistance
under this section shall not be made
available for any item or service in the
following categories:
(i) Business losses, including farm
businesses and self-employment;
(ii) Improvements or additions to
real or personal property, except those

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§ 206.131

44 CFR Ch. I (10–1–11 Edition)

required to comply with paragraph
(d)(2)(i)(F) of this section;
(iii) Landscaping;
(iv) Real or personal property used
exclusively for recreation; and
(v) Financial obligations incurred
prior to the disaster.
(4) Verification. The State will be provided most verification data on IFG applicants who were not required to first
apply to the SBA. The FEMA Regional
Administrator shall be responsible for
performing most of the required
verifications in the categories of housing (to include documentation of home
ownership and primary residency); personal property; and transportation (to
include notation of the plate or title
number of the vehicle; the State may
wish to follow up on this). Certain
verifications may still be required to
be performed by the State, such as on
late applicants or reverifications, when
FEMA or its contractors are no longer
available, and on medical/dental, funeral and ‘‘other’’ categories. Eligibility determination functions shall be
performed by the State. The SBA will
provide copies of verification performed by SBA staff on housing and
personal property (including vehicles)
for those applicants who were first required to apply to SBA. This will enable the State to make an eligibility
determination on those applicants.
When an applicant disagrees with the
grant award, he/she may appeal to the
State. The cost of any estimate provided by the applicant in support of
his/her appeal is not eligible under the
program.
(e) State administrative plan. (1) The
State shall develop a plan for the administration of the IFG program that
includes, as a minimum, the items listed below.
(i) Assignment of grant program responsibilities to State officials or agencies.
(ii) Procedures for:
(A) Notifying potential grant applicants of the availability of the program, to include the publication of application deadlines, pertinent program
descriptions, and further program information on the requirements which
must be met by the applicant in order
to receive assistance;

(B) Participating with FEMA in the
registration and acceptance of applications, including late applications, up to
the prescribed time limitations;
(C) Reviewing verification data provided by FEMA and performing
verifications for medical, dental, funeral, and ‘‘other’’ expenses, and also
for all grant categories in the instance
of late applications and appeals. FEMA
will
perform
any
necessary
reverifications while its contract personnel are in the disaster area, and the
State will perform any others;
(D) Determining applicant eligibility
and grant amounts, and notifying applicants of the State’s decision;
(E) Determining the requirement for
flood insurance;
(F) Preventing duplication of benefits between grant assistance and assistance from other means;
(G) At the applicant’s request, and at
the State’s option, reconsidering the
State’s determinations;
(H) Processing applicant appeals, recognizing that the State has final authority. Such procedures must provide
for:
(1) The receipt of oral or written evidence from the appellate or representative;
(2) A determination on the record;
and
(3) A decision by an impartial person
or board;
(I) Disbursing grants in a timely
manner;
(J) Verifying by random sample that
grant funds are meeting applicants’
needs, are not duplicating assistance
from other means, and are meeting
floodplain management and flood insurance requirements. Guidance on the
sample size will be provided by the Regional Administrator;
(K) Recovering grant funds obtained
fraudulently, expended for unauthorized items or services, expended for
items for which assistance is received
from other means, or authorized for acquisition or construction purposes
where proof of purchase of flood insurance is not provided to the State. Except for those mentioned in the previous sentence, grants made properly
by the State on the basis of federally
sponsored verification information are
not subject to recovery by the State,

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Federal Emergency Management Agency, DHS
i.e., FEMA will not hold the State responsible for repaying to FEMA the
Federal share of those grants. The
State is responsible for its 25 percent
share of those grants. As an attachment to its voucher, the State must
identify each case where recovery actions have been taken or are to be
taken, and the steps taken or to be
taken to accomplish recovery;
(L) Conducting any State audits that
might be performed in compliance with
the Single Audit Act of 1984; and ensuring that appropriate corrective action
is taken within 6 months after receipt
of the audit report in instances of noncompliance with Federal laws and regulations;
(M) Reporting to the Regional Administrator, and to the Federal Coordinating Officer as required; and
(N) Reviewing and updating the plan
each January.
(iii) National eligibility criteria as
defined in paragraph (d) of this section.
(iv) Provisions for compliance with 44
CFR part 13, Uniform Administrative
Requirements for Grants and Cooperative Agreements to State and Local
Governments; 44 CFR part 11, Claims;
the State’s own debt collection procedures; and all applicable Federal laws
and regulations.
(v) Pertinent time limitations for accepting applications, grant award activities, and administrative activities,
to comply with Federal time limitations.
(vi) Provisions for specifically identifying, in the accounts of the State, all
Federal and State funds committed to
each grant program; for repaying the
loaned State share as of the date
agreed upon in the FEMA-State Agreement; and for immediately returning,
upon discovery, all Federal funds that
are excess to program needs.
(vii) Provisions for safeguarding the
privacy of applicants and the confidentiality of information, except that the
information may be provided to agencies or organizations who require it to
make eligibility decisions for assistance programs, or to prevent duplication of benefits, to State agencies responsible for audit or program review,
and to FEMA or the Government Accountability Office for the purpose of

§ 206.131

making audits or conducting program
reviews.
(viii) A section identifying the management and staffing functions in the
IFG program, the sources of staff to fill
these functions, and the management
and oversight responsibilities of:
(A) The GAR;
(B) The department head responsible
for the IFG program;
(C) The Grant Coordinating Officer,
i.e., the State official assigned management responsibility for the IFG program; and
(D) The IFG program manager, where
management responsibilities are assigned to such a person on a day-to-day
basis.
(2) The Governor or his/her designee
may request the Regional Administrator to provide technical assistance
in the preparation of an administrative
plan to implement this program.
(3) The Governor shall submit a revised State administrative plan each
January to the Regional Administrator. The Regional Administrator
shall review and approve the plan annually. In each disaster for which assistance under this section is requested, the Regional Administrator
shall request the State to prepare any
amendments required to meet current
policy guidance. The Regional Administrator must then work with the State
until the plan and amendment(s) are
approved.
(4) The State shall make its approved
administrative plan part of the State
emergency plan, as described in subpart A of these regulations.
(f) State initiation of the IFG program.
To make assistance under this section
available to disaster victims, the Governor must, either in the request of the
President for a major disaster declaration or by separate letter to the Regional Administrator, express his/her
intention to implement the program.
This expression of intent must include
an estimate of the size and cost of the
program. In addition, this expression of
intent represents the Governor’s agreement to the following:
(1) That the program is needed to satisfy necessary expenses and serious
needs of disaster victims which cannot
otherwise be met;

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§ 206.131

44 CFR Ch. I (10–1–11 Edition)

(2) That the State will pay its 25 percent share of all grants to individuals
and families;
(3) That the State will return immediately upon discovery advanced Federal funds that exceed actual requirements;
(4) To implement an administrative
plan as identified in paragraph (e) of
this section;
(5) To implement the grant program
throughout the area designated as eligible for assistance by the Assistant
Administrator for the Disaster Assistance Directorate; and
(6) To maintain close coordination
with and provide reports to the Regional Administrator.
(g) Funding. (1) The Regional Administrator may obligate the Federal share
of the IFG program based upon the determination that:
(i) The Governor has indicated the intention to implement the program, in
accordance with paragraph (f) of this
section;
(ii) The State’s administrative plan
meets the requirements of this section
and current policy guidance; and
(iii) There is no excess advance of the
Federal share due FEMA from a prior
IFG program. The State may eliminate
any such debt by paying it immediately, or by accepting an offset of the
owed funds against other funds payable
by FEMA to the State. When the excess Federal share has been repaid, the
Regional Administrator may then obligate funds for the Federal share for the
current disaster.
(2) The Regional Administrator may
increase the State’s letter of credit to
meet the Federal share of program
needs if the above conditions are met.
The State may withdraw funds for the
Federal share in the amount made
available to it by the Regional Administrator. Advances to the State are
governed by 44 CFR 13.21, Payment.
(3) The Regional Administrator may
lend to the State its share in accordance with subpart A of these regulations.
(4) Payable costs are governed by 44
CFR 13.22, Allowable Costs, and the associated OMB Circular A–87, Cost Principles for State and Local Governments. Also, the costs must be in accordance with the national eligibility

criteria stated in paragraph (d) of this
section, and the State’s administrative
plan, as stated in paragraph (e) of this
section. The Federal contribution to
this program shall be 75 percent of program costs and shall be made in accordance with 44 CFR 13.25, Matching
or Cost-Sharing.
(h) Final payment. Final payment to
the State for the Federal share of the
IFG program plus administrative costs,
is governed by 44 CFR l3.21, Payment,
and 44 CFR 13.50, Closeout. The voucher
is Standard Form 270, Request for Advance or Reimbursement). A separate
voucher for the State share will be prepared, to include all disaster programs
for which the State is requesting a loan
of the nonFederal share. The FEMA
Regional Administrator will analyze
the voucher and approve, disapprove,
or suspend approval until deficiencies
are corrected.
(i) Audits. The State should perform
the audits required by the Single Audit
Act of 1984. Refer to 44 CFR part 13. All
programs are subject to Federal audit.
(j) Time limitations. (1) In the administration of the IFG program:
(i) The Governor shall indicate his/
her intention to implement the IFG
program no later than 7 days following
the day on which the major disaster
was declared and in the manner set
forth in paragraph (f) of this section;
(ii) Applications shall be accepted
from individuals or families for a period of 60 days following the declaration, and for no longer than 30 days
thereafter when the State determines
that extenuating circumstances beyond
the applicants’ control (such as, but
not limited to, hospitalization, illness,
or inaccessibility to application centers) prevented them from applying in
a timely manner. Exception: If applicants exercising their responsibility to
first apply to the Small Business Administration do so after SBA’s deadline, and SBA accepts their case for
processing because of ‘‘substantial
causes essentially beyond the control
of the applicant,’’ and provides a formal decline or insufficient loan based
on lack of repayment ability, unsatisfactory credit, or unsatisfactory experience with prior loans (i.e., the reasons a loan denial client would normally be eligible for IFG assistance),

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Federal Emergency Management Agency, DHS
then such an application referred to
the State by the SBA is considered as
meeting the IFG filing deadline. The
State may then apply its own criteria
in determining whether to process the
case for grant assistance. The State
automatically has an extension of time
to complete the processing, eligibility,
and disbursement functions. However,
the State must still complete all administrative activity within the 270day period described in this section.
(iii) The State shall complete all
grant award activity, including eligibility determinations, disbursement,
and disposition of State level appeals,
within 180 days following the declaration date. The Regional Administrator
shall suspend all grant awards disbursed after the specified completion
date; and
(iv) The State shall complete all administrative activities and submit
final reports and vouchers to the Regional Administrator within 90 days of
the completion of all grant award activity.
(2) The GAR may submit a request
with appropriate justification for the
extension of any time limitation. The
Regional Administrator may approve
the request for a period not to exceed
90 days. The Assistant Administrator
for the Disaster Assistance Directorate
may approve any request for a further
extension of the time limitations.
(k) Appeals—(1) Bills for collection
(BFC’s). The State may appeal the
issuance of a BFC by the Regional Administrator. Such an appeal shall be
made in writing within 60 days of the
issuance of the bill. The appeal must
include information justifying why the
bill is incorrect. The Regional Administrator shall review the material submitted and notify the State, in writing,
within 15 days of receipt of the appeal,
of his/her decision. Interest on BFC’s
starts accruing on the date of issuance
of the BFC, but is not charged if the
State pays within 30 days of issuance.
If the State is successful in its appeal,
interest will not be charged; if unsuccessful, interest is due and payable, as
above.
(2) Other appeals. The State may appeal any other decision of the regional
Administrator. Such appeals shall be
made in writing within 60 days of the

§ 206.141

Regional Administrator ’s decision.
The appeal must include information
justifying a reversal of the decision.
The Regional Administrator shall review the material submitted and notify
the State, in writing, within 15 days of
receipt of the appeal, of his/her decision.
(3) Appeals to the Assistant Administrator for the Disaster Assistance Directorate. The State may further appeal
the Regional Administrator ’s decisions to the Assistant Administrator
for the Disaster Assistance Directorate. This appeal shall be made in
writing within 60 days of the Regional
Administrator ’s decision. The appeal
must include information justifying a
reversal of the decision. The Assistant
Administrator for the Disaster Assistance Directorate shall review the material submitted and notify the State,
in writing, within 15 days of receipt of
the appeal, of his/her decision.
(l) Exemption from garnishment. All
proceeds received or receivable under
the IFG program shall be exempt from
garnishment, seizure, encumbrance,
levy, execution, pledge, attachment,
release, or waiver. No rights under this
provision are assignable or transferable. The above exemptions will not
apply to the requirement imposed by
paragraph (e)(1)(ii)(K) of this section.
(m) Debt collection. If the State has
been unable to recover funds as stated
in paragraph (e)(1)(k) of this section,
the Regional Administrator shall institute debt collection activities against
the individual according to the procedures outlined in 44 CFR part 11,
Claims, and 44 CFR 13.52, Collection of
Amounts Due.
[54 FR 11615, Mar. 21, 1989, as amended at 55
FR 28627, July 12, 1990; 60 FR 7130, Feb. 7,
1995; 61 FR 19201, May 1, 1996; 67 FR 61460,
Sept. 30, 2002; 74 FR 15348, Apr. 3, 2009]

§§ 206.132–206.140

[Reserved]

Subpart F—Other Individual
Assistance
§ 206.141 Disaster unemployment assistance.
The authority to implement the disaster unemployment assistance (DUA)
program authorized by section 410 of
the Stafford Act, and the authority to

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§§ 206.142–206.150

44 CFR Ch. I (10–1–11 Edition)

issue regulations, are currently delegated to the Secretary of Labor.
§§ 206.142–206.150

[Reserved]

§ 206.151 Food commodities.
(a) The Administrator will assure
that adequate stocks of food will be
ready and conveniently available for
emergency mass feeding or distribution
in any area of the United States which
suffers a major disaster or emergency.
(b) In carrying out the responsibilities in paragraph (a) of this section,
the Administrator may direct the Secretary of Agriculture to purchase food
commodities in accordance with authorities prescribed in section 413(b) of
the Stafford Act.
§§ 206.152–206.160

[Reserved]

§ 206.161 Relocation assistance.
Notwithstanding any other provision
of law, no person otherwise eligible for
any kind of replacement housing payment under the Uniform Relocation
Assistance and Real Property Acquisition Policies Act of 1970 (Pub. L. 91–646)
shall be denied such eligibility as a result of his being unable, because of a
major disaster as determined by the
President, to meet the occupancy requirements set by such Act.
§§ 206.162–206.163

[Reserved]

§ 206.164 Disaster legal services.
(a) Legal services, including legal advice, counseling, and representation in
non fee-generating cases, except as provided in paragraph (b) of this section,
may be provided to low-income individuals who require them as a result of a
major disaster. For the purpose of this
section, low-income individuals means
those disaster victims who have insufficient resources to secure adequate
legal services, whether the insufficiency existed prior to or results from
the major disaster. In cases where
questions arise about the eligibility of
an individual for legal services, the Regional Administrator or his/her representative shall make a determination.
(b) Disaster legal services shall be
provided free to such individuals. Feegenerating cases shall not be accepted
by lawyers operating under these regu-

lations. For purposes of this section, a
fee-generating case is one which would
not ordinarily be rejected by local lawyers as a result of its lack of potential
remunerative value. Where any question arises as to whether a case is feegenerating as defined in this section,
the Regional Administrator or his/her
representative, after any necessary
consultation with local or State bar associations, shall make the determination. Any fee-generating cases shall be
referred by the Regional Administrator
or his/her representative to private
lawyers, through existing lawyer referral services, or, where that is impractical or impossible, the Regional Director may provide a list of lawyers from
which the disaster victim may choose.
Lawyers who have rendered voluntary
legal assistance under these regulations are not precluded from taking
fee-generating cases referred to them
in this manner while in their capacity
as private lawyers.
(c) When the Regional Administrator
determines after any necessary consultation with the State Coordinating
Officer, that implementation of this
section is necessary, provision of disaster legal services may be accomplished by:
(1) Use of volunteer lawyers under
the terms of appropriate agreements;
(2) Use of Federal lawyers, provided
that these lawyers do not represent an
eligible disaster victim before a court
or Federal agency in a matter directly
involving the United States, and further provided that these lawyers do not
act in a way which will violate the
standards of conduct of their respective
agencies or departments;
(3) Use of private lawyers who may be
paid by the Federal Emergency Management Agency when the Regional
Administrator has determined that
there is no other means of obtaining
adequate legal assistance for qualified
disaster victims; or
(4) Any other arrangement the Regional Administrator deems appropriate.
The Assistant Administrator for the
Disaster Assistance Directorate shall
coordinate with appropriate Federal
agencies and the appropriate national,

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Federal Emergency Management Agency, DHS
state and local bar associations, as necessary, in the implementation of the
disaster legal services programs.
(d) In the event it is necessary for
FEMA to pay lawyers for the provision
of legal services under these regulations, the Regional Administrator, in
consultation with State and local bar
associations,
shall
determine
the
amount of reimbursement due to the
lawyers who have provided disaster
legal services at the request of the Regional Administrator. At the Regional
Administrator ’s discretion, administrative costs of lawyers providing legal
services requested by him or her may
also be paid.
(e) Provision of disaster legal services is confined to the securing of benefits under the Act and claims arising
out of a major disaster.
(f) Any disaster legal services shall
be provided in accordance with subpart
A of these regulations, Non-discrimination in disaster assistance.
§§ 206.165–206.170

[Reserved]

§ 206.171 Crisis counseling assistance
and training.
(a) Purpose. This section establishes
the policy, standards, and procedures
for implementing section 416 of the
Act, Crisis Counseling Assistance and
Training. FEMA will look to the Director, National Institute of Mental
Health (NIMH), as the delegate of the
Secretary of the Department of Health
and Human Services (DHHS).
(b) Definitions. (1) Assistant Administrator means the head of the Disaster
Assistance Directorate; the official
who approves or disapproves a request
for assistance under section 416 of the
Act, and is the final appeal authority.
(2) Crisis means any life situation resulting from a major disaster or its
aftermath which so affects the emotional and mental equilibrium of a disaster victim that professional mental
health counseling services should be
provided to help preclude possible damaging physical or psychological effects.
(3) Crisis counseling means the application of individual and group treatment procedures which are designed to
ameliorate the mental and emotional
crises and their subsequent psychological and behavioral conditions re-

§ 206.171

sulting from a major disaster or its
aftermath.
(4) Federal Coordinating Officer (FCO)
means the person appointed by the Administrator or Deputy Administrator
to coordinate Federal assistance in an
emergency or a major disaster.
(5) Grantee means the State mental
health agency or other local or private
mental health organization which is
designated by the Governor to receive
funds under section 416 of the Act.
(6) Immediate services means those
screening or diagnostic techniques
which can be applied to meet mental
health needs immediately after a
major disaster. Funds for immediate
services may be provided directly by
the Regional Administrator to the
State or local mental health agency
designated by the Governor, prior to
and separate from the regular program
application process of crisis counseling
assistance.
(7) Major disaster means any natural
catastrophe (including any hurricane,
tornado, storm, high water, winddriven
water, tidal wave, tsunami, earthquake, volcanic eruption, landslide,
mudslide, snowstorm or drought), or,
regardless of cause, any fire, flood, or
explosion, in any part of the United
States, which in the determination of
the President causes damage of sufficient severity and magnitude to warrant major disaster assistance under
this Act to supplement the efforts and
available resources of States, local
governments, and disaster relief organizations in alleviating the damage,
loss, hardship, or suffering caused
thereby.
(8) Project Officer means the person
assigned by the Secretary, DHHS, to
monitor a crisis counseling program,
provide consultation, technical assistance, and guidance, and be the contact
point within the DHHS for program
matters.
(9) Regional Administrator means the
director of a regional office of FEMA,
or the Disaster Recovery Manager, as
the delegate of the Regional Administrator.
(10) Secretary means the Secretary of
DHHS or his/her delegate.
(11) State Coordinating Officer (SCO)
means the person appointed by the

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§ 206.171

44 CFR Ch. I (10–1–11 Edition)

Governor to act in cooperation with
the FCO.
(c) Agency policy. (1) It is agency policy to provide crisis counseling services, when required, to victims of a
major disaster for the purpose of relieving mental health problems caused
or aggravated by a major disaster or
its aftermath. Assistance provided
under this section is short-term in nature and is provided at no cost to eligible disaster victims.
(2) The Regional Administrator and
Assistant Administrator for the Disaster Assistance Directorate, in fulfilling their responsibilities under this
section, shall coordinate with the Secretary.
(3) In meeting the responsibilities
under this section, the Secretary or
his/her delegate will coordinate with
the Assistant Administrator for the
Disaster Assistance Directorate.
(d) State initiation of the crisis counseling program. To obtain assistance
under this section, the Governor or his/
her authorized representative must initiate an assessment of the need for crisis counseling services within 10 days
of the date of the major disaster declaration. The purpose of the assessment is to provide an estimate of the
size and cost of the program needed
and to determine if supplemental Federal assistance is required. The factors
of the assessment must include those
described in paragraphs (f)(2) (ii) and
(iii) and (g)(2) (iii) and (iv) of this section.
(e) Public or private mental health
agency programs. If the Governor determines during the assessment that because of unusual circumstances or serious conditions within the State or
local mental health network, the State
cannot carry out the crisis counseling
program, he/she may identify a public
or private mental health agency or organization to carry out the program or
request the Regional Administrator to
identify, with the assistance of the
Secretary, such an agency or organization. Preference should be given to the
extent feasible and practicable to those
public and private agencies or organizations which are located in or do business primarily in the major disaster
area.

