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Federal Coordination and Compliance Section

[Code of Federal Regulations]
[Title 44, Volume 1]
[Revised as of October 1, 2002]
From the U.S. Government Printing Office via GPO Access
[CITE: 44CFR206]

[Page 414-515]
 
              TITLE 44--EMERGENCY MANAGEMENT AND ASSISTANCE
 
             CHAPTER I--FEDERAL EMERGENCY MANAGEMENT AGENCY
 
PART 206--FEDERAL DISASTER ASSISTANCE FOR DISASTERS DECLARED ON OR AFTER NOVEMBER 23, 1988

                           Subpart A--General

Sec.
206.1  Purpose.
206.2  Definitions.

[[Page 415]]

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  Purpose.
206.32  Definitions.
206.33  Preliminary damage assessment.
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]

                 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.
206.209-206.219  [Reserved]

                Subpart H--Public Assistance Eligibility

206.220  General.

[[Page 416]]

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]

           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]

                Subpart J--Coastal Barrier Resources Act

206.340  Purpose of subpart.
206.341  Policy.
206.342  Definitions.
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.
206.368-206.389  [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]

                      Subpart M--Minimum Standards

206.400  General.
206.401  Local standards.
206.402  Compliance.

               Subpart N--Hazard Mitigation Grant Program

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. 5121-5206; Reorganization Plan No. 3 of 1978, 
43 FR 41943, 3 CFR, 1978 Comp., p. 329; 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. 12673, 54 FR 12571, 3 CFR, 1989 Comp., p. 214.

    Source: 54 FR 11615, Mar. 21, 1989, unless otherwise noted.

                           Subpart A--General

    Source: 55 FR 2288, Jan. 23, 1990, unless otherwise noted.

Sec. 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 Director, 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]

Sec. 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.

[[Page 417]]

    (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) Associate Director or Executive Associate Director:
    (i) Unless otherwise specified in subparts A through K of this part, 
the Associate Director or Assistant Director of the Readiness, Response 
and Recovery Directorate, or his/her designated representative.
    (ii) Unless otherwise specified in subparts M and N of this part, 
the Associate Director or Executive Associate Director of the Mitigation 
Directorate, or his/her designated representative.
    (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) Director: The Director, FEMA.
    (8) Disaster Recovery Manager (DRM): The person appointed to 
exercise the authority of a Regional Director 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 
Director, or in his absence, the Deputy Director, or alternatively the 
Associate 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 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: Any county, city, village, town, district, or 
other political subdivision of any State; any Indian tribe or authorized 
tribal organization; any Alaska Native village or organization; and 
includes any rural community, unincorporated town or village, or other 
public entity for which an application for assistance is made by a State 
or political subdivision thereof.
    (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,

[[Page 418]]

loss, hardship, or suffering caused thereby.
    (18) Mission assignment: Work order issued to a Federal agency by 
the Regional Director, Associate Director, or Director, 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
    (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 Director: A director of a regional office of FEMA, or 
his/her designated representative. As used in these regulations, 
Regional Director also means the Disaster Recovery Manager who has been 
appointed to exercise the authority of the Regional Director 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, the 
Trust Territory of the Pacific Islands, the Commonwealth of the Northern 
Mariana Islands, the Federated States of Micronesia, or the Republic of 
the Marshall 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 State-level 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, the Trust Territory of 
the Pacific Islands, and the Northern Mariana Islands.
    (27) Voluntary organization: Any chartered or otherwise duly 
recognized tax-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]

Sec. 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

[[Page 419]]

    (e) Encouraging hazard mitigation measures, such as development of 
land-use and construction regulations, floodplain management, protection 
of wetlands, and environmental planning, to reduce losses from 
disasters.

Sec. 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]

Sec. 206.5  Assistance by other Federal agencies.

    (a) In any declared major disaster, the Associate Director or the 
Regional Director 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 Associate Director or the 
Regional Director 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 Associate 
Director or the Regional Director may direct any Federal agency to 
provide emergency assistance necessary to save lives and to protect 
property, public health, and safety by:
    (1) Utilizing, lending, or donating to State and local governments 
Federal equipment, supplies, facilities, personnel, and other resources, 
other than the extension of credit, for use or distribution by such 
governments in accordance with the purposes of this Act;
    (2) Distributing medicine, food, and other consumable supplies; or
    (3) Performing work or services to provide emergency assistance 
authorized in the Stafford Act.
    (d) Disaster assistance by other Federal agencies is subject to the 
coordination of the FCO. Federal agencies shall provide any reports or 
information about disaster assistance rendered under the provisions of 
these regulations or authorities independent of the Stafford Act, that 
the FCO or Regional Director 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 
Associate Director under these regulations.
    (f) Assistance under paragraphs (a), (b), or (c) of this section, 
when directed by the Associate Director or Regional Director, 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.

Sec. 206.6  Donation or loan of Federal equipment and supplies.

    (a) In any major disaster or emergency, the Associate Director or 
the Regional Director may direct Federal

[[Page 420]]

agencies to donate or loan their equipment and supplies to State and 
local governments for use and distribution by them for the purposes of 
the Stafford Act.
    (b) A donation or loan may include equipment and supplies determined 
under applicable laws and regulations to be surplus to the needs and 
responsibilities of the Federal Government. The State shall certify that 
the surplus property is usable and necessary for current disaster 
purposes in order to receive a donation or loan. Such a donation or loan 
is made in accordance with procedures prescribed by the General Services 
Administration.

Sec. 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.

Sec. 206.8  Reimbursement of other Federal agencies.

    (a) Assistance furnished under Sec. 206.5 (a) or (b) of this subpart 
may be provided with or without compensation as considered appropriate 
by the Associate Director or Regional Director.
    (b) The Associate Director 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 Associate Director 
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 
Associate Director or the Regional Director in the major disaster or 
emergency area designated by the Regional Director.
    (3) Travel and per diem of Federal military personnel assigned 
solely to the performance of services directed by the Associate Director 
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 Associate 
Director 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 Associate Director 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

[[Page 421]]

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 Director 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.

Sec. 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.

Sec. 206.10  Use of local firms and individuals.

    In the expenditure of Federal funds for debris removal, distribution 
of supplies, reconstruction, and other major disaster or emergency 
assistance activities which may be carried out by contract or agreement 
with private organizations, firms, or individuals, preference shall be 
given, to the extent feasible and practicable, to those organizations, 
firms, and individuals residing or doing business primarily in the area 
affected by such major disaster or emergency. This shall not be 
considered to restrict the use of Department of Defense resources in the 
provision of major disaster assistance under the Stafford Act.

Sec. 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.

Sec. 206.12  Use and coordination of relief organizations.

    (a) In providing relief and assistance under the Stafford Act, the 
FCO or Regional Director 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 Director finds that 
such utilization is necessary.
    (b) The Associate Director 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

[[Page 422]]

assuring that use of Federal facilities, supplies, and services will be 
in compliance with Sec. 206.11, Nondiscrimination in Disaster 
Assistance, and Sec. 206.191, Duplication of Benefits, of these 
regulations and such other regulations as the Associate Director 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.

Sec. 206.13  Standards and reviews.

    (a) The Associate Director 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 Associate Director or 
Regional Director may direct Federal agencies to submit reports relating 
to their disaster assistance activities. The Associate Director or the 
Regional Director may request similar reports from the States relating 
to these activities on the part of State and local governments. 
Additionally, the Associate Director or Regional Director 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]

Sec. 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 this Act shall 
be fined an amount equal to one and one-half times the misapplied amount 
of the proceeds or cash benefit.
    (b) Civil enforcement. Whenever it appears that any person has 
violated or is about to violate any provision of this Act, including any 
civil penalty imposed under this 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 Associate Director shall 
expeditously refer to the Attorney General for appropriate action any 
evidence developed in the performance of functions under this Act that 
may warrant consideration for criminal prosecution.
    (d) Civil penalty. Any individual who knowingly violates any order 
or regulation issued under this Act shall be subject to a civil penalty 
of not more than $5,000 for each violation.

Sec. 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.

Sec. 206.16  Audit and investigations.

    (a) Subject to the provisions of chapter 75 of title 31, United 
States Code, and 44 CFR part 14, relating to requirements for single 
audits, the Associate Director or Regional Director 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 
Regional Director, the Associate Director, and the Comptroller General 
of the United

[[Page 423]]

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.

Sec. 206.17  Effective date.

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

Secs. 206.18-206.30  [Reserved]

                   Subpart B--The Declaration Process

    Source: 55 FR 2292, Jan. 23, 1990, unless otherwise noted.

Sec. 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.

Sec. 206.32  Definitions.

    All definitions in the Stafford Act and in Sec. 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 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 Sec. 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 FEMA-State Agreement and published in the 
Federal Register.

Sec. 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. Informtion 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 request the Regional Director 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

[[Page 424]]

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 Director upon consultation with the State. It may be necessary, 
however, to conduct an assessment to determine unmet needs for 
managerial response purposes.

Sec. 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 governments, the Associate 
Director 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 Associate Director through the appropriate 
Regional Director 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 Director shall gather adequate information to support a 
recommendation and forward it to the Associate Director. If the 
Associate Director 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

[[Page 425]]

authorization of DOD assistance by the Associate Director.
    (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 
Director 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 Director 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 Sec. 206.8 of these regulations.

Sec. 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 Director 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 
Associate Director 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 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 Director. Any recommendation for a 
Presidential declaration of emergency in the absence of a Governor's 
request must be initiated by the Regional Director or transmitted 
through the Regional Director by another Federal agency. In determining 
that such an emergency exists, the Associate Director or Regional 
Director 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.

