Foreword
 

In recent years, tremendous strides have been made by Federal, State, 

Tribal, and local governments to educate the public about natural 

disasters. Localities are now better able to respond to disasters, recover 

from their impact, and mitigate future damage. However, it remains a fact 

that in situations of catastrophic proportions, nothing that technology 

or preparedness has provided can prevent the inherent discontinuity in 

our lives caused by major disasters. Such events must be responded to 

through a cooperative Federal, State, Tribal, and local effort. 

When a disaster occurs, it is the responsibility first of the local community 

and then the State to respond. Often, their combined efforts are not 

sufficient to cope effectively with the direct results of the disaster. This 

situation calls for Federal assistance to supplement State, Tribal, and local 

efforts. The Robert T. Stafford Disaster Relief and Emergency Assistance 

Act, 42 U.S.C. §5121 – 5207, authorizes the President to provide such 

assistance. Assistance is coordinated through the Federal Emergency 

Management Agency (FEMA), a component of the Department of 

Homeland Security. This guide explains how FEMA implements that 

portion of the law that authorizes Federal grants for infrastructure 

recovery through its Public Assistance (PA) Program. Potential recipients 

of this funding include State, Tribal, and local governments and certain 

types of Private Nonprofit (PNP) organizations. 

A fundamental goal of the PA Program is to ensure that everyone shares 

a common understanding of the program policies and procedures. To 

support this goal, FEMA has undertaken an effort to provide the State, 

Tribal, and local partners with more and better information about the PA 

Program. This guide describes the PA Program’s basic provisions and 

application procedures. The guide may be of interest to elected leaders, 

emergency managers, city engineers, public works directors, financial 

management personnel, managers of eligible PNP organizations, and 

other individuals who have the responsibility for restoring a community’s 

infrastructure in the wake of a disaster. An electronic version is available 

on the FEMA website (www.fema.gov/government/grant/pa/ and click on 

Policy and Guidance). Because this document is not exhaustive and 

the provisions are subject to modification, the information contained 

herein should be verified with FEMA PA Program officials before 

becoming the basis for decision making. 

FEMA Public Assistance Guide 
We invite comments that will make this guide as helpful as possible to all 

users, applicants, and administrators of Public Assistance. Please send 

your comments, as well as any other suggestions on ways to improve the 

program, to: 

James A. Walke 

Director 

Public Assistance Division, 4th Floor 

Federal Emergency Management Agency 

500 C Street, SW 

Washington, D.C. 20472 

With a shared understanding of the program and through a partnership 

with all participants, we expect to efficiently, effectively, and consistently 

provide recovery grant funding to all eligible applicants whose lives and 

infrastructure have been disrupted by disaster. 

David Garratt 

Acting Assistant Administrator 

Disaster Assistance Directorate 

Federal Emergency Management Agency 

 FEMA Public Assistance Guide 
Table of Contents
 

Foreword................................................................................................i



List.of.Acronyms.................................................................................... v



Chapter.1:.Disaster.Assistance.Overview...............................................1



When Disaster Strikes ......................................................................... 1



Declaration Process............................................................................. 2 
 

The PA Program................................................................................... 3



State Management of Disasters .......................................................... 5



Chapter.2:.Eligibility..............................................................................7



Governing Documents......................................................................... 7 
 

Applicant.............................................................................................. 9



Facility................................................................................................ 22



Work................................................................................................... 29



Cost ................................................................................................... 40



Categories of Work ............................................................................ 66



Category A – Debris Removal..................................................... 67



Category B – Emergency Protective Measures .......................... 71



Category C – Roads and Bridges ............................................... 79



Category D – Water Control Facilities ......................................... 82



Category E – Buildings and Equipment ...................................... 83



Category F – Utilities................................................................... 85



Category G – Parks, Recreational, and Other............................. 86



Chapter.3:.Applying.for.Public.Assistance............................................89



Process Overview.............................................................................. 89



Preliminary Damage Assessment and Immediate Needs Funding.... 90



Applicants’ Briefing............................................................................ 91



Request for Public Assistance (Request)........................................... 92



Assignment of the Public Assistance Coordination (PAC)
 


Crew Leader................................................................................ 92



Kickoff Meeting.................................................................................. 94 
 

Project Formulation ........................................................................... 94



Validation ......................................................................................... 106



Grant Processing ............................................................................. 108



Closeout........................................................................................... 114



FEMA Public Assistance Guide 
Chapter.4:.Special.Considerations.....................................................115



What Are Special Considerations? .................................................. 115 
 

The Special Considerations Process............................................... 116



Insurance ......................................................................................... 119



Hazard Mitigation............................................................................. 124



Environmental/Historic Preservation Compliance ........................... 127



Chapter.5:.Project.Management........................................................137



Record Keeping............................................................................... 137



Time Limits ...................................................................................... 138



Changes in Scope of Work and Costs............................................. 139



Progress Reports............................................................................. 141



Audits............................................................................................... 141



Index................................................................................................143



Tables
 


Table 1: Private Nonprofit Facilities: Permanent Work....................... 12



Table 2: Repair/Replacement............................................................. 37



Table 3: Paid Fringe Benefits ............................................................. 46



Table 4: Administrative Allowance – Applicants ................................ 64



Table 5: Administrative Allowance – Grantee .................................... 65



Table 6: Categories of Work............................................................... 66



Table 7: Combining Work................................................................... 98



Table 8: Preferred Pricing When Using the CEF .............................. 106



Table 9: Mitigation............................................................................ 124



Table 10: Completion Deadlines ...................................................... 138



Figures
 


Figure 1: PNP Application Process.................................................... 15



Figure 2: Applicant’s Benefits Calculation Worksheet ....................... 47



Figure 3: Engineering and Design Services of Above-Average
 


Complexity .................................................................................. 58



Figure 4: Engineering and Design Services of Average Complexity.. 60



Figure 5: Request for Public Assistance............................................ 93



Figure 6: Project Worksheet............................................................... 97



Figure 7: Special Considerations Questions.................................... 118



Appendices



Appendix A: Stafford Act, P.L. 93-288



Appendix B: 44 CFR Part 206, Subparts C and G–L



Appendix C: 44 CFR Part 13, Subparts A–D



v FEMA Public Assistance Guide 
List of Acronyms 

ADA Americans with Disabilities Act 

CBRA Coastal Barrier Resources Act 

CBRS Coastal Barrier Resources System 

CEF Cost Estimating Format 

CFR Code of Federal Regulations 

CWA Clean Water Act 

DHS Department of Homeland Security 

DRM Disaster Recovery Manager 

EMAC Emergency Management Assistance Compact 

EO Executive Order 

ESA Endangered Species Act 

FCO Federal Coordinating Officer 

FEMA Federal Emergency Management Agency 

FHWA Federal Highway Administration 

FIA Federal Insurance Administration 

FICA Federal Insurance Contributions Act 

FIRM Flood Insurance Rate Map 

GAR Governor’s Authorized Representative 

HUD Department of Housing and Urban Development 

ICS Incident Command System 

INF Immediate Needs Funding 

JFO Joint Field Office 

NEPA National Environmental Policy Act 

NFIP National Flood Insurance Program 

NHPA National Historic Preservation Act 

NMFS National Marine Fisheries Service 

NOAA National Oceanic and Atmospheric Administration 

NRCS Natural Resources Conservation Service 

OCC FEMA’s Office of Chief Counsel 

PA Public Assistance 

PDA Preliminary Damage Assessment 

FEMA Public Assistance Guide v
PL Public Law 

PNP Private Nonprofit 

PW Project Worksheet 

RA Regional Administrator (FEMA) 

SBA Small Business Administration 

SCO State Coordinating Officer 

SHPO State Historic Preservation Officer 

SMD State Management of Disasters 

SOP Standard Operating Procedure 

THPO Tribal Historic Preservation Officer 

USACE U.S. Army Corps of Engineers 

USFWS U.S. Fish and Wildlife Service 

Incident Command System (ICS) Titles for 

Public Assistance Positions (PA)* 

Former.Title New.Title 

Infrastructure Branch Chief PA Infrastructure Branch 

Director/Deputy 

Public Assistance Officer (PAO) PA Group Supervisor 

Deputy Public Assistance Officer (DPAO)** PA Task Force Leader 

Public Assistance Coordinator (PAC) PAC Crew Leader 

Project Officer (PO) PA Project Specialist 

Specialist*** PA Technical Specialist  

Debris Monitor PA Debris Monitoring Specialist 

Administrative Assistant PA Administrative Specialist 

Data Processing Coordinator PA Data Processing Manager 

Data Processing Technician PA Data Processing Specialist 

Resource Coordinator PA Ordering Specialist 

Instructor PA Training Specialist 

New Position** *** PA Planning Specialist 

*	 PA Crew/Squad Leaders may be assigned as needed to optimize span of control. 

**	 With or without Debris Specialty. 

***	 The Liaison positions no longer reside within PA. Those individuals who are liaisons 

will be labeled “unassigned” in the crosswalk unless determined otherwise. 

 	 Technical Specialties include: Debris, Hazard Mitigation, Insurance, Preliminary 

Damage Assessment, Estimating, Environmental/Historical, Private Nonprofit, Quality 

Assurance. 

** ***Position added to ensure the planning function is addressed until further ICS 

implementation has been achieved. 

v	 FEMA Public Assistance Guide 
CHAPTER.1



Disaster Assistance 

Overview 

Federal assistance in the wake of disasters is coordinated by the 

Federal Emergency Management Agency (FEMA), a component of the 

Department of Homeland Security. Under the Public Assistance (PA) 

Program, FEMA provides supplemental aid to States1

, communities, and 

certain private nonprofit organizations (PNPs) to help them recover from 

disasters as quickly as possible. This chapter describes the events that 

occur after a disaster strikes and introduces the PA Program. 

When.Disaster.Strikes 

Each year, the United States is struck by disasters that severely affect 

communities and State and local governments. The list of events that 

cause disasters includes natural events, such as hurricanes, tornadoes, 

storms, earthquakes, volcanic eruptions, landslides, snowstorms, and 

droughts; and regardless of cause, fires, floods, and explosions. The 

effects of disasters may be limited to a single community, such as when a 

small town is hit by a tornado, or they may be widespread, such as when 

a hurricane affects several States. Regardless of the scope of a disaster, 

the affected communities and States often need the assistance of the 

Federal government when responding to and recovering from the event. 

This assistance is available under the Robert T. Stafford Disaster Relief 

and Emergency Assistance Act, 42 U.S.C. §5121 – 5207 (hereinafter 

referred to as the Stafford Act). 

Communities are responsible for the protection of their residents, 

and local emergency response forces will always be the first line of 

defense when a disaster strikes. The intent of the Stafford Act is that 

Federal assistance be supplemental to local, State, and private relief 

organizations. Nevertheless, it is not necessary for the community to 

exhaust its resources before it requests Federal assistance. 

1.		For purposes of this document, the term “State” refers to the Grantee. Grantees include the 

States, the District of Columbia, U.S. territories, and insular areas; and can include Indian 

Tribes and Alaskan Native Tribal governments. 

Chapter 1: Disaster Assistance Overview 
When a disaster occurs and a locality has responded to the best of its 

ability and is, or will be, overwhelmed by the magnitude of the damage, 

the community turns to the State for help. The Governor, after examining 

the situation, may direct that the State’s emergency plan be executed, 

direct the use of State police or the National Guard, or commit other 

resources, as appropriate to the situation. If it is evident that the situation 

is or will be beyond the combined capabilities of the local and State 

resources, the Governor may request that the President declare, under 

the authority of the Stafford Act, that an emergency or major disaster 

exists in the State. 

While this request is being processed, local and State government 

officials should not delay in taking the necessary response and recovery 

actions. Such actions should not be dependent upon whether there will 

be Federal assistance. 

Declaration.Process 

The request for a declaration must come from the Governor or Acting 

Governor. Before sending a formal request letter to the President, the 

Governor will request that FEMA conduct a joint Preliminary Damage 

Assessment (PDA) with the State to verify damage and estimate the 

amount of supplemental assistance that will be needed. If the Governor 

believes that Federal assistance is necessary after this assessment is 

complete, the Governor sends a request letter to the President, directed 

through the Regional Administrator (RA) of the appropriate FEMA region. 

The RA reviews the request and forwards it with a recommendation to the 

Director of FEMA who, in turn, makes a recommendation to the President. 

In the aftermath of a significant event causing extensive damage and 

loss of life, the declaration process may be expedited. The President 

makes the decision whether to declare a major disaster or emergency. 

After the initial declaration, the person designated by the Governor as 

the Governor’s Authorized Representative (GAR) may request additional 

areas to be eligible for assistance or for additional types of assistance as 

deemed necessary. 

After a declaration is made, FEMA will designate the area eligible for 

assistance and the types of assistance available. With the declaration, 

the President appoints a Federal Coordinating Officer (FCO). The FCO 

is responsible for coordinating all Federal disaster assistance programs 

administered by FEMA, other Federal departments and agencies, and 

voluntary organizations. At the same time, the RA or one of his or her 

staff will be appointed as the Disaster Recovery Manager (DRM). The 

DRM is responsible for managing the FEMA assistance programs. 

 Chapter 1: Disaster Assistance Overview 
The DRM authority often is delegated to the FCO. The Governor may 

appoint a State Coordinating Officer (SCO) as the FCO’s counterpart. 

Generally, the SCO and the GAR are the same person. State emergency 

operations plans should describe the role of the SCO as the Governor’s 

representative to act in cooperation with the FCO to administer disaster 

recovery efforts. 

FEMA may also establish a Joint Field Office (JFO) in or near the disaster 

area. This office is used by Federal and State staff and is the focal 

point of disaster recovery operations. FEMA and the State manage the 

implementation of the PA Program from the JFO. 

The.PA.Program 

Under the PA Program, which is authorized by the Stafford Act, FEMA 

awards grants to assist State and local governments and certain 

Private Nonprofit (PNP) entities with the response to and recovery from 

disasters. Specifically, the program provides assistance for debris 

removal, emergency protective measures, and permanent restoration 

of infrastructure. The Federal share of these expenses typically cannot 

be less than 75 percent of eligible costs. The program also encourages 

protection from future damage by providing assistance for hazard 

mitigation measures during the recovery process. The PA Program 

encourages planning for disaster recovery, but PA Program funds may 

not be used for the costs of planning. The costs incurred implementing 

the plans are eligible for reimbursement only if they meet PA Program 

eligibility criteria. 

The PA Program is based on a partnership of FEMA, State, and local 

officials. 

FEMA is responsible for managing the program, approving grants, 

and providing technical assistance to the State and applicants. 

The State, in most cases, acts as the Grantee for the PA Program. 

FEMA, the State, and the Applicant are all responsible for grants 

awarded under the PA program. The State educates potential 

applicants, works with FEMA to manage the program, and is 

responsible for implementing and monitoring the grants awarded 

under the program. In some instances, the State may take a more 

active role in overall management of certain disasters, as discussed 

later in this chapter under State Management of Disasters. Some 

State regulations prohibit the State from acting as Grantee for an 

Indian Tribe. In such cases, or upon the Tribe’s choice, a Tribal 

government may act as its own Grantee. 

Chapter 1: Disaster Assistance Overview 
Local officials are responsible for identifying damage, providing 

sufficient data for FEMA to develop an accurate scope and cost 

estimate for doing the work and approving grants, and managing the 

projects funded under the PA Program. 

The PA Program staff consists of management and field personnel who 

assist the applicant during the recovery process. These staff members 

include a Public Assistance Group Supervisor (Public Assistance 

Officer), Public Assistance Coordination Crew Leader (Public Assistance 

Coordinator), Public Assistance Project Specialist (Project Officer), and 

Public Assistance Technical Specialists (Specialists). The duties of each 

are described below. 

PA Group Supervisor. The PA Program is managed at the JFO by 

the PA Group Supervisor. As the program manager, the PA Group 

Supervisor advises the FCO on all PA Program matters; manages 

the operation of PA Program staff and any coordination between the 

PA Program and other arms of the Federal disaster recovery effort; 

works with State counterparts; and ensures that the PA Program is 

operating in compliance with all laws, regulations, and policies. 

Public Assistance Coordination (PAC) Crew Leader. At the 

beginning of the disaster recovery process, FEMA, in coordination 

with the State, assigns a PAC Crew Leader to each applicant. The 

PAC Crew Leader is a customer service manager who works with 

the applicant to resolve disaster-related needs and ensure that the 

applicant’s projects are processed as efficiently and expeditiously as 

possible. By being involved from the declaration to the obligation of 

funds, the PAC Crew Leader ensures continuity of service throughout 

the delivery of the PA Program. A PAC Crew Leader generally has 

responsibility for more than one applicant. The PAC Crew Leader’s 

specific responsibilities are described in more detail in Chapter 3. 

PA Project Specialists and Technical Specialists. Project and 

Technical Specialists are resources for the applicant. Typically, Project 

Specialists are responsible for assisting with the development of 

projects and cost estimates. While a Project Specialist is generally 

knowledgeable with regard to the PA Program, a Technical Specialist 

usually has a defined area of expertise that a Project Specialist 

may call upon in the development of a specific project. Technical 

Specialists assigned to a JFO may have experience in such areas as 

roads and bridges, utility infrastructure, debris removal and disposal, 

environmental and historic preservation compliance, insurance, and 

 Chapter 1: Disaster Assistance Overview 
cost estimating. The Project Specialist’s and Technical Specialist’s 

specific responsibilities are described in more detail in Chapter 3. 

The Project Specialist and Technical Specialist positions are primarily 

staffed by FEMA personnel. However, FEMA often relies on State, other 

Federal agency and contractor resources to supplement these positions. 

State personnel may also be assigned to work with FEMA staff and local 

officials involved with response and recovery efforts. 

Once the JFO is established and appropriate FEMA and State personnel 

are deployed, applicants can begin the process of requesting and 

receiving Public Assistance. The remainder of this guide: 

	 outlines the eligibility requirements of the PA Program, including a 

detailed discussion of the applicants, facilities, types of work, and 

costs that are eligible for assistance under the PA Program (Chapter 

2); 

	 describes the process of applying for Public Assistance, including a 

discussion of the project formulation process and the Federal, State, 

and applicant roles and responsibilities in development of projects, 

scopes of work, and cost estimates (Chapter 3); 

	 identifies insurance requirements, hazard mitigation opportunities, 

environmental concerns including floodplain management, and 

historic preservation issues that affect program processing and 

funding (Chapter 4); and 

	 discusses project management operations (Chapter 5). 

State.Management.of.Disasters 

Under the State Management of Disasters (SMD) initiative, in some cases 

an interested and capable State, or Tribal government acting as its own 

Grantee, may manage the PA field operation, including project eligibility 

reviews, process control, and resource allocation on small disasters. 

The participating State voluntarily enters into an Operational Agreement 

with FEMA, which entrusts many aspects of program management to 

the State. FEMA retains obligation authority, ensures compliance with 

environmental and historic preservation laws, participates in quality 

control reviews with the State, and provides technical assistance as 

requested by the State. 

Small disasters are disasters that warrant a major disaster declaration by 

the President, but are limited in scope and size generally as defined by 

the following: 

Chapter 1: Disaster Assistance Overview 
	 statewide infrastructure damage up to $2 per capita, or 

 limited to debris removal and emergency protective measures. 

For a State to be eligible to manage a disaster under this initiative, the 

State must have: 

 recent disaster experience;
 

 adequate State staff;
 

 an SMD Addendum to the State Administrative Plan for Public


Assistance; 

	 a fiscal accounting system that can track specific projects, prepare 

for and undergo audit, and be used to evaluate appeals; 

	 an established record of having met deadlines for grant 

management activities; and 

	 approval by FEMA. 

	 Chapter 2: Eligibility 
CHAPTER.2 

Eligibility
 

GOvERNING.DOCuMENTS 

The PA Program is based on a hierarchy of statute, regulations, and 

policies. The statute is the Federal law that authorizes the program. From 

the statute, regulations are published to further define program scope, 

and policies are written to apply the statute and regulations to specific 

situations. These authorities govern the eligibility criteria through which 

FEMA provides funds for Public Assistance. 

Additional statutes, Executive Orders (EOs), regulations, and policies that 

affect the administration of the PA Program are described in Chapter 4. 

Statutes 

Statutes are laws passed by the U.S. Congress and signed by the 

President. They cannot be changed by FEMA or any other government 

agency. The law that authorizes the PA Program is the Stafford Act 

(Appendix A). The basic provisions outlined in the Stafford Act: 

	 give the President the authority to administer Federal disaster 

assistance; 

	 define the scope and eligibility criteria of the major disaster



assistance programs;
 


	 authorize grants and direct assistance to the States; and 

	 define the minimum Federal cost-sharing levels. 

Regulations 

Regulations are rules designed to implement a statute based on an 

agency’s interpretation of that statute. FEMA rules provide procedural 

and eligibility requirements for program operations. Typically, they are 

published through an official process that allows for public comment. 

Regulations have the same effect as law and must be complied with 

once they are published in final form. The regulations governing the 

PA Program, outlining program procedures, eligibility, and funding, are 

Chapter 2: Eligibility		 
published in Title 44 of the Code of Federal Regulations (CFR) Part 206, 

Subparts C and G–L (Appendix B). Additionally, regulations regarding 

grant administration and allowable costs can be found in 44 CFR 

Part 13 (Appendix C) – Uniform Administrative Requirements for Grants 

and Cooperative Agreements to State and Local Governments. 

Policies 

Policies are issued by FEMA Headquarters. They clarify or provide 

direction for specific situations that arise in the implementation of Stafford 

Act provisions and various regulations that apply to the PA Program. 

Policies may be subject-specific (for example, applying eligibility 

criteria to landslides) or specific to a single disaster (for example, FEMA 

Policy 9524.1, Welded Steel Moment Frame Policy that was originally 

developed for the Northridge Earthquake). FEMA issues policies so that 

the regulations are interpreted consistently across the nation and from 

disaster to disaster. Policies are published in publications such as this 

and in the 9500 series policy publications. They can be obtained through 

the following sources: 

	 the PA Group Supervisor (Public Assistance Officer), who provides 

the most recent policies pertinent to a specific disaster; 

	 the Public Assistance Policy Digest (FEMA 321); and 

	 FEMA’s website (go to www.fema.gov/government/grant/pa/). 

The remainder of this chapter discusses the basic eligibility criteria for 

Public Assistance funding, as outlined in the governing documents. 

These criteria are presented in terms of the following four components: 

applicant, facility, work, and cost. These sometimes are referred to as 

the four building blocks. 

COST

WORK

FACILITY

APPLICANT

	 Chapter 2: Eligibility 
APPLICANT



COST


WORK
 

FACILITY
 

APPLICANT

Following a disaster declaration by the President and a designation 

for Public Assistance grant funding by FEMA, assistance for response 

and recovery operations is made available to eligible applicants. Four 

types of entities are eligible applicants: State governments, local 

governments, Indian Tribes or authorized Tribal organizations and Alaskan 

Native Villages, and PNP organizations. Applicants that are successful 

in obtaining assistance are formally identified as subgrantees. In 

common usage, the terms “applicant” and “subgrantee” are often used 

interchangeably. 

State.and.Local.Governments 

State and local government agencies are eligible applicants for Public 

Assistance. Examples of State departments include transportation, 

environmental resources, parks and recreation, air and water quality, and 

solid waste and hazardous materials. A multitude of local governments 

are eligible, including towns, cities, counties, municipalities, townships, 

local public authorities, councils of governments, regional and interstate 

government entities, agencies or instrumentalities of local governments, 

special districts or regional authorities organized under State law, school 

districts, and rural or unincorporated communities represented by the 

State or a political subdivision of the State. (See FEMA Policy 9521.5, 

Eligibility of Charter Schools.) 

The general principle for eligibility is that the facilities must be open to the 

public. If a local governmental entity forms a non-profit organization under 

IRS 501(c), the new entity is defined as a PNP organization for treatment 

under the PA Program. 

Indian.Tribes 

Federally recognized Indian Tribal governments, including Alaska Native 

villages and organizations, are eligible applicants. Privately owned Alaska 

Native corporations are not eligible applicants. (See FEMA Policy 9521.4, 

Chapter 2: Eligibility 
Administering American Indian and Alaska Native Tribal Government 

Funding.) 

Generally Indian Tribes are considered applicants or subgrantees and 

receive grant funds from the State (Grantee). In some States, however, 

State regulations prohibit the State from acting as Grantee for an Indian 

Tribe. In such cases or upon their own choice, the Tribal government may 

act as its own Grantee. The Tribe must apply to the FEMA RA to become 

its own Grantee. 

An Indian Tribal government that chooses to act as its own Grantee 

becomes responsible for the entire non-Federal share of the Public 

Assistance grant. In addition, the Tribal government will be required to 

comply with the following conditions in order to receive funding: 

	 meet all requirements placed on a grantee in accordance with 44 

CFR Part 13; 

	 execute a formal FEMA-Tribal Agreement similar to the FEMA-State 

Agreement; and 

	 develop and submit a PA Administrative Plan similar to the State 

Administrative Plan. 

PNP.Organizations 

PNP organizations that own or operate facilities that provide certain 

services of a governmental nature are eligible for assistance. These 

organizations, their facilities, and their services must meet additional 

eligibility criteria beyond those that apply to governmental applicants. 

(See FEMA Policy 9521.3, Private Nonprofit Facility (PNP) Eligibility.) 

Qualifying PNPs are those that provide education, medical, custodial 

care, emergency, utility, certain irrigation facilities, and other essential 

governmental services. Essential governmental services are: 

	 museums; 

	 performing arts facilities; 

	 community arts centers; 

	 zoos; 

	 community centers; 

	 libraries; 

0	 Chapter 2: Eligibility 
 homeless shelters; 

 rehabilitation facilities; 

 senior citizen centers; 

 shelter workshops; and 

 health and safety services of a governmental nature, such as: 

 low-income housing; 

 alcohol and drug treatment centers; 

 residences and other facilities offering programs for battered 

spouses; 

 facilities offering food programs for the needy; and 

 daycare centers for children or those individuals with special 

needs (such as those with Alzheimer’s disease, autism, and 

muscular dystrophy). 

With the exception of educational, emergency, medical, and custodial 

care facilities, an eligible facility is only the location from which the 

qualifying service is delivered. Eligible PNPs are identified in 44 CFR 

§206.221(e), summarized in Table 1, and further described on pages 

15–19. 

In order to be eligible for Public Assistance, PNP organizations are 

required by law and regulation to provide certain types of services 

and to follow special procedures. PNP organizations must have an 

effective ruling letter from the Internal Revenue Service at the time of 

the disaster granting tax exemption under Sections 501(c), (d), or (e) of 

the Internal Revenue Code, or satisfactory evidence from the State that 

the organization is a non-revenue producing, nonprofit entity organized 

or doing business under State law. Further, the specific facility for which 

the PNP organization is requesting funding must be used primarily for 

an eligible purpose consistent with the services identified above and, 

generally, be open to the public. 

Certain types of PNPs are not required to be open to the public. These 

are educational, utility, emergency, medical, or custodial care services, 

as further defined in 44 CFR §206.221(e). For instance, a school run by a 

religious-oriented PNP that restricts enrollment to students of a particular 

religious faith will be eligible for assistance if the school is primarily used 

for secular educational purposes. All other types of PNPs are required to 

Chapter 2: Eligibility 
Table 1: Private Nonprofit Facilities: Permanent Work 

Eligible.Facilities 

Critical.Services Non-Critical.Services Ineligible.Facilities 

• Power facilities for • Alcohol and drug treatment • Advocacy or

generation, transmission facilities that do not provide lobbying groups not 

and distribution of electric medical care directly providing 

power • Rehabilitation centers that health services 

• Water facilities for do not provide medical care • Cemeteries

treatment, transmission, • Animal control facilities • Conference

and distribution by a directly related to public facilities 

water company supplying health and safety when • Daycare centers for 

municipal water. Water under contract with State or those other than 

provided by an irrigation local government included as eligible 

company for potable, fire • Community centers • Irrigation facilities 

protection, or electricity • Custodial care used solely 

generation purposes • Daycare and before/after for agricultural 

• Sewer and wastewater school centers for children purposes 

facilities for collection, • Daycare centers for those • Job counseling and

transmission, and treatment individuals with special training centers 

• Communications facilities needs (e.g., those with • Political education 

for transmission, switching, Alzheimer’s disease, autism, facilities 

and distribution of muscular dystrophy, etc.) • Property owners 

telecommunications traffic • Performing arts facilities associations’ 

• Education facilities • Community arts centers facilities such 

• Emergency medical care • Food programs for the as roads and 

facilities that provide direct needy recreational 

patient care, including • Homeless shelters facilities, except 

hospitals, clinics, outpatient • Libraries those facilities that 

services, hospices, and • Low-income housing (as could be classified 

nursing homes and defined by Federal, State, or as utilities or 

rehabilitation centers that local law or regulation) emergency facilities 

provide medical care • Museums • Public housing, 

• Fire protection/ emergency • Residential facilities for the other than low 

services; fire and rescue disabled income 

companies including • Residences and facilities • Recreation facilities

buildings and vehicles offering services for • Facilities for 

essential to providing battered spouses religious services or 

emergency services, and • Assisted living facilities religious education 

ambulance companies • Senior citizen centers • Parking facilities 

• Eligible facilities supporting • Shelter workshops not in direct 

facilities that provide critical • Zoos support to an 

services (e.g., hospital labs, • Eligible facilities supporting eligible facility 

storage, administration, and irrigation facilities and 

records areas) except for facilities that provide non

irrigation facilities critical services 

 Chapter 2: Eligibility 

­
be open to the public. These include eligible irrigation facilities as well as 

those providing certain essential governmental services to the general 

public as defined in 44 CFR §206.221(e)(7). 

Examples of ineligible PNPs are those restricted to: 

	 a certain number of people in the community; or 

	 members that have a financial interest in the facility, such as a 

condominium association. 

To be open to the general public, access to the use of PNP services must 

not be restricted. Membership requirements or restrictions on services 

that do not disqualify PNPs for Public Assistance include: 

	 fees that cover only administrative processing costs; 

	 fees that can be waived upon demonstration of need; or 

	 restriction to a group of users where at least one parameter is open 

ended, such as all youth under age 16. 

Application.Requirements.for.PNPs. 

Emergency Work. All PNPs that are eligible for FEMA assistance, as 

described above and in 44 CFR §206.221(e), apply directly to FEMA 

through the State for emergency assistance under 44 CFR §206.225. 

Permanent Work. Eligible PNPs seeking reimbursement from FEMA for 

permanent repairs and restoration apply for disaster assistance according 

to the following requirements, depending on whether their facility is 

deemed to provide “critical” or “non-critical” services by the Stafford Act: 

	 Critical services are defined as those providing power, water, 

sewer, wastewater treatment, communications, education, and 

emergency medical, fire protection, and emergency services. PNPs 

that provide critical services apply to FEMA through the State for 

permanent repair and restoration assistance. All other PNPs are 

considered to provide “non-critical” services and must follow the 

application process described below. PNPs that provide critical 

services may have damaged facilities that do not provide critical 

services, e.g., auditoriums. When critical and non-critical services 

share a single facility, the PNP is not required to apply to the Small 

Business Administration (SBA) for a repair loan for the facility. 

Chapter 2: Eligibility		 
	 Non-critical services are those that do not qualify as critical service 

facilities. PNPs with non-critical services must first apply to the SBA 

for a low-interest loan for repair of disaster damages. 

The SBA loan application process for “non-critical” PNP services will 

generate one of three outcomes: 

1. If the PNP is declined for an SBA loan, then the PNP may apply to 

FEMA for Public Assistance. 

2. If the SBA loan fully covers eligible damages from the disaster 

event, then no assistance from FEMA is available. 

3. If the maximum loan for which the facility is eligible does not fully 

cover damage eligible under the PA Program, then the PNP may 

apply to FEMA for the difference. 

If an applicant applies for an SBA loan, is approved, and opts not to take 

the loan, the applicant still may be eligible for funding by FEMA for the 

difference between the SBA loan and eligible costs. 

PNPs providing either critical or non-critical services should submit claims 

to insurance carriers and apply to FEMA for uncovered emergency 

assistance (debris clearance and emergency protective measures). The 

requirement to apply for an SBA loan only applies to PNPs with noncritical services seeking assistance for permanent repair or restoration of 

damaged facilities. 

PNPs with facilities that provide non-critical services (see Table 1 on page 

12) are responsible for taking these actions as soon as possible after a 

disaster has damaged their facilities: 

A.Apply for FEMA assistance. It is important that a PNP apply to 

FEMA immediately after a disaster so that FEMA can inspect the 

disaster damages and prepare a Project Worksheet (PW). The PW 

will be held by FEMA until a loan decision is made by the SBA. 

B. Apply for a disaster loan from the SBA. If an SBA loan is declined 

or does not fully cover the damage eligible under the PA Program, 

the PNP may be eligible for FEMA assistance. In such cases, FEMA 

may not be able to fairly estimate the damages unless the PNP had 

applied to FEMA shortly after the disaster occurred (see A above). 

When a PNP receives a loan determination from the SBA and the loan 

has been declined or will not fully cover the damages, the PNP should 

immediately notify the State and the State should immediately notify 

FEMA in order to reactivate the PNP’s request for Public Assistance. The 

	 Chapter 2: Eligibility 
SBA typically provides FEMA a copy of the loan determination, but the 

PNP must notify FEMA of its intention to seek disaster assistance. 

Figure 1 depicts the application process for PNP applicants. 

Figure 1: PNP Application Process 

PNP.Eligible.Services. 

PNP Education. Educational institutions are defined in terms of primary, 

secondary, and higher education schools. For primary and secondary 

schools, an educational institution is a day or residential school that 

provides primary and secondary education as determined under State 

law. This generally means that the school satisfies State requirements for 

compulsory attendance. For higher education facilities, an educational 

institution is defined as an institution in any State that: 

	 admits as students persons having a high school diploma or 
 

equivalent;



	 is legally authorized to provide education beyond the secondary 

level; 

Chapter 2: Eligibility		 
	 awards a bachelor’s degree or a two-year degree that is acceptable 

as full credit towards a bachelor’s degree; 

	 is a public or PNP institution; and 

	 is accredited by a nationally recognized agency or association 

(as determined by the Secretary of Education). The PA Group 

Supervisor should consult with FEMA’s Office of Chief Counsel 

(OCC) for institutions that are not accredited. 

A higher education institution is also defined as any school that provides 

not less than a one-year training program to prepare students for gainful 

employment in a recognized occupation and that meets the provisions of 

the criteria set forth in the first, second, fourth and fifth bullets above. 

Organizations that offer classes that qualify for credit at an accredited 

institution but do not meet the above defining requirements are not 

eligible applicants. 

Eligible educational facilities include buildings, housing, classrooms plus 

related supplies, equipment, machinery, and utilities of an educational 

institution necessary or appropriate for instructional, administrative, and 

support purposes. They need not be contiguous. Buildings, structures, or 

related items used primarily for religious purposes or instruction are not 

eligible facilities. 

PNP Medical. A medical facility is any hospital, outpatient facility, 

rehabilitation facility, or facility for long-term care, as defined below. A 

medical facility is also any facility similar to those listed below that offers 

diagnosis or treatment of mental or physical injury or disease. Eligible 

components include the administrative and support facilities essential to 

the operation of the medical facility, even if not contiguous. 

Hospitals include general, tuberculosis, and other types of hospitals 

and related facilities, such as laboratories, outpatient departments, 

nursing home facilities, extended care facilities, facilities related 

to programs for home health services, self-care units, and central 

service facilities operated in connection with hospitals. This 

category also includes education or training facilities for health 

profession personnel operated as an integral part of a hospital. A 

medical organization that primarily furnishes home-based care is not 

considered a hospital under this definition. 

Outpatient facilities are defined as facilities located in or apart from 

a hospital for the diagnosis or treatment of patients who are not 

actually admitted to a hospital. Such a facility may be one operated 

	 Chapter 2: Eligibility 
in connection with a hospital, or one in which patient care is under 

the professional supervision of a doctor licensed in the State. 

Rehabilitation facilities are defined as facilities that are operated 

for the purpose of assisting the rehabilitation of disabled persons 

through a program of medical evaluation and services; and for 

psychological, social, or vocational evaluation and services that are 

under competent professional supervision. The major portion of 

these services should be furnished in the facility. 

Facilities for long-term care are defined as facilities providing 

inpatient care for convalescent or chronic disease patients who 

require skilled nursing care and related medical services. Such 

facilities may be in a hospital, operated in connection with a 

hospital, or be in a location where services performed are under the 

professional supervision of a doctor licensed in the State, e.g., a 

nursing home or hospice. 

Medical office buildings that are owned by PNP organizations but 

contain offices leased to for-profit practices of doctors and to other 

ineligible services are subject to special eligibility criteria. If the 

for-profit entities lease more than 50 percent of the building, the 

building is not eligible for Public Assistance. However, if at least 

50 percent of the building is used for medical service activities 

associated with the PNP organization, FEMA will estimate damages 

to the entire facility, not just to the portion occupied by the eligible 

service/ However, such assistance would be pro-rated based on the 

percentage of space occupied by the PNP organization. Contents 

within the ineligible space (that are occupied by the for-profit 

services) would not be eligible for any assistance. See PNP MixedUse Facilities on pages 19–20 for further discussion and examples 

regarding mixed-use facilities. For example: 

A medical office building is damaged during a declared event, 

and the restoration costs are estimated to be $100,000. If 60 

percent of the floor space in the building is used by a PNP 

organization and the other 40 percent is used by a for-profit 

practice, the maximum eligible for the project would be 

$60,000. 

PNP Custodial Care. Custodial care facilities are those buildings, 

structures, or systems, including those essential for administration and 

support buildings, that are used to provide institutional care for persons 

who do not require day-to-day medical care, but do require close 

Chapter 2: Eligibility 
supervision and some physical constraints on their daily activities for their 

self-protection. 

PNP Emergency. Emergency facilities include buildings, structures, 

equipment, or systems used to provide emergency services, such as fire 

protection, ambulances, and rescue, even if not contiguous. Damages to 

their buildings, vehicles, and other equipment used directly in performing 

emergency services, and administrative and support facilities essential to 

the operation of emergency services, are eligible. 

PNP Utility. A utility includes buildings, structures, or systems, even if not 

contiguous, of energy, communication, water supply, sewage collection 

and treatment, or other similar public service facilities. This includes 

PNP irrigation facilities that provide water for essential services of a 

governmental nature. Eligible irrigation facilities include those that provide 

water for fire suppression, generating electricity, and drinking water 

supply. They do not include facilities that provide water for agricultural 

purposes. When an irrigation facility element has mixed purposes (e.g., a 

pump), eligible damages may include the percentage of damages related 

to eligible purposes, i.e., pro-rated damages. 

PNP Other. Essential governmental service facilities not falling into one of 

the categories described above are: 

 museums; 

 zoos; 

 performing arts facilities; 

 community arts centers; 

 community centers; 

 libraries; 

 homeless shelters; 

 rehabilitation facilities; 

 senior citizen centers; 

 shelter workshops; and 

 health and safety services of a governmental nature. 

Their eligible assets need not be contiguous. 

 Chapter 2: Eligibility 
Facilities that provide health and safety services of a governmental nature 

include: 

	 low-income housing; 

	 alcohol and drug treatment centers; 

	 residences and other facilities offering programs for battered 
 

spouses;



	 animal control facilities directly related to public health and safety 

when under contract with a State or local government; 

	 facility offering food programs for the needy; 

	 day care and before/after school centers for children; and 

	 day care centers for those individuals with special needs (such as 

those with Alzheimer’s disease, autism, and muscular dystrophy). 

For additional guidance regarding PNP community center and museum 

eligibility, see FEMA Policy 9521.1, Community Center Eligibility and 

FEMA Policy 9521.2, Private Nonprofit Museum Eligibility. 

PNP.Mixed-use.Facilities 

Facilities with mixed uses must be primarily used for eligible activities. 

“Primarily used,” means that over 50 percent of the facility space or 

over 50 percent of the time is used for eligible activities. FEMA will then 

consider damages to the entire facility, not just to the portion occupied 

by the eligible service. However, assistance would be pro-rated based on 

the percentage of space used for eligible purposes. Contents within the 

ineligible space would not be eligible for any assistance. (See also the 

discussion of “Active Use” on pages 26–27.) 

For example, community centers that are open to the public and 

established and primarily used as gathering places for a variety of social, 

educational enhancement, and community service activities may be 

eligible. However, facilities established or primarily used for religious, 

political, athletic, recreational, vocational, or academic training, artistic, 

conference, or similar activities are not eligible. 

The community center must be established by the organization’s charter 

or by-laws, and used for regularly scheduled activities, rather than simply 

offering space to a community organization. It may be necessary to obtain 

materials such as the organizational charter, articles of incorporation, 

activity logs, and other documents to verify use and eligibility. 

Chapter 2: Eligibility		 
A community center includes the building and associated structures and 

grounds. Each component must be evaluated separately to determine 

eligibility. For example: 

If a community center complex consists of three buildings, two 

that serve as eligible community centers and one that serves as 

an administrative building, only two buildings are eligible for Public 

Assistance, as the administrative building does not provide an 

eligible activity. 

PNP.Ineligible.Services.or.Facilities 

Examples of ineligible services or facilities are: 

 recreational facilities; 

 job counseling or job training facilities; 

 facilities for advocacy groups not directly providing health services; 

 conference facilities; 

 political education; 

 advocacy or lobbying; 

 religious service or education; 

 facilities for social events; 

 parking facilities not in direct support of an eligible facility; 

 roads owned and operated by a Homeowners’ Association or gated 

community; and 

 irrigation unless the facility provides water for fire suppression, 

drinking, or generating electricity. 

Homeowners’.Associations.and.Gated.Communities 

Homeowners’ Associations often prohibit access with gates and other 

security systems. When access is restricted, the services and facilities 

cannot be considered open to the general public and, therefore, are not 

eligible for Public Assistance funding except as described below: 

	 Removal of debris from roadways within the community to create an 

emergency path of travel is eligible if performed or contracted for by 

an eligible local or State level government entity with legal authority 

and applied for by the eligible local or State entity. 

0	 Chapter 2: Eligibility 
	 If the Homeowners’ Association meets the criteria for an eligible 

PNP under the PA Program, it may claim costs for the repair of its 

eligible education, medical, custodial care, emergency, and utility 

(except irrigation) facilities. 

Repairs of roadways, irrigation facilities, and facilities that provide 

governmental services other than those listed above are not eligible. PNP 

recreation facilities are ineligible whether the community is gated or not. 

Other PNPs that offer a mix of eligible and ineligible facilities are subject 

to the same provisions as those described above. 

Community.Development.Districts 

Community Development Districts (CDDs) are special districts authorized 

under State law to finance, plan, establish, acquire, construct/reconstruct, 

extend/enlarge, equip, operate, and maintain systems, facilities, and 

basic infrastructure within their respective jurisdictions. Applicant 

eligibility criteria are: establishment under State law; legal responsibility 

for ownership, maintenance, and operation of an eligible facility; and open 

access to the general public. 

When access is restricted by gates and other security systems, the 

services and facilities cannot be considered public and are not eligible for 

Public Assistance funding except as described below: 

	 Removal of debris from roadways within the community to create an 

emergency path of travel is eligible if performed or contracted for by 

an eligible local or State level government entity with legal authority 

and applied for by the eligible local or State entity. If established for 

the purpose of road maintenance, the CDD may do the work and 

apply as an applicant. 

	 Emergency protective measures for and repair of facilities for 

which the CDD was created. If it was created for water and sewer 

operations or for roads, it may claim assistance for only those 

facilities. Even though the CDD is an eligible applicant, its other 

facilities are ineligible for emergency and permanent work. 

Public.Entities 

Certain “public entities” also may be eligible applicants. Public entities 

(e.g., Port Authority of New York and New Jersey) are those organizations 

that are formed for a public purpose and do not constitute one of 

the other forms of local government specified in the Stafford Act. To 

qualify for assistance, these types of applicants must receive direction 

Chapter 2: Eligibility		 
and a majority of their funding from the State or one or more political 

subdivisions of the State. Application for Public Assistance, as with 

assistance for facilities that serve rural or unincorporated communities 

(see page 23), must be made by a State or a political subdivision of the 

State that will ensure the completion of work at the facility. 

FACILITy 

COST 

WORK 

FACILITY

APPLICANT 

A facility is defined as: 

	 any publicly or PNP-owned building, works, system, or equipment 

(built or manufactured); or 

	 certain improved and maintained natural features. 

A group of buildings is not a facility. 

The improvement of a natural feature should be based on a documented 

design that changes and improves the natural characteristics of the 

feature. Examples of such improvements include soil stabilization 

measures (such as terracing) and channel realignment. The constructed 

improvement must result in a measurable difference in performance over 

the unimproved natural feature. It is then the improvement itself that 

must be maintained for the natural feature to be considered a facility. 

The maintenance of this improvement must have been done on a regular 

schedule and to standards to ensure that the improvement performed as 

designed. 

Certain improved and maintained natural features of publicly owned golf 

courses [e.g., sand traps, drainage, and greens (without grass)] may be 

considered facilities. 

Examples of improvements that do not qualify as eligible facilities include 

agricultural lands and planted trees and shrubs. 