(f) Immediate services. If, during the
course of the assessment, the State determines
that
immediate
mental
health services are required because of
the severity and magnitude of the disaster, and if State or local resources
are insufficient to provide these services, the State may request and the Regional Administrator, upon determining that State resources are insufficient, may provide funds to the State,
separate from the application process
for regular program funds (described at
paragraph (g) of this section).
(1) The application must be submitted to the Regional Administrator
no later than 14 days following the declaration of the major disaster. This application represents the Governor’s
agreement and/or certification:
(i) That the requirements are beyond
the State and local governments’ capabilities;
(ii) That the program, if approved,
will be implemented according to the
plan contained in the application approved by the Regional Administrator;
(iii) To maintain close coordination
with and provide reports to the Regional Administrator; and
(iv) To include mental health disaster planning in the State’s emergency plan prepared under title II of
the Stafford Act.
(2) The application must include:
(i) The geographical areas within the
designated disaster area for which services will be provided;
(ii) An estimate of the number of disaster victims requiring assistance;
(iii) A description of the State and
local resources and capabilities, and an
explanation of why these resources
cannot meet the need;
(iv) A description of response activities from the date of the disaster incident to the date of application;
(v) A plan of services to be provided
to meet the identified needs; and
(vi) A detailed budget, showing the
cost of proposed services separately
from the cost of reimbursement for any
eligible services provided prior to application.
(3) Reporting requirements. The State
shall submit to the Regional Administrator:
(i) A mid-program report only when a
regular program grant application is

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Federal Emergency Management Agency, DHS
being prepared and submitted. This report will be included as part of the regular program grant application;
(ii) A final program report, a financial status report, and a final voucher
90 days after the last day of immediate
services funding.
(4) Immediate services program funding:
(i) Shall not exceed 60 days following
the declaration of the major disaster,
except when a regular program grant
application has been submitted;
(ii) May continue for up to 30 additional days when a regular program
grant application has been submitted;
(iii) May be extended by the Regional
Administrator, upon written request
from the State, documenting extenuating circumstances; and
(iv) May reimburse the State for documented, eligible expenses from the
date of the occurrence of the event or
incurred in anticipation of and immediately preceding the disaster event
which results in a declaration.
(v) Any funds granted pursuant to an
immediate services program, paragraph (f) of this section, shall be expended solely for the purposes specified
in the approved application and budget,
these regulations, the terms and conditions of the award, and the applicable
principles prescribed in 44 CFR part 13.
(5) Appeals. There are two levels of
appeals. If a State submits appeals at
both levels, the first appeal must be
submitted early enough to allow the
latter appeal to be submitted within 60
days following the date of the funding
determination on the immediate services program application.
(i) The State may appeal the Regional Administrator ’s decision. This
appeal must be submitted in writing
within 60 days of the date of notification of the application decision, but
early enough to allow for further appeal if desired. The appeal must include information justifying a reversal
of the decision. The Regional Director
shall review the material submitted,
and after consultation with the Secretary, notify the State, in writing
within 15 days of receipt of the appeal,
of his/her decision;
(ii) The State may further appeal the
Regional Administrator ’s decision to
the Assistant Administrator for the

§ 206.171

Disaster Assistance Directorate. This
appeal shall be made in writing within
60 days of the date of the Regional Administrator ’s notification of the decision on the immediate services application. The appeal must include information justifying a reversal of the decision. The Assistant Administrator for
the Disaster Assistance Directorate, or
other impartial person, shall review
the material submitted, and after consultation with the Secretary and Regional Administrator, notify the State,
in writing, within 15 days of receipt of
the appeal, of his/her decision.
(g) Regular program. (1) The application must be submitted by the Governor or his/her authorized representative to the Assistant Administrator for
the Disaster Assistance Directorate
through the Regional Administrator,
and simultaneously to the Secretary
no later than 60 days following the declaration of the major disaster. This application represents the Governor’s
agreement and/or certification:
(i) That the requirements are beyond
the State and local governments’ capabilities;
(ii) That the program, if approved,
will be implemented according to the
plan contained in the application approved by the Assistant Administrator
for the Disaster Assistance Directorate;
(iii) To maintain close coordination
with and provide reports to the Regional Administrator, the Assistant
Administrator for the Disaster Assistance Directorate, and the Secretary;
and
(iv) To include mental health disaster planning in the State’s emergency plan prepared under title II of
the Stafford Act.
(2) The application must include:
(i) Standard Form 424, Application
for Federal Assistance;
(ii) The geographical areas within the
designated disaster area for which services will be supplied;
(iii) An estimate of the number of
disaster victims requiring assistance.
This documentation of need should include the extent of physical, psychological, and social problems observed,
the types of mental health problems
encountered by victims, and a description of how the estimate was made;

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§ 206.171

44 CFR Ch. I (10–1–11 Edition)

(iv) A description of the State and
local resources and capabilities, and an
explanation of why these resources
cannot meet the need;
(v) A plan of services which must include at a minimum:
(A) The manner in which the program will address the needs of the affected population, including the types
of services to be offered, an estimate of
the length of time for which mental
health services will be required, and
the manner in which long-term cases
will be handled;
(B) A description of the organizational structure of the program, including designation by the Governor of
an individual to serve as administrator
of the program. If more than one agency will be delivering services, the plan
to coordinate services must also be described;
(C) A description of the training program for project staff, indicating the
number of workers needing such training;
(D) A description of the facilities to
be utilized, including plans for securing
office space if necessary to the project;
and
(E) A detailed budget, including identification of the resources the State
and local governments will commit to
the project, proposed funding levels for
the different agencies if more than one
is involved, and an estimate of the required Federal contribution.
(3) Reporting requirements. The State
shall submit the following reports to
the Regional Administrator, the Secretary, and the State Coordinating Officer:
(i) Quarterly progress reports, as required by the Regional Administrator
or the Secretary, due 30 days after the
end of the reporting period. This is consistent with 44 CFR 13.40, Monitoring
and Reporting Program Performance;
(ii) A final program report, to be submitted within 90 days after the end of
the program period. This is also consistent with 44 CFR 13.40, Monitoring
and Reporting Program Performance;
(iii) An accounting of funds, in accordance with 44 CFR 13.41, Financial
Reporting, to be submitted with the
final program report; and

(iv) Such additional reports as the
Regional Administrator, Secretary, or
SCO may require.
(4) Regular program funding:
(i) Shall not exceed 9 months from
the date of the DHHS notice of grant
award, except that upon the request of
the State to the Regional Administrator and the Secretary, the Assistant
Administrator for the Disaster Assistance Directorate may authorize up to
90 days of additional program period
because of documented extraordinary
circumstances.
In
limited
circumstances, such as disasters of a catastrophic nature, the Assistant Administrator for the Disaster Assistance Directorate may extend the program period for more than 90 days where he or
she deems it to be in the public interest.
(ii) The amount of the regular program grant award will take into consideration the Secretary’s estimate of
the sum necessary to carry out the
grant purpose.
(iii) Any funds granted pursuant to a
regular program, paragraph (g) of this
section, shall be expended solely for
the purposes specified in the approved
application and budget, these regulations, the terms and conditions of the
award, and the applicable cost principles prescribed in subpart Q of 45 CFR
part 92.
(5) Appeals. The State may appeal the
Assistant Administrator for the Disaster Assistance Directorate ’s decision, in writing, within 60 days of the
date of notification of the decision.
The appeal must include information
justifying a reversal of the decision.
The Assistant Administrator for the
Disaster Assistance Directorate, or
other impartial person, in consultation
with the Secretary and Regional Administrator, shall review the material
submitted and notify the State, in
writing within 15 days of receipt of the
appeal, of his/her decision.
(h) Eligibility guidelines. (1) For services. An individual may be eligible for
crisis counseling services if he/she was
a resident of the designated major disaster areas or was located in the area
at the time of the disaster event and if:
(i) He/she has a mental health problem which was caused or aggravated by
the major disaster or its aftermath; or

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Federal Emergency Management Agency, DHS
(ii) He/she may benefit from preventive care techniques.
(2) For training. (i) The crisis counseling project staff or consultants to
the project are eligible for the specific
instruction that may be required to enable them to provide professional mental health crisis counseling to eligible
individuals;
(ii) All Federal, State, and local disaster workers responsible for assisting
disaster victims are eligible for general
instruction designed to enable them to
deal effectively and humanely with disaster victims.
(i) Assignment of responsibilities. (1)
The Regional Administrator shall:
(i) In the case of an immediate services program application, acknowledge
receipt of the request, verify (with assistance from the Secretary) that State
resources are insufficient, approve or
disapprove the State’s application, obligate and advance funds for this purpose, review appeals, make a determination (with assistance from the
Secretary), and notify the State;
(ii) In the case of a regular program
grant application:
(A) Acknowledge receipt of the request;
(B) Request the Secretary to conduct
a review to determine the extent to
which assistance requested by the Governor or his/her authorized representative is warranted;
(C) Considering the Secretary’s recommendation, recommend approval or
disapproval of the application for assistance under this section; and forward the Regional Administrator ’s
and Secretary’s recommendations and
documentation to the Assistant Administrator for the Disaster Assistance
Directorate;
(D) Assist the State in preliminary
surveys and provide guidance and technical assistance if requested to do so;
and
(E) Maintain liaison with the Secretary and look to the Secretary for
program oversight and monitoring.
(2) The Secretary shall:
(i) Provide technical assistance, consultation, and guidance to the Regional
Administrator in reviewing a State’s
application, to a State during program
implementation and development, and

§ 206.171

to mental health agencies, as appropriate;
(ii) At the request of the Regional
Administrator, conduct a review to
verify the extent to which the requested assistance is needed and provide a recommendation on the need for
supplementary Federal assistance. The
review must include:
(A) A verification of the need for
services with an indication of how the
verification was conducted;
(B) Identification of the Federal mental health programs in the area, and
the extent to which such existing programs can help alleviate the need;
(C) An identification of State, local,
and private mental health resources,
and the extent to which these resources can assume the workload without assistance under this section and
the extent to which supplemental assistance is warranted;
(D) A description of the needs; and
(E) A determination of whether the
plan adequately addresses the mental
health needs;
(iii) If the application is approved,
provide grant assistance to States or
the designated public or private entities;
(iv) If the application is approved,
monitor the progress of the program
and perform program oversight;
(v) Coordinate with, and provide program reports to, the Regional Administrator, and the Assistant Administrator for the Disaster Assistance Directorate;
(vi) Make the appeal determination,
for regular program grants, involving
allowable costs and termination for
cause as described in paragraph (j)(2) of
this section;
(vii) As part of the project monitoring responsibilities, report to the
Regional Administrator and Assistant
Administrator for the Disaster Assistance Directorate at least quarterly on
the progress of crisis counseling programs, in a report format jointly
agreed upon by the Secretary and
FEMA; provide special reports, as requested by the Regional Administrator, FCO, or Assistant Administrator for the Disaster Assistance Directorate;

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§§ 206.172–206.180

44 CFR Ch. I (10–1–11 Edition)

(viii) Require progress reports and
other reports from the grantee to facilitate his/her project monitoring responsibilities;
(ix) Properly account for all Federal
funds made available to grantees under
this section. Submit to the Assistant
Administrator for the Disaster Assistance Directorate, within 120 days of
completion of a program, a final accounting of all expenditures for the
program and return to FEMA all excess
funds. Attention is called to the reimbursement requirements of this part.
(3) The Assistant Administrator for
the Disaster Assistance Directorate
shall:
(i) Approve or disapprove a State’s
request for assistance based on recommendations of the Regional Administrator and the Secretary;
(ii) Obligate funds and authorize advances of funds to the DHHS;
(iii) Request that the Secretary designate a Project Officer;
(iv) Maintain liaison with the Secretary and Regional Administrator;
and
(v) Review and make determinations
on appeals, except for regular program
appeals involving allowable costs and
termination for cause as described in
paragraph (j)(2) of this section, and notify the State of the decision.
(j) Grant awards. (1) Neither the approval of any application nor the award
of any grant commits or obligates the
United States in any way to make any
additional,
supplemental,
continuation, or other award with respect to
any approved application or portion of
any approved application.
(2) Several other regulations of the
DHHS apply to grants under this section. These include, but are not limited
to:
45 CFR part 16—DHHS grant appeals procedures
42 CFR part 50, subpart D—PHS grant appeals procedures
45 CFR part 74—Administration of grants
45 CFR part 75—Informal grant appeals procedures (indirect cost rates and other cost
allocations)
45 CFR part 80—Nondiscrimination under
programs receiving Federal assistance
through the DHHS (effectuation of Title VI
of the Civil Rights Act of 1964)
45 CFR part 81—Practice and procedure for
hearings under part 80

45 CFR part 84—Nondiscrimination on the
basis of handicap in federally assisted programs
45 CFR part 86—Nondiscrimination on the
basis of sex in federally assisted programs
45 CFR part 91—Nondiscrimination on the
basis of age in federally assisted programs
45 CFR part 92—Uniform administrative requirements for grants and cooperative
agreements to State and local governments

(k) Federal audits. The crisis counseling program is subject to Federal
audit. The Assistant Administrator for
the Disaster Assistance Directorate,
the Regional Administrator, the DHS
Inspector General, The Secretary, and
the Comptroller General of the United
States, or their duly authorized representatives, shall have access to any
books, documents, papers, and records
that pertain to Federal funds, equipment, and supplies received under this
section for the purpose of audit and examination.
[54 FR 11615, Mar. 21, 1989, as amended at 68
FR 9900, Mar. 3, 2003]

§§ 206.172–206.180

[Reserved]

§ 206.181 Use of gifts and bequests for
disaster assistance purposes.
(a) General. FEMA sets forth procedures for the use of funds made possible
by a bequest of funds from the late
Cora C. Brown of Kansas City, Missouri, who left a portion of her estate
to the United States for helping victims of natural disasters and other disasters not caused by or attributable to
war. FEMA intends to use the funds,
and any others that may be bequeathed
under this authority, in the manner
and under the conditions described
below.
(b) Purposes for awarding funds.
Money from the Cora Brown Fund may
only be used to provided for disasterrelated needs that have not been or
will not be met by governmental agencies or any other organizations which
have programs to address such needs;
however, the fund is not intended to replace or supersede these programs. For
example, if assistance is available from
another source, including the Individual and Family Grant program and
government-sponsored disaster loan assistance, then money from the Cora
Brown Fund will not be available to

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Federal Emergency Management Agency, DHS
the applicant for the same purpose.
Listed below are the general categories
of assistance which can be provided by
the Cora Brown Fund:
(1) Disaster-related home repair and
rebuilding assistance to families for
permanent housing purposes, including
site acquisition and development, relocation of residences out of hazardous
areas, assistance with costs associated
with temporary housing or permanent
rehousing (e.g., utility deposits, access,
transportation, connection of utilities,
etc.);
(2) Disaster-related unmet needs of
families who are unable to obtain adequate assistance under the Act or from
other sources. Such assistance may include but is not limited to: health and
safety measures; evacuation costs; assistance delineated in the Act or other
Federal, State, local, or volunteer programs; hazard mitigation or floodplain
management purposes; and assistance
to self-employed persons (with no employees) to reestablish their businesses;
and
(3) Other services which alleviate
human suffering and promote the well
being of disaster victims. For example,
services to the elderly, to children, or
to handicapped persons, such as transportation, recreational programs, provision of special ramps, or hospital or
home visiting services. The funds may
be provided to individual disaster victims, or to benefit a group of disaster
victims.
(c) Conditions for use of the Cora
Brown Fund. (1) The Cora Brown Fund
is available only when the President
declares that a major disaster or emergency exists under the Act, only in
areas designated as eligible for Federal
disaster assistance through notice in
the FEDERAL REGISTER, and only at the
discretion of the Assistant Administrator for the Disaster Assistance Directorate. The fund is limited to the
initial endowment plus accrued interest, and this assistance program will
cease when the fund is used up.
(2) A disaster victim normally will
receive no more than $2,000 from this
fund in any one declared disaster unless the Assistant Administrator for
the Disaster Assistance Directorate determines that a larger amount is in the
best interest of the disaster victim and

§ 206.181

the Federal Government. Funds to provide service which benefit a group may
be awarded in an amount determined
by the Assistant Administrator for the
Disaster Assistance Directorate, based
on the Regional Administrator ’s recommendation.
(3) The fund may not be used in a way
that is inconsistent with other federally mandated disaster assistance or
insurance programs, or to modify other
generally applicable requirements.
(4) Funds awarded to a disaster victim may be provided by FEMA jointly
to the disaster victim and to a State or
local agency, or volunteer organization, to enable such an agent to assist
in providing the approved assistance to
an applicant. Example: Repair funds
may be provided jointly to an applicant
and the Mennonite Disaster Service,
who will coordinate the purchase of
supplies and provide the labor.
(5) Money from this fund will not duplicate assistance for which a person is
eligible from other sources.
(6) In order to comply with the Flood
Disaster Protection Act of 1973 (Pub. L.
93–234), as amended, any award for acquisition or construction purposes
shall carry a requirement that any adequate flood insurance policy be purchased and maintained. The Assistant
Administrator for the Disaster Assistance Directorate shall determine what
is adequate based on the purpose of the
award.
(7) The fund shall be administered in
an equitable and impartial manner
without discrimination on the grounds
of race, color, religion, national origin,
sex, age, or economic status.
(8) Funds awarded to a disaster victim from this fund may be combined
with funds from other sources.
(d) Administrative procedures. (1) The
Assistant Administrator for the Disaster Assistance Directorate, shall be
responsible for awarding funds and authorizing disbursement.
(2) The Chief Financial Officer shall
be responsible for fund accountability
and, in coordination with the Assistant
Administrator for the Disaster Assistance Directorate, for liaison with the
Department of the Treasury concerning the investment of excess

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§§ 206.182–206.190

44 CFR Ch. I (10–1–11 Edition)

money in the fund pursuant to the provisions contained in section 601 of the
Act.
(3) Each FEMA Regional Administrator may submit requests to the Assistant Administrator for the Disaster
Assistance Directorate on a disaster
victim’s behalf by providing documentation describing the needs of the
disaster victim, a verification of the
disaster victim’s claim, a record of
other assistance which has been or will
be available for the same purpose, and
his/her recommendation as to the
items and the amount. The Assistant
Administrator for the Disaster Assistance Directorate shall review the facts
and make a determination. If the
award amount is below $2,000, the Assistant Administrator for the Disaster
Assistance Directorate may appoint a
designee to have approval authority;
approval authority of $2,000 or above
shall be retained by the Assistant Administrator for the Disaster Assistance
Directorate. The Assistant Administrator for the Disaster Assistance Directorate shall notify the Chief Financial Officer of a decision for approval,
and the Chief Financial Officer shall
order a check to be sent to the disaster
victim (or jointly to the disaster victim and an assistance organization),
through the Regional Administrator.
The Assistant Administrator for the
Disaster Assistance Directorate shall
also notify the Regional Administrator
of the decision, whether for approval or
disapproval. The Regional Administrator shall notify the disaster victim
in writing, identify any award as assistance from the Cora Brown Fund,
and advise the recipient of appeal procedures.
(4) If the award is to be for a service
to a group of disaster victims, the Regional Administrator shall submit his/
her recommendation and supporting
documentation to the Assistant Administrator for the Disaster Assistance
Directorate (or his/her designee if the
award is below $2,000), who shall review
the information and make a determination. In cases of approval, the Assistant Administrator for the Disaster
Assistance Directorate shall request
the Chief Financial Officer to send a
check to the intended recipient or provider, as appropriate. The Assistant

Administrator for the Disaster Assistance Directorate shall notify the Regional Administrator of the decision.
The Regional Administrator shall notify a representative of the group in
writing.
(5) The Chief Financial Officer shall
process requests for checks, shall keep
records of disbursements and balances
in the account, and shall provide the
Assistant Administrator for the Disaster Assistance Directorate with quarterly reports.
(e) Audits. The Inspector General of
DHS may audit the use of money in
this account to determine whether the
funds are being administered according
to these regulations and whether the
financial management of the account
is adequate. The Inspector General
shall provide his/her findings to the Administrator, for information, comments and appropriate action. A copy
shall be provided to the Chief Financial
Officer for the same purpose.
§§ 206.182–206.190
§ 206.191

[Reserved]

Duplication of benefits.

(a) Purpose. This section establishes
the policies for implementing section
312 of the Stafford Act, entitled Duplication of Benefits. This section relates
to assistance for individuals and families.
(b) Government policy. (1) Federal
agencies providing disaster assistance
under the Act or under their own authorities triggered by the Act, shall cooperate to prevent and rectify duplication of benefits, according to the general policy guidance of the Federal
Emergency Management Agency. The
agencies shall establish appropriate
agency policies and procedures to prevent duplication of benefits.
(2) Major disaster and emergency assistance provided to individuals and
families under the Act, and comparable
disaster assistance provided by States,
local governments, and disaster assistance organizations, is not considered as
income or a resource when determining
eligibility for or benefit levels under
federally funded income assistance or
resource-tested programs. Examples of
federally funded income assistance or
resource-tested programs are the food

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Federal Emergency Management Agency, DHS
stamp program and welfare assistance
programs.
(c) FEMA policy. It is FEMA policy:
(1) To prevent duplication of benefits
between its own programs and insurance benefits, and between its own programs and other disaster assistance.
Assistance under the Act may be provided in instances where the applicant
has not received other benefits to
which he/she may be entitled by the
time of application and if the applicant
agrees to repay all duplicated assistance to the agency providing the Federal assistance;
(2) To examine a debt resulting from
duplication to determine that the likelihood of collecting the debt and the
best interests of the Federal Government justify taking the necessary recovery actions to remedy duplication
which has occurred when other assistance has become available;
(3) To assure uniformity in preventing duplication of benefits, by consulting with other Federal agencies
and by performing selected quality
control reviews, that the other disaster
relief agencies establish and follow
policies and procedures to prevent and
remedy duplication among their programs, other programs, and insurance
benefits; and
(4) To coordinate the effort of agencies providing assistance so that each
agency understands the prevention and
remedial policies of the others and is
able to fulfill its own responsibilities
regarding duplication of benefits.
(d) Guidance to prevent duplication of
benefits. (1) Delivery sequence. FEMA
provides the following policy and procedural guidance to ensure uniformity
in preventing duplication of benefits.
(i) Duplication occurs when an agency has provided assistance which was
the primary responsibility of another
agency, and the agency with primary
responsibility later provides assistance. A delivery sequence establishes
the order in which disaster relief agencies and organizations provide assistance. The specific sequence, in accordance with the mandates of the assistance programs, is to be generally followed in the delivery of assistance.
(ii) When the delivery sequence has
been disrupted, the disrupting agency
is responsible for rectifying the dupli-

§ 206.191

cation. The delivery sequence pertains
to that period of time in the recovery
phase when most of the traditional disaster assistance programs are available.
(2) The delivery sequence is, in order
of delivery:
(i) Volunteer agencies’ emergency assistance (except expendable items such
as clothes, linens, and basic kitchenware); insurance (including flood insurance);
(ii) Housing assistance pursuant to
section 408 of the Stafford Act.
(iii) Small Business Administration
and Farmers Home Administration disaster loans;
(iv) Other Needs assistance, pursuant
to section 408 of the Stafford Act or its
predecessor program, the Individual
and Family Grant Program.
(v) Volunteer agencies’ ‘‘additional
assistance’’ programs; and
(vi) The ‘‘Cora Brown Fund.’’
(3) Two significant points about the
delivery sequence are that:
(i) Each assistance agency should, in
turn, offer and be responsible for delivering assistance without regard to duplication with a program later in the
sequence; and
(ii) The sequence itself determines
what types of assistance can duplicate
other assistance (i.e., a Federal program can duplicate insurance benefits,
however, insurance benefits cannot duplicate the Federal assistance). An
agency’s position in the sequence determines the order in which it should
provide assistance and what other resources it must consider before it does
so.
(4) If following the delivery sequence
concept would adversely affect the
timely receipt of essential assistance
by a disaster victim, an agency may
offer assistance which is the primary
responsibility of another agency. There
also may be cases when an agency
(Agency B) delivers assistance which is
normally the primary responsibility of
another agency (Agency A) because
Agency A has, for good cause, denied
assistance. After the assistance is delivered, Agency A reopens the case. If
the primary response Agency A then
provides assistance, that Agency A is
responsible for coordinating with Agency B to either:

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§ 206.191

44 CFR Ch. I (10–1–11 Edition)

(i) Assist Agency B in preventing the
duplication of benefits, or
(ii) In the case where the disaster victim has refused assistance from Agency
A, notify Agency B that it must recover assistance previously provided.
(e) Program guidance—(1) Programs
under the Act vs. other agency assistance.
(i) In making an eligibility determination, the FEMA Regional Administrator, in the case of federally operated
programs, or the State, in the case of
State operated programs, shall determine whether assistance is the primary
responsibility of another agency to
provide, according to the delivery sequence; and determine whether that
primary response agency can provide
assistance in a timely way.
(ii) If it is determined that timely assistance can be provided by the agency
with primary responsibility, refrain
from providing assistance under the
Act. If it is determined that assistance
from the agency with primary responsibility will be delayed, assistance
under the Act may be provided, but
then must be recovered from the applicant when the other assistance becomes available.
(2) Programs under the Act vs. insurance. In making an eligibility determination, the FEMA Regional Administrator or State shall:
(i) Remind the applicant about his/
her responsibility to pursue an adequate settlement. The applicant must
provide information concerning insurance recoveries.
(ii) Determine whether the applicant’s insurance settlement will be sufficient to cover the loss or need without disaster assistance; and
(iii) Determine whether insurance
benefits (including flood insurance)
will be provided in a timely way. Where
flood insurance is involved, the Regional Administrator shall coordinate
with the Federal Insurance Administration. The purpose of this coordination is to obtain information about
flood insurance coverage and settlements.
(3) Random sample. Each disaster assistance agency is responsible for preventing and rectifying duplication of
benefits under the coordination of the
Federal Coordinating Officer (FCO) and
the general authority of section 312. To

determine whether duplication has occurred and established procedures have
been followed, the Regional Administrator shall, within 90 days after the
close of the disaster assistance programs application period, for selected
disaster declarations, examine on a
random sample basis, FEMA’s and
other government and voluntary agencies’ case files and document the findings in writing.
(4) Duplication when assistance under
the Act is involved. If duplication is discovered, the Regional Administrator
shall determine whether the duplicating agency followed its own remedial procedures.
(i) If the duplicating agency followed
its procedures and was successful in
correcting the duplication, the Regional Administrator will take no further action. If the agency was not successful in correcting the duplication,
and the Regional Administrator is satisfied that the duplicating agency followed its remedial procedures, no further action will be taken.
(ii) If the duplicating agency did not
follow its duplication of benefits procedures, or the Regional Administrator is
not satisfied that the procedures were
followed in an acceptable manner, then
the Regional Administrator shall provide an opportunity for the agency to
take the required corrective action. If
the agency cannot fulfill its responsibilities for remedial action, the Regional Administrator shall notify the
recipient of the excess assistance, and
after examining the debt, if it is determined that the likelihood of collecting
the debt and the best interests of the
Federal Government justify taking the
necessary recovery 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 Administrator’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 Administrator 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

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Federal Emergency Management Agency, DHS
312, the Regional Administrator 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 the Department of
Homeland Security’s Debt Collection
Regulations (6 CFR part 11—Claims).
[54 FR 11615, Mar. 21, 1989, as amended at 67
FR 61460, Sept. 30, 2002; 74 FR 15350, Apr. 3,
2009]

§§ 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

§ 206.201

(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. 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.
Generally, except as provided in
§ 206.202(f), the State for which the
emergency or major disaster is declared is the grantee. However, an Indian Tribal government may choose to
be a grantee, or it may act as a subgrantee under the State. If an Indian
Tribal government is the grantee, it
will assume the responsibilities of the
‘‘grantee’’ or ‘‘State’’ as described in
this part with respect to administration of the Public Assistance program.
(f) Hazard mitigation means any cost
effective measure which will reduce the
potential for damage to a facility from
a disaster event.
(g) Host-State. A State or Indian Tribal government that by agreement with

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§ 206.202

44 CFR Ch. I (10–1–11 Edition)

FEMA provides sheltering and/or evacuation support to evacuees from an impact-State. An Indian Tribal government may also be referred to as a
‘‘Host-Tribe.’’
(h) Impact-State. The State for which
the President has declared an emergency or major disaster and that, due
to a need to evacuate and/or shelter affected individuals outside the State,
requests such assistance from FEMA
pursuant to § 206.208.
(i) Indian Tribal government means
any federally recognized governing
body of an Indian or Alaska Native
Tribe, band, nation, pueblo, village, or
community that the Secretary of the
Interior acknowledges to exist as an
Indian Tribe under the Federally Recognized Tribe List Act of 1994, 25 U.S.C.
479a. This does not include Alaska Native corporations, the ownership of
which is vested in private individuals.
(j) Permanent work means that restorative work that must be performed
through repairs or replacement, to restore an eligible facility on the basis of
its predisaster design and current applicable standards.
(k) 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.
(l) 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.
(m) Project approval means the process in which the Regional Administrator, 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.