[[Page 426]]

Sec. 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 Director 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 Associate Director, provided that a 
written request for an extension is submitted by the Governor, or Acting 
Governor, during this 30-day period. The extension request will 
stipulate reasons for the delay.
    (b) The basis for the request shall be a finding that:
    (1) The situation is of such severity and magnitude that effective 
response is beyond the capabilities of the State and affected local 
governments; and
    (2) Federal assistance under the Act is necessary to supplement the 
efforts and available resources of the State, local governments, 
disaster relief organizations, and compensation by insurance for 
disaster-related losses.
    (c) In addition to the above findings, the complete request shall 
include:
    (1) Confirmation that the Governor has taken appropriate action 
under State law and directed the execution of the State emergency plan;
    (2) An estimate of the amount and severity of damages and losses 
stating the impact of the disaster on the public and private sector;
    (3) Information describing the nature and amount of State and local 
resources which have been or will be committed to alleviate the results 
of the disaster;
    (4) Preliminary estimates of the types and amount of supplementary 
Federal disaster assistance needed under the Stafford Act; and
    (5) Certification by the Governor that State and local government 
obligations and expenditures for the current disaster will comply with 
all applicable cost sharing requirements of the Stafford Act.
    (d) For those catastrophes of unusual severity and magnitude when 
field damage assessments are not necessary to determine the requirement 
for supplemental Federal assistance, the Governor or Acting Governor may 
send an abbreviated written request through the Regional Director 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 Director of FEMA. The request must indicate a finding in accordance 
with Sec. 206.36(b), and must include as a minimum the information 
requested by Sec. 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 
Associate Director shall assure that documentation of the declaration is 
later assembled to comply fully with these regulations.

Sec. 206.37  Processing requests for declarations of a major disaster or 
          emergency.

    (a) Acknowledgment. The Regional Director 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 Director shall promptly prepare a summary of the 
PDA findings. The data will be analyzed and submitted with a 
recommendation to the Associate Director. 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 
Director 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

[[Page 427]]

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 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.

Sec. 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]

Sec. 206.39  Notification.

    (a) The Governor will be promptly notified by the Director or his/
her designee of a declaration by the President that an emergency or a 
major disaster exists. FEMA also will notify other Federal agencies and 
other interested parties.
    (b) The Governor will be promptly notified by the Director 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 Director or Associate Director will promptly notify the 
Governor of the designations of assistance and areas eligible for such 
assistance.

Sec. 206.40  Designation of affected areas and eligible assistance.

    (a) Eligible assistance. The Associate Director 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 Associate Director 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 Associate Director may authorize 
all, or only particular types of, supplementary Federal assistance 
requested by the Governor.

[[Page 428]]

    (b) Areas eligible to receive assistance. The Associate Director 
also has been delegated authority to designate the disaster-affected 
areas eligible for supplementary Federal assistance under the Stafford 
Act. These designations shall be published in the Federal Register. A 
disaster-affected area designated by the Associate Director includes all 
local government jurisdictions within its boundaries. The Associate 
Director may, based upon 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 Associate Director. 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 Associate Director 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.

Sec. 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 Director, or in his 
absence, the Deputy Director, or alternately, the Associate Director 
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 Director shall designate 
a DRM to exercise all the authority of the Regional Director 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.

Sec. 206.42  Responsibilities of coordinating officers.

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

[[Page 429]]

as necessary to assist citizens and public officials in promptly 
obtaining assistance to which they are entitled.
    (b) The SCO coordinates State and local disaster assistance efforts 
with those of the Federal Government working closely with the FCO. The 
SCO is the principal point of contact regarding coordination of State 
and local disaster relief activities, and implementation of the State 
emergency plan. The functions, responsibilities, and authorities of the 
SCO are set forth in the State emergency plan. It is the responsibility 
of the SCO to ensure that all affected local jurisdictions are informed 
of the declaration, the types of assistance authorized, and the areas 
eligible to receive such assistance.

Sec. 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.

Sec. 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 
Director or his/her designee, acting for the Federal Government, shall 
execute a FEMA-State 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 
Director to begin the process of providing essential emergency services 
or housing assistance 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 Director 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]

Sec. 206.45  Loans of non-Federal share.

    (a) Conditions for making loans. At the request of the Governor, the 
Associate Director 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:

[[Page 430]]

    (1) The State or other eligible disaster assistance applicant is 
unable to assume their financial responsibility under such cost sharing 
provisions:
    (i) As a result of concurrent, multiple major disasters in a 
jurisdiction, or
    (ii) After incurring extraordinary costs as a result of a particular 
disaster;
    (2) The damages caused by such disasters or disaster are so 
overwhelming and severe that it is not possible for the State or other 
eligible disaster assistance applicant to immediately assume their 
financial responsibility under the Act; and
    (3) The State and the other eligible disaster applicants are not 
delinquent in payment of any debts to FEMA incurred as a result of 
Presidentially declared major disasters or emergencies.
    (b) Repayment of loans. 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 
Associate Director.
    (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.

Sec. 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 Director. 
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 Associate Director through the appropriate Regional 
Director.
    (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 Associate Director through the appropriate Regional 
Director.
    (d) Extension of time to appeal. The 30-day period referred to in 
paragraphs (a), (b), or (c) of this section may be extended by the 
Associate Director provided that a written request for such an 
extension, citing reasons for the delay, is made during this 30-day 
period, and if the Associate Director 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.

Sec. 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

[[Page 431]]

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]

Sec. 206.48  Factors considered when evaluating a Governor's request for 
          a major disaster declaration.

    When we review a Governor's request for major disaster assistance 
under the Stafford Act, these are the primary factors in making a 
recommendation to the President whether assistance is warranted. We 
consider other relevant information as well.
    (a) Public Assistance Program. 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 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

[[Page 432]]

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]
----------------------------------------------------------------------------------------------------------------
                                       Small states  (under 2     Medium states  (2-10    Large states  (over 10
                                            million pop.)            million pop.)            million pop.)
----------------------------------------------------------------------------------------------------------------
Average Population (1990 census       1,000,057...............  4,713,548..............  15,522,791
 data).
Number of Disaster Housing            1,507...................  2,747..................  4,679
 Applications Approved.
Number of Homes Estimated Major       173.....................  582....................  801
 Damage/Destroyed.
Dollar Amount of Housing Assistance.  $2.8 million              $4.6 million             $9.5 million
Number of Individual and Family       495.....................  1,377..................  2,071
 Grant Applications Approved.
Dollar Amount of Individual and       1.1 million.............  2.9 million............  4.6 million
 Family Grant Assistance.
Disaster Housing/IFG Combined         3.9 million.............  7.5 million............  14.1 million
 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 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 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,

[[Page 433]]

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]

Secs. 206.49-206.60  [Reserved]

                     Subpart C--Emergency Assistance

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

Sec. 206.61  Purpose.

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

Sec. 206.62  Available assistance.

    In any emergency declaration, the Associate Director or Regional 
Director may provide assistance, as follows:
    (a) Direct any Federal agency, with or without reimbursement, to 
utilize its authorities and the resources granted to it under Federal 
law (including personnel, equipment, supplies, facilities, and 
managerial, technical and advisory services) in support of State and 
local emergency assistance efforts to save lives, protect property and 
public health and safety, and lessen or avert the threat of a 
catastrophe;
    (b) Coordinate all disaster relief assistance (including voluntary 
assistance) provided by Federal agencies, private organizations, and 
State and local governments;
    (c) Provide technical and advisory assistance to affected State and 
local governments for:
    (1) The performance of essential community services;
    (2) Issuance of warnings of risks or hazards;
    (3) Public health and safety information, including dissemination of 
such information;
    (4) Provision of health and safety measures; and
    (5) Management, control, and reduction of immediate threats to 
public health and safety;
    (d) Provide emergency assistance under the Stafford Act through 
Federal agencies;
    (e) Remove debris in accordance with the terms and conditions of 
section 407 of the Stafford Act;
    (f) Provide assistance in accordance with section 408 of the 
Stafford Act.; and
    (g) Assist State and local governments in the distribution of 
medicine, food, and other consumable supplies, and emergency assistance.

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

Sec. 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.

Sec. 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.

Sec. 206.65  Cost sharing.

    The Federal share for assistance provided under this title shall not 
be less than 75 percent of the eligible costs.

Sec. 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 Associate 
Director 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.

Sec. 206.67  Requirement when limitation is exceeded.

    Whenever the limitation described in Sec. 206.66 is exceeded, the 
Director must report to the Congress on the nature

[[Page 434]]

and extent of continuing emergency assistance requirements and shall 
propose additional legislation if necessary.

Secs. 206.68-206.100  [Reserved]

       Subpart D--Federal Assistance to Individuals and Households

Sec. 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 Presidentially-declared 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 Director.
    (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 property insurance, and 
utility costs, where appropriate.
    (8) Occupant means an eligible applicant residing in temporary 
housing provided under this section.

[[Page 435]]

    (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 assistance 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 
Director 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 Director 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 Director shall prepare additional guidelines when necessary to 
respond to a particular disaster;
    (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

[[Page 436]]

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 Director, 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 Director; 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 Sec. 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 Director. 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. Government-owned or privately owned mobile homes, travel 
trailers, and other manufactured housing units may be placed on 
commercial, private, or

[[Page 437]]

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 Associate Director has determined that leasing 
commercial sites at Federal expense is in the public interest. When the 
Regional Director 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 Associate Director 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 Associate Director may authorize development of group 
sites, including installation of essential utilities, by the Federal 
Government, based on a recommendation from the Regional Director; 
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 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 Director, 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:
    (A) Cash payment. Payment shall be limited to the reasonable costs 
for the repairs and replacements in the locality, as determined by the 
Regional Director. 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.

[[Page 438]]

    (B) Provision of materials and replacement items.
    (C) Government awarded repair contracts when authorized by the 
Associate Director.
    (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 Director 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 Associate Director. The Regional Director 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 Director 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
    (N) Elimination of other health and safety hazards or performance of 
essential repairs which are authorized by the Regional Director 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

[[Page 439]]

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 Director, the Federal 
Government may pay security deposits; 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 Director 
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 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

[[Page 440]]

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 Director 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 Director 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 Director 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 Director 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 Director 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.
    (E) Hearing--(1) Hearing officer. The hearing shall be conducted by 
a Hearing Officer, who shall be designated by the Regional Director, 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

[[Page 441]]

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 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 Director 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 
Associate Director 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 Associate Director 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 Director 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 Sec. 9.13(e)); and
    (C) The purchaser has sufficient funds to purchase and, if 
necessary, relocate the unit. The Associate Director 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 
Associate Director. The purchaser shall pay the total sales price at the 
time of sale.
    (iii) Adjustment to the sales price.