	 Chapter 2: Eligibility 
Legal.Responsibility 

An eligible applicant must be legally responsible for the repair of the 

damaged facility or the performance of eligible emergency services at 

the time of the disaster. FEMA may approve a post-disaster transfer of 

an eligible facility from one eligible applicant to another eligible applicant 

in extraordinary situations. If an eligible applicant did not have legal 

responsibility, the facility is ineligible for assistance. 

Ownership of a facility is generally sufficient to establish responsibility. If 

an applicant owns but leases out an eligible facility, repairs to the facility 

are eligible, unless the lease states that the lessee is responsible for repair 

of the type of damage sustained or maintaining insurance for repairs. If 

the applicant is the lessee (tenant), repairs to that facility are not eligible 

unless the lease specifically states that the lessee is responsible for the 

repairs. Facilities owned by Federal agencies typically are not eligible for 

Public Assistance. Some Federal agencies, however, may have turned 

responsibility for operation and maintenance of facilities over to local 

agencies so that the local agencies have the legal/financial responsibility 

for operation and maintenance. These may be eligible facilities. Examples 

include roads constructed by the U.S. Forest Service and the Bureau of 

Indian Affairs, and reservoirs and water delivery systems constructed by 

the U.S. Bureau of Reclamation. 

Often, citizens in rural or unincorporated communities will band together 

for the purpose of maintaining common facilities through the formation 

of a legal entity. Because such facilities serve the community, they may 

be eligible for Public Assistance, even though they are not owned by an 

eligible applicant, if a State or political subdivision of the State submits 

the request for assistance and assumes responsibility for completion of 

the work. The damaged facility must be included within the purpose for 

which the organization was formed. The purpose of the facility must have 

been for use by the general public and not for private or commercial uses. 

The facilities must be owned by a legal entity, not just an individual, in 

order to be eligible. 

See also “Legal Responsibility” under discussion of “Work” on pages 

30–31. 

Other.Federal.Agencies 

For certain types of facilities, other Federal agencies have authority to 

provide disaster assistance. Public assistance is not available for the 

permanent repair of such facilities and is limited to emergency work. This 

is true even when the responsible agency lacks funds. When an applicant 

Chapter 2: Eligibility 
requests Public Assistance for a facility whose repair FEMA considers 

to be within the authority of another Federal agency, FEMA will ask the 

specific Federal agency with responsibility to review the request and 

advise FEMA whether the work would be eligible under that agency’s 

authority. If the work falls outside the statutory authority of that agency, 

FEMA may consider providing assistance for the work under the Stafford 

Act. 

Since some agencies must perform work or let a contract for the work 

themselves (and are not authorized to reimburse an applicant), an 

applicant may find that it cannot be reimbursed for the work it did. Denial 

of payment by itself is not a basis for requesting Public Assistance from 

FEMA. However, if there is an emergency need, FEMA may consider 

assistance for emergency work that has been done or paid for by the 

applicant. Permanent work is not eligible for Public Assistance in these 

circumstances. 

Public Assistance funding cannot be used for the non-Federal cost 

share of other Federal agency funding. In addition, when another Federal 

agency has a minimum threshold for work, FEMA will not fund the amount 

under the threshold. 

Federal agencies that often have authority to provide disaster assistance 

are discussed below. 

U.S. Army Corps of Engineers (USACE). The USACE has continuing 

authority to conduct emergency repair and permanent restoration of 

damaged flood control works. Flood control works are those facilities 

constructed for the purpose of eliminating or reducing the threat of 

flooding. Examples include: 

 levees; 

 floodwalls; 

 flood control channels; and 

 dams designed for flood control. 

Because permanent restoration of these facilities falls under the authority 

of the USACE, Public Assistance funding is not available. This restriction 

applies even if USACE funding is denied. However, Public Assistance 

funding may be provided for emergency measures to include debris 

removal and flood fighting. 

Emergency repair may be eligible if, at the time of the disaster, the facility 

is not enrolled in the USACE program and the facility has not previously 

 Chapter 2: Eligibility 
received FEMA assistance for emergency repairs. A condition of funding 

will be that the applicant enrolls the subject facility in the program; if it 

does not enroll, funding for the repair and restoration of the facility will 

not be provided in subsequent disasters. If the facility is already enrolled 

in the USACE program at the time of the disaster, or has received 

emergency repair assistance from FEMA previously, Public Assistance is 

not available for emergency repair. 

The USACE also has the authority to construct and repair facilities that 

protect the shorelines of the United States. The USACE repair authority 

extends only to federally constructed shoreline works. It does not extend 

to locally owned facilities. Therefore, federally constructed facilities are 

not eligible for Public Assistance funding, but locally owned shoreline 

works may be eligible. 

See FEMA Policy 9524.3 for discussion of levees and flood control works. 

Department of Agriculture – Natural Resources Conservation Service 

(NRCS). Under the Emergency Watershed Protection Program, the 

NRCS has authority for the repair of flood control works that is similar 

to that of the USACE. Because of these overlapping authorities, the two 

agencies have a memorandum of understanding that provides guidance 

in dividing responsibilities when a disaster occurs. The NRCS authority 

applies to drainage basins of 400 square miles or less. (The USACE is 

responsible for flood works within a larger drainage basin.) The NRCS 

also has authority to remove debris from stream channels, road culverts, 

and bridges. Cost share requirements apply. This overlap with the FEMA 

program may result in FEMA’s deferring to the NRCS. 

Department of the Interior – Bureau of Indian Affairs (BIA). The BIA 

provides resources, such as road maintenance grants, that may help 

Tribal recovery. See also the Federal Highway Administration discussion 

below. 

Federal Highway Administration (FHWA). The FHWA administers the 

Emergency Relief Program to assist State and local governments with the 

repair of Federal-Aid roads and bridges damaged during disasters. Funds 

from this program are used for facilities on routes identified by the FHWA. 

They include most public roads except those functionally classified as 

rural or minor collector routes. Rural or minor collection routes are eligible 

for FEMA assistance. 

The Emergency Relief Program is the responsibility of the Secretary 

of Transportation and is available independently of major disaster and 

emergency declarations made by the President. Emergency Relief funds 

Chapter 2: Eligibility 
are used for both emergency and permanent work and are granted on the 

basis of inspections performed by FHWA and State highway department 

personnel. Eligible Emergency work includes debris removal even when 

there is no physical damage to the roads. 

Because restoration of certain facilities falls under the authority of 

FHWA, the Stafford Act specifically excludes permanent restoration 

of them under the PA Program. As a result, Public Assistance for the 

permanent repair of these facilities is not available, even if the Emergency 

Relief Program is not available. Therefore, there will be times when no 

assistance is available for the permanent repair of some facilities. 

FEMA may assist with limited emergency repairs and debris clearance 

on a case-by-case basis and only for those cases in which there is an 

immediate threat to the public health and safety. 

There are certain roads on Indian reservations that have been designated 

by the Bureau of Indian Affairs as falling under the authority of the FHWA. 

These roads are subject to the restrictions discussed above. It may be 

necessary to consult the Bureau of Indian Affairs to determine repair 

responsibility of damaged roads on reservations. 

FHWA is also discussed on page 68 under “Category A – Debris 

Removal” and page 80 under “Category C – Roads and Bridges.” 

Department of Housing and Urban Development. When a Public 

Housing Authority (PHA) is determined to be an eligible applicant, disaster 

assistance may be available from both FEMA and the Department of 

Housing and Urban Development (HUD). FEMA will provide assistance 

for emergency work including debris removal, demolition of unsafe 

structures, and any actions necessary to reduce an immediate threat 

to life, property, and public health and safety. In most cases, HUD will 

provide assistance for permanent restoration costs as authorized by 

the United States Housing Act of 1937. PHAs that do not qualify for 

assistance under the Housing Act of 1937 may apply directly to FEMA for 

permanent restoration work. [See FEMA Policy 9523.7, Public Housing 

Authorities (PHAs).] 

Active.use 

A facility must be in active use at the time of the disaster. Inactive facilities 

are not eligible. Exceptions to this requirement occur when: 

	 the facility was only temporarily inoperative for repairs or 
 

remodeling;
 


	 Chapter 2: Eligibility 
	 the facility was unoccupied for a short time between tenants; 

	 active use by the applicant was firmly established in an approved 

budget; or 

	 the applicant can clearly demonstrate to FEMA that there was intent 

to begin use within a reasonable amount of time. 

This requirement is also applied to a facility that is partially occupied and 

partially inactive at the time of a disaster. Inactive portions would not be 

eligible unless the exceptions noted above apply. In all cases, the facility 

in question must have been eligible for assistance during the time it was 

in use. When the eligible repairs would benefit a non-active area, the 

assistance will be pro-rated according to the percentage of the facility 

that was in active use. 

For PNP facilities, over 50 percent of the facility had to be in active use 

for an eligible purpose at the time of the disaster in order for the facility to 

be eligible. See the PNP Mixed-Use Facilities section on pages 19–20 for 

further discussion and examples regarding pro-rating assistance for these 

circumstances. 

Alternate.use 

If a facility is being used for purposes other than those for which it was 

originally designed, the eligible cost of restoration for that facility is limited 

to: 

	 restoring the facility to its original design and capacity; or 

	 restoring the facility to the immediate pre-disaster alternate 
 

purpose, whichever costs less.



For example: 

If an office building is being used as a storage facility at the time of a 

disaster, only those repairs that may be needed to restore a storage 

facility are eligible. Any special lighting or wall and floor finishes that 

are typical of an office building would not be necessary for a storage 

facility and, therefore, would not be eligible. 

In the case of PNP facilities, the primary purpose for the establishment of 

the facility is important for the eligibility determination. For example: 

A facility established as a church (an ineligible purpose) might be used on 

occasion as a homeless shelter, while its primary purpose remained as a 

church. It would be ineligible based on the primary or majority use. 

Chapter 2: Eligibility		 
Facilities.under.Construction.or.Scheduled.for.Replacement 

Typically, a facility under construction is the responsibility of the 

contractor until the owner has accepted the work as complete. Because a 

contractor is not an eligible applicant, the portion of the facility under the 

contractor’s responsibility is not eligible for Public Assistance. In the event 

of damage to a facility under construction, FEMA must determine if the 

applicant is responsible for repairs before granting assistance. Repairs 

are eligible if the contract under which the work is being performed 

places responsibility for damage on the applicant during the construction 

period. Repairs are also eligible if, prior to the disaster, the applicant 

had accepted the work and had, therefore, assumed responsibility. If the 

applicant had accepted responsibility for a portion of the site, repairs to 

only that portion of the site would be eligible. 

When a facility or portion of that facility is under contract for repair or 

replacement using non-Federal funds, damage to the portion of the 

facility under contract is eligible, but FEMA will subtract the contract 

amount from the cost of the work. This restriction in funding applies 

even if the work has not started at the time of the disaster. However, if an 

applicant had included a project in a budget but had not yet let a contract 

at the time of the disaster, that project is eligible. 

If a facility has been scheduled for replacement using Federal funds 

and work is scheduled to begin within 12 months of the time the 

disaster struck, the facility is not eligible for funding. An example of a 

continuing program of this nature is the FHWA Bridge Replacement and 

Rehabilitation Program. The program provides for State or locally owned 

bridges to be replaced with FHWA assistance. The State sets priorities for 

this program and determines which bridges will be replaced. If a disaster 

damages or destroys a bridge scheduled for replacement, the State 

should be able to reschedule so that the damaged bridge can be replaced 

immediately rather than later in the year. 

 Chapter 2: Eligibility 
WORk 

COST 

WORK

FACILITY 

APPLICANT 

There are three general types of work that may be eligible, with different 

criteria for each: 

 debris removal; 

 emergency protective measures; and 

 permanent restoration. 

Debris removal and emergency protective measures are considered 

“emergency work.” Permanent work includes restoring the facility back to 

its pre-disaster design, function, and capacity, including any codes and 

standards applicable to the approved work. Emergency and permanent 

work are discussed in the latter part of this chapter. Three general 

criteria apply to all types of work and to all applicants. These criteria are 

discussed below. 

Direct Result. Work must be required as a direct result of the declared 

major disaster or emergency. The declaration by the President will 

designate the event, such as a severe storm, tornado, or flood, for which 

the declaration is being made. Damage that results from a cause other 

than the designated event, such as a pre-disaster damaging event, 

post-disaster damaging event, or work to correct inadequacies that 

existed prior to the disaster, is not eligible. Damage caused during the 

performance of eligible work may be eligible. 

FEMA establishes an incident period after consultation with the GAR. 

The incident period is the time span during which the disaster-causing 

incident occurs. This period varies in length, depending on the type of 

incident. For example: 

The incident period for a flood event could be several weeks 

because the water has to crest and recede, while the incident period 

for a tornado would be one day because the damage occurs in a 

matter of minutes. 

Chapter 2: Eligibility 
Damage that occurs during the incident period, or damage that is the 

direct result of events that occurred during the incident period, is eligible. 

Protective measures and other preparation activities performed within a 

reasonable and justified time in advance of the event also may be eligible. 

For example, if a flood crest on a major river is forecast a few weeks in 

advance, sandbagging and construction of temporary levees to protect 

the community may be eligible if a disaster is later declared. 

Protective measures to alleviate or lessen threats caused by the event 

may be performed after the incident period. Damage that occurs after the 

close of an incident period that can be tied directly to the declared event 

also may be eligible. Such damage may occur even a few months after 

the event and still be considered. For example: 

A hillside becomes saturated during a declared rain or flood event, 

but no movement of or damage to the slope is observed during 

the incident period. After the incident period closes, the slope fails 

due to loss of strength caused by the saturated condition, causing 

damage to adjacent eligible facilities. Resulting damage may 

be eligible for Public Assistance. In some cases, a geotechnical 

investigation may be necessary. 

Designated Disaster Area. Eligible work must be located within a 

designated disaster area. When a declaration of a major disaster is made 

for a State, FEMA will designate those counties of the State that are 

eligible for Public Assistance. Except for unusual situations, counties or 

independent cities are designated. Declarations for Tribal lands may be 

considered independent from surrounding communities, such that a Tribal 

land may receive a declaration even if the adjacent or surrounding county 

or city does not. 

If the damaged facility is located within the designated area but the owner 

of the facility is from an undesignated area, the damaged facility may be 

eligible and that owner may apply for assistance. However, if an owner 

from within the designated area has a damaged facility located outside 

the designated area, that facility is not eligible, even if damaged by the 

same event. 

The types of assistance available in the designated disaster area may 

vary among counties. Some counties may be eligible for reimbursement 

for both emergency and permanent work while others may be eligible to 

receive funding for emergency work only. 

Legal Responsibility. As with eligible facilities (see page 23), work must 

be the legal responsibility of the applicant at the time of the disaster to 

0 Chapter 2: Eligibility 
be eligible. Ownership of a facility is generally sufficient to establish the 

responsibility for work to repair the facility. However, if an applicant leases 

a facility as a tenant, repairs to that facility are not eligible unless the 

lease states that the lessee is responsible to insure for and/or make minor 

and/or extraordinary repairs. A copy of the lease agreement should be 

provided to FEMA to determine responsibility. The lease usually contains 

general repair and maintenance language; however, responsibility for 

damage resulting from a disaster may not be established. In the absence 

of any mention in the lease, the owner of the facility will be assumed 

to be responsible for the repair. (See also “Legal Responsibility” under 

discussion of “Facility” on page 23.) 

Negligence 

Damage caused by negligence on the part of the applicant after the event 

is not eligible. This issue often arises when an applicant fails to take 

prudent measures to protect a facility from further damage in the wake of 

a disaster. For example: 

The roof of a library is damaged during a hurricane, but the 

applicant does not install tarps on the roof to protect the building’s 

interior for several weeks. Repeated rain showers during that time 

destroy the exposed books and furnishings. The damage caused 

by the rains would not be eligible unless the applicant could 

document and justify why emergency protective measures were not 

implemented in a timely manner. 

Damage caused by an applicant’s actions, if unavoidable, may not 

necessarily be negligence, especially in cases where the damage occurs 

during emergency response efforts. For example: 

While using heavy equipment to build a temporary berm for 

emergency flood protection, an applicant damages the roads that 

provide access to the site. Even though the applicant caused the 

damage, the repairs to the roads back to their original condition may 

be eligible as Category B – Emergency Work. For Federal-Aid roads, 

only emergency repairs would be eligible. For local roads, repairs to 

pre-disaster conditions would be eligible. 

In instances where ground is disturbed due to movement of heavy 

equipment performing eligible work, such as that described above 

or when repairing underground utilities within landscaped areas, 

replacement of damaged trees, shrubs or other ground cover is not 

eligible. See page 87 for further discussion of “Trees and Ground 

Cover.” 

Chapter 2: Eligibility 
Also note that damage caused by inadequate design is not necessarily 

considered negligence. For example: 

If an undersized culvert contributes to damage to a road, the repair 

of the road still may be eligible. 

Mold 

Extensive disaster-related damage from external sources or from broken 

water pipes may cause eligible facilities to become inundated or exposed 

to wet and humid conditions for several days following a disaster. The 

disruption of electrical power may inhibit the use of water-extraction, 

pumping, and drying electrical equipment, and the limited availability of 

private repair and restoration contractors may delay cleanup activities. 

If this happens, water saturation may cause growth and propagation of 

mold on structures and interior contents, causing health-related problems 

and increasing the cost of repairs. 

Mold remediation may be eligible under the PA Program, either as an 

emergency protective measure in the immediate aftermath of a disaster, 

or as part of the permanent repair work. For mold remediation to be 

eligible, the mold must not be a result of poor facility maintenance or 

failure to take protective measures in a reasonable time after the event. 

The following information guides FEMA’s decision of whether the mold 

growth is a direct result of the disaster or pre-disaster in origin: 

	 Windows and exterior vents are susceptible to water infiltration if not 

properly sealed. Evidence of poor seals may indicate pre-disaster 

leaks, which could have caused mold growth. 

	 Poor surface water drainage flow around the structure could result 

in a propensity for water to accumulate around the building. The 

evidence of standing water against an exterior wall may indicate that 

the facility had a history of water intrusion, which could have caused 

the mold growth. 

	 The presence of rusted rain gutters or drains and vegetative growth 

in gutters is an indicator of poor building maintenance practices. 

Poorly maintained drain gutters could cause localized flooding at 

the base of the structures, water intrusion, and subsequent mold 

growth that could have existed before the disaster event. Likewise, 

the absence of rain gutters could have caused the same effects. 

	 If ceiling tiles have evidence of leakage, water intrusion may have 

occurred before the disaster event and caused mold growth. 

	 Chapter 2: Eligibility 
See FEMA Fact Sheet 9580.100, Mold Remediation. 

Maintenance 

To meet the basic rule of eligibility, an item of work must be required as 

a direct result of the declared disaster. Normal maintenance items that 

existed prior to the disaster, such as pothole repair, routine pulling of 

ditches, and minor gravel replacement; and deferred maintenance, such 

as replacing rotted timber, and repairing deteriorated asphalt and leaking 

roofs, are not eligible because they do not meet the criterion of being 

disaster-related. For example: 

If a culvert’s annual maintenance report indicates that the culvert 

was full of debris (tree limbs and sediment) before the disaster, 

the work to remove the obstructions from the culvert would not be 

eligible. 

For facilities that require routine maintenance to maintain their designed 

function, such as culverts, roads, bridges and dams, it may be possible 

to review pre-disaster maintenance or inspection reports to verify the predisaster condition and to assess eligible disaster damage. 

In instances where damage can be attributed to the disaster instead of 

lack of maintenance, repairs are eligible. It is the applicant’s responsibility 

to show that the damage is disaster-related. Funding of repairs may 

be made contingent upon the repair of pre-disaster damage with the 

applicant’s own funds. For example: 

FEMA may determine that repairs to a damaged bridge deck are 

eligible. However, the deck cannot be repaired unless the applicant 

replaces rotting timbers that support the deck. 

Codes.and.Standards 

When a facility must be repaired or replaced, FEMA may pay for upgrades 

that are necessary to meet specific requirements of reasonable current 

codes and standards. This situation typically occurs when older facilities 

must be repaired in accordance with codes and standards that were 

adopted after the original construction. These codes and standards may 

include Federal requirements, such as those mandated by EO 12699 

(seismic requirements for new buildings) or the Americans with Disabilities 

Act (ADA), as discussed later in this section. However, this does not mean 

that Public Assistance grant funds will be provided to bring a facility into 

full compliance with current codes and standards. For example, FEMA 

will not fund construction of increased capacity because such work is 

Chapter 2: Eligibility 
beyond that necessary to restore the pre-disaster design capacity of the 

facility, except as noted for Category E (pages 83–85). Bringing facilities 

in violation of code or standard (at the time of the disaster) up to code 

is not an eligible program cost. The determination of which codes and 

standards are applicable to the work is very important in determining 

eligible work. Often codes are for new construction and not for repairs. 

For an upgrade to be eligible, the code or standard requiring the upgrade 

must meet the five criteria listed below. 

1. The code or standard must apply to the repair work or restoration 

required. If a facility must be replaced, an upgrade would apply 

throughout the facility. However, if a facility needs repair work only, 

upgrades would apply to the damaged elements only. For example: 

FEMA would pay to install a code-required new sprinkler system 

throughout a multi-story building if that building were being 

replaced. However, FEMA would not pay for installing such a system 

if the eligible work involved repair only, unless it was required based 

on the amount of repair. FEMA would have to determine that the 

requirement is reasonable for the type and extent of the repair. 

2. The code or standard must be appropriate to the pre-disaster use 

of the facility. For example, if a former classroom facility that was 

being used by a school district as a warehouse before the disaster 

is destroyed, standards applicable to the design and construction 

of classrooms do not apply; only those for warehouses would be 

eligible. 

3. The code or standard must be reasonable, in writing, and formally 

adopted, and implemented prior to the disaster declaration date or 

be a legal Federal requirement. The appropriate legislative authority 

within the applicable jurisdiction must have taken all requisite 

actions to implement the code or standard. The effective date of 

the code provision must be before the declaration date. It is the 

responsibility of FEMA to determine the reasonableness of a code 

or standard. Federal requirements are subject to the same criteria as 

local or State standards. 

4. The code or standard must apply uniformly to all facilities of the 

type being repaired within the applicant’s jurisdiction. The code or 

standard cannot allow selective application; it cannot be subject 

to discretionary enforcement by public officials; it must be applied 

regardless of the source of funding for the upgrade work; and it 

cannot be applied selectively based on the availability of funds. 

 Chapter 2: Eligibility 
5. The code or standard must have been enforced during the time that 

it was in effect. FEMA may require documentation showing prior 

application of the standard. 

See also “Category E – Buildings and Equipment” on pages 83–85. 

EO 12699. EO 12699, Seismic Safety of Federal and Federally Assisted 

or Regulated New Building Construction, requires that all eligible 

construction of new buildings under the PA Program use appropriate 

seismic design and construction standards and practices. This is true 

regardless of the cause of the declared disaster and even if the applicant 

does not have applicable local or State seismic codes. 

If a damaged building is eligible for replacement, the costs of meeting 

required and reasonable seismic codes are also eligible. (See FEMA 

Policy 9527.1, Seismic Safety – New Construction.) However, for new 

construction of an alternate or improved project, any additional costs to 

satisfy appropriate seismic requirements beyond those that would have 

been required, if any, for the original approved project are not eligible; yet 

the measures necessary to satisfy these requirements are required as a 

condition of the grant. 

The Americans with Disabilities Act. The ADA applies to restoration 

of damaged facilities under the Stafford Act. The ADA requires that any 

building or facility that is accessible to the public or any residence or 

workplace be accessible to and useable by disabled persons. 

When FEMA provides assistance to replace a damaged facility, the facility 

must meet applicable access requirements. FEMA will provide funds 

to comply with ADA when replacing a facility, whether or not the facility 

met compliance prior to the disaster. However, a new facility funded as 

an alternate or improved project is limited to the eligible funding for the 

original facility even when the new facility has to comply with additional 

ADA requirements. Applicants notified of an ADA violation prior to the 

disaster and required to bring the facility into compliance are not eligible 

to receive FEMA funding to comply with accessibility requirements related 

to that violation. 

For buildings eligible for repair, FEMA will fund the cost of ADA 

compliance requirements to the damaged elements of the facility. 

[See FEMA Policy 9525.5, Americans with Disabilities Act (ADA) 

Access Requirements.] In addition, FEMA may fund ADA compliance 

requirements for non-damaged elements associated with a path of travel 

for a primary function area that is damaged. A primary function area is 

where a major activity occurs for which the facility is intended, such as 

Chapter 2: Eligibility 
the dining area of a cafeteria. For primary function areas, FEMA will fund 

ADA compliance requirements for providing an accessible travel path and 

service facilities up to 20 percent of the total cost of repair to the primary 

function area. 

Non-damaged areas of a damaged facility are not required to meet ADA 

requirements unless they are part of the travel path or service facility to a 

damaged primary function area, as described above. 

Repair.vs..Replacement.(50.Percent.Rule) 

FEMA will restore an eligible facility to its pre-disaster design. Restoration 

is divided into two categories: repair or replacement. [See FEMA 

Policy 9524.4, Eligibility of Facilities for Replacement (the 50% Rule).] 

The following calculation, known as the “50 Percent Rule,” is used to 

determine whether replacement is eligible: 

IF Repair Cost < 50% THEN only the repair cost is eligible

 Replacement Cost 

IF Repair Cost > 50% THEN the replacement cost is eligible

 Replacement Cost 

Repair Cost includes only those repairs, including non-emergency mold 

remediation, associated with the damaged components and the codes 

and standards that apply to the repair of the damaged components. 

This cost does not include upgrades of other components triggered by 

codes and standards, design, demolition of the entire facility, site work, 

or applicable project management costs, even though such costs may be 

eligible for Public Assistance. The cost of contents and hazard mitigation 

measures is not included in the repair cost. 

Replacement Cost includes the costs for all work necessary to provide 

a new facility of the same size or design capacity and function as the 

damaged facility in accordance with current codes and standards. The 

replacement cost does not include demolition, site work, and applicable 

project management costs, even though these costs may be eligible for 

Public Assistance. 

Note that the design capacity of the facility, either as originally designed 

or as modified by later design, governs the extent of eligible work when 

a facility is being replaced. If a facility was being used in excess of its 

design capacity, that factor does not increase the eligible capacity of a 

replacement facility. Note also that the 50 Percent Rule applies to the 

overall facility. It is not to be used to calculate replacement of the facility’s 

 Chapter 2: Eligibility 
individual components, e.g., equipment, a roof, a wall, or mechanical 

system. Consult CEF guidance when using the CEF to calculate the 50% 

threshold. Multiple buildings on a campus are analyzed individually. 

The following table illustrates eligible cost determinations. 

Table 2: Repair/Replacement 

Conditions Eligible.Costs 

1. The repair cost* does not exceed 50% Repair of eligible damage only 

of the replacement cost** 

and 

no upgrades are triggered 

2. The repair cost* does not exceed 50% Repair of eligible damage plus 

of the replacement cost** upgrade cost. 

and 

whole building upgrade is triggered 

and 

the total of the two items is greater 

than 50% but less than 100% of 

replacement cost** 

3. The repair cost* does not exceed 50% Repair of eligible damage plus 

of the replacement cost** upgrade cost, but total eligible 

and costs capped at the replacement 

whole building upgrade is triggered cost. 

and 

the total of the two items is 

estimated to be greater than 100% of 

replacement cost** 

4. The repair cost* exceeds 50% of The building’s full replacement 

replacement cost** cost (but no more than its 

replacement cost) is eligible. 

NOTES: 

*		 “Repair cost” in these examples includes repair of damaged components only, as 

described on page 36. 

** “Replacement cost” is replacement of the same size or designed capacity and function 

of the building to all applicable codes, as described on page 36. 

In most cases, the criteria outlined in this table are adequate for repair 

and replacement projects. However, particular attention should be paid 

to the repair of damaged historic buildings. Such repair could trigger a 

requirement to upgrade a structure to new construction standards, while 

at the same time maintaining historic features. The total restoration cost, 

Chapter 2: Eligibility		 
in this situation, may exceed replacement cost, as in condition 3 in the 

table, but the excess over the replacement cost is not eligible. 

The regulations contain an exception to the funding limitation described 

in Table 2 that applies only when a facility is eligible for listing or listed in 

the National Register of Historic Places. If an applicable standard requires 

a facility to be restored in a certain manner and disallows other options, 

such as leaving the facility unrestored, the eligible cost to complete the 

restoration may exceed the replacement cost. See 44 CFR 206.226(f)(3). 

Temporary.Relocation 

When buildings that house essential services, such as school classrooms, 

police and fire department facilities, government offices, and certain 

PNP functions, such as critical health facilities, are damaged extensively 

enough that they cannot be used until repairs are made, temporary 

relocation of the essential services may be necessary. Other PNP facilities 

may be eligible if they are directly related to public health and safety and 

under contract with State and local government to provide the health 

and safety functions. Temporary relocation may also be necessary in 

instances where such buildings are undamaged but inaccessible due to 

disaster-related conditions in the immediate vicinity. The criticality of the 

service and safety of the facility are the factors used to determine the 

need for temporary relocation. Temporary relocation is permitted as an 

emergency protective measure under Section 403 of the Stafford Act. 

The costs associated with temporary relocation are eligible but are 

subject to cost comparisons of alternate methods of providing facilities. 

Such costs include the rental or purchase of temporary space and 

equipment. The decision whether to rent or purchase space and 

equipment must be based on cost effectiveness. Utilities, maintenance, 

and operating costs of the temporary facility are not eligible. However, 

applicants who perform essential services in leased facilities who have 

had to temporarily relocate to other leased facilities as a result of the 

disaster may be eligible for a reasonable rental cost differential if the 

temporary facilities are more costly than the pre-disaster facilities. 

The moving costs, as well as necessary alterations at the new location, 

might be eligible if the continued operation of the facility is necessary to 

eliminate immediate threats to life or property. 

The length of time that rental costs are eligible is based on the time 

estimated to complete repair work that will bring the damaged facility to 

pre-disaster design, not including time for completion of improvements. 

Normally, the period of time for which temporary relocation assistance 

 Chapter 2: Eligibility 
may be provided is 6 months, based on the regulatory time limitation for 

the completion of emergency work. If no additional funds are involved, 

the GAR may approve a time extension if the GAR is satisfied that 

extenuating circumstances beyond the control of the applicant prevented 

the completion of the work within the initial time limit and that the 

applicant has provided the design proposal, a schematic, and a revised 

timeline for the permanent project. If additional funds are required, the 

GAR may recommend to FEMA a time extension based on extenuating 

circumstances beyond the control of the applicant that prevented the 

completion of the work within the initial time limit and the provision of the 

design proposal, a schematic, and a revised timeline for the permanent 

project. An extension requiring additional funding may not be granted 

without a design proposal, schematic, and timeline for the permanent 

work. Extensions beyond a total temporary relocation period of 12 

months are extremely rare, but may be approved by the FEMA Regional 

Administrator if construction began within the 12-month period. (See 

FEMA Policy 9523.3, Provision of Temporary Relocation Facilities.) 

Permanent.Relocation 

An applicable Federal, State, or local standard, such as a floodplain 

management regulation, may require that a damaged facility be relocated 

away from a hazardous area. Such relocations also may be required by 

FEMA if the facility is subject to repetitive heavy damage because of its 

location. In either case, FEMA will provide assistance for the relocation 

project only if it is cost effective and not barred by any other FEMA 

regulations or policies. Eligible costs of a relocation project include: 

	 demolition and removal of the old facility; 

	 land acquisition; 

	 construction of the new facility, including compliance with 
 

environmental requirements; and
 


	 construction of ancillary facilities, such as roads and utilities. 

To determine cost effectiveness, benefits are measured in terms of 

the damage prevented by moving away from the hazardous location. 

Generally, the project will only be cost effective if the damage is severe 

enough that the facility qualifies for replacement. 

When a relocation to outside a hazard area is approved, no future 

Public Assistance funding for the repair or replacement of any facility 

subsequently built at the old site will be approved. An exception is given 

Chapter 2: Eligibility		 
for facilities or structures that facilitate an open space use. Examples 

include minimal facilities for a park, such as benches, tables, restrooms, 

and minor gravel roads. When such a restriction is placed on a site, the 

applicant will be notified. 

If relocation is not desired, feasible or cost effective, and restoration in 

the original location is not a practicable alternative because of floodplain, 

environmental, historic preservation, or other Special Considerations, the 

applicant may request that the funding be applied to an alternate project. 

Alternate projects are discussed in more detail on pages 111–112 of this 

guide. 

COST



COST

WORK
 


FACILITY
 


APPLICANT



Generally, costs that can be directly tied to the performance of eligible 

work are eligible. 

Such costs must be: 

	 reasonable and necessary to accomplish the work; 

	 compliant with Federal, State, and local requirements for 
 

competitive procurement (including 44 CFR Part 13); and
 


	 reduced by all applicable credits, such as anticipated insurance 

proceeds and salvage values. 

A cost is reasonable if, in its nature and amount, it does not exceed that 

which would be incurred by a prudent person under the circumstances 

prevailing at the time the decision was made to incur the cost. In other 

words, a reasonable cost is a cost that is both fair and equitable for the 

type of work being performed. For example: 

If the going rental rate for a backhoe is $25/hour, it would not be 

reasonable to pay $50/hour for a backhoe. 

0	 Chapter 2: Eligibility 
In the immediate aftermath of a disaster, shortages in equipment, 

materials, and labor may affect costs. Costs also may stabilize in the 

months after the disaster. These variations should be considered when 

establishing reasonable costs of repair. 

Consideration should also be given to whether the cost is of a type 

generally recognized as ordinary and necessary for the subject facility and 

type of work and whether the individuals concerned acted with prudence 

in conducting the work. In addition, normal procedures must not be 

altered because of the potential for reimbursement from Federal funds. 

Reasonable costs can be established through: 

	 the use of historical documentation for similar work; 

	 average costs for similar work in the area; 

	 published unit costs from national cost estimating databases; and 

	 FEMA cost codes, equipment rates, and engineering and design 

services curves. 

FEMA staff make the final determination on the reasonableness of a cost. 

In performing work, applicants must adhere to all Federal, State, and local 

procurement requirements. 

An applicant may not receive funding from two sources for the same 

item of work. The Stafford Act prohibits such a duplication of benefits. 

(See FEMA Policy 9525.3, Duplication of Benefits.) If FEMA funds are 

duplicated by another source, the FEMA funds must be returned. If 

another Federal agency has specific authority to fund certain work, then 

FEMA generally cannot provide funds for that project. A State disaster 

assistance program is not considered a duplication of Federal funding. 

A duplication of benefits most commonly occurs with insurance 

settlements. If a damaged facility is insured, FEMA is required to reduce 

the amount of the grant by any insurance proceeds that the applicant 

anticipates or receives for the insured facility. If the applicant has not 

completed negotiations with the insurer at the time the Project Worksheet 

is developed, FEMA will estimate the anticipated proceeds and this value 

will be used for the reduction. See Chapter 4 for additional discussion 

regarding insurance requirements. 

Grants and cash donations received from non-Federal sources 

designated for the same purpose as Public Assistance funds are 

considered a duplication of benefits. However, such grants and 

donations, including disaster relief funds provided by the State, may be 

Chapter 2: Eligibility		 
applied towards the non-Federal cost share and are not considered a 

duplication of benefits. Grants and cash donations, including disaster 

relief funds provided by the State, that are received for unspecified 

purposes or ineligible work also do not constitute a duplication of benefits 

and can be applied to the non-Federal cost share. 

Applicant “rainy day” funds are not considered a duplication of benefits. 

The eligible cost criteria referenced above apply to all direct costs, 

including labor, materials, equipment, and contracts awarded for the 

performance of eligible work. This also includes any additional costs for 

compliance with codes and standards that meet FEMA’s eligibility criteria, 

as well as any costs necessary to obtain permits. Compliance with 

environmental and historic preservation laws, regulations, and EOs may 

constitute eligible costs. (See Chapter 4, Special Considerations.) 

Labor 

Force account labor is defined as labor performed by the applicant’s 

employees, rather than by a contractor. Force account labor costs 

associated with the conduct of eligible work may be claimed at an hourly 

rate. Labor rates include actual wages paid plus fringe benefits paid or 

credited to personnel. Different eligibility criteria apply to labor rates for 

different kinds of employees and work, as described below. 

Permanent Employees. For debris removal and emergency protective 

measures, only overtime labor is eligible, regardless of normal duties or 

assignments. (See FEMA Policy 9525.7, Labor Costs – Emergency Work.) 

For permanent work, both regular time and overtime are eligible. Regular 

time of permanent employees who are funded from an external source 

(e.g., by a grant from a Federal agency, statutorily dedicated funds, or rate 

payers) to work on specific non-disaster tasks is an eligible cost when 

the employee is performing emergency work. Overtime or compensatory 

time for “exempt” employees is not eligible, except where written policies 

allow for it, and cannot be contingent upon Federal funding. The costs of 

salaries and benefits for individuals sent home or told not to report due 

to the emergency conditions are not eligible for reimbursement. However, 

extraordinary costs for essential employees who are called back to duty 

during administrative leave to perform disaster-related emergency work 

are eligible if the procedures were provided for in a written policy prior to 

the disaster. 

Seasonal Employees. Seasonally employed personnel, when covered 

under existing budgets and used for a disaster during the normal season 

 Chapter 2: Eligibility 
of employment, are considered permanent employees for the purpose of 

cost eligibility. 

Reassigned Employees. Many times during a disaster, employees are 

assigned to perform tasks that are not part of their normal jobs. The labor 

cost for the reassigned employee is eligible as long as the reassigned 

employee is performing eligible work. 

For emergency work, only overtime is eligible for reassigned employees. 

For permanent work, both regular and overtime are eligible. An example 

of a reassigned employee performing eligible work is having an office 

employee stacking sandbags or a police officer removing debris from a 

roadway. The pay rate is based on the reassigned employee’s normal rate 

of pay, not the pay level appropriate to the work. 

Backfill Employees. When a permanent employee is performing eligible 

disaster-related work, it is sometimes necessary to provide a person 

to fill their normal position and duties. The following examples provide 

guidance on determining the eligibility of these backfill employee costs: 

	 If the backfill employee is an extra hire, the cost of this person 

represents an extra cost to the applicant. Straight time salary, 

benefits, and overtime costs are eligible for work performed by the 

backfill employee. 

	 If the backfill employee is a regular employee of the applicant, there 

is no extra cost. Only the overtime cost for work performed by the 

backfill employee is eligible. 

	 If the backfill employee is a regular employee who is called in on a 

weekend or other day off, there may be an extra cost. Straight time, 

benefits, and overtime costs are eligible for work performed by the 

backfill employee. 

	 If the backfill employee is called in from vacation, there is no extra 

cost because the vacation can be rescheduled. Only overtime costs 

are eligible for work performed by the backfill employee. 

Temporary Employees. Temporary employees are extra personnel hired 

as a direct result of the disaster to perform eligible work. An example of a 

temporary employee would be a laborer hired to perform repairs to roads 

damaged during the disaster. Regular and overtime costs are eligible for 

both emergency and permanent work performed by temporary employees 

when they are doing eligible work. 

Chapter 2: Eligibility		 
Force Account Mechanics. Time spent maintaining and repairing 

applicant-owned equipment is not eligible because this cost is included 

in equipment rates described on pages 48–49. Repair of disaster damage 

to equipment may be eligible, as described later in this chapter under 

Category E. 

Foremen and Supervisors. Labor for both foremen and supervisors 

may be eligible for work forces engaged in disaster-related field 

activities to the extent that the time is associated with eligible work. (See 

“Project Supervision and Management Costs,” pages 61–65, for further 

discussion.) However, the salaries of commissioners, mayors, department 

directors, police and fire chiefs, and other administrators usually are not 

eligible. 

Contract Supervision. Reasonable costs of contractors hired to 

accomplish emergency work are eligible for reimbursement. Regular time 

salaries of the applicant’s employees overseeing contractors performing 

emergency work are not eligible. However, regular time salaries of force 

account labor for overseeing contractors performing permanent work are 

eligible. 

National Guard Labor and Prisoner Labor. The Stafford Act contains 

specific reference to costs of National Guard labor and prisoner labor. 

Costs of using National Guard personnel to perform eligible work are 

eligible to the extent that those costs are being paid by the State. 

Prisoner labor costs are eligible at the rate normally paid to prisoners. 

Costs of prisoner labor also include transportation to the worksite and 

extraordinary costs of guards, food, and lodging. 

General Criteria for Labor Costs 

Davis-Bacon Act. The Davis-Bacon Act requires Federal agencies to 

pay workers under contract to them the “prevailing wage,” defined by 

the Department of Labor. The provisions of the Davis-Bacon Act do 

not apply to State or local contracts for work completed using Public 

Assistance funds under the Stafford Act. However, the provisions do 

apply to contracts let by other Federal agencies, such as the USACE, 

when operating under a Mission Assignment from FEMA. If a State or 

local government incorporates Davis-Bacon wage rates as part of its 

normal practice for all contracts, regardless of funding source, those rates 

are eligible. 

Regular Time and Overtime. For debris removal and emergency 

protective measures, only overtime labor is eligible for permanent 

 Chapter 2: Eligibility 
employees, regardless of normal duties or assignments. For permanent 

work, both regular time and overtime are eligible for all employees. 

Policies for payment of overtime or premium pay must be reasonable and 

not be contingent on Federal funding. The policy must have set criteria for 

its activation and not be open to the discretion of management. 

Compensatory Time. If an applicant has a written policy in place prior to 

the disaster for providing compensatory time in place of overtime, FEMA 

reimbursement will be based on that policy. Funding at a reasonable rate 

is eligible if the written policy requires it. 

Fringe Benefits. Fringe benefits that are actually paid or credited as part 

of an established policy are eligible. Because certain items in a benefit 

package are not dependent on hours worked, such as health insurance, 

the fringe benefit rate will be different for regular and overtime hours. The 

overtime fringe benefit rate is usually significantly lower. 

The following steps may be used to calculate the percentage of fringe 

benefits paid on an applicant’s employee’s salary. Note that items and 

percentages will vary from one entity to another. 

1. The normal year consists of 2080 hours (52 weeks x 5 workdays/ 

week x 8 hours/day). This makes no allowance for holidays and 

vacations. 

2. Determine the employee’s basic hourly pay rate (annual salary/2080 

hours). 

3. Fringe benefit percentage for vacation time: Divide the number of 

hours of annual vacation time provided to the employee by 2080 (80 

hours (assuming 2 weeks)/2080 = 3.85%). 

4. Fringe benefit percentage for paid holidays: Divide the number of 

paid holiday hours by 2080 (64 hours (assuming 8 holidays)/2080 = 

3.07%). 

5. Retirement pay: Because this measure varies widely, use only the 

percentage of salary matched by the employer. 

6. Social Security and Unemployment Insurance: Both are standard 

percentages of salary. 

7. Insurance: This benefit varies by employee. Divide the amount paid 

by the applicant by the basic pay rate determined in Step 2. 

8. Workman’s Compensation: This benefit also varies by employee. 

Divide the amount paid by the applicant by the basic pay rate 

Chapter 2: Eligibility 
determined in Step 2. Use the rate per $100 to determine the 

correct percentage. 

Note: Typically, the applicant should not be charging the same rate for 

regular time and overtime. Those fringe benefits that vary with the number 

of hours worked may be eligible at the higher rate. 

Sample Rates 

Although some rates may differ greatly between organizations, the table 

below provides some general guidelines that can be used as a test of 

reasonableness when reviewing submitted claims. These rates are based 

on experience in developing fringe rates for several State departments. 

The rates presented are determined using the gross wage method 

applicable to the personnel hourly rate method. The net available hours 

method would result in higher rates. 

Table 3: Paid Fringe Benefits 

Item Rate 

Holiday Leave 4.00% (or less) 

Accrued Vacation Leave 7.00% (or less) 

Sick Leave 4.00% (or less) 

Social Security Matching 6.2% of employee earnings up to $94,200 

(in 2006) 

Medicare 1.35% 

Unemployment Insurance 0.25% (or less) 

Worker’s Compensation 3.00% (or less) 

Retirement – Regular 17.00% (or less) 

Retirement – Special Risk 25.00% (or slightly more) 

Health Insurance 12.00% (or less) 

Life & Disability Insurance 1.00% (or less) 

Administrative Leave 0.50% (or less) 

Compensatory Leave 2.00% (or less) 

Rates outside of these ranges are possible, but should be justified. 

 Chapter 2: Eligibility 
Figure 2: Applicant’s Benefits Calculation Worksheet 

EMERGENCY MANAGEMENT AGENCY 0.111.8. No. 1"''''17 APPLICANT'S BENEFITS CALCULATION WORKSHEET PAGE --OF -- EIII*- o.zto. :11,_ 

APPLICANT PA.ID NO. 

DISASTER PROJECT NO. 

FRINGE BENEFITS (by %) REGULAR TIME OVERTlME 

HOUDAYS 

VACATION LEAVE 

SICK LEAVE 

SOCIAL SECURITY 

MEDICARE 

UNEMPLOYMENT 

WORKER'S COMP. 