(n) Subgrant means an award of financial assistance under a grant by a
grantee to an eligible subgrantee.
(o) 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; 74 FR 60213, Nov. 20, 2009]

§ 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 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;
(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 Administrator for each
applicant who requests public assistance. You must send Requests to the
Regional Administrator 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)

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Federal Emergency Management Agency, DHS
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 Administrator 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 Administrator 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.
(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 this section.
(1) Host-State Evacuation and/or Sheltering. (i) General. A grant to a hostState for sheltering and/or evacuation
support is available under this section
when an impact-State requests direct
Federal assistance for sheltering and/or
evacuation
support
pursuant
to
§ 206.208. To receive this grant, a hostState must enter into a FEMA–HostState Agreement, amend its State Administrative Plan pursuant to § 206.207,
and submit a Standard Form SF424 Application for Federal Assistance directly
to FEMA to apply for reimbursement
of eligible costs for evacuating and/or
sheltering individuals from an impactState. Upon award, the host-State assumes the responsibilities of the
‘‘grantee’’ or ‘‘State’’ under this part
with respect to its grant award.

§ 206.203

(ii) Force Account Labor Costs. For the
performance of eligible evacuation and
sheltering support under sections 403 or
502 of the Stafford Act, the straighttime salaries and benefits of a hostState’s permanently employed personnel are eligible for reimbursement.
This is an exception to § 206.228(a)(2).
(2) Time limitations. The Regional Administrator 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 circumstances beyond the
grantee’s or subgrantee’s control.
[64 FR 55160, Oct. 12, 1999, as amended at 74
FR 15350, Apr. 3, 2009; 74 FR 60213, Nov. 20,
2009]

§ 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.

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§ 206.204

44 CFR Ch. I (10–1–11 Edition)

(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 Regional Administrator approve an alternate project.
(i) The alternate project option may
be taken only on permanent restorative work.
(ii) Federal funding for alternate
projects for damaged public facilities
will be 90 percent of the Federal share
of the Federal estimate of the cost of
repairing, restoring, reconstructing, or
replacing the facility and of management expenses.
(iii) Federal funding for alternate
projects for damaged private nonprofit
facilities will be 75 percent of the Federal share of the Federal estimate of
the cost of repairing, restoring, reconstructing, or replacing the facility and
of management expenses.
(iv) Funds contributed for alternate
projects may be used to repair or expand other selected public facilities, to
construct new facilities, or to fund hazard mitigation measures. These funds
may not be used to pay the nonFederal
share of any project, nor for any operating expense.
(v) Prior to the start of construction
of any alternate project the Grantee
shall submit for approval by the Regional Administrator the following: a
description of the proposed alternate
project(s); a schedule of work; and the
projected cost of the project(s). The
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; 73 FR 20551, Apr. 16,
2008]

§ 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.

(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 .......................................................

(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 Regional Administrator 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 Regional Administrator shall review the request and make a determination. The Grantee shall be notified
of the Regional Administrator’s determination in writing. If the Regional
Administrator approves the request,
the letter shall reflect the approved
completion date and any other requirements the Regional Administrator may
determine necessary to ensure that the
new completion date is met. If the Regional Administrator denies the time
extension request, the 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.

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Federal Emergency Management Agency, DHS
(e) Cost Overruns. (1) During the execution of approved work a subgrantee
may find that the actual project costs
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 Regional
Administrator for a final determination. All requests for the Regional Administrator’s approval will contain sufficient documentation to support the
eligibility of all claimed work and
costs. The Grantee must include a
written recommendation when forwarding the request. The Regional Administrator 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
Regional Administrator quarterly. The
Regional Administrator 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

§ 206.206

share to the subgrantee as soon as
practicable after Federal approval of
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 Regional Administrator 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 FEMAState 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 Regional Administrator shall
review the accounting to determine the
eligible amount of reimbursement for
each large project and approve eligible
costs. If a discrepancy between reported costs and approved funding exists, the Regional Administrator may
conduct field reviews to gather additional information. If discrepancies in
the claim cannot be resolved through a
field review, a Federal audit may be
conducted. If the Regional Administrator determines that eligible costs
exceed the initial approval, he/she will
obligate additional funds as necessary.
[55 FR 2304, Jan. 23, 1990, as amended at 64
FR 55161, Oct. 12, 1999]

§ 206.206

Appeals.

An eligible applicant, subgrantee, or
grantee may appeal any determination

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§ 206.207

44 CFR Ch. I (10–1–11 Edition)

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 Administrator. The grantee
shall review and evaluate all subgrantee appeals before submission to
the
Regional
Administrator.
The
grantee may make grantee-related appeals to the Regional Administrator.
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
Administrator will consider first appeals for public assistance-related decisions under subparts A through L of
this part.
(2) The Assistant Administrator for
the Disaster Assistance Directorate
will consider appeals of the Regional
Administrator’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 Administrator
within 60 days of receipt.
(3) Within 90 days following receipt of
an appeal, the Regional Administrator
(for first appeals) or Assistant Administrator for the Disaster Assistance Directorate (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 Administrator or Assistant Administrator for the Disaster Assistance Directorate for additional information will include a date by which
the information must be provided.
Within 90 days following the receipt of
the requested additional information
or following expiration of the period
for providing the information, the Regional Administrator or Assistant Administrator for the Disaster Assistance

Directorate will notify the grantee in
writing of the disposition of the appeal.
If the decision is to grant the appeal,
the Regional Administrator will take
appropriate implementing action.
(d) Technical Advice. In appeals involving highly technical issues, the Regional Administrator or Assistant Administrator for the Disaster Assistance
Directorate may, at 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 Administrator or Assistant Administrator for the Disaster Assistance
Directorate 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 Assistant Administrator for the
Disaster Assistance Directorate before
May 8, 1998 may be appealed to the Administrator in accordance with 44 CFR
206.440 as it existed before May 8, 1998
(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

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Federal Emergency Management Agency, DHS
functions, and the management and
oversight responsibilities of each.
(iii) Procedures for:
(A) Notifying potential applicants of
the availability of the program;
(B) Conducting briefings for potential
applicants and application procedures,
program eligibility guidance and program deadlines;
(C) Assisting FEMA in determining
applicant eligibility;
(D) Participating with FEMA in conducting damage surveys to serve as a
basis for obligations of funds to 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 13;
(I) Processing requests for advances
of funds and reimbursement; and
(J) Determining staffing and budgeting requirements necessary for proper program management.
(K) Determining the reasonable percentage or amount of pass-through
funds for management costs provided
under 44 CFR part 207 that the grantee
will make available to subgrantees,
and the basis, criteria, or formula for
determining the subgrantee percentage
or amount.
(2) The Grantee may request the Regional Administrator to provide technical assistance in the preparation of
such administrative plan.
(3) In accordance with the Interim
Rule published March 21, 1989, the
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 Regional Administrator annually.
In each disaster for which Public Assistance is included, the Regional Administrator shall request the Grantee
to prepare any amendments required to
meet current policy guidance.

§ 206.208

(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 13 or
OMB Circular A–110 as appropriate.
(2) Federal audit. In accordance with
44 CFR part 13, 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, as amended at 72 FR 57875, Oct. 11, 2007;
74 FR 15350, Apr. 3, 2009]

§ 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(1) and (4), 403, 407,
502(a)(1), (5) and (7) 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 Regional Administrator 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.

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§ 206.209

44 CFR Ch. I (10–1–11 Edition)

(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 Regional
Administrator 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 Regional Administrator.
(2) If all or any part of the requested
work falls within the statutory authority of another Federal agency, the Regional Administrator shall not approve
that portion of the work. In such case,
the unapproved portion of the request
will be referred to the appropriate
agency for action.
(3) If an impact-State requests assistance in providing evacuation and sheltering support outside an impactState, FEMA may directly reimburse a
host-State for such eligible costs
through a grant to a host-State under
an impact-State’s declaration, consistent with § 206.202(f)(1). FEMA may
award a grant to a host-State when
FEMA determines that a host-State
has sufficient capability to meet some
or all of the sheltering and/or evacuation needs of an impact-State, and a
host-State agrees in writing to provide
such support to an impact-State.
(d) Time limitation. 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 Regional Administrator
may extend this time limitation.
(e) Project management. (1) The performing Federal agency shall ensure
that the work is completed in accordance with the Regional Administrator’s approved scope of work, costs and
time limitations. The performing Fed-

eral agency shall also keep the Regional Administrator 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; 74 FR 60214, Nov. 20,
2009]

§ 206.209 Arbitration for Public Assistance determinations related to Hurricanes Katrina and Rita (Major
disaster declarations DR–1603, DR–
1604, DR–1605, DR–1606, and DR–
1607).
(a) Scope. Pursuant to section 601 of
the American Recovery and Reinvestment Act of 2009, Public Law 111–5, this
section establishes procedures for arbitration to resolve disputed Public Assistance applications under the following major disaster declarations:
DR–1603, DR–1604, DR–1605, DR–1606,
and DR–1607.
(b) Applicability. An applicant or subgrantee (hereinafter ‘‘applicant’’ for
purposes of this section) may request
arbitration of a determination made by
FEMA on an application for Public Assistance, provided that the total
amount of the project is greater than
$500,000, and provided that:
(1) the applicant is eligible to file an
appeal under § 206.206; or

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Federal Emergency Management Agency, DHS
(2) the applicant had a first or second
level appeal pending with FEMA pursuant to § 206.206 on or after February 17,
2009.
(c) Governing rules. An applicant that
elects arbitration agrees to abide by
this section and applicable guidance.
The arbitration will be conducted pursuant to procedure established by the
arbitration panel.
(d) Limitations—(1) Election of remedies. A request for arbitration under
this section is in lieu of filing or continuing an appeal under § 206.206.
(2) Final agency action under § 206.206.
Arbitration is not available for any
matter that obtained final agency action by FEMA pursuant to § 206.206
prior to February 17, 2009. Arbitration
is not available for determinations for
which the applicant failed to file a
timely appeal under the provisions of
§ 206.206 prior to August 31, 2009, or for
determinations which received a decision on a second appeal from FEMA
prior to February 17, 2009.
(e) Request for arbitration—(1) Content
of request. The request for arbitration
must contain a written statement and
all documentation supporting the position of the applicant, the disaster number, and the name and address of the
applicant’s authorized representative
or counsel.
(2) Submission by the applicant to the
Grantee, the FEMA Regional Administrator, and the arbitration administrator.
An applicant under paragraph (b)(1) of
this section must submit its request
for arbitration in writing simultaneously to the Grantee, the FEMA Regional Administrator, and the arbitration administrator within 30 calendar
days after receipt of notice of the determination that is the subject of the
arbitration request or by September 30,
2009, whichever is later. An applicant
under paragraph (b)(2) of this section
must make a request for arbitration in
writing and, if FEMA has not issued a
decision on the appeal, submit a withdrawal of the pending appeal, simultaneously to the Grantee, the FEMA Regional Administrator, and the arbitration administrator by October 30, 2009.
(3) Submission by the Grantee to the arbitration administrator and FEMA. Within 15 calendar days of receipt of the applicant’s request for arbitration, the

§ 206.209

Grantee must forward the name and
address of the Grantee’s authorized
representative or counsel, and may forward a written recommendation in support or opposition to the applicant’s request for arbitration, simultaneously
to the FEMA Regional Administrator,
the arbitration administrator, and the
applicant.
(4) Submission of FEMA’s response.
FEMA will submit a memorandum in
support of its position, a copy of the
Project Worksheet(s), and any other
supporting information, as well as the
name and address of its authorized representative or counsel, simultaneously
to the arbitration administrator, the
Grantee, and the applicant, within 30
calendar days of receipt of the applicant’s request for arbitration.
(5) Process for submissions. When submitting a request for arbitration, the
applicant should describe its claim
with sufficient detail so that the circumstances of the dispute are clear to
the arbitration panel. All papers, notices, or other documents submitted to
the arbitration administrator under
this section by the applicant, the
Grantee, or FEMA will be served on
each party’s authorized representative
or counsel. The submitting party will
make such service by courier or overnight delivery service (such as Federal
Express, DHL, United Parcel Service,
or the United States Postal Service
overnight delivery), addressed to the
party, representative, or counsel, as
applicable, at its last known address.
(f) Selection of arbitration panel. The
arbitration administrator will select
the arbitration panel for arbitration
and notify the applicant, FEMA, and
the Grantee of the names and identities of the arbitrators selected for the
panel.
(g) Preliminary conference. The arbitration panel will hold a preliminary
conference with the parties and/or representatives of the parties within 10
business days of the panel’s receipt of
FEMA’s response to the request for arbitration. The panel and the parties
will discuss the future conduct of the
arbitration, including clarification of
the disputed issues, request for disqualification of an arbitrator (if applicable), and any other preliminary matters. The date and place of any oral

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§ 206.209

44 CFR Ch. I (10–1–11 Edition)

hearing will be set at the preliminary
conference. The preliminary conference
will be conducted by telephone.
(h) Hearing—(1) Request for hearing.
The panel will provide the applicant
and FEMA with an opportunity to
make an oral presentation on the substance of the applicant’s claim in person, by telephone conference, or other
means during which all the parties
may simultaneously hear all other participants. If the applicant or FEMA
would like to request an oral hearing,
the request must be made no later than
the preliminary conference.
(2) Location of hearing. If an in-person
hearing is authorized, it will be held at
a hearing facility of the arbitration
panel’s choosing.
(3) Conduct of hearing. Each party
may present its position through oral
presentations by individuals designated
in advance of the hearing. These presentations may reference documents
submitted pursuant to paragraph (e) of
this section; the parties may not provide additional paper submissions at
the hearing. If the panel deems it appropriate or necessary, it may request
additional written materials from either or both parties or seek the advice
or expertise of independent scientific
or technical subject matter experts.
(4) Closing of hearing. The panel will
inquire of each party whether it has
any further argument. When satisfied
that the record is complete, the panel
will declare the hearing closed, unless
a post-hearing submission of additional
information or a memorandum of law
is to be provided in accordance with
this paragraph. The hearing will be declared closed as of the date set by the
panel for the submission of the additional information or the memorandum
of law.
(5) Time limits. The panel will endeavor to hold the hearing within 60 calendar days of the preliminary conference.
(6) Postponement. The arbitration
panel may postpone a hearing upon
agreement of the parties, or upon request of a party for good cause shown.
Within 10 business days of the postponement, the arbitration panel will
notify the parties of the rescheduled
date of the hearing.

(7) Record of the hearing. There will be
no recording of the hearing, unless a
party specifically requests and arranges for such recording at its own expense.
(8) Post-hearing submission of additional information. A party may file
with the arbitration panel additional
information or a memorandum of law
after the hearing upon the arbitration
panel’s request or upon the request of
one of the parties with the panel’s consent. The panel will set the time for
submission of the additional information or the memorandum of law.
(9) Reopening of hearing. The hearing
may be reopened on the panel’s initiative under compelling circumstances at
any time before the decision is made.
(i) Review by the arbitration panel. (1)
Determination of timeliness. Upon notification by FEMA, or on its own initiative, the arbitration panel will determine whether the applicant timely
filed a request for arbitration.
(2) Substantive review. The arbitration
panel will consider all relevant written
materials provided by the applicant,
the Grantee, and FEMA, as well as oral
presentations, if any. If the panel
deems it appropriate or necessary, it
may request additional written materials from either or both parties or
seek the advice or expertise of independent scientific or technical subject
matter experts.
(j) Ex parte communications. No party
and no one acting on behalf of any
party will engage in ex parte communications with a member of the arbitration panel. If a party or someone
acting on behalf of any party engages
in ex parte communications with a
member of the arbitration panel, the
party that engaged in such communication will provide a summary or a
transcript of the entire communication
to the other parties.
(k) Decision—(1) Time limits. The panel
will make every effort to issue a written decision within 60 calendar days
after the panel declares the hearing
closed pursuant to paragraph (h)(4) of
this section, or, if a hearing was not requested, within 60 calendar days following the receipt of FEMA’s response
to the request for arbitration. A decision of the panel may take longer than

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Federal Emergency Management Agency, DHS
60 calendar days if the arbitration involves a highly technical or complex
matter.
(2) Form and content. The decision of
the panel will be in writing and signed
by each member of the panel. The
panel will issue a reasoned decision
that includes a brief and informal discussion of the factual and legal basis
for the decision.
(3) Finality of decision. A decision of
the majority of the panel shall constitute a final decision, binding on all
parties. Final decisions are not subject
to further administrative review. Final
decisions are not subject to judicial review, except as permitted by 9 U.S.C.
10.
(4) Delivery of decision. Notice and delivery of the decision will be by facsimile or other electronic means and
by regular mail to each party or its authorized representative or counsel.
(l) Costs. FEMA will pay the fees associated with the arbitration panel, the
costs of any expert retained by the
panel, and the arbitration facility
costs, if any. The expenses for each
party, including attorney’s fees, representative fees, copying costs, costs
associated with attending any hearing,
or any other fees not listed in this
paragraph will be paid by the party incurring such costs.
(m) Guidance. FEMA may issue separate guidance as necessary to supplement this section.
[FR 44767, Aug. 31, 2009]

§§ 206.210–206.219

[Reserved]

Subpart H—Public Assistance
Eligibility
SOURCE: 55 FR 2307, Jan. 23, 1990, unless
otherwise noted.

§ 206.220

General.

This subpart provides policies and
procedures for determinations of eligibility of applicants for public assistance, eligibility of work, and eligibility
of costs for assistance under sections
402, 403, 406, 407, 418, 419, 421(d), 502, and
503 of the Stafford Act. Assistance
under this subpart must also conform
to requirements of 44 CFR part 201,
Mitigation Planning, and 44 CFR part

§ 206.221

206, subparts G—Public Assistance
Project Administration, I—Public Assistance Insurance Requirements, J—
Coastal Barrier Resources Act, and M—
Minimum
Standards.
Regulations
under 44 CFR part 9—Floodplain Management and 44 CFR part 10—Environmental Considerations, also apply to
this assistance.
[67 FR 8854, Feb. 26, 2002]

§ 206.221 Definitions.
(a) Educational institution means:
(1) Any elementary school as defined
by section 801(c) of the Elementary and
Secondary Education Act of 1965; or
(2) Any secondary school as defined
by section 801(h) of the Elementary and
Secondary Education Act of 1965; or
(3) Any institution of higher education as defined by section 1201 of the
Higher Education Act of 1965.
(b) Force account means an applicant’s own labor forces and equipment.
(c) Immediate threat means the threat
of additional damage or destruction
from an event which can reasonably be
expected to occur within five years.
(d) Improved property means a structure, facility or item of equipment
which was built, constructed or manufactured. Land used for agricultural
purposes is not improved property.
(e) Private nonprofit facility means
any private nonprofit educational, utility, emergency, medical, or custodial
care facility, including a facility for
the aged or disabled, and other facility
providing essential governmental type
services to the general public, and such
facilities on Indian reservations. Further definition is as follows:
(1) Educational facilities means classrooms plus related supplies, equipment,
machinery, and utilities of an educational institution necessary or appropriate for instructional, administrative, and support purposes, but does
not include buildings, structures and
related items used primarily for religious purposes or instruction.
(2) Utility means buildings, structures, or systems of energy, communication, water supply, sewage collection and treatment, or other similar
public service facilities.
(3) Irrigation facility means those facilities that provide water for essential
services of a governmental nature to

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§ 206.222

44 CFR Ch. I (10–1–11 Edition)

the general public. Irrigation facilities
include water for fire suppression, generating and supplying electricity, and
drinking water supply; they do not include water for agricultural purposes.
(4) Emergency facility means those
buildings, structures, equipment, or
systems used to provide emergency
services, such as fire protection, ambulance, or rescue, to the general public,
including the administrative and support facilities essential to the operation of such emergency facilities even
if not contiguous.
(5) Medical facility means any hospital, outpatient facility, rehabilitation facility, or facility for long term
care as such terms are defined in section 645 of the Public Health Service
Act (42 U.S.C. 2910) and any similar facility offering diagnosis or treatment
of mental or physical injury or disease,
includng the administrative and support facilities essential to the operation of such medical facilities even if
not contiguous.
(6) Custodial care facility means those
buildings, structures, or systems including those for essential administration and support, which are used to
provide institutional care for persons
who require close supervision and some
physical constraints on their daily activities for their self-protection, but do
not require day-to-day medical care.
(7) Other essential governmental service
facility means museums, zoos, community centers, libraries, homeless shelters, senior citizen centers, rehabilitation facilities, shelter workshops and
facilities which provide health and
safety services of a governmental nature. All such facilities must be open
to the general public.
(f) Private nonprofit organization
means any nongovernmental agency or
entity that currently has:
(1) An effective ruling letter from the
U.S. Internal Revenue Service, granting tax exemption under sections
501(c), (d), or (e) of the Internal Revenue Code of 1954, or
(2) Satisfactory evidence from the
State that the nonrevenue producing
organization or entity is a nonprofit
one organized or doing business under
State law.
(g) Public entity means an organization formed for a public purpose whose

direction and funding are provided by
one or more political subdivisions of
the State.
(h) Public facility means the following
facilities owned by a State or local
government: any flood control, navigation, irrigation, reclamation, public
power, sewage treatment and collection, water supply and distribution,
watershed development, or airport facility; any non-Federal aid, street,
road, or highway; and any other public
building, structure, or system, including those used for educational, recreational, or cultural purposes; or any
park.
(i) Standards means codes, specifications or standards required for the construction of facilities.
[55 FR 2307, Jan. 23, 1990, as amended at 58
FR 47994, Sept. 14, 1993; 66 FR 22445, May 4,
2001]

§ 206.222

Applicant eligibility.

The following entities are eligible to
apply for assistance under the State
public assistance grant:
(a) State and local governments.
(b) Private non-profit organizations
or institutions which own or operate a
private nonprofit facility as defined in
§ 205.221(e).
(c) Indian tribes or authorized tribal
organizations and Alaska Native villages or organizations, but not Alaska
Native Corporations, the ownership of
which is vested in private individuals.
§ 206.223

General work eligibility.