[[Page 442]]

    (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-by-case basis by the Associate Director.
    (C) The Regional Director 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 Director 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 Associate Director 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 a condition of 
such transfers, the Associate Director 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 
Secs. 9.13 and 9.14), Floodplain Management and Protection of Wetlands; 
44 CFR part 10, Environmental Considerations. The Associate Director 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 Associate Director, Regional Director, or Federal 
Coordinating Officer may require from field operations such reports, 
plans, and evaluations as they deem necessary to

[[Page 443]]

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 Associate 
Director, based on a determination that an extension is necessary and in 
the public interest. The Regional Director 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:
    (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 Director from the 
Governor or his/her authorized representative. The Associate Director 
shall approve such a request based on the Regional Director'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:
    (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.

[[Page 444]]

    (ii) The Governor or his/her designee may request the Regional 
Director to provide technical assistance in the preparation of an 
administrative plan.
    (iii) The Governor or designee shall submit the plan to the Regional 
Director for approval. Plans shall be revised, as necessary, and shall 
be reviewed at least annually by the Regional Director.
    (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 Director 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 
processing of applications; assuring timely delivery of assistance; 
identification of potential problem areas; and any deviations from the 
approved plan. The Regional Director 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 Associate Director based on an evaluation of 
the capabilities and commitment of the entity by the Regional Director. 
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 Director 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 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 Associate Director. All contracts 
require the review and approval of the Regional Director prior to award, 
in order to be considered as an authorized expenditure.
    (6) Federal monitoring and oversight. The Regional Director 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 Director 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 Director shall make 
available

[[Page 445]]

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 government-owned 
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.

(Approved by the Office of Management and Budget under OMB control 
numbers 3067-0009 and 3067-0043)

[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]

Secs. 206.102-206.109  [Reserved]

Sec. 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 assistance 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 Associate Director (AD) 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 be counted as income or a resource in the determination of 
eligibility for welfare, income assistance or income-tested 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;

[[Page 446]]

    (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 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 
Sec. 206.112) to accept registrations and to process assistance 
applications in that community.

[[Page 447]]

    (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 flood-damaged 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.
    (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 
Secs. 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]

Sec. 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.
    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.

[[Page 448]]

    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 Director.
    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 part-time 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.
    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,

[[Page 449]]

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]

Sec. 206.112  Registration period.

    (a) Initial period. The standard FEMA registration period is 60 days 
following the date that the President declares an incident a major 
disaster or an emergency.
    (b) Extension of the registration period. The regional director or 
his/her designee may extend the registration period when the State 
requests more time to collect registrations from the affected 
population. The Regional Director 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]

Sec. 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 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

[[Page 450]]

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]

Sec. 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 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 pre-disaster 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

[[Page 451]]

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]

Sec. 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;
    (5) The denial of continued assistance under Sec. 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 Director 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 Sec. 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 Director 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]

Sec. 206.116  Recovery of funds.

    (a) The applicant must agree to repay to FEMA (when funds are 
provided by FEMA) and/or the State (when funds are provided by the 
State) from insurance proceeds or recoveries from any other source an 
amount equivalent to the value of the assistance provided. In no event 
must the amount repaid to FEMA and/or the State exceed the amount that 
the applicant recovers from insurance or any other source.
    (b) An applicant must return funds to FEMA and/or the State (when 
funds are provided by the State) when FEMA and/or the State determines 
that the assistance was provided erroneously,

[[Page 452]]

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]

Sec. 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 Director 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 Director 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 Director 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:
    (1) A commercial site that is complete with utilities; when the 
Regional Director 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 Director 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.

[[Page 453]]

    (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 Director 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 Director 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 Sec. 206.110(e) and has 
not been extended;
    (2) Adequate alternate housing is available to the occupant(s);
    (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 Director 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.
    (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

[[Page 454]]

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 Associate Director. The Associate Director 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 restoration 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]

Sec. 206.118  Disposal of housing units.

    (a) FEMA may sell housing units purchased under 
Sec. 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 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

[[Page 455]]

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]

Sec. 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:
    (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
    (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.

[[Page 456]]

    (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]

Sec. 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 Sec. 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 
Sec. 206.119 and the State Administrative Option and the State 
Administrative Plan that we describe at paragraph (b) and (c) of this 
section.
    (b) State administrative options. The delivery of assistance under 
Sec. 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 non-disaster periods the State 
may submit any proposed amendments to the administrative option in 
writing to the FEMA Regional Director. 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

[[Page 457]]

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 Director 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 
Director 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 
amendments to the SAP in writing to the FEMA Regional Director. 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 Sec. 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 property items with 
allowable costs identified for each item.
    (v) Procedures for checking compliance for mandated flood insurance 
in accordance with Sec. 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 
Sec. 206.115(a);
    (ix) Procedures for expeditious reporting of allegations of fraud, 
waste or abuse to FEMA Office of Inspector General.
    (x) Capacity to investigate allegations of waste, fraud and abuse 
independently if requested by FEMA OIG, or in conjunction with FEMA OIG.
    (xi) Provisions for safeguarding the privacy of applicants and the 
confidentiality of information, in accordance with Sec. 206.110(j).

[[Page 458]]

    (xii) Provisions for complying with Sec. 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 Director 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 FEMA Associate Director. 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.
    (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

[[Page 459]]

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 interest, penalties, and administrative fees on delinquent bills 
for collection in accordance with the Debt Collection Improvement Act. 
Recovered funds, interest, penalties, and fees owed to FEMA through 
delinquent bills for collection may be offset from other FEMA disaster 
assistance programs from which the State is receiving funds or future 
grant awards from FEMA or other Federal agencies. Debt collection 
procedures will be followed as outlined in 44 CFR part 11.
    (6) Audit requirements. 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]

Secs. 206.121-206.130  [Reserved]

             Subpart E--Individual and Family Grant Programs

Sec. 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 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

[[Page 460]]

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 in-kind 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 
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

[[Page 461]]

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 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 Director 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 Director for the purpose of accepting and 
processing grant applications in that community. The Regional Director 
or Associate Director, 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 
Sec. 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 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 
Sec. 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 Sec. 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

[[Page 462]]

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 Director 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 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

[[Page 463]]

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 required 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 Director and request 
guidance. The Associate Director also may determine that other necessary 
expenses and serious needs are eligible for grant assistance. Following 
such a determination, the Associate Director shall advise the State, 
through the Regional Director, 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 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 Director 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.

[[Page 464]]

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 Director;
    (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, 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 Director, 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,

[[Page 465]]

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 General Accounting Office for the purpose of 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 
Director 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 Director. The Regional Director shall 
review and approve the plan annually. In each disaster for which 
assistance under this section is requested, the Regional Director shall 
request the State to prepare any amendments required to meet current 
policy guidance. The Regional Director 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 Director, 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;
    (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 Associate Director; and
    (6) To maintain close coordination with and provide reports to the 
Regional Director.
    (g) Funding. (1) The Regional Director 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 Director may then obligate funds for the 
Federal share for the current disaster.

[[Page 466]]

    (2) The Regional Director 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 Director. Advances to the State are 
governed by 44 CFR 13.21, Payment.
    (3) The Regional Director 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 Director 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 14, Administration of 
Grants; Audits of State and Local Governments, which implements OMB 
Circular A-128 regarding audits. 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), 
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 270-day 
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 
Director 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 Director 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 Director may approve 
the request for a period not to exceed 90 days. The Associate Director 
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

[[Page 467]]

issuance of a BFC by the Regional Director. 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 
Director 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 Director. Such appeals shall be made in writing within 60 days 
of the Regional Director's decision. The appeal must include information 
justifying a reversal of the decision. The Regional Director 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 Associate Director. The State may further appeal 
the Regional Director's decisions to the Associate Director. This appeal 
shall be made in writing within 60 days of the Regional Director's 
decision. The appeal must include information justifying a reversal of 
the decision. The Associate Director 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 Director 
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]

Secs. 206.132-206.140  [Reserved]

                 Subpart F--Other Individual Assistance

Sec. 206.141  Disaster unemployment assistance.

    The authority to implement the disaster unemployment assistance 
(DUA) program authorized by section 410 of the Stafford Act, and the 
authority to issue regulations, are currently delegated to the Secretary 
of Labor.

Secs. 206.142-206.150  [Reserved]

Sec. 206.151  Food commodities.

    (a) The Associate Director 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 Associate Director may direct the Secretary of Agriculture 
to purchase food commodities in accordance with authorities prescribed 
in section 413(b) of the Stafford Act.

Secs. 206.152-206.160  [Reserved]

Sec. 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.

Secs. 206.162-206.163  [Reserved]

Sec. 206.164  Disaster legal services.

    (a) Legal services, including legal advice, counseling, and 
representation in

[[Page 468]]

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 Director or his/her representative shall make a determination.
    (b) Disaster legal services shall be provided free to such 
individuals. Fee-generating cases shall not be accepted by lawyers 
operating under these regulations. For purposes of this section, a fee-
generating case is one which would not ordinarily be rejected by local 
lawyers as a result of its lack of potential remunerative value. Where 
any question arises as to whether a case is fee-generating as defined in 
this section, the Regional Director 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 Director 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 Director 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 Director has determined that there 
is no other means of obtaining adequate legal assistance for qualified 
disaster victims; or
    (4) Any other arrangement the Regional Director deems appropriate.
    The Associate Director shall coordinate with appropriate Federal 
agencies and the appropriate national, state and local bar associations, 
as necessary, in the implementation of the disaster legal services 
programs.
    (d) In the event it is necessary for FEMA to pay lawyers for the 
provision of legal services under these regulations, the Regional 
Director, 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 
Director. At the Regional Director'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.