RETIREMENT 

HEAl.. TH BENEFITS 

LIFE 

""'.R SAMPLE

INS. BENEFITS 

TOTAL In % of _nnualol_ry 

COMMENTS 

I CERTIFY THAT THE .. FORMATION ABOVE WAS TRANSCRIBED FROM PAYROLL RECORDS OR. OTHER DOCUIIENTS WHICH ARE AVAILABLE 

CERTIFIED BY DATE ITmE 

FEMAFarm 10·121, FEB OIl 

Chapter 2: Eligibility 
Materials 

The cost of supplies that were purchased or taken from an applicant’s 

stock and used during the performance of eligible work is eligible. 

Replacement costs may be determined by contacting area vendors. 

Equipment 

Certain ownership and operating costs for force account (that is, 

applicant-owned) equipment used to perform eligible work are eligible. 

Costs for use of automobiles and pick-up trucks may be reimbursed on 

the basis of mileage if less costly than hourly rates. For all other types 

of equipment, costs are reimbursed using an hourly rate. Reimbursable 

equipment rates typically include operation (including fuel), insurance, 

depreciation, and maintenance; however, they do not include the labor of 

the operator. Stand-by time for equipment is not eligible. However, if an 

applicant uses equipment intermittently for more than half of the normally 

scheduled working hours for a given day, use for the entire day may be 

claimed if adequate documentation is submitted. Equipment that is used 

for less than half of the normally scheduled working day is reimbursable 

only for the hours used. 

See FEMA Policy 9525.8, Damage to Applicant Owned Equipment, 

for guidance on recovering costs related to the repair of force account 

equipment damaged during the performance of eligible disaster work, 

including transit to the work site. 

FEMA recognizes three types of equipment rates. Each is described as 

follows. 

FEMA Rates. FEMA has published a schedule of equipment rates that 

is applicable on a national basis. If a piece of equipment used by an 

applicant is not on the FEMA schedule, documentation to justify the 

requested rate must be submitted to FEMA for the DRM’s approval. If an 

entity has established rates for use in its normal day-to-day operations, 

the criteria listed below under State and local rates apply. If an entity does 

not have established rates, FEMA rates will be used. 

State Rates. An applicant may claim reasonable rates that were 

developed using State guidelines up to $75 per hour. Rates over $75 

per hour may be approved by the Disaster Recovery Manager (DRM) on 

a case-by-case basis. A State guideline would be an equipment cost 

methodology used by a State agency to account for the costs of using 

its own equipment. Care must be taken to examine the rate schedule 

before applying it to State or locally owned equipment. Some State 

 Chapter 2: Eligibility 
highway departments have a schedule of rates for “force account” 

work, the meaning of which is generally different from its meaning in 

the PA Program. State highway usage of the term may mean a rate for 

contractor’s equipment doing extra work on a project. PA Program usage 

means a rate for applicant-owned equipment. Therefore, FEMA may 

request verification that any such rate schedule is actually for applicantowned equipment. 

Local Rates. Rates developed by a local government can be used. 

Where local rates have been developed, reimbursement is based on the 

local rates or FEMA’s rates, whichever is lower. If the local rate is lower 

and the applicant certifies that the rates do not reflect all actual costs, 

the higher FEMA rates may be used. The applicant may be requested to 

provide documentation of the basis for its rates. 

Equipment.and.Supplies.Purchased.for.Disaster.use 

There are many instances where an applicant will not have sufficient 

equipment and supplies to respond to the disaster in an effective manner. 

For the purpose of this section, the following definitions apply: 

	 The term “equipment” means tangible, non-expendable, personal 

property having a useful life of more than one year and an 

acquisition cost of $5,000 or more per unit. 

	 The term “supplies” means all tangible personal property other than 

equipment. 

While FEMA may assist the applicant in purchasing the needed 

equipment and supplies, the applicant is required to compensate FEMA 

for the Federal share of the cost of individual items of equipment and 

the aggregate total of supplies with a current fair market value in excess 

of $5,000 when the items are no longer needed for the disaster. For 

equipment and supplies below this threshold, the applicant may sell or 

otherwise dispose of the items with no compensation to FEMA. (See 

FEMA Policy 9525.12, Disposition of Equipment, Supplies and Salvaged 

Materials.) 

The fair market value is the value of equipment and supplies determined 

by selling them in a competitive market or researching advertised prices 

for similar items on the used market. The current fair market value should 

be determined at the time the equipment and supplies are no longer 

needed for disaster operations regardless of when actual disposition 

takes place. 

Chapter 2: Eligibility		 
Salvage.value 

When applicable, salvage value should be deducted from the estimated 

replacement cost. Disposition of salvaged materials must be at fair 

market value and the value must be reimbursed to FEMA to reduce the 

total project cost. For example, debris resulting from disasters, such 

as timber debris, mulched debris, and scrap metal, may have a market 

value. Reasonable costs for administering and marketing the sale of 

the salvageable materials is allowed to be recouped by the applicant 

from the fair market value. To reduce contract costs, applicant debris 

removal contracts may provide for the contractors to take possession of 

salvageable material and benefit from its sale in order to lower bid prices. 

When the salvage values are taken into account in the bid and award, 

no salvage value needs to be recouped at the end of the project. (See 

FEMA Policy 9525.12, Disposition of Equipment, Supplies and Salvaged 

Materials.) 

Third.Party.Liability 

When a third party causes damage (e.g., an oil spill) or otherwise 

increases the cost of repair or cleanup, the applicant is required to 

pursue the third party for recovery. If recovery is not adequate despite 

the applicant’s good faith effort, costs may be funded through a PW. 

Reasonable costs (including reasonable legal fees) of such recovery may 

be deducted from the recovery before the deduction is made from the 

eligible costs. 

Mutual.Aid.Agreements 

In some cases, State or local governments use mutual aid agreements 

as an emergency preparedness device. A mutual aid agreement is an 

agreement between jurisdictions or agencies to provide services across 

boundaries in an emergency or major disaster. Such agreements usually 

provide for reciprocal services or direct payment for services. FEMA will 

reimburse mutual aid costs for eligible emergency work, when requested 

by the applicant (receiving entity) in accordance with FEMA Policy 9523.6, 

Mutual Aid Agreements for Public Assistance. Key provisions are: 

	 reimbursement to the providing entity is not contingent on the 

receipt of Federal funding; 

	 the assistance is for the performance of eligible work; 

	 the claimed costs are reasonable; 

0	 Chapter 2: Eligibility 
	 the work accomplished, the billing for assistance, and the payment 

for the assistance can be documented; and 

	 the claimed costs are in accordance with FEMA’s mutual aid policy. 

When a pre-event agreement provides for reimbursement, but also 

provides for an initial period of unpaid assistance, FEMA will pay the 

eligible costs of assistance after the initial unpaid period. When a preevent mutual aid agreement provides for reimbursement and there is a 

consistent record of reimbursement without Federal funds, FEMA reimbursement will follow the provisions of the agreement. 

When the parties do not have a pre-event written mutual aid agreement, 

the Requesting and Providing entities may verbally agree on the type and 

extent of mutual aid resources to be provided to the current event, and 

the terms, conditions, and costs of such assistance. Post-event verbal 

agreements must be documented in writing and executed by an official of 

each entity with authority to request and provide assistance, and provided 

to FEMA as a condition of receiving reimbursement. 

The Emergency Management Assistance Compact (EMAC) is a form of 

mutual aid. It establishes procedures whereby a disaster-impacted state 

can request and receive assistance from other member states quickly 

and efficiently. EMAC resolves two key issues up front: liability and 

reimbursement. The requesting State agrees to (1) assume liability for 

out-of-state workers deployed under EMAC and (2) reimburse assisting 

states for deployment-related costs. There are two types of work 

potentially eligible for FEMA reimbursement; grant management work and 

emergency work. To the extent the specific agreement between states 

meets the requirements of the FEMA policy on mutual aid agreements 

and the work meets FEMA eligibility requirements, costs may be eligible 

for FEMA assistance. Reimbursement for these costs would be subject to 

the Federal/non-Federal cost share for that disaster. 

To be allowable, costs must be consistent with policies, regulations, 

and procedures that apply uniformly to both Federal awards and 

other activities of the applicant. The receiving entity is responsible for 

requesting FEMA assistance and for the non-Federal cost share. 

Contracts 

Contracts must be of reasonable cost, generally must be competitively 

bid, and must comply with Federal, State, and local procurement 

standards. FEMA regulations at 44 CFR Part 13 – Uniform Administrative 

Requirements For Grants And Cooperative Agreements To State And 

Chapter 2: Eligibility		 
Local Governments provide specific guidance on contracts. FEMA finds 

four methods of procurement acceptable. Each is described below in 

general terms. 

Small Purchase Procedures. Small purchase procurement is an informal 

method for securing services or supplies that do not cost more than 

$100,000 by obtaining several price quotes from different sources. 

Sealed Bids. Sealed bid procurement is a formal method where bids 

are publicly advertised and solicited, and the contract is awarded to the 

bidder whose proposal is the lowest in price (this method is the preferred 

method for procuring construction contracts). 

Competitive Proposals. Competitive procurement is a method similar to 

sealed bid procurement in which contracts are awarded on the basis of 

contractor qualifications instead of solely on price (this method is often 

used for procuring architectural or engineering professional services). 

Noncompetitive Proposals. Noncompetitive procurement is a method 

whereby a proposal is received from only one source. Noncompetitive 

proposals should be used only when the award of a contract is not 

feasible under small purchase procedures, sealed bids, or competitive 

proposals, and one of the following circumstances applies: 

	 the item is available only from a single source; 

	 there is an emergency requirement that will not permit a delay for 

competition; 

	 FEMA authorizes a noncompetitive proposal; or 

	 solicitation from a number of sources has been attempted, and 

competition is determined to be inadequate. 

“Piggyback contracting” is a concept of expanding a previously awarded 

contract. Piggyback contracting does not meet the requirements of 44 

CFR Part 13 because it is non-competitive and may have an inappropriate 

price structure. This type of contract is not eligible. However, FEMA may 

separately evaluate and reimburse costs it finds fair and reasonable. 

It is important to recognize that an applicant may provide a contract 

that meets the legal and administrative procurement requirements but 

includes aspects that would not be eligible for FEMA funding. Each type 

of contract must be reviewed carefully to assure compliance with the 

FEMA scope of eligible work. 

FEMA provides reimbursement for three types of contracts. They are: 

	 Chapter 2: Eligibility 
	 lump sum contracts for work within a prescribed boundary with a 

clearly defined scope and a total price; 

	 unit price contracts for work done on an item-by-item basis with 

cost determined per unit; and 

	 cost plus fixed fee contracts, which are either lump sum or unit price 

contracts with a fixed contractor fee added into the price. 

Applicants should avoid using time and materials contracts. FEMA may 

provide assistance for work completed under such contracts for a limited 

period (generally not more than 70 hours) for work that is necessary 

immediately after the disaster has occurred when a clear scope of work 

cannot be developed. Monitoring is critical and a competitive process 

still should be used to include labor and equipment rates. Trimming 

trees of dangerous hangers may be an appropriate use of this type of 

contract, but only if an acceptable unit price contract is not feasible. 

Applicants must carefully monitor and document contractor expenses, 

and a cost ceiling or “not to exceed” provision must be included in the 

contract. If a time and materials contract has been used, the applicant 

should contact the State to ensure proper guidelines are followed. Cost 

plus a percentage of cost contracts are not eligible. However, FEMA may 

separately evaluate and reimburse costs it finds fair and reasonable. 

FEMA may review proposed contracts for compliance with FEMA 

eligibility rules and reasonableness of costs, but such a review does not 

constitute approval. 

FEMA has developed an on-line debris contractor registry tool to 

assist State and local governments in identifying and contacting 

contractor resources. The registry tool can be found on FEMA’s website 

(www.fema.gov/business/contractor.shtm). The information provided 

in the registry is maintained by contractors and their representatives. 

FEMA does not verify, and takes no responsibility for, the accuracy of 

any of the information submitted. FEMA does not endorse, approve, or 

recommend any contractors, including those in the registry. State and 

local governments should perform all appropriate due diligence prior to 

entering into a contract. Contracting with any of the entities listed in the 

registry does not assure a State or local government of reimbursement 

under a Federal grant. State and local governments should follow their 

competitive procurement procedures when selecting a contractor. 

Chapter 2: Eligibility		 
Loss.of.Revenue 

The loss of revenue is not an eligible cost authorized by the Stafford 

Act and, therefore, cannot be funded through the PA Program. Loss of 

revenue may occur: 

	 when a hospital releases non-critical patients in order to make room 

for disaster victims; 

	 when a hospital sustains damage that reduces its pre-disaster 

capacity; 

	 when a toll road is opened for evacuation of traffic and the normal 

toll is not charged; 

	 when the State waives the normal fee for ferry service to encourage 

alternate transportation after a disaster event; or 

	 when a utility system is shut down as the result of a disaster. 

Applicants may suffer other costs that are ineligible for FEMA assistance, 

such as payment of salaries for employees sent home during an 

emergency. 

Increased.Operating.Expenses 

The costs of operating a facility or providing a service may increase due 

to or after a disaster. With few exceptions, these costs are not eligible. 

Some examples of ineligible costs are: 

 increased hospital patient care costs;
 


 increased costs for feeding residents and staff of critical facilities;
 


 increased costs of administrative operations;
 


 increased costs for care and feeding of prisoners and people in 
 

residential facilities (schools, nursing homes, etc.); 

 increased costs of telecommunications (e.g., additional cell phone 

instruments and fees); 

 increased costs for copying, parcel delivery, photography, supplies, 

fuel, materials, and similar costs; 

 food service (other than mass feeding as an emergency protective 

measure); 

	 Chapter 2: Eligibility 
	 increased cost of obtaining electrical power from an alternate 
 

source; 
 

	 increased cost of obtaining water from an alternate source; and 

	 costs of finance charges, e.g., interest on loans and bond costs to 

finance rebuilding. 

However, reasonable short-term additional costs to an applicant that are 

directly related to accomplishing specific emergency health and safety 

tasks as part of eligible emergency protective measures may be eligible. 

If they can be documented and identified with a specific emergency task, 

some examples of potentially eligible costs are: 

	 increased utility costs of a permanently mounted generator at a 

hospital or at a police station; 

	 increased water-testing and water-treatment supplies in the 

immediate aftermath of a disaster to counter a specific threat; 

	 increased fuel for increased use of a pumping station; 

	 increased costs of vector control; and 

	 increased facility costs (e.g., electricity) for emergency operating 

centers of eligible applicants. 

Examples of Emergency Protective Measures are given on pages 71–74. 

Surveys.for.Damage 

The owner of a facility is responsible for determining the extent of 

damage. Surveys are not eligible work under a PW. Such activities are 

covered by an applicant’s administrative allowance. Examples of ineligible 

survey costs include: 

	 general surveys for eligible facilities; 

	 video inspection of sewer lines; 

	 bridge inspections to determine the possibility of damage; and 

	 pier inspections to determine the possibility of damage. 

In some instances, damage to an inaccessible structure or structural 

component may be evident based on other observations, such as sunken 

ground above a buried pipeline, loss of or increased flow in a pipe, or 

visible damage to finishes. If such conditions are evident, FEMA may pay 

for inspections to determine the extent of damage and method of repair. 

Chapter 2: Eligibility		 
When disaster-related damage is discovered during a survey or is evident 

from other observation, inspection of only the damaged section is eligible. 

That limited cost may be included in the PW for the damages. 

After a facility is determined to be damaged, costs for an engineering 

evaluation to determine the type and extent of repairs necessary to return 

the facility to its pre-disaster condition is eligible as part of the costs of 

permanent repair. 

Donated.Resources 

Third party donated resources (volunteer labor, donated equipment, and 

donated materials) are eligible to offset the non-Federal portion of the 

cost for emergency work. (See FEMA Policy 9525.2, Donated Resources.) 

The amount of credit that can be applied to a project is capped at 

the non-Federal share so that the Federal share will not exceed the 

applicant’s actual out-of-pocket costs. Any excess credit can be applied 

to other emergency work projects of the same applicant. 

Donated resources must apply to actual eligible emergency work, such 

as debris removal or the filling and placing of sandbags. An example of 

ineligible donated resources is volunteers helping individuals applying for 

assistance. The donated services must be documented and must include 

a record of hours worked, number of workers at the work site, and a 

description of work. 

Volunteer labor will be valued at the same hourly labor rate as a similarly 

qualified person in the applicant’s organization who normally performs 

similar work. If the applicant does not have employees performing similar 

work, the rate should be consistent with that for a similarly qualified 

person ordinarily performing the work in the same labor market. 

The value for donated equipment should be determined by using the 

applicable FEMA equipment rate and multiplying it by the number of 

hours the piece of equipment was used to perform eligible work. 

Donated materials are valued at the current commercial rate. If the 

materials were donated by a Federal agency, such as sandbags donated 

by the USACE, the value of the materials cannot be applied as credit. 

Engineering.and.Design.Services 

The costs of basic engineering and design services normally performed 

by an architectural-engineering firm on complex construction projects are 

eligible for reimbursement. Such services include: 

 Chapter 2: Eligibility 
 preliminary engineering analysis; 

 preliminary design; 

 final design; and 

 construction inspection. 

While a final inspection and reconciliation will be used to determine 

the actual costs for reimbursement of these services, the costs can 

be estimated during project formulation using a percentage of the 

construction cost. Percentages are derived from FEMA engineering and 

design services cost curves. These curves, which were developed for 

FEMA from data developed by the American Society of Civil Engineers 

Committee on Professional Practice in 2005, show a correlation between 

engineering costs and total construction costs. These curves are shown 

in Figures 3 and 4. To use the curves, estimate construction costs for 

a project. Find the construction cost on the horizontal axis and, using 

the appropriate curve for either force account or contract work, read 

the associated percentage of engineering and design services from 

the vertical axis. This percentage can be multiplied by the estimated 

construction cost to determine an appropriate engineering and design 

cost estimate. 

Curve A applies to projects of above-average complexity and nonstandard design. Examples of such projects include: 

 airports with extensive terminal facilities; 

 water, wastewater, and industrial waste treatment plants; 

 hospitals, schools, and office buildings; 

 power plants; 

 large dams and complicated small dams; 

 highway and railway tunnels; 

 pumping stations; 

 incinerators; and 

 complicated waterfront and marine terminal facilities. 

Chapter 2: Eligibility 
Figure 3: 

Engineering and Design Services of Above-Average Complexity 

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NOTE: “Contract” and “Force Account” above mean engineering and design services 

performed by contract or by an applicant’s own employees, respectively. 

 Chapter 2: Eligibility 
Curve B applies to projects of average complexity. Examples of such 

projects include: 

	 industrial buildings, warehouses, garages, hangars, and comparable 

structures; 

	 bridges and other structures of conventional design; 

	 simple waterfront facilities; 

	 roads and streets; 

	 conventional levees, floodwalls, and retaining walls; 

	 small dams; 

	 storm sewers and drains; 

	 sanitary sewers; 

	 water distribution lines; 

	 irrigation works, except pumping plants; and 

	 airports, except as classified for Curve A. 

In addition to the basic engineering services, special services may be 

required for some projects. Such services include engineering surveys, 

soil investigations, services of a resident engineer, and feasibility studies. 

Because special services are not required on all projects, they are not 

included in the percentages on the engineering and design services 

curves. These services are estimated separately. 

If a project requires only basic construction management, a fee not 

exceeding 3 percent of construction costs may be used for the estimate. 

Management functions include review of bids, work site inspection visits, 

checking and approval of material samples, review of shop drawings and 

change orders, review of contractor’s request for payment, and acting 

as the client’s representative. An example of a project requiring only 

inspection services but no design and engineering would be a building 

repair project that only included patching and painting damaged interior 

wall. Another example would be where a contractor is hired to repair 

local roads back to the pre-disaster condition, using local construction 

standards. 

Estimates for engineering and design services and construction 

inspection typically are not included in small project estimates or 

Chapter 2: Eligibility		 
Figure 4:
 


Engineering and Design Services of Average Complexity
 


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NOTE: “Contract” and “Force Account” above mean engineering and design services 

performed by contract or by an applicant’s own employees, respectively. 

0 Chapter 2: Eligibility 
emergency work project estimates except for complex projects or 

projects where special services are required. 

Actual costs, not estimated costs, for eligible engineering and design 

services should be claimed in large project final inspection and 

reconciliation. Costs that exceed the amounts determined by use of these 

curves will be reviewed for reasonableness and funded accordingly. 

Project.Supervision.and.Grant.Management.Costs 

Applicants have several types of eligible supervisory and management 

costs available that serve different purposes and need to be identified and 

claimed separately. (See FEMA Policy 9525.6, Project Supervision and 

Management Costs of Subgrantees.) Commingling of these various costs 

and claiming them incorrectly may result in loss of eligible reimbursement. 

Project management costs provided when using the Cost Estimating 

Format methodology for estimating project costs (see pages 105–106) 

must not duplicate other requests for reimbursement. 

The following items may be eligible project supervision and management 

costs: 

A.Supervision and Management by Force Account. In general, 

applicant expenses for administration and management activities 

not specifically accountable to an eligible work project are ineligible. 

The regular time salaries of an applicant’s permanently employed 

personnel who supervise or manage emergency work performed 

by an applicant’s employees (or by contractors) are not eligible; 

only overtime costs are eligible for emergency work. Labor costs 

of second level supervisors (and above) are ineligible unless the 

applicant can account for specific time spent on eligible permanent 

projects. Generally, the labor costs of only first line supervisors of 

permanent work are eligible. 

B. Project Management Activities. Project management is the 

oversight of an eligible project from the design phase to the 

completion of work. Eligible project management activities are those 

activities that the applicant would have performed in the absence of 

Federal funding, such as: 

 direct management of projects in the concept and design 

stages that are being designed by an applicant’s in-house 

staff, or by an architectural/engineering firm retained to analyze 

and design the repair or replacement of damaged facilities; 

Chapter 2: Eligibility 
 procurement activities for architectural/engineering services 

and performance of work; 

 review and approval of the project design regardless of who 

performs the design work; and 

 management of construction work by contractors. 

C. Master Service Agreements. Local governments occasionally 

enter into Service Agreements or Master Service Agreements 

(MSAs) with private contractors for management or overview 

of disaster work. The agreements typically involve a broadly 

defined scope of services, allowing the local government to use 

the contractor for multiple tasks. An MSA might include various 

tasking for architectural/engineering services, construction and 

construction management services, procurement assistance (bid 

document preparation, bid analysis and review, etc.), and other 

technical services (environmental and historic consulting etc.). The 

eligibility of specific costs payable under an MSA depends upon the 

nature of the work. If a task under the MSA meets FEMA eligibility 

criteria, complies with 44 CFR Part 13, does not duplicate other 

work funded by FEMA, and is directly related to a specific, FEMAapproved project, the cost may be incorporated into the PW for the 

project it is supporting. Any general MSA costs not directly related 

to the performance of a specific eligible project are not eligible 

for reimbursement. Some of these costs may be covered by the 

Administrative Allowance (e.g., preparing the grant application). A 

separate PW just for MSA activities may not be prepared. Grantees 

employing similar services may request coverage of these expenses 

on a State Management PW. 

D.Administrative Allowance. Federal regulations for grant programs 

allow the grant recipients to claim reasonable administrative costs, 

unless the law authorizing a grant program includes specific 

provisions for these costs. For the PA Program, the Stafford Act 

stipulates that each grant recipient be provided an allowance 

to meet the cost of administering the grant. The allowance is 

calculated differently for applicants and States and covers different 

costs for each. 

Applicants. The Administrative Allowance for applicants 
 

(subgrantees) covers direct and indirect costs incurred in 
 

requesting, obtaining, and administering Public Assistance, i.e., 
 

grant management. No other administrative or indirect costs 
 

 Chapter 2: Eligibility 
incurred by an applicant are eligible. Examples of the activities that 

this allowance is intended to cover include: 

 identifying damage (to include photographs and flyovers of 

damaged areas); 

 attending the Applicants’ Briefing; 

 completing forms necessary to request assistance; 

 preparing PWs for small projects or assisting the Project 

Specialist (Project Officer) in completing PWs for large 

projects; 

 establishing files, and providing copies and documentation; 

 assessing damage, collecting cost data, and developing cost 

estimates; 

 working with the State during project monitoring, final 

inspection, and audits; and 

 preparing for audits. 

The allowance is not intended to cover direct costs of managing 

specific projects that are completed using Public Assistance funds. 

These costs are eligible as part of the grant for each project, as long 

as they can be specifically identified and justified as necessary to do 

the work. For example: 

The wages of a foreman on the site of a repair project would 

be a direct cost associated with that project and would not be 

included in an applicant’s Administrative Allowance. 

At the time of publication of this guide, FEMA was preparing to 

change the system for calculating the amount of compensation 

due. Until that new method is finalized, the following method will 

continue to be used. 

The Administrative Allowance for an applicant is calculated as 

a percentage of all approved eligible costs that the applicant 

receives for a given disaster. The applicant is not required to 

submit documentation for its administrative allowance, but records 

are required to be kept for audit purposes. If there are surplus 

Administrative Allowance funds, they must be returned to FEMA. 

Retaining unspent funds and using them for another purpose is not 

Chapter 2: Eligibility 
permitted by Federal regulation. This percentage is calculated using 

a sliding scale as indicated in Table 4. 

Table 4: Administrative Allowance – Applicants 

Total.Amount.of.PA.Project.Funds Allowance 

First $100,000 of net eligible costs 3 percent of net eligible costs 

Next $900,000 of net eligible costs 2 percent of that $900,000 or 

less 

Next $4,000,000 of net eligible costs 1 percent of that $4,000,000 

or less 

Net eligible costs in excess of 1⁄2 percent of that excess 

$5,000,000 

States. The Administrative Allowance for States is provided for the 

extraordinary costs incurred for overtime pay, per diem, and travel 

expenses for State employees who participate in the administration 

of Public Assistance grants. It does not cover regular time labor 

costs, equipment purchases, contractor assistance, or other costs 

directly associated with grant administration. 

Examples of administrative activities covered by the allowance 

include: 

 field inspections; 

 preparation of damage assessments and cost estimates; 

 conducting Applicants’ Briefings; 

 working with applicants; and 

 project monitoring, processing of appeals, final inspections, 

and audits. 

The Administrative Allowance is calculated as a percentage of 

the Federal share of all Public Assistance funds (under Sections 

403, 406, 407, 502, and 503 of the Stafford Act) actually awarded 

in the State for a given disaster. The percentage is calculated on 

the Federal share of eligible Public Assistance costs for the entire 

disaster using the same sliding scale as that used for applicants. 

Costs covered under the State Management Administrative 

Costs (see Table 5) are not included in the base calculation of 

the Administrative Allowance. The State is not required to submit 

 Chapter 2: Eligibility 
documentation for its Administrative Allowance, but records are 

required to be kept for audit purposes. 

At the time of publication of this guide, FEMA was preparing to 

change the system for calculating the amount of compensation 

due. Until that new method is finalized, the following method will 

continue to be used. 

Table 5: Administrative Allowance – Grantee 

Total.Amount.of.PA.Grant.Funds Allowance 

First $100,000 of Federal share 3 percent of Federal share 

Next $900,000 of Federal share 2 percent of that $900,000 or 

less 

Next $4,000,000 of Federal share 1 percent of that $4,000,000 

or less 

Federal share in excess of 1⁄2 percent of that excess 

$5,000,000 

E. State Management Administrative Costs. In addition to 

reimbursement under the Administrative Allowance, a State 

Management PW is prepared to cover the regular time of State 

employees and other grant administration costs associated with 

performing grant management activities. If it is necessary for a 

Grantee to employ a contractor to perform this work, reasonable 

contractor costs, including overtime, travel, and per diem, are 

eligible. (See FEMA Policy 9525.11, Payment of Contractors for 

Grant Management Tasks.) FEMA will continue to fund State 

costs by the current system until FEMA publishes regulations for 

management costs. 

F. State Indirect Cost Reimbursement. Indirect cost reimbursement 

is contingent on the State submitting a State Indirect Cost 

Rate Proposal or a Public Assistance Cost Allocation Plan per 

Attachments D and E of Office of Management and Budget (OMB) 

Circular A-87. The proposal or plan should be submitted to FEMA, 

Office of Financial Management, Disaster Finance Branch, Disaster 

Reports and Analysis Section, for approval. 

Chapter 2: Eligibility 
CATEGORIES.OF.WORk 

To facilitate the processing of Public Assistance grants, FEMA has divided 

disaster-related work into two broad categories, emergency work and 

permanent work. Emergency and permanent work are further divided into 

the seven defined categories shown in Table 6. 

Table 6: Categories of Work 

Category Type.of.Work 

Emergency Work: A Debris Removal 

B Emergency Protective Measures 

Permanent Work: C Roads and Bridges 

D Water Control Facilities 

E Buildings and Equipment 

F Utilities 

G Parks, Recreational Facilities, and Other Items 

EMERGENCy.WORk 

Emergency work is that which must be performed to reduce or eliminate 

an immediate threat to life, protect public health and safety, and to protect 

improved property that is threatened in a significant way as a result of the 

disaster. Specific eligibility criteria for the two emergency work categories, 

Category A Debris Removal and Category B Emergency Protective 

Measures, are discussed in detail in the individual category discussions 

that follow. 

Within the referenced criteria, the term “immediate threat” describes 

imminent danger or the threat of additional damage or destruction from 

an event that could reasonably be expected to occur within 5 years. It 

must be kept in mind, however, that the definition of “emergency” or 

“immediate threat” may differ where the requirements of other laws or 

Federal agencies are concerned. The following are examples of how this 

definition applies to various disaster scenarios. 

For a flood, the immediate threat exists if a 5-year flooding event 

could cause damage or threaten lives, public health, and safety. This 

is not a flood that necessarily happens within 5 years, but a flood 

that has a 20 percent chance of occurring in any given year. 

 Chapter 2: Eligibility 
For a landslide, an immediate threat may exist if the earth on a 

slope could slide as the result of a moderate amount of rainfall. A 

geotechnical study may be necessary to determine if an immediate 

threat exists. 

For an earthquake, an immediate threat may exist if moderate 

ground shaking, such as might be expected during an aftershock, 

could cause further damage to a structure or threaten the safety of 

the structure’s occupants. 

For a hurricane, an immediate threat may exist if improved property 

could be exposed to flooding from a 5-year event. Similarly, if a 

wind-damaged facility is subject to additional damage by moderate 

winds, such winds could be considered an immediate threat. 

State authorities must document the determination that an immediate 

health or safety threat is present pursuant to established State or local 

ordinances, regulations, or other engineering criteria. 

“Improved property” means a structure, facility, or item of equipment 

that was built, constructed, or manufactured. It includes improved 

and maintained natural features. It does not include land improved for 

agricultural purposes. 

Category.A.–.Debris.Removal 

Potentially eligible debris removal activities include the clearance of: 

	 trees and woody debris; 

	 building components or contents; 

	 sand, mud, silt, and gravel; 

	 wreckage produced during conduct of emergency protective 
 

measures (e.g., drywall); and
 


	 other disaster-related wreckage. 

To be eligible for Public Assistance, debris removal must be in the public 

interest, which is when removal is necessary to: 

	 eliminate immediate threats to lives, public health and safety; 

	 eliminate immediate threats of significant damage to improved 

public or private property when the measures are cost effective; 

Chapter 2: Eligibility		 
	 ensure economic recovery of the affected community to the benefit 

of the community-at-large; or 

	 mitigate the risk to life and property by removing substantially 

damaged structures and associated appurtenances as needed to 

convert property acquired using FEMA hazard mitigation program 

funds to uses compatible with open space, recreation, or wetlands 

management practices. (See FEMA Policy 9523.4, Demolition of 

Private and Public Facilities.) 

In all cases, the costs associated with these activities must be 

reasonable. 

Public Property 

In general, debris on public property that must be removed to allow 

continued safe operation of governmental functions or to alleviate an 

immediate threat is eligible. Debris that is blocking streets and highways 

is a threat to public health and safety because it blocks passage of 

emergency vehicles or it blocks access to emergency facilities such as 

hospitals. Debris in a natural stream or flood channel may cause flooding 

from a future storm. If such flooding would cause an immediate threat 

of damage to improved property, removal of the disaster-related debris 

only to the extent necessary to protect against an immediate threat would 

be eligible. However, not all public property clearance will necessarily 

be eligible. For example, removal of fallen trees in an unused forested or 

wilderness area would not be eligible. 

Where temporary levees have been constructed as an emergency 

protective measure, removal of them will be eligible only to protect public 

health and safety or to protect improved public or private property. 

Debris cleared from roads and highways, including the travel lanes and 

shoulders, roadside ditches and drainage structures, and the maintained 

right-of-way, may be eligible. When the Emergency Relief Program is 

activated for an area, FHWA assistance is available for debris removal on 

Federal-Aid roads and FEMA assistance is not available for these roads. 

If the Emergency Relief Program is not activated, then FEMA assistance 

may be available. (See pages 25–26 for further discussion of FHWA 

programs.) 

The removal of debris from parks and recreational areas used by the 

public is eligible when it affects public health or safety or proper utilization 

of such facilities. Trees frequently constitute a large part of debris in 

these areas. Normally, trees requiring removal are flush cut at the ground. 

	 Chapter 2: Eligibility 
Stump removal is not eligible unless it is determined that the stump itself 

poses a hazard, as when the tree has been uprooted. When eligible, 

stump removal will be accomplished by the most economical means. 

[For additional guidance regarding debris operations and FEMA eligibility 

criteria, see FEMA Policy 9523.11, Hazardous Stump Extraction and 

Removal Eligibility; FEMA Policy 9523.12, Debris Operations: HandLoaded Trucks and Trailers; the Debris Management Guide (FEMA 

publication 325); FEMA 9580.1, Public Assistance Debris Operations Job 

Aid; FEMA Fact Sheet 9580.201, Debris Removal Applicant’s Contracting 

Checklist; and FEMA Fact Sheet 9580.202, Debris Removal Authorities of 

Federal Agencies.] 

Private Property 

Debris on private property rarely meets the public interest standard 

because it does not affect the public at large and may not be the legal 

responsibility of a State or local government. Debris removal from private 

property is the responsibility of the individual property owner aided by 

insurance settlements and assistance from volunteer agencies. Many 

homeowner fire and extended coverage insurance policies have specific 

coverage for debris removal and for demolition of heavily damaged 

structures. FEMA assistance is not available to reimburse private property 

owners for the cost of removing debris from their property; however, 

an eligible local or State government may pick up and dispose of 

disaster-related debris placed at the public right-of-way by those private 

individuals. This type of work must be carefully controlled with regard to 

extent and duration. 

If debris on private business and residential property is so widespread 

that public health, safety, or the economic recovery of the community is 

threatened, the actual removal of debris from the private property by an 

applicant may be eligible. Such debris removal must benefit the general 

public and not just an individual or a limited group of individuals within 

the community. The use of the economic recovery criterion is normally 

restricted to the removal of disaster-related debris from large commercial 

areas when a significant percentage of the commercial sector of a 

community is impacted and coordinated debris removal is necessary to 

expedite restoration of the economic viability of the affected community. 

It does not normally apply to residential property. In each of these 

situations, the work must be done, or be contracted for, by an eligible 

applicant. If the local government and the State are both incapable of 

arranging for the work to be done, direct Federal assistance may be 

requested. Direct Federal Assistance is discussed in more detail on pages 

76–78 of this guide. FEMA must approve removal of debris from private 

Chapter 2: Eligibility 
property before the work begins for that work to be eligible. Additionally, 

debris removal from private property will not be approved until the State 

or local government has agreed in writing before work begins to indemnify 

FEMA from any claims arising from such removal and has obtained 

unconditional authorization to remove the debris from the property owner. 

This indemnification includes Right-of-Entry agreements, release from 

liability, and signed agreements with property owners that any available 

insurance proceeds will be pursued and credited back to FEMA. Debris 

removal from agricultural land is not eligible. See the discussion of 

Homeowners’ Associations and Gated Communities on pages 20–21 for 

further information on debris on private property. 

A governmental resolution after a disaster by an applicant declaring 

that debris on private property constitutes a threat to public health and 

safety does not in itself make the debris removal eligible. The applicant 

should submit its established, specific legal requirements for declaring the 

existence of a threat to public health and safety to FEMA for review and 

approval. Conditions that could make the removal of debris from private 

property eligible for reimbursement include: 

	 a damaged structure may be a public health and safety hazard 

if it could be condemned as such pursuant to the provisions of 

an applicant’s ordinance related to condemnation of damaged 

structures. Such a determination must be made by an individual 

qualified to do so, such as a certified building inspector; or 

	 a public health hazard may exist if such a determination is made 

pursuant to the provision of an applicant’s ordinance related to 

public health. Such a determination must be made by an individual 

qualified to do so, such as a public health official. 

In general, even if private property debris removal is authorized, FEMA will 

not pay for removal of the following: 

	 privately owned vehicles, whether or not insured; 

	 old white goods (refrigerators, washers, dryers, etc.) located on 

private property awaiting proper disposal before the disaster; 

	 old tires, batteries, or any equipment/material located on private 

property awaiting proper disposal before the disaster; 

	 other equipment or material stored on the property or awaiting 

disposal before the disaster; 

	 damaged swimming pools and basements; 

0	 Chapter 2: Eligibility 
	 damaged foundations (unless it is part of a mitigation buy-out 
 

project); or 
 

	 reconstruction debris, private or public, sometimes called 

construction rubble. This is material resulting from reconstruction 

activities. Removal is the responsibility of the property owner. 

Removal of reconstruction debris from an eligible facility may be 

included in the repair/replacement Project Worksheet for that facility. 

Category.B.–.Emergency.Protective.Measures 

Emergency protective measures are those activities undertaken by a 

community before, during, and following a disaster that are necessary to 

do one of the following: 

	 eliminate or reduce an immediate threat to life, public health, or 

safety; or 

	 eliminate or reduce an immediate threat of significant damage 

to improved public or private property through cost-effective 

measures. 

Generally, those prudent actions taken by a community to warn residents, 

reduce the disaster damage, ensure the continuation of essential public 

services, and protect lives and public health or safety are eligible for 

assistance. Such activities should be evaluated to ensure that they meet 

the criteria of the law. The following list provides examples of activities 

that may be eligible: 

	 Warning of risks and hazards. 

	 Search and rescue, including transportation of disaster victims. 

	 Emergency medical facilities. Eligible costs include any additional 

temporary facilities and equipment required to treat disaster victims 

when existing facilities are overloaded or damaged. Ineligible costs 

include any costs for emergency medical treatment (including 

vaccinations), labor costs (physicians, medical personnel, etc.), 

follow-on treatment, increased operational and administrative costs, 

and loss of revenue. (See FEMA Policy 9525.4, Medical Care and 

Evacuations.) 

	 Emergency evacuations of medical and custodial care facilities. 

Eligible costs include transportation and extraordinary labor costs 

for non-medical staff assisting in the evacuations. Ineligible costs 

Chapter 2: Eligibility		 
include medical staff and supplies utilized during the evacuations. 

(See FEMA Policy 9525.4, Medical Care and Evacuations.) 

 Facility costs (but not labor costs) for emergency mass care and 

shelter operations provided by volunteer agencies. Eligible costs 

generally include supplies, durable medical equipment, security, 

cleanup, minor repairs, and increased utility costs. Lease costs are 

not eligible except in the most extraordinary of disaster situations. 

 Facility costs (including labor costs allowed under FEMA Policy 

9525.7, Labor Costs – Emergency Work) for emergency mass 

care and shelter operations provided by governmental entities 

when volunteer agencies are unable to provide emergency mass 

care and shelter. Eligible costs generally include supplies, durable 

medical equipment, security, cleanup, minor repairs, and increased 

utility costs. Lease costs are not eligible costs except in the most 

extraordinary of disaster situations. 

 Expenses of PNPs for providing emergency protective measures for 

their facilities are eligible if their facilities are otherwise eligible for 

assistance. 

 Security in the disaster area. 

 Provision of food, water, ice, and other essential needs at central 

distribution points for use by the local population. 

 Temporary generators for facilities that provide health and safety 

services. 

 Rescue, care, shelter, and essential needs for household pets 

and service animals if claimed by a State or local government. 

Service animals will be sheltered with their owners in congregate 

shelters. (See FEMA Policy 9523.18, Eligible Costs Related to Pet 

Evacuations and Sheltering.) 

 The provisions of rescue, evacuation, movement of supplies and 

persons, care, shelter, and essential needs for human populations 

affected by the outbreak and spread of influenza pandemic. Three 

conditions must be met for a pandemic to start: a) a new influenza 

virus subtype must emerge for which there is little or no human 

immunity; b) it must infect humans and cause illness; and c) it must 

spread easily and sustainably (continue without interruption) among 

humans. 

 Chapter 2: Eligibility 
 Provision of temporary facilities for schools (public and PNP) and 

essential community services. Examples of temporary facilities 

include construction of a temporary bridge or detour road to replace 

an essential crossing facility, temporary hookup of utilities, and 

essential temporary buildings for schools or government offices. 

Eligibility criteria for temporary relocation are outlined on pages 

38–39. (See FEMA Policy 9523.3, Provision of Temporary Relocation 

Facilities.) 

 Activation of a State or local emergency operations center to 

coordinate and direct the response to a disaster event. Costs must 

be associated with a time frame related to circumstances justified 

by the nature of the emergency or disaster. Often an emergency 

operations center is used to direct response activities for a period 

of time, and then its primary activity shifts to managing the Federal 

assistance. 

Because the Stafford Act places limitations on reimbursement for 

the costs of administering the Federal grant, the applicant must 

keep track of which duties are being performed by the center’s 

personnel. Applicant pre-disaster pay policies related to overtime, 

compensatory time, and Fair Labor Standards Act designations are 

integral to eligibility determinations regarding costs. 

 Demolition and removal of damaged public and private buildings 

and structures that pose an immediate threat to the safety of the 

general public. The threat must be identified by local officials 

according to established local ordinances and verified by State and 

Federal officials. In some instances, securing a damaged building 

from access is sufficient to alleviate the threat and demolition is 

not necessary. Buildings that were condemned as a safety hazard 

before the disaster are not eligible. (See FEMA Policy 9523.4, 

Demolition of Private and Public Facilities.) 

 Removal of health and safety hazards. Such activities may include 

the following: 

 disposal of dead animals; 

 pumping of trapped floodwaters that threaten improved 

property; 

 pumping of flooded basements, but only if there is a 

widespread need affecting numerous homes and businesses in 

the community; 

Chapter 2: Eligibility 
 pumping of septic tanks or decontamination of wells, but only 

if there is a widespread pollution threat; and 

 vector control of rodents or insects when there is a serious 

health hazard. A serious health threat exists when a specific 

threat posed by the increased vector population is identified. 

Verification of the threat by the Federal Centers for Disease 

Control or State or local health agencies in accordance with 

established ordinances is required. [See FEMA Policy 9523.10, 

Vector Control (Mosquito Abatement).] 

 Construction of emergency protective measures to protect lives or 

improved property to include the following: 

 temporary levees, berms, dikes, and sandbagging by itself or 

on top of a levee; 

 buttressing, bracing, or shoring of a damaged structure to 

protect against further damage to the structure, or to protect 

the general public; 

 emergency repairs to protective facilities (work is limited to that 

which would provide protection from a 5-year event or would 

restore the facility to its pre-disaster design, whichever is less); 

and placement of sand on a beach to serve as protection of 

improved property from waves and flooding (the same criteria 

regarding the level of protection apply). 

 Emergency measures to prevent further damage to an eligible 

facility. Boarding windows or doors, covering the roof, and 

remediation to stop the spread of mold in the immediate aftermath 

of the disaster are examples of this work. 

 Restoration of access. If a privately owned access (such as a 

driveway, road, or bridge) is damaged, funds for restoration of 

this access may be eligible either under FEMA’s Individuals and 

Households Program or FEMA’s PA Program. In cases where 

homes are inaccessible as a result of the damage, work to 

establish emergency access may be eligible under PA if an eligible 

applicant has legal authority to perform the work and provided 

that the emergency access economically eliminates the need for 

temporary housing. The PA Program staff should coordinate with the 

Individuals and Households Program staff to eliminate duplication of 

effort and funds. 

 Chapter 2: Eligibility 
Other Types of Emergency Work 

Specific eligibility criteria may also apply to the provision of emergency 

communications, public transportation, building inspections, and snow 

removal. These criteria are defined as follows. 

Emergency Communications. The communications system in a 

local community may be damaged by a disaster to the extent that the 

local officials are unable to carry out their duties of providing essential 

community services or responding to the disaster. A temporary 

emergency communications system, such as a mobile radio system 

or cellular telephones, may be needed. Such a system is meant to 

supplement the portion of the community’s communications that 

remains operable, not to replace or expand the pre-disaster system. The 

community is expected to repair the damaged system on an expedited 

basis so that the assistance can be terminated when there is no longer an 

emergency need. 

The temporary system may be eligible for assistance, but only through 

Direct Federal Assistance. FEMA, through a Mission Assignment, would 

use appropriate Federal agencies to perform the eligible work. See pages 

76–78 for additional discussion regarding Direct Federal Assistance and 

Mission Assignments. 

Emergency Public Transportation. The essential portions of a 

community’s transportation system may be damaged by a disaster to 

such an extent that the vital functions of community life are disrupted. 