(a) General. To be eligible for financial assistance, an item of work must:
(1) Be required as the result of the
emergency or major disaster event;
(2) Be located within the designated
area of a major disaster or emergency
declaration, except that sheltering and
evacuation activities may be located
outside the designated area; and
(3) Be the legal responsibility of an
eligible applicant.
(b) Private nonprofit facilities. To be
eligible, all private nonprofit facilities
must be owned and operated by an organization meeting the definition of a
private nonprofit organization [see
§ 206.221(f)].
(c) Public entities. Facilities belonging
to a public entity may be eligible for

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Federal Emergency Management Agency, DHS
assistance when the application is submitted through the State or a political
subdivision of the State.
(d) Facilities serving a rural community
or unincorporated town or village. To be
eligible for assistance, a facility not
owned by an eligible applicant, as defined in § 206.222, must be owned by a
private nonprofit organization; and
provide an essential governmental
service to the general public. Applications for these facilities must be submitted through a State or political
subdivision of the State.
(e) Negligence. No assistance will be
provided to an applicant for damages
caused by its own negligence. If negligence by another party results in
damages, assistance may be provided,
but will be conditioned on agreement
by the applicant to cooperate with
FEMA in all efforts necessary to recover the cost of such assistance from
the negligent party.
[55 FR 2307, Jan. 23, 1990, as amended at 71
FR 40027, July 14, 2006; 74 FR 60214, Nov. 20,
2009]

§ 206.224

Debris removal.

(a) Public interest. Upon determination that debris removal is in the public interest, the Regional Administrator may provide assistance for the
removal of debris and wreckage from
publicly and privately owned lands and
waters. Such removal is in the public
interest when it is necessary to:
(1) Eliminate immediate threats to
life, public health, and safety; or
(2) Eliminate immediate threats of
significant damage to improved public
or private property; or
(3) Ensure economic recovery of the
affected community to the benefit of
the community-at-large; or
(4) Mitigate the risk to life and property by removing substantially damaged structures and associated appurtenances as needed to convert property
acquired through a FEMA hazard mitigation program to uses compatible
with open space, recreation, or wetlands management practices. Such removal must be completed within two
years of the declaration date, unless
the Assistant Administrator for the
Disaster Assistance Directorate extends this period.

§ 206.225

(b) Debris removal from private property. When it is in the public interest
for an eligible applicant to remove debris from private property in urban,
suburban and rural areas, including
large lots, clearance of the living, recreational and working area is eligible
except those areas used for crops and
livestock or unused areas.
(c) Assistance to individuals and private
organizations. No assistance will be provided directly to an individual or private organization, or to an eligible applicant for reimbursement of an individual or private organization, for the
cost of removing debris from their own
property. Exceptions to this are those
private nonprofit organizations operating eligible facilities.
[55 FR 2307, Jan. 23, 1990, as amended at 66
FR 33901, June 26, 2001]

§ 206.225

Emergency work.

(a) General. (1) Emergency protective
measures to save lives, to protect public health and safety, and to protect
improved property are eligible.
(2) In determining whether emergency work is required, the Regional
Administrator may require certification by local State, and/or Federal
officials that a threat exists, including
identification and evaluation of the
threat and recommendations of the
emergency work necessary to cope
with the threat.
(3) In order to be eligible, emergency
protective measures must:
(i) Eliminate or lessen immediate
threats to live, public health or safety;
or
(ii) Eliminate or lessen immediate
threats of significant additional damage to improved public or private property through measures which are cost
effective.
(b) Emergency access. An access facility that is not publicly owned or is not
the direct responsibility of an eligible
applicant for repair or maintenance
may be eligible for emergency repairs
or replacement provided that emergency repair or replacement of the facility economically eliminates the
need for temporary housing. The work
will be limited to that necessary for
the access to remain passable through

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§ 206.226

44 CFR Ch. I (10–1–11 Edition)

events which can be considered an immediate threat. The work must be performed by an eligible applicant and
will be subject to cost sharing requirements.
(c) Emergency communications. Emergency communications necessary for
the purpose of carrying out disaster relief functions may be established and
may be made available to State and
local government officials as deemed
appropriate. Such communications are
intended to supplement but not replace
normal communications that remain
operable after a major disaster. FEMA
funding for such communications will
be discontinued as soon as the needs
have been met.
(d) Emergency public transportation.
Emergency public transportation to
meet emergency needs and to provide
transportation to public places and
such other places as necessary for the
community to resume its normal pattern of life as soon as possible is eligible. Such transportation is intended to
supplement but not replace predisaster
transportation facilities that remain
operable after a major disaster. FEMA
funding for such transportation will be
discontinued as soon as the needs have
been met.
§ 206.226 Restoration of damaged facilities.
Work to restore eligible facilities on
the basis of the design of such facilities
as they existed immediately prior to
the disaster and in conformity with the
following is eligible:
(a) Assistance under other Federal
agency (OFA) programs. (1) Generally,
disaster assistance will not be made
available under the Stafford Act when
another Federal agency has specific authority to restore facilities damaged or
destroyed by an event which is declared a major disaster.
(2) An exception to the policy described in paragraph (a)(1) of this section exists for public elementary and
secondary school facilities which are
otherwise eligible for assistance from
the Department of Education (ED)
under 20 U.S.C. 241–1 and 20 U.S.C. 646.
Such facilities are also eligible for assistance from FEMA under the Stafford
Act, and grantees shall accept applica-

tions from local educational agencies
for assistance under the Stafford Act.
(3) The exception does not cover payment of increased current operating expenses or replacement of lost revenues
as provided in 20 U.S.C. 241–1(a) and implemented by 34 CFR 219.14. Such assistance shall continue to be granted
and administered by the Department of
Education.
(b) Mitigation planning. In order to receive assistance under this section, the
State or Indian Tribal government applying to FEMA as a grantee must
have in place a FEMA approved State
or Tribal Mitigation Plan, as applicable, in accordance with 44 CFR part 201.
(c) Private nonprofit facilities. Eligible
private nonprofit facilities may receive
funding under the following conditions:
(1) The facility provides critical services, which include power, water (including water provided by an irrigation
organization or facility in accordance
with § 206.221(e)(3)), sewer services,
wastewater treatment, communications, emergency medical care, fire department services, emergency rescue,
and nursing homes; or
(2) The private nonprofit organization not falling within the criteria of
§ 206.226(c)(1) has applied for a disaster
loan under section 7(b) of the Small
Business Act (15 U.S.C.636(b)) and
(i) The Small Business Administration has declined the organization’s application; or
(ii) Has eligible damages greater than
the maximum amount of the loan for
which it is eligible, in which case the
excess damages are eligible for FEMA
assistance.
(d) Standards. For the costs of Federal, State, and local repair or replacement standards which change the
predisaster construction of facility to
be eligible, the standards must:
(1) Apply to the type of repair or restoration required;
(Standards may be different for new
construction and repair work)
(2) Be appropriate to the predisaster
use of the facility;
(3)(i) Be found reasonable, in writing,
and formally adopted and implemented
by the State or local government on or
before the disaster declaration date or
be a legal Federal requirement applicable to the type of restoration.

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Federal Emergency Management Agency, DHS
(ii) This paragraph (d) applies to
local governments on January 1, 1999
and to States on January 1, 2000. Until
the respective applicability dates, the
standards must be in writing and formally adopted by the applicant prior to
project approval or be a legal Federal
or State requirement applicable to the
type of restoration.
(4) Apply uniformly to all similar
types of facilities within the jurisdiction of owner of the facility; and
(5) For any standard in effect at the
time of a disaster, it must have been
enforced during the time it was in effect.
(e) Hazard mitigation. In approving
grant assistance for restoration of facilities, the Regional Administrator
may require cost effective hazard mitigation measures not required by applicable standards. The cost of any requirements for hazard mitigation
placed on restoration projects by
FEMA will be an eligible cost for
FEMA assistance.
(f) Repair vs. replacement. (1) A facility is considered repairable when disaster damages do not exceed 50 percent
of the cost of replacing a facility to its
predisaster condition, and it is feasible
to repair the facility so that it can perform the function for which it was
being used as well as it did immediately prior to the disaster.
(2) If a damaged facility is not repairable in accordance with paragraph
(d)(1) of this section, approved restorative work may include replacement of
the facility. The applicant may elect to
perform repairs to the facility, in lieu
of replacement, if such work is in conformity with applicable standards.
However, eligible costs shall be limited
to the less expensive of repairs or replacement.
(3) An exception to the limitation in
paragraph (d)(2) of this section may be
allowed for facilities eligible for or on
the National Register of Historic Properties. If an applicable standard requires repair in a certain manner, costs
associated with that standard will be
eligible.
(g) Relocation. (1) The Regional Administrator may approve funding for
and require restoration of a destroyed
facility at a new location when:

§ 206.226

(i) The facility is and will be subject
to repetitive heavy damage;
(ii) The approval is not barred by
other provisions of title 44 CFR; and
(iii) The overall project, including all
costs, is cost effective.
(2) When relocation is required by the
Regional Administrator, eligible work
includes land acquisition and ancillary
facilities such as roads and utilities, in
addition to work normally eligible as
part of a facility reconstruction. Demolition and removal of the old facility is
also an eligible cost.
(3) When relocation is required by the
Regional Administrator, no future
funding for repair or replacement of a
facility at the original site will be approved, except those facilities which
facilitate an open space use in accordance with 44 CFR part 9.
(4) When relocation is required by the
Regional Administrator, and, instead
of relocation, the applicant requests
approval of an alternate project [see
§ 206.203(d)(2)], eligible costs will be
limited to 90 percent of the estimate of
restoration at the original location excluding hazard mitigation measures.
(5) If relocation of a facility is not
feasible or cost effective, the Regional
Administrator shall disapprove Federal
funding for the original location when
he/she determines in accordance with
44 CFR parts 9, 10, 201, or subpart M of
this part 206, that restoration in the
original location is not allowed. In
such cases, an alternative project may
be applied for.
(h) Equipment and furnishings. If
equipment and furnishings are damaged beyond repair, comparable items
are eligible as replacement items.
(i) Library books and publications. Replacement of library books and publications is based on an inventory of the
quantities of various categories of
books or publications damaged or destroyed. Cataloging and other work incidental to replacement are eligible.
(j) Beaches. (1) Replacement of sand
on an unimproved natural beach is not
eligible.
(2) Improved beaches. Work on an improved beach may be eligible under the
following conditions:
(i) The beach was constructed by the
placement of sand (of proper grain size)

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§ 206.227

44 CFR Ch. I (10–1–11 Edition)

to a designed elevation, width, and
slope; and
(ii) A maintenance program involving periodic renourishment of sand
must have been established and adhered to by the applicant.
(k) Restrictions—(1) Alternative use facilities. If a facility was being used for
purposes other than those for which it
was designed, restoration will only be
eligible to the extent necessary to restore the immediate predisaster alternate purpose.
(2) Inactive facilities. Facilities that
were not in active use at the time of
the disaster are not eligible except in
those instances where the facilities
were only temporarily inoperative for
repairs or remodeling, or where active
use by the applicant was firmly established in an approved budget or the
owner can demonstrate to FEMA’s satisfaction an intent to begin use within
a reasonable time.
[55 FR 2307, Jan. 23, 1990, as amended at 58
FR 55022, Oct. 25, 1993; 63 FR 5897, Feb. 5, 1998;
66 FR 22445, May 4, 2001; 67 FR 8854, Feb. 26,
2002; 68 FR 61371, Oct. 28, 2003; 69 FR 55097,
Sept. 13, 2004; 74 FR 15350, Apr. 3, 2009; 74 FR
47482, Sept. 16, 2009]

§ 206.227 Snow assistance.
Emergency or major disaster declarations based on snow or blizzard conditions will be made only for cases of
record or near record snowstorms, as
established by official government
records. Federal assistance will be provided for all costs eligible under 44 CFR
206.225 for a specified period of time
which will be determined by the circumstances of the event.
[62 FR 45330, Aug. 27, 1997]

§ 206.228 Allowable costs.
General policies for determining allowable costs are established in 44 CFR
13.22. Exceptions to those policies as allowed in 44 CFR 13.4 and 13.6 are explained below.
(a) Eligible direct costs—(1) Applicantowned equipment. Reimbursement for
ownership and operation costs of applicant-owned equipment used to perform
eligible work shall be provided in accordance with the following guidelines:
(i) Rates established under State guidelines. In those cases where an applicant
uses reasonable rates which have been

established or approved under State
guidelines, in its normal daily operations, reimbursement for applicantowned equipment which has an hourly
rate of $75 or less shall be based on
such rates. Reimbursement for equipment which has an hourly rate in excess of $75 shall be determined on a
case by case basis by FEMA.
(ii) Rates established under local guidelines. Where local guidelines are used to
establish equipment rates, reimbursement will be based on those rates or
rates in a Schedule of Equipment Rates
published by FEMA, whichever is
lower. If an applicant certifies that its
locally established rates do not reflect
actual costs, reimbursement may be
based on the FEMA Schedule of Equipment Rates, but the applicant will be
expected to provide documentation if
requested. If an applicant wishes to
claim an equipment rate which exceeds
the FEMA Schedule, it must document
the basis for that rate and obtain
FEMA approval of an alternate rate.
(iii) No established rates. The FEMA
Schedule of Equipment Rates will be
the basis for reimbursement in all
cases where an applicant does not have
established equipment rates.
(2) Force Account Labor Costs. The
straight- or regular-time salaries and
benefits of a subgrantee’s permanently
employed personnel are not eligible in
calculating the cost of eligible work
under sections 403 and 407 of the Stafford Act, 42 U.S.C. 5170b and 5173. For
the performance of eligible permanent
restoration under section 406 of the
Stafford Act, 42 U.S.C. 5172, straighttime salaries and benefits of a subgrantee’s permanently employed personnel are eligible.
(3) Administrative and management
costs for major disasters and emergencies will be paid in accordance with
44 CFR part 207.
(b) [Reserved]
[55 FR 2307, Jan. 23, 1990, as amended at 58
FR 47996, Sept. 14, 1993; 63 FR 64426, Nov. 20,
1998; 64 FR 55161, Oct. 12, 1999; 72 FR 57875,
Oct. 11, 2007]

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Federal Emergency Management Agency, DHS
§§ 206.229–206.249

[Reserved]

Subpart I—Public Assistance
Insurance Requirements
SOURCE: 56 FR 64560, Dec. 11, 1991, unless
otherwise noted.

§ 206.250

General.

(a) Sections 311 and 406(d) of the Stafford Act, and the Flood Disaster Protection Act of 1973, Public Law 93–234,
set forth certain insurance requirements which apply to disaster assistance provided by FEMA. The requirements of this subpart apply to all assistance provided pursuant to section
406 of the Stafford Act with respect to
any major disaster declared by the
President after November 23, 1988.
(b) Insurance requirements prescribed in this subpart shall apply
equally to private nonprofit (PNP) facilities which receive assistance under
section 406 of the Act. PNP organizations shall submit the necessary documentation and assurances required by
this subpart to the Grantee.
(c) Actual and anticipated insurance
recoveries shall be deducted from otherwise eligible costs, in accordance
with this subpart.
(d) The full coverage available under
the standard flood insurance policy
from the National Flood Insurance
Program (NFIP) will be subtracted
from otherwise eligible costs for a
building and its contents within the
special flood hazard area in accordance
with § 206.252.
(e) The insurance requirements of
this subpart should not be interpreted
as a substitute for various hazard mitigation techniques which may be available to reduce the incidence and severity of future damage.
§ 206.251

Definitions.

(a) Assistance means any form of a
Federal grant under section 406 of the
Stafford Act to replace, restore, repair,
reconstruct, or construct any facility
and/or its contents as a result of a
major disaster.
(b) Building means a walled and
roofed structure, other than a gas, or
liquid storage tank, that is principally
above ground and affixed to a perma-

§ 206.252

nent site, as well as a manufactured
home on a permanent foundation.
(c) Community means any State or political subdivision thereof, or any Indian tribe or authorized tribal organization, or Alaskan Native Village or
authorized native organization which
has authority to adopt and enforce
floodplain management regulations for
the areas within its jurisdiction.
(d) National Flood Insurance Program
(NFIP) means the program authorized
by the National Flood Insurance Act of
1968, as amended, 42 U.S.C. 4001 et seq.
(e) Special flood hazard area means an
area having special flood, mudslide,
and/or flood-related erosion hazards,
and shown on a Flood Hazard Boundary
map (FHBM) or the Flood Insurance
Rate Map (FIRM) issued by FEMA as
Zone A, AO, A1–30, AE, A99, AH, VO,
V1–30 VE, V, M, or E. ‘‘Special flood
hazard area’’ is synonymous with
‘‘special hazard area’’, as defined in 44
CFR part 59.
(f) Standard Flood Insurance Policy
means the flood insurance policy issued
by the Federal Insurance Administrator, or by a Write-Your-Own Company pursuant to 44 CFR 62.23.
§ 206.252 Insurance requirements for
facilities damaged by flood.
(a) Where an insurable building damaged by flooding is located in a special
flood hazard area identified for more
than one year by the Administrator,
assistance pursuant to section 406 of
the Stafford Act shall be reduced. The
amount of the reduction shall be the
maximum amount of the insurance
proceeds which would have been received had the building and its contents been fully covered by a standard
flood insurance policy.
(b) The reduction stated above shall
not apply to a PNP facility which
could not be insured because it was located in a community not participating in the NFIP. However, the provisions of the Flood Disaster Protection Act of 1973 prohibit approval of assistance for the PNP unless the community agrees to participate in the
NFIP within six months after the
major disaster declaration date, and
the required flood insurance is purchased.

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§ 206.253

44 CFR Ch. I (10–1–11 Edition)

(c) Prior to approval of a Federal
grant for the restoration of a facility
and its contents which were damaged
by a flood, the Grantee shall notify the
Regional Administrator of any entitlement to an insurance settlement or recovery. The Regional Administrator
shall reduce the eligible costs by the
amount of insurance proceeds which
the grantee receives.
(d) The grantee or subgrantee is required to obtain and maintain flood insurance in the amount of eligible disaster assistance, as a condition of receiving Federal assistance that may be
available. This requirement also applies to insurable flood damaged facilities located outside a special flood hazard area when it is reasonably available, adequate, and necessary. However, the Regional Administrator shall
not require greater types and amounts
of insurance than are certified as reasonable by the State Insurance Commissioner. The requirement to purchase flood insurance is waived when
eligible costs for an insurable facility
do not exceed $5,000.
§ 206.253 Insurance requirements for
facilities damaged by disasters
other than flood.
(a) Prior to approval of a Federal
grant for the restoration of a facility
and its contents which were damaged
by a disaster other than flood, the
Grantee shall notify the Regional Administrator of any entitlement to insurance settlement or recovery for
such facility and its contents. The Regional Administrator shall reduce the
eligible costs by the actual amount of
insurance proceeds relating to the eligible costs.
(b)(1) Assistance under section 406 of
the Stafford Act will be approved only
on the condition that the grantee obtain and maintain such types and
amounts of insurance as are reasonable
and necessary to protect against future
loss to such property from the types of
hazard which caused the major disaster. The extent of insurance to be required will be based on the eligible
damage that was incurred to the damaged facility as a result of the major
disaster. The Regional Administrator
shall not require greater types and extent of insurance than are certified as

reasonable by the State Insurance
Commissioner.
(2) Due to the high cost of insurance,
some applicants may request to insure
the damaged facilities under a blanket
insurance policy covering all their facilities, an insurance pool arrangement, or some combination of these options. Such an arrangement may be accepted for other than flood damages.
However, if the same facility is damaged in a similar future disaster, eligible costs will be reduced by the amount
of eligible damage sustained on the
previous disaster.
(c) The Regional Administrator shall
notify the Grantee of the type and
amount of insurance required. The
grantee may request that the State Insurance Commissioner review the type
and extent of insurance required to
protect against future loss to a disaster-damaged facility, the Regional
Administrator shall not require greater
types and extent of insurance than are
certified as reasonable by the State Insurance Commissioner.
(d) The requirements of section 311 of
the Stafford Act are waived when eligible costs for an insurable facility do
not exceed $5,000. The Regional Administrator may establish a higher waiver
amount based on hazard mitigation initiatives which reduce the risk of future
damages by a disaster similar to the
one which resulted in the major disaster declaration which is the basis for
the application for disaster assistance.
(e) The Grantee shall provide assurances that the required insurance coverage will be maintained for the anticipated life of the restorative work or
the insured facility, whichever is the
lesser.
(f) No assistance shall be provided
under section 406 of the Stafford Act
for any facility for which assistance
was provided as a result of a previous
major disaster unless all insurance required by FEMA as a condition of the
previous assistance has been obtained
and maintained.

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Federal Emergency Management Agency, DHS
§§ 206.254–206.339

[Reserved]

Subpart J—Coastal Barrier
Resources Act
SOURCE: 55 FR 2311, Jan. 23, 1990, unless
otherwise noted.

§ 206.340

Purpose of subpart.

This subpart implements the Coastal
Barrier Resources Act (CBRA) (Pub. L.
97–348) as that statute applies to disaster relief granted to individuals and
State and local governments under the
Stafford Act. CBRA prohibits new expenditures and new financial assistance
within the Coastal Barrier Resources
System (CBRS) for all but a few types
of activities identified in CBRA. This
subpart specifies what actions may and
may not be carried out within the
CBRS. It establishes procedures for
compliance with CBRA in the administration of disaster assistance by
FEMA.
§ 206.341

Policy.

It shall be the policy of FEMA to
achieve the goals of CBRA in carrying
out disaster relief on units of the
Coastal Barrier Resources System. It is
FEMA’s intent that such actions be
consistent with the purpose of CBRA to
minimize the loss of human life, the
wasteful expenditure of Federal revenues, and the damage to fish, wildlife
and other natural resources associated
with coastal barriers along the Atlantic and Gulf coasts and to consider the
means and measures by which the longterm conservation of these fish, wildlife, and other natural resources may
be achieved under the Stafford Act.
§ 206.342

Definitions.

Except as otherwise provided in this
subpart, the definitions set forth in
part 206 of subchapter D are applicable
to this subject.
(a) Consultation means that process
by which FEMA informs the Secretary
of the Interior through his/her designated agent of FEMA proposed disaster assistance actions on a designated unit of the Coastal Barrier Resources System and by which the Secretary makes comments to FEMA
about the appropriateness of that ac-

§ 206.342

tion. Approval by the Secretary is not
required in order that an action be carried out.
(b) Essential link means that portion
of a road, utility, or other facility originating outside of the system unit but
providing access or service through the
unit and for which no alternative route
is reasonably available.
(c) Existing facility on a unit of CBRS
established by Public Law 97–348 means
a publicly owned or operated facility
on which the start of a construction
took place prior to October 18, 1982, and
for which this fact can be adequately
documented. In addition, a legally
valid building permit or equivalent
documentation, if required, must have
been obtained for the construction
prior to October 18, 1982. If a facility
has been substantially improved or expanded since October 18, 1982, it is not
an existing facility. For any other unit
added to the CBRS by amendment to
Public Law 97–348, the enactment date
of such amendment is substituted for
October 18, 1982, in this definition.
(d) Expansion means changing a facility to increase its capacity or size.
(e) Facility means ‘‘public facility’’ as
defined in § 206.201. This includes any
publicly owned flood control, navigation, irrigation, reclamation, public
power, sewage treatment and collection, water supply and distribution,
watershed development, or airport facility; and nonfederal-aid street, road,
or highway; and any other public building, structure, or system, including
those used for educational, recreational, or cultural purposes, or any
park.
(f) Financial assistance means any
form of Federal loan, grant guaranty,
insurance, payment rebate, subsidy or
any other form of direct or indirect
Federal assistance.
(g) New financial assistance on a unit
of the CBRS established by Public Law
97–348 means an approval by FEMA of a
project application or other disaster
assistance after October 18, 1982. For
any other unit added to the CBRS by
amendment to Public Law 97–348, the
enactment date such amendment is
substituted for October 18, 1982, in this
definition.

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§ 206.343

44 CFR Ch. I (10–1–11 Edition)

(h) Start of construction for a structure means the first placement of permanent construction, such as the
placement of footings or slabs or any
work beyond the stage of excavation.
Permanent construction for a structure does not include land preparation
such as clearing, grading, and placement of fill, nor does it include excavation for a basement, footings, or
piers. For a facility which is not a
structure, start of construction means
the first activity for permanent construction of a substantial part of the
facility. Permanent construction for a
facility does not include land preparation such as clearing and grubbing but
would include excavation and placement of fill such as for a road.
(i) Structure means a walled and
roofed building, including a gas or liquid storage tank, that is principally
above ground, as well as a mobile
home.
(j) Substantial improvement means any
repair, reconstruction or other improvement of a structure or facility,
that has been damaged in excess of, or
the cost of which equals or exceeds, 50
percent of the market value of the
structure or placement cost of the facility (including all ‘‘public facilities’’)
as defined in the Stafford Act) either:
(1) Before the repair or improvement
is started; or
(2) If the structure or facility has
been damaged and is proposed to be restored, before the damage occurred. If a
facility is a link in a larger system, the
percentage of damage will be based on
the relative cost of repairing the damaged facility to the replacement cost of
that portion of the system which is
operationally dependent on the facility. The term substantial improvement
does not include any alternation of a
structure or facility listed on the National Register of Historic Places or a
State Inventory of Historic Places.
(k) System unit means any undeveloped coastal barrier, or combination of
closely related undeveloped coastal
barriers included within the Coastal
Barrier Resources System as established by the section 4 of the CBRA, or
as modified by the Secretary in accordance with that statute.