Secs. 206.165-206.170  [Reserved]

Sec. 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 Associate Director means the head of 
the Office of Disaster Assistance Programs, FEMA; the official who 
approves or disapproves a request for assistance under section 416 of 
the Act, and is the final appeal authority.

[[Page 469]]

    (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 resulting from a major disaster or its aftermath.
    (4) Federal Coordinating Officer (FCO) means the person appointed by 
the Associate Director 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 Director 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 Director means the director of a regional office of 
FEMA, or the Disaster Recovery Manager, as the delegate of the Regional 
Director.
    (10) Secretary means the Secretary of DHHS or his/her delegate.
    (11) State Coordinating Officer (SCO) means the person appointed by 
the 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 Director and Assistant Associate Director, 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 
Associate Director.
    (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

[[Page 470]]

request the Regional Director 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 Director, 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 Director 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 Director;
    (iii) To maintain close coordination with and provide reports to the 
Regional Director; 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 
Director:
    (i) A mid-program report only when a regular program grant 
application is being prepared and submitted. This report will be 
included as part of the regular program grant application;
    (ii) A final program report, a financial status report, and a final 
voucher 90 days after the last day of immediate services funding.
    (4) Immediate services program funding:
    (i) Shall not exceed 60 days following the declaration of the major 
disaster, except when a regular program grant application has been 
submitted;
    (ii) May continue for up to 30 additional days when a regular 
program grant application has been submitted;
    (iii) May be extended by the Regional Director, 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 Director'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.

[[Page 471]]

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 Director's decision 
to the Assistant Associate Director. This appeal shall be made in 
writing within 60 days of the date of the Regional Director's 
notification of the decision on the immediate services application. The 
appeal must include information justifying a reversal of the decision. 
The Assistant Associate Director, or other impartial person, shall 
review the material submitted, and after consultation with the Secretary 
and Regional Director, 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 Associate 
Director through the Regional Director, 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 
Associate Director;
    (iii) To maintain close coordination with and provide reports to the 
Regional Director, the Assistant Associate Director, and the Secretary; 
and
    (iv) To include mental health disaster planning in the State's 
emergency plan prepared under title II of the Stafford Act.
    (2) The application must include:
    (i) Standard Form 424, Application for Federal Assistance;
    (ii) The geographical areas within the designated disaster area for 
which services will be supplied;
    (iii) An estimate of the number of disaster victims requiring 
assistance. This documentation of need should include the extent of 
physical, psychological, and social problems observed, the types of 
mental health problems encountered by victims, and a description of how 
the estimate was made;
    (iv) A description of the State and local resources and 
capabilities, and an explanation of why these resources cannot meet the 
need;
    (v) A plan of services which must include at a minimum:
    (A) The manner in which the program will address the needs of the 
affected population, including the types of services to be offered, an 
estimate of the length of time for which mental health services will be 
required, and the manner in which long-term cases will be handled;
    (B) A description of the organizational structure of the program, 
including designation by the Governor of an individual to serve as 
administrator of the program. If more than one agency will be delivering 
services, the plan to coordinate services must also be described;
    (C) A description of the training program for project staff, 
indicating the number of workers needing such training;
    (D) A description of the facilities to be utilized, including plans 
for securing office space if necessary to the project; and
    (E) A detailed budget, including identification of the resources the 
State and local governments will commit to the project, proposed funding 
levels for the different agencies if more than one is involved, and an 
estimate of the required Federal contribution.
    (3) Reporting requirements. The State shall submit the following 
reports to the Regional Director, the Secretary, and the State 
Coordinating Officer:
    (i) Quarterly progress reports, as required by the Regional Director 
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

[[Page 472]]

    (iv) Such additional reports as the Regional Director, 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 
Director and the Secretary, the Assistant Associate Director may 
authorize up to 90 days of additional program period because of 
documented extenuating circumstances;
    (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 Associate Director'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 Associate Director, or other impartial 
person, in consultation with the Secretary and Regional Director, 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
    (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 Director 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 Director's and Secretary's recommendations and 
documentation to the Assistant Associate Director;
    (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 Director in reviewing a State's application, to a State during 
program implementation and development, and to mental health agencies, 
as appropriate;
    (ii) At the request of the Regional Director, 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;

[[Page 473]]

    (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 
Director, and the Assistant Associate Director;
    (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 Director and Assistant Associate Director 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 Director, FCO, or Assistant 
Associate Director;
    (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 Associate Director, 
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 Associate Director shall:
    (i) Approve or disapprove a State's request for assistance based on 
recommendations of the Regional Director 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 Director; 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 Associate Director, the Regional Director, the FEMA 
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.

[[Page 474]]

Secs. 206.172-206.180  [Reserved]

Sec. 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 disaster-related 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 
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 Associate Director, Office 
of Disaster Assistance Programs, FEMA. 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 Associate 
Director determines that a larger amount is in the best interest of the 
disaster victim and the Federal Government. Funds to provide service 
which benefit a group may be awarded in an amount determined by the 
Assistant Associate Director, based on the Regional Director'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.

[[Page 475]]

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 Associate Director 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 Associate Director, 
Office of Disaster Assistance Programs, shall be responsible for 
awarding funds and authorizing disbursement.
    (2) The Comptroller of FEMA shall be responsible for fund 
accountability and, in coordination with the Assistant Associate 
Director, for liaison with the Department of the Treasury concerning the 
investment of excess money in the fund pursuant to the provisions 
contained in section 601 of the Act.
    (3) Each FEMA Regional Director may submit requests to the Assistant 
Associate Director 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 
Associate Director shall review the facts and make a determination. If 
the award amount is below $2,000, the Assistant Associate Director may 
appoint a designee to have approval authority; approval authority of 
$2,000 or above shall be retained by the Assistant Associate Director. 
The Assistant Associate Director shall notify the Comptroller of a 
decision for approval, and the Comptroller shall order a check to be 
sent to the disaster victim (or jointly to the disaster victim and an 
assistance organization), through the Regional Director. The Assistant 
Associate Director shall also notify the Regional Director of the 
decision, whether for approval or disapproval. The Regional Director 
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 Director shall submit his/her recommendation and 
supporting documentation to the Assistant Associate Director (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 Associate 
Director shall request the Comptroller to send a check to the intended 
recipient or provider, as appropriate. The Assistant Associate Director 
shall notify the Regional Director of the decision. The Regional 
Director shall notify a representative of the group in writing.
    (5) The Comptroller shall process requests for checks, shall keep 
records of disbursements and balances in the account, and shall provide 
the Assistant Associate Director with quarterly reports.
    (e) Audits. The Inspector General of FEMA shall 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 Associate Director, State and Local 
Programs and Support, for information, comments and appropriate action. 
A copy shall be provided to the Comptroller for the same purpose.

Secs. 206.182-206.190  [Reserved]

Sec. 206.191  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

[[Page 476]]

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 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 duplication. The delivery 
sequence pertains to that period of time in the recovery phase when most 
of the traditional disaster assistance programs are available.
    (2) The delivery sequence is, in order of delivery:
    (i) Volunteer agencies' emergency assistance (except expendable 
items such as clothes, linens, and basic kitchenware); insurance 
(including flood insurance);
    (ii) Housing assistance pursuant to 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

[[Page 477]]

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:
    (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 Director, 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 Director 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 Director 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 Director 
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 Director 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 Director will 
take no further action. If the agency was not successful in correcting 
the duplication, and the Regional Director 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 Director is not satisfied that the 
procedures were followed in an acceptable manner, then the Regional 
Director 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 Director 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

[[Page 478]]

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

[54 FR 11615, Mar. 21, 1989, as amended at 67 FR 61460, Sept. 30, 2002]

Secs. 206.192-206.199  [Reserved]

           Subpart G--Public Assistance Project Administration

    Source: 55 FR 2304, Jan. 23, 1990, unless otherwise noted.

Sec. 206.200  General.

    (a) Purpose. This subpart establishes procedures for the 
administration of Public Assistance grants approved under the provisions 
of the Stafford Act.
    (b) What policies apply to FEMA public assistance grants? (1) The 
Stafford Act requires that we deliver eligible assistance as quickly and 
efficiently as possible consistent with Federal laws and regulations. We 
expect the Grantee and the subgrantee to adhere to Stafford Act 
requirements and to these regulations when administering our public 
assistance grants.
    (2) The regulations entitled ``Uniform Requirements for Grants and 
Cooperative Agreements to State and Local Governments,'' published at 44 
CFR part 13, place requirements on the State in its role as Grantee and 
gives the Grantee discretion to administer federal programs under their 
own procedures. We expect the Grantee to:
    (i) Inform subgrantees about the status of their applications, 
including notifications of our approvals of Project Worksheets and our 
estimates of when we will make payments;
    (ii) Pay the full amounts due to subgrantees as soon as practicable 
after we approve payment, including the State contribution required in 
the FEMA-State Agreement; and
    (iii) Pay the State contribution consistent with State laws.

[55 FR 2304, Jan. 23, 1990, as amended at 63 FR 64425, Nov. 20, 1998; 64 
FR 55160, Oct. 12, 1999]

Sec. 206.201  Definitions used in this subpart.

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

[[Page 479]]

its predisaster design and current applicable standards.
    (h) Predisaster design means the size or capacity of a facility as 
originally designed and constructed or subsequently modified by changes 
or additions to the original design. It does not mean the capacity at 
which the facility was being used at the time the major disaster 
occurred if different from the most recent designed capacity.
    (i) A project is a logical grouping of work required as a result of 
the declared major disaster or emergency. The scope of work and cost 
estimate for a project are documented on a Project Worksheet (FEMA Form 
90-91).
    (1) We must approve a scope of eligible work and an itemized cost 
estimate before funding a project.
    (2) A project may include eligible work at several sites.
    (j) Project approval means the process in which the Regional 
Director, or designee, reviews and signs an approval of work and costs 
on a Project Worksheet or on a batch of Project Worksheets. Such 
approval is also an obligation of funds to the Grantee.
    (k) Subgrant means an award of financial assistance under a grant by 
a grantee to an eligible subgrantee.
    (l) Subgrantee means the government or other legal entity to which a 
subgrant is awarded and which is accountable to the grantee for the use 
of the funds provided.