This situation may involve damage to buses, a subway system, or a 

bridge between two sections of the city. For some of these damaged 

facilities, replacement with temporary facilities may provide the solution. 

In other situations, there may not be a specific damaged facility, but there 

is still a need to supplement existing transportation. 

This condition may result from temporary changes in the location of 

government facilities or residential areas or a need to access different 

shopping areas. The supplemental system must be required to ensure 

access to public places, employment centers, post offices, and schools 

so that a normal pattern of life may be restored as soon as possible. 

The emergency transportation, such as extra buses or trains, additional 

school buses to transport relocated students, or new bus routes, may be 

eligible for assistance, but only through Direct Federal Assistance. FEMA, 

through a Mission Assignment, would use appropriate Federal agencies 

to perform the eligible work. 

Chapter 2: Eligibility 
The damaged facilities should be restored, or the need for supplemental 

transportation should be addressed, as soon as possible so that the 

assistance can be terminated when there is no longer an emergency 

need. 

Building Inspection. Safety inspections are eligible if necessary to 

establish whether a damaged structure poses an immediate threat to 

life, public health, or safety. Inspections associated with a determination 

of substantial damage under the National Flood Insurance Program, 

the determination if a building should be elevated or relocated, a 

determination of what repairs are needed to make a building habitable, 

and code enforcement during reconstruction are not eligible, because 

these inspections go beyond the scope of a safety inspection. (See 

FEMA Policy 9523.2, Eligibility of Building Inspections in a Post-Disaster 

Environment.) 

Snow Removal. Snow removal assistance may be eligible for Public 

Assistance provided that: 

	 the snowfall is of record or near record amount using National 

Oceanic and Atmospheric Administration (NOAA) data; 

	 the response is beyond the State and local government capabilities; 

and 

	 the action is necessary to save lives, protect public health and 

safety, and protect improved property. 

Heavy snowfall over an extended period of time, severe winds and 

extraordinary drifting, extraordinary ice formations, and the cumulative 

effect of snow on the ground may be the basis for assistance when the 

snow depth is a near-record amount. 

Snow removal assistance is eligible for a 48-hour period to address the 

most critical emergency needs. The 48-hour period may begin at a time 

other than when the storm actually began. Each applicant designates the 

beginning of its 48-hour period. All snow plowing, salting, sanding, and 

related emergency work performed during the 48-hour period are eligible. 

(See FEMA Policy 9523.1, Snow Assistance Policy.) 

Direct.Federal.Assistance 

When the impact of a disaster is so severe that neither the State nor 

local government can adequately respond, either by direct performance 

or by contract, the State may request that certain emergency work be 

performed directly by a Federal agency. See 44 CFR §206.208 for a 

	 Chapter 2: Eligibility 
discussion of types of Direct Federal Assistance. Under the provisions 

of the regulations, FEMA, through “Mission Assignments,” may use 

appropriate Federal agencies to perform work or to contract for it to be 

performed. 

The work to be performed must be eligible under the Stafford Act and 

Federal regulations and is limited to: 

 debris removal; 

 The duration of mission assignments for debris removal 

will be limited to 60 days from the declaration date. The 

Federal Coordinating Officer may approve extensions for 

up to an additional 60 days, if a State or local government 

demonstrates a continued lack of capability to assume 

oversight of the debris removal mission. Further extensions will 

require approval by the Assistant Administrator of the Disaster 

Assistance Directorate. 

 emergency protective measures; 

 emergency communications; and 

 emergency public transportation. 

The assistance is subject to the cost-sharing provisions applicable to the 

disaster. The State must reimburse FEMA for the appropriate non-Federal 

share of the cost of the work, including any administrative costs of the 

performing Federal agency. 

A request for direct Federal assistance must be submitted by the State to 

the DRM either on its own behalf or on behalf of an applicant. The request 

must include the items listed below. 

 A written agreement that the State will: 

 provide, without cost to the United States, all lands, 

easements, and rights-of-way necessary to complete the 

approved work; 

 hold and save the United States free from damages due to the 

requested work and indemnify the Federal government against 

any claims arising from such work; 

 provide reimbursement to FEMA for the non-Federal share of 

the cost of the work; and 

Chapter 2: Eligibility 
 assist the performing Federal department or agency in all 

support and local jurisdictional matters. 

	 A statement explaining why the State and local governments are 

unable to perform or contract for the work. 

	 If the State is legally unable to agree to the first two items listed 

under the first bullet above, an agreement from the applicant that it 

will be responsible for the items. The provision of lands, easements, 

or rights-of-way without cost to the United States means that any 

leasing or purchase costs will be borne by non-Federal interests. 

The costs of preparation for the assistance operations and costs of 

restoration to pre-operation conditions will be eligible for Federal 

assistance. 

When the President approves 100% funding for debris removal or 

emergency protective measures, FEMA Policy 9523.9, 100% Funding 

for Direct Federal Assistance and Grant Assistance, gives guidance on 

eligibility and duration of this work. Two provisions of the policy that may 

be applicable to emergency work are: 

	 The policy provides for up to 100% Federal funding for Direct 

Federal Assistance when warranted by the needs of the disaster. 

Such assistance is limited to work completed during the first 72 

hours following the Presidential declarations of a major disaster. 

	 The policy also provides for up to 100% Federal funding for grant 

assistance (i.e., when the applicant performs the work or contracts 

it out) when warranted by the needs of the disaster. The period for 

work to be completed is a 72-hour period selected by the applicant 

within a window from 12:01 a.m. of the date of a Governor’s or city 

or county official’s declaration of emergency through 11:59 p.m. of 

the seventh full day after the date of the Presidential declaration of 

a major disaster. The period may be different for Category A and 

Category B work. 

For additional guidance regarding mission assignments performed by 

the Environmental Protection Agency, see FEMA Policy 9523.8, Mission 

Assignments for ESF #10. 

	 Chapter 2: Eligibility 
PERMANENT.WORk. 

Permanent work is that which is required to restore a damaged facility, 

through repair or restoration, to its pre-disaster design, function, and 

capacity in accordance with applicable codes or standards. Each of these 

items is defined below. 

Design: FEMA provides funds to restore a facility to its pre-disaster 

design or to a design in accordance with an applicable standard. Such 

a standard must meet the requirements for eligible standards discussed 

on pages 33–36. Uniform use of the standard in situations when Federal 

funds are not involved for similar types of facilities is a key factor in the 

evaluation of a standard. Standards might involve sizing of a replacement 

culvert pipe or the type of material it is made of. Standards might also 

have “triggers” that require alteration to other parts of the facility, even 

undamaged parts. This type of requirement in a standard must be found 

“reasonable,” another key factor in evaluating a standard. Additionally, 

the design must be limited to the original design or to the immediate predisaster alternate use, whichever costs less. See pages 27 for additional 

discussion of alternate use facilities. 

Function: The facility must perform the same function that it was 

performing before the disaster. For example, a school gymnasium is 

in need of repair after an earthquake. The school district proposes to 

convert the space into a two-story office complex. Only the repairs to 

return the building to its use as a gymnasium are eligible. FEMA cannot 

provide funding for the conversion to office space, except as an alternate 

project. 

Capacity: The restored facility must operate at the capacity available 

before the disaster. For example, a school designed for 100 students 

is damaged beyond repair during a hurricane. The eligible replacement 

facility must be designed for no more than 100 students. If code dictates 

a larger area per unit of capacity (e.g., square footage per student), FEMA 

may provide assistance to increase the size of the building. FEMA will not 

reimburse for the cost to build a larger school required due to a greater 

service area or over-utilization of space. A larger facility with greater 

capacity may be built as an improved project (see pages 110–111). 

Category.C.–.Roads.and.Bridges 

Roads, bridges, and associated facilities (e.g., auxiliary structures, 

lighting, and signage) are eligible for Public Assistance. For roads (paved, 

gravel, and dirt), eligible items include: 

Chapter 2: Eligibility 
 surfaces; 

 bases; 

 shoulders; 

 ditches; 

 drainage structures; and 

 low water crossings. 

For bridges, eligible items include: 

 decking and pavement; 

 piers; 

 girders; 

 abutments; 

 slope protection; and 

 approaches. 

Only repairs of disaster-related damage are eligible. In some cases, it may 

be possible to review pre-disaster bridge inspection reports to determine 

if damage to a bridge was present before the disaster. As discussed on 

pages 25–26, permanent restoration of any facility, whether it is a road, 

bridge, or related structure, that is part of a Federal-Aid route and falls 

under the authority of the FHWA, is not eligible for Public Assistance. 

Other examples of ineligible facilities include roads that service USACE 

or NRCS levees and dams. Private roads, including homeowners’ 

association roads, are not eligible. 

For Category C work, upgrades necessary to meet current standards 

for road and bridge construction, such as standards for pavement and 

lane width, may be eligible for Public Assistance. If code requires, and 

if the applicant has consistently implemented that code, or if there has 

been no opportunity to implement the code but the applicant agrees 

to in the future, FEMA will fund changes in the bridge design to include 

changing it from one lane to two lanes and access modification for a short 

distance. However, FEMA will not fund construction of additional lanes 

(for example, from two to four lanes or from four to six lanes) because 

such work is beyond that necessary to restore the pre-disaster capacity 

of the facility. 

0 Chapter 2: Eligibility 
Landslides. Specific eligibility criteria also apply to slope failures and 

washouts that are considered landslides. The term landslide describes 

a wide variety of processes that result in the downward and outward 

movement of slope-forming materials including soil, artificial fill, or a 

combination of these. Stabilization or restoration of failed slopes is only 

eligible in the situations described below. (See FEMA Policy 9524.2, 

Policy on Landslides and Slope Failures.) 

Emergency work: If a disaster-caused landslide poses an immediate 

threat to life, public health, and safety, or improved public or private 

property, emergency protective measures to stabilize slopes may be 

eligible. However, the work must be the least cost option, must be 

completed within 6 months of the declaration, and must meet the 

requirements for work under Section 403 of the Stafford Act and 44 CFR 

§206.225(a)(3). Examples of eligible emergency protective measures 

include, but are not limited to: 

	 temporary drainage measures; 

	 temporary ground protection to better stabilize the mass (riprap, 

sheeting); 

	 partial excavation at the head of a sliding mass to reduce driving 

force; 

	 backfilling or buttressing at the toe of a sliding mass (gabions, rock 

toes, cribwalls, binwalls, soldier pile walls, etc.); 

	 installation of barriers to redirect the debris flow; and 

	 temporary relocation of facilities’ function, when cost effective and 

otherwise meeting criteria for temporary relocation. 

Such measures must be temporary. Public assistance will be provided to 

address the area of the immediate threat only, not the stabilization of the 

entire hillside or long-term stabilization of the limited area. The Regional 

Administrator may authorize funding for post-disaster inspections and 

limited geotechnical investigations to determine if the disaster created an 

unsafe condition that poses an immediate threat to life or property. 

Permanent work: If a landslide damages an eligible facility, repairs to 

that facility are eligible as long as the site is stable; the replacement of a 

reasonable amount of integral ground necessary to support the facility 

is also eligible. If the site instability was caused by the disaster, the site 

is eligible only if the work to stabilize the site is cost effective. However, 

if the site was unstable before the disaster, the applicant must pay to 

Chapter 2: Eligibility		 
stabilize the site before Public Assistance funds are provided to repair 

the facility. Natural slopes and hillsides do not meet the definition of 

eligible facilities and are not eligible for permanent work assistance. The 

Regional Administrator may authorize post-disaster site inspections and 

geotechnical investigations to determine site stability. 

Category.D.–.Water.Control.Facilities 

Water control facilities include: 

	 dams and reservoirs; 

	 levees; 

	 lined and unlined engineered drainage channels; 

	 canals; 

	 aqueducts; 

	 sediment basins; 

	 shore protective devices; 

	 irrigation facilities [for PNP irrigation eligibility, see 44 CFR 
 

§206.221(e)(3)]; and



	 pumping facilities. 

As described on pages 24–25, the USACE and NRCS have primary 

authority for repair of flood control works, whether constructed with 

Federal or non-Federal funds, as well as authority over federally funded 

shore protective devices. Permanent repairs to these facilities are not 

eligible through the PA Program. Other water control facilities may 

be eligible for FEMA assistance. (See FEMA Policy 9524.3, Policy for 

Rehabilitation Assistance for Levees and Other Flood Control Works.) 

Restoration of the carrying or storage capacity of engineered channels 

and debris basins may be eligible, but maintenance records or surveys 

must be produced to show the pre-disaster capacity of these facilities. 

The pre-disaster level of debris in the channel or basin is of particular 

importance to determine the amount of newly deposited disaster-related 

debris. Such a facility must also have had a regular clearance schedule to 

be considered an actively used and maintained facility. 

Restoration of reservoirs to their pre-disaster capacity also may be 

eligible in accordance with the criteria for debris basins described above. 

Not all reservoirs are cleaned out on a regular basis, and evidence of pre­

	 Chapter 2: Eligibility 
disaster maintenance must be provided to FEMA. In addition, removal of 

debris that poses an immediate threat of clogging or damaging intake or 

adjacent structures may be eligible. Only the removal of disaster-related 

debris is eligible. If all debris is removed, the project would be considered 

an improved project and costs would be pro-rated. Removal of debris to 

restore a facility to its pre-disaster capacity is Category A work. 

Category.E.–.Buildings.and.Equipment 

Buildings, structural components, interior systems such as electrical or 

mechanical work, equipment, and contents including furnishings, are 

eligible for repair or replacement. Public assistance may be provided 

for the replacement of pre-disaster quantities of consumable supplies 

and inventory and for the replacement of library books and publications. 

Damaged or lost files are eligible only for stabilization (e.g., freeze drying 

or copying); re-establishing files and records from original information is 

not eligible. Removal of mud, silt, or other accumulated debris is eligible 

as permanent work if the debris does not pose an immediate threat but 

its removal, along with any cleaning and painting, is necessary to restore 

the building. If the work meets the immediate threat criteria, removal of 

disaster-related debris and treatment of spreading mold (in the immediate 

aftermath of the disaster) may be eligible as emergency work. 

If an insurance policy applies to a building, equipment, contents, etc., 

FEMA must take that policy into account before providing funds for 

restoration of the building. The owners of insured buildings must provide 

FEMA with policy and settlement information as soon as possible after 

a disaster occurs. Detailed information on insurance is contained in 

Chapter 4. 

FEMA may reimburse for upgrades that are required by certain codes and 

standards provided the upgrade work is required as a direct result of the 

disaster. An example might be roof bracing installed following a hurricane. 

For repairs, upgrades are limited to damaged elements only unless a 

reasonable code with a trigger requires upgrades to other parts of the 

facility. If a structure must be replaced, the new facility must comply 

with all appropriate codes and standards. See pages 33–36 for further 

information. 

FEMA may fund the replacement of a damaged building if the building 

is completely destroyed or if the severity of damage meets FEMA’s 50 

Percent Rule for replacement (see pages 36–38). If a damaged building 

must be replaced, FEMA has the authority to reimburse for a building with 

the same capacity as the original structure (see page 79). However, if a 

Chapter 2: Eligibility 
written standard for space per occupant has changed since the original 

structure was built, FEMA may reimburse for construction of a larger 

building that accommodates the original design capacity. A Federal, 

State, or local agency or statute must mandate the increase in space 

in accordance with a written code; the increase cannot be based only 

on design practices for an industry or profession. FEMA will not fund 

additional capacity necessary due to increased population or use, even 

if required by code. (See “Codes and Standards” on pages 33–36 for 

general eligibility criteria.) 

When museums, either publicly owned or owned by a PNP, are involved 

in disasters, culturally significant collections or objects may be damaged. 

Collections and objects in a museum, by their very nature, generally are 

one-of-a-kind and thus cannot be replaced. Therefore, replacement of 

destroyed collections or objects is not an eligible cost. 

FEMA may, however, fund stabilization measures. Stabilization involves 

taking the minimum steps necessary to return a collection or object to 

a condition in which it can function in the same capacity as it did prior 

to the disaster. FEMA’s Preservation Officer, in consultation with the 

applicant and the State, will use professional judgment to determine 

if additional treatment beyond stabilization is necessary to maintain 

the integrity of the collection or object and return it to its pre-disaster 

function. (See FEMA Policy 9524.6, Collections and Individual Objects.) 

When equipment, including vehicles, is not repairable, FEMA will approve 

the cost of replacement with used items that are approximately the 

same age, capacity, and condition. FEMA may use “blue book” values or 

similar price guides to determine the eligible cost for used equipment and 

vehicles. Replacement of an item with a new item may be approved only 

if a used item is not available within a reasonable time and distance. 

When a piece of applicant-owned equipment is performing eligible 

disaster work, extraordinary damage to the equipment that is caused 

by the disaster may be eligible. However, the cost of increased 

maintenance resulting from excess use is not eligible, because the cost of 

maintenance is included in FEMA’s equipment rates. Damage that could 

have been reasonably avoided such as an accident also is not eligible. 

Reimbursement for the eligible damage is in addition to the applicable 

FEMA equipment rate being paid for the time the equipment was 

performing eligible work. (See FEMA Policy 9525.8, Damage to ApplicantOwned Equipment.) 

Animals, birds, fish, and insects are treated as contents as long as 

they can be obtained through legal means from reputable sources 

 Chapter 2: Eligibility 
by reasonable methods and at reasonable prices. Reimbursement is 

authorized only for juvenile specimens unless mature specimens are 

equivalently priced. (Research time and materials spent on developing the 

specimens is not eligible under the PA Program.) 

Category.F.–.utilities 

Utilities include: 

	 water treatment plants and delivery systems; 

	 power generation and distribution facilities, including natural gas 

systems, wind turbines, generators, substations, and power lines; 

	 sewage collection systems and treatment plants; and 

	 communications. 

The owner of a facility is responsible for determining the extent of 

damage; as with any facility, FEMA does not provide funds for general 

surveys to look for damage, such as video inspection of sewer lines. 

However, if disaster-related damage is evident, such as by observed 

loss of ground above a buried pipeline or loss of or increased flow in 

a pipe, FEMA may pay for inspections to determine the extent of the 

damage and method of repair. The extent of damage to equipment 

utilized in the generation or distribution of utilities should be confirmed 

through testing to determine if damage actually exists and that repair is 

sufficient or replacement is warranted. An example of this would be a 

pump in a lift station that has been flooded. The pump should be turned 

on or inspected and then tested to determine if the pump is damaged 

and if so, to what extent. Generally, large pieces of equipment such as a 

pump can be rebuilt rather than replaced. When disaster-related damage 

is discovered during a general survey, inspection of only the damaged 

section is eligible. When evaluating the repair of damage at multiple 

locations in a pipeline or other continuous facility, FEMA may consider 

the possibility of replacing a whole section if it is cost-effective when 

compared to repairing individual sites. 

While FEMA may provide assistance for restoration of damaged utilities, 

FEMA does not provide assistance for increased operating expenses 

resulting from a disaster or for revenue lost if a utility is shut down 

(see page 54). However, the cost of establishing temporary emergency 

services in the event of a utility shut-down may be eligible (e.g., providing 

a temporary sewage facility). 

Chapter 2: Eligibility		 
Category.G.–.Parks,.Recreational,.and.Other 

Eligible publicly owned facilities in this category include: 

	 mass transit facilities such as railways; 

	 playground equipment; 

	 swimming pools; 

	 bath houses; 

	 tennis courts; 

	 boat docks; 

	 piers; 

	 picnic tables; 

	 golf courses; 

	 fish hatcheries; and 

 facilities that do not fit Categories C-F. 

Other types of facilities, such as roads, buildings and utilities, that are 

located in parks and recreational areas are also eligible and are subject to 

the eligibility criteria for Categories C, D, E, and F. 

PNP-owned park and recreational facilities are not eligible, nor are the 

supporting facilities, such as roads, buildings, and utilities. 

As stated on page 22 of this guide, natural features are not eligible 

facilities unless they are improved and maintained. This restriction applies 

to features located in parks and recreational areas. Specific criteria apply 

to beaches and to trees and ground cover, as described below. 

Beaches. Emergency placement of sand on a natural or engineered 

beach may be eligible when necessary to protect improved property from 

an immediate threat. Protection may be to a 5-year storm profile or to its 

pre-storm profile, whichever is less costly. 

A beach is considered eligible for permanent repair if it is an improved 

beach and has been routinely maintained prior to the disaster. A beach is 

considered to be an “improved beach” if the following criteria apply: 

	 the beach was constructed by the placement of sand to a designed 

elevation, width, grain size, and slope; and 

	 Chapter 2: Eligibility 
	 the beach has been maintained in accordance with a maintenance 

program involving the periodic re-nourishment of sand. 

Typically, FEMA requests the following from an applicant before approving 

assistance for permanent restoration of a beach: 

	 design documents and specifications, including analysis of grain 

size; 

	 “as-built” plans; 

	 documentation of regular maintenance or nourishment of the beach; 

and 

	 pre- and post-storm cross sections of the beach. 

Restoration of sand on natural beaches beyond that necessary to provide 

emergency protection is not eligible. 

Trees and Ground Cover. The replacement of trees, shrubs, and other 

ground cover is not eligible. (See FEMA Policy 9524.5, Trees, Shrubs 

and Other Plantings Associated with Facilities.) This restriction applies 

to trees and shrubs in recreational areas, such as parks, as well as trees 

and shrubs associated with public facilities, such as those located in 

the median strips along roadways and those used as landscaping for 

public buildings. This restriction also applies to instances where ground is 

disturbed due to movement of heavy equipment performing eligible work, 

such as when repairing underground utilities within landscaped areas. 

Grass and sod are eligible only when necessary to stabilize slopes and 

minimize erosion. 

This restriction does not affect removal of tree debris or the removal of 

trees as an emergency protective measure. FEMA will reimburse for the 

removal of tree debris and the removal of eligible trees, or buttressing 

if less costly than removal and disposal, as an emergency protective 

measure if it eliminates an immediate threat to lives, public health and 

safety, or improved property. However, FEMA will not pay for further costs 

or reimburse for the replacement of these trees. 

Chapter 2: Eligibility		 

CHAPTER.3



Applying For Public 

Assistance 

Following a disaster declaration by the President, FEMA makes 

assistance for recovery from the disaster available to eligible applicants. 

This chapter describes the process through which this assistance 

becomes available. 

PROCESS.OvERvIEW 

The PA Program is implemented through the steps listed below, each of 

which is described in this chapter. 

	 a Preliminary Damage Assessment (PDA) is performed and 

Immediate Needs Funding and the need for Expedited Payments 

are identified. 

 an Applicants’ Briefing is held.



 potential applicants submit the Request for Public Assistance.



 a PAC Crew Leader (Public Assistance Coordinator) is assigned to 
 

each applicant. 

 the PAC Crew Leader holds a Kickoff Meeting with the applicant. 

 the applicant’s specific needs are identified and cost estimates 

developed through the project formulation process. 

 cost estimates for small projects that have been prepared by the 

applicant are checked through the validation process. 

 FEMA approves and processes funding for the applicant’s projects. 

Standard.Operating.Procedures 

FEMA has developed a series of Standard Operating Procedures 

(SOPs) that provide guidance for FEMA, the State and applicants on 

Chapter 3: Applying for Public Assistance 
the processes discussed in this Chapter. SOPs are available on FEMA’s 

website (www.fema.gov/government/grant/pa/). The following documents 

are included. 

 9570.2 Public Assistance Coordinator 

 9570.4 Kickoff Meeting 

 9570.5 Project Formulation 

 9570.6 Validation of Small Projects 

 9570.7 Immediate Needs Funding 

 9570.8 Cost Estimating Format for Large Projects 

 9570.9 Historic Review 

PRELIMINARy.DAMAGE.ASSESSMENT,.IMMEDIATE.NEEDS. 

FuNDING,.AND.ExPEDITED.PAyMENTS 

The Preliminary Damage Assessment (PDA) is performed to document 

the impact and magnitude of the disaster on individuals, families, 

businesses, and public property and to gather information for disaster 

management purposes. FEMA, the State, and an applicant representative 

participate in this effort. The information gathered during the PDA process 

is used to determine whether Federal assistance should be requested by 

the Governor and forms the basis for the disaster declaration. 

While conducting the PDA, potential urgent needs in the immediate 

aftermath of the disaster may be identified. If the President declares a 

disaster and if the State has requested it, FEMA may provide Immediate 

Needs Funding (INF) to an applicant for emergency work that must be 

performed immediately and paid for within the first 60 days after the 

disaster declaration. 

Immediate Needs Funding (INF) is for emergency work that must be 

performed immediately and paid for within the first 60 days after the 

disaster declaration. This form of funding must be requested by the State. 

Activities eligible for INF typically include: 

 debris removal; and 

 emergency protective measures. 

0 Chapter 3: Applying for Public Assistance 
The funding may be used to cover such costs as overtime payroll, 

equipment costs, materials purchases, and contracts when these costs 

are incurred for emergency work. The amount of INF is limited to 50 

percent of the PDA estimate of emergency work. 

INF is not intended for those emergency work items that involve 

environmental or historic preservation concerns, work covered by 

insurance, or items of work that will require longer than 60 days to 

complete. Some examples of work for which INF is not appropriate are: 

	 demolition of historic structures or parts of historic structures; 

	 emergency work efforts covered by an existing insurance policy 

(such as building demolition or the removal of building debris); 

	 debris removal and disposal within the Coastal Barrier Resources 

system; and 

	 large debris removal/disposal projects or major demolition of 

destroyed building projects that will require more than 60 days to 

complete. 

PWs will be labeled as “INF.” 

Expedited Payments are made for applicants who participated in the 

PDA and who have applied for Public Assistance. FEMA will obligate 

50 percent of the Federal share of the estimated cost of work under 

Categories A and B as estimated during the PDA. Payment for Category 

A will be within 60 days after the estimate was made and no later than 90 

days after the Request for Public Assistance was submitted. Expedited 

payments are not intended for work that involves environmental or historic 

preservation concerns or work covered by insurance. The payments will 

need to be reconciled with actual costs. PWs will follow the normal PW 

process. 

APPLICANTS’.BRIEFING 

An Applicants’ Briefing is a meeting conducted by a representative of 

the State for potential Public Assistance applicants. The briefing occurs 

after an emergency or major disaster has been declared and addresses 

application procedures, administrative requirements, funding, and 

program eligibility criteria. 

The State representative is responsible for notifying potential applicants 

(State and local governments and PNPs) of the date, time, and location 

Chapter 3: Applying for Public Assistance 
of the briefing. The size of the disaster area and the number of possible 

applicants determine whether more than one briefing is held. FEMA 

personnel participate in the briefing to clarify issues regarding eligibility, 

floodplain management, insurance requirements, environmental and 

historic preservation considerations, hazard mitigation, and Federal 

procurement standards. To obtain the maximum benefit from the 

information presented at the briefing, each applicant should send 

representatives from each of the following: 

 management; 

 public works; and 

 finance. 

REquEST.FOR.PuBLIC.ASSISTANCE 

The Request for Public Assistance (Request) is an applicant’s official 

notification to FEMA of the intent to apply for Public Assistance. A copy 

of this form is shown in Figure 5. The form outlines general information 

identifying the applicant, including the applicant’s name, address, and 

primary and secondary contacts. 

Typically, the Request form is submitted at the Applicants’ Briefing. If an 

applicant is unable to submit the Request at the briefing, the applicant 

must submit the form within 30 days of the date of designation of the area 

(county, parish, etc.) for Public Assistance. An applicant need not wait 

until all damage is identified before requesting assistance. Federal and 

State personnel will review each Request to ensure applicant eligibility. 

Once a Request has been submitted, the project formulation process can 

begin. 

ASSIGNMENT.OF.THE.PuBLIC.ASSISTANCE.COORDINATION. 

(PAC).CREW.LEADER 

Once the Request has been forwarded to FEMA, the PAC Crew Leader 

is assigned to the applicant. The PAC Crew Leader is a program 

expert (FEMA or State) who serves as the applicant’s customer service 

representative on PA Program matters and manages the processing of the 

applicant’s projects. The PAC Crew Leader: 

 Chapter 3: Applying for Public Assistance 
Figure 5: Request for Public Assistance 

SAMPLE

Chapter 3: Applying for Public Assistance 
	 conducts a kickoff meeting with the applicant to discuss the 

program and its application to the applicant’s specific needs; 

	 works with the applicant to develop projects; 

	 obtains the appropriate technical assistance, if required, for the 

applicant’s project(s); 

	 reviews projects for compliance with applicable laws, regulations, 

and policies; 

	 ensures that any Special Considerations associated with a project 

are identified and reviewed; and 

	 ensures that the applicant’s Case Management File is maintained. 

kICkOFF.MEETING 

This meeting differs from the Applicants’ Briefing conducted by the 

State at the onset of disaster operations. While the Applicants’ Briefing 

describes the application process and gives a general overview of the 

PA Program, the Kickoff Meeting is conducted by the PAC Crew Leader 

and designed to provide a much more detailed review of the PA Program 

and the applicant’s needs. The meeting is the first step in establishing a 

partnership among FEMA, the State, and the applicant and is designed to 

focus on the specific needs of that applicant. The meeting focuses on the 

eligibility and documentation requirements that are most pertinent to an 

applicant. 

The PAC Crew Leader also discusses Special Considerations, such 

as insurance, hazard mitigation opportunities, and compliance with 

environmental and historic preservation laws, including floodplain 

management issues, that could potentially affect the type and amount 

of assistance available and the documentation needed. Special 

Considerations are discussed in Chapter 4. If any Special Considerations 

issues are anticipated, the appropriate Technical Specialist (Specialist) 

should be invited to attend the meeting. 

PROjECT.FORMuLATION 

Project formulation is the process of identifying the eligible scope of work 

and estimating the costs associated with that scope of work for each 

 Chapter 3: Applying for Public Assistance 
of the applicant’s projects. This section describes the elements of the 

project formulation process. 

Small.and.Large.Projects 

A project is a logical method of performing work required as a result of 

the declared event. The applicant is responsible for identifying all work 

that is required as a result of the disaster. 

To facilitate project review, approval, and funding, projects are divided 

into small and large projects based on the monetary threshold established 

in Section 422 of the Stafford Act and elaborated on in 44 CFR 

§206.203(c). Small projects are those projects with a total estimated cost 

below the threshold, and large projects are those projects with a total 

estimated cost at or above the threshold. The threshold is adjusted each 

fiscal year to account for inflation and published in the Federal Register. 

For Federal fiscal year 2007, the threshold is $59,700. The determination 

of the threshold that will be used for a disaster is based on the declaration 

date of the disaster, regardless of when project approval is made or 

when the work is performed. Projects are categorized as large or small 

based on the eligible damage cost of the approved PW. Subsequent PW 

versions prior to closeout affect categorization as large or small. Funding 

methods for small and large projects differ as explained below. 

Small Projects. Small project funding is based on estimated costs, if 

actual costs are not yet available. Payment is made on the basis of the 

initial approved amount, whether estimated or actual. Even if not all funds 

are expended on the project, the Federal share amount is not changed. 

Revisions to the initial PWs may be required if there are omissions or 

changes in scope; revisions to PWs may result in changes in funding level 

and/or category. Payment methods are described in more detail on page 

109 of this guide. 

Large Projects. Large project funding is based on documented actual 

costs. Because of the complexity and nature of most large projects, 

however, work typically is not complete at the time of FEMA approval. 

Therefore, most large projects initially are approved based on estimated 

costs. Funds generally are made available to the applicant on a progress 

payment basis as work is completed. When all work associated with the 

project is complete, the State performs a reconciliation of actual costs 

and transmits the information to FEMA for consideration for final funding 

adjustments. Payment methods are described in more detail on page 109 

of this guide. 

Chapter 3: Applying for Public Assistance 
The.Project.Worksheet. 

An applicant has 60 days following the first substantive meeting, usually 

the Kickoff Meeting, with FEMA to identify and report damaged facilities 

to FEMA. The PW is the primary form used to document the location, 

damage description and dimensions, scope of work, and cost estimate 

for each project (Figure 6). It is the basis for the grant. 

The applicant may choose to prepare PWs for small projects and submit 

them to the PAC Crew Leader. If the applicant opts to prepare small 

project PWs, the applicant must submit them to the PAC Crew Leader 

within 60 days of the Kickoff Meeting to go through the validation 

process, although FEMA or the State may set an earlier deadline. See 

pages 106–108 for a further discussion of validation. Applicants are 

strongly encouraged to submit PWs as soon as possible to expedite the 

assistance process. 

If the applicant requires assistance with the preparation of PWs, the PAC 

Crew Leader may assign a Project Specialist (Project Officer) or Technical 

Specialist (Specialist) to provide the applicant with technical assistance. 

For large projects, a Project Specialist is responsible for working with 

the applicant to prepare the PW. The Project Specialist may lead a team 

that includes a representative of the State and one or more Technical 

Specialists, depending on the type and complexity of the project. 

The applicant is responsible for requesting inspections and changes in 

PWs at any point in the grant process when changes in the project or its 

costs are identified. The State and FEMA will evaluate the information 

and, if significant, take appropriate action. 

 Chapter 3: Applying for Public Assistance 
Figure 6: Project Worksheet 

SAMPLE

Chapter 3: Applying for Public Assistance 
Combining.Work.and.Creating.Projects 

The applicant, in coordination with the PAC Crew Leader, may combine 

work items into projects. In this manner, the projects may be organized 

around the applicant’s needs. A project may consist of one item of work, 

such as repairs to a single structure, or work that occurs at multiple sites, 

such as repairs to several washouts along a road. Table 7 describes 

generally accepted methods of combining projects. It is the responsibility 

of the PAC Crew Leader to ensure that the resulting project is logical and 

consistent with other criteria described below. 

Table 7: Combining Work 

Method Explanation 

Type of Facility an applicant could combine all sewer pump stations or 

gravel roads together 

System an applicant could combine repair of several breaks in a 

water distribution system together 

Boundaries an applicant may have divided power lines into sectors or 

a road department into divisions for ease of operations 

Method of Work one contract could be a project or a group of contracts let 

to one contractor could be a project 

Note that emergency work and permanent work may be combined 

into one project only when the emergency work is incidental to the 

permanent work. For example, if storm-generated debris must be 

removed from a building before the building can be repaired, the project 

could include both the debris removal and the repair work. If multiple 

sites are combined into one project with a total estimated cost above the 

large project threshold, that project will be considered a large project. 

Categories of permanent work may not be combined. A Project Specialist 

will be assigned to work with the applicant to complete the PW for that 

project. 

Responsible officials should consider preparing separate PWs if Special 

Considerations (e.g., insurance, hazard mitigation, and environmental 

and historic preservation issues) are of concern for individual sites. 

Compliance requirements of a particular Special Considerations issue for 

the one site could delay funding for other sites, if grouped on one PW. 

FEMA regulations state that individual projects of less than $1,000 in 

estimated costs are not eligible. However, it is acceptable to combine 

sites less than $1,000 in estimated costs into one PW when the work 

meets the conditions shown above for combining sites. Separate sites 

 Chapter 3: Applying for Public Assistance 
less than $1,000 in estimated costs without a reasonable relationship to 

other sites may not be combined; they are ineligible. 

Identifying.the.Damaged.Facility 

If a project is a single site, record the name of the facility and its basic 

function (if necessary), e.g., City Library or Friendship Park. If the project 

is comprised of multiple sites, and possibly a combination of emergency 

work and a category of permanent work, the damaged facility title may 

be more general. For instance: Hill’s County Sector A Debris Removal 

or Chester Elementary School Campus. For these cases, more specific 

names and location information should be provided for each site within 

the Damaged Description and Dimensions area of the PW. Detailed maps 

and sketches may be necessary to identify each location. 

Project.Location 

The exact location of the damaged facility or area where the disaster 

costs covered by the project were or will be incurred must be identified. 

This information should be specific enough to enable other field personnel 

to locate the facility easily if a site visit is necessary. If possible, the 

precise latitude and longitude of the damaged site should be included. 

Location examples are: 

	 Latitude: 25.69387 / Longitude: -80.16359 

	 5520 Harrison Ave N.W., Springdale, Minnesota 55309 

	 0.20 mile west of intersection of County Rd. 22 and County Rd. L 

	 Northwest sector bound by King Street, Main Street, and Shady 

Canal 

When a project combines several damage sites, a general location 

reference should be included in the Location block and more detailed 

information to identify specific locations for each individual site should 

be provided in the Damage Description block. For instance, if debris 

removal were performed within numerous streets to clear emergency 

evacuation routes, an entry of “county evacuation route” may be provided 

in the Location block. Specific roadways would then be identified in the 

Damage Description section and located on accompanying maps. 

Chapter 3: Applying for Public Assistance 
Damage.Description.and.Dimensions 

When appropriate, a brief description of the facility should introduce this 

block. For example “Highway 20, a two-lane asphalt surface road,” or 

“Smith Library, a two-story, steel framed, brick-faced building.” The cause 

of damage, a description of the damaged elements of the facility, and the 

dimensions of the damaged elements must be included on the PW. 

All damage must be documented. Damage sustained as a direct result 

of the disaster event should be differentiated from pre-existing or nondisaster related damage. The specific cause of damage must relate 

to the incident for which the disaster was declared. It is important to 

completely describe the cause of damage because it can affect eligibility 

determinations. For instance, consider the two situations described 

below. 

	 If an uninsured public building located in the 100-year floodplain is 

damaged by wind, the total cost of repairs is eligible. However, if 

the same building is damaged by a flood, the amount of assistance 

would be reduced by the maximum amount of flood insurance 

available under the National Flood Insurance Program. Both 

scenarios could occur in the same disaster. 

	 Widespread “alligator cracking” of roads generally is not eligible 

for repair because it indicates damage that was present before the 

disaster. However, cracking in specific areas due to uplift from soils 

saturated by floodwaters is eligible for repair. 

The damage must be described in terms of the facility, features, or 

items requiring repair. All damaged elements must be clearly defined in 

quantitative terms with physical dimensions (such as length, width, depth, 

and capacity). Without appropriate dimensions of the damaged elements, 

proper estimates of material quantities cannot be developed. 

In some disasters, applicants may perform emergency protective 

measures work to protect against a threat to improved property before, 

during, or immediately after the disaster. For such situations, the PW 

should contain a brief description of the threat and of the threatened 

improved property. 

00 Chapter 3: Applying for Public Assistance 
Scope.of.Work 

The scope of eligible work necessary to repair the damage must be 

completely described and correspond directly to the cause of damage. 

The work should be specified as an action with quantifiable (length, 

width, depth, capacity) and descriptive (brick, wood, asphalt, timber 

deck bridge) terms. The scope of work should not be described only 

as “restore to pre-disaster design” If part of the work is completed 

prior to project approval, the work that has been completed should be 

distinguished from the work remaining. 

Any other information that is pertinent to the scope of work should be 

documented, such as: 

	 eligible codes and standards, providing copies of specific codes 

and standards, especially if proposed repairs or replacements 

exceed the pre-disaster design; 

	 evidence of pre-disaster damage, such as cracks on a steel bridge 

covered by rust and corrosion; 

	 pre-disaster inspection reports noting deficiencies; 

	 ineligible work, maintenance, inactive facilities, responsibilities of 

Other Federal Agencies, etc.; 

	 reference to a Hazard Mitigation Proposal if one is included for the 

project; 

	 indication that the project is an Improved Project, if applicable. A 

description of the overall project must be included; 

	 any special equipment or construction approach, such as very 

heavy trucks, access roads, staging areas, coffer dams, etc.; and 

	 a description of the larger action, if the project is part of one, e.g., 

one building within a complex. 

If additional damage to the facility is found after the PW is completed, it is 

necessary to document that damage, show how the damage is disasterrelated, and request a re-inspection by FEMA. 

Chapter 3: Applying for Public Assistance 0
Examples: 

Damage Description and Dimensions: 

Floodwaters from Fern Creek overtopped Fernwood Drive, 

a 26-ft. wide roadway with 3-in. asphalt pavement and 8-in. 

aggregate base, located in the Village of Bolingbrook. The 

floodwaters washed out a 150-linear foot (LF) by 26-LF section 

of the roadway pavement and aggregate base. Additionally, 

the fill embankment—26-ft. wide (top) x 4-ft. high x 42-ft. wide 

(bottom)—was washed out for a length of 100 LF beneath the 

damaged section of roadway. Floodwaters damaged 300 LF of 

steel guardrail (150 LF on each side) along the entire stretch of 

the washed out road. 

Scope of Work: 

Replace fill embankment with unclassified fill for 100-LF x 4-ft. 

(high) x 26-ft. (top width) x 42-ft. (bottom width). Replace 150-LF 

x 26-ft. x 8-in. base course and 150 LF x 26-ft. x 3-in. asphalt 

pavement. Remove and replace 300 LF of steel guardrail. Place 

100 LF of 1-ft. thick x 2-ft. high riprap along the stream side of 

the constructed embankment slope in accordance with Village 

of Bolingbrook Code provision #101A. 

Damage Description and Dimensions: 

Floodwaters and debris damaged several facilities within 

Riverside Park in the Town of Springville. Six toilets and four 

sinks in the public restroom became clogged and rendered 

unusable. Nine 4x8-foot, redwood picnic tables and four heavy 

metal barbecue grills with 1x2-foot cooking surfaces were 

washed away. Floodwaters and floating debris demolished 300 

LF of 8-ft high chain link fence. 100 CY of sediment and other 

debris were scattered over the 125,000 SF area of the park. 

Scope of Work: 

Repair (unclog and clean) six public restroom toilets and four 

sinks using 40 hours of force account labor. Replace nine 

redwood picnic tables and four barbecue grills. Repair and 

reinstall 300 LF of existing chain link fence. Remove and 

dispose of 100 CY of debris. 

0 Chapter 3: Applying for Public Assistance 
Cost.Estimate 

FEMA may grant funds on the basis of actual costs or on estimates of 

work to be completed. The three primary methods for determining costs 

are time and materials, unit cost, and contracts. If work is completed at 

the time of the site visit, actual costs should be used. 

Work to be completed:	 If the work has not been initiated, the unit cost 

method should be used whenever possible. 

Work complete:	 If the work was completed by force account 

labor, actual personnel, materials, and 

equipment costs are used (time and materials 

method.) If a contractor performed the work, 

reasonable actual contract costs are used. 

Time and Materials. The time and materials method is used to 

summarize actual costs of force account labor, equipment, and materials. 

Costs must be documented by payroll information, equipment logs or 

usage records, and other records, such as invoices, receipts, or work 

orders prepared by the applicant. This method also may be used for work 

to be completed, if appropriate. 

As stated in Chapter 2, FEMA publishes a national listing of equipment 

rates. FEMA equipment rates, however, do not include operator 

costs. The applicant should identify operator labor separately. FEMA 

equipment rates do not apply to contracted or rental equipment, unless 

the equipment is rented from another public entity. An applicant’s own 

equipment rates or rates established by the State may be used, provided 

that they meet the criteria outlined in Chapter 2. 

Unit Cost. The unit cost method is usually used to develop PWs for work 

to be completed. Under this method, unit costs are applied to specific 

elements of the scope of work. Typically unit prices are based on inplace costs, incorporating site preparation, materials, labor, equipment, 

insurance, overhead, and profit (if by contract) for all activities needed to 

complete that item of work. For example: 

The $14 per linear foot unit cost to replace concrete curb and gutter 

includes all costs for setting up and breaking down the forms and 

buying, pouring, and finishing the concrete. In other words, the $14 

includes the cost of labor, equipment, and materials. Removal of the 

damaged old material may be included as a separate work item with 

its own unit price. 

Chapter 3: Applying for Public Assistance 0
There are several sources that may be used in the preparation of 

estimates based on unit costs. These sources, provided in their order of 

preference, include: 

1. State or local data from previously completed projects; 

2. commercial estimating sources; and 

3. FEMA cost codes. 

Contracts. Contract pricing is used to determine the cost of work for 

which the applicant has used labor, equipment, and material from an 

outside source. In general, and assuming that the contract was awarded 

following Federal procurement guidelines, contract costs are used for 

work already complete. In some cases, contract information may be used 

to estimate costs for work that is just beginning or still underway. If work 

has not yet begun on a project, but a contract has been bid or let, the 

contract price can be used. 

Example: 

Damaged Facility: Utility shed 

Location: 	 419 Ocean Avenue South, Williams High 

School Utility Shed 

Damage Description and Dimensions: Wood structure: 

approximately 75 feet by 75 feet with 15-foot high walls. 

Painted interior drywall sustained cracking due to the 

earthquake. Tile flooring was displaced and destroyed. All 

damaged equipment is covered by the school district’s 

insurance policy. 

Scope of Work: Seal cracking and paint drywall on all four 

15-foot high x 75-foot wide walls. Remove and replace the 

entire 75-foot long x 75-foot wide tile floor. 

Project Cost: 

quantity/ unit. 

Item Code Narrative unit Price Cost 

1 5187 Seal 4500/SF $0.35 $1,575 

2 5082 Paint 4500/SF $0.48 $2,160 

3 5060 Tile 5625/SF $2.25 $12,656 

Total $16,391 

0 Chapter 3: Applying for Public Assistance 
Cost.Estimating.Format.(CEF) 

FEMA uses a cost estimating methodology called the Cost Estimating 

Format (CEF) for Large Projects to better estimate the total cost of 

large projects. The CEF is a forward-pricing model that allows FEMA to 

account for all possible costs associated with projects for which the base 

costs of labor, materials, and equipment meet or exceed the large project 

threshold. FEMA uses experienced cost estimators as part of the project 

formulation team for projects on which the CEF is used. 