§ 206.343

Scope.

(a) The limitations on disaster assistance as set forth in this subpart apply
only to FEMA actions taken on a unit
of the Coastal Barrier Resources System or any conduit to such unit, including, but not limited to a bridge,
causeway, utility, or similar facility.
(b) FEMA assistance having a social
program orientation which is unrelated
to development is not subject to the requirements of these regulations. This
assistance includes:
(1) Individual and Family Grants
that are not for acquisition or construction purposes;
(2) Crisis counseling;
(3) Disaster Legal services; and
(4) Disaster unemployment assistance.
§ 206.344 Limitations on Federal expenditures.
Except as provided in §§ 206.345 and
206.346, no new expenditures or financial assistance may be made available
under authority of the Stafford Act for
any purpose within the Coastal Barrier
Resources System, including but not
limited to:
(a) Construction, reconstruction, replacement, repair or purchase of any
structure, appurtenance, facility or related infrastructure;
(b) Construction, reconstruction, replacement, repair or purchase of any
road, airport, boat landing facility, or
other facility on, or bridge or causeway
to, any System unit; and
(c) Carrying out of any project to
prevent the erosion of, or to otherwise
stabilize, any inlet, shoreline, or
inshore area, except that such assistance and expenditures may be made
available on units designated pursuant
to Section 4 on maps numbered S01
through S08 for purposes other than encouraging development and, in all
units, in cases where an emergency
threatens life, land, and property immediately adjacent to that unit.
§ 206.345

Exceptions.

The following types of disaster assistance actions are exceptions to the
prohibitions of § 206.344.

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Federal Emergency Management Agency, DHS
(a) After consultation with the Secretary of the Interior, the Regional Administrator may make disaster assistance available within the CBRS for:
(1) Replacement, reconstruction, or
repair, but not the expansion, of publicly owned or publicly operated roads,
structures, or facilities that are essential links in a larger network or system;
(2) Repair of any facility necessary
for the exploration, extraction, or
transportation of energy resources
which activity can be carried out only
on, in, or adjacent to coastal water
areas because the use or facility requires access to the coastal water
body; and
(3) Restoration of existing channel
improvements and related structures,
such as jetties, and including the disposal of dredge materials related to
such improvements.
(b) After consultation with the Secretary of the Interior, the Regional Administrator may make disaster assistance available within the CBRS for the
following types of actions, provided
such assistance is consistent with the
purposes of CBRA;
(1) Emergency actions essential to
the saving of lives and the protection
of property and the public health and
safety, if such actions are performed
pursuant to sections 402, 403, and 502 of
the Stafford Act and are limited to actions that are necessary to alleviate
the impacts of the event;
(2) Replacement, reconstruction, or
repair, but not the expansion, of publicly owned or publicly operated roads,
structures, or facilities, except as provided in § 206.347(c)(5);
(3) Repair of air and water navigation
aids and devices, and of the access
thereto;
(4) Repair of facilities for scientific
research, including but not limited to
aeronautical, atmospheric, space, geologic, marine, fish and wildlife and
other research, development, and applications;
(5) Repair of facilities for the study,
management, protection and enhancement of fish and wildlife resources and
habitats, including but not limited to,
acquisition of fish and wildlife habitats
and
related
lands,
stabilization

§ 206.346

projects for fish and wildlife habitats,
and recreational projects; and
(6) Repair of nonstructural projects
for shoreline stabilization that are designed to mimic, enhance, or restore
natural stabilization systems.
§ 206.346 Applicability to disaster assistance.
(a) Emergency assistance. The Regional Administrator may approve assistance pursuant to sections 402, 403,
or 502 of the Stafford Act, for emergency actions which are essential to
the saving of lives and the protection
of property and the public health and
safety, are necessary to alleviate the
emergency, and are in the public interest. Such actions include but are not
limited to:
(1) Removal of debris from public
property;
(2) Emergency protection measures
to prevent loss of life, prevent damage
to improved property and protect public health and safety;
(3) Emergency restoration of essential community services such as electricity, water or sewer;
(4) Provision of access to a private
residence;
(5) Provision of emergency shelter by
means of providing emergency repair of
utilities, provision of heat in the season requiring heat, or provision of
minimal cooking facilities;
(6) Relocation of individuals or property out of danger, such as moving a
mobile home to an area outside of the
CBRS (but disaster assistance funds
may not be used to relocate facilities
back into the CBRS);
(7) Home repairs to private owner-occupied primary residences to make
them habitable;
(8) Housing eligible families in existing resources in the CBRS; and
(9) Mortgage and rental payment assistance.
(b) Permanent restoration assistance.
Subject to the limitations set out
below, the Regional Administrator
may approve assistance for the repair,
reconstruction, or replacement but not
the expansion of the following publicly
owned or operated facilities and certain private nonprofit facilities.
(1) Roads and bridges;
(2) Drainage structures, dams, levees;

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§ 206.347

44 CFR Ch. I (10–1–11 Edition)

(3) Buildings and equipment;
(4) Utilities (gas, electricity, water,
etc.); and
(5) Park and recreational facilities.
§ 206.347 Requirements.
(a) Location determination. For each
disaster assistance action which is proposed on the Atlantic or Gulf Coasts,
the Regional Administrator shall:
(1) Review a proposed action’s location to determine if the action is on or
connected to the CBRS unit and thereby subject to these regulations. The appropriate Department of Interior map
identifying units of the CBRS will be
the basis of such determination. The
CBRS units are also identified on
FEMA Flood Insurance Maps (FIRM’s)
for the convenience of field personnel.
(2) If an action is determined not to
be on or connected to a unit of the
CBRS, no further requirements of these
regulations needs to be met, and the
action may be processed under other
applicable disaster assistance regulations.
(3) If an action is determined to be on
or connected to a unit of the CBRS, it
is subject to the consultation and consistency requirements of CBRA as prescribed in §§ 206.348 and 206.349.
(b) Emergency disaster assistance. For
each emergency disaster assistance action listed in § 206.346(a), the Regional
Administrator shall perform the required consultation. CBRA requires
that FEMA consult with the Secretary
of the Interior before taking any action
on a System unit. The purpose of such
consultation is to solicit advice on
whether the action is or is not one
which is permitted by section 6 of
CBRA and whether the action is or is
not consistent with the purposes of
CBRA as defined in section 1 of that
statute.
(1) FEMA has conducted advance consultation with the Department of the
Interior concerning such emergency actions. The result of the consultation is
that the Secretary of the Interior
through the Assistance Secretary for
Fish and Wildlife and Parks has concurred that the emergency work listed
in § 206.346(a) is consistent with the
purposes of CBRA and may be approved
by FEMA without additional consultation.

(2) Notification. As soon as practicable, the Regional Administrator
will notify the designated Department
of the Interior representative at the regional level of emergency projects that
have been approved. Upon request from
the Secretary of the Interior, the Director, Office of Environmental Planning and Historic Preservation, Mitigation Directorate will supply reports of
all current emergency actions approved on CBRS units. Notification
will contain the following information:
(i) Identification of the unit in the
CBRS;
(ii) Description of work approved;
(iii) Amount of Federal funding; and
(iv) Additional measures required.
(c) Permanent restoration assistance.
For each permanent restoration assistance action including but not limited
to those listed in § 206.346(b), the Regional Administrator shall meet the requirements set out below.
(1) Essential links. For the repair or
replacement of publicly owned or operated roads, structures or facilities
which are essential links in a larger
network or system:
(i) No facility may be expanded beyond its predisaster design.
(ii) Consultation in accordance with
§ 206.348 shall be accomplished.
(2) Channel improvements. For the repair of existing channels, related structures and the disposal of dredged materials:
(i) No channel or related structure
may be repaired, reconstructed, or replaced unless funds were appropriated
for the construction of such channel or
structure before October 18, 1982;
(ii) Expansion of the facility beyond
its predisaster design is not permitted;
(iii) Consultation in accordance with
§ 206.348 shall be accomplished.
(3) Energy facilities. For the repair of
facilities necessary for the exploration,
extraction or transportation of energy
resources:
(i) No such facility may be repaired,
reconstructed or replaced unless such
function can be carried out only in, on,
or adjacent to a coastal water area because the use or facility requires access
to the coastal water body;
(ii) Consultation in accordance with
§ 206.348 shall be accomplished.

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Federal Emergency Management Agency, DHS
(4) Special-purpose facilities. For the
repair of facilities used for the study,
management, protection or enhancement of fish and wildlife resources and
habitats and related recreational
projects; air and water navigation aids
and devices and access thereto; and facilities used for scientific research, including but not limited to aeronautical, atmospheric, space, geologic,
marine, fish and wildlife and other research, development, and applications;
and, nonstructural facilities that are
designed to mimic, enhance or restore
natural shoreline stabilization systems:
(i) Consultation in accordance with
§ 206.348 shall be accomplished;
(ii) No such facility may be repaired,
reconstructed, or replaced unless it is
otherwise consistent with the purposes
of CBRA in accordance with § 206.349.
(5) Other public facilities. For the repair, reconstruction, or replacement of
publicly owned or operated roads,
structures, or facilities that do not fall
within the categories identified in
paragraphs (c)(1), (2), (3), and (4) of this
section:
(i) No such facility may be repaired,
reconstructed, or replaced unless it is
an ‘‘existing facility;’’
(ii) Expansion of the facility beyond
its predisaster design is not permitted;
(iii) Consultation in accordance with
§ 206.348 shall be accomplished;
(iv) No such facility may be repaired,
reconstructed, or replaced unless it is
otherwise consistent with the purposes
of CBRA in accordance with § 206.349.
(6) Private nonprofit facilities. For eligible private nonprofit facilities as defined in these regulations and of the
type described in paragraphs (c)(1), (2),
(3), and (4) of this section:
(i) Consultation in accordance with
§ 206.348 shall be accomplished.
(ii) No such facility may be repaired,
reconstructed, or replaced unless it is
otherwise consistent with the purposes
of CBRA in accordance with § 206.349.
(7) Improved project. An improved
project may not be approved for a facility in the CBRS if such grant is to be
combined with other funding, resulting
in an expansion of the facility beyond
the predisaster design. If a facility is
exempt from the expansion prohibitions of CBRA by virtue of falling into

§ 206.348

one of the categories identified in paragraph (c)(1), (2), (3), or (4) of this section, then an improved project for such
facilities is not precluded.
(8) Alternate project. A new or enlarged facility may not be constructed
on a unit of the CBRS under the provisions of the Stafford Act unless the facility is exempt from the expansion
prohibition of CBRA by virtue of falling into one of the categories identified
in paragraph (c)(1), (2), (3), or (4) of this
section.
§ 206.348 Consultation.
As required by section 6 of the CBRA,
the FEMA Regional Administrator will
consult with the designated representative of the Department of the Interior
(DOI) at the regional level before approving any action involving permanent restoration of a facility or structure on or attached to a unit of the
CBRS.
(a) The consultation shall be by written memorandum to the DOI representative and shall contain the following:
(1) Identification of the unit within
the CBRS;
(2) Description of the facility and the
proposed repair or replacement work;
including identification of the facility
as an exception under section 6 of
CBRA; and full justification of its status as an exception;
(3) Amount of proposal Federal funding;
(4) Additional mitigation measures
required; and
(5) A determination of the action’s
consistency with the purposes of
CBRA, if required by these regulations,
in accordance with § 206.349.
(b) Pursuant to FEMA understanding
with DOI, the DOI representative will
provide technical information and an
opinion whether or not the proposed
action meets the criteria for a CBRA
exception, and on the consistency of
the action with the purposes of CBRA
(when such consistency is required).
DOI is expected to respond within 12
working days from the date of the
FEMA request for consultation. If a response is not received within the time
limit, the FEMA Regional Administrator shall contact the DOI representative to determine if the request for
consultation was received in a timely

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§ 206.349

44 CFR Ch. I (10–1–11 Edition)

manner. If it was not, an appropriate
extension for response will be given.
Otherwise, he or she may assume DOI
concurrence and proceed with approval
of the proposed action.
(c) For those cases in which the regional DOI representative believes that
the proposed action should not be
taken and the matter cannot be resolved at the regional level, the FEMA
Regional Administrator will submit
the issue to the Director, Office of Environmental Planning and Historic
Preservation, Mitigation Directorate.
In coordination with the Office of Chief
Counsel (OCC), consultation will be accomplished at the FEMA National Office with the DOI consultation officer.
After this consultation, the Director,
Office of Environmental Planning and
Historic Preservation, Mitigation Directorate, determines whether or not
to approve the proposed action.
§ 206.349 Consistency determinations.
Section 6(a)(6) of CBRA requires that
certain actions be consistent with the
purposes of that statute if the actions
are to be carried out on a unit of the
CBRA. The purpose of CBRA, as stated
in section 2(b) of that statute, is to
minimize the loss of human life, wasteful expenditure of Federal revenues,
and the damage to fish, wildlife, and
other natural resources associated with
the coastal barriers along with Atlantic and Gulf coasts. For those actions
where a consistency determination is
required, the FEMA Regional Administrator shall evaluate the action according to the following procedures, and
the evaluation shall be included in the
written request for consultation with
DOI.
(a) Impact identification. FEMA shall
identify impacts of the following types
that would result from the proposed action:
(1) Risks to human life;
(2) Risks of damage to the facility
being repaired or replaced;
(3) Risks of damage to other facilities;
(4) Risks of damage to fish, wildlife,
and other natural resources;
(5) Condition of existing development
served by the facility and the degree to
which its redevelopment would be encouraged; and

(6) Encouragement of new development.
(b) Mitigation. FEMA shall modify actions by means of practicable mitigation measures to minimize adverse effects of the types listed in paragraph
(a) of this section.
(c) Conservation. FEMA shall identify
practicable measures that can be incorporated into the proposed action and
will conserve natural and wildlife resources.
(d) Finding. For those actions required to be consistent with the purposes of CBRA, the above evaluation
must result in a finding of consistency
with CBRA by the Regional Administrator before funding may be approved
for that action.
§§ 206.350–206.359

[Reserved]

Subpart K—Community Disaster
Loans
SOURCE: 55 FR 2314, Jan. 23, 1990, unless
otherwise noted.

§ 206.360

Purpose.

This subpart provides policies and
procedures for local governments and
State and Federal officials concerning
the Community Disaster Loan program
under section 417 of the Stafford Act.
Sections 206.360 through 206.367 of the
subpart do not implement the Community Disaster Loan Act of 2005. (see
§ 206.370).
[70 FR 60446, Oct. 18, 2005]

§ 206.361 Loan program.
(a) General. The Assistant Administrator for the Disaster Assistance Directorate may make a Community Disaster Loan to any local government
which has suffered a substantial loss of
tax and other revenues as a result of a
major disaster and which demonstrates
a need for Federal financial assistance
in order to perform its governmental
functions.
(b) Amount of loan. The amount of the
loan is based upon need, not to exceed
25 percent of the operating budget of
the local government for the fiscal
year in which the disaster occurs, but
shall not exceed $5 million. The term
fiscal year as used in this subpart

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Federal Emergency Management Agency, DHS
means the local government’s fiscal
year.
(c) Interest rate. The interest rate is
the rate for five year maturities as determined by the Secretary of the
Treasury in effect on the date that the
Promissory Note is executed. This rate
is from the monthly Treasury schedule
of certified interest rates which takes
into consideration the current average
yields on outstanding marketable obligations of the United States, adjusted
to the nearest 1⁄8 percent.
(d) Time limitation. The Assistant Administrator for the Disaster Assistance
Directorate may approve a loan in either the fiscal year in which the disaster occurred or the fiscal year immediately following that year. Only one
loan may be approved under section
417(a) for any local government as the
result of a single disaster.
(e) Term of loan. The term of the loan
is 5 years, unless otherwise extended by
the Assistant Administrator for the
Disaster Assistance Directorate. The
Assistant Administrator for the Disaster Assistance Directorate may consider requests for an extensions of
loans based on the local government’s
financial condition. The total term of
any loan under section 417(a) normally
may not exceed 10 years from the date
the Promissory Note was executed.
However,
when
extenuating
circumstances exist and the Community
Disaster Loan recipient demonstrates
an inability to repay the loan within
the initial 10 years, but agrees to repay
such loan over an extended period of
time, additional time may be provided
for loan repayment. (See § 206.367(c).)
(f) Use of loan funds. The local government shall use the loaned funds to
carry on existing local government
functions of a municipal operation
character or to expand such functions
to meet disaster-related needs. The
funds shall not be used to finance capital improvements nor the repair or
restoration of damaged public facilities. Neither the loan nor any cancelled
portion of the loans may be used as the
nonFederal share of any Federal program, including those under the Act.
(g) Cancellation. The Assistant Administrator for the Disaster Assistance
Directorate shall cancel repayment of
all or part of a Community Disaster

§ 206.362

Loan to the extent that he/she determines that revenues of the local government during the 3 fiscal years following the disaster are insufficient to
meet the operating budget of that local
government because of disaster-related
revenue losses and additional unreimbursed disaster-related municipal operating expenses.
(h) Relation to other assistance. Any
community disaster loans including
cancellations made under this subpart
shall not reduce or otherwise affect
any commitments, grants, or other assistance under the Act or these regulations.
[55 FR 2314, Jan. 23, 1990, as amended at 66
FR 22445, May 4, 2001]

§ 206.362 Responsibilities.
(a) The local government shall submit the financial information required
by FEMA in the application for a Community Disaster Loan and in the application for loan cancellation, if submitted, and comply with the assurances on the application, the terms and
conditions of the Promissory Note, and
these regulations. The local government shall send all loan application,
loan administration, loan cancellation,
and loan settlement correspondence
through the GAR and the FEMA Regional Office to the FEMA Assistant
Administrator for the Disaster Assistance Directorate.
(b) The GAR shall certify on the loan
application that the local government
can legally assume the proposed indebtedness and that any proceeds will
be used and accounted for in compliance with the FEMA-State Agreement
for the major disaster. States are encouraged to take appropriate pre-disaster action to resolve any existing
State impediments which would preclude a local government from incurring the increased indebtedness associated with a loan in order to avoid protracted delays in processing loan application requests in major disasters or
emergencies.
(c) The Regional Administrator or
designee shall review each loan application or loan cancellation request received from a local government to ensure that it contains the required documents and transmit the application to
the Assistant Administrator for the

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§ 206.363

44 CFR Ch. I (10–1–11 Edition)

Disaster Assistance Directorate. He/she
may submit appropriate recommendations to the Assistant Administrator
for the Disaster Assistance Directorate.
(d) The Assistant Administrator for
the Disaster Assistance Directorate, or
a designee, shall execute a Promissory
Note with the local government, and
the FEMA Finance Center, shall administer the loan until repayment or
cancellation is completed and the
Promissory Note is discharged.
(e) The Assistant Administrator for
the Disaster Assistance Directorate or
designee shall approve or disapprove
each loan request, taking into consideration the information provided in the
local government’s request and the recommendations of the GAR and the Regional Administrator. The Assistant
Administrator for the Disaster Assistance Directorate or designee shall approve or disapprove a request for loan
cancellation in accordance with the
criteria for cancellation in these regulations.
(f) The Chief Financial Officer shall
establish and maintain a financial account for each outstanding loan and
disburse funds against the Promissory
Note.
§ 206.363

Eligibility criteria.

(a) Local government. (1) The local
government must be located within the
area designated by the Assistant Administrator for the Disaster Assistance
Directorate as eligible for assistance
under a major disaster declaration. In
addition, State law must not prohibit
the local government from incurring
the indebtedness resulting from a Federal loan.
(2) Criteria considered by FEMA in
determining the eligibility of a local
government for a Community Disaster
Loan include the loss of tax and other
revenues as result of a major disaster,
a demonstrated need for financial assistance in order to perform its governmental functions, the maintenance of
an annual operating budget, and the responsibility to provide essential municipal operating services to the community. Eligibility for other assistance
under the Act does not, by itself, establish entitlement to such a loan.

(b) Loan eligibility—(1) General. To be
eligible, the local government must
show that it may suffer or has suffered
a substantial loss of tax and other revenues as a result of a major disaster or
emergency, must demonstrate a need
for financial assistance in order to perform its governmental functions, and
must not be in arrears with respect to
any payments due on previous loans.
Loan eligibility is based on the financial condition of the local government
and a review of financial information
and supporting documentation accompanying the application.
(2) Substantial loss of tax and other revenues. The fiscal year of the disaster or
the succeeding fiscal year is the base
period for determining whether a local
government may suffer or has suffered
a substantial loss of revenue. Criteria
used in determining whether a local
government has or may suffer a substantial loss of tax and other revenue
include the following disaster-related
factors:
(i) Whether the disaster caused a
large enough reduction in cash receipts
from normal revenue sources, excluding borrowing, which affects significantly and adversely the level and/or
categories of essential municipal services provided prior to the disaster;
(ii) Whether the disaster caused a
revenue loss of over 5 percent of total
revenue estimated for the fiscal year in
which the disaster occurred or for the
succeeding fiscal year;
(3) Demonstrated need for financial assistance. The local government must
demonstrate a need for financial assistance in order to perform its governmental functions. The criteria used in
making this determination include the
following:
(i) Whether there are sufficient funds
to meet current fiscal year operating
requirements;
(ii) Whether there is availability of
cash or other liquid assets from the
prior fiscal year;
(iii) Current financial condition considering projected expenditures for
governmental services and availability
of other financial resources;
(iv) Ability to obtain financial assistance or needed revenue from State and
other Federal agencies for direct program expenditures;

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Federal Emergency Management Agency, DHS
(v) Debt ratio (relationship of annual
receipts to debt service);
(vi) Ability to obtain financial assistance or needed revenue from State and
other Federal agencies for direct program expenditures;
(vii) Displacement of revenue-producing business due to property destruction;
(viii) Necessity to reduce or eliminate essential municipal services; and
(ix) Danger of municipal insolvency.
[55 FR 2314, Jan. 23, 1990, as amended at 66
FR 22445, May 4, 2001]

§ 206.364 Loan application.
(a) Application. (1) The local government shall submit an application for a
Community Disaster Loan through the
GAR. The loan must be justified on the
basis of need and shall be based on the
actual and projected expenses, as a result of the disaster, for the fiscal year
in which the disaster occurred and for
the 3 succeeding fiscal years. The loan
application shall be prepared by the affected local government and be approved by the GAR. FEMA has determined that a local government, in applying for a loan as a result of having
suffered a substantial loss of tax and
other revenue as a result of a major
disaster, is not required to first seek
credit elsewhere (see § 206.367(c)).
(2) The State exercises administrative authority over the local government’s application. The State’s review
should include a determination that
the applicant is legally qualified, under
State law, to assume the proposed
debt, and may include an overall review for accuracy for the submission.
The Governor’s Authorized Representative may request the Regional Administrator to waive the requirement for a
State review if an otherwise eligible
applicant is not subject to State administration authority and the State
cannot legally participate in the loan
application process.
(b) Financial requirements. (1) The
loan application shall be developed
from financial information contained
in the local government’s annual operating budget (see § 206.364(b)(2)) and
shall include a Summary of Revenue
Loss and Unreimbursed Disaster-Related Expenses, a Statement of the Applicant’s Operating Results—Cash Posi-

§ 206.364

tion, a Debt History, Tax Assessment
Data, Financial Projections, Other Information, a Certification, and the Assurances listed on the application.
(i) Copies of the local government’s
financial reports (Revenue and Expense
and Balance Sheet) for the 3 fiscal
years immediately prior to the fiscal
year of the disaster and the applicant’s
most recent financial statement must
accompany the application. The local
government’s financial reports to be
submitted are those annual (or interim) consolidated and/or individual
official annual financial presentations
for the General Fund and all other
funds maintained by the local government.
(ii) Each application for a Community Disaster Loan must also include:
(A) A statement by the local government identifying each fund (i.e. General Fund, etc.) which is included as its
annual Operating budget, and
(B) A copy of the pertinent State
statutes, ordinance, or regulations
which prescribe the local government’s
system of budgeting, accounting and financial reporting, including a description of each fund account.
(2) Operating budget. For loan application purposes, the operating budget is
that document or documents approved
by an appropriating body, which contains an estimate of proposed expenditures, other than capital outlays for
fixed assets for a stated period of time,
and the proposed means of financing
the expenditures. For loan cancellation
purposes, FEMA interprets the term
‘‘operating budget’’ to mean actual
revenues and expenditures of the local
government as published in the official
financial statements of the local government.
(3) Operating budget increases. Budget
increases due to increases in the level
of, or additions to, municipal services
not rendered at the time of the disaster
or not directly related to the disaster
shall be identified.
(4) Revenue and assessment information. The applicant shall provide information concerning its method of tax
assessment including assessment dates
and the dates payments are due. Tax
revenues assessed but not collected, or

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§ 206.365

44 CFR Ch. I (10–1–11 Edition)

other revenues which the local government chooses to forgive, stay, or otherwise not exercise the right to collect,
are not a legitimate revenue loss for
purposes of evaluating the loan application.
(5) Estimated disaster-related expense.
Unreimbursed
disaster-related
expenses of a municipal operating character should be estimated. These are
discussed in § 206.366(b).
(c) Federal review. (1) The Assistant
Administrator for the Disaster Assistance Directorate or designee shall approve a community disaster loan to the
extent it is determined that the local
government has suffered a substantial
loss of tax and other revenues and demonstrates a need for financial assistance to perform its governmental function as the result of the disaster.
(2) Resubmission of application. If a
loan application is disapproved, in
whole or in part, by the Assistant Administrator for the Disaster Assistance
Directorate because of inadequacy of
information, a revised application may
be resubmitted by the local government within sixty days of the date of
the disapproval. Decision by the Assistant Administrator for the Disaster Assistance Directorate on the resubmission is final.
(d) Community disaster loan. (1) The
loan shall not exceed the lesser of:
(i) The amount of projected revenue
loss plus the projected unreimbursed
disaster-related expenses of a municipal operating character for the fiscal
year of the major disaster and the subsequent 3 fiscal years, or
(ii) 25 percent of the local government’s annual operating budget for the
fiscal year in which the disaster occurred.
(2) Promissory note. (i) Upon approval
of the loan by the Assistant Administrator for the Disaster Assistance Directorate or designee, he or she, or a
designated Loan Officer will execute a
Promissory Note with the applicant.
The Note must be co-signed by the
State (see § 206.364(d)(2)(ii)). The applicant should indicate its funding requirements on the Schedule of Loan Increments on the Note.
(ii) If the State cannot legally cosign
the Promissory Note, the local government must pledge collateral security,

acceptable to the Assistant Administrator for the Disaster Assistance Directorate, to cover the principal
amount of the Note. The pledge should
be in the form of a resolution by the
local governing body identifying the
collateral security.
[55 FR 2314, Jan. 23, 1990, as amended at 74
FR 15351, Apr. 3, 2009]

§ 206.365

Loan administration.

