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]