[55 FR 2304, Jan. 23, 1990, as amended at 63 FR 64425, Nov. 20, 1998; 64 
FR 55160, Oct. 12, 1999]

Sec. 206.202  Application procedures.

    (a) General. This section describes the policies and procedures that 
we use to process public assistance grants to States. Under this section 
the State is the Grantee. As Grantee you are responsible for processing 
subgrants to applicants under 44 CFR parts 13, 14, and 206, and your own 
policies and procedures.
    (b) Grantee. You are the grant administrator for all funds provided 
under the Public Assistance grant program. Your responsibilities under 
this section include:
    (1) Providing technical advice and assistance to eligible 
subgrantees;
    (2) Providing State support for project identification activities to 
include small and large project formulation and the validation of small 
projects;
    (3) Ensuring that all potential applicants are aware of available 
public assistance; and
    (4) Submitting documents necessary for the award of grants.
    (c) Request for Public Assistance (Request). The Grantee must send a 
completed Request (FEMA Form 90-49) to the Regional Director for each 
applicant who requests public assistance. You must send Requests to the 
Regional Director within 30 days after designation of the area where the 
damage occurred.
    (d) Project Worksheets. (1) An applicant's authorized local 
representative is responsible for representing the applicant and for 
ensuring that the applicant has identified all eligible work and 
submitted all costs for disaster-related damages for funding.
    (i) We or the applicant, assisted by the State as appropriate, will 
prepare a Project Worksheet (FEMA Form 90-91) for each project. The 
Project Worksheet must identify the eligible scope of work and must 
include a quantitative estimate for the eligible work.
    (ii) The applicant will have 60 days following its first substantive 
meeting with us to identify and to report damage to us.
    (2) When the estimated cost of work on a project is less than 
$1,000, that work is not eligible and we will not approve a Project 
Worksheet for the project. Periodically we will review this minimum 
approval amount for a Project Worksheet and, if needed, will adjust the 
amount by regulation.
    (e) Grant approval. (1) Before we obligate any funds to the State, 
the Grantee must complete and send to the Regional Director a Standard 
Form (SF) 424, Application for Federal Assistance, and a SF 424D, 
Assurances for Construction Programs. After we receive the SF 424 and SF 
424D, the Regional Director will obligate funds to the Grantee based on 
the approved Project Worksheets. The Grantee will then approve subgrants 
based on the Project Worksheets approved for each applicant.

[[Page 480]]

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

[64 FR 55160, Oct. 12, 1999]

Sec. 206.203  Federal grant assistance.

    (a) General. This section describes the types and extent of Federal 
funding available under State disaster assistance grants, as well as 
limitations and special procedures applicable to each.
    (b) Cost sharing. All projects approved under State disaster 
assistance grants will be subject to the cost sharing provisions 
established in the FEMA-State Agreement and the Stafford Act.
    (c) Project funding--(1) Large projects. When the approved estimate 
of eligible costs for an individual project is $35,000 or greater, 
Federal funding shall equal the Federal share of the actual eligible 
costs documented by a grantee. Such $35,000 amount shall be adjusted 
annually to reflect changes in the Consumer Price Index for All Urban 
Consumers published by the Department of Labor.
    (2) Small projects. When the approved estimate of costs for an 
individual project is less than $35,000, Federal funding shall equal the 
Federal share of the approved estimate of eligible costs. Such $35,000 
amount shall be adjusted annually as indicated in paragraph (c)(1) of 
this section.
    (d) Funding options--(1) Improved projects. If a subgrantee desires 
to make improvements, but still restore the predisaster function of a 
damaged facility, the Grantee's approval must be obtained. Federal 
funding for such improved projects shall be limited to the Federal share 
of the approved estimate of eligible costs.
    (2) Alternate projects. In any case where a subgrantee determines 
that the public welfare would not be best served by restoring a damaged 
public facility or the function of that facility, the Grantee may 
request that the RD approve an alternate project.
    (i) The alternate project option may be taken only on permanent 
restorative work.
    (ii) Federal funding for such alternate projects will be 75 percent 
of the Federal share of the approved Federal estimate of eligible costs.
    (iii) If soil instability at the alternate project site makes the 
repair, restoration or replacement of a State or local government-owned 
or -controlled facility infeasible, the Federal funding for such an 
alternate project will be 90 percent of the Federal share of the 
approved Federal estimate of eligible costs.
    (iv) Funds contributed for alternate projects may be used to repair 
or expand other selected public facilities, to construct new facilities, 
or to fund hazard mitigation measures. These funds may not be used to 
pay the nonFederal share of any project, nor for any operating expense.
    (v) Prior to the start of construction of any alternate project the 
Grantee shall submit for approval by the RD the following: a description 
of the proposed alternate project(s); a schedule of work; and the 
projected cost of the project(s). The Grantee shall also provide the 
necessary assurances to document compliance with special requirements, 
including, but not limited to floodplain management, environmental 
assessment, hazard mitigation, protection of wetlands, and insurance.

[55 FR 2304, Jan. 23, 1990, as amended at 66 FR 22444, May 4, 2001]

Sec. 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.

[[Page 481]]

    (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..............................................         6
Emergency work................................................         6
Permanent work................................................        18
------------------------------------------------------------------------

    (2) Exceptions. (i) The Grantee may impose lesser deadlines for the 
completion of work under paragraph (c)(1) of this section if considered 
appropriate.
    (ii) Based on extenuating circumstances or unusual project 
requirements beyond the control of the subgrantee, the Grantee may 
extend the deadlines under paragraph (c)(1) of this section for an 
additional 6 months for debris clearance and emergency work and an 
additional 30 months, on a project by project basis for permanent work.
    (d) Requests for time extensions. Requests for time extensions 
beyond the Grantee's authority shall be submitted by the Grantee to the 
RD and shall include the following:
    (1) The dates and provisions of all previous time extensions on the 
project; and
    (2) A detailed justification for the delay and a projected 
completion date. The RD shall review the request and make a 
determination. The Grantee shall be notified of the RD's determination 
in writing. If the RD approves the request, the letter shall reflect the 
approved completion date and any other requirements the RD may determine 
necessary to ensure that the new completion date is met. If the RD 
denies the time extension request, the grantee may, upon completion of 
the project, be reimbursed for eligible project costs incurred only up 
to the latest approved completion date. If the project is not completed, 
no Federal funding will be provided for that project.
    (e) Cost Overruns. (1) During the execution of approved work a 
subgrantee may find that the actual project costs exceed the approved 
Project Worksheet estimates. Such cost overruns normally fall into the 
following three categories:
    (i) Variations in unit prices;
    (ii) Change in the scope of eligible work; or
    (iii) Delays in timely starts or completion of eligible work.
    (2) The subgrantee must evaluate each cost overrun and, when 
justified, submit a request for additional funding through the Grantee 
to the RD for a final determination. All requests for the RD's approval 
will contain sufficient documentation to support the eligibility of all 
claimed work and costs. The Grantee must include a written 
recommendation when forwarding the request. The RD will notify the 
Grantee in writing of the final determination. FEMA will not normally 
review an overrun for an individual small project. The normal procedure 
for small projects will be that when a subgrantee discovers a 
significant overrun related to the total final cost for all small 
projects, the subgrantee may submit an appeal for additional funding in 
accordance with Sec. 206.206, within 60 days following the completion of 
all its small projects.
    (f) Progress reports. Progress reports will be submitted by the 
Grantee to the RD quarterly. The RD and Grantee shall negotiate the date 
for submission of the first report. Such reports will describe the 
status of those projects on which a final payment of the Federal share 
has not been made to the grantee and outline any problems or 
circumstances expected to result in noncompliance with the approved 
grant conditions.

[55 FR 2304, Jan. 23, 1990; 55 FR 5458, Feb. 15, 1990, as amended at 64 
FR 55161, Oct. 12, 1999]

Sec. 206.205  Payment of claims.

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

[[Page 482]]

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

[55 FR 2304, Jan. 23, 1990, as amended at 64 FR 55161, Oct. 12, 1999]

Sec. 206.206  Appeals.

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

[[Page 483]]

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

[63 FR 17110, Apr. 8, 1998; 63 FR 24970, May 6, 1998]

Sec. 206.207  Administrative and audit requirements.

    (a) General. Uniform administrative requirements which are set forth 
in 44 CFR part 13 apply to all disaster assistance grants and subgrants.
    (b) State administrative plan. (1) The State shall develop a plan 
for the administration of the Public Assistance program that includes at 
a minimum, the items listed below:
    (i) The designation of the State agency or agencies which will have 
the responsibility for program administration.
    (ii) The identification of staffing functions in the Public 
Assistance program, the sources of staff to fill these functions, and 
the management and oversight responsibilities of each.
    (iii) Procedures for:
    (A) Notifying potential applicants of the availability of the 
program;
    (B) Conducting briefings for potential applicants and application 
procedures, program eligibility guidance and program deadlines;
    (C) Assisting FEMA in determining applicant eligibility;
    (D) Participating with FEMA in conducting damage surveys to serve as 
a basis for obligations of funds to subgrantees;
    (E) Participating with FEMA in the establishment of hazard 
mitigation and insurance requirements;
    (F) Processing appeal requests, requests for time extensions and 
requests for approval of overruns, and for processing appeals of grantee 
decisions;
    (G) Compliance with the administrative requirements of 44 CFR parts 
13 and 206;
    (H) Compliance with the audit requirements of 44 CFR part 14;
    (I) Processing requests for advances of funds and reimbursement; and
    (J) Determining staffing and budgeting requirements necessary for 
proper program management.
    (2) The Grantee may request the RD to provide technical assistance 
in the preparation of such administrative plan.
    (3) In accordance with the Interim Rule published March 21, 1989, 
the Grantee was to have submitted an administrative plan to the RD for 
approval by September 18, 1989. An approved plan must be on file with 
FEMA before grants will be approved in a future major disaster. 
Thereafter, the Grantee shall submit a revised plan to the RD annually. 
In each disaster for which Public Assistance is included, the RD shall 
request the Grantee to prepare any amendments required to meet current 
policy guidance.
    (4) The Grantee shall ensure that the approved administrative plan 
is incorporated into the State emergency plan.
    (c) Audit--(1) Nonfederal audit. For grantees or subgrantees, 
requirements for nonfederal audit are contained in FEMA regulations at 
44 CFR part 14 or OMB Circular A-110 as appropriate.
    (2) Federal audit. In accordance with 44 CFR part 14, appendix A, 
para. 10, FEMA may elect to conduct a Federal audit of the disaster 
assistance grant or any of the subgrants.