The CEF should only be used on large projects for which the permanent 

restorative work is 90% or less complete. Projects greater than 90% 

complete are not required to be estimated using the CEF. In these cases, 

the Project Specialist should use the actual costs of the eligible work and 

extend those costs to cover the remaining work. 

The CEF relies on the development of a clear definition of the scope of 

work that is eligible for Public Assistance. Once this scope of work has 

been developed, the CEF is applied. Part A represents the base cost of 

completing the project; it includes the labor, materials, and equipment 

necessary to complete each item of the scope of work. Parts B through H 

contain job-specific factors that are added to the base cost determined in 

Part A. These factors are described below: 

Part B includes construction costs not typically itemized in Part A, such 

as the contractor’s supervision costs. 

Part C reflects construction cost contingencies and addresses budgetary 

risks associated with project complexity during the design process. 

Part D accounts for the contractor’s home-office overhead, insurance, 

bonds, and profit. 

Part E accounts for cost escalation over the life of the project. 

Part F includes fees for special reviews, plan checks, and permits. 

Part G is the applicant’s reserve for change orders, hidden damages, and 

differing site conditions after construction starts. 

Part H accounts for the applicant’s cost to manage the design and 

construction of the project. 

The construction-related costs represented by Parts B through H are 

usually encountered during the course of construction and can normally 

be expected to occur. However, these construction-related costs may 

already be a component of the Part A costs. In all cases, the cost 

Chapter 3: Applying for Public Assistance 0
estimator determines the makeup of the unit costs used in Part A, before 

applying one or more of the Parts B through H factors. Costs considered 

in Part A cannot be duplicated in Parts B through H factors. 

Table 8 depicts the hierarchy of preferred pricing with actual costs for the 

eligible completed work favored first and R.S. Means cost data favored 

least. FEMA cost data is normally not used when estimating large project 

costs by means of the CEF. 

Table 8: Preferred Pricing When Using the CEF 

Types.of.Costs.used.in.Part.A.and 

Typical.Application.of.Factors 

Completed. Local.Cost. R.S..Means. 

CEF.Part Work Bid.Tab Data Cost.Data 

B * * * Y 

C * * * Y 

D * * * Y 

E * * Y Y 

F * Y Y Y 

G * Y Y Y 

H Y Y Y Y 

Y = Part or Factor Normally Applied * = Part or Factor Normally Not Applied 

Specific instructional guidance relating to the application of the CEF 

should be obtained from FEMA’s website. (Go to www.fema.gov/ 

government/grant/pa/resources/ and select from among the Cost 

Estimating Format resources.) 

vALIDATION 

The applicant may prepare PWs for small projects without assistance 

from FEMA or the State. Validation is conducted for those applicants 

who prepare their own small project PWs. The validation procedures 

apply only to small projects. Large projects are developed by the Project 

Specialist, working with the applicant, and are submitted directly to the 

PAC Crew Leader for review and processing. 

The purpose of the small project validation process is to ensure that: 

 the applicant has developed complete, accurate scopes of work; 

0 Chapter 3: Applying for Public Assistance 
	 the work and costs included in the PWs are eligible for Public 
 

Assistance; and



	 the cost estimates are accurate and reasonable. 

Typically, 20 percent of an applicant’s small projects are assessed in the 

validation process. However, if significant discrepancies are found in the 

sample, a second sample of 20 percent is assessed. If discrepancies are 

again found in that sample, the applicant will be provided with technical 

assistance for review of all small projects. 

Unless FEMA or the State has set an earlier deadline, an applicant 

typically has 60 days from the date of the Kickoff Meeting to submit small 

project PWs. The 20 percent sample only applies to projects submitted 

within this 60-day deadline. Small project PWs submitted after 60 days 

are subject to 100 percent validation. For this reason, applicants are 

encouraged to submit small project PWs as early as possible. 

FEMA validates projects for facility, work, cost, and contract eligibility, 

and Special Considerations. Typically, a site visit is required during the 

validation process. Funding for all small projects (except those with 

Special Considerations) that are in the group submitted for validation will 

be obligated at one time as long as any required corrections are made. 

Small projects with Special Considerations will be obligated as each one 

completes the necessary Special Considerations reviews. Refer to the 

Public Assistance Applicant Handbook (FEMA 323) and FEMA Policy 

9570.6, Standard Operating Procedures on Validation of Small Projects, 

for additional discussion regarding the validation process. 

Facility and Work. FEMA reviews projects to ensure that the damaged 

facility and work meets all applicable eligibility criteria, as described in 

Chapter 2. The damage description and scope of work must be accurate 

and complete. The review ensures that the scope of work is appropriate 

for the type and dimensions of damage, and that Special Considerations 

are clearly documented (these considerations are described in Chapter 4). 

Cost. Costs must be error-free and eligible. Applicants must provide 

labor, equipment, and materials summaries for use in the review. Items 

that will be checked include: 

	 identification of persons whose wages are being included in the cost 

summary, by date, position, and hours worked; 

	 separate summaries for overtime and regular time hours with the 

fringe benefit rates identified for both; 

Chapter 3: Applying for Public Assistance 0
	 a summary of operator hours for any equipment being claimed 

(operator hours must match or exceed equipment hours; note that 

regular time hours for emergency work, even though ineligible, are 

needed to justify equipment usage); 

	 identification of volunteer, prison, or reassigned labor; and 

	 copies of purchase orders, invoices, inventory records, or stock 

tickets with material type and quantity included. 

Contract. FEMA reviews contracts to ensure that they adhere to 

appropriate procurement regulations, are based on reasonable costs, and 

pertain to the eligible scope of work. The applicant must provide FEMA 

with a copy of the contract. 

Special Considerations. The Technical Specialist who conducts the 

validation must note possible Special Considerations, such as insurance, 

hazard mitigation, and compliance with environmental and historic 

preservation laws, including floodplain management, and report those 

considerations to the PAC Crew Leader for further review, as necessary. 

Insurance payments must be resolved prior to applicant closeout. 

GRANT.PROCESSING 

FEMA and the State share responsibility for making PA Program funds 

available to the applicant. FEMA is responsible for determining eligibility, 

conducting environmental/ historic preservation review, approving 

projects, and making the Federal share of the approved amount (that is, 

the grant) available to the State through a process known as obligation. 

Funds that FEMA has obligated are available to the State via electronic 

transfer, but reside in a Federal account until the State is ready to award 

grants to the appropriate applicants. The State cannot request funds 

more than three business days before the day it disburses them. The 

State is responsible for providing the State share of the eligible costs and 

for notifying the applicant that funds are available. The State must use 

methods and procedures for payment that minimize the time between 

the transfer of funds to the State and disbursement by the State in 

accordance with Federal cash management requirements. For applicants 

requesting Immediate Needs Funding or Expedited Payment, the State 

should request funds expeditiously to meet the intent of the funding (see 

pages 90–91). 

0 Chapter 3: Applying for Public Assistance 
Methods.of.Payment 

The method of payment to the applicant is dependent on the type of 

project. 

Small Projects. Payment for small projects is made at the time of project 

approval on the basis of the estimate. The State is required to make 

payment of the Federal share to the applicant as soon as practicable after 

FEMA has obligated the funds. 

Once all small projects are complete, the State must certify that all work 

has been completed in accordance with the approved scope of work on 

the PW, in compliance with FEMA standards and policies, and that all 

payments due have been made. This certification does not specify the 

amount spent on the projects, only that the projects were completed. If a 

small project, including any mitigation work, was not started or was not 

completed, funds will be de-obligated. If the applicant spends less than 

the amount approved by FEMA, the Federal share will not be reduced to 

match actual costs. However, if the applicant incurs costs significantly 

greater than the total amount approved for all small projects, the 

applicant may appeal for additional funding. 

Note that this opportunity applies only to a net cost overrun for all 

small projects combined, not to an overrun for an individual project. 

This policy is based on the fact that small projects with cost underruns 

typically offset those small projects where the applicant experienced 

cost overruns. Such a request for a net cost overrun is considered a first 

appeal, as described on pages 112–114 of this guide. 

Large Projects. Large projects are funded on documented actual 

costs. Because of the nature of most large projects, work typically is 

not complete at the time of project approval; therefore, FEMA obligates 

grants based on an estimated cost. 

Grant funds may not be immediately drawn down by the State. Instead, 

progress payments are made to the applicant as actual costs are 

documented. Upon completion of a large project, an applicant must 

submit documentation to the State to account for all incurred costs. The 

State is responsible for ensuring that all incurred costs are associated 

with the approved scope of work and for certifying that work has been 

completed in accordance with FEMA standards and policies. The State 

then submits documentation of project costs to FEMA for review. FEMA 

may conduct a final inspection as part of this review. Once the review 

is complete, FEMA determines whether funds should be obligated or 

deobligated for the project. 

Chapter 3: Applying for Public Assistance 0
Funding.Options 

Grants for most projects are processed in the manner described above. 

However, an applicant may elect to use a Public Assistance grant for 

activities that are outside of the originally approved scope of work. 

Funding options available to the applicant are described below. 

Improved Projects. When performing permanent restoration work on a 

damaged facility, an applicant may decide to use the opportunity to make 

improvements to the facility while still restoring its pre-disaster function 

and at least its pre-disaster capacity. For example, the applicant may 

decide to lay asphalt on a gravel road or replace a firehouse that originally 

had two bays with one that has three. Projects that incorporate such 

improvements are called improved projects. For the most part, these are 

projects for which the funding for the improvements cannot be separated 

from the costs for the original repair work. 

An applicant may request an improved project for either a small or large 

project. The improved facility must have the same function and at least 

the pre-disaster capacity as that of the pre-disaster facility. Time limits 

that would be associated with repairing the damaged facility to its predisaster design apply to the improved project construction. Funding 

for such projects is limited to the Federal share of the costs that would 

be associated with repairing or replacing the damaged facility to its 

pre-disaster design, or to the actual costs of completing the improved 

project, whichever is less. If eligible repair or replacement costs exceed 

the original estimate and costs can be separately documented (i.e., if 

approved costs can be tracked separately from improvement costs), the 

applicant may appeal the amount of the grant. Any additional costs for 

complying with codes and standards or compliance with environmental 

and historic preservation laws, regulations, and EOs (see Chapter 4) 

required by the construction of the improvements, but not required by the 

original eligible scope of work, are not eligible. The balance of the funds is 

a non-Federal responsibility. Funds to construct the improved project can 

be combined with a grant from another Federal agency; however, Federal 

grants cannot be used to meet the State or local cost-share requirement 

unless the legislation for the other grant allows such use, e.g., the 

Community Development Block Grant (CDBG) program. 

If the original facility is being repaired and improvements are being added, 

FEMA may provide assistance with hazard mitigation under Section 406 

of the Stafford Act. These funds must be applied to the original facility. If 

the improved project involves a complete new facility on the same site or 

on a different site, FEMA cannot approve Section 406 Hazard Mitigation 

0 Chapter 3: Applying for Public Assistance 
funding that may otherwise have been eligible for the original facility. See 

pages 124–127 for further discussion of hazard mitigation. (See FEMA 

Fact Sheet 9580.102, Permanent Relocation.) 

The applicant must obtain approval for an improved project from the 

State prior to the start of construction. Further, any improved project 

that results in a significant change from the pre-disaster configuration 

(that is, different location, footprint, function, or size) of the facility must 

also be approved by FEMA prior to construction to ensure completion of 

the appropriate environmental and/or historic preservation review. 

Alternate Projects. An applicant may determine that the public welfare 

would not be best served by restoring a damaged facility or its function. 

In this event, the applicant may use the PA grant for that facility for other 

eligible purposes. (See FEMA Policy 9525.13, Alternate Projects.) Funds 

may also be used on more than one alternate project, and an applicant 

may request an alternate project in lieu of either a small or large project, 

but only on permanent restoration projects. Funds for debris removal and 

emergency protective measures cannot be used for alternate projects. 

The alternate project must serve the same general area that was being 

served by the originally funded project. The original facility must be 

rendered safe and secure, sold, or demolished. If an applicant opts to 

keep a damaged facility for a later or another use, it will not be eligible 

for FEMA funding in a subsequent disaster unless it is repaired to meet 

codes and standards, and mitigation measures that would have been 

approved are applied. 

In general, alternate project funding may be used to repair or expand 

other selected public facilities, to construct new facilities, to demolish 

the original structure, to purchase equipment, to cover Section 406(d) 

(Stafford Act) insurance reductions on a facility eligible under the PA 

Program, or to fund cost-effective hazard mitigation activities, as long as 

the purpose is to meet a need for governmental services and functions 

in the disaster area. Alternate projects for PNP applicants must be for 

facilities that would be eligible for assistance under Section 406 of the 

Stafford Act. The proposed alternate project may not be located in the 

regulatory floodway and flood insurance will be required if it is located in 

the 100-year floodplain. Funds for alternate projects cannot be used for 

operating costs or to meet the State or local share requirement on other 

Public Assistance projects or projects that utilize other Federal grants. 

406 Hazard Mitigation funds that may have been approved for the original 

facility cannot be applied to an alternate project. All requests for alternate 

projects must be made within 12 months of the Kickoff Meeting and must 

be approved by FEMA prior to construction. FEMA must ensure that the 

Chapter 3: Applying for Public Assistance 
proposed project represents an appropriate use of funds and complies 

with applicable environmental and historic preservation laws. 

Funds for alternate projects for publicly owned facilities are limited to 

90 percent of the approved Federal share of the estimated eligible costs 

associated with repairing the damaged facility to its pre-disaster design, 

or to 90 percent of the Federal share of actual costs of completing the 

alternate project, whichever is less. Funds for alternate projects for PNP 

applicants are limited to 75 percent of the approved Federal share. The 

costs of complying with laws, regulations, and EOs on the damaged 

facility are considered project costs for purposes of calculating the 

grant. Any additional costs for complying with codes and standards 

or compliance with environmental and historic preservation laws, 

regulations, and EOs (see Chapter 4) for the alternate facility are not 

eligible. Mitigation funding cannot be included in the calculation of the 

amount of alternate project funding. A sample calculation follows: 

$130,000 eligible damage 

– 30,000 insurance reduction
 


$100,000 new eligible amount



x .9 to adjust for 10% reduction* 
 

$ 90,000 new project amount
 


x .75 Federal cost share 

$67,500		 maximum amount of Federal funds applicant may 

receive. Applicant must spend at least $90,000 on the 

approved alternate projects to receive $67,500 of Federal 

funds. 

* except for projects of PNP organizations, which are reduced 25% 

Appeals 

The appeals process is the opportunity for applicants to request 

reconsideration of FEMA determinations regarding application for or the 

provision of assistance. There are two levels of appeal. The first level 

appeal is to the RA. The second level appeal is to FEMA Headquarters. 

Typical appeals involve the following: 

	 an entity is not an eligible applicant; 

	 a facility, an item of work, or a project is not eligible for disaster 

assistance; 

	 approved costs are less than the applicant believes to be necessary 

to complete the work; 

 Chapter 3: Applying for Public Assistance 
	 a requested time extension was not granted; 

	 a portion of the cost claimed for the work is not eligible; 

	 the applicant disagrees with the approved Scope of Work on the 

PW; or 

	 the applicant incurs a significant net cost overrun on small projects. 

The applicant must file an appeal with the State within 60 days of the 

applicant’s receipt of a notice of the action that is being appealed. The 

applicant must provide documentation to support the appeal. This 

documentation should explain why the applicant believes the original 

determination is wrong and the amount of adjustment being requested. 

Applicants appealing for a net small project overrun must make 

application within 60 days of completion of the last small project and 

must include cost data on all small projects. The State reviews the appeal 

documentation and request additional information if necessary. The State 

then prepares a written recommendation on the merits of the appeal and 

forwards that recommendation to FEMA within 60 days of its receipt of 

the appeal letter or receipt of additional information that it had requested. 

The State need not endorse the appeal position but must forward all 

appeals it receives. 

The RA reviews the appeal and within 90 days takes one of two actions: 

	 render a decision on the appeal and inform the State of the
 


decision; or



	 request additional information. 

Normally, the applicant has 60 days to provide any additional information, 

and the RA provides a decision on the appeal within 90 days of receipt of 

that information. If the appeal is granted, the RA takes appropriate action, 

such as approving additional funding or sending a Project Specialist to 

meet with the applicant to determine additional eligible funding. 

If an appeal is denied by the RA, the applicant may submit a second 

appeal following the procedures included in the RA’s denial. The applicant 

must submit the second appeal to the State within 60 days of receiving 

the RA’s denial. The State must forward the appeal with a written 

recommendation to the RA within 60 days of receiving the applicant’s 

letter. The RA reviews the information provided with the appeal and 

requests additional information if required. The RA forwards the appeal 

with the recommendation for action to FEMA Headquarters as soon as 

practicable. 

Chapter 3: Applying for Public Assistance 
FEMA Headquarters reviews the appeal and within 90 days renders a 

decision or requests additional information from the applicant. In an 

unusual case involving highly technical issues, FEMA may request an 

independent scientific or technical analysis by a group or person having 

expertise in the subject matter of the appeal. Upon receipt of requested 

information from the applicant and any other requested reports, FEMA 

renders a determination on the appeal within 90 days. Any required 

actions, such as obligation or deobligation of funds, are taken by the RA. 

See 44 CFR §206.206 for the process description. 

CLOSEOuT 

The PA Program is considered programmatically closed when FEMA 

assures that all of the grants awarded under the PA Program for a given 

disaster meet the statutory and regulatory requirements governing the 

program. To achieve programmatic closure, FEMA ensures that all funds 

have been obligated. This includes any compliance with environmental 

and historic preservation requirements and any insurance purchase 

requirements. In addition, FEMA must resolve any appeals before 

programmatic closure is complete. With programmatic closure, FEMA has 

a reasonably well defined understanding of the total amount of Federal 

funds that will be obligated for the disaster. 

Financial reconciliation of the grant, or grant closure, occurs later, when 

FEMA and the State reach agreement that all applicable administrative 

actions related to the PA Program are complete and all program funds 

related to the disaster have been reconciled. At that point, all PA Program 

projects have been completed, the State has awarded all grant funds and 

submitted its final expenditure report to FEMA, and FEMA has adjusted 

the funding level for the program, as appropriate. Once grant closure 

occurs, no additional actions related to the program may occur other than 

possible audits. FEMA may conduct an audit of the program during or 

after grant closure. 

 Chapter 3: Applying for Public Assistance 
CHAPTER.4 

Special

Considerations 

WHAT.ARE.SPECIAL.CONSIDERATIONS? 

FEMA uses the term “Special Considerations” to describe issues other 

than basic program eligibility that affect the scope of work and funding for 

a project. These issues include: 

	 insurance; 

	 hazard mitigation; and 

	 environmental/historic preservation compliance with Federal laws, 

regulations, and EOs, such as those that address the environment, 

floodplains, wetlands, historic preservation, endangered species, 

and environmental justice. 

Each of these issues is described in greater detail in this chapter. 

Timely identification and resolution of Special Considerations issues prior 

to initiation of disaster-related work is critical to the effective delivery of 

the PA Program. If FEMA, the State, and the applicant fail to identify and 

address these issues expeditiously, the following consequences can 

result: 

Loss of Funding. FEMA may be prevented from approving funds for a 

project, or may be required to deobligate funds after the initiation of a 

project. 

Delays. Approval and obligation of funding may be delayed while Special 

Considerations issues are resolved. For example, a funding decision 

may be delayed while FEMA waits for an applicant to submit insurance 

information. 

Legal Action. Citizens, advocacy groups, and others can file lawsuits to 

stop projects funded by FEMA. 

Chapter 4: Special Considerations		 
Loss of Opportunity. Hazard mitigation measures typically are most 

effective when incorporated in the initial repair or replacement of the 

damaged facility. 

Negative Publicity. All of the above create negative publicity for FEMA, 

the State, and the applicants. 

THE.SPECIAL.CONSIDERATIONS.PROCESS 

Special Considerations are a factor in all phases of the recovery process, 

from the PDA through the completion of projects. Processing involves: 

	 collection of data; 

	 review of the data and coordination with the appropriate agencies; 

and 

	 documentation of the process and its results. 

FEMA’s objective is to resolve Special Considerations issues early 

and expeditiously. The PDA is the first step in identifying Special 

Considerations. PDA teams collect Special Considerations information 

through observation and interviews with the local officials. Once recovery 

operations are underway, the scoping process begins. This process 

includes: 

	 identification of potential issues; 

	 coordination with other agencies and organizations; 

	 establishment of procedures for addressing issues; and 

	 coordination among the PA Program staff to ensure that field 

personnel are aware of the issues and the procedures for resolving 

them. 

Depending on the issues prevalent for a specific disaster, FEMA may 

consult with any or all of the following agencies or organizations as part of 

this scoping process: 

	 State insurance commissioner’s office; 

	 FEMA Hazard Mitigation Grant Program office (see the discussion of 

404 Mitigation on pages 124–125); 

	 Federal Insurance Administration (FIA); 

	 Chapter 4: Special Considerations 
	 The Regional Environmental Officer (REO) at the region and the 

Environmental Liaison Officer (ELO) or environmental/historic 

preservation specialists in the JFO; 

	 State Historic Preservation Officer (SHPO) or Tribal Historic 
 

Preservation Officer (THPO); 
 

	 State environmental protection, hazard mitigation, and other 
 

agencies; and



	 USACE, U.S. Fish and Wildlife Service (USFWS), the National 

Marine Fisheries Service (NMFS), and other Federal agencies. 

The scoping process should result in some means for resolving issues, 

such as a clearance letter or memorandum of understanding with the 

appropriate agencies. 

The interface between the PAC Crew Leader (Public Assistance 

Coordinator) and the applicant is the most critical element of the Special 

Considerations process. The PAC Crew Leader has the opportunity to 

interact with the applicant on several occasions, beginning with the 

Kickoff Meeting. The PAC Crew Leader: 

	 brings potential issues to the applicant’s attention; 

	 works with the applicant and specialists to identify issues and 

obtain information that can lead to resolution; 

	 alerts Project Specialists (Project Officers) to potential issues; 

	 identifies projects for which a review is required and assigns the 

appropriate Technical Specialist (Specialist); and 

	 ensures that the appropriate review is completed by a Technical 

Specialist and documented in the applicant’s Case Management 

File. 

It is the applicant’s responsibility to identify the existence of Special 

Considerations issues for each project. Project Specialists, Technical 

Specialists, and PAC Crew Leaders working with these projects must 

ensure that such issues are appropriately documented on the PW. A 

standard set of questions has been developed to assist in identifying 

Special Considerations issues. The questions reflect each of the areas 

of concern and are intended to highlight elements of the applicant’s 

projects that could trigger a Special Considerations review. The PAC 

Crew Leader should review these questions, which appear on the 

Special Considerations Questions form, during the Kickoff Meeting and 

Chapter 4: Special Considerations		 
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 Chapter 4: Special Considerations 
again when PWs are submitted. An explanation must be provided in the 

comment field if the applicant or PAC Crew Leader answers “yes” or 

“unsure” to any of these questions. This form is shown in Figure 7. 

In accordance with Section 312 of the Stafford Act, the PA Program 

cannot duplicate benefits from other sources, such as proceeds from an 

insurance policy. Therefore, FEMA is required to reduce the amount of 

assistance for eligible work by the amount of any actual or anticipated 

insurance proceeds available for that work. FEMA also must limit flood 

disaster assistance for insurable facilities in Special Flood Hazard Areas 

(described below). Section 406(d) of the Stafford Act requires a reduction 

in assistance for such facilities if they don’t have flood insurance or 

if their flood insurance coverage is inadequate (see pages 120–122). 

Section 311 of the Stafford Act requires an applicant to purchase and 

maintain insurance for permanent work projects, where that insurance 

is reasonably available, as a condition for receiving disaster assistance. 

These criteria are discussed in more detail in the paragraphs that follow. 

Items and facilities that typically are insured include: 

 buildings; 

 contents; 

 equipment; and 

 vehicles. 

INSuRANCE 

An applicant may have insurance coverage for other items, facilities, or 

types of work, such as debris removal, snow removal, temporary facilities, 

or operating costs. If the applicant’s policies contain provisions for 

cleanup, debris removal, and demolition, FEMA must deduct insurance 

proceeds for these activities from eligible costs of PA Program grants. 

While insurance policies typically do not pay for voluntary hazard 

mitigation items, they often cover upgrades necessary to comply with 

current codes and standards. 

When an insurance policy covers both insured eligible and insured 

ineligible damages, such as both property and business income losses, 

without specifying limits for each type of loss, FEMA will apportion the 

anticipated recovery to be deducted from eligible costs between the 

two based on the ratio of insured eligible to insured ineligible damages. 

Chapter 4: Special Considerations 
Similarly, if deductible amounts are unspecified between the types of 

losses, the amount of deductible that will be eligible will be based on the 

same ratio. 

In order to prevent delays or loss of FEMA funding, it is critical that the 

applicant: 

	 discuss all insurance coverage with the PAC Crew Leader; 

	 report all facilities and equipment with prior disaster insurance 

requirements; 

	 provide all pertinent insurance information, policies, and statements 

of loss to FEMA as soon as possible; and 

	 pursue payment under their insurance policies to maximize potential 

benefits. 

General.Property.Insurance 

FEMA uses the term “general property insurance” to describe all perils 

except for flood. This could include perils such as fire, wind, rain, and 

earthquake. Coverage for these perils generally includes buildings, 

contents, personal property, and other items. Once the amount and 

availability of coverage have been determined, an appropriate reduction 

in eligible project costs can be made based on anticipated insurance 

proceeds. If an applicant has already received an insurance payment at 

the time of project approval, FEMA will review the settlement to determine 

if it is in accordance with the policy. FEMA may limit funding if the 

applicant’s policy provides coverage which should be pursued from the 

insurer. Legal costs incurred in pursuing insurance settlements may be 

subtracted from such proceeds before reduction of eligible costs. 

The.National.Flood.Insurance.Program.and.Flood.Insurance 

As stated above, the Stafford Act includes specific provisions for 

insurance of facilities located in floodplains. Most property insurance 

does not cover flood damage; instead, a separate flood insurance policy 

must be purchased to obtain this coverage. In 1968, Congress created 

the National Flood Insurance Program (NFIP) to address the nationwide 

lack of affordable flood insurance and to stimulate local programs to 

reduce the risk of damage caused by floods. Under the NFIP, federally 

backed flood insurance is available in communities that agree to adopt 

and enforce floodplain management ordinances to reduce future flood 

damage. 

0	 Chapter 4: Special Considerations 
To support the NFIP, FEMA publishes Flood Insurance Rate Maps 

(FIRMs). These maps depict Special Flood Hazard Areas, defined as 

those areas subject to inundation during a 100-year flood (a flood having 

a 1 percent chance of occurrence in a given year). The maps also show 

500-year floodplains (areas subject to inundation by a flood having a 

0.2 percent chance of occurrence in a given year), coastal high hazard 

areas, floodways, Coastal Barrier Resources System units, and Otherwise 

Protected Areas. 

The extent of coverage available varies depending on factors such as 

exposure to flooding, location, and loss history due to flooding. A list of 

properties that are insurable under the NFIP is provided in 44 CFR Part 

61. Examples of insurable properties include buildings and contents, 

building additions, and detached garages. (Under the NFIP, flood 

insurance coverage is provided separately for buildings and contents.) 

Examples of properties that are not covered by the NFIP include vehicles, 

pumping stations that do not qualify as buildings, water treatment plants 

that are primarily below ground, boat docks, swimming pools, and items 

that are stored but not normally located in basements. 

Section 406(d) of the Stafford Act mandates a special reduction in the 

amount of Public Assistance funding for a facility (facility meaning each 

separate building or structure insurable under NFIP Coverage A – 

Buildings) that is: 

	 insurable under the NFIP; 

	 located in a Special Flood Hazard Area, as shown on a FIRM; and 

	 damaged by floodwaters. 

For insurable facilities that do not have flood insurance or carry 

inadequate flood insurance, FEMA will reduce eligible project costs by the 

lesser of: 

	 the maximum amount of insurance proceeds that could have been 

obtained from a standard NFIP flood insurance policy; or 

	 the value of the facility at the time of the disaster. 

After the reduction, FEMA assistance is available for: 

 reasonable deductible (limited to minimum available under NFIP), 

but only for the first disaster and not for subsequent disasters; 

	 items not covered by the NFIP; and 

	 damage in excess of limits of a standard NFIP policy. 

Chapter 4: Special Considerations		 
The regulations at 44 CFR §59.2 state that Federal financial assistance 

with respect to insurable buildings within an identified Special Flood 

Hazard Area shall not be provided in a sanctioned or non-participating 

community. There may be a limited exemption from the Section 406(d) 

reduction for eligible PNP facilities when a community is sanctioned or 

not participating in the NFIP. Reduction is not made, but assistance is not 

allowed unless the community joins the NFIP within 6 months and the 

PNP obtains insurance. 

Eligible.Costs.for.Insurable.Facilities.–.All.Disasters 

Except in cases involving Stafford Act 406(d) flood insurance reductions 

or where an insurance purchase requirement has not been maintained 

(see page 123 of this guide), any eligible work or costs not covered 

by an insurance policy (that is, the difference between eligible costs 

and insurance proceeds) may be eligible for PA grant funding if it is 

the applicant’s first claimed FEMA assistance for the specific facility. 

The eligibility of these items is determined only after a FEMA Specialist 

reviews the insurance policy, all endorsements, and the schedule of 

insured property to determine insurance recoveries, as well as actual 

settlement documents, if available. Generally, eligible uninsured losses 

may include the following items: 

	 reasonable deductible in the applicant’s first claimed FEMA 
 

assistance if the cost accrued to the applicant;



	 depreciation; (i.e., differences in FEMA eligible costs and final loss 

valuations used by insurers); and 

	 costs in excess of an insurance policy limits, including sublimits for 

certain hazards (such as flood or earthquake). 

Regardless of the extent to which an applicant’s costs will be covered 

by insurance, the PAC Crew Leader must ensure that the entire scope 

of work for the project is described in the PW. This practice allows for 

the future adjustment of eligible costs based on such occurrences as a 

change in the applicant’s insurance settlement. 

In situations where insurance covers all eligible work, and the only eligible 

cost is that of the deductible, FEMA reimburses the applicant for this cost 

even if it is less than the $1,000 minimum that is otherwise required for 

the preparation of a PW. 

In some cases, the applicant may be required to pursue the proceeds 

from an insurance policy held by a third party. For example, property 

insurance for buildings often covers the cost of demolition and debris 

	 Chapter 4: Special Considerations 
removal. If the applicant removes debris from property belonging to a 

third party as an emergency measure, and the insurance policy for that 

property covers debris removal, the applicant must attempt to recover the 

proceeds from that insurance policy. FEMA would then deduct the value 

of the proceeds from the eligible cost of the work. 

Insurance.Purchase.Requirements.–.All.Disasters 

As a condition for receiving Public Assistance for permanent work, an 

applicant must obtain and maintain insurance to cover that facility for the 

hazard that caused the damage. Such coverage must, at a minimum, be 

in the amount of the estimated eligible damages for that structure prior 

to any reduction. The costs of Section 406 hazard mitigation measures 

are included in the amount of insurance required. If the requirement to 

purchase all insurance is not met, FEMA will not provide assistance for 

damage sustained in the current or a future disaster of the same type. 

If the applicant does not maintain all required insurance, FEMA will not 

provide any assistance for that facility in future disasters of the same 

type. An applicant is exempt from this requirement for: 

	 projects where the eligible damage (before any reductions) is less 

than $5,000; or 

	 facilities for which, in the determination of the State insurance 

commissioner, the type and/or extent of insurance being required by 

FEMA is not reasonable. (This exemption does not apply to facilities 

insurable under the NFIP because insurance is both available and 

reasonable.) 

The commitment by the applicant to purchase and maintain insurance 

must be documented and submitted to FEMA before project approval. If 

a facility has been severely damaged or destroyed, the applicant may be 

unable to determine the amount of insurance necessary for the restored 

facility before design and construction commences. In such a situation, the 

applicant must provide FEMA with as detailed a commitment as possible, 

and FEMA places a requirement in the PW stating that the applicant must 

provide documentation regarding the insurance policy that is eventually 

obtained within a reasonable period of the completion of construction. 

FEMA does not require applicants to obtain or maintain insurance on 

temporary facilities, and the cost of premiums (for temporary as well as 

for other facilities) is not eligible for reimbursement. However, prudent 

risk management practices generally encourage appropriate coverage for 

hazard exposure at a facility. If a temporary facility is damaged in a nonfederally declared event, FEMA will not repair or replace it. 

Chapter 4: Special Considerations		 
HAzARD.MITIGATION 

Hazard mitigation is defined as cost-effective action taken to prevent or 

reduce the threat of future damage to a facility. The applicant, FEMA, or 

the State may recommend that hazard mitigation measures be included 

in a PW. The costs of eligible hazard mitigation actions will be included 

in the overall funding of a project. [See FEMA Policy 9526.1, Hazard 

Mitigation Funding Under Section 406 (Stafford Act).] 

In some cases, FEMA may require mitigation measures as part of an 

approved project. For example, FEMA may require that a flood-damaged 

building be elevated to comply with local ordinances established pursuant 

to the requirements of the NFIP. 

Differences.Between.Section.404.and.Section.406.Hazard. 

Mitigation.Measures 

The Stafford Act provides for two types of funding for hazard mitigation 

measures: statewide mitigation programs (authorized under Section 404 

of the law) and mitigation for disaster-damaged facilities (authorized under 

Section 406 of the law). The differences between these provisions are 

described in the following table: 

Table 9: Mitigation 

404.Hazard.Mitigation 406.Hazard.Mitigation 

Separate program run by the State Implemented through the PA 

Program 

Applies to structural measures and Applies only to structural 

to non-structural measures (such as measures and does not apply to 

planning, property acquisition, drainage buyouts 

projects) 

Applies throughout the State in most Must apply to the damaged 

disasters element of the facility 

The formula for calculating the HMGP No program-wide limits on funds, 

allocation for States with a standard but each project must be costState mitigation plan is based on 15% effective and approved by FEMA 

of the first $2 billion of estimated 

aggregate amounts of disaster 

assistance. For amounts greater than 

$2 billion, a sliding scale is used to 

make allocation determinations. States 

with enhanced mitigation plans are 

eligible for a 20% HMGP formula. 

 Chapter 4: Special Considerations 
Section 404 hazard mitigation does not fall under the purview of the PA 

Program. Nevertheless, it is important to understand the differences 

between the two programs. The following discussion pertains solely 

to Section 406 hazard mitigation. For more information on Section 404 

hazard mitigation, local officials should contact the PAC Crew Leader, 

appropriate JFO Hazard Mitigation staff, or the State. 

Section.406.Hazard.Mitigation 

For hazard mitigation measures to be approved, the measures must 

be reviewed by FEMA staff to ensure eligibility, technical feasibility, 

environmental and historic preservation compliance, and cost 

effectiveness. [See FEMA Policy 9526.1, Hazard Mitigation Funding Under 

Section 406 (Stafford Act).] 

To be eligible, Section 406 hazard mitigation measures: 

	 Must be appropriate to the disaster damage and must prevent 

future damage similar to that caused by the declared event. 

	 Must be applied only to the damaged element(s) of a facility. This 

criterion is particularly important when conducting repairs to a 

portion of a system. For example, if floodwaters inundate a sanitary 

sewer, block manholes with sediment and damage some of the 

manholes, cost-effective mitigation to prevent blockage of the 

damaged manholes in future events may be eligible; however, work 

to improve any undamaged manholes that are part of the system 

is not eligible. New berms are not eligible as mitigation measures 

because they do not meet the requirement of being part of the 

damaged element. 

	 Cannot increase risks or cause adverse effects to the facility or to 

other property. 

	 Must consist of work that is above and beyond the eligible work 

required to return the damaged facility to its pre-disaster design. 

Upgrades required to meet current codes and standards, however, 

are not considered hazard mitigation measures for purposes of the 

PA Program and have different eligibility criteria. 

	 Cannot be applied to replacement buildings. Since new construction 

will be to current codes and standards, which are intended to 

ensure structural integrity for local conditions, mitigation funding 

applies only to building repairs, which generally are not covered by 

codes and standards. 

Chapter 4: Special Considerations		 
The considerations listed below are used to determine cost effectiveness. 

In all cases, the total eligible cost of the project, before deducting 

insurance proceeds, is used for the cost comparison. 

	 Hazard mitigation measures may amount to up to 15 percent of the 

total eligible cost of the eligible repair work for the damaged facility. 

	 Certain mitigation measures may be determined to be cost-effective 

as long as the mitigation measure does not exceed the cost of the 

eligible repair work on the project. Examples are provided below. 

	 For measures that exceed the costs of eligible repair work, the 

applicant must demonstrate through an acceptable benefit/cost 

analysis that the measure is cost effective. 

If mitigation measures agreed to by the applicant are approved (and 

thereby required), non-completion jeopardizes the funding of the entire 

project. 

The following list includes examples of Section 406 mitigation measures 

that have been determined to be cost-effective if they do not exceed the 

cost of the eligible repair work. As stated above, the applicant, the State, 

or FEMA may propose such measures, and FEMA may require hazard 

mitigation measures before agreeing to provide funds for certain projects. 

See the policy on Hazard Mitigation Funding Under Section 406 (FEMA 

Policy 9526.1) for a more detailed listing of potential mitigation measures. 

	 Relocation of facilities from hazardous locations: 

 Roads and bridges 

 Utilities 

 Buildings 

	 Slope stabilization to protect facilities: 

 Placement of riprap 

 Installation of cribbing or retaining walls 

 Installation of soil retention blankets 

	 Protection from high winds: 

 Installation of shutters to protect windows 

 Installation of hurricane clips 

	 Chapter 4: Special Considerations 
 Strengthening anchoring and connections of roof-mounted 

equipment 

 Floodproofing of buildings: 

 Use of flood-resistant materials 

 Elevation of mechanical equipment and utilities 

 Elevation of buildings 

 Dry-floodproofing, if technically feasible 

 Flood protection of bridges and culverts: 

 Installation of cut-off walls or headwalls on culverts 

 Installation of gabions, riprap, sheet piling, or geotextile fabric 

 Seismic protection: 

 Bracing of overhead pipes and electrical lines 

 Anchoring non-structural elements such as parapets and 

veneers 

 Bracing interior walls and partitions 

 Protection of utilities: 

 Use of disaster-resistant materials for power poles 

 Anchoring fuel tanks to prevent movement 

 Elevation of equipment, control panels, and electrical service 

to prevent flood damage 

ENvIRONMENTAL/HISTORIC.PRESERvATION.COMPLIANCE 

When providing funds under the PA Program, FEMA must consider a 

range of Federal laws, regulations, and EOs that apply to the use of 

Federal funds. These laws, regulations, and EOs generally require the 

funding agency to ensure compliance prior to funding. The size and type 

of project, and project site and area conditions, generally determine the 

level of review that must be performed. Some of these laws, regulations, 

and EOs, and the means through which FEMA ensures that the PA 

Program complies with them, are discussed below. 

Chapter 4: Special Considerations 
Reviews for compliance with these laws must be completed before FEMA 

approves funding and before work is started since the review may identify 

steps to be taken or conditions to be met before the project can be 

implemented. These are noted in the paragraphs below where applicable. 

More information on FEMA’s environmental and historic preservation 

compliance responsibilities can be found at www.fema.gov/plan/ehp. The 

REO, the ELO, and environmental and historic preservation specialists are 

resources that can help, and in some cases are required to help, process 

these compliance requirements. 

National.Environmental.Policy.Act 

The National Environmental Policy Act (NEPA) requires every Federal 

agency to follow a specific planning process to ensure that agency 

decision-makers have considered, and the general public is fully informed 

about, the environmental consequences of a proposed Federal action, 

such as the approval of a grant. This review and consultation process 

is used to evaluate the impact a project, and any possible alternatives, 

may have on the environment. The process must be completed prior to 

obligating funds and beginning work. FEMA’s regulations regarding NEPA 

can be found in 44 CFR Part 10. 

NEPA does not require that FEMA limit the impact of projects on the 

environment; nor does it require FEMA to fund only the alternative that 

has the least environmental impact. However, it does require that the 

decision to fund a project be made in an informed manner. 

The review process required by NEPA, where applicable, is usually the 

means through which FEMA addresses other environmental laws and 

regulations. 

Statutory Exclusions (STATEX). Section 316 of the Stafford Act provides 

FEMA with a statutory exclusion from NEPA, which exempts from the 

NEPA review process certain program activities that restore a facility 

substantially to its condition prior to the disaster or emergency. The 

exempted Stafford Act programs are: 

	 Section 402 (General Federal Assistance); 

	 Section 403 (Essential Assistance) – protective measures, such as 

the construction of temporary bridges and other activities necessary 

to reduce immediate threats to life, property, and public health and 

safety; 

	 Chapter 4: Special Considerations 
 Section 406 (Repair, Restoration, and Replacement of Damaged 

Facilities) – repair or restoration projects that restore facilities 

substantially to their pre-disaster footprint, function, and size; 

 Section 502 (Federal Emergency Assistance). 

Some actions, although excluded from NEPA review by Section 316, may 

still have potential environmental impacts that require additional review 

for compliance with other environmental/historic preservation laws and 

EOs. The more commonly encountered of these other laws and EOs 

include: Endangered Species Act, the National Historic Preservation 

Act, Clean Water Act, Clean Air Act, and EOs on floodplains, wetlands, 

or environmental justice. Compliance with these laws and EOs is still 

required whether or not NEPA review is required. For example, although 

Section 403 debris removal activities are generally statutorily exempt from 

NEPA review, FEMA still must ensure that those activities comply with 

such laws as Clean Air Act, Resource Conservation and Recovery Act, 

and others. 

If an action is not statutorily excluded, then it must be determined which 

of the following levels of review is required for NEPA compliance: 

Categorical Exclusions (CATEX). Categorical exclusions are types of 

actions that, through experience, FEMA has found typically will have little 

or no environmental impact. FEMA’s categorical exclusions are listed in 

44 CFR §10.8(d). Examples include upgrades to codes and standards, 

removal of structures after addressing historic preservation needs, or 

minor improvements or minor hazard mitigation measures at existing 

facilities, such as placing riprap at a culvert outlet to control erosion. 

If there are unresolved extraordinary circumstances that may have a 

significant adverse environmental impact, such as the potential to affect 

protected natural or cultural resources, the proposed action cannot be 

categorically excluded, and an Environmental Assessment is required. 

Environmental Assessments (EA). An Environmental Assessment is a 

concise public document that provides the decision maker with sufficient 

evidence and analysis regarding the significance of the environmental 

impacts of the proposed action. An EA can include two or more 

alternatives to aid in decision making and concludes with one of two 

findings: either a Finding of No Significant Impact or a Notice of Intent to 

prepare an Environmental Impact Statement. 

Environmental Impact Statements. An Environmental Impact Statement 

(EIS) is required when significant environmental impacts are anticipated. 

It is a detailed analysis and evaluation of all the impacts of the proposed 

Chapter 4: Special Considerations 
action and all reasonable alternatives. This document usually provides 

more detailed and rigorous analyses than the EA and requires formal 

public involvement. The EIS concludes with a Record of Decision that 

provides an explanation of the reasons for selecting a particular action. 

Endangered.Species.Act 

This legislation prohibits Federal actions that cause takings of species 

listed as threatened or endangered, or the destruction or adverse 

modification of the habitat for these species. Endangered species include 

mammals, fish, birds, reptiles, and amphibians, as well as plants and 

insects. 

If a project has the potential to affect a threatened or endangered species 

or its habitat, FEMA must consult with the USFWS or the National 

Marine Fisheries Service (NMFS), or both, before approving funding for 

that project. While compliance issues may arise with projects involving 

undisturbed sites (alternate or improved projects), or sites in or by 

waterways (bridge or dam repairs), they could also arise with relatively 

minor actions. For example: 

If a culvert replacement must be performed on a stream that serves 

as the habitat of an endangered fish species, the construction could 

adversely affect the life cycle of that species. The presence of the 

species would not necessarily prevent the replacement but may 

necessitate certain constraints, such as doing the work outside of 

the species’ breeding season. 

There are over 1,250 species currently listed as threatened or 

endangered. Therefore, it is important to consult with the USFWS or 

NMFS early in the disaster recovery to determine which species inhabit 

the declared disaster area. In some cases, FEMA may establish a 

programmatic agreement with the USFWS or NMFS at the beginning of 

the disaster recovery process to address projects in areas known to have 

threatened or endangered species. Working with an environmental officer 

or specialist can facilitate formal or informal consultations with these 

agencies and help identify streamlining agreements that are already in 

place. 

National.Historic.Preservation.Act 

The National Historic Preservation Act (NHPA) requires a Federal agency 

to consider, before approval of funding, the effects of its activities, 

referred to as “undertakings,” on any historic property listed in or eligible 

for listing in the National Register of Historic Places. The agency funding 

0 Chapter 4: Special Considerations 
the undertaking is required to give the Advisory Council on Historic 

Preservation (ACHP) a reasonable opportunity to comment on that 

undertaking. Under the NHPA regulations, which can be found in 36 CFR 

Part 800, PA Program projects are considered undertakings because they 

are funded in whole or in part by a Federal agency. 