(a) Funding. (1) FEMA will disburse
funds to the local government when requested, generally in accordance with
the Schedule of Loan Increments in the
Promissory Note. As funds are disbursed, interest will accrue against
each disbursement.
(2) When each incremental disbursement is requested, the local government shall submit a copy of its most
recent financial report (if not submitted previously) for consideration by
FEMA in determining whether the
level and frequency of periodic payments continue to be justified. The
local government shall also provide the
latest available data on anticipated
and actual tax and other revenue collections. Desired adjustments in the
disbursement schedule shall be submitted in writing at least 10 days prior
to the proposed disbursement date in
order to ensure timely receipt of the
funds. A sinking fund should be established to amortize the debt.
(b) Financial management. (1) Each
local government with an approved
Community Disaster Loan shall establish necessary accounting records, consistent with local government’s financial management system, to account
for loan funds received and disbursed
and to provide an audit trail.
(2) FEMA auditors, State auditors,
the GAR, the Regional Administrator,
the Assistant Administrator for the
Disaster Assistance Directorate, and
the Comptroller General of the United
States or their duly authorized representatives shall, for the purpose of
audits and examination, have access to
any books, documents, papers, and
records that pertain to Federal funds,
equipments, and supplies received
under these regulations.
(c) Loan servicing. (1) The applicant
annually shall submit to FEMA copies

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Federal Emergency Management Agency, DHS
of its annual financial reports (operating statements, balance sheets, etc.)
for the fiscal year of the major disaster, and for each of the 3 subsequent
fiscal years.
(2) The Disaster Assistance Directorate, will review the loan periodically. The purpose of the reevaluation
is to determine whether projected revenue losses, disaster-related expenses,
operating budgets, and other factors
have changed sufficiently to warrant
adjustment of the scheduled disbursement of the loan proceeds.
(3) The Disaster Assistance Directorate, shall provide each loan recipient with a loan status report on a quarterly basis. The recipient will notify
FEMA of any changes of the responsible municipal official who executed
the Promissory Note.
(d) Inactive loans. If no funds have
been disbursed from the Treasury, and
if the local government does not anticipate a need for such funds, the note
may be cancelled at any time upon a
written request through the State and
Regional Office to FEMA. However,
since only one loan may be approved,
cancellation precludes submission of a
second loan application request by the
same local government for the same
disaster.
§ 206.366 Loan cancellation.
(a) Policies. (1) FEMA shall cancel repayment of all or part of a Community
Disaster Loan to the extent that the
Assistant Administrator for the Disaster Assistance Directorate determines that revenues of the local government during the full three fiscal
year period following the disaster are
insufficient, as a result of the disaster,
to meet the operating budget for the
local government, including additional
unreimbursed disaster-related expenses
for a municipal operating character.
For loan cancellation purposes, FEMA
interprets that term operating budget to
mean actual revenues and expenditures
of the local government as published in
the official financial statements of the
local government.
(2) If the tax and other revenues rates
or the tax assessment valuation of
property which was not damaged or destroyed by the disaster are reduced
during the 3 fiscal years subsequent to

§ 206.366

the major disaster, the tax and other
revenue rates and tax assessment valuation factors applicable to such property in effect at the time of the major
disaster shall be used without reduction for purposes of computing revenues received. This may result in decreasing the potential for loan cancellations.
(3) If the local government’s fiscal
year is changed during the ‘‘full 3 year
period following the disaster’’ the actual period will be modified so that the
required financial data submitted covers an inclusive 36-month period.
(4) If the local government transfers
funds from its operating funds accounts to its capital funds account,
utilizes operating funds for other than
routine maintenance purposes, or significantly
increases
expenditures
which are not disaster related, except
increases due to inflation, the annual
operating budget or operating statement expenditures will be reduced accordingly for purposes of evaluating
any request for loan cancellation.
(5) It is not the purpose of this loan
program to underwrite predisaster
budget or actual deficits of the local
government. Consequently, such deficits carried forward will reduce any
amounts otherwise eligible for loan
cancellation.
(b) Disaster-related expenses of a municipal operation character. (1) For purpose of this loan, unreimbursed expenses of a municipal operating character are those incurred for general
government purposes, such as police
and fire protection, trash collection,
collection of revenues, maintenance of
public facilities, flood and other hazard
insurance, and other expenses normally
budgeted for the general fund, as defined by the Municipal Finance Officers
Association.
(2) Disaster-related expenses do not
include expenditures associated with
debt service, any major repairs, rebuilding, replacement or reconstruction of public facilities or other capital
projects, intragovernmental services,
special assessments, and trust and
agency fund operations. Disaster expenses which are eligible for reimbursement under project applications
or other Federal programs are not eligible for loan cancellation.

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§ 206.366

44 CFR Ch. I (10–1–11 Edition)

(3) Each applicant shall maintain
records including documentation necessary to identify expenditures for unreimbursed disaster-related expenses.
Examples of such expenses include but
are not limited to:
(i) Interest paid on money borrowed
to pay amounts FEMA does not advance toward completion of approved
Project Applications.
(ii) Unreimbursed costs to local governments for providing usable sites
with utilities for mobile homes used to
meet disaster temporary housing requirements.
(iii) Unreimbursed costs required for
police and fire protection and other
community services for mobile home
parks established as the result of or for
use following a disaster.
(iv) The cost to the applicant of flood
insurance required under Public Law
93–234, as amended, and other hazard
insurance required under section 311,
Public Law 93–288, as amended, as a
condition of Federal disaster assistance
for the disaster under which the loan is
authorized.
(4) The following expenses are not
considered to be disaster-related for
Community Disaster Loan purposes:
(i) The local government’s share for
assistance provided under the Act including flexible funding under section
406(c)(1) of the Act.
(ii) Improvements related to the repair or restoration of disaster public
facilities approved on Project Applications.
(iii) Otherwise eligible costs for
which no Federal reimbursement is requested as a part of the applicant’s disaster response commitment, or cost
sharing as specified in the FEMA-State
Agreement for the disaster.
(iv) Expenses incurred by the local
government which are reimbursed on
the applicant’s project application.
(c) Cancellation application. A local
government which has drawn loan
funds from the Treasury may request
cancellation of the principal and related interest by submitting an Application for Loan Cancellation through
the Governor’s Authorized Representative to the Regional Administrator
prior to the expiration date of the loan.

(1) Financial information submitted
with the application shall include the
following:
(i) Annual Operating Budgets for the
fiscal year of the disaster and the 3
subsequent fiscal years;
(ii) Annual Financial Reports (Revenue and Expense and Balance Sheet)
for each of the above fiscal years. Such
financial records must include copies
of the local government’s annual financial reports, including operating statements balance sheets and related consolidated and individual presentations
for each fund account. In addition, the
local government must include an explanatory statement when figures in
the Application for Loan Cancellation
form differ from those in the supporting financial reports.
(iii) The following additional information concerning annual real estate
property taxes pertaining to the community for each of the above fiscal
years:
(A) The market value of the tax base
(dollars);
(B) The assessment ratio (percent);
(C) The assessed valuation (dollars);
(D) The tax levy rate (mils);
(E) Taxes levied and collected (dollars).
(iv) Audit reports for each of the
above fiscal years certifying to the validity of the Operating Statements.
The financial statements of the local
government shall be examined in accordance with generally accepted auditing standards by independent certified public accountants. The report
should not include recommendations
concerning loan cancellation or repayment.
(v) Other financial information specified in the Application for Loan Cancellation.
(2) Narrative justification. The application may include a narrative presentation to amplify the financial material accompanying the application and
to present any extenuating circumstances which the local government wants the Assistant Administrator for the Disaster Assistance Directorate to consider in rendering a decision on the cancellation request.

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Federal Emergency Management Agency, DHS
(d) Determination. (1) If, based on a review of the Application for Loan Cancellation and FEMA audit, when determined necessary, the Assistant Administrator for the Disaster Assistance Directorate determines that all or part of
the Community Disaster Loan funds
should be canceled, the principal
amount which is canceled will become
a grant, and the related interest will be
forgiven. The Assistant Administrator
for the Disaster Assistance Directorate’s determination concerning loan
cancellation will specify that any
uncancelled principal and related interest must be repaid immediately and
that, if immediate repayment will constitute a financial hardship, the local
government must submit for FEMA review and approval, a repayment schedule for settling the indebtedness on
timely basis. Such repayments must be
made to the Treasurer of the United
States and be sent to FEMA, Attention: Chief Financial Officer.
(2) A loan or cancellation of a loan
does not reduce or affect other disaster-related grants or other disaster
assistance. However, no cancellation
may be made that would result in a duplication of benefits to the applicant.
(3) The uncancelled portion of the
loan must be repaid in accordance with
§ 206.367.
(4) Appeals. If an Application for
Loan Cancellation is disapproved, in
whole or in part, by the Assistant Administrator for the Disaster Assistance
Directorate or designee, the local government may submit any additional information in support of the application
within 60 days of the date of disapproval. The decision by the Assistant
Administrator for the Disaster Assistance Directorate or designee on the
submission is final.
[55 FR 2314, Jan. 23, 1990, as amended at 74
FR 15351, Apr. 3, 2009]

§ 206.367

Loan repayment.

(a) Prepayments. The local government may make prepayments against
loan at any time without any prepayment penalty.
(b) Repayment. To the extent not otherwise cancelled, Community Disaster
Loan funds become due and payable in
accordance with the terms and condi-

§ 206.367

tions of the Promissory Note. The note
shall include the following provisions:
(1) The term of a loan made under
this program is 5 years, unless extended by the Assistant Administrator
for the Disaster Assistance Directorate. Interest will accrue on outstanding cash from the actual date of
its disbursement by the Treasury.
(2) The interest amount due will be
computed separately for each Treasury
disbursement as follows: I=P×R×T,
where I=the amount of simple interest,
P=the principal amount disbursed;
R=the interest rate of the loan; and,
T=the outstanding term in years from
the date of disbursement to date of repayment, with periods less than 1 year
computed on the basis of 365 days/year.
If any portion of the loan is cancelled,
the interest amount due will be computed on the remaining principal with
the shortest outstanding term.
(3) Each payment made against the
loan will be applied first to the interest
computed to the date of the payment,
and then to the principal. Prepayments
of scheduled installments, or any portion thereof, may be made at any time
and shall be applied to the installments
last to become due under the loan and
shall not affect the obligation of the
borrower to pay the remaining installments.
(4) The Assistant Administrator for
the Disaster Assistance Directorate
may defer payments of principal and
interest until FEMA makes its final
determination with respect to any Application for Loan Cancellation which
the borrower may submit. However, interest will continue to accrue.
(5) Any costs incurred by the Federal
Government in collecting the note
shall be added to the unpaid balance of
the loan, bear interest at the same rate
as the loan, and be immediately due
without demand.
(6) In the event of default on this
note by the borrower, the FEMA
claims collection officer will take action to recover the outstanding principal plus related interest under Federal debt collection authorities, including administrative offset against other
Federal funds due the borrower and/or
referral to the Department of Justice
for judicial enforcement and collection.

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§§ 206.368–206.369

44 CFR Ch. I (10–1–11 Edition)

(c) Additional time. In unusual circumstances involving financial hardship, the local government may request
an additional period of time beyond the
original 10 year term to repay the indebtedness. Such request may be approved by the Assistant Administrator
for the Disaster Assistance Directorate
subject to the following conditions:
(1) The local government must submit documented evidence that it has
applied for the same credit elsewhere
and that such credit is not available at
a rate equivalent to the current Treasury rate.
(2) The principal amount shall be the
original uncancelled principal plus related interest.
(3) The interest rate shall be the
Treasury rate in effect at the time the
new Promissory Note is executed but
in no case less than the original interest rate.
(4) The term of the new Promissory
Note shall be for the settlement period
requested by the local government but
not greater than 10 years from the date
the new note is executed.
§§ 206.368–206.369

[Reserved]

§ 206.370 Purpose and scope.
(a) Purpose. Sections 206.370 through
206.377 provide procedures for local governments and State and Federal officials concerning the Special Community Disaster Loans program under section 417 of the Stafford Act (42 U.S.C.
5184), the Community Disaster Loan
Act of 2005, Public Law 109–88, and the
Emergency Supplemental Appropriations Act for Defense, the Global War
on Terror, and Hurricane Recovery,
2006, Public Law 109–234.
(b) Scope. Sections 206.370 through
206.377 apply only to Special Community Disaster Loans issued under the
Community Disaster Loan Act of 2005,
Public Law 109–88, and the Emergency
Supplemental Appropriations Act for
Defense, the Global War on Terror, and
Hurricane Recovery, 2006, Public Law
109–234.
[70 FR 60446, Oct. 18, 2005, as amended at 75
FR 2817, Jan. 19, 2010]

§ 206.371 Loan program.
(a) General. The Assistant Administrator for the Disaster Assistance Di-

rectorate may make a Special Community Disaster Loan to any local government which has suffered a substantial
loss of tax and other revenues as a result of a major disaster and which demonstrates a need for Federal financial
assistance in order to provide essential
services.
(b) Amount of loan. The amount of the
loan is based upon need, not to exceed
25 percent of the operating budget of
the local government for the fiscal
year in which the disaster occurs. The
term fiscal year as used in this subpart
means the local government’s fiscal
year.
(c) Interest rate. The interest rate is
the rate for five year maturities as determined by the Secretary of the
Treasury in effect on the date that the
Promissory Note is executed. This rate
is from the monthly Treasury schedule
of certified interest rates which takes
into consideration the current average
yields on outstanding marketable obligations of the United States. If an applicant can demonstrate unusual circumstances involving financial hardship,
the Assistant Administrator for the
Disaster Assistance Directorate may
approve a rate equal to the five year
maturity rate plus 1 per centum, adjusted to the nearest 1⁄8 percent, and
further reduced by one-half.
(d) Time limitation. The Assistant Administrator for the Disaster Assistance
Directorate may approve a loan in either the fiscal year in which the disaster occurred or the fiscal year immediately following that year.
(e) Term of loan. The term of the loan
is 5 years, unless otherwise extended by
the Assistant Administrator for the
Disaster Assistance Directorate. The
Assistant Administrator for the Disaster Assistance Directorate may consider a request for an extension of a
loan based on the local government’s
financial condition. The total term of
any loan under section 417(a) of the
Stafford Act normally may not exceed
10 years from the date the Promissory
Note was executed. However, when extenuating circumstances exist and the
recipient demonstrates an inability to
repay the loan within the initial 10
years, but agrees to repay such loan

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Federal Emergency Management Agency, DHS
over an extended period of time, additional time may be provided for loan
repayment (see § 206.377(c)).
(f) Use of loan funds. The local government shall use the loaned funds to
assist in providing essential services.
The funds shall not be used to finance
capital improvements nor the repair or
restoration of damaged public facilities. Neither the loan nor any cancelled
portion of the loans may be used as the
non-Federal share of any Federal program, including those under the Stafford Act.
(g) Relation to other assistance. Any
Special Community Disaster Loans including cancellations of loans made
under this subpart shall not reduce or
otherwise affect any commitments,
grants, or other assistance provided
under the authority of the Stafford Act
or this part.
(h) Cancellation. The Director of the
Public Assistance Division shall cancel
repayment of all or part of a Special
Community Disaster Loan to the extent that he/she determines that revenues of the local government during
the three full fiscal years following the
disaster are insufficient to meet the
operating budget of that local government because of disaster-related revenue losses and additional unreimbursed disaster-related municipal operating expenses.
[70 FR 60446, Oct. 18, 2005, as amended at 75
FR 2817, Jan. 19, 2010]

§ 206.372 Responsibilities.
(a) The local government shall submit the financial information required
by FEMA in the application for a Community Disaster Loan or other format
specified by FEMA and comply with
the assurances on the application, the
terms and conditions of the Promissory
Note, the application for loan cancellation, if submitted, and §§ 206.370
through 206.377. The local government
shall send all loan application, loan administration, loan cancellation, and
loan
settlement
correspondence
through the Governor’s Authorized
Representative (GAR) and the FEMA
Regional Office to the Director of the
Public Assistance Division.
(b) The GAR shall certify on the loan
application that the local government
can legally assume the proposed in-

§ 206.373

debtedness and that any proceeds will
be used and accounted for in compliance with the FEMA-State Agreement
for the major disaster. States are encouraged to take appropriate pre-disaster action to resolve any existing
State impediments which would preclude a local government from incurring the increased indebtedness associated with a loan in order to avoid protracted delays in processing loan application requests resulting from major
disasters.
(c) The Regional Administrator or
designee shall review each loan application or loan cancellation request received from a local government to ensure that it contains the required documents and transmit the application to
the Director of the Public Assistance
Division. He/she may also submit appropriate recommendations to the Director of the Public Assistance Division.
(d) The Director of the Public Assistance Division or a designee, shall execute a Promissory Note with the local
government and shall administer the
loan until repayment or cancellation is
completed and the Promissory Note is
discharged.
(e) The Director of the Public Assistance Division shall approve or disapprove each loan request, taking into
consideration the information provided
in the local government’s request and
the recommendations of the GAR and
the Regional Administrator. The Director of the Public Assistance Division
shall approve or disapprove a request
for loan cancellation in accordance
with the criteria for cancellation in
these regulations.
(f) The FEMA Chief Financial Officer
shall establish and maintain a financial account for each outstanding loan
and disburse funds against the Promissory Note.
[70 FR 60446, Oct. 18, 2005, as amended at 75
FR 2818, Jan. 19, 2010]

§ 206.373 Eligibility criteria.
(a) Local government. (1) The local
government must be located within the
area eligible for assistance under a
major disaster declaration. In addition,
State law must not prohibit the local
government from incurring the indebtedness resulting from a Federal loan.

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§ 206.374

44 CFR Ch. I (10–1–11 Edition)

(2) Criteria considered by FEMA in
determining the eligibility of a local
government for a Special Community
Disaster Loan include the loss of tax
and other revenues as result of a major
disaster, a demonstrated need for financial assistance in order to perform
essential governmental functions, the
maintenance of an annual operating
budget, and the responsibility to provide essential services to the community. Eligibility for other assistance
under the Stafford Act does not, by
itself, establish entitlement to such a
loan.
(b) Loan eligibility—(1) General. To be
eligible, the local government must
show that it may suffer or has suffered
a substantial loss of tax and other revenues as a result of a major disaster or
emergency, and it must demonstrate a
need for financial assistance in order to
provide essential municipal services.
Loan eligibility is based on the financial condition of the local government
and a review of financial information
and supporting documentation accompanying the application.
(2) Substantial loss of tax and other revenues. The fiscal year of the disaster or
the succeeding fiscal year is the base
period for determining whether a local
government may suffer or has suffered
a substantial loss of revenue. Criteria
used in determining whether a local
government has or may suffer a substantial loss of tax and other revenue
include the following disaster-related
factors:
(i) Whether the disaster caused a
large enough reduction in cash receipts
from normal revenue sources, excluding borrowing, which affects significantly and adversely the level and/or
categories of essential services provided prior to the disaster;
(ii) Whether the disaster caused a
revenue loss of over 5 percent of total
revenue estimated for the fiscal year in
which the disaster occurred or for the
succeeding fiscal year.
(3) Demonstrated need for financial assistance. The local government must
demonstrate a need for financial assistance in order to perform essential governmental functions. The criteria used
in making this determination may include some or all of the following factors:

(i) Whether there are sufficient funds
to meet current fiscal year operating
requirements;
(ii) Whether there is availability of
cash or other liquid assets from the
prior fiscal year;
(iii) Current financial condition considering projected expenditures for
governmental services and availability
of other financial resources;
(iv) Ability to obtain financial assistance or needed revenue from State and
other Federal agencies for direct program expenditures;
(v) Debt ratio (relationship of annual
receipts to debt service);
(vi) Displacement of revenue-producing business due to property destruction;
(vii) Necessity to reduce or eliminate
essential services; and
(viii) Danger of municipal insolvency.
[70 FR 60446, Oct. 18, 2005]

§ 206.374

Loan application.