[55 FR 2304, Jan. 23, 1990; 55 FR 5458, Feb. 15, 1990]

[[Page 484]]

Sec. 206.208  Direct Federal assistance.

    (a) General. When the State and local government lack the capability 
to perform or to contract for eligible emergency work and/or debris 
removal, under sections 402(4), 403 or 407 of the Act, the Grantee may 
request that the work be accomplished by a Federal agency. Such 
assistance is subject to the cost sharing provisions outlined in 
Sec. 206.203(b) of this subpart. Direct Federal assistance is also 
subject to the eligibility criteria contained in Subpart H of these 
regulations. FEMA will reimburse other Federal agencies in accordance 
with Subpart A of these regulations.
    (b) Requests for assistance. All requests for direct Federal 
assistance shall be submitted by the Grantee to the RD and shall 
include:
    (1) A written agreement that the State will:
    (i) Provide without cost to the United States all lands, easements 
and rights-of-ways necessary to accomplish the approved work;
    (ii) Hold and save the United States free from damages due to the 
requested work, and shall indemnify the Federal Government against any 
claims arising from such work;
    (iii) Provide reimbursement to FEMA for the nonFederal share of the 
cost of such work in accordance with the provisions of the FEMA-State 
Agreement; and
    (iv) Assist the performing Federal agency in all support and local 
jurisdictional matters.
    (2) A statement as to the reasons the State and the local government 
cannot perform or contract for performance of the requested work.
    (3) A written agreement from an eligible applicant that such 
applicant will be responsible for the items in subparagraph (b)(1) (i) 
and (ii) of this section, in the event that a State is legally unable to 
provide the written agreement.
    (c) Implementation. (1) If the RD approves the request, a mission 
assignment will be issued to the appropriate Federal agency. The mission 
assignment letter to the agency will define the scope of eligible work, 
the estimated cost of the eligible work and the billing period 
frequency. The Federal agency must not exceed the approved funding limit 
without the authorization of the RD.
    (2) If all or any part of the requested work falls within the 
statutory authority of another Federal agency, the RD shall not approve 
that portion of the work. In such case, the unapproved portion of the 
request will be referred to the appropriate agency for action.
    (d) Time limitation. The time limitation for completion of work by a 
Federal agency under a mission assignment is 60 days after the 
President's declaration. Based on extenuating circumstances or unusual 
project requirements, the RD may extend this time limitation.
    (e) Project management. (1) The performing Federal agency shall 
ensure that the work is completed in accordance with the RD's approved 
scope of work, costs and time limitations. The performing Federal agency 
shall also keep the RD and Grantee advised of work progress and other 
project developments. It is the responsibility of the performing Federal 
agency to ensure compliance with applicable Federal, State and local 
legal requirements. A final inspection report will be completed upon 
termination of all direct Federal assistance work. Final inspection 
reports shall be signed by a representative of the performing Federal 
agency and the State. Once the final eligible cost is determined 
(including Federal agency overhead), the State will be billed for the 
nonFederal share of the mission assignment in accordance with the cost 
sharing provisions of the FEMA-State Agreement.
    (2) Pursuant to the agreements provided in the request for 
assistance the Grantee shall assist the performing Federal agency in all 
State and local jurisdictional matters. These matters include securing 
local building permits and rights of entry, control of traffic and 
pedestrians, and compliance with local building ordinances.

[55 FR 2304, Jan. 23, 1990, as amended at 64 FR 55161, Oct. 12, 1999]

[[Page 485]]

Secs. 206.209-206.219  [Reserved]

                Subpart H--Public Assistance Eligibility

    Source: 55 FR 2307, Jan. 23, 1990, unless otherwise noted.

Sec. 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, 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]

Sec. 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 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.

[[Page 486]]

    (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]

Sec. 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 Sec. 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.

Sec. 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 major disaster event,
    (2) Be located within a designated disaster 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 
Sec. 206.221(f)].
    (c) Public entities. Facilities belonging to a public entity may be 
eligible for 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 Sec. 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.

Sec. 206.224  Debris removal.

    (a) Public interest. Upon determination that debris removal is in 
the public interest, the Regional Director 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

[[Page 487]]

    (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 Associate Director for Readiness, Response 
and Recovery extends this period.
    (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]

Sec. 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 
Director 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 
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.

Sec. 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

[[Page 488]]

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 applications from local educational agencies for 
assistance under the Stafford Act.
    (3) The exception does not cover payment of increased current 
operating expenses or replacement of lost revenues as provided in 20 
U.S.C. 241-1(a) and implemented by 34 CFR 219.14. Such assistance shall 
continue to be granted and administered by the Department of Education.
    (b) Mitigation planning. In order to receive assistance under this 
section, as of November 1, 2003, the State must have in place a FEMA 
approved State Mitigation Plan 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 Sec. 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 Sec. 206.226(b)(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.
    (ii) This paragraph (b) 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 Director 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.

[[Page 489]]

    (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 Director may approve funding for 
and require restoration of a destroyed facility at a new location when:
    (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 Director, 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 Director, 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 Director, and, 
instead of relocation, the applicant requests approval of an alternate 
project [see Sec. 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 Director 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) 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]

Sec. 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]

Sec. 206.228  Allowable costs.

    General policies for determining allowable costs are established in 
44 CFR

[[Page 490]]

13.22. Exceptions to those policies as allowed in 44 CFR 13.4 and 13.6 
are explained below.
    (a) Eligible direct costs--(1) Applicant-owned 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 applicant-owned 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) Statutory Administrative Costs--(i) Grantee. Under section 
406(f)(2) of the Stafford Act, we will pay you, the State, an allowance 
to cover the extraordinary costs that you incur to formulate Project 
Worksheets for small and large projects, to validate small projects, to 
prepare final inspection reports, project applications, final audits, 
and to make related field inspections by State employees. Eligible costs 
include overtime pay and per diem and travel expenses, but do not 
include regular time for your State employees. The allowance to the 
State will be based on the following percentages of the total amount of 
Federal assistance that we provide for all subgrantees in the State 
under sections 403, 406, 407, 502, and 503 of the Act:
    (A) For the first $100,000 of total assistance provided (Federal 
share), three percent of such assistance.
    (B) For the next $900,000, two percent of such assistance.
    (C) For the next $4,000,000, one percent of such assistance.
    (D) For assistance over $5,000,000, one-half percent of such 
assistance.
    (ii) Subgrantee. Pursuant to section 406(f)(1) of the Stafford Act, 
necessary costs of requesting, obtaining, and administering Federal 
disaster assistance subgrants will be covered by an allowance which is 
based on the following percentages of net eligible costs under sections 
403, 406, 407, 502, and 503 of the Act, for an individual applicant 
(applicants in this context include State agencies):
    (A) For the first $100,000 of net eligible costs, three percent of 
such costs;
    (B) For the next $900,000, two percent of such costs;
    (C) For the next $4,000,000, one percent of such costs;
    (D) For those costs over $5,000,000, one-half percent of such costs.
    (3) State Management Administrative Costs.
    (i) Grantee. Except for the items listed in paragraph (a)(2)(i) of 
this section, other administrative costs shall be paid in accordance 
with 44 CFR 13.22.
    (ii) Subgrantee. No other administrative costs of a subgrantee are 
eligible because the percentage allowance in paragraph (a)(2)(ii) of 
this section covers necessary costs of requesting, obtaining and 
administering Federal assistance.
    (4) 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 
Act, 42 U.S.C. 5172, straight-time salaries and benefits of a 
subgrantee's permanently employed personnel are eligible.

[[Page 491]]

    (b) Eligible indirect costs--(1) Grantee. Indirect costs of 
administering the disaster program are eligible in accordance with the 
provisions of 44 CFR part 13 and OMB Circular A-87.
    (2) Subgrantee. No indirect costs of a subgrantee are separately 
eligible because the percentage allowance in paragraph (a)(2)(ii) of 
this section covers necessary costs of requesting, obtaining and 
administering Federal assistance.

[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]

Secs. 206.229-206.249  [Reserved]

           Subpart I--Public Assistance Insurance Requirements

    Source: 56 FR 64560, Dec. 11, 1991, unless otherwise noted.

Sec. 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 Sec. 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.

Sec. 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 permanent 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.

Sec. 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 
Director, 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

[[Page 492]]

proceeds which would have been received had the building and its 
contents been fully covered by a standard flood insurance policy.
    (b) The reduction stated above shall not apply to a PNP facility 
which could not be insured because it was located in a community not 
participating in the NFIP. However, the provisions of the Flood Disaster 
Protection Act of 1973 prohibit approval of assistance for the PNP 
unless the community agrees to participate in the NFIP within six months 
after the major disaster declaration date, and the required flood 
insurance is purchased.
    (c) Prior to approval of a Federal grant for the restoration of a 
facility and its contents which were damaged by a flood, the Grantee 
shall notify the Regional Director of any entitlement to an insurance 
settlement or recovery. The Regional Director 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 Director 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.

Sec. 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 Director of any entitlement 
to insurance settlement or recovery for such facility and its contents. 
The Regional Director 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 Director 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 Director 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 Director 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 Director 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

[[Page 493]]

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.