Historic properties include districts, buildings, structures, objects, 

landscapes, archaeological sites, and traditional cultural properties 

that are listed in or eligible for listing in the National Register of Historic 

Places, a federally maintained list of recognized historic properties. These 

properties are not limited to old buildings or well-known historic sites, 

but include places important in local, State, Tribal, or national history. 

Facilities as diverse as bridges, roads, water treatment plants, and areas 

once inhabited by prehistoric populations may be considered historic 

properties. 

The National Register of Historic Places is incomplete. States may have 

additional properties with historic significance that may be candidates for 

listing in the National Register of Historic Places. 

Many Public Assistance projects have the potential to affect historic 

properties. These projects include: 

	 repair and restoration of historic structures; 

	 demolition or removal of historic structures; 

	 repair, restoration, and demolition projects in historic districts; and 

	 improved, alternate, or relocated projects affecting undisturbed 

areas that may contain archeological sites or have cultural, historic, 

or prehistoric significance. 

FEMA must ensure the following steps are achieved for properties before 

approval of funding for a PA project: 

	 identification of historic properties; 

	 evaluation of the effects of PA projects on historic properties; and 

	 consultation with the State Historic Preservation Office (SHPO) or 

Tribal Historic Preservation Officer (THPO), the ACHP, and other 

interested parties, such as a local historic society, and the public. 

In some cases, FEMA may establish a programmatic agreement with the 

ACHP, SHPO, and/or the THPO at the beginning of the disaster recovery 

process to address projects potentially falling within the scope of the 

NHPA. 

Chapter 4: Special Considerations		 
Clean.Water.Act 

Under Section 404 of the Clean Water Act (CWA), the USACE is 

responsible for issuing permits for the discharge of dredged materials 

or fill into the waters of the United States. The applicant must obtain 

a permit in any situation where dredging or filling is a component of 

the project. Where a USACE permit is required for a PA project, FEMA 

places a requirement in the PW stating that the applicant is responsible 

for obtaining the permit. Also as part of the CWA, the applicant may be 

required to seek a Section 101 water quality permit from the State agency 

that administers that program. 

Wetlands are considered part of the waters of the United States and are 

subject to CWA provisions. Some wetlands, such as marshes and riverine 

wetlands, are easy to recognize. Other sites, such as forested wetlands 

and agricultural drainage ditches, are more difficult to identify, and some 

areas that are considered wetlands may not actually be wet for much of 

the year. Wetlands can be identified by the USACE, USFWS, or Natural 

Resource Conservation Service. 

Some of the facilities and projects that may involve the CWA include: 

	 bridges, culverts, or outfall structures; 

	 levees, dikes, and berms; 

	 irrigation works; 

	 channel alignment and stream bank erosion control; 

	 debris removal in streams; 

	 shore protective measures; 

	 projects involving the placement of fill, such as relocation of roads 

and buildings; and 

	 construction of water and wastewater treatment plants. 

Clean.Air.Act 

The Clean Air Act is administered through State and local agencies. 

Except for activities in non-attainment areas (i.e., those exceeding 

national standards and, therefore, requiring more rigorous compliance 

measures), air quality compliance will often require that fairly standard 

measures be implemented such as dust abatement, vehicle emissions 

control, fuels storage and distribution procedures, etc. Those activities 

with particular air quality concerns include: 

	 Chapter 4: Special Considerations 
	 debris disposal through methods such as burning; 

	 collection and disposal of appliances that contain 
 

chlorofluorocarbons;
 


	 collection and disposal of switches and fluorescent tubes that 

contain mercury; 

	 demolition of damaged structures, which can release dust or 
 

harmful substances, such as asbestos, into the air; and



	 large construction projects that require extensive grading and use of 

heavy equipment. 

Coastal.Barrier.Resources.Act 

The Coastal Barrier Resources Act (CBRA) and the subsequent Coastal 

Barrier Improvement Act establish a system of protected coastal areas 

and Otherwise Protected Areas (OPAs) known as the Coastal Barrier 

Resources System (CBRS). The areas, called CBRS units, include defined 

areas along the Atlantic, Gulf of Mexico, and Great Lakes coasts, and 

Puerto Rico, Florida Keys, Virgin Islands, and secondary barriers within 

large embayments. These two Acts minimize impacts to their unique 

natural ecosystems by restricting Federal expenditures and financial 

assistance that encourage development in certain defined areas of the 

coastal barriers which are identified on FEMA’s FIRMs or on USFWS 

maintained maps. 

Debris removal and emergency protective measures in designated 

CBRS units may be eligible for Public Assistance provided the actions 

eliminate an immediate threat to lives, public health and safety, and 

improved property. While strongly encouraged, advance consultation 

with the USFWS is not required before approval of emergency measures. 

Notification is required at the soonest practicable time for approved 

emergency work. 

Before approving funding for permanent work in CBRS areas, however, 

FEMA must consult with the USFWS to allow the USFWS the opportunity 

to provide written comments. The following types of publicly owned 

facilities may be eligible for permanent work funding: 

	 essential links in a larger system; 

	 restoration of existing channel improvements; 

	 repair of existing energy facilities that are functionally dependent on 

a coastal location; 

Chapter 4: Special Considerations		 
	 special-purpose facilities as defined in 44 CFR §206.347(c)(4); and 

	 other existing (but not expanded or improved) roads, structures, or 

facilities that are consistent with the purposes of CBRA. 

Certain PNP facilities that meet the restrictions of CBRA and the PA 

Program may be eligible for assistance. Examples include electric, water, 

and sewer utilities. [See 44 CFR §206.347(c)(6).] 

Improved projects that expand a facility and alternate projects are not 

eligible in CBRS units except in a few limited cases. 

An existing facility is defined as a publicly owned or operated facility on 

which construction started on or before October 18, 1982. If a facility has 

been substantially improved or expanded since October 18, 1982, it is 

not an existing facility. If a unit was added to CBRS at a later date, that 

date may be substituted for the October 18, 1982, date. For a complete 

description of the PA Program’s responsibility for CBRA, refer to 44 CFR 

§206.340 Subpart J. 

Resource.Conservation.and.Recovery.Act 

Although debris removal is statutorily exempted from NEPA, it is 

nonetheless subject to the Resource Conservation and Recovery Act, 

which requires safe disposal of waste materials, promotes the recycling 

of waste materials, and encourages cooperation with local agencies. 

The act, implemented at the State and local levels, applies to disposal of 

both disaster-generated debris and demolition debris and is of particular 

concern when hazardous materials may be present. 

Coastal.zone.Management.Act 

If a proposed project is located in an area covered by a state’s coastal 

zone management plan, its consistency with the requirements of that plan 

must be determined before funding can occur. 

Farmland.Protection.Policy.Act 

If a proposed project causes irreversible conversion of prime, unique, or 

other special farmland to non-agricultural use, the lost acreage must be 

evaluated using NRCS procedures. 

Fish.and.Wildlife.Coordination.Act 

If a proposed project will affect water resources, this act requires an 

evaluation of that action on fish and wildlife. Projects affecting the 

	 Chapter 4: Special Considerations 
stream hydrology or the impoundment of water will most often trigger 

requirements under this law. Consultation with USFWS and other 

agencies may be required. 

Wild.and.Scenic.Rivers.Act 

If a proposed project is located on or above a reach of a river designated 

as wild and scenic, it must be reviewed for compliance with this law. 

EO.11988.–.Floodplain.Management.and.EO.11990.–. 

Protection.of.Wetlands 

EOs 11988 and 11990 require Federal agencies to minimize or avoid 

activity that adversely affects floodplains and wetlands. Because many PA 

projects are located in these areas, FEMA must review proposed projects 

for compliance with the requirements of these orders. Through this review, 

FEMA seeks to: 

	 avoid, to the extent possible, the long- and short-term adverse 

impacts associated with the occupancy and modification of 

floodplains; 

	 avoid direct and indirect support of floodplain development 
 

wherever there is a practicable alternative; and
 


	 minimize the destruction, loss, or degradation of wetlands. 

FEMA’s regulations for applying EOs 11988 and 11990 are outlined in 

44 CFR Part 9. These regulations describe a specific, 8-step process for 

conducting floodplain management and wetland reviews before approval 

of funding. The process includes the following steps: 

1. Determine the location and potential of the proposed action to affect 

or be affected by a wetland or the 100-year floodplain. 

2. Notify the public of the proposed action within or affecting a wetland 

or floodplain. 

3. Identify and evaluate practicable alternatives, including alternative 

sites or actions outside the floodplain or wetland. 

4. Identify the potential direct and indirect impacts associated with the 

proposed action. 

5. Minimize potential adverse impacts of the proposed action. 

Chapter 4: Special Considerations		 
6. Re-evaluate the proposed action and other practical alternatives 

based on steps 3, 4, and 5. 

7. Inform the public of the final decision. 

8. Implement the action. 

This review process is not required for most projects where eligible 

damage is less than $5,000. In addition, the review is not required 

for Category A and B projects (emergency work), except for projects 

involving disposal of debris in Special Flood Hazard Areas or wetlands. 

For all other projects located within Special Flood Hazard Areas or 

wetlands, FEMA must perform the 8-step process to determine if it is 

practicable to avoid restoration in the floodplain or wetland. If avoiding 

the floodplain or wetland is not practicable, FEMA must identify all effects 

to the floodplain or wetland as well as to the facility, and seek to minimize 

the adverse effects through mitigation (such as relocation or redesign). 

Consideration of alternative sites is not required for projects over $5,000 

but less than $25,000 that are located in Special Flood Hazard Areas or 

wetlands. However, mitigation measures must be considered. 

FEMA must perform floodplain management reviews for critical facilities 

located in any floodplain up to and including the 500-year floodplain. 

A facility is considered to be critical if flooding of that structure would 

present an immediate threat to life, public health, and safety. Critical 

facilities are those that serve as emergency shelters; contain occupants 

who are not sufficiently mobile to avoid death or injury, such as hospitals; 

house emergency operation or data storage that may become lost or 

inoperative; are generating plants and principal points of utility lines; 

or that produce, use, or store volatile, flammable, explosive, toxic, or 

water reactive materials. FEMA may require mitigation of the hazard 

or relocation of a critical facility before agreeing to provide funding for 

restoration of the facility. 

EO.12898.–.Environmental.justice 

Field personnel should identify any neighborhoods or communities with 

minority or low-income populations. This order requires Federal agencies 

to evaluate actions for disproportionately high or adverse effects on 

minority or low-income populations and to find ways to avoid or minimize 

these impacts where possible. It does not typically apply to in-kind repair 

or replacement of facilities under the PA Program. However, it may affect 

funding for improved, alternate, and relocated projects and certain hazard 

mitigation measures. 

 Chapter 4: Special Considerations 
CHAPTER.5



Project Management
 

Project management begins when a disaster occurs and does not end 

until an applicant has received final payment for the project. Good project 

management ensures successful recovery from the disaster, expedited 

payment of funds, and more efficient closeouts of PA Program grants. 

See FEMA Instruction 8610.8, Public Assistance (PA) Program Grants 

Administration Post Award Monitoring and Closeout Processes for 

additional information. 

RECORD.kEEPING 

It is critical that the applicant establish and maintain accurate records 

of events and expenditures related to disaster recovery work. The 

information required for documentation describes the “who, what, 

when, where, why, and how much,” for each item of disaster recovery 

work. This information should include the completed PW; completed 

Special Considerations Questions form; estimated and actual costs; 

force account labor; force account equipment, materials, and purchases; 

photographs of damage, work underway, and work completed; insurance 

information; environmental and/or historic alternatives and hazard 

mitigation opportunities considered; environmental review documents; 

receipt and disbursement documents; and records of donated goods and 

services, if any. The applicant should have a financial and record keeping 

system in place that can be used to track these elements. The importance 

of maintaining a complete and accurate set of records for each project 

cannot be over-emphasized. Good documentation facilitates the project 

formulation, validation, approval, and funding processes. 

All of the documentation pertaining to a project should be filed with the 

corresponding PW and maintained by the applicant as the permanent 

record of the project. These records become the basis for verification of 

the accuracy of project cost estimates during validation of small projects, 

reconciliation of costs for large projects, and audits. 

Applicants should begin the record keeping process before a disaster is 

declared by the President. To ensure that work performed both before 

Chapter 5: Project Management 
and after a disaster declaration is well documented, potential applicants 

should: 

	 designate a person to coordinate the compilation and filing of 
 

records;
 


	 establish a file for each site where work has been or will be 
 

performed; and



	 maintain accurate disbursement and accounting records to 
 

document the work performed and the costs incurred.
 


Grantees must maintain records for a minimum of 3 years from the date 

of the final Financial Status Report (FSR) or follow their standard record 

retention policy requirements if that policy dictates record retention 

beyond the 3-year requirement. Applicants must meet their own record 

retention requirements if they are longer than the Grantee’s. Otherwise, 

they must follow the Grantee’s requirements. If the applicants are required 

to submit an FSR to the Grantee, the beginning date for record retention 

is the date of the final FSR. If the FSR is not required, the beginning 

date for record retention is the final certification of completion of the 

applicant’s last project. Applicants may refer to the Public Assistance 

Applicant Handbook, FEMA 323, for additional information regarding 

record keeping. 

TIME.LIMITS 

Eligible work must be completed within timeframes established by 

regulation. These deadlines are measured from the declaration date of the 

major disaster or emergency. The deadlines are established according to 

the type of work, as shown in the following table: 

Table 10: Completion Deadlines 

Type.of.Work Months 

Debris Clearance 6 

Emergency Work 6 

Permanent Work 18 

The State has limited authority to grant extensions of the above deadlines 

on a case-by-case basis in situations of extenuating circumstances. 

However, the State may not grant extensions that modify the approved 

scope of work, such as where the project cost is dependent on the 

	 Chapter 5: Project Management 
duration. For example, for a leased temporary facility, FEMA defines the 

eligible funding for this facility based on the duration of use. The State 

does not have the authority to extend the duration of the lease as this 

constitutes an increase in the approved scope of work and associated 

costs. Only FEMA can approve a scope of work modification. 

For debris clearance and emergency protective measures, the State may 

grant up to an additional six months for the completion of the approved 

scope of work. For permanent restoration work, the State may grant up to 

an additional 30 months. 

Requests by applicants for time extensions should include identification 

of the project by PW number, the dates and provisions of any previous 

extensions granted for the particular project, a detailed justification of the 

need for the extension, and a projected completion date. The justification 

should be based on extenuating circumstances or unusual project 

requirements beyond the control of the applicant. FEMA may review 

the State’s actions on time extensions on a periodic basis to ensure 

compliance with the regulations. 

If an applicant requests a time extension beyond the limit of the State’s 

authority, the State must submit the request to the RA for approval. 

Information to be contained in the request is the same as in a request 

submitted for State approval. The RA will make a determination as to 

whether some or all of the requested extension should be granted and 

will inform the State in writing. The RA has authority to grant extensions 

appropriate to the situation. The RA may impose requirements upon the 

State to ensure that the project will be completed within the approved 

time limit. 

FEMA provides assistance only for those costs incurred up to the latest 

approved completion date for a particular project. However, the project 

still must be completed for any funding to be eligible for that project. 

CHANGES.IN.SCOPE.OF.WORk.AND.COSTS 

During the performance of work on a project, the applicant may discover 

hidden damage, additional work that is necessary to properly complete 

the project, or that certain costs are higher than those used to make 

the original estimate for the PW. Delays in the work schedule also may 

increase costs. This notification of additional damage or costs must be for 

a project already identified and approved by FEMA. Changes in the scope 

Chapter 5: Project Management 
of work may result in additional environmental/ historic preservation 

compliance reviews and/or new permits. 

Assistance for any newly discovered damaged facilities must be 

requested within 60 days of the first substantive meeting (typically the 

Kickoff Meeting) with the applicant. 

For large projects, when a change in scope or a need for additional 

funding is discovered, the applicant should notify the State as soon as 

possible. It should not be assumed that such costs can be reported at 

the end of the project and that the additional funds will be approved 

automatically. The request should contain justification for the eligibility 

of the additional work or costs. If additional damage to the facility is 

involved, it may be necessary to show how that damage is disasterrelated. The State forwards the request to FEMA with a written 

recommendation. To determine eligibility, FEMA and the State, in 

cooperation with the local representatives, may conduct a site visit. The 

timing of the request should be such that the damaged element can be 

inspected before it is covered up or repaired. FEMA renders a decision 

and notifies the State either with an amended PW for additional funding or 

a written denial of the request. 

Small projects are handled differently. If there is a gross error or omission 

in the scope of work of a small project, the applicant should make 

a request for a change as described above. Cost overruns are not 

handled on a project-by-project basis; rather, the applicant may request 

supplemental funding for a net cost overrun on all small projects by 

submitting an appeal through the State to FEMA. An appeal should be 

submitted only when the total costs for all small projects significantly 

exceed the total cost approved for all small projects. The appeal must 

be submitted within 60 days of the completion of all of that applicant’s 

small projects. The appeal must include documentation of actual costs 

including reasons for increased cost or scope of work of all of the 

projects, including projects with underruns as well as those with overruns. 

Except when an appeal is to be submitted, cost documentation for small 

projects does not need to be submitted to FEMA, but should be retained 

for 3 years after the date of the applicant’s final FSR to the Grantee. If 

there is no FSR, it should be retained for 3 years from the date of the final 

certification of completion of the applicant’s last project. 

0 Chapter 5: Project Management 
PROGRESS.REPORTS 

Progress reports are critical to ensuring that FEMA and the State have 

up-to-date information on PA Program grants. Reporting requirements 

for the PA Program generally concentrate on large projects. Recipients 

of assistance should check with their State to determine the particular 

reporting requirements. 

The State submits reports quarterly to the RA for projects for which 

a final payment has not been made. The date of the first report will 

be determined jointly by the State and the DRM, depending on the 

circumstances at the time. The progress report will include: 

	 the status of the project, such as “in design” or “percentage of 

construction completed”; 

	 time extensions granted, if any; 

	 a projected completion date; 

	 the amount of expenditures and amount of payment for each 
 

project; and
 


	 any problems or circumstances that could delay the project or result 

in noncompliance with the conditions of the FEMA approval. 

As final payment is made on each large project, the project may be 

dropped from the report. Final payment for small projects is made at the 

time of project approval by FEMA and, therefore, small projects do not 

need to be reported to FEMA. 

Other reporting requirements for small projects may vary depending upon 

the requirements of each State. 

FEMA has no reporting requirements for applicants, but the State is 

expected to impose some reporting requirements on applicants so that it 

can prepare quarterly reports. The format in which the applicants submit 

project reports to the State will be determined by the State. 

AuDITS 

Public assistance grant recipients are required to comply with the 

provisions set forth under the Single Audit Act of 1984 (Public Law 

98-502), as amended in 1996. The act requires grant recipients 

expending $500,000 or more in Federal funds in a fiscal year ending 

Chapter 5: Project Management		 
after December 31, 2003 to perform a single audit or program-specific 

audit in accordance with OMB Circular A-133, Audits for States, Local 

Governments, and Non-Profit Organizations. 

Even though a single audit must be performed, grant recipients also are 

subject to additional audits by the DHS Office of the Inspector General 

and State auditors. OMB requires grant recipients to maintain financial 

and program records for 3 years beyond the date of final FSR or follow 

their and the Grantee’s standard record retention policy if that policy 

requires record retention beyond the 3-year requirement. If an FSR is not 

required, records must be maintained for 3 years from the date of the final 

certification of completion of the applicant’s last project. 

Typically, applicants will be informed of audit requirements during the 

Applicants’ Briefing. Any questions after the briefing regarding the single 

audit, or audits in general, should be directed to the appropriate State 

official or the DHS’s Office of the Inspector General. 

 Chapter 5: Project Management 
Index 

44 CFR Part 9......................................................................................... 135
 


44 CFR Part 10....................................................................................... 128
 


44 CFR Part 13.......................................................................8, Appendix C
 


44 CFR Part 206.....................................................................8, Appendix B
 


50 Percent Rule..............................................(see Repair vs. Replacement)
 


Active Use – Facility ............................................................................26–27
 


Administrative Allowance for Applicants.............................................62–64
 


Administrative Allowance for States....................................................64–65
 


Administrative Costs – State Management............ (see State Management 
 

Administrative Costs)



Agricultural Land .......................................................................... 22, 67, 70
 


Alaskan Native Villages ....................................................(see Indian Tribes)
 


Alternate Project......................................................................111–112, 134 
 

Alternate Use – Facility............................................................................. 27
 


Americans with Disabilities Act ...........................................................35–36
 


Appeals ...........................................................................................112–114
 


Applicant ...............................................................................................9–10
 


Applicants’ Briefing .............................................................................91–92
 


Architecture and Engineering Studies.............(see Engineering and Design 
 

Services)



Art ...................................................... (see Collections and Other Objects)
 


Audits ..............................................................................................141–142
 


Backfill Employees ................................................................................... 43
 


Beaches.........................................................................................74, 86–87
 


Bridges ....................................................................................24–25, 79–82
 


Building Inspection................................................................................... 76
 


Buildings and Equipment ....................................................................83–85
 


Capacity ................................................................................................... 79
 


Cash Donations...................................................................................41–42
 


Categorical Exclusions........................................................................... 129
 


Categories of Work................................................................................... 66
 


Category A ..............................................................................67–71, 90–91
 


Category B ..............................................................................71–78, 90–91
 


Category C ..........................................................................................79–82
 


Category D ..........................................................................................82–83
 


Category E...........................................................................................83–85
 


Category F................................................................................................ 85
 


Category G ..........................................................................................86–87
 


Clean Air Act............................................................................129, 132–133
 


Index 
Clean Water Act ............................................................................. 129, 132
 


Closeout ................................................................................................. 114
 


Coastal Barrier Resources Act ........................................................133–134
 


Coastal Barrier Resources System .................................................133–134
 


Coastal Zone Management Act.............................................................. 134
 


Codes and Standards ...................................................................33–36, 83
 


Collections and Other Objects ................................................................. 84
 


Community Arts Centers.............................................................. 10, 12, 18
 


Community Centers ..........................................................10, 12, 18, 19–20
 


Community Development Districts........................................................... 21
 


Compensatory Time........................................................................... 42, 45
 


Construction Inspection ..........................................................56–57, 59–61
 


Contract Supervision................................................................................ 44
 


Contracts.........................................................................28, 42, 51–53, 104
 


Cost.....................................................................................................40–65
 


Cost Codes ...................................................................................... 41, 104
 


Cost Estimate............................................................................96, 103–104 
 

Cost Estimating Format...................................................................105–106
 


Cost Overrun .......................................................................... 109, 113, 140
 


Cost Share.........................3, 10, 24, 51, 56, 64–65, 91, 108, 109, 110, 112 
 

Critical Facilities in Floodplain................................................................ 136
 


Critical Services.............................................................................12, 13–15
 


Culvert .......................................................................................... 25, 32, 33
 


Custodial Care...................................................................10, 11, 12, 17–18
 


Damage, Cause of.......................................................................... 100, 101
 


Damage, Description of.................................................................... 96, 100
 


Damage, Search for ............................................ (see Surveys for Damage)
 


Damage to Applicant-Owned Equipment .................................... 44, 48, 84
 


Davis-Bacon Act ...................................................................................... 44
 


Deadlines........................................................................... (see Time Limits)
 


Debris on Private Property ..................................................................69–70
 


Debris Registry......................................................................................... 53
 


Debris Removal ...................................................................................67–71
 


Declaration Process ................................................................................2–3
 


Deductible .............................................................................. 120, 121, 122
 


Demolition ...................................................... 39, 69, 73, 91, 119, 131, 133
 


Design ...................................................................................................... 79
 


Designated Disaster Area......................................................................... 30
 


Direct Costs........................................................................................ 42, 63
 


Direct Federal Assistance....................................................................76–78
 


Direct Result........................................................................................29–30
 


Disaster Recovery Manager ....................................................................2–3
 


Donated Equipment ................................................................................. 56
 


 Index 
Donated Grants/Cash ................................................ (see Cash Donations)
 


Donated Materials .................................................................................... 56
 


Donated Resources.................................................................................. 56
 


Duplication of Benefits ........................................................................41–42
 


Education ....................................................................10, 11, 12, 13, 15–16
 


Eligibility ................................................................................................7–87
 


Emergency Management Assistance Compact (EMAC).......................... 51
 


Emergency........................................................................ 10, 11, 12, 13, 18
 


Emergency Communications ............................................................. 75, 77
 


Emergency Protective Measures.........................................................71–74
 


Emergency Public Transportation ...................................................... 75, 77
 


Emergency Work ...........................................................................66–78, 81
 


Endangered Species Act................................................................ 129, 130
 


Engineering and Design Services..................................................41, 56–61
 


Environmental Justice ............................................................................ 136
 


Equipment ...............................................................................48–50, 83–85
 


Equipment, Damage to .................................................................48–49, 84
 


Equipment Rates – FEMA .............................................. 41, 44, 48, 84, 103
 


Equipment Rates – Local ......................................................................... 49
 


Equipment Rates – State.....................................................................48–49
 


Executive Order 11988....................................................................135–136
 


Executive Order 11990....................................................................135–136
 


Executive Order 12699............................................................................. 35
 


Executive Order 12898........................................................................... 136
 


Expedited Payments ...........................................................................90–91
 


Facilities Scheduled for Replacement...................................................... 28
 


Facilities Under Construction................................................................... 28
 


Facility .............................................................................................8, 22–28
 


Farmland Protection Policy Act.............................................................. 134
 


Federal Coordinating Officer ...................................................................2–3
 


Federal Highway Administration .............................................25–26, 68, 80
 


Federal Share .....................................................................(see Cost Share)
 


Fish and Wildlife Coordination Act ..................................................134–135
 


Flood Control Works......................................................................24–25, 82
 


Flood Insurance.......................................................................119, 120–122
 


Flood Insurance Rate Map............................................................. 121, 133
 


Floodplain Management..........................................................120, 135–136
 


Force Account – Equipment................................................................48–49 
 

Force Account – Labor........................................................................42–47 
 

Force Account Mechanics....................... (see Mechanics – Force Account)
 


Foremen and Supervisors ........................................................................ 44
 


Fringe Benefits ....................................................................................45–47
 


Function.................................................................................................... 79
 


Index 
Golf Courses ...................................................................................... 22, 86
 


Governor’s Authorized Representative....................................................... 2
 


Grant Closure ......................................................................................... 114
 


Grantee..........................................................................................3, 5, 9–10
 


Grant Processing.............................................................................108–114
 


Hazard Mitigation ....................................................................116, 124–127
 


Hidden Damage ..................................................................................... 139
 


Historic Preservation ...................................................................... 130–131 
 

Homeless Shelters ....................................................................... 11, 12, 18
 


Homeowners’ Associations.................................................................20–21
 


Hospice .............................................................................................. 12, 17
 


Hospitals .......................................................................................12, 16–17
 


Immediate Needs Funding ..................................................................90–91
 


Immediate Threat ........................................................26, 38, 66–67, 71, 76
 


Improved Natural Features........................................................... 22, 67, 86
 


Improved Projects ...........................................................................110–111
 


Improved Property........................................................................ 66, 67, 74 
 

Inaccessible Facilities................................................................... 38, 55, 74
 


Inactive Facility....................................................................................26–27
 


Incident Period ....................................................................................29–30
 


Increased Operating Expenses ...............................................54–55, 71, 85
 


Indian Tribes ............................................................................3, 5, 9–10, 25
 


Indirect Cost Reimbursement for States.................................................. 65
 


Ineligible Space .................................................................................. 17, 19
 


Inspections .......................... (see Building Inspection; Damage, Search for)
 


Insurance.................................................................40, 41, 70, 83, 119–123
 


Irrigation Facilities ................................................ 10, 12, 13, 18, 20, 21, 82
 


Joint Field Office ........................................................................................ 3
 


Kickoff Meeting .................................................................... 89, 94, 96, 107
 


Labor ...................................................................................................42–47
 


Landslides ...........................................................................................81–82
 


Large Projects .............................................. 95, 96, 98, 105, 109, 140, 141
 


Legal Responsibility – Facility .................................................................. 23
 


Legal Responsibility – Work ................................................................30–31
 


Levees ................................................................ (see Flood Control Works)
 


Libraries........................................................................................ 10, 12, 18
 


Long-Term Care Facilities................................................................... 16, 17
 


Loss of Revenue........................................................................... 54, 71, 85
 


Maintenance....................................................22, 33, 38, 48, 82–83, 84, 87
 


Master Service Agreements ..................................................................... 62
 


Materials................................................................................................... 48
 


Mechanics – Force Account..................................................................... 44
 


Medical........................................................................10, 11, 12, 13, 16–17
 


 Index 
Medical Office Buildings .......................................................................... 17
 


Medical Supplies.................................................................................71–72
 


Minimum Project Threshold ................................................................98–99
 


Mission Assignments ..................................(see Direct Federal Assistance)
 


Mitigation..................................................................(see Hazard Mitigation)
 


Mold ..............................................................................................32–33, 83
 


Museums................................................................................ 10, 12, 18, 84
 


Mutual Aid Agreements.......................................................................50–51
 


National Environmental Policy Act ..................................................128–130
 


National Flood Insurance Program............................................76, 120–122
 


National Guard ..................................................................................... 2, 44
 


National Historic Preservation Act...................................................130–131
 


Natural Features ........................................................................... 22, 67, 86
 


Natural Resources Conservation Service............................. 25, 80, 82, 134
 


Negligence ..........................................................................................31–32
 


Non-Critical Services.....................................................................12, 13–15
 


Operating Costs ................................................................ 38, 48, 111, 119 
 

Other Federal Agencies...........................................................23–26, 41, 44
 


Outpatient Facilities............................................................................ 12, 16
 


Overtime...................................................(see Regular Time and Overtime)
 


Overview..................................................................(see Process Overview)
 


PA Group Supervisor (Public Assistance Officer)...............................vi, 4, 8
 


PA Project Specialist (Project Officer) ............................ vi, 4–5, 96, 98, 117
 


PA Technical Specialist (Specialist) ...................................... vi, 4–5, 96, 117
 


PAC Crew Leader (Public Assistance Coordinator) ...vi, 4, 89, 92, 94, 96, 117
 


Pandemic ................................................................................................. 72
 


Parks, Recreational, and Other .........................................19, 21, 68, 86–87
 


Performing Arts Facilities ............................................................. 10, 12, 18
 


Permanent Employees ........................................................................42–47
 


Permanent Relocation.........................................................................39–40
 


Permanent Work............................................................................66, 79–87
 


Pets .......................................................................................................... 72
 


Piggyback Contracting............................................................................. 52
 


Policies ............................................................................7–8, 42, 45, 73, 78
 


Pre-Disaster Capacity ............................................................(see Capacity)
 


Pre-Disaster Design ..................................................................(see Design)
 


Pre-Disaster Function.............................................................(see Function)
 


Preliminary Damage Assessment....................................................2, 90–91
 


Prison Labor............................................................................................. 44
 


Private Nonprofit – Eligibility Criteria.............................................10–11, 13
 


Private Nonprofit – Eligible Services ...................................................15–19
 


Private Nonprofit – Ineligible Services or Facilities .................................. 20
 


Private Nonprofit – Membership Requirements ....................................... 13
 


Index 
Private Nonprofit – Mixed Use Facilities .............................................19–20
 


Process Overview..................................................................................... 89
 


Procurement Procedures ........................................40, 41, 51–53, 104, 108
 


Progress Reports.................................................................................... 141
 


Project ..................................................(see Large Projects, Small Projects)
 


Project Formulation ...........................................................................94–108
 


Project Location ....................................................................................... 99
 


Project Management Costs.................................................................61–62
 


Project Supervision Costs........................................................................ 61
 


Project Worksheet (PW).......................................................................96–97
 


Public Entities......................................................................................21–22
 


Public Housing Authority.......................................................................... 26
 


Pumping – Widespread ............................................................................ 73
 


Reasonable Cost...........................................................................40–41, 51
 


Reassigned Employees............................................................................ 43
 


Record Keeping...............................................................................137–138
 


Record Retention ........................................................................... 138, 142
 


Registry, Debris ........................................................... (see Debris Registry)
 


Regular Time and Overtime.................................................................42–47 
 

Regulations..............................................................................................7–8
 


Rehabilitation Facilities..................................................... 11, 12, 16, 17, 18
 


Relocation of a Facility – Permanent................ (see Permanent Relocation)
 


Relocation of a Facility – Temporary .................(see Temporary Relocation)
 


Repair vs. Replacement (50 Percent Rule)....................................36–38, 83
 


Request for Public Assistance (Request) ........................................... 92, 93
 


Resource Conservation and Recovery Act ............................................ 134
 


Roads ......................................................................................25–26, 79–82
 


R.S. Means............................................................................................. 106
 


Salvage Value ..................................................................................... 40, 50
 


Schools....................................................................9, 10, 11, 12, 15–16, 73
 


Scope of Eligible Work ..............................................96, 101–102, 105, 109
 


Scope of Work, Changes ................................................................139–140
 


Senior Citizen Centers.................................................................. 11, 12, 18
 


Seasonal Employees ...........................................................................42–43
 


Seismic Safety.......................................................................................... 35
 


Sewage Collection Systems............................................................... 18, 85
 


Shelter Workshops ....................................................................... 11, 12, 18
 


Small Business Administration (SBA)..................................................13–15
 


Small Disasters........................................................................................5–6
 


Small Projects .............................95, 96, 106–108, 109, 113, 137, 140, 141
 


Snow Removal ......................................................................................... 76
 


Special Considerations ...................................................................115–136
 


Specialists .......................................................(see PA Technical Specialist)
 


 Index 
Stafford Act ................................................................. i, 1, 7–8, Appendix A
 


Standard Operating Procedures .........................................................89–90
 


State Coordinating Officer.......................................................................... 3
 


State Management Administrative Costs................................................. 65
 


State Management of Disasters..............................................................5–6
 


Statute........................................................................................................ 7
 


Statutory Exclusions........................................................................128–129
 


Stump Removal...................................................................................68–69
 


Subgrantee............................................................................(see Applicant)
 


Supervisors ........................................................................................ 44, 61
 


Supplies........................................................................................ 48, 49, 83
 


Surveys for Damage............................................................................55–56
 


Temporary Employees.............................................................................. 43
 


Temporary Relocation .........................................................................38–39
 


Third Party Liability................................................................................... 50
 


Time and Materials Contracts .......................................................... 53, 103
 


Time Extensions ..........................................................38–39, 113, 139, 141
 


Time Limits ..........................................................................38–39, 138–139
 


Trees, Shrubs, and Other Ground Cover.................................................. 87
 


Tribal Grantee ...................................................................(see Indian Tribes)
 


Unit Costs..........................................................................41, 103–104, 106
 


U.S. Army Corps of Engineers ......................................24–25, 80, 117, 132 
 

U.S. Fish and Wildlife Service ........................................ 117, 130, 132, 133 
 

Utilities.........................................................................10, 18, 21, 54–56, 85
 


Validation...................................................................................96, 106–108
 


Vector Control .................................................................................... 55, 74
 


Volunteer Labor .................................................... (see Donated Resources)
 


Water Control Facilities .......................................................................82–83
 


Website – FEMA ....................................................................... 90, 106, 128
 


Wild and Scenic Rivers Act .................................................................... 135
 


Work ....................................................................................................29–40
 


Zoos ............................................................................................. 10, 12, 18
 


Index 

APPENDIx.A 

Robert T. Stafford Disaster
 

Relief and Emergency 

Assistance Act, Public 

Law 93-288, as amended, 

42 U.S.C. 5121-5207, 

and Related Authorities
 
 

Title.I.–.Findings,.Declarations.and.Definitions.....................................A-6



Sec. 101. Congressional Findings and Declarations
 


(42 U.S.C. 5121).........................................................................A-6



Sec. 102. Definitions (42 U.S.C. 5122)* ............................................A-7



Title.II.–.Disaster.Preparedness.and.Mitigation.Assistance..................A-9



Sec. 201. Federal and State Disaster Preparedness Programs 

(42 U.S.C. 5131).........................................................................A-9



Sec. 202. Disaster Warnings (42 U.S.C. 5132) ...............................A-10



Sec. 203. Predisaster Hazard Mitigation (42 U.S.C. 5133).............A-11



Sec. 204. Interagency Task Force (42 U.S.C. 5134) .......................A-16



Title.III.–.Major.Disaster.and.Emergency.Assistance
 


Administration..................................................................................A-17



Sec. 301. Waiver of Administrative Conditions (42 U.S.C. 5141) ...A-17



Sec. 302. Coordinating Officers (42 U.S.C. 5143)*.........................A-17



Sec. 303. Emergency Support and Response Teams
 


(42 U.S.C. 5144)*......................................................................A-18



Sec. 304. Reimbursement of Federal Agencies (42 U.S.C. 5147)..A-19



Sec. 305. Nonliability of Federal Government (42 U.S.C. 5148).....A-19



Sec. 306. Performance of Services (42 U.S.C. 5149).....................A-20



Sec. 307. Use of Local Firms and Individuals (42 U.S.C. 5150)*....A-20



Sec. 308. Nondiscrimination in Disaster Assistance
 


(42 U.S.C. 5151)*......................................................................A-21



Sec. 309. Use and Coordination of Relief Organizations
 


(42 U.S.C. 5152).......................................................................A-22



Appendix A: Stafford Act P.L. 93-288 A-
Sec. 310. Priority to Certain Applications for Public Facility 

and Public Housing Assistance (42 U.S.C. 5153) ....................A-23



Sec. 311. Insurance (42 U.S.C. 5154).............................................A-23



Prohibited Flood Disaster Assistance (42 U.S.C. 5154a) ...............A-24



Sec. 312. Duplication of Benefits (42 U.S.C. 5155)........................A-26



Sec. 313. Standard of Review (42 U.S.C. 5156).............................A-27



Sec. 314. Penalties (42 U.S.C. 5157)..............................................A-27



Sec. 315. Availability of Materials (42 U.S.C. 5158)........................A-28



Sec. 316. Protection of Environment (42 U.S.C. 5159)...................A-28



Sec. 317. Recovery of Assistance (42 U.S.C. 5160).......................A-28



Sec. 318. Audits and Investigations (42 U.S.C. 5161)....................A-29



Sec. 319. Advance of Non-Federal Share (42 U.S.C. 5162)...........A-29



Sec. 320. Limitation on Use of Sliding Scale (42 U.S.C. 5163) ......A-30



Sec. 321. Rules and Regulations (42 U.S.C. 5164) ........................A-30



Sec. 322. Mitigation Planning (42 U.S.C. 5165)..............................A-30



Sec. 323. Standards for Public and Private Structures
 


(42 U.S.C. 5165a).....................................................................A-32



Sec. 324. Management Costs (42 U.S.C. 5165b)...........................A-32



Sec. 325. Public Notice, Comment, and Consultation
 


Requirements (42 U.S.C. 5165c)..............................................A-33



Sec. 326. Designation of Small State and Rural Advocate* ...........A-34



Title.Iv.–.Major.Disaster.Assistance.Programs...................................A-34



Sec. 401. Procedure for Declaration (42 U.S.C. 5170) ...................A-34



Sec. 402. General Federal Assistance (42 U.S.C. 5170a)* .............A-35



Sec. 403. Essential Assistance (42 U.S.C. 5170b)* ........................A-36



Sec. 404. Hazard Mitigation (42 U.S.C. 5170c)*.............................A-38



Sec. 405. Federal Facilities (42 U.S.C. 5171) .................................A-40



Sec. 406. Repair, Restoration, and Replacement of Damaged
 


Facilities (42 U.S.C. 5172)*.......................................................A-41



Sec. 407. Debris Removal (42 U.S.C. 5173)*..................................A-50



Sec. 408. Federal Assistance to Individuals and Households
 


(42 U.S.C. 5174)*......................................................................A-51



Sec. 410. Unemployment Assistance (42 U.S.C. 5177) .................A-57



Sec. 412. Food Coupons and Distribution (42 U.S.C. 5179)..........A-58



Sec. 413. Food Commodities (42 U.S.C. 5180)..............................A-58



Sec. 414. Relocation Assistance (42 U.S.C. 5181).........................A-59



Sec. 415. Legal Services (42 U.S.C. 5182).....................................A-59



Sec. 416. Crisis Counseling Assistance and Training
 


(42 U.S.C. 5183).......................................................................A-59



Sec. 417. Community Disaster Loans (42 U.S.C. 5184)*................A-59



Sec. 418. Emergency Communications (42 U.S.C. 5185) ..............A-60



Sec. 419. Emergency Public Transportation (42 U.S.C. 5186) .......A-60



A- Appendix A: Stafford Act P.L. 93-288


Sec. 420. Fire Management Assistance (42 U.S.C. 5187)..............A-60



Sec. 421. Timber Sale Contracts (42 U.S.C. 5188) ........................A-61



Sec. 422. Simplified Procedures (42 U.S.C. 5189) .........................A-62



Sec. 423. Appeals of Assistance Decisions (42 U.S.C. 5189a) ......A-62



Sec. 424. Date of Eligibility; Expenses Incurred Before Date of
 


Disaster (42 U.S.C. 5189b).......................................................A-63



Sec. 425. Transportation Assistance to Individuals and
 


Households*.............................................................................A-63



Sec. 426. Case Management Services* .........................................A-63



Sec. 427. Essential Service Providers*...........................................A-63



Title.v.–.Emergency.Assistance.Programs.........................................A-64



Sec. 501. Procedure for Declaration (42 U.S.C. 5191) ...................A-64



Sec. 502. Federal Emergency Assistance (42 U.S.C. 5192)*..........A-65



Sec. 503. Amount of Assistance (42 U.S.C. 5193) .........................A-66



Title.vI.–.Emergency.Preparedness...................................................A-67



Sec. 601. Declaration of Policy (42 U.S.C. 5195) ...........................A-67



Sec. 602. Definitions (42 U.S.C. 5195a) .........................................A-67



Sec. 603. Administration of Title (42 U.S.C. 5195b) .......................A-69



SUBTITLE A – POWERS AND DUTIES...........................................A-69



Sec. 611. Detailed Functions or Administration
 


(42 U.S.C. 5196)*......................................................................A-69



Sec. 612. Mutual Aid Pacts Between States and Neighboring
 


Countries (42 U.S.C. 5196a) ....................................................A-75



Sec. 613. Contributions for Personnel and Administrative
 


Expenses (42 U.S.C. 5196b)*...................................................A-75



Sec. 614. Requirement for State Matching Funds for Construction
 


of Emergency Operating Centers (42 U.S.C. 5196c) ...............A-78



Sec. 615. Use of Funds to Prepare for and Respond to Hazards
 


(42 U.S.C. 5196d).....................................................................A-78



Sec. 616. Disaster Related Information Services* ..........................A-78



SUBTITLE B – GENERAL PROVISIONS.........................................A-79



Sec. 621. Administrative Authority (42 U.S.C. 5197) ......................A-79



Sec. 622. Security Regulations (42 U.S.C. 5197a) .........................A-81



Sec. 623. Use of Existing Facilities (42 U.S.C. 5197b) ...................A-82



Sec. 624. Annual Report to Congress (42 U.S.C. 5197c)...............A-83



Sec. 625. Applicability of Subchapter (42 U.S.C. 5197d)...............A-83



Sec. 626. Authorization of Appropriation and Transfers of Funds
 


(42 U.S.C. 5197e).....................................................................A-83



Sec. 627. Relation to Atomic Energy Act of 1954.
 


(42 U.S.C. 5197f)......................................................................A-84



Sec. 628. Federal Bureau of Investigation. (42 U.S.C. 5197g) .......A-84



Appendix A: Stafford Act P.L. 93-288 A-
Title.vII.–.Miscellaneous...................................................................A-84



Sec. 701. Rules and Regulations (42 U.S.C. 5201) ........................A-84



Sec. 705. Disaster Grant Closeout Procedures (42 U.S.C. 5205) ..A-85



Sec. 706. Firearms Policies (42 U.S.C. 5207)*................................A-86



Miscellaneous.Statutory.Provisions.that.Relate.to.the
 


Stafford.Act.....................................................................................A-87



Excess Disaster Assistance Payments as Budgetary Emergency
 


Requirements (42 U.S.C. 5203)................................................A-87



Insular Areas Disaster Survival and Recovery; Definitions
 


(42 U.S.C. 5204).......................................................................A-87



Authorization of Appropriations for Insular Areas
 


(Disaster Recovery) (42 U.S.C. 5204a).....................................A-88



Technical Assistance for Insular Areas (Disaster Recovery)
 


(42 U.S.C. 5204b).....................................................................A-88



Hazard Mitigation for Insular Areas (Limitation on Amount of
 


Contributions, Local Match) (42 U.S.C. 5204c) .......................A-89



Buy American (Requirements) (42 U.S.C. 5206).............................A-89



Department.of.Homeland.Security.Appropriations.Act,.2007,
 


Pub..L..No..109-295,.120.Stat..1355.(2006),.Signed.on
 


October.4,.2006...............................................................................A-90



Sec. 508. (Notifying Congressional Committees before
 


Announcement of Grants FY 2007)..........................................A-90



Sec. 536. (Accounting for Needs of Individuals with Household
 


Pets and Service Animals) .......................................................A-90



Sec. 547. (Use of Local Firms)........................................................A-90



Sec. 612. (Reference to Director of FEMA Considered to Refer
 


to Administrator of FEMA)........................................................A-90



Sec. 640a. Disclosure of Certain Information to Law
 


Enforcement Agencies .............................................................A-91



Sec. 653. Federal Preparedness.....................................................A-91



Sec. 689b. Reunification.................................................................A-91



Sec. 689c. National Emergency Family Registry and Locator
 


System .....................................................................................A-94



Sec. 689i. Individuals and Households Pilot Program....................A-95



Sec. 689j. Public Assistance Pilot Program....................................A-97



Sec. 689k. Disposal of Unused Temporary Housing Units.............A-99



* This section of the Stafford Act has been amended by either the Department of Homeland 

Security Appropriations Act of 2007, Pub. L. No. 109-295, 120 Stat. 1355 (2006), signed 

on October 4, 2006, the Pets Evacuation and Transportation Standards Act of 2006, Pub. 