(a) Application. (1) The local government shall submit an application for a
Special Community Disaster Loan
through the GAR. The loan must be
justified on the basis of need and shall
be based on the actual and projected
expenses, as a result of the disaster, for
the fiscal year in which the disaster occurred and for the 3 succeeding fiscal
years. The loan application shall be
prepared by the affected local government and be approved by the GAR.
FEMA has determined that a local government, in applying for a loan as a result of having suffered a substantial
loss of tax and other revenue as a result of a major disaster, is not required
to first seek credit elsewhere (see
§ 206.377(c)).
(2) The State exercises administrative authority over the local government’s application. The State’s review
should include a determination that
the applicant is legally qualified, under
State law, to assume the proposed
debt, and may include an overall review for accuracy of the submission.
The GAR may request the Regional Administrator to waive the requirement
for a State review if an otherwise eligible applicant is not subject to State administration authority and the State

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Federal Emergency Management Agency, DHS
cannot legally participate in the loan
application process.
(b) Financial requirements. (1) The
loan application shall be developed
from financial information contained
in the local government’s annual operating budget (see paragraph (b)(2) of
this section) and shall include a Summary of Revenue Loss and Unreimbursed Disaster-Related Expenses, a
Statement of the Applicant’s Operating
Results—Cash Position, and certification and assurances requested by the
Assistant Administrator for the Disaster Assistance Directorate.
(i) Copies of the local government’s
financial reports (Revenue and Expense
and Balance Sheet) for the 3 fiscal
years immediately prior to the fiscal
year of the disaster and the applicant’s
most recent financial statement must,
unless impracticable, accompany the
application. The local government’s financial reports to be submitted are
those annual (or interim) consolidated
and/or individual official annual financial presentations for the General Fund
and all other funds maintained by the
local government.
(ii) Each application for a Special
Community Disaster Loan must also
include:
(A) A statement by the local government identifying each fund (i.e. General Fund, etc.) which is included as its
annual Operating budget, and
(B) A copy of the pertinent State
statutes, ordinances, or regulations
which prescribe the local government’s
system of budgeting, accounting and financial reporting, including a description of each fund account.
(2) Operating budget. For loan application purposes, the operating budget is
that document or documents approved
by an appropriating body, which contains an estimate of proposed expenditures, other than capital outlays for
fixed assets for a stated period of time,
and the proposed means of financing
the expenditures. For loan cancellation
purposes, FEMA interprets the term
‘‘operating budget’’ to mean actual
revenues and expenditures of the local
government as published in the official
financial statements of the local government.
(3) Operating budget increases. Budget
increases due to increases in the level

§ 206.374

of, or additions to, municipal services
not rendered at the time of the disaster
or not directly related to the disaster
shall be identified.
(4) Revenue and assessment information. The applicant shall provide information concerning its method of tax
assessment including assessment dates
and the dates payments are due.
(5) Estimated disaster-related expense.
Unreimbursed
disaster-related
expenses of a municipal operating character should be estimated.
(c) Federal review. (1) The Assistant
Administrator for the Disaster Assistance Directorate or designee shall approve a Special Community Disaster
Loan to the extent it is determined
that the local government has suffered
a substantial loss of tax and other revenues and demonstrates a need for financial assistance as the result of the
disaster to provide essential municipal
services.
(2) Resubmission of application. If a
loan application is disapproved, in
whole or in part, by the Assistant Administrator for the Disaster Assistance
Directorate because of inadequacy of
information, a revised application may
be submitted by the local government
within sixty days of the date of the disapproval. Decision by the Assistant Administrator for the Disaster Assistance
Directorate on the resubmission is
final.
(d) Special Community Disaster Loan.
(1) The loan shall not exceed the lesser
of:
(i) The amount of projected revenue
loss plus the projected unreimbursed
disaster-related expenses of a municipal operating character for the fiscal
year of the major disaster and the subsequent 3 fiscal years, or
(ii) 25 percent of the local government’s annual operating budget for the
fiscal year in which the disaster occurred.
(2) Promissory note. (i) Upon approval
of the loan by the Assistant Administrator for the Disaster Assistance Directorate or designee, he or she, or a
designated Loan Officer will execute a
Promissory Note with the applicant.
The Note must be co-signed by the
State (see paragraph (d)(2)(ii) of this
section). The applicant should indicate

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§ 206.375

44 CFR Ch. I (10–1–11 Edition)

its funding requirements on the Schedule of Loan Increments on the Note.
(ii) If the State cannot legally cosign
the Promissory Note, the local government must pledge collateral security,
acceptable to the Assistant Administrator for the Disaster Assistance Directorate, to cover the principal
amount of the Note. The pledge should
be in the form of a resolution by the
local governing body identifying the
collateral security.
(e) Waiver of requirements. Notwithstanding any other provision of this or
other sections promulgated pursuant
to Public Law 109–88, the Assistant Administrator for the Disaster Assistance
Directorate may, upon the request of
an applicant or loan recipient, waive
any specific application requirement or
financial reporting requirement (see,
e.g., § 206.375(a)(2)) upon a finding by
the Assistant Administrator for the
Disaster Assistance Directorate that
the effects of the major disaster prevent the applicant from fulfilling the
application requirement and that
waiving the requirements would be
consistent with the purposes of the
Community Disaster Loan Act of 2005.
[70 FR 60446, Oct. 18, 2005, as amended at 75
FR 2818, Jan. 19, 2010]

§ 206.375

Loan administration.

(a) Funding. (1) FEMA will disburse
funds to the local government when requested, generally in accordance with
the Schedule of Loan Increments in the
Promissory Note. As funds are disbursed, interest will accrue against
each disbursement.
(2) When each incremental disbursement is requested, the local government shall submit a copy of its most
recent financial report (if not submitted previously) for consideration by
FEMA in determining whether the
level and frequency of periodic payments continue to be justified. The
local government shall also provide the
latest available data on anticipated
and actual tax and other revenue collections. Desired adjustments in the
disbursement schedule shall be submitted in writing at least 10 days prior
to the proposed disbursement date in
order to ensure timely receipt of the
funds.

(b) Financial management. (1) Each
local government with an approved
Special Community Disaster Loan
shall establish necessary accounting
records, consistent with local government’s financial management system,
to account for loan funds received and
disbursed and to provide an audit trail.
(2) FEMA auditors, State auditors,
the GAR, the Regional Administrator,
the Assistant Administrator for the
Disaster Assistance Directorate, the
Department of Homeland Security Inspector General, and the Comptroller
General of the United States or their
duly authorized representatives shall,
for the purpose of audits and examination, have access to any books, documents, papers, and records that pertain
to Federal funds, equipments, and supplies received under §§ 206.370 through
206.377.
(c) Loan servicing. (1) The applicant
annually shall submit to FEMA copies
of its annual financial reports (operating statements, balance sheets, etc.)
for the fiscal year of the major disaster, and for each of the 3 subsequent
fiscal years.
(2) FEMA will review the loan periodically. The purpose of the reevaluation is to determine whether projected
revenue losses, disaster-related expenses, operating budgets, and other
factors have changed sufficiently to
warrant adjustment of the scheduled
disbursement of the loan proceeds.
(3) FEMA shall provide each loan recipient with a loan status report on a
quarterly basis. The recipient will notify FEMA of any changes of the responsible municipal official who executed the Promissory Note.
(d) Inactive loans. If no funds have
been disbursed from the loan program,
and if the local government does not
anticipate a need for such funds, the
note may be cancelled at any time
upon a written request through the
State and Regional Office to FEMA.
[70 FR 60446, Oct. 18, 2005]

§ 206.376 Loan cancellation.
(a) FEMA shall cancel repayment of
all or part of a Special Community Disaster Loan to the extent that the Director of the Public Assistance Division determines that revenues of the
local government during the three-full-

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Federal Emergency Management Agency, DHS
fiscal-year period following the disaster are insufficient, as a result of the
disaster, to meet the operating budget
for the local government, including additional unreimbursed disaster-related
expenses of a municipal operating
character.
(b) Definitions. For loan cancellation
purposes,
(1) ‘‘Operating budget’’ means actual
revenues and expenditures of the local
government as published in the official
financial statements of the local government.
(2) ‘‘Revenue’’ means any source of
income from taxes, fees, fines, and
other sources of income, and will be
recognized only as they become susceptible to accrual (measurable and available).
(3) ‘‘Three-full-fiscal-year period following the disaster’’ means either a 36month period beginning on September
1, 2005, or the 36 months of the applicant’s fiscal year as established before
the disaster, at the applicant’s discretion.
(4) ‘‘Operating expenses’’ means those
expenses and expenditures incurred as
a result of performing services, including salaries and benefits, contractual
services, and commodities. Capital expenditures and debt service payments
and capital leases are not considered
operating expenses. Under accrual accounting, expenses are recognized as
soon as a liability is incurred, regardless of the timing of related cash flows.
(c) Revenue Calculation procedures. (1)
If the tax rates and other revenues or
the tax assessment valuation of property which was not damaged or destroyed by the disaster are reduced
during the three full fiscal years subsequent to the major disaster, the tax
rates and other revenues and tax assessment valuation factors applicable
to such property in effect at the time
of the major disaster shall be used
without reduction for purposes of computing revenues received.
(2) At the applicant’s discretion, the
three-full-fiscal-year period following
the disaster is either a 36-month period
beginning on September 1, 2005 or the
36 months of the applicant’s fiscal year
as established before the disaster. If
the applicant’s fiscal year is changed
within the 36 months immediately fol-

§ 206.376

lowing the disaster, the actual period
will be modified so that the required financial data submitted covers an inclusive 36-month period. Should the applicant elect the 36-month period beginning September 1, 2005, FEMA will prorate the revenues and expenses for the
partial years based on the applicant’s
annual financial statements.
(3) If the local government transfers
funds from its operating funds accounts to its capital funds account,
utilizes operating funds for other than
routine maintenance purposes, or significantly
increases
expenditures
which are not disaster related, except
increases due to inflation, the annual
operating budget or operating statement expenditures will be reduced accordingly for purposes of evaluating
any request for loan cancellation.
(4) Notwithstanding paragraph (c)(3)
of this section, the amount of property
taxes that are transferred to other
funds for Debt Service or Pension Obligations funding will not be excluded
from the calculation of the operating
budget or from expenditures in calculation of the operating deficit, to the extent that the property tax revenues in
the General Fund are less than they
were pre-disaster. FEMA will consider
the impact of the loss of property tax
revenue in Debt Service or Pension
Funds (non-operating funds) if all of
the following conditions are met:
(i) The entity experienced a loss of
property tax revenue as a result of the
disaster and the assessed value during
the three years following the disaster,
in the aggregate, is less than the predisaster assessed value;
(ii) the entity has a property tax cap
limitation on the ability to raise property taxes post-disaster; and
(iii) the property taxes are levied
through the General Operating Fund
and transfers for obligations mandated
by law are made to fund Debt Service
or Pension Obligations which result in
the entity experiencing a reduction of
property tax revenues in the General
Fund.
(5) It is not the purpose of this loan
program to underwrite pre-disaster
budget or actual deficits of the local
government. Consequently, such deficits carried forward will reduce any

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§ 206.376

44 CFR Ch. I (10–1–11 Edition)

amounts otherwise eligible for loan
cancellation.
(6) The provisions of this section
apply to all Special Community Disaster loans issued from the dates of enactment of Public Law 109–88 and Public Law 109–234.
(d) Disaster-related expenses of a municipal operation character. (1) For purposes of this loan, unreimbursed expenses of a municipal operating character are those incurred for general
government purposes, including but
not limited to police and fire protection, trash collection, collection of revenues, maintenance of public facilities,
flood and other hazard insurance.
(2) Disaster-related expenses do not
include expenditures associated with
debt service, any major repairs, rebuilding, replacement or reconstruction of public facilities or other capital
projects, intragovernmental services,
special assessments, and trust and
agency fund operations. Disaster expenses which are eligible for reimbursement under project applications
or other Federal programs are not eligible for loan cancellation.
(3) Each applicant shall maintain
records including documentation necessary to identify expenditures for unreimbursed disaster-related expenses.
Examples of such expenses include but
are not limited to:
(i) Interest paid on money borrowed
to pay amounts FEMA does not advance toward completion of approved
Project Applications.
(ii) Unreimbursed costs to local governments for providing usable sites
with utilities for mobile homes used to
meet disaster temporary housing requirements.
(iii) Unreimbursed costs required for
police and fire protection and other
community services for mobile home
parks established as the result of or for
use following a disaster.
(iv) The cost to the applicant of flood
insurance required under Public Law
93–234, as amended, and other hazard
insurance required under section 311,
Public Law 93–288, as amended, as a
condition of Federal disaster assistance
for the disaster under which the loan is
authorized.
(4) The following expenses are not
considered to be disaster-related for

Special Community Disaster Loan purposes:
(i) The local government’s share for
assistance provided under the Stafford
Act including flexible funding under
section 406(c)(1) of the Act (42 U.S.C.
5172).
(ii) Improvements related to the repair or restoration of disaster public
facilities approved on Project Applications.
(iii) Otherwise eligible costs for
which no Federal reimbursement is requested as a part of the applicant’s disaster response commitment, or cost
sharing as specified in the FEMA–State
Agreement for the disaster.
(iv) Expenses incurred by the local
government which are reimbursed on
the applicant’s Project Application.
(e) Cancellation application. A local
government which has drawn loan
funds from the U.S. Treasury may request cancellation of the principal and
related interest by submitting an Application
for
Loan
Cancellation
through the Governor’s Authorized
Representative to the Regional Administrator prior to the expiration date of
the loan.
(1) Financial information submitted
with the application shall include the
following:
(i) Annual Operating Budgets for the
fiscal year of the disaster and the three
subsequent fiscal years;
(ii) Annual Financial Reports (Revenue and Expense and Balance Sheet)
for each of the above fiscal years. Such
financial records must include copies
of the local government’s annual financial reports, including operating statements and balance sheets and related
consolidated and individual presentations for each fund account. In addition, the local government must include an explanatory statement when
figures in the Application for Loan
Cancellation form differ from those in
the supporting financial reports.
(iii) The following additional information concerning annual real estate
property taxes pertaining to the community for each of the above fiscal
years:
(A) The market value of the tax base
(dollars);
(B) The assessment ratio (percent);
(C) The assessed valuation (dollars);

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Federal Emergency Management Agency, DHS
(D) The tax levy rate (mils);
(E) Taxes levied and collected (dollars).
(iv) Audit reports for each of the
above fiscal years certifying to the validity of the Operating Statements.
The financial statements of the local
government shall be examined in accordance with generally accepted auditing standards by independent certified public accountants. The report
should not include recommendations
concerning loan cancellation or repayment.
(v) Other financial information specified in the Application for Loan Cancellation.
(2) Narrative justification. The application may include a narrative presentation to supplement the financial material accompanying the application
and to present any extenuating circumstances which the local government wants the Director of the Public
Assistance Division to consider in rendering a decision on the cancellation
request.
(f) Determination. (1) The Director of
the Public Assistance Division will
make a cancellation determination
within 60 days of the date the applicant
submits all required and requested information, including documentation in
support of un-reimbursed disaster related expenses.
(2) If, based on a review of the Application for Loan Cancellation and
FEMA audit, the Director of the Public
Assistance Division determines that all
or part of the Special Community Disaster Loan funds should be canceled,
the amount of principal canceled and
the related interest will be forgiven.
The Director of the Public Assistance
Division’s determination concerning
loan cancellation will specify that any
uncancelled principal and related interest must be repaid in accordance
with the terms and conditions of the
Promissory Note, and that, if repayment will constitute a financial hardship, the local government must submit for FEMA review and approval, a
repayment schedule for settling the indebtedness on a timely basis. Such repayments must be made to the Treasurer of the United States and be sent
to FEMA, Attention: Office of the Chief
Financial Officer.

§ 206.377

(3) A loan or cancellation of a loan
does not reduce or affect other disaster-related grants or other disaster
assistance. However, no cancellation
may be made that would result in a duplication of benefits to the applicant.
(4) The uncancelled portion of the
loan must be repaid in accordance with
§ 206.377.
(5) Appeals. If an Application for
Loan Cancellation is disapproved, in
whole or in part, by the Director of the
Public Assistance Division, the local
government may submit any additional
information in support of the application within 60 days of the date of disapproval. The decision by the Assistant
Administrator for the Disaster Assistance Directorate on the additional information is final.
[75 FR 2818, Jan. 19, 2010]

§ 206.377 Loan repayment.
(a) Prepayments. The local government may make prepayments against
loan at any time without any prepayment penalty.
(b) Repayment. To the extent not otherwise cancelled, loan funds become
due and payable in accordance with the
terms and conditions of the Promissory
Note. The note shall include the following provisions:
(1) The term of a loan made under
this program is 5 years, unless extended by the Assistant Administrator
for the Disaster Assistance Directorate. Interest will accrue on outstanding cash from the actual date of
its disbursement by FEMA or FEMA’s
designated Disbursing Agency.
(2) The interest amount due will be
computed separately for each Treasury
disbursement as follows: I = P X R X
T, where I = the amount of simple interest, P = the principal amount disbursed; R = the interest rate of the
loan; and, T = the outstanding term in
years from the date of disbursement to
date of repayment, with periods less
than 1 year computed on the basis of
365 days/year. If any portion of the loan
is cancelled, the interest amount due
will be computed on the remaining
principal with the shortest outstanding
term.
(3) Each payment made against the
loan will be applied first to the interest
computed to the date of the payment,

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§§ 206.378–206.389

44 CFR Ch. I (10–1–11 Edition)

and then to the principal. Prepayments
of scheduled installments, or any portion thereof, may be made at any time
and shall be applied to the installments
last to become due under the loan and
shall not affect the obligation of the
borrower to pay the remaining installments.
(4) The Assistant Administrator for
the Disaster Assistance Directorate
may defer payments of principal and
interest until FEMA makes its final
determination with respect to any Application for Loan Cancellation which
the borrower may submit. However, interest will continue to accrue.
(5) Any costs incurred by the Federal
Government in collecting the note
shall be added to the unpaid balance of
the loan, bear interest at the same rate
as the loan, and be immediately due
without demand.
(6) In the event of default on this
note by the borrower, the FEMA
claims collection officer will take action to recover the outstanding principal plus related interest under Federal debt collection authorities, including administrative offset against other
Federal funds due the borrower and/or
referral to the Department of Justice
for judicial enforcement and collection.
(c) Additional time. In unusual circumstances involving financial hardship, the local government may request
an additional period of time beyond the
original 10 year term to repay the indebtedness. Such request may be approved by the Assistant Administrator
for the Disaster Assistance Directorate
subject to the following conditions:
(1) The local government must submit documented evidence that it has
applied for the same credit elsewhere
and that such credit is not available at
a rate equivalent to the current Treasury rate.
(2) The principal amount shall be the
original uncancelled principal plus related interest less any payments made.
(3) The interest rate shall be the
Treasury rate in effect at the time the
new Promissory Note is executed but
in no case less than the original interest rate. A reduced rate may not be applied if was it was not previously applied to the loan.
(4) The term of the new Promissory
Note shall be for the settlement period

requested by the local government but
not greater than 10 years from the date
the new note is executed.
[70 FR 60446, Oct. 18, 2005, as amended at 75
FR 2820, Jan. 19, 2010]

§§ 206.378–206.389

[Reserved]

Subpart L—Fire Suppression
Assistance
SOURCE: 55 FR 2318, Jan. 23, 1990, unless
otherwise noted.

§ 206.390

General.

When the Assistant Administrator
for the Disaster Assistance Directorate
determines that a fire or fires threaten
such destruction as would constitute a
major disaster, assistance may be authorized, including grants, equipment,
supplies, and personnel, to any State
for the suppression of any fire on publicly or privately owned forest or grassland.
§ 206.391

FEMA-State Agreement.

Federal assistance under section 420
of the Act is provided in accordance
with a continuing FEMA-State Agreement for Fire Suppression Assistance
(the Agreement) signed by the Governor and the Regional Administrator.
The Agreement contains the necessary
terms and conditions, consistent with
the provisions of applicable laws, Executive Orders, and regulations, as the
Assistant Administrator for the Disaster Assistance Directorate may require and specifies the type and extent
of Federal assistance. The Governor
may designate authorized representatives to execute requests and certifications and otherwise act for the State
during fire emergencies. Supplemental
agreements shall be executed as required to update the continuing Agreement.
§ 206.392

Request for assistance.

When a Governor determines that
fire suppression assistance is warranted, a request for assistance may be
initiated. Such request shall specify in
detail the factors supporting the request for assistance. In order that all
actions in processing a State request
are executed as rapidly as possible, the

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Federal Emergency Management Agency, DHS
State may submit a telephone request
to
the
Regional
Administrator,
promptly followed by a confirming
telegram or letter.
[55 FR 2318, Jan. 23, 1990, as amended at 74
FR 15352, Apr. 3, 2009]

§ 206.393 Providing assistance.
Following the Assistant Administrator for the Disaster Assistance Directorate’s decision on the State request, the Regional Administrator will
notify the Governor and the Federal
firefighting agency involved. The Regional Administrator may request assistance from Federal agencies if requested by the State. For each fire or
fire situation, the State shall prepare a
separate Fire Project Application
based on Federal Damage Survey Reports and submit it to the Regional Administrator for approval.
§ 206.394 Cost eligibility.
(a) Cost principles. See 44 CFR 13.22,
Allowable Costs, and the associated
OMB Circular A–87, Cost Principles for
State and Local Governments.
(b) Program specific eligible costs. (1)
Expenses to provide field camps and
meals when made available to the eligible employees in lieu of per diem
costs.
(2) Costs for use of publicly owned
equipment used on eligible fire suppression work based on reasonable
State equipment rates.
(3) Costs to the State for use of U.S.
Government-owned equipment based on
reasonable costs as billed by the Federal agency and paid by the State. Only
direct costs for use of Federal Excess
Personal Property (FEPP) vehicles and
equipment on loan to State Forestry
and local cooperators, can be paid.
(4) Cost of firefighting tools, materials, and supplies expended or lost, to
the extent not covered by reasonable
insurance.
(5) Replacement value of equipment
lost in fire suppression, to the extent
not covered by reasonable insurance.
(6) Costs for personal comfort and
safety items normally provided by the
State under field conditions for firefighter health and safety.
(7) Mobilization and demobilization
costs directly relating to the Federal
fire suppression assistance approved by

§ 206.395

the Assistant Administrator for the
Disaster Assistance Directorate.
(8) Eligible costs of local governmental
firefighting
organizations
which are reimbursed by the State pursuant to an existing cooperative mutual aid agreement, in suppressing an
approved incident fire.
(9) State costs for suppressing fires
on Federal land in cases in which the
State has a responsibility under a cooperative agreement to perform such
action on a nonreimbursable basis.
This provision is an exception to normal FEMA policy under the Act and is
intended to accommodate only those
rare instances that involve State fire
suppression of section 420 incident fires
involving co-mingled Federal/State and
privately owned forest or grassland.
(10) In those instances in which assistance under section 420 of the Act is
provided in conjunction with existing
Interstate Forest Fire Protection Compacts, eligible costs are reimbursed in
accordance with eligibility criteria established in this section.
(c) Program specific ineligible costs. (1)
Any costs for presuppression, salvaging
timber, restoring facilities, seeding and
planting operations.
(2) Any costs not incurred during the
incident period as determined by the
Regional Administrator other than
reasonable and directly related mobilization and demobilization costs.
(3) State costs for suppressing a fire
on co-mingled Federal land where such
costs are reimbursable to the State by
a Federal agency under another statute
(see 44 CFR part 151).
§ 206.395

Grant administration.

(a) Project administration shall be in
accordance with 44 CFR part 13, and
applicable portions of subpart G, 44
CFR part 206.
(b) In those instances in which reimbursement includes State fire suppression assistance on co-mingled State
and Federal lands (§ 206.394(b)(9)), the
Regional Administrator shall coordinate with other Federal programs to
preclude any duplication of payments.
(See 44 CFR part 151.)
(c) Audits shall be in accordance with
the Single Audit Act of 1984, Pub. L. 98–
502. (See subpart G of this part.)

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§§ 206.396–206.399

44 CFR Ch. I (10–1–11 Edition)

(d) A State may appeal a determination by the Regional Administrator on
any action related to Federal assistance for fire suppression. Appeal procedures are contained in 44 CFR 206.206.

Stafford Act and 44 CFR part 201 can
assist State and local governments in
determining where codes, specifications, and standards are inadequate,
and may need to be upgraded.

§§ 206.396–206.399

§ 206.401

[Reserved]

Subpart M—Minimum Standards
SOURCE: 67 FR 8852, Feb. 26, 2002, unless
otherwise noted.

§ 206.400 General.
(a) As a condition of the receipt of
any disaster assistance under the Stafford Act, the applicant shall carry out
any repair or construction to be financed with the disaster assistance in
accordance with applicable standards
of safety, decency, and sanitation and
in conformity with applicable codes,
specifications and standards.
(b) Applicable codes, specifications,
and standards shall include any disaster resistant building code that
meets the minimum requirements of
the National Flood Insurance Program
(NFIP) as well as being substantially
equivalent to the recommended provisions of the National Earthquake Hazards Reduction Program (NEHRP). In
addition, the applicant shall comply
with any requirements necessary in regards to Executive Order 11988, Floodplain Management, Executive Order
12699, Seismic Safety of Federal and
Federally Assisted or Regulated New
Building Construction, and any other
applicable Executive orders.
(c) In situations where there are no
locally applicable standards of safety,
decency and sanitation, or where there
are no applicable local codes, specifications and standards governing repair or
construction activities, or where the
Regional Administrator determines
that otherwise applicable codes, specifications, and standards are inadequate, then the Regional Administrator may, after consultation with appropriate State and local officials, require the use of nationally applicable
codes, specifications, and standards, as
well as safe land use and construction
practices in the course of repair or construction activities.
(d) The mitigation planning process
that is mandated by section 322 of the

Local standards.