Secs. 206.254-206.339  [Reserved]

                Subpart J--Coastal Barrier Resources Act

    Source: 55 FR 2311, Jan. 23, 1990, unless otherwise noted.

Sec. 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.

Sec. 206.341  Policy.

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

Sec. 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 action. 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 Sec. 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.

[[Page 494]]

    (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.
    (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.

Sec. 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.

Sec. 206.344  Limitations on Federal expenditures.

    Except as provided in Secs. 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

[[Page 495]]

threatens life, land, and property immediately adjacent to that unit.

Sec. 206.345  Exceptions.

    The following types of disaster assistance actions are exceptions to 
the prohibitions of Sec. 206.344.
    (a) After consultation with the Secretary of the Interior, the FEMA 
Regional Director 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 FEMA 
Regional Director 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 Sec. 206.347(c)(5);
    (3) Repair of air and water navigation aids and devices, and of the 
access thereto;
    (4) Repair of facilities for scientific research, including but not 
limited to aeronautical, atmospheric, space, geologic, marine, fish and 
wildlife and other research, development, and applications;
    (5) Repair of facilities for the study, management, protection and 
enhancement of fish and wildlife resources and habitats, including but 
not limited to, acquisition of fish and wildlife habitats and related 
lands, stabilization projects for fish and wildlife habitats, and 
recreational projects; and
    (6) Repair of nonstructural proejcts for shoreline stabilization 
that are designed to mimic, enhance, or restore natural stabilization 
systems.

Sec. 206.346  Applicability to disaster assistance.

    (a) Emergency assistance. The Regional Director 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 Director may approve assistance for the repair, 
reconstruction, or replacement but not the

[[Page 496]]

expansion of the following publicly owned or operated facilities and 
certain private nonprofit facilities.
    (1) Roads and bridges;
    (2) Drainage structures, dams, levees;
    (3) Buildings and equipment;
    (4) Utilities (gas, electricity, water, etc.); and
    (5) Park and recreational facilities.

Sec. 206.347  Requirements.

    (a) Location determination. For each disaster assistance action 
which is proposed on the Atlantic or Gulf Coasts, the Regional Director 
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 Secs. 206.348 and 206.349.
    (b) Emergency disaster assistance. For each emergency disaster 
assistance action listed in Sec. 206.346(a), the Regional Director 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 Sec. 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 Director 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 Associate Director, 
SLPS, or his or her designee 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 
Sec. 206.346(b), the Regional Director 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 Sec. 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 Sec. 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,

[[Page 497]]

or adjacent to a coastal water area because the use or facility requires 
access to the coastal water body;
    (ii) Consultation in accordance with Sec. 206.348 shall be 
accomplished.
    (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 Sec. 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 Sec. 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 Sec. 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 Sec. 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 Sec. 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 Sec. 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 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.

Sec. 206.348  Consultation.

    As required by section 6 of the CBRA, the FEMA Regional Director 
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 Sec. 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

[[Page 498]]

limit, the FEMA Regional Director shall contact the DOI representative 
to determine if the request for consultation was received in a timely 
manner. If it was not, an appropriate extension for response will be 
given. Otherwise, he or she may assume DOI concurrence and proceed with 
approval of the proposed action.
    (c) For those cases in which the regional DOI representative 
believes that the proposed action should not be taken and the matter 
cannot be resolved at the regional level, the FEMA Regional Director 
will submit the issue to the FEMA Assistant Associate Director for 
Disaster Assistance Programs (DAP). In coordination with the Office of 
General Counsel (OGC), consultation will be accomplished at the FEMA 
National Office with the DOI consultation officer. After this 
consultation, the Assistant Associate Director, DAP, determines whether 
or not to approve the proposed action.

Sec. 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 Director 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 Director before funding may be 
approved for that action.

Secs. 206.350-206.359  [Reserved]

                   Subpart K--Community Disaster Loans

    Source: 55 FR 2314, Jan. 23, 1990, unless otherwise noted.

Sec. 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 Act.

Sec. 206.361  Loan program.

    (a) General. The Associate Director, State and Local Programs and 
Support (the Associate Director) 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 means the local 
government's fiscal year.

[[Page 499]]

    (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 Associate Director 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 Associate Director. The Associate Director 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 Sec. 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 Associate Director shall cancel repayment of 
all or part of a Community Disaster 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]

Sec. 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 Associate Director.
    (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 Director 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 Associate Director. He/she may submit 
appropriate recommendations to the Associate Director.
    (d) The Associate Director, or a designee, shall execute a 
Promissory Note with the local government, and the Office of Disaster 
Assistance Programs in Headquarters, FEMA, shall administer

[[Page 500]]

the loan until repayment or cancellation is completed and the Promissory 
Note is discharged.
    (e) The Associate Director 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 Director. The Associate Director or designee shall approve 
or disapprove a request for loan cancellation in accordance with the 
criteria for cancellation in these regulations.
    (f) The Comptroller shall establish and maintain a financial account 
for each outstanding loan and disburse funds against the Promissory 
Note.

Sec. 206.363  Eligibility criteria.

    (a) Local government. (1) The local government must be located 
within the area designated by the Associate Director 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;
    (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]

[[Page 501]]

Sec. 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 Sec. 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 Director 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 Sec. 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 Position, 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 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 Sec. 206.366(b).
    (c) Federal review. (1) The Associate Director or designee shall 
approve a community disaster loan to the extent it is determined that 
the local government has suffered a substantial loss of

[[Page 502]]

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 Associate Director 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 Associate Director 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 Associate 
Director 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 Sec. 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 
Associate Director, 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.

(Approved by Office of Management and Budget under Control Number 3067-
0034)

Sec. 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 Director, 
the Associate Director, 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 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 Headquarters, FEMA Office of Disaster Assistance Programs, 
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 Headquarters, FEMA Office of Disaster Assistance Programs, 
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.

[[Page 503]]

    (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.

Sec. 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 Associate Director 
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 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.
    (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

[[Page 504]]

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 
Director 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 Associate Director to consider in rendering a 
decision on the cancellation request.
    (d) Determination. (1) If, based on a review of the Application for 
Loan Cancellation and FEMA audit, when determined necessary, the 
Associate Director 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 
Associate Director'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: Office of the Comptroller.
    (2) A loan or cancellation of a loan does not reduce or affect other 
disaster-related grants or other disaster assistance. However, no 
cancellation

[[Page 505]]

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 Sec. 206.367.
    (4) Appeals. If an Application for Loan Cancellation is disapproved, 
in whole or in part, by the Associate Director 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 Associate Director or designee on the submission is final.

(Approved by the Office of Management and Budget under Control Number 
3067-0026)

Sec. 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 du 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 Associate Director. 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=PxRxT, 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 Associate Director 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 Associate Director 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.

[[Page 506]]

Secs. 206.368-206.389  [Reserved]

                 Subpart L--Fire Suppression Assistance

    Source: 55 FR 2318, Jan. 23, 1990, unless otherwise noted.

Sec. 206.390  General.

    When the Associate Director 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.

Sec. 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 
Director. The Agreement contains the necessary terms and conditions, 
consistent with the provisions of applicable laws, Executive Orders, and 
regulations, as the Associate Director 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.

Sec. 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 State may submit a telephone request to the 
Regional Director, promptly followed by a confirming telegram or letter. 
(Approved by the Office of Management and Budget under the Control 
Numbers 3067-0066)

Sec. 206.393  Providing assistance.

    Following the Associate Director's decision on the State request, 
the Regional Director will notify the Governor and the Federal 
firefighting agency involved. The Regional Director 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 Director for approval.

Sec. 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 the Associate Director.
    (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

[[Page 507]]

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 Director 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).

Sec. 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 
(Sec. 206.394(b)(9)), the Regional Director 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.)
    (d) A State may appeal a determination by the Regional Director on 
any action related to Federal assistance for fire suppression. Appeal 
procedures are contained in 44 CFR 206.206.

Secs. 206.396-206.399  [Reserved]

                      Subpart M--Minimum Standards

    Source: 67 FR 8852, Feb. 26, 2002, unless otherwise noted.

Sec. 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 Director determines that otherwise 
applicable codes, specifications, and standards are inadequate, then the 
Regional Director may, after consultation with appropriate State and 
local officials, require the use of nationally applicable codes, 
specifications, and standards, as well as safe land use and construction 
practices in the course of repair or construction activities.
    (d) The mitigation planning process that is mandated by section 322 
of the Stafford Act and 44 CFR part 201 can assist State and local 
governments in

[[Page 508]]

determining where codes, specifications, and standards are inadequate, 
and may need to be upgraded.

Sec. 206.401  Local standards.

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

Sec. 206.402  Compliance.

    A recipient of disaster assistance under the Stafford Act must 
document for the Regional Director 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.

Sec. 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]

Sec. 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.
    Grant application means the request to FEMA for HMGP funding, as 
outlined in Sec. 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 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 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 or Indian tribal 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 Sec. 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 Sec. 206.436.
    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 non-

[[Page 509]]

profit organizations, or Indian tribal government as outlined in 
Sec. 206.433. Indian tribal governments acting as a subgrantee are 
accountable to the State grantee.

[67 FR 8852, Feb. 26, 2002]

Sec. 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 of Federal assistance under 
this subpart shall not exceed either 15 or 20 percent of the total 
estimated Federal assistance (excluding administrative costs) provided 
for a major disaster under 42 U.S.C. 5170b, 5172, 5173, 5174, 5177, 
5178, 5183, and 5201 as follows:
    (1) Fifteen (15) percent. Effective November 1, 2004, a State with 
an approved Standard State Mitigation Plan, which meets the requirements 
outlined in 44 CFR 201.4, shall be eligible for assistance under the 
HMGP not to exceed 15 percent of the total estimated Federal assistance 
described in this paragraph. Until that date, existing, FEMA approved 
State Mitigation Plans will be accepted.
    (2) Twenty (20) percent. A State with an approved Enhanced State 
Mitigation Plan, in effect prior to the disaster declaration, which 
meets the requirements outlined in 44 CFR 201.5 shall be eligible for 
assistance under the HMGP not to exceed 20 percent of the total 
estimated Federal assistance described in this paragraph.
    (3) The estimates of Federal assistance under this paragraph (b) 
shall be based on the Regional Director's estimate of all eligible 
costs, actual grants, and appropriate mission assignments.
    (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]

Sec. 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 Sec. 206.435.
    (c) Hazard Mitigation Officer. The State must appoint a Hazard 
Mitigation Officer, as required under 44 CFR part 206 subpart M, 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 Sec. 206.437.