L. No 109-308, 120 Stat. 1725 (2006), signed on October 6, 2006, or the Security and 

Accountability for Every Port Act of 2006, Pub. L. No. 109-347, 120 Stat. 1884 (2006), 

signed on October 13, 2006. The changes are effective for emergencies or major disasters 

declared on or after October 4, 6, or 13, 2006. For events before those dates, please 

consult an earlier version of the Stafford Act. 

A- Appendix A: Stafford Act P.L. 93-288


Emergency.Supplemental.Appropriations.Act.for.Defense,



the.Global.War.on.Terror,.and.Hurricane.Recovery,.2006,
 


Pub..L..No..109-234,.120.Stat..418.(2006),.Signed.on
 


june.15,.2006................................................................................A-100



Sec. 2401......................................................................................A-100



Sec. 2403......................................................................................A-100



Department.of.Homeland.Security.Appropriations.Act,.2006,
 


Pub..L..No..109-90,.119.Stat..2064.(2005),.Signed.on
 


October.18,.2005...........................................................................A-100



Sec. 508........................................................................................A-100



Title.v.(National.Emergency.Management).of.the.Homeland
 


Security.Act.of.2002.6.u.S.C..311..et.seq......................................A-101



Sec. 501. Definitions.....................................................................A-101



Sec. 502. Definition.......................................................................A-102



Sec. 503. Federal Emergency Management Agency....................A-102



Sec. 504. Authority and Responsibilities ......................................A-105



Sec. 505. Functions Transferred...................................................A-108



Sec. 506. Preserving the Federal Emergency Management
 


Agency ...................................................................................A-109



Sec. 507. Regional Offices ...........................................................A-109



Sec. 508. National Advisory Council ............................................A-113



Sec. 509. National Integration Center...........................................A-115



Sec. 510. Credentialing and Typing..............................................A-117



Sec. 511. The National Infrastructure Simulation and Analysis
 


Center.....................................................................................A-117



Sec. 512. Evacuation Plans and Exercises...................................A-118



Sec. 513. Disability Coordinator ...................................................A-120



Sec. 514. Department and Agency Officials.................................A-121



Sec. 515. National Operations Center..........................................A-122



Sec. 516. Chief Medical Officer....................................................A-122



Sec. 517. Nuclear incident response............................................A-123



Sec. 518. Conduct of certain public health-related activities.......A-123



Sec. 519. Use of national private sector networks in
 


emergency response..............................................................A-124 
 

Sec. 520. Use of commercially available technology, goods,
 


and services ...........................................................................A-124



Sec. 521. Procurement of security countermeasures for
 


Strategic National Stockpile...................................................A-124



Appendix A: Stafford Act P.L. 93-288 A-
Robert.T..Stafford.Disaster.Relief.and. 

Emergency.Assistance.Act,.Public.Law. 

93-288,.as.amended,.42.u.S.C..5121­

5207,.and.Related.Authorities 

April.2007 

uNITED.STATES.CODE. 

Title.42..THE.PuBLIC.HEALTH.AND.WELFARE. 

CHAPTER.68..DISASTER.RELIEF 

TITLE.I.–.FINDINGS,.DECLARATIONS.AND.DEFINITIONS 

Sec..101..Congressional.Findings.and.Declarations.(42.u.S.C.. 

5121) 

(a)		 The Congress hereby finds and declares that – 

(1)		 because disasters often cause loss of life, human suffering, loss 

of income, and property loss and damage; and 

(2)		 because disasters often disrupt the normal functioning of 

governments and communities, and adversely affect individuals 

and families with great severity; special measures, designed 

to assist the efforts of the affected States in expediting the 

rendering of aid, assistance, and emergency services, and 

the reconstruction and rehabilitation of devastated areas, are 

necessary. 

(b)		 It is the intent of the Congress, by this Act, 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 which result from such 

disasters by – 

(1)		 revising and broadening the scope of existing disaster relief 

programs; 

(2)		 encouraging the development of comprehensive disaster 

preparedness and assistance plans, programs, capabilities, and 

organizations by the States and by local governments; 

A-	 Appendix A: Stafford Act P.L. 93-288 
(3)		 achieving greater coordination and responsiveness of disaster 

preparedness and relief programs; 

(4)		 encouraging individuals, States, and local governments 

to protect themselves by obtaining insurance coverage to 

supplement or replace governmental assistance; 

(5)		 encouraging hazard mitigation measures to reduce losses from 

disasters, including development of land use and construction 

regulations; and 

(6)		 providing Federal assistance programs for both public and 

private losses sustained in disasters. 

Sec..102..Definitions.(42.u.S.C..5122)* 

As used in this Act – 

(1)		 “Emergency” means 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. 

(2)		 “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. 

(3)		 “United States” means the fifty States, the District of Columbia, 

Puerto Rico, the Virgin Islands, Guam, American Samoa, and 

the Commonwealth of the Northern Mariana Islands. 

(4)		 “State” means any State of the United States, the District of 

Columbia, Puerto Rico, the Virgin Islands, Guam, American 

Samoa, and the Commonwealth of the Northern Mariana 

Islands. 

Appendix A: Stafford Act P.L. 93-288	 	 A-
(5)		 “Governor” means the chief executive of any State. 

(6)		 “Individual with a Disability”– The term “individual with a



disability” means an individual with a disability as defined in 
 

section 3(2) of the Americans with Disabilities Act of 1990 (42 
 

U.S.C. 12102(2)). 

(7)		 The term “local government” means – 

(A)		 a county, municipality, city, town, township, local public 

authority, school district, special district, intrastate district, 

council of governments (regardless of whether the council 

of governments is incorporated as a nonprofit corporation 

under State law), regional or interstate government entity, or 

agency or instrumentality of a local government; 

(B)		 an Indian tribe or authorized tribal organization, or Alaska 

Native village or organization; and 

(C) a rural community, unincorporated town or village, or other 

public entity, for which an application for assistance is made 

by a State or political subdivision of a State. 

(8)		 “Federal agency” means 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. 

(9)		 “Public facility” means the following facilities owned by a State 

or local government: 

(A) Any flood control, navigation, irrigation, reclamation, public 

power, sewage treatment and collection, water supply and 

distribution, watershed development, or airport facility. 

(B) Any non-Federal-aid street, road, or highway. 

(C) Any other public building, structure, or system, including 

those used for educational, recreational, or cultural 

purposes. 

(D) Any park. 

(10) Private nonprofit facility – 

(A) In General – The term “private nonprofit facility” means 

private nonprofit educational, utility, irrigation, emergency, 

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medical, rehabilitational, and temporary or permanent 

custodial care facilities (including those for the aged and 

disabled) and facilities on Indian reservations, as defined by 

the President. 

(B)		Additional Facilities – In addition to the facilities described 

in subparagraph (A), the term “private nonprofit facility” 

includes any private nonprofit facility that provides essential 

services of a governmental nature to the general public 

(including museums, zoos, performing arts facilities, 

community arts centers, libraries, homeless shelters, senior 

citizen centers, rehabilitation facilities, shelter workshops, 

and facilities that provide health and safety services of a 

governmental nature), as defined by the President. 

TITLE.II.–.DISASTER.PREPAREDNESS.AND.MITIGATION. 

ASSISTANCE 

Sec..201..Federal.and.State.Disaster.Preparedness.Programs.(42. 

u.S.C..5131) 

(a)		 Utilization of services of other agencies – The President is 

authorized to establish a program of disaster preparedness that 

utilizes services of all appropriate agencies and includes – 

(1)		 preparation of disaster preparedness plans for mitigation, 

warning, emergency operations, rehabilitation, and recovery; 

(2)		 training and exercises; 

(3)		 postdisaster critiques and evaluations; 

(4)		 annual review of programs; 

(5)		 coordination of Federal, State, and local preparedness 

programs; 

(6)		 application of science and technology; 

(7)		 research. 

(b) Technical assistance for the development of plans and programs 

– The President shall provide technical assistance to the States 

in developing comprehensive plans and practicable programs 

for preparation against disasters, including hazard reduction, 

avoidance, and mitigation; for assistance to individuals, 

businesses, and State and local governments following such 

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disasters; and for recovery of damages or destroyed public and 

private facilities. 

(c)		 Grants to States for development of plans and programs – Upon 

application by a State, the President is authorized to make grants, 

not to exceed in the aggregate to such State $250,000, for the 

development of plans, programs, and capabilities for disaster 

preparedness and prevention. Such grants shall be applied for 

within one year from May 22, 1974. Any State desiring financial 

assistance under this section shall designate or create an agency 

to plan and administer such a disaster preparedness program, and 

shall, through such agency, submit a State plan to the President, 

which shall 

(1)		 set forth a comprehensive and detailed State program for 

preparation against and assistance following, emergencies 

and major disasters, including provisions for assistance to 

individuals, businesses, and local governments; and 

(2)		 include provisions for appointment and training of appropriate 

staffs, formulation of necessary regulations and procedures and 

conduct of required exercises. 

(d)		 Grants for improvement, maintenance, and updating of State plans 

– The President is authorized to make grants not to exceed 50 per 

centum of the cost of improving, maintaining and updating State 

disaster assistance plans, including evaluations of natural hazards 

and development of the programs and actions required to mitigate 

such hazards; except that no such grant shall exceed $50,000 per 

annum to any State. 

Sec..202..Disaster.Warnings.(42.u.S.C..5132) 

(a)		 Readiness of Federal agencies to issue warnings to state and local 

officials – The President shall insure that all appropriate Federal 

agencies are prepared to issue warnings of disasters to State and 

local officials. 

(b)		 Technical assistance to State and local governments for effective 

warnings – The President shall direct appropriate Federal agencies 

to provide technical assistance to State and local governments to 

insure that timely and effective disaster warning is provided. 

(c)		 Warnings to governmental authorities and public endangered 

by disaster – The President is authorized to utilize or to make 

available to Federal, State, and local agencies the facilities of the 

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civil defense communications system established and maintained 

pursuant to section 5196(c) of this title or any other Federal 

communications system for the purpose of providing warning 

to governmental authorities and the civilian population in areas 

endangered by disasters. 

(d)		 Agreements with commercial communications systems for use of 

facilities – The President is authorized to enter into agreements 

with the officers or agents of any private or commercial 

communications systems who volunteer the use of their systems 

on a reimbursable or nonreimbursable basis for the purpose of 

providing warning to governmental authorities and the civilian 

population endangered by disasters. 

Sec..203..Predisaster.Hazard.Mitigation.(42.u.S.C..5133) 

(a)		 Definition of Small Impoverished Community – In this section, the 

term “small impoverished community” means a community of 

3,000 or fewer individuals that is economically disadvantaged, as 

determined by the State in which the community is located and 

based on criteria established by the President. 

(b)		 Establishment of Program – The President may establish a 

program to provide technical and financial assistance to States 

and local governments to assist in the implementation of 

predisaster hazard mitigation measures that are cost-effective 

and are designed to reduce injuries, loss of life, and damage and 

destruction of property, including damage to critical services and 

facilities under the jurisdiction of the States or local governments. 

(c)		 Approval by President – If the President determines that a State 

or local government has identified natural disaster hazards in 

areas under its jurisdiction and has demonstrated the ability to 

form effective public-private natural disaster hazard mitigation 

partnerships, the President, using amounts in the National 

Predisaster Mitigation Fund established under subsection (i) 

(referred to in this section as the “Fund”), may provide technical 

and financial assistance to the State or local government to be 

used in accordance with subsection (e). 

(d)		 State Recommendations – 

(1)		 In general – 

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(A)		 Recommendations -The Governor of each State may 

recommend to the President not fewer than five local 

governments to receive assistance under this section. 

(B)		 Deadline for submission -The recommendations under 

subparagraph (A) shall be submitted to the President not 

later than October 1, 2001, and each October 1st thereafter 

or such later date in the year as the President may establish. 

(C) Criteria – In making recommendations under subparagraph 

(A), a Governor shall consider the criteria specified in 

subsection (g). 

(2)		 Use – 

(A) In general – Except as provided in subparagraph (B), in 

providing assistance to local governments under this 

section, the President shall select from local governments 

recommended by the Governors under this subsection. 

(B)		Extraordinary circumstances – In providing assistance to 

local governments under this section, the President may 

select a local government that has not been recommended 

by a Governor under this subsection if the President 

determines that extraordinary circumstances justify the 

selection and that making the selection will further the 

purpose of this section. 

(3)		 Effect of failure to nominate – If a Governor of a State fails to 

submit recommendations under this subsection in a timely 

manner, the President may select, subject to the criteria 

specified in subsection (g), any local governments of the State 

to receive assistance under this section. 

(e)		 Uses of Technical and Financial Assistance – 

(1)		 In general – Technical and financial assistance provided under 

this section 

(A) shall be used by States and local governments principally to 

implement predisaster hazard mitigation measures that are 

cost-effective and are described in proposals approved by 

the President under this section; and 

(B) may be used – 

(i)		 to support effective public-private natural disaster 

hazard mitigation partnerships; 

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(ii)		 to improve the assessment of a community’s 

vulnerability to natural hazards; or 

(iii)		 to establish hazard mitigation priorities, and an 

appropriate hazard mitigation plan, for a community 

(2)		 Dissemination – A State or local government may use not more 

than 10 percent of the financial assistance received by the State 

or local government under this section for a fiscal year to fund 

activities to disseminate information regarding cost-effective 

mitigation technologies. 

(f)		 Allocation of Funds – The amount of financial assistance made 

available to a State (including amounts made available to local 

governments of the State) under this section for a fiscal year – 

(1)		 shall be not less than the lesser of – 

(A)		 $500,000; or 

(B) the amount that is equal to 1.0 percent of the total funds 

appropriated to carry out this section for the fiscal year; 

(2)		 shall not exceed 15 percent of the total funds described in 
 

paragraph (1)(B); and



(3)		 shall be subject to the criteria specified in subsection (g). 

(g)		 Criteria for Assistance Awards – In determining whether to provide 

technical and financial assistance to a State or local government 

under this section, the President shall take into account – 

(1)		 the extent and nature of the hazards to be mitigated; 

(2)		 the degree of commitment by the State or local government to 

reduce damages from future natural disasters; 

(3)		 the degree of commitment by the State or local government to 

support ongoing non-Federal support for the hazard mitigation 

measures to be carried out using the technical and financial 

assistance; 

(4)		 the extent to which the hazard mitigation measures to be 

carried out using the technical and financial assistance 

contribute to the mitigation goals and priorities established by 

the State; 

(5)		 the extent to which the technical and financial assistance is 

consistent with other assistance provided under this Act; 

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(6)		 the extent to which prioritized, cost-effective mitigation 

activities that produce meaningful and definable outcomes are 

clearly identified; 

(7)		 if the State or local government has submitted a mitigation plan 

under section 5165 of this title, the extent to which the activities 

identified under paragraph (6) are consistent with the mitigation 

plan; 

(8)		 the opportunity to fund activities that maximize net benefits to 

society; 

(9)		 the extent to which assistance will fund mitigation activities in 

small impoverished communities; and 

(10) such other criteria as the President establishes in consultation 

with State and local governments. 

(h)		 Federal Share – 

(1)		 In general – Financial assistance provided under this section 

may contribute up to 75 percent of the total cost of mitigation 

activities approved by the President. 

(2)		 Small impoverished communities – Notwithstanding paragraph 

(1), the President may contribute up to 90 percent of the total 

cost of a mitigation activity carried out in a small impoverished 

community. 

(i)		 National Predisaster Mitigation Fund – 

(1)		 Establishment – The President may establish in the Treasury 

of the United States a fund to be known as the “National 

Predisaster Mitigation Fund,” to be used in carrying out this 

section. 

(2)		 Transfers to fund – There shall be deposited in the Fund – 

(A)		 amounts appropriated to carry out this section, which shall 

remain available until expended; and 

(B)		 sums available from gifts, bequests, or donations of services 

or property received by the President for the purpose of 

predisaster hazard mitigation. 

(3)		 Expenditures from fund – Upon request by the President, 

the Secretary of the Treasury shall transfer from the Fund to 

the President such amounts as the President determines are 

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necessary to provide technical and financial assistance under 

this section. 

(4)		 Investment of amounts – 

(A) In general – The Secretary of the Treasury shall invest 

such portion of the Fund as is not, in the judgment of 

the Secretary of the Treasury, required to meet current 

withdrawals. Investments may be made only in interestbearing obligations of the United States. 

(B) Acquisition of obligations – For the purpose of investments 

under subparagraph (A), obligations may be acquired – 

(i)		 on original issue at the issue price; or 

(ii)		 by purchase of outstanding obligations at the market 

price. 

(C) Sale of obligations – Any obligation acquired by the Fund 

may be sold by the Secretary of the Treasury at the market 

price. 

(D)		Credits to fund – The interest on, and the proceeds from the 

sale or redemption of, any obligations held in the Fund shall 

be credited to and form a part of the Fund. 

(E)		 Transfers of amounts – 

(i)		 In general – The amounts required to be transferred 

to the Fund under this subsection shall be transferred 

at least monthly from the general fund of the Treasury 

to the Fund on the basis of estimates made by the 

Secretary of the Treasury. 

(ii)		 Adjustments – Proper adjustment shall be made in 

amounts subsequently transferred to the extent prior 

estimates were in excess of or less than the amounts 

required to be transferred. 

(j)		 Limitation on Total Amount of Financial Assistance – The President 

shall not provide financial assistance under this section in an 

amount greater than the amount available in the Fund. 

(k)		 Multihazard Advisory Maps – 

(1)		 Definition of multihazard advisory map – In this subsection, the 

term “multihazard advisory map” means a map on which hazard 

data concerning each type of natural disaster is identified 

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simultaneously for the purpose of showing areas of hazard 

overlap. 

(2)		 Development of maps – In consultation with States, local 

governments, and appropriate Federal agencies, the President 

shall develop multihazard advisory maps for areas, in not fewer 

than five States, that are subject to commonly recurring natural 

hazards (including flooding, hurricanes and severe winds, and 

seismic events). 

(3)		 Use of technology – In developing multihazard advisory maps 

under this subsection, the President shall use, to the maximum 

extent practicable, the most cost-effective and efficient 

technology available. 

(4)		 Use of maps – 

(A) Advisory nature – The multihazard advisory maps shall 

be considered to be advisory and shall not require the 

development of any new policy by, or impose any new policy 

on, any government or private entity. 

(B)		Availability of maps – The multihazard advisory maps 

shall be made available to the appropriate State and local 

governments for the purposes of – 

(i)		 informing the general public about the risks of natural 

hazards in the areas described in paragraph (2); 

(ii)		 supporting the activities described in subsection (e); 

and 

(iii)		 other public uses. 

(l)Report on Federal and State Administration – Not later than Oct. 

30, 2000, the President, in consultation with State and local 

governments, shall submit to Congress a report evaluating 

efforts to implement this section and recommending a 

process for transferring greater authority and responsibility for 

administering the assistance program established under this 

section to capable States. 

(m) Termination of Authority – The authority provided by this section 

terminates September 30, 2008. 

Sec..204..Interagency.Task.Force.(42.u.S.C..5134) 

(a)		 In General – The President shall establish a Federal interagency 

task force for the purpose of coordinating the implementation 

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of predisaster hazard mitigation programs administered by the 

Federal Government. 

(b)		 Chairperson – The Director of the Federal Emergency Management 

Agency shall serve as the chairperson of the task force. 

(c)		 Membership – The membership of the task force shall include 

representatives of 

(1)		 relevant Federal agencies; 

(2)		 State and local government organizations (including Indian 

tribes); and 

(3)		 the American Red Cross. 

TITLE.III.–.MAjOR.DISASTER.AND.EMERGENCy. 

ASSISTANCE.ADMINISTRATION 

Sec..301..Waiver.of.Administrative.Conditions.(42.u.S.C..5141) 

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..302..Coordinating.Officers.(42.u.S.C..5143)* 

(a)		 Appointment of Federal coordinating officer – Immediately upon 

his declaration of a major disaster or emergency, the President 

shall appoint a Federal coordinating officer to operate in the 

affected area. 

(b)		 Functions of Federal coordinating officer – In order to effectuate 

the purposes of this Act, the Federal coordinating officer, within 

the affected area, shall 

(1)		 make an initial appraisal of the types of relief most urgently 

needed; 

(2)		 establish such field offices as he deems necessary and as are 

authorized by the President; 

(3)		 coordinate the administration of relief, including activities of 

the State and local governments, the American National Red 

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Cross, the Salvation Army, the Mennonite Disaster Service, 

and other relief or disaster assistance organizations, which 

agree to operate under his advice or direction, except that 

nothing contained in this Act shall limit or in any way affect the 

responsibilities of the American National Red Cross under the 

Act of January 5, 1905, as amended (33 Stat. 599) and 

(4)		 take such other action, consistent with authority delegated to 

him by the President, and consistent with the provisions of this 

Act, as he may deem necessary to assist local citizens and 

public officials in promptly obtaining assistance to which they 

are entitled. 

(c)		 State Coordinating officer – When the President determines 

assistance under this Act is necessary, he shall request that the 

Governor of the affected State designate a State coordinating 

officer for the purpose of coordinating State and local disaster 

assistance efforts with those of the Federal Government. 

(d)		 Where the area affected by a major disaster or emergency includes 

parts of more than 1 State, the President, at the discretion of the 

President, may appoint a single Federal coordinating officer for 

the entire affected area, and may appoint such deputy Federal 

coordinating officers to assist the Federal coordinating officer as 

the President determines appropriate. 

Sec..303..Emergency.Support.and.Response.Teams.(42.u.S.C.. 

5144)* 

(a)		 Emergency Support Teams – The President shall form emergency 

support teams of Federal personnel to be deployed in an area 

affected by a major disaster or emergency. Such emergency 

support teams shall assist the Federal coordinating officer 

in carrying out his responsibilities pursuant to this Act. Upon 

request of the President, the head of any Federal agency is 

directed to detail to temporary duty with the emergency support 

teams on either a reimbursable or nonreimbursable basis, as is 

determined necessary by the President, such personnel within the 

administrative jurisdiction of the head of the Federal agency as 

the President may need or believe to be useful for carrying out the 

functions of the emergency support teams, each such detail to be 

without loss of seniority, pay, or other employee status. 

(b)		 Emergency Response TeamsA- Appendix A: Stafford Act P.L. 93-288 
(1)		 Establishment – In carrying out subsection (a), the President, 

acting through the Director of the Federal Emergency 

Management Agency, shall establish­

(A)		 at a minimum 3 national response teams; and 

(B)		 sufficient regional response teams, including Regional Office 

strike teams under section 507 of the Homeland Security Act 

of 2002; and 

(C)		other response teams as may be necessary to meet 

the incident management responsibilities of the Federal 

Government. 

(2)		 Target Capability Level – The Director shall ensure that specific 

target capability levels, as defined pursuant to the guidelines 

established under section 646(a) of the Post-Katrina Emergency 

Management Reform Act of 2006, are established for Federal 

emergency response teams. 

(3)		 Personnel – The President, acting through the Director, shall 

ensure that the Federal emergency response teams consist of 

adequate numbers of properly planned, organized, equipped, 

trained, and exercised personnel to achieve the established 

target capability levels. Each emergency response team shall 

work in coordination with State and local officials and onsite 

personnel associated with a particular incident. 

(4)		 Readiness Reporting – The Director shall evaluate team 

readiness on a regular basis and report team readiness levels 

in the report required under section 652(a) of the Post-Katrina 

Emergency Management Reform Act of 2006. 

Sec..304..Reimbursement.of.Federal.Agencies.(42.u.S.C..5147) 

Federal agencies may be reimbursed for expenditures under this Act from 

funds appropriated for the purposes of this Act. Any funds received by 

Federal agencies as reimbursement for services or supplies furnished 

under the authority of this Act shall be deposited to the credit of the 

appropriation or appropriations currently available for such services or 

supplies. 

Sec..305..Nonliability.of.Federal.Government.(42.u.S.C..5148) 

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 

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discretionary function or duty on the part of a Federal agency or an 

employee of the Federal Government in carrying out the provisions of this 

Act. 

Sec..306..Performance.of.Services.(42.u.S.C..5149) 

(a) Utilization of services or facilities of State and local governments 

– In carrying out the purposes of this Act, any Federal agency is 

authorized to accept and utilize the services or facilities of any 

State or local government, or of any agency, office, or employee 

thereof, with the consent of such government. 

(b)		 Appointment of temporary personnel, experts, and consultants; 

acquisition, rental, or hire of equipment, services, materials and 

supplies – In performing any services under this Act, any Federal 

agency is authorized 

(1)		 to appoint and fix the compensation of such temporary 

personnel as may be necessary, without regard to the 

provisions of title 5, governing appointments in competitive 

service; 

(2)		 to employ experts and consultants in accordance with the 

provisions of section 3109 of such title, without regard to the 

provisions of chapter 51 and subchapter III of chapter 53 of 

such title relating to classification and General Schedule pay 

rates; and 

(3)		 to incur obligations on behalf of the United States by contract 

or otherwise for the acquisition, rental, or hire of equipment, 

services, materials, and supplies for shipping, drayage, travel, 

and communications, and for the supervision and administration 

of such activities. Such obligations, including obligations arising 

out of the temporary employment of additional personnel, may 

be incurred by an agency in such amount as may be made 

available to it by the President. 

Sec..307..use.of.Local.Firms.and.Individuals.(42.u.S.C..5150)* 

(a)		 Contracts or Agreements With Private Entities­

(1)		 In General – In the expenditure of Federal funds for debris 

clearance, 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 

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feasible and practicable, to those organizations, firms, and 

individuals residing or doing business primarily in the area 

affected by such major disaster or emergency. 

(2)		 Construction – This section shall not be considered to restrict 

the use of Department of Defense resources under this Act in 

the provision of assistance in a major disaster. 

(3)		 Specific Geographic Area – In carrying out this section, a 

contract or agreement may be set aside for award based on a 

specific geographic area. 

(b)		 Implementation­

(1)		 Contracts not to entities in area – Any expenditure of 

Federal funds for debris clearance, 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, not 

awarded to an organization, firm, or individual residing or doing 

business primarily in the area affected by such major disaster 

shall be justified in writing in the contract file. 

(2)		 Transition – Following the declaration of an emergency or 

major disaster, an agency performing response, relief, and 

reconstruction activities shall transition work performed under 

contracts in effect on the date on which the President declares 

the emergency or major disaster to organizations, firms, and 

individuals residing or doing business primarily in any area 

affected by the major disaster or emergency, unless the head of 

such agency determines that it is not feasible or practicable to 

do so. 

(3)		 Formation of Requirements – The head of a Federal agency, 

as feasible and practicable, shall formulate appropriate 

requirements to facilitate compliance with this section. 

(c)		 Prior Contracts – Nothing in this section shall be construed to 

require any Federal agency to breach or renegotiate any contract 

in effect before the occurrence of a major disaster or emergency. 

Sec..308..Nondiscrimination.in.Disaster.Assistance.(42.u.S.C.. 

5151)* 

(a)		 Regulations for equitable and impartial relief operations – The 

President shall issue, and may alter and amend, such regulations 

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as may be necessary for the guidance of personnel carrying out 

Federal assistance functions at the site of a major disaster or 

emergency. Such regulations shall include provisions for insuring 

that the distribution of supplies, the processing of applications, 

and other relief and assistance activities shall be accomplished 

in an equitable and impartial manner, without discrimination on 

the grounds of race, color, religion, nationality, sex, age, disability, 

English proficiency, or economic status. 

(b)		 Compliance with regulations as prerequisite to participation by 

other bodies in relief operations – As a condition of participation 

in the distribution of assistance or supplies under this Act or of 

receiving assistance under this Act, governmental bodies and 

other organizations shall be required to comply with regulations 

relating to nondiscrimination promulgated by the President, and 

such other regulations applicable to activities within an area 

affected by a major disaster or emergency as he deems necessary 

for the effective coordination of relief efforts. 

Sec..309..use.and.Coordination.of.Relief.Organizations.(42.u.S.C.. 

5152) 

(a)		 In providing relief and assistance under this Act, the President 

may utilize, with their consent, the personnel and facilities 

of the American National Red Cross, the Salvation Army, the 

Mennonite Disaster Service, and other relief or disaster assistance 

organizations, in the distribution of medicine, food, supplies, or 

other items, and in the restoration, rehabilitation, or reconstruction 

of community services housing and essential facilities, whenever 

the President finds that such utilization is necessary. 

(b)		 The President is authorized to enter into agreements with 

the American National Red Cross, the Salvation Army, the 

Mennonite Disaster Service, and other relief or disaster assistance 

organizations under which the disaster relief activities of such 

organizations may be coordinated by the Federal coordinating 

officer whenever such organizations are engaged in providing 

relief during and after a major disaster or emergency. Any such 

agreement shall include provisions assuring that use of Federal 

facilities, supplies, and services will be in compliance with 

regulations prohibiting duplication of benefits and guaranteeing 

nondiscrimination promulgated by the President under this Act, 

and such other regulation as the President may require. 

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Sec..310..Priority.to.Certain.Applications.for.Public.Facility.and. 

Public.Housing.Assistance.(42.u.S.C..5153) 

(a)		 Priority – In the processing of applications for assistance, priority 

and immediate consideration shall be given by the head of the 

appropriate Federal agency, during such period as the President 

shall prescribe, to applications from public bodies situated in areas 

affected by major disasters under the following Acts: 

(1)		 The United States Housing Act of 1937 for the provision of lowincome housing. 

(2)		 Section 702 of the Housing Act of 1954 for assistance in public 

works planning. 

(3)		 The Community Development Block Grant Program under title I 

of the Housing and Community Development Act of 1974. 

(4)		 Section 306 of the Consolidated Farm and Rural Development 

Act. 

(5)		 The Public Works and Economic Development Act of 1965. 

(6)		 The Appalachian Regional Development Act of 1965. 

(7)		 The Federal Water Pollution Control Act. 

(b)		 Obligation of certain discretionary funds – In the obligation of 

discretionary funds or funds which are not allocated among the 

States or political subdivisions of a State, the Secretary of Housing 

and Urban Development and the Secretary of Commerce shall 

give priority to applications for projects for major disaster areas. 

Sec..311..Insurance.(42.u.S.C..5154) 

(a)		 Applicants for replacement of damaged facilities 

(1)		 Compliance with certain regulations – An applicant for 

assistance under section 5172 of this title (relating to repair, 

restoration, and replacement of damaged facilities), section 

5189 of this title (relating to simplified procedure) or section 

3149(c)(2) of this title) shall comply with regulations prescribed 

by the President to assure that, with respect to any property 

to be replaced, restored, repaired, or constructed with such 

assistance, such types and extent of insurance will be obtained 

and maintained as may be reasonably available, adequate, and 

necessary, to protect against future loss to such property. 

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(2)		 Determination – In making a determination with respect to 

availability, adequacy, and necessity under paragraph (1), the 

President shall not require greater types and extent of insurance 

than are certified to him as reasonable by the appropriate State 

insurance commissioner responsible for regulation of such 

insurance. 

(b)		 Maintenance of insurance – No applicant for assistance under 

section 5172 of this title (relating to repair, restoration, and 

replacement of damaged facilities), section 5189 of this title 

(relating to simplified procedure), or section 3149(c)(2) of this title) 

may receive such assistance for any property or part thereof for 

which the applicant has previously received assistance under 

this Act unless all insurance required pursuant to this section has 

been obtained and maintained with respect to such property. The 

requirements of this subsection may not be waived under section 

5141 of this title. 

(c)		 State acting as self-insurer – A State may elect to act as a 

self-insurer with respect to any or all of the facilities owned by 

the State. Such an election, if declared in writing at the time 

of acceptance of assistance under section 5172 or 5189 of 

this title or section 3149(c)(2) of this title) or subsequently and 

accompanied by a plan for self-insurance which is satisfactory to 

the President, shall be deemed compliance with subsection (a). 

No such self-insurer may receive assistance under section 5172 

or 5189 of this title for any property or part thereof for which it 

has previously received assistance under this Act, to the extent 

that insurance for such property or part thereof would have been 

reasonably available. 

Prohibited.Flood.Disaster.Assistance.(42.u.S.C..5154a) 

(a)		 General prohibition – Notwithstanding any other provision of law, 

no Federal disaster relief assistance made available in a flood 

disaster area may be used to make a payment (including any 

loan assistance payment) to a person for repair, replacement, or 

restoration for damage to any personal, residential, or commercial 

property if that person at any time has received flood disaster 

assistance that was conditional on the person first having obtained 

flood insurance under applicable Federal law and subsequently 

having failed to obtain and maintain flood insurance as required 

under applicable Federal law on such property. 

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(b)		 Transfer of property – 

(1)		 Duty to notify -In the event of the transfer of any property 

described in paragraph (3), the transferor shall, not later than 

the date on which such transfer occurs, notify the transferee in 

writing of the requirements to – 

(A)		 obtain flood insurance in accordance with applicable Federal 

law with respect to such property, if the property is not so 

insured as of the date on which the property is transferred; 

and 

(B)		 maintain flood insurance in accordance with applicable 

Federal law with respect to such property. Such written 

notification shall be contained in documents evidencing the 

transfer of ownership of the property. 

(2)		 Failure to notify – If a transferor described in paragraph (1) fails 

to make a notification in accordance with such paragraph and, 

subsequent to the transfer of the property – 

(A)		 the transferee fails to obtain or maintain flood insurance in 

accordance with applicable Federal law with respect to the 

property, 

(B) the property is damaged by a flood disaster, and 

(C)		Federal disaster relief assistance is provided for the repair, 

replacement, or restoration of the property as a result of 

such damage, the transferor shall be required to reimburse 

the Federal Government in an amount equal to the amount 

of the Federal disaster relief assistance provided with 

respect to the property. 

(3)		 Property described – For purposes of paragraph (1), a property 

is described in this paragraph if it is personal, commercial, or 

residential property for which Federal disaster relief assistance 

made available in a flood disaster area has been provided, 

prior to the date on which the property is transferred, for repair, 

replacement, or restoration of the property, if such assistance 

was conditioned upon obtaining flood insurance in accordance 

with applicable Federal law with respect to such property. 

(c)		 [Omitted] 

(d)		 Definition – For purposes of this section, the term “flood disaster 

area” means an area with respect to which – 

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(1)		 the Secretary of Agriculture finds, or has found, to have been 

substantially affected by a natural disaster in the United States 

pursuant to section 1961(a) of the Consolidated Farm and Rural 

Development Act (7 U.S.C. 1961(a)); or 

(2)		 the President declares, or has declared, the existence of a 

major disaster or emergency pursuant to the Robert T. Stafford 

Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121 

et seq.), as a result of flood conditions existing in or affecting 

that area. 

(e)		 Effective date – This section and the amendments made by this 

section [adding this section and amending 42 U.S.C. 4012a(a)] 

shall apply to disasters declared after September 23, 1994. 

Sec..312..Duplication.of.Benefits.(42.u.S.C..5155) 

(a)		 General prohibition – The President, in consultation with the 

head of each Federal agency administering any program 

providing financial assistance to persons, business concerns, or 

other entities suffering losses as a result of a major disaster or 

emergency, shall assure that no such person, business concern, or 

other entity will receive such assistance with respect to any part of 

such loss as to which he has received financial assistance under 

any other program or from insurance or any other source. 

(b)		 Special rules – 

(1)		 Limitation – This section shall not prohibit the provision of 

Federal assistance to a person who is or may be entitled to 

receive benefits for the same purposes from another source if 

such person has not received such other benefits by the time 

of application for Federal assistance and if such person agrees 

to repay all duplicative assistance to the agency providing the 

Federal assistance. 

(2)		 Procedures – The President shall establish such procedures 

as the President considers necessary to ensure uniformity in 

preventing duplication of benefits. 

(3)		 Effect of partial benefits – Receipt of partial benefits for a major 

disaster or emergency shall not preclude provision of additional 

Federal assistance for any part of a loss or need for which 

benefits have not been provided. 

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(c)		 Recovery of duplicative benefits – A person receiving Federal 

assistance for a major disaster or emergency shall be liable to 

the United States to the extent that such assistance duplicates 

benefits available to the person for the same purpose from another 

source. The agency which provided the duplicative assistance 

shall collect such duplicative assistance from the recipient in 

accordance with chapter 37 of title 31, relating to debt collection, 

when the head of such agency considers it to be in the best 

interest of the Federal Government. 

(d)		 Assistance not income – Federal major disaster and emergency 

assistance provided to individuals and families under this Act, 

and comparable disaster assistance provided by States, local 

governments, and disaster assistance organizations, shall not be 

considered as income or a resource when determining eligibility 

for or benefit levels under federally funded income assistance or 

resource-tested benefit programs. 

Sec..313..Standard.of.Review.(42.u.S.C..5156) 

The President shall establish comprehensive standards which shall 

be used to assess the efficiency and effectiveness of Federal major 

disaster and emergency assistance programs administered under this 

Act. The President shall conduct annual reviews of the activities of 

Federal agencies and State and local governments in major disaster and 

emergency preparedness and in providing major disaster and emergency 

assistance in order to assure maximum coordination and effectiveness of 

such programs and consistency in policies for reimbursement of States 

under this Act. 

Sec..314..Penalties.(42.u.S.C..5157) 

(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. 

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(c)		 Referral to Attorney General – The President shall expeditiously 

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..315..Availability.of.Materials.(42.u.S.C..5158) 

The President is authorized, at the request of the Governor of an affected 

State, to provide for a survey of construction materials needed in the 

area affected by a major disaster on an emergency basis for housing 

repairs, replacement housing, public facilities repairs and replacement, 

farming operations, and business enterprises and to take appropriate 

action to assure the availability and fair distribution of needed materials, 

including, where possible, the allocation of such materials for a period 

of not more than one hundred and eighty days after such major disaster. 

Any allocation program shall be implemented by the President to the 

extent possible, by working with and through those companies which 

traditionally supply construction materials in the affected area. For the 

purposes of this section “construction materials” shall include building 

materials and materials required for repairing housing, replacement 

housing, public facilities repairs and replacement, and for normal farm 

and business operations. 

Sec..316..Protection.of.Environment.(42.u.S.C..5159) 

An action which is taken or assistance which is provided pursuant to 

section 5170a , 5170b, 5172, 5173, or 5192 of this title, including such 

assistance provided pursuant to the procedures provided for in section 

5189 of this title , which has the effect of restoring a facility substantially 

to its condition prior to the disaster or emergency, shall not be deemed 

a major Federal action significantly affecting the quality of the human 

environment within the meaning of the National Environmental Policy Act 

of 1969 (83 Stat. 852) [42 U.S.C. §4321 et seq.]. Nothing in this section 

shall alter or affect the applicability of the National Environmental Policy 

Act of 1969 [42 U.S.C. §4321 et seq.] to other Federal actions taken 

under this Act or under any other provisions of law. 

Sec..317..Recovery.of.Assistance.(42.u.S.C..5160) 

(a)		 Party liable – Any person who intentionally causes a condition for 

which Federal assistance is provided under this Act or under any 

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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 for reasonable costs 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..318..Audits.and.Investigations.(42.u.S.C..5161) 

(a)		 In general – Subject to the provisions of chapter 75 of title 31, 

relating to requirements for single audits, the President shall 

conduct audits and investigations as necessary to assure 

compliance with this Act, and in connection therewith may 

question such persons as may be necessary to carry out such 

audits and investigations. 

(b)		 Access to records – For purposes of audits and investigations 

under this section, the President and Comptroller General may 

inspect any books, documents, papers, and records of any person 

relating to any activity undertaken or funded under this Act. 

(c)		 State and local audits – The President may require audits by State 

and local governments in connection with assistance under this 

Act when necessary to assure compliance with this Act or related 

regulations. 

Sec..319..Advance.of.Non-Federal.Share.(42.u.S.C..5162) 

(a)		 In general – The President may lend or advance to an eligible 

applicant or a State the portion of assistance for which the State 

is responsible under the cost-sharing provisions of this Act in any 

case in which-– 

(1)		 the State is unable to assume its financial responsibility under 

such cost-sharing provisions— 

(A)		 with respect to concurrent, multiple major disasters in a 

jurisdiction, or 

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(B) after incurring extraordinary costs as a result of a particular 

disaster; and 

(2)		 the damages caused by such disasters or disaster are so 

overwhelming and severe that it is not possible for the applicant 

or the State to assume immediately their financial responsibility 

under this Act. 

(b)		 Terms of loans and advances – 

(1)		 In general – Any loan or advance under this section shall be 

repaid to the United States. 

(2)		 Interest – Loans and advances under 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. 

(c)		 Regulations – The President shall issue regulations describing the 

terms and conditions under which any loan or advance authorized 

by this section may be made. 

Sec..320..Limitation.on.use.of.Sliding.Scale.(42.u.S.C..5163) 

No geographic area shall be precluded from receiving assistance under 

this Act solely by virtue of an arithmetic formula or sliding scale based on 

income or population. 

Sec..321..Rules.and.Regulations.(42.u.S.C..5164) 

The President may prescribe such rules and regulations as may be 

necessary and proper to carry out the provisions of this Act, and may 

exercise, either directly or through such Federal agency as the President 

may designate, any power or authority conferred to the President by this 

Act. 

Sec..322..Mitigation.Planning.(42.u.S.C..5165) 

(a)		 Requirement of Mitigation Plan – As a condition of receipt of an 

increased Federal share for hazard mitigation measures under 

subsection (e), a State, local, or tribal government shall develop 

and submit for approval to the President a mitigation plan that 

outlines processes for identifying the natural hazards, risks, and 

vulnerabilities of the area under the jurisdiction of the government. 

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(b)		 Local and Tribal Plans – Each mitigation plan developed by a local 

or tribal government shall – 

(1)		 describe actions to mitigate hazards, risks, and vulnerabilities 

identified under the plan; and 

(2)		 establish a strategy to implement those actions. 

(c)		 State Plans – The State process of development of a mitigation 

plan under this section shall – 

(1)		 identify the natural hazards, risks, and vulnerabilities of areas in 

the State; 

(2)		 support development of local mitigation plans; 

(3)		 provide for technical assistance to local and tribal governments 

for mitigation planning; and 

(4)		 identify and prioritize mitigation actions that the State will 
 

support, as resources become available.
 


(d)		 Funding – 

(1)		 In general – Federal contributions under section 5170c of this 

title may be used to fund the development and updating of 

mitigation plans under this section. 

(2)		 Maximum federal contribution – With respect to any mitigation 

plan, a State, local, or tribal government may use an amount 

of Federal contributions under section 5170c of this title not to 

exceed 7 percent of the amount of such contributions available 

to the government as of a date determined by the government. 

(e)		 Increased Federal Share for Hazard Mitigation Measures – 

(1)		 In general – If, at the time of the declaration of a major disaster, 

a State has in effect an approved mitigation plan under this 

section, the President may increase to 20 percent, with respect 

to the major disaster, the maximum percentage specified in the 

last sentence of section 5170c(a) of this title. 

(2)		 Factors for consideration -In determining whether to increase 

the maximum percentage under paragraph (1), the President 

shall consider whether the State has established – 

(A) eligibility criteria for property acquisition and other types of 

mitigation measures; 

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(B)		requirements for cost effectiveness that are related to the 

eligibility criteria; 

(C) a system of priorities that is related to the eligibility criteria; 

and 

(D)		a process by which an assessment of the effectiveness of 

a mitigation action may be carried out after the mitigation 

action is complete. 

Sec..323..Standards.for.Public.and.Private.Structures.(42.u.S.C.. 

5165a) 

(a)		 In General – As a condition of receipt of a disaster loan or grant 

under this Act – 

(1)		 the recipient shall carry out any repair or construction to be 

financed with the loan or grant in accordance with applicable 

standards of safety, decency, and sanitation and in conformity 

with applicable codes, specifications, and standards; and 

(2)		 the President may require safe land use and construction 

practices, after adequate consultation with appropriate State 

and local government officials. 

(b)		 Evidence of Compliance – A recipient of a disaster loan or grant 

under this Act shall provide such evidence of compliance with this 

section as the President may require by regulation. 

Note: Section 324 becomes effective when FEMA has 

promulgated a management cost rate regulation. Until then 

subsection 406(f) of the Stafford Act is used to establish 

management cost rates. 