The cost of repairing or constructing
a facility in conformity with minimum
codes, specifications and standards
may be eligible for reimbursement
under section 406 of the Stafford Act,
as long as such codes, specifications,
and standards meet the criteria that
are listed at 44 CFR 206.226(d).
[74 FR 47482, Sept. 16, 2009]

§ 206.402

Compliance.

A recipient of disaster assistance
under the Stafford Act must document
for the Regional Administrator its
compliance with this subpart following
the completion of any repair or construction activities.

Subpart N—Hazard Mitigation
Grant Program
SOURCE: 55 FR 35537, Aug. 30, 1990, unless
otherwise noted.

§ 206.430

General.

This subpart provides guidance on
the administration of hazard mitigation grants made under the provisions
of section 404 of the Robert T. Stafford
Disaster Relief and Emergency Assistance Act, 42 U.S.C. 5170c, hereafter
Stafford Act, or the Act.
[59 FR 24356, May 11, 1994]

§ 206.431

Definitions.

Activity means any mitigation measure, project, or action proposed to reduce risk of future damage, hardship,
loss or suffering from disasters.
Applicant means a State agency, local
government, Indian tribal government,
or eligible private nonprofit organization, submitting an application to the
grantee for assistance under the
HMGP.
Enhanced State Mitigation Plan is the
hazard mitigation plan approved under
44 CFR part 201 as a condition of receiving increased funding under the
HMGP.

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Federal Emergency Management Agency, DHS
Grant application means the request
to FEMA for HMGP funding, as outlined in § 206.436, by a State or tribal
government that will act as grantee.
Grant award means total of Federal
and non-Federal contributions to complete the approved scope of work.
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. Generally, the State for which the major
disaster is declared is the grantee.
However, an Indian tribal government
may choose to be a grantee, or it may
act as a subgrantee under the State.
An Indian tribal government acting as
a grantee will assume the responsibilities of a ‘‘state’’, under this subpart,
for the purposes of administering the
grant.
Indian Tribal government means any
Federally recognized governing body of
an Indian or Alaska Native Tribe,
band, nation, pueblo, village, or community that the Secretary of Interior
acknowledges to exist as an Indian
Tribe under the Federally Recognized
Indian Tribe List Act of 1994, 25 U.S.C.
479a. This does not include Alaska Native corporations, the ownership of
which is vested in private individuals.
Local Mitigation Plan is the hazard
mitigation plan required of a local government acting as a subgrantee as a
condition of receiving a project
subgrant under the HMGP as outlined
in 44 CFR 201.6.
Standard State Mitigation Plan is the
hazard mitigation plan approved under
44 CFR part 201, as a condition of receiving Stafford Act assistance as outlined in § 201.4.
State Administrative Plan for the Hazard Mitigation Grant Program means the
plan developed by the State to describe
the procedures for administration of
the HMGP.
Subgrant means an award of financial
assistance under a grant by a grantee
to an eligible subgrantee.
Subgrant application means the request to the grantee for HMGP funding
by the eligible subgrantee, as outlined
in § 206.436.

§ 206.432

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 organizations, or Indian tribal
government as outlined in § 206.433. Indian tribal governments acting as a
subgrantee are accountable to the
State grantee.
Tribal Mitigation Plan is the hazard
mitigation plan required of an Indian
Tribal government acting as a grantee
or subgrantee as a condition of receiving a project grant or subgrant under
the HMGP as outlined in 44 CFR 201.7.
[67 FR 8852, Feb. 26, 2002, as amended at 74
FR 47482, Sept. 16, 2009; 74 FR 60214, Nov. 20,
2009]

§ 206.432 Federal grant assistance.
(a) General. This section describes the
extent of Federal funding available
under the State’s grant, as well as limitations and special procedures applicable to each.
(b) Amounts of Assistance. The total
Federal contribution of funds is based
on the estimated aggregate grant
amount to be made under 42 U.S.C.
5170b, 5172, 5173, 5174, 5177, and 5183 of
the Stafford Act for the major disaster
(less associated administrative costs),
and shall be as follows:
(1) Standard percentages. Not to exceed
15
percent
for
the
first
$2,000,000,000 or less of such amounts;
not to exceed 10 percent of the portion
of such amounts over $2,000,000,000 and
not more than $10,000,000,000; and not
to exceed 7.5 percent of the portion of
such amounts over $10,000,000,000 and
not more than $35,333,000,000.
(2) Twenty (20) percent. A State with
an approved Enhanced State Mitigation Plan, in effect before the disaster
declaration, which meets the requirements outlined in § 201.5 of this subchapter shall be eligible for assistance
under the HMGP not to exceed 20 percent of such amounts, for amounts not
more than $35.333 billion.
(3) The estimates of Federal assistance under this paragraph (b) shall be
based on the Regional Administrator’s
estimate of all eligible costs, actual
grants, and appropriate mission assignments.

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§ 206.433

44 CFR Ch. I (10–1–11 Edition)

(c) Cost sharing. All mitigation measures approved under the State’s grant
will be subject to the cost sharing provisions established in the FEMA-State
Agreement. FEMA may contribute up
to 75 percent of the cost of measures
approved for funding under the Hazard
Mitigation Grant Program for major
disasters declared on or after June 10,
1993. FEMA may contribute up to 50
percent of the cost of measures approved for funding under the Hazard
Mitigation Grant Program for major
disasters declared before June 10, 1993.
The nonFederal share may exceed the
Federal share. FEMA will not contribute to costs above the Federally approved estimate.
[55 FR 35537, Aug. 30, 1990, as amended at 59
FR 24356, May 11, 1994; 67 FR 8853, Feb. 26,
2002; 67 FR 61515, Oct. 1, 2002; 69 FR 55097,
Sept. 13, 2004; 72 FR 61750, Oct. 31, 2007; 74 FR
47482, Sept. 16, 2009]

§ 206.433

State responsibilities.

(a) Grantee. The State will be the
Grantee to which funds are awarded
and will be accountable for the use of
those funds. There may be subgrantees
within the State government.
(b) Priorities. The State will determine priorities for funding. This determination must be made in conformance with § 206.435.
(c) Hazard Mitigation Officer. The
State must appoint a Hazard Mitigation Officer who serves as the responsible individual for all matters related
to the Hazard Mitigation Grant Program.
(d) Administrative plan. The State
must have an approved administrative
plan for the Hazard Mitigation Grant
Program in conformance with § 206.437.
[55 FR 35537, Aug. 30, 1990, as amended at 72
FR 61750, Oct. 31, 2007]

§ 206.434

Eligibility.

(a) Applicants. The following are eligible to apply for the Hazard Mitigation Program Grant:
(1) State and local governments;
(2) Private nonprofit organizations
that own or operate a private nonprofit
facility as defined in § 206.221(e). A
qualified conservation organization as
defined at § 80.3(h) of this chapter is the
only private nonprofit organization eli-

gible to apply for acquisition or relocation for open space projects;
(3) Indian tribes or authorized tribal
organizations and Alaska Native villages or organizations, but not Alaska
native corporations with ownership
vested in private individuals.
(b) Plan requirement. (1) Local and Indian Tribal government applicants for
project subgrants must have an approved local or Tribal Mitigation Plan
in accordance with 44 CFR part 201 before receipt of HMGP subgrant funding
for projects.
(2) Regional Administrators may
grant an exception to this requirement
in extraordinary circumstances, such
as in a small and impoverished community when justification is provided. In
these cases, a plan will be completed
within 12 months of the award of the
project grant. If a plan is not provided
within this timeframe, the project
grant will be terminated, and any costs
incurred after notice of grant’s termination will not be reimbursed by
FEMA.
(c) Minimum project criteria. To be eligible for the Hazard Mitigation Grant
Program, a project must:
(1) Be in conformance with the State
Mitigation Plan and Local or Tribal
Mitigation Plan approved under 44 CFR
part 201; or for Indian Tribal governments acting as grantees, be in conformance with the Tribal Mitigation
Plan approved under 44 CFR 201.7;
(2) Have a beneficial impact upon the
designated disaster area, whether or
not located in the designated area;
(3) Be in conformance with 44 CFR
part 9, Floodplain Management and
Protection of Wetlands, and 44 CFR
part 10, Environmental Considerations;
(4) Solve a problem independently or
constitute a functional portion of a solution where there is assurance that
the project as a whole will be completed. Projects that merely identify or
analyze hazards or problems are not eligible;
(5) Be cost-effective and substantially reduce the risk of future damage,
hardship, loss, or suffering resulting
from a major disaster. The grantee
must demonstrate this by documenting
that the project;
(i) Addresses a problem that has been
repetitive, or a problem that poses a

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Federal Emergency Management Agency, DHS
significant risk to public health and
safety if left unsolved,
(ii) Will not cost more than the anticipated value of the reduction in both
direct damages and subsequent negative impacts to the area if future disasters were to occur,
(iii) Has been determined to be the
most practical, effective, and environmentally sound alternative after consideration of a range of options,
(iv) Contributes, to the extent practicable, to a long-term solution to the
problem it is intended to address,
(v) Considers long-term changes to
the areas and entities it protects, and
has manageable future maintenance
and modification requirements.
(d) Eligible activities—(1) Planning. Up
to 7% of the State’s HMGP grant may
be used to develop State, tribal and/or
local mitigation plans to meet the
planning criteria outlined in 44 CFR
part 201.
(2) Types of projects. Projects may be
of any nature that will result in protection to public or private property.
Activities for which implementation
has already been initiated or completed are not eligible for funding. Eligible projects include, but are not limited to:
(i) Structural hazard control or protection projects;
(ii) Construction activities that will
result in protection from hazards;
(iii) Retrofitting of facilities;
(iv) Property acquisition or relocation, as defined in paragraph (e) of this
section;
(v) Development of State or local
mitigation standards;
(vi) Development of comprehensive
mitigation programs with implementation as an essential component;
(vii) Development or improvement of
warning systems.
(e) Property acquisitions and relocation
requirements. Property acquisitions and
relocation projects for open space proposed for funding pursuant to a major
disaster declared on or after December
3, 2007 must be implemented in accordance with part 80 of this chapter. For
major disasters declared before December 3, 2007, a project involving property
acquisition or the relocation of structures and individuals is eligible for assistance only if the applicant enters

§ 206.434

into an agreement with the FEMA Regional Administrator that provides assurances that:
(1) The following restrictive covenants shall be conveyed in the deed to
any property acquired, accepted, or
from which structures are removed
(hereafter called in section (d) the
property):
(i) The property shall be dedicated
and maintained in perpetuity for uses
compatible with open space, recreational, or wetlands management
practices; and
(ii) No new structure(s) will be built
on the property except as indicated
below:
(A) A public facility that is open on
all sides and functionally related to a
designated open space or recreational
use;
(B) A rest room; or
(C) A structure that is compatible
with open space, recreational, or wetlands management usage and proper
floodplain management policies and
practices, which the Administrator approves in writing before the construction of the structure begins.
(iii) After completion of the project,
no application for additional disaster
assistance will be made for any purpose
with respect to the property to any
Federal entity or source, and no Federal entity or source will provide such
assistance.
(2) 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 wheeled
vehicles which are easily movable (except mobile homes), unimproved, previous parking lots, and buffer zones.
(3) Any structures built on the property according to paragraph (d)(1) of
this section, shall be floodproofed or
elevated to the Base Flood Elevation
plus one foot of freeboard.
(f) Duplication of programs. Section
404 funds cannot be used as a substitute
or replacement to fund projects or programs that are available under other
Federal authorities, except under limited circumstances in which there are

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§ 206.435

44 CFR Ch. I (10–1–11 Edition)

extraordinary threats to lives, public
health or safety or improved property.
(g) Packaging of programs. Section 404
funds may be packaged or used in combination with other Federal, State,
local, or private funding sources when
appropriate to develop a comprehensive mitigation solution, though section 404 funds cannot be used as a
match for other Federal funds.
[55 FR 35537, Aug. 30, 1990, as amended at 59
FR 24356, May 11, 1994; 67 FR 8853, Feb. 26,
2002; 67 FR 61515, Oct. 1, 2002; 69 FR 55097,
Sept. 13, 2004; 72 FR 61750, Oct. 31, 2007; 74 FR
47483, Sept. 16, 2009]

§ 206.435 Project identification and selection criteria.
(a) Identification. It is the State’s responsibility to identify and select eligible hazard mitigation projects. All
funded projects must be consistent
with the State Mitigation Plan. Hazard
Mitigation projects shall be identified
and prioritized through the State, Indian tribal, and local planning process.
(b) Selection. The State will establish
procedures and priorities for the selection of mitigation measures. At a minimum, the criteria must be consistent
with the criteria stated in § 206.434(c)
and include:
(1) Measures that best fit within an
overall plan for development and/or
hazard mitigation in the community,
disaster area, or State;
(2) Measures that, if not taken, will
have a severe detrimental impact on
the applicant, such as potential loss of
life, loss of essential services, damage
to critical facilities, or economic hardship on the community;
(3) Measures that have the greatest
potential impact on reducing future
disaster losses;
(c) Other considerations. In addition to
the selection criteria noted above, consideration should be given to measures
that are designed to accomplish multiple objectives including damage reduction, environmental enhancement,
and economic recovery, when appropriate.
[55 FR 35537, Aug. 30, 1990, as amended at 66
FR 8853, Feb. 26, 2002; 68 FR 63738, Nov. 10,
2003]

§ 206.436 Application procedures.
(a) General. This section describes the
procedures to be used by the grantee in
submitting an application for HMGP
funding. Under the HMGP, the State or
Indian tribal government is the grantee and is responsible for processing
subgrants to applicants in accordance
with 44 CFR part 13 and this part 206.
Subgrantees are accountable to the
grantee.
(b) Governor’s Authorized Representative. The Governor’s Authorized Representative serves as the grant administrator for all funds provided under
the Hazard Mitigation Grant Program.
The Governor’s Authorized Representative’s responsibilities as they pertain
to procedures outlined in this section
include providing technical advice and
assistance to eligible subgrantees, and
ensuring that all potential applicants
are aware of assistance available and
submission of those documents necessary for grant award.
(c) Hazard mitigation application. Upon
identification of mitigation measures,
the State (Governor’s Authorized Representative) will submit its Hazard
Mitigation Grant Program application
to the FEMA Regional Administrator.
The application will identify one or
more mitigation measures for which
funding is requested. The application
must include a Standard Form (SF)
424, Application for Federal Assistance,
SF 424D, Assurances for Construction
Programs, if appropriate, and a narrative statement. The narrative statement will contain any pertinent
project management information not
included in the State’s administrative
plan for Hazard Mitigation. The narrative statement will also serve to
identify the specific mitigation measures for which funding is requested. Information required for each mitigation
measure shall include the following:
(1) Name of the subgrantee, if any;
(2) State or local contact for the
measure;
(3) Location of the project;
(4) Description of the measure;
(5) Cost estimate for the measure;
(6) Analysis of the measure’s cost-effectiveness and substantial risk reduction, consistent with § 206.434(c);
(7) Work schedule;
(8) Justification for selection;

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Federal Emergency Management Agency, DHS
(9) Alternatives considered;
(10) Environmental information consistent with 44 CFR part 9, Floodplain
Management and Protection of Wetlands, and 44 CFR part 10, Environmental Considerations.
(d) Application submission time limit.
The State’s application may be amended as the State identifies and selects
local project applications to be funded.
The State must submit all local HMGP
applications and funding requests for
the purpose of identifying new projects
to the Regional Administrator within
12 months of the date of disaster declaration.
(e) Extensions. The State may request
the Regional Administrator to extend
the application time limit by 30 to 90
day increments, not to exceed a total
of 180 days. The grantee must include a
justification in its request.
(f) FEMA approval. The application
and supplement(s) will be submitted to
the FEMA Regional Administrator for
approval. FEMA has final approval authority for funding of all projects.
(g) Indian tribal grantees. Indian tribal
governments may submit a SF 424 directly to the Regional Administrator.
[67 FR 8853, Feb. 26, 2002]

§ 206.437

State administrative plan.

(a) General. The State shall develop a
plan for the administration of the Hazard Mitigation Grant Program.
(b) Minimum criteria. At a minimum,
the State administrative plan must include the items listed below:
(1) Designation of the State agency
will have responsibility for program
administration;
(2) Identification of the State Hazard
Mitigation Officer responsible for all
matters related to the Hazard Mitigation Grant Program.
(3) Determination of staffing requirements and sources of staff necessary
for administration of the program;
(4) Establishment of procedures to:
(i) Identify and notify potential applicants (subgrantees) of the availability of the program;
(ii) Ensure that potential applicants
are provided information on the application process, program eligibility and
key deadlines;
(iii) Determine applicant eligibility;

§ 206.438

(iv) Conduct environmental and
floodplain management reviews;
(v) Establish priorities for selection
of mitigation projects;
(vi) Process requests for advances of
funds and reimbursement;
(vii) Monitor and evaluate the
progress and completion of the selected
projects;
(viii) Review and approve cost overruns;
(ix) Process appeals;
(x) Provide technical assistance as
required to subgrantee(s);
(xi) Comply with the administrative
and audit requirements of 44 CFR parts
13 and 206;
(xii) Provide quarterly progress reports to the Regional Administrator on
approved projects.
(xiii) Determine the percentage or
amount of pass-through funds for management costs provided under 44 CFR
part 207 that the grantee will make
available to subgrantees, and the basis,
criteria, or formula for determining
the subgrantee percentage or amount.
(c) Format. The administrative plan
is intended to be a brief but substantive plan documenting the State’s
process for the administration of the
Hazard Mitigation Grant Program and
management of the section 404 funds.
This administrative plan should become a part of the State’s overall
emergency response or operations plan
as a separate annex or chapter.
(d) Approval. The State must submit
the administrative plan to the Regional Administrator for approval. Following each major disaster declaration,
the State shall prepare any updates,
amendments, or plan revisions required
to meet current policy guidance or
changes in the administration of the
Hazard Mitigation Grant Program.
Funds shall not be awarded until the
State administrative plan is approved
by the FEMA Regional Administrator.
[55 FR 35537, Aug. 30, 1990, as amended at 55
FR 52172, Dec. 20, 1990; 72 FR 57875, Oct. 11,
2007; 74 FR 15352, Apr. 3, 2009]

§ 206.438

Project management.

(a) General. The State serving as
grantee has primary responsibility for
project management and accountability of funds as indicated in 44 CFR

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§ 206.439

44 CFR Ch. I (10–1–11 Edition)

part 13. The State is responsible for ensuring that subgrantees meet all program and administrative requirements.
(b) Cost overruns. During the execution of work on an approved mitigation
measure the Governor’s Authorized
Representative may find that actual
project costs are exceeding the approved estimates. Cost overruns which
can be met without additional Federal
funds, or which can be met by offsetting cost underruns on other projects,
need not be submitted to the Regional
Administrator for approval, so long as
the full scope of work on all affected
projects can still be met. For cost overruns which exceed Federal obligated
funds and which require additional
Federal funds, the Governor’s Authorized Representative shall evaluate each
cost overrun and shall submit a request
with a recommendation to the Regional Administrator for a determination. The applicant’s justification for
additional costs and other pertinent
material shall accompany the request.
The Regional Administrator shall notify the Governor’s Authorized Representative in writing of the determination and process a supplement, if
necessary. All requests that are not
justified shall be denied by the Governor’s Authorized Representative. In
no case will the total amount obligated
to the State exceed the funding limits
set forth in § 206.432(b). Any such problems or circumstances affecting project
costs shall be identified through the
quarterly progress reports required in
paragraph (c) of this section.
(c) Progress reports. The grantee shall
submit a quarterly progress report to
FEMA indicating the status and completion date for each measure funded.
Any problems or circumstances affecting completion dates, scope of work, or
project costs which are expected to result in noncompliance with the approved grant conditions shall be described in the report.
(d) Payment of claims. The Governor’s
Authorized Representative shall make
a claim to the Regional Administrator
for reimbursement of allowable costs
for each approved measure. In submitting such claims the Governor’s Authorized Representative shall certify
that reported costs were incurred in
the performance of eligible work, that

the approved work was completed and
that the mitigation measure is in compliance with the provisions of the
FEMA-State Agreement. The Regional
Administrator shall determine the eligible amount of reimbursement for
each claim and approve payment. If a
mitigation measure is not completed,
and there is not adequate justification
for noncompletion, no Federal funding
will be provided for that measure.
(e) Audit requirements. Uniform audit
requirements as set forth in 44 CFR
part 13 apply to all grant assistance
provided under this subpart. FEMA
may elect to conduct a Federal audit
on the disaster assistance grant or on
any of the subgrants.
[55 FR 35537, Aug. 30, 1990, as amended at 74
FR 15352, Apr. 3, 2009]

§ 206.439

Allowable costs.

(a) General requirements for determining allowable costs are established
in 44 CFR 13.22. Exceptions to those requirements as allowed in 44 CFR 13.4
and 13.6 are explained in paragraph (b)
of this section.
(b) Administrative and management
costs for major disasters will be paid in
accordance with 44 CFR part 207.
(c) Pre-award costs. FEMA may fund
eligible pre-award planning or project
costs at its discretion and as funds are
available. Grantees and subgrantees
may be reimbursed for eligible preaward costs for activities directly related to the development of the project
or planning proposal. These costs can
only be incurred during the open application period of the grant program.
Costs associated with implementation
of the activity but incurred prior to
grant award are not eligible. Therefore,
activities where implementation is initiated or completed prior to award are
not eligible and will not be reimbursed.
[72 FR 57875, Oct. 11, 2007, as amended at 72
FR 61750, Oct. 31, 2007]

§ 206.440

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.

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Federal Emergency Management Agency, DHS
(a) Format and Content. The applicant
or subgrantee will make the appeal in
writing through the grantee to the Regional Administrator. The grantee
shall review and evaluate all subgrantee appeals before submission to
the
Regional
Administrator.
The
grantee may make grantee-related appeals to the Regional Administrator.
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
Administrator will consider first appeals for hazard mitigation grant program-related decisions under subparts
M and N of this part.
(2) The Assistant Administrator for
the Mitigation Directorate will consider appeals of the Regional Administrator’s decision on any first appeal
under paragraph (b)(1) of this section.
(c) Time Limits. (1) Appellants must
make 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 Administrator
within 60 days of receipt.
(3) Within 90 days following receipt of
an appeal, the Regional Administrator
(for first appeals) or Assistant Administrator for the Mitigation Directorate
(for second appeals) will notify the
grantee in writing of the disposition of
the appeal or of the need for additional
information. A request by the Regional
Administrator or Assistant Administrator for the Mitigation Directorate
for additional information will include
a date by which the information must
be provided. Within 90 days following
the receipt of the requested additional
information or following expiration of
the period for providing the information, the Regional Administrator or
Assistant Administrator for the Mitigation Directorate will notify the
grantee in writing of the disposition of
the appeal. If the decision is to grant
the appeal, the Regional Administrator
will take appropriate implementing action.

Pt. 207

(d) Technical Advice. In appeals involving highly technical issues, the Regional Administrator or Assistant Administrator for the Mitigation Directorate may, at 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 Administrator or Assistant Administrator for the Mitigation Directorate 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 Assistant Administrator for the
Mitigation Directorate before May 8,
1998 may be appealed to the Administrator in accordance with 44 CFR
206.440 as it existed before May 8, 1998.
(3) The decision of the FEMA official
at the next higher appeal level shall be
the final administrative decision of
FEMA.
[63 FR 17111, Apr. 8, 1998]

PART 207—MANAGEMENT COSTS
Sec.
207.1 Purpose.
207.2 Definitions.
207.3 Applicability and eligibility.
207.4 Responsibilities.
207.5 Determination of management cost
funding.
207.6 Use of funds.
207.7 Procedures for requesting management cost funding.
207.8 Management cost funding oversight.
207.9 Declarations before November 13, 2007.
207.10 Review of management cost rates.
AUTHORITY: Robert T. Stafford Disaster
Relief and Emergency Assistance Act, 42
U.S.C. 5121 through 5206; Reorganization
Plan No. 3 of 1978, 43 FR 41943, 3 CFR, 1978
Comp., p. 329; Homeland Security Act of 2002,
6 U.S.C. 101; E.O. 12127, 44 FR 19367, 3 CFR,
1979 Comp., p. 376; E.O. 12148, 44 FR 43239, 3
CFR, 1979 Comp., p. 412; E.O. 13286, 68 FR
10619, 3 CFR, 2003 Comp., p. 166.
SOURCE: 72 FR 57875, Oct. 11, 2007, unless
otherwise noted.

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