Sec. 206.434  Eligibility.

    (a) Applicants. The following are eligible to apply for the Hazard 
Mitigation Program Grant:
    (1) State and local governments;
    (2) Private non-profit organizations or institutions that own or 
operate a private non-profit facility as defined in Sec. 206.221(e);
    (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) For all disasters declared on or after 
November 1, 2004, local and tribal government applicants for subgrants 
must have an approved local mitigation plan in accordance with 44 CFR 
201.6 prior to receipt of HMGP subgrant funding. Until November 1, 2004, 
local mitigation plans may be developed concurrent with the 
implementation of subgrants.
    (2) Regional Directors may grant an exception to this requirement in 
extraordinary circumstances, such as in a

[[Page 510]]

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 
Mitigation Plan approved under 44 CFR part 201;
    (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 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. Both costs and benefits will be computed 
on a net present value basis,
    (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. 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 acquisition and relocation requirements. A project 
involving property acquisition or the relocation of structures and 
individuals is eligible for assistance only if the applicant enters an 
agreement with the FEMA Regional Director 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 Director approves in writing before the 
construction of the structure begins.

[[Page 511]]

    (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) Inapplicability of the Uniform Relocation Act. The Uniform 
Relocation Assistance and Real Property Acquisition Policies Act of 1970 
does not apply to real property acquisition projects which meet the 
criteria identified below:
    (1) The project provides for the purchase of property damaged by the 
major, widespread flooding in the States of Illinois, Iowa, Kansas, 
Minnesota, Missouri, Nebraska, North Dakota, South Dakota, and Wisconsin 
during 1993;
    (2) It provides for such purchase solely as a result of such 
flooding;
    (3) It is carried out by or through a State or unit of general local 
government;
    (4) The purchasing agency (grantee or subgrantee) notifies all 
potential property owners in writing that it will not use its power of 
eminent domain to acquire the properties if a voluntary agreement is not 
reached;
    (5) The project is being assisted with amounts made available for:
    (i) Disaster relief by the Federal Emergency Management Agency; or
    (ii) By other Federal financial assistance programs.
    (g) 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 extraordinary threats to lives, public 
health or safety or improved property.
    (h) 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]

Sec. 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 Sec. 206.434(b) 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]

Sec. 206.436  Application procedures.

    (a) General. This section describes the procedures to be used by the 
grantee in submitting an application for HMGP

[[Page 512]]

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 
Director. 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 an 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 Sec. 206.434(c);
    (7) Work schedule;
    (8) Justification for selection;
    (9) Alternatives considered;
    (10) Environmental information consistent with 44 CFR part 9, 
Floodplain Management and Protection of Wetlands, and 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 Director within 12 months of the date of 
disaster declaration.
    (e) Extensions. The State may request the Regional Director 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 Director 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 Director.

[67 FR 8853, Feb. 26, 2002]

Sec. 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;
    (iv) Conduct environmental and floodplain management reviews;
    (v) Establish priorities for selection of mitigation projects;

[[Page 513]]

    (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 requirements of 44 CFR parts 13 
and 206;
    (xii) Comply with audit requirements of 44 CFR part 14;
    (xiii) Provide quarterly progress reports to the Regional Director 
on approved projects.
    (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 Director 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 Director.

(Approved by the Office of Management and Budget under OMB control 
number 3067-0208)

[55 FR 35537, Aug. 30, 1990, as amended at 55 FR 52172, Dec. 20, 1990]

Sec. 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 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 Director 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 Director for a determination. The 
applicant's justification for additional costs and other pertinent 
material shall accompany the request. The Regional Director 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 Sec. 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 Director 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 Director shall 
determine the eligible amount of reimbursement for each claim and 
approve payment. If a mitigation measure is not completed, and there is

[[Page 514]]

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 14 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.

Sec. 206.439  Allowable costs.

    (a) General. 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.
    (b) Eligible direct costs. The eligible direct costs for 
administration and management of the program are divided into the 
following two categories.
    (1) Statutory administrative costs--(i) Grantee. Pursuant to 
406(f)(2) of the Stafford Act, an allowance will be provided to the 
State to cover the extraordinary costs incurred by the State for 
preparation of applications, quarterly reports, final audits, and 
related field inspections by State employees, including overtime pay and 
per diem and travel expenses, but not including regular time for such 
employees. The allowance will be based on the following percentages of 
the total amount of assistance provided (Federal share) for all 
subgrantees in the State under section 404 of the Stafford Act:
    (A) For the first $100,000 of total assistance provided (Federal 
share), three percent of such assistance.
    (B) For the next $900,000, two percent of such assistance.
    (C) For the next $4,000,000, one percent of such assistance.
    (D) For assistance over $5,000,000, one-half percent of such 
assistance.
    (ii) Subgrantee. Pursuant to section 406(f)(1) of the Stafford Act, 
necessary costs of requesting, obtaining, and administering Federal 
disaster assistance subgrants will be covered by an allowance which is 
based on the following percentages of total net eligible costs under 
section 404 of the Stafford Act, for an individual applicant (applicants 
in this context include State agencies):
    (A) For the first $100,000 of net eligible costs, three percent of 
such costs.
    (B) For the next $900,000, two percent of such costs.
    (C) For the next $4,000,000, one percent of such costs.
    (D) For those costs over $5,000,000, one-half percent of such costs.
    (2) State management costs--(i) Grantee. Except for the items listed 
in paragraph (b)(1)(i) of this section, other administration costs shall 
be paid in accordance with 44 CFR 13.22. Costs of State personnel 
(regular time salaries only) assigned to administer the Hazard 
Mitigation Grant Program may be eligible when approved by the Regional 
Director. Such costs shall be shared in accordance with the cost share 
provisions of section 404 of the Act. For grantee administrative costs 
in the Disaster Field Office, the State shall submit a plan for the 
staffing of the Disaster Field Office within 5 days of the opening of 
the office. This staffing plan shall be in accordance with the 
administrative plan requirements of Sec. 206.437. After the close of the 
Disaster Field Office, costs of State personnel (regular time salaries 
only) for continuing management of the hazard mitigation grants may be 
eligible when approved in advance by the Regional Director. The State 
shall submit a plan for such staffing in advance of the requirement.
    (c) Eligible indirect costs--(1) Grantee. Indirect costs of 
administering the disaster program are eligible in accordance with the 
provisions of 44 CFR part 13 and OMB Circular A-87.
    (2) Subgrantee. No indirect costs of a subgrantee are separately 
eligible because the percentage allowance in paragraph (b)(1)(ii) of 
this section necessary costs of requesting, obtaining and administering 
Federal assistance.

Sec. 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.
    (a) Format and Content. The applicant or subgrantee will make the 
appeal in writing through the grantee to the Regional Director. The 
grantee shall review and evaluate all subgrantee appeals before 
submission to the Regional

[[Page 515]]

Director. The grantee may make grantee-related appeals to the Regional 
Director. The appeal shall contain documented justification supporting 
the appellant's position, specifying the monetary figure in dispute and 
the provisions in Federal law, regulation, or policy with which the 
appellant believes the initial action was inconsistent..
    (b) Levels of Appeal. (1) The Regional Director will consider first 
appeals for hazard mitigation grant program-related decisions under 
subparts M and N of this part.
    (2) The Associate Director/Executive Associate Director for 
Mitigation will consider appeals of the Regional Director's decision on 
any first appeal under paragraph (b)(1) of this section.
    (c) Time Limits. (1) Appellants must 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 Director 
within 60 days of receipt.
    (3) Within 90 days following receipt of an appeal, the Regional 
Director (for first appeals) or Associate Director/Executive Associate 
Director (for second appeals) will notify the grantee in writing of the 
disposition of the appeal or of the need for additional information. A 
request by the Regional Director or Associate Director/Executive 
Associate Director for additional information will include a date by 
which the information must be provided. Within 90 days following the 
receipt of the requested additional information or following expiration 
of the period for providing the information, the Regional Director or 
Associate Director/Executive Associate Director will notify the grantee 
in writing of the disposition of the appeal. If the decision is to grant 
the appeal, the Regional Director will take appropriate implementing 
action.
    (d) Technical Advice. In appeals involving highly technical issues, 
the Regional Director or Associate Director/Executive Associate Director 
may, at his or her discretion, submit the appeal to an independent 
scientific or technical person or group having expertise in the subject 
matter of the appeal for advice or recommendation. The period for this 
technical review may be in addition to other allotted time periods. 
Within 90 days of receipt of the report, the Regional Director or 
Associate Director/Executive Associate Director will notify the grantee 
in writing of the disposition of the appeal.
    (e) Transition. (1) This rule is effective for all appeals pending 
on and appeals from decisions issued on or after May 8, 1998, except as 
provided in paragraph (e)(2) of this section.
    (2) Appeals pending from a decision of an Associate Director/
Executive Associate Director before May 8, 1998 may be appealed to the 
Director in accordance with 44 CFR 206.440 as it existed before May 8, 
1998.
    (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]

                        PARTS 207-208 [RESERVED]



General Information Federal Coordination and Compliance
Federal Coordination and Compliance
Title VI Hotline: 1-888-TITLE-06
(1-888-848-5306) (Voice / TTY)
Leadership
Deeana Jang
Chief
Contact
U.S. Department of Justice
Civil Rights Division
Federal Coordination and Compliance Section, NWB
950 Pennsylvania Avenue, N.W.
Washington, D.C. 20530

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