Sec..324..Management.Costs.(42.u.S.C..5165b) 

(a)		 Definition of Management Cost – In this section, the term 

“management cost” includes any indirect cost, any administrative 

expense, and any other expense not directly chargeable to a 

specific project under a major disaster, emergency, or disaster 

preparedness or mitigation activity or measure. 

(b)		 Establishment of Management Cost Rates – Notwithstanding 

any other provision of law (including any administrative rule or 

guidance), the President shall by regulation establish management 

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cost rates, for grantees and subgrantees, that shall be used to 

determine contributions under this Act for management costs. 

(c)		 Review – The President shall review the management cost rates 

established under subsection (b) not later than 3 years after the 

date of establishment of the rates and periodically thereafter. 

Sec..325..Public.Notice,.Comment,.and.Consultation.Requirements. 

(42.u.S.C..5165c) 

(a)		 Public Notice and Comment Concerning New or Modified 
 

Policies –



(1)		 In general – The President shall provide for public notice and 

opportunity for comment before adopting any new or modified 

policy that – 

(A)		 governs implementation of the public assistance program 

administered by the Federal Emergency Management 

Agency under this Act; and 

(B)		 could result in a significant reduction of assistance under the 

program. 

(2)		 Application – Any policy adopted under paragraph (1) shall 

apply only to a major disaster or emergency declared on or after 

the date on which the policy is adopted. 

(b)		 Consultation Concerning Interim Policies – 

(1)		 In general – Before adopting any interim policy under the public 

assistance program to address specific conditions that relate 

to a major disaster or emergency that has been declared under 

this Act, the President, to the maximum extent practicable, 

shall solicit the views and recommendations of grantees and 

subgrantees with respect to the major disaster or emergency 

concerning the potential interim policy, if the interim policy is 

likely – 

(A)		 to result in a significant reduction of assistance to applicants 

for the assistance with respect to the major disaster or 

emergency; or 

(B) to change the terms of a written agreement to which the 

Federal Government is a party concerning the declaration of 

the major disaster or emergency. 

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(2)		 No legal right of action – Nothing in this subsection confers a 

legal right of action on any party. 

(c)		 Public Access – The President shall promote public access to 

policies governing the implementation of the public assistance 

program. 

Sec..326..Designation.of.Small.State.and.Rural.Advocate* 

(a)		 In General – The President shall designate in the Federal 
 

Emergency Management Agency a Small State and Rural 
 

Advocate.



(b)		 Responsibilities – The Small State and Rural Advocate shall 

be an advocate for the fair treatment of small States and rural 

communities in the provision of assistance under this Act. 

(c)		 Duties – The Small State and Rural Advocate shall 

(1)		 participate in the disaster declaration process under section 

401 and the emergency declaration process under section 

501, to ensure that the needs of rural communities are being 

addressed; 

(2)		 assist small population States in the preparation of requests for 

major disasters or emergency declarations; and 

(3)		 conduct such other activities as the Director of the Federal 

Emergency Management Agency considers appropriate. 

TITLE.Iv.–.MAjOR.DISASTER.ASSISTANCE.PROGRAMS 

Sec..401..Procedure.for.Declaration.(42.u.S.C..5170) 

All requests for a declaration by the President that a major disaster exists 

shall be made by the Governor of the affected State. Such a request shall 

be based on a finding that the disaster is of such severity and magnitude 

that effective response is beyond the capabilities of the State and the 

affected local governments and that Federal assistance is necessary. As 

part of such request, and as a prerequisite to major disaster assistance 

under this Act, the Governor shall take appropriate response action 

under State law and direct execution of the State’s emergency plan. The 

Governor shall furnish information on the nature and amount of State 

and local resources which have been or will be committed to alleviating 

the results of the disaster, and shall certify that, for the current disaster, 

State and local government obligations and expenditures (of which 

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State commitments must be a significant proportion) will comply with all 

applicable cost-sharing requirements of this Act. Based on the request of 

a Governor under this section, the President may declare under this Act 

that a major disaster or emergency exists. 

Sec..402..General.Federal.Assistance.(42.u.S.C..5170a)* 

In any major disaster, the President may – 

(1)		 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 assistance response and recovery efforts, 

including precautionary evacuations; 

(2)		 coordinate all disaster relief assistance (including voluntary 

assistance) provided by Federal agencies, private organizations, 

and State and local governments, including precautionary 

evacuations and recovery; 

(3)		 provide technical and advisory assistance to affected State and 

local governments for – 

(A) the performance of essential community services; 

(B)		 issuance of warnings of risks and hazards; 

(C) public health and safety information, including dissemination 

of such information; 

(D)		provision of health and safety measures; 

(E)		 management, control, and reduction of immediate threats to 

public health and safety; and 

(F) recovery activities, including disaster impact assessments 

and planning; 

(4)		 assist State and local governments in the distribution of 

medicine, food, and other consumable supplies, and emergency 

assistance; and 

(5)	 provide accelerated Federal assistance and Federal support 

where necessary to save lives, prevent human suffering, or 

mitigate severe damage, which may be provided in the absence 

of a specific request and in which case the President 

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(A) shall, to the fullest extent practicable, promptly notify and 

coordinate with officials in a State in which such assistance 

or support is provided; and 

(B) shall not, in notifying and coordinating with a State under 

subparagraph (A), delay or impede the rapid deployment, 

use, and distribution of critical resources to victims of a 

major disaster. 

Sec..403..Essential.Assistance.(42.u.S.C..5170b)* 

(a)		 In general – Federal agencies may on the direction of the 

President, provide assistance essential to meeting immediate 

threats to life and property resulting from a major disaster, as 

follows: 

(1)		 Federal resources, generally – 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)		 Medicine, durable medical equipment, food, and other 

consumables – Distributing or rendering through State and local 

governments, the American National Red Cross, the Salvation 

Army, the Mennonite Disaster Service, and other relief and 

disaster assistance organizations medicine, durable medical 

equipment, food, and other consumable supplies, and other 

services and assistance to disaster victims. 

(3)		 Work and services to save lives and protect property 

– Performing on public or private lands or waters any work or 

services essential to saving lives and protecting and preserving 

property or public health and safety, including – 

(A)		 debris removal; 

(B)		 search and rescue, emergency medical care, emergency 

mass care, emergency shelter, and provision of food, water, 

medicine, durable medical equipment, and other essential 

needs, including movement of supplies or persons; 

(C)		clearance of roads and construction of temporary bridges 

necessary to the performance of emergency tasks and 

essential community services; 

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(D)		provision of temporary facilities for schools and other 

essential community services; 

(E)		 demolition of unsafe structures which endanger the public; 

(F)		 warning of further risks and hazards; 

(G) dissemination of public information and assistance regarding 

health and safety measures; 

(H)		provision of technical advice to State and local governments 

on disaster management and control; 

(I)		 reduction of immediate threats to life, property, and public 

health and safety; and 

(J)		 provision of rescue, care, shelter, and essential needs – 

(i)		 to individuals with household pets and service animals; 

and 

(ii)		 to such pets and animals. 

(4)		 Contributions – Making contributions to State or local 

governments or owners or operators of private nonprofit 

facilities for the purpose of carrying out the provisions of this 

subsection. 

(b)		 Federal share – The Federal share of assistance under this section 

shall be not less than 75 percent of the eligible cost of such 

assistance. 

(c)		 Utilization of DOD resources – 

(1)		 General rule – During the immediate aftermath of an incident 

which may ultimately qualify for assistance under this title 

or title V of this Act, the Governor of the State in which such 

incident occurred may request the President to direct the 

Secretary of Defense to utilize the resources of the Department 

of Defense for the purpose of performing on public and private 

lands any emergency work which is made necessary by such 

incident and which is essential for the preservation of life and 

property. If the President determines that such work is essential 

for the preservation of life and property, the President shall grant 

such request to the extent the President determines practicable. 

Such emergency work may only be carried out for a period not 

to exceed 10 days. 

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(2)		 Rules applicable to debris removal – Any removal of debris 

and wreckage carried out under this subsection shall be 

subject to section 5173(b) of this title, relating to unconditional 

authorization and indemnification for debris removal. 

(3)		 Expenditures out of disaster relief funds – The cost of any 

assistance provided pursuant to this subsection shall be 

reimbursed out of funds made available to carry out this Act. 

(4)		 Federal share – The Federal share of assistance under this 

subsection shall be not less than 75 percent. 

(5)		 Guidelines – Not later than 180 days after the date of the 

enactment of the Disaster Relief and Emergency Assistance 

Amendments of 1988 [enacted Nov. 23, 1988], the President 

shall issue guidelines for carrying out this subsection. Such 

guidelines shall consider any likely effect assistance under 

this subsection will have on the availability of other forms of 

assistance under this Act. 

(6)		 Definitions – For purposes of this section 

(A) Department of Defense – The term “Department of Defense” 

has the meaning the term “department” has under section 

101 of title 10. 

(B)		Emergency work – The term “emergency work” includes 

clearance and removal of debris and wreckage and 

temporary restoration of essential public facilities and 

services. 

Sec..404..Hazard.Mitigation.(42.u.S.C..5170c)* 

(a)		 In General – The President may contribute up to 75 percent of 

the cost of hazard mitigation measures which the President has 

determined are cost-effective and which substantially reduce 

the risk of future damage, hardship, loss, or suffering in any area 

affected by a major disaster. Such measures shall be identified 

following the evaluation of natural hazards under section 5165 of 

this title and shall be subject to approval by the President. Subject 

to section 5165 of this title , the total of contributions under 

this section for a major disaster shall not exceed 15 percent for 

amounts not more than $2,000,000,000, 10 percent for amounts 

of more than $2,000,000,000 and not more than $10,000,000,000, 

and 7.5 percent on amounts of more than $10,000,000,000 

and not more than $35,333,000,000 of the estimated aggregate 

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amount of grants to be made (less any associated administrative 

costs) under this Act with respect to the major disaster. 

(b)		 Property acquisition and relocation assistance – 

(1)		 General authority – In providing hazard mitigation assistance 

under this section in connection with flooding, the Director 

of the Federal Emergency Management Agency may provide 

property acquisition and relocation assistance for projects that 

meet the requirements of paragraph (2). 

(2)		 Terms and conditions – An acquisition or relocation project shall 

be eligible to receive assistance pursuant to paragraph (1) only 

if – 

(A) the applicant for the assistance is otherwise eligible to 

receive assistance under the hazard mitigation grant 

program established under subsection (a); and 

(B) on or after December 3, 1993, the applicant for the 

assistance enters into an agreement with the Director that 

provides assurances that – 

(i)		 any property acquired, accepted, or from which a 

structure will be removed pursuant to the project will be 

dedicated and maintained in perpetuity for a use that is 

compatible with open space, recreational, or wetlands 

management practices; 

(ii)		 no new structure will be erected on property acquired, 

accepted or from which a structure was removed under 

the acquisition or relocation program other than-– 

(I)		 a public facility that is open on all sides and 

functionally related to a designated open space; 

(II)		 a rest room; or 

(III)		 a structure that the Director approves in writing 

before the commencement of the construction of 

the structure; and 

(iii)		 after receipt of the assistance, with respect to any 

property acquired, accepted or from which a structure 

was removed under the acquisition or relocation 

program-– 

(I)		 no subsequent application for additional disaster 

assistance for any purpose will be made by the 

recipient to any Federal entity; and 

(II)		 no assistance referred to in subclause (I) will be 

provided to the applicant by any Federal source. 

Appendix A: Stafford Act P.L. 93-288 A-
(3)		 Statutory construction – Nothing in this subsection is intended 

to alter or otherwise affect an agreement for an acquisition or 

relocation project carried out pursuant to this section that was 

in effect on the day before December 3, 1993. 

(c)		 Program Administration by States – 

(1)		 In general – A State desiring to administer the hazard mitigation 

grant program established by this section with respect to 

hazard mitigation assistance in the State may submit to the 

President an application for the delegation of the authority to 

administer the program. 

(2)		 Criteria – The President, in consultation and coordination with 

States and local governments, shall establish criteria for the 

approval of applications submitted under paragraph (1). The 

criteria shall include, at a minimum – 

(A) the demonstrated ability of the State to manage the grant 

program under this section; 

(B)		there being in effect an approved mitigation plan under 

section 5165 of this title; and 

(C) a demonstrated commitment to mitigation activities. 

(3)		 Approval – The President shall approve an application 

submitted under paragraph (1) that meets the criteria 

established under paragraph (2). 

(4)		 Withdrawal of approval – If, after approving an application of a 

State submitted under paragraph (1), the President determines 

that the State is not administering the hazard mitigation grant 

program established by this section in a manner satisfactory to 

the President, the President shall withdraw the approval. 

(5)		 Audits – The President shall provide for periodic audits of the 

hazard mitigation grant programs administered by States under 

this subsection. 

Sec..405..Federal.Facilities.(42.u.S.C..5171) 

(a)		 Repair, reconstruction, restoration or replacement of United States 

facilities – The President may authorize any Federal agency to 

repair, reconstruct, restore, or replace any facility owned by the 

United States and under the jurisdiction of such agency which is 

damaged or destroyed by any major disaster if he determines that 

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such repair, reconstruction, restoration, or replacement is of such 

importance and urgency that it cannot reasonably be deferred 

pending the enactment of specific authorizing legislation or the 

making of an appropriation for such purposes, or the obtaining of 

congressional committee approval. 

(b)		 Availability of funds appropriated to agency for repair, 

reconstruction, restoration, or replacement of agency facilities 

– In order to carry out the provisions of this section, such repair, 

reconstruction, restoration, or replacement may be begun 

notwithstanding a lack or an insufficiency of funds appropriated for 

such purpose, where such lack or insufficiency can be remedied 

by the transfer, in accordance with law, of funds appropriated to 

that agency for another purpose. 

(c)		 Steps for mitigation of hazards – In implementing this section, 

Federal agencies shall evaluate the natural hazards to which these 

facilities are exposed and shall take appropriate action to mitigate 

such hazards, including safe land-use and construction practices, 

in accordance with standards prescribed by the President. 

Sec..406..Repair,.Restoration,.and.Replacement.of.Damaged. 

Facilities.(42.u.S.C..5172)* 

(a)		 Contributions – 

(1)		 In general -The President may make contributions – 

(A) to a State or local government for the repair, restoration, 

reconstruction, or replacement of a public facility damaged 

or destroyed by a major disaster and for associated 

expenses incurred by the government; and 

(B) subject to paragraph (3), to a person that owns or operates 

a private nonprofit facility damaged or destroyed by a 

major disaster for the repair, restoration, reconstruction, 

or replacement of the facility and for associated expenses 

incurred by the person. 

(2)		 Associated expenses – For the purposes of this section, 

associated expenses shall include – 

(A) the costs of mobilizing and employing the National Guard for 

performance of eligible work; 

Appendix A: Stafford Act P.L. 93-288 A-
(B) the costs of using prison labor to perform eligible work, 

including wages actually paid, transportation to a worksite, 

and extraordinary costs of guards, food, and lodging; and 

(C) base and overtime wages for the employees and extra 

hires of a State, local government, or person described in 

paragraph (1) that perform eligible work, plus fringe benefits 

on such wages to the extent that such benefits were being 

paid before the major disaster. 

(3)		 Conditions for assistance to private nonprofit facilities – 

(A) In general – The President may make contributions to a 

private nonprofit facility under paragraph (1)(B) only if – 

(i)		 the facility provides critical services (as defined by the 

President) in the event of a major disaster; or 

(ii)		 the owner or operator of the facility – 

(I)		 has applied for a disaster loan under section 7(b) of 

the Small Business Act (15 U.S.C. 636(b)); and 

(II)		 (aa) has been determined to be ineligible for such a 

loan; or 

(bb) has obtained such a loan in the maximum 

amount for which the Small Business Administration 

determines the facility is eligible. 

(B) Definition of critical services – In this paragraph, the term 

“critical services” includes power, water (including water 

provided by an irrigation organization or facility), sewer, 

wastewater treatment, communications, education, and 

emergency medical care. 

(4)		 Notification to Congress – Before making any contribution 

under this section in an amount greater than $20,000,000, the 

President shall notify 

(A)		 the Committee on Environment and Public Works of the 

Senate; 

(B)		the Committee on Transportation and Infrastructure of the 

House of Representatives; 

(C) the Committee on Appropriations of the Senate; and 

(D) the Committee on Appropriations of the House of 

Representatives. 

(b)		 Federal Share – 

A- Appendix A: Stafford Act P.L. 93-288 
(1)		 Minimum federal share – Except as provided in paragraph (2), 

the Federal share of assistance under this section shall be not 

less than 75 percent of the eligible cost of repair, restoration, 

reconstruction, or replacement carried out under this section. 

Note: Paragraph (2) takes effect after FEMA has promulgated an 

implementing regulation. 

(2)		 Reduced federal share – The President shall promulgate 

regulations to reduce the Federal share of assistance under 

this section to not less than 25 percent in the case of the repair, 

restoration, reconstruction, or replacement of any eligible public 

facility or private nonprofit facility following an event associated 

with a major disaster – 

(A) that has been damaged, on more than one occasion within 

the preceding 10-year period, by the same type of event; 

and 

(B) the owner of which has failed to implement appropriate 

mitigation measures to address the hazard that caused the 

damage to the facility. 

(c)		 Large In-Lieu Contributions – 

(1)		 For public facilities – 

(A) In general – In any case in which a State or local government 

determines that the public welfare would not best be served 

by repairing, restoring, reconstructing, or replacing any 

public facility owned or controlled by the State or local 

government, the State or local government may elect to 

receive, in lieu of a contribution under subsection (a)(1)(A), a 

contribution in an amount equal to 90 percent of the Federal 

share of the Federal estimate of the cost of repairing, 

restoring, reconstructing, or replacing the facility and of 

management expenses. 

(B)		 Use of funds – Funds contributed to a State or local 

government under this paragraph may be used – 

(i)		 to repair, restore, or expand other selected public 

facilities; 

(ii)		 to construct new facilities; or 

(iii)		 to fund hazard mitigation measures that the State or 

local government determines to be necessary to meet 

Appendix A: Stafford Act P.L. 93-288 A-
a need for governmental services and functions in the 

area affected by the major disaster. 

(C)		Limitations – Funds made available to a State or local 

government under this paragraph may not be used for – 

(i)		 any public facility located in a regulatory floodway (as 

defined in section 59.1 of title 44, Code of Federal 

Regulations (or a successor regulation)); or 

(ii)		 any uninsured public facility located in a special flood 

hazard area identified by the Director of the Federal 

Emergency Management Agency under the National 

Flood Insurance Act of 1968 (42 U.S.C. 4001 et seq.). 

(2)		 For private nonprofit facilities – 

(A) In general – In any case in which a person that owns or 

operates a private nonprofit facility determines that the 

public welfare would not best be served by repairing, 

restoring, reconstructing, or replacing the facility, the 

person may elect to receive, in lieu of a contribution under 

subsection (a)(1)(B), a contribution in an amount equal to 75 

percent of the Federal share of the Federal estimate of the 

cost of repairing, restoring, reconstructing, or replacing the 

facility and of management expenses. 

(B) Use of funds – Funds contributed to a person under this 

paragraph may be used – 

(i)		 to repair, restore, or expand other selected private 

nonprofit facilities owned or operated by the person; 

(ii)		 to construct new private nonprofit facilities to be owned 

or operated by the person; or 

(iii)		 to fund hazard mitigation measures that the person 

determines to be necessary to meet a need for the 

person’s services and functions in the area affected by 

the major disaster. 

(C) Limitations – Funds made available to a person under this 

paragraph may not be used for-– 

(i)		 any private nonprofit facility located in a regulatory 

floodway (as defined in section 59.1 of title 44, Code of 

Federal Regulations (or a successor regulation)); or 

(ii)		 any uninsured private nonprofit facility located in a 

special flood hazard area identified by the Director of 

the Federal Emergency Management Agency under the 

A- Appendix A: Stafford Act P.L. 93-288 
National Flood Insurance Act of 1968 (42 U.S.C. 4001 et 

seq.). 

(d)		 Flood insurance – 

(1)		 Reduction of Federal assistance – If a public facility or private 

nonprofit facility located in a special flood hazard area identified 

for more than 1 year by the Director pursuant to the National 

Flood Insurance Act of 1968 (42 U.S.C. 4001 et seq.) is 

damaged or destroyed, after the 180th day following November 

23, 1988, by flooding in a major disaster and such facility is not 

covered on the date of such flooding by flood insurance, the 

Federal assistance which would otherwise be available under 

this section with respect to repair, restoration, reconstruction, 

and replacement of such facility and associated expenses shall 

be reduced in accordance with paragraph (2). 

(2)		 Amount of reduction – The amount of a reduction in Federal 

assistance under this section with respect to a facility shall be 

the lesser of – 

(A) the value of such facility on the date of the flood damage or 

destruction, or 

(B) the maximum amount of insurance proceeds which would 

have been payable with respect to such facility if such 

facility had been covered by flood insurance under the 

National Flood Insurance Act of 1968 on such date. 

(3)		 Exception – Paragraphs (1) and (2) shall not apply to a private 

nonprofit facility which is not covered by flood insurance solely 

because of the local government’s failure to participate in the 

flood insurance program established by the National Flood 

Insurance Act. 

(4)		 Dissemination of information – The President shall disseminate 

information regarding the reduction in Federal assistance 

provided for by this subsection to State and local governments 

and the owners and operators of private nonprofit facilities who 

may be affected by such a reduction. 

Note: This version of subsection (e) remains in effect until the 

cost estimation procedures established under paragraph (3) of 

the revised version of subsection 406(e) – see next subsection 

– take effect. 

Appendix A: Stafford Act P.L. 93-288 A-
(e)		 Net Eligible Cost – 

(1)		 General Rule – For purposes of this section, the cost of 

repairing, restoring, reconstructing, or replacing a public facility 

or private nonprofit facility on the basis of the design of such 

facility as it existed immediately prior to the major disaster and 

in conformity with current applicable codes, specifications, 

and standards (including floodplain management and hazard 

mitigation criteria required by the President or by the Coastal 

Barrier Resources Act (16 U.S.C. 3501 et seq.)) shall, at a 

minimum, be treated as the net eligible cost of such repair, 

restoration, reconstruction, or replacement. 

(2)		 Special Rule – In any case in which the facility being repaired, 

restored, reconstructed, or replaced, under this section was 

under construction on the dated of the major disaster, the cost 

of repairing, restoring, reconstruction, or replacing such facility 

shall include, for purposes of this section, only those costs 

which, under the contract for such construction, are the owner’s 

responsibility and not the contractor’s responsibility. 

Note: This version of subsection 406(e)(1) and (2) becomes 

effective when the procedures established by paragraph (3) of 

this subsection take effect. Subsection 406(e)(4) is currently in 

effect. 

( e ) Eligible Cost – 

(1)		 Determination – 

(A) In general – For the purposes of this section, the President 

shall estimate the eligible cost of repairing, restoring, 

reconstructing, or replacing a public facility or private 

nonprofit facility-– 

(i)		 on the basis of the design of the facility as the facility 

existed immediately before the major disaster; and 

(ii)		 in conformity with codes, specifications, and standards 

(including floodplain management and hazard mitigation 

criteria required by the President or under the Coastal 

Barrier Resources Act (16 U.S.C. 3501 et seq.)) 

applicable at the time at which the disaster occurred. 

(B) Cost estimation procedures – 

(i)		 In general – Subject to paragraph (2), the President shall 

use the cost estimation procedures established under 

A- Appendix A: Stafford Act P.L. 93-288 
paragraph (3) to determine the eligible cost under this 

subsection. 

(ii)		 Applicability – The procedures specified in this 

paragraph and paragraph (2) shall apply only to projects 

the eligible cost of which is equal to or greater than the 

amount specified in section 5189 of this title. 

(2)		 Modification of eligible cost – 

(A) Actual cost greater than ceiling percentage of estimated 

cost – In any case in which the actual cost of repairing, 

restoring, reconstructing, or replacing a facility under this 

section is greater than the ceiling percentage established 

under paragraph (3) of the cost estimated under paragraph 

(1), the President may determine that the eligible cost 

includes a portion of the actual cost of the repair, restoration, 

reconstruction, or replacement that exceeds the cost 

estimated under paragraph (1). 

(B)		Actual cost less than estimated cost – 

(i)		 Greater than or equal to floor percentage of estimated 

cost – In any case in which the actual cost of repairing, 

restoring, reconstructing, or replacing a facility under 

this section is less than 100 percent of the cost 

estimated under paragraph (1), but is greater than 

or equal to the floor percentage established under 

paragraph (3) of the cost estimated under paragraph (1), 

the State or local government or person receiving funds 

under this section shall use the excess funds to carry 

out cost-effective activities that reduce the risk of future 

damage, hardship, or suffering from a major disaster. 

(ii)		 Less than floor percentage of estimated cost – In any 

case in which the actual cost of repairing, restoring, 

reconstructing, or replacing a facility under this section 

is less than the floor percentage established under 

paragraph (3) of the cost estimated under paragraph 

(1), the State or local government or person receiving 

assistance under this section shall reimburse the 

President in the amount of the difference. 

(C)		No effect on appeals process – Nothing in this paragraph 

affects any right of appeal under section 5189a of this title. 

(3)		 Expert panel – 

Appendix A: Stafford Act P.L. 93-288 A-
(A)		 Establishment – Not later than 18 months after October 

30, 2000, the President, acting through the Director of the 

Federal Emergency Management Agency, shall establish an 

expert panel, which shall include representatives from the 

construction industry and State and local government. 

(B) Duties – The expert panel shall develop recommendations 

concerning 

(i)		 procedures for estimating the cost of repairing, 

restoring, reconstructing, or replacing a facility 

consistent with industry practices; and 

(ii)		 the ceiling and floor percentages referred to in 

paragraph (2). 

(C) Regulations – Taking into account the recommendations of 

the expert panel under subparagraph (B), the President shall 

promulgate regulations that establish 

(i)		 cost estimation procedures described in subparagraph 

(B)(i); and 

(ii)		 the ceiling and floor percentages referred to in 

paragraph (2). 

(D) Review by President – Not later than 2 years after the date 

of promulgation of regulations under subparagraph (C) and 

periodically thereafter, the President shall review the cost 

estimation procedures and the ceiling and floor percentages 

established under this paragraph. 

(E)		 Report to Congress – Not later than 1 year after the date 

of promulgation of regulations under subparagraph (C), 3 

years after that date, and at the end of each 2-year period 

thereafter, the expert panel shall submit to Congress a report 

on the appropriateness of the cost estimation procedures. 

(4)		 Special rule – In any case in which the facility being repaired, 

restored, reconstructed, or replaced under this section was 

under construction on the date of the major disaster, the cost 

of repairing, restoring, reconstructing, or replacing the facility 

shall include, for the purposes of this section, only those costs 

that, under the contract for the construction, are the owner’s 

responsibility and not the contractor’s responsibility. 

Note: Subsection 406(f) will be repealed when the regulation to 
 

implement section 324 has been promulgated. 
 

A- Appendix A: Stafford Act P.L. 93-288 
(f)		 Associated Expenses – For purposes of this section, associated 

expenses include the following – 

(1)		 Necessary costs – Necessary costs of requesting, obtaining, 

and administering Federal assistance based on a percentage of 

assistance provided as follows: 

(A) For an applicant whose net eligible costs equal $100,000, 3 

percent of such net eligible costs. 

(B) For an applicant whose net eligible cost equal $100,000 or 

more but less than $1,000,000, $3,000 plus 2 percent of 

such net eligible costs in excess of $100,000. 

(C) For an applicant whose net eligible costs equal $1,000,000 

or more but less than $5,000,000, $21,000 plus 1 percent of 

such net eligible costs in excess or $1,000,000. 

(D) For an applicant whose net eligible costs equal $5,000,000 

or more, $61,000 plus 1/2 percent of such eligible costs in 

excess of $5,000,000. 

(2)		 Extraordinary Costs – Extraordinary costs incurred by a State 

for preparation of damage survey reports, final inspection 

reports, project applications, final audits, and related field 

inspections by State employees, including overtime pay and per 

diem and travel expense of such employees, but not including 

pay for regular time of such employees, based on the total 

amount of assistance provided under section 403, 404, 406, 

407, 502, and 503 in such State in connection with the major 

disaster as follows. 

(A) If such total amount is less than $100,000, 3 percent of such 

total amount. 

(B) If such total amount is $100,000 or more but less than 

$1,000,000, $3,000 plus 2 percent of such total amount in 

excess of $100,000. 

(C) If such total amount is $1,000,000 or more but less than 

$5,000,000, $21,000 plus 1 percent of such total amount in 

excess of $1,000,000. 

(D) If such total amount is $5,000,000 or more, $61,000 plus 1/2 

per cent of such total amount in excess of $5,000,000. 

Appendix A: Stafford Act P.L. 93-288 A-
(3)		 Costs of National Guard – The costs of mobilizing and 

employing the National Guard for performance of eligible work. 

(4)		 Costs of Prison Labor – The costs of using prison labor 

to perform eligible work, including wages actually paid, 

transportation to a worksite, and extraordinary costs of guards, 

food, and lodging. 

(5)		 Other Labor Costs – Base and overtime wages for an 

applicant’s employees and extra hires performing eligible work 

plus fringe benefits on such wages to the extent that such 

benefits were being paid before the disaster. 

Sec..407..Debris.Removal.(42.u.S.C..5173)* 

(a)		 Presidential Authority – The President, whenever he determines it 

to be in the public interest, is authorized – 

(1)		 through the use of Federal departments, agencies, and 

instrumentalities, to clear debris and wreckage resulting from 

a major disaster from publicly and privately owned lands and 

waters; and 

(2)		 to make grants to any State or local government or owner 

or operator of a private non-profit facility for the purpose of 

removing debris or wreckage resulting from a major disaster 

from publicly or privately owned lands and waters. 

(b)		 Authorization by State or local government; indemnification 

agreement – No authority under this section shall be exercised 

unless the affected State or local government shall first arrange an 

unconditional authorization for removal of such debris or wreckage 

from public and private property, and, in the case of removal 

of debris or wreckage from private property, shall first agree to 

indemnify the Federal Government against any claim arising from 

such removal. 

(c)		 Rules relating to large lots – The President shall issue rules which 

provide for recognition of differences existing among urban, 

suburban, and rural lands in implementation of this section so as 

to facilitate adequate removal of debris and wreckage from large 

lots. 

(d)		 Federal share – The Federal share of assistance under this section 

shall be not less than 75 percent of the eligible cost of debris and 

wreckage removal carried out under this section. 

A-0 Appendix A: Stafford Act P.L. 93-288 
(e)		 Expedited Payments – 

(1)		 Grant Assistance – In making a grant under subsection (a)(2), 

the President shall provide not less than 50 percent of the 

President’s initial estimate of the Federal share of assistance as 

an initial payment in accordance with paragraph (2). 

(2)		 Date of Payment – Not later than 60 days after the date of the 

estimate described in paragraph (1) and not later than 90 days 

after the date on which the State or local government or owner 

or operator of a private nonprofit facility applies for assistance 

under this section, an initial payment described in paragraph (1) 

shall be paid. 

Sec..408..Federal.Assistance.to.Individuals.and.Households.(42. 

u.S.C..5174)* 

(a)		 In General – 

(1)		 Provision of assistance – In accordance with this section, the 

President, in consultation with the Governor of a State, may 

provide financial assistance, and, if necessary, direct services, 

to individuals and households in the State who, as a direct 

result of a major disaster, have necessary expenses and serious 

needs in cases in which the individuals and households are 

unable to meet such expenses or needs through other means. 

(2)		 Relationship to other assistance – Under paragraph (1), an 

individual or household shall not be denied assistance under 

paragraph (1), (3), or (4) of subsection (c) solely on the basis 

that the individual or household has not applied for or received 

any loan or other financial assistance from the Small Business 

Administration or any other Federal agency. 

(b)		 Housing Assistance – 

(1)		 Eligibility – The President may provide financial or other 

assistance under this section to individuals and households to 

respond to the disaster-related housing needs of individuals 

and households who are displaced from their predisaster 

primary residences or whose predisaster primary residences 

are rendered uninhabitable, or with respect to individuals with 

disabilities, rendered inaccessible or uninhabitable, as a result 

of damage caused by a major disaster. 

(2)		 Determination of appropriate types of assistance – 

Appendix A: Stafford Act P.L. 93-288 A-
(A) In general – The President shall determine appropriate types 

of housing assistance to be provided under this section to 

individuals and households described in subsection (a)(1) 

based on considerations of cost effectiveness, convenience 

to the individuals and households, and such other factors as 

the President may consider appropriate. 

(B) Multiple types of assistance – One or more types of housing 

assistance may be made available under this section, based 

on the suitability and availability of the types of assistance, 

to meet the needs of individuals and households in the 

particular disaster situation. 

(c)		 Types of Housing Assistance – 

(1)		 Temporary housing – 

(A)		 Financial assistance – 

(i)		 In general – The President may provide financial 

assistance to individuals or households to rent alternate 

housing accommodations, existing rental units, 

manufactured housing, recreational vehicles, or other 

readily fabricated dwellings. Such assistance may 

include the payment of the cost of utilities, excluding 

telephone service. 

(ii)		 Amount – The amount of assistance under clause 

(i) shall be based on the fair market rent for the 

accommodation provided plus the cost of any 

transportation, utility hookups, security deposits, or unit 

installation not provided directly by the President. 

(B)		 Direct assistance – 

(i)		 In general – The President may provide temporary 

housing units, acquired by purchase or lease, directly 

to individuals or households who, because of a lack of 

available housing resources, would be unable to make 

use of the assistance provided under subparagraph (A). 

(ii)		 Period of assistance – The President may not provide 

direct assistance under clause (i) with respect to a major 

disaster after the end of the 18-month period beginning 

on the date of the declaration of the major disaster by 

the President, except that the President may extend 

that period if the President determines that due to 

extraordinary circumstances an extension would be in 

the public interest. 

A- Appendix A: Stafford Act P.L. 93-288 
(iii)		 Collection of rental charges – After the end of the 18­

month period referred to in clause (ii), the President may 

charge fair market rent for each temporary housing unit 

provided. 

(2)		 Repairs – 

(A) In general – The President may provide financial assistance 

for – 

(i)		 the repair of owner-occupied private residences, 

utilities, and residential infrastructure (such as a private 

access route) damaged by a major disaster to a safe 

and sanitary living or functioning condition; and 

(ii)		 eligible hazard mitigation measures that reduce the 

likelihood of future damage to such residences, utilities, 

or infrastructure. 

(B) Relationship to other assistance – A recipient of assistance 

provided under this paragraph shall not be required to show 

that the assistance can be met through other means, except 

insurance proceeds. 

(3)		 Replacement – 

(A) In general – The President may provide financial assistance 

for the replacement of owner-occupied private residences 

damaged by a major disaster. 

(B) Applicability of flood insurance requirement – With respect 

to assistance provided under this paragraph, the President 

may not waive any provision of Federal law requiring the 

purchase of flood insurance as a condition of the receipt of 

Federal disaster assistance. 

(4)		 Permanent or semi-permanent housing construction – The 

President may provide financial assistance or direct assistance 

to individuals or households to construct permanent or semipermanent housing in insular areas outside the continental 

United States and in other locations in cases in which 

(A)		 no alternative housing resources are available; and 

(B) the types of temporary housing assistance described 

in paragraph (1) are unavailable, infeasible, or not costeffective. 

(d)		 Terms and Conditions Relating to Housing Assistance – 

Appendix A: Stafford Act P.L. 93-288 A-
(1)		 Sites – 

(A) In general – Any readily fabricated dwelling provided under 

this section shall, whenever practicable, be located on a site 

that – 

(i)		 is complete with utilities; 

(ii)		 meets the physical accessibility requirements for 

individuals with disabilities; and 

(iii)	 is provided by the State or local government, by 

the owner of the site, or by the occupant who was 

displaced by the major disaster. 

(B) Sites provided by the President – A readily fabricated 

dwelling may be located on a site provided by the President 

if the President determines that such a site would be more 

economical or accessible. 

(2)		 Disposal of units – 

(A) Sale to occupants – 

(i)		 In general – Notwithstanding any other provision of 

law, a temporary housing unit purchased under this 

section by the President for the purpose of housing 

disaster victims may be sold directly to the individual or 

household who is occupying the unit if the individual or 

household lacks permanent housing. 

(ii)		 Sale price – A sale of a temporary housing unit under 

clause (i) shall be at a price that is fair and equitable. 

(iii)		 Deposit of proceeds – Notwithstanding any other 

provision of law, the proceeds of a sale under clause 

(i) shall be deposited in the appropriate Disaster Relief 

Fund account. 

(iv)		 Hazard and flood insurance – A sale of a temporary 

housing unit under clause (i) shall be made on the 

condition that the individual or household purchasing 

the housing unit agrees to obtain and maintain hazard 

and flood insurance on the housing unit. 

(v)		 Use of GSA services – The President may use the 

services of the General Services Administration to 

accomplish a sale under clause (i). 

(B) Other methods of disposal -If not disposed of under 

subparagraph (A), a temporary housing unit purchased 

under this section by the President for the purpose of 

housing disaster victims – 

A- Appendix A: Stafford Act P.L. 93-288 
(i)		 may be sold to any person; or 

(ii)		 may be sold, transferred, donated, or otherwise made 

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 if, as a condition of the sale, 

transfer, or donation, the State, other governmental 

agency, or voluntary organization agrees – 

(a)		 to comply with the nondiscrimination provisions of 

section 5151 of this title; and 

(b)		 to obtain and maintain hazard and flood insurance 

on the housing unit. 

(e)		 Financial Assistance To Address Other Needs – 

(1)		 Medical, dental, and funeral expenses – The President, in 

consultation with the Governor of a State, may provide financial 

assistance under this section to an individual or household in 

the State who is adversely affected by a major disaster to meet 

disaster-related medical, dental, and funeral expenses. 

(2)		 Personal property, transportation, and other expenses – The 

President, in consultation with the Governor of a State, may 

provide financial assistance under this section to an individual 

or household described in paragraph (1) to address personal 

property, transportation, and other necessary expenses or 

serious needs resulting from the major disaster. 

(f)		 State Role – 

(1)		 Financial assistance to address other needs – 

(A) Grant to state – Subject to subsection (g), a Governor may 

request a grant from the President to provide financial 

assistance to individuals and households in the State under 

subsection (e). 

(B)		Administrative costs – A State that receives a grant under 

subparagraph (A) may expend not more than 5 percent 

of the amount of the grant for the administrative costs of 

providing financial assistance to individuals and households 

in the State under subsection (e). 

(2)		 Access to records – In providing assistance to individuals and 

households under this section, the President shall provide 

for the substantial and ongoing involvement of the States in 

Appendix A: Stafford Act P.L. 93-288 A-
which the individuals and households are located, including 

by providing to the States access to the electronic records of 

individuals and households receiving assistance under this 

section in order for the States to make available any additional 

State and local assistance to the individuals and households. 

(g)		 Cost Sharing – 

(1)		 Federal share – Except as provided in paragraph (2), the Federal 

share of the costs eligible to be paid using assistance provided 

under this section shall be 100 percent. 

(2)		 Financial assistance to address other needs – In the case of 

financial assistance provided under subsection (e) – 

(A)		 the Federal share shall be 75 percent; and 

(B)		the non-Federal share shall be paid from funds made 

available by the State. 

(h)		 Maximum Amount of Assistance – 

(1)		 In general – No individual or household shall receive financial 

assistance greater than $25,000 under this section with respect 

to a single major disaster. 

(2)		 Adjustment of limit – The limit established under paragraph (1) 

shall be adjusted annually to reflect changes in the Consumer 

Price Index for All Urban Consumers published by the 

Department of Labor. 

(i)		 Verification Measures – In carrying out this section, 

the President shall develop a system, including an 

electronic database, that shall allow the President, or 

the designee of the President, to 

(1)		 verify the identity and address of recipients of assistance under 

this section to provide reasonable assurance that payments are 

made only to an individual or household that is eligible for such 

assistance; 

(2)		 minimize the risk of making duplicative payments or payments 

for fraudulent claims under this section; 

(3)		 collect any duplicative payment on a claim under this section, 

or reduce the amount of subsequent payments to offset the 

amount of any such duplicate payment; 

A- Appendix A: Stafford Act P.L. 93-288 
(4)		 provide instructions to recipients of assistance under this 

section regarding the proper use of any such assistance, 

regardless of how such assistance is distributed; and 

(5)		 conduct an expedited and simplified review and appeal process 

for an individual or household whose application for assistance 

under this section is denied. 

(j)		 Rules and Regulations – The President shall prescribe rules and 

regulations to carry out this section, including criteria, standards, 

and procedures for determining eligibility for assistance. 

Sec..410..unemployment.Assistance.(42.u.S.C..5177) 

(a)		 Benefit assistance – The President is authorized to provide to 

any individual unemployed as a result of a major disaster such 

benefit assistance as he deems appropriate while such individual 

is unemployed for the weeks of such unemployment with respect 

to which the individual is not entitled to any other unemployment 

compensation (as that term is defined in section 85(b) of the 

Internal Revenue Code of 1986) or a waiting period credit. Such 

assistance as the President shall provide shall be available to an 

individual as long as the individual’s unemployment caused by 

the major disaster continues or until the individual is reemployed 

in a suitable position, but no longer than 26 weeks after the major 

disaster is declared. Such assistance for a week of unemployment 

shall not exceed the maximum weekly amount authorized under 

the unemployment compensation law of the State in which the 

disaster occurred. The President is directed to provide such 

assistance through agreements with States which, in his judgment, 

have an adequate system for administering such assistance 

through existing State agencies. 

(b)		 Reemployment assistance 

(1)		 State assistance – A State shall provide, without reimbursement 

from any funds provided under this Act, reemployment 

assistance services under any other law administered by the 

State to individuals receiving benefits under this section. 

(2)		 Federal assistance – The President may provide reemployment 

assistance services under other laws to individuals who are 

unemployed as a result of a major disaster and who reside in a 

State which does not provide such services. 

Appendix A: Stafford Act P.L. 93-288 A-
Sec..412..Food.Coupons.and.Distribution.(42.u.S.C..5179) 

(a)		 Persons eligible; terms and conditions – Whenever the President 

determines that, as a result of a major disaster, low-income 

households are unable to purchase adequate amounts of 

nutritious food, he is authorized, under such terms and conditions 

as he may prescribe, to distribute through the Secretary of 

Agriculture or other appropriate agencies coupon allotments to 

such households pursuant to the provisions of the Food Stamp 

Act of 1964 (P.L. 91-671; 84 Stat. 2048), 7 U.S.C. 2011 et seq., 

and to make surplus commodities available pursuant to the 

provisions of this Act. 

(b)		 Duration of assistance; factors considered – The President, 

through the Secretary of Agriculture or other appropriate agencies, 

is authorized to continue to make such coupon allotments and 

surplus commodities available to such households for so long as 

he determines necessary, taking into consideration such factors 

as he deems appropriate, including the consequences of the 

major disaster on the earning power of the households, to which 

assistance is made available under this section. 

(c)		 Food Stamp Act provisions unaffected – Nothing in this section 

shall be construed as amending or otherwise changing the 

provisions of the Food Stamp Act of 1964, 7 U.S.C. 2011 et seq., 

except as they relate to the availability of food stamps in an area 

affected by a major disaster. 

Sec..413..Food.Commodities.(42.u.S.C..5180) 

(a)		 Emergency mass feeding – The President is authorized and 

directed to 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)		 Funds for purchase of food commodities – The Secretary of 

Agriculture shall utilize funds appropriated under section 612c 

of title 7, to purchase food commodities necessary to provide 

adequate supplies for use in any area of the United States in the 

event of a major disaster or emergency in such area. 

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Sec..414..Relocation.Assistance.(42.u.S.C..5181) 

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, 

P.L. 91-646, 42 U.S.C. 4601 et seq., 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. 

Sec..415..Legal.Services.(42.u.S.C..5182) 

Whenever the President determines that low-income individuals are 

unable to secure legal services adequate to meet their needs as a 

consequence of a major disaster, consistent with the goals of the 

programs authorized by this Act, the President shall assure that such 

programs are conducted with the advice and assistance of appropriate 

Federal agencies and State and local bar associations. 

Sec..416..Crisis.Counseling.Assistance.and.Training.(42.u.S.C.. 

5183) 

The President is authorized to provide professional counseling services, 

including financial assistance to State or local agencies or private mental 

health organizations to provide such services or training of disaster 

workers, to victims of major disasters in order to relieve mental health 

problems caused or aggravated by such major disaster or its aftermath. 

Sec..417..Community.Disaster.Loans.(42.u.S.C..5184)* 

(a)		 In General – The President is authorized to make loans to any local 

government which may suffer a substantial loss of tax and other 

revenues as a result of a major disaster, and has demonstrated a 

need for financial assistance in order to perform its governmental 

functions. 

(b)		 Amount – The amount of any such loan shall be based on need, 

shall not exceed 

(1)	 25 percent of the annual operating budget of that local 

government for the fiscal year in which the major disaster 

occurs, and shall not exceed $5,000,000; or 

(2)		 if the loss of tax and other revenues of the local government 

as a result of the major disaster is at least 75 percent of the 

annual operating budget of that local government for the fiscal 

year in which the major disaster occurs, 50 percent of the 

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annual operating budget of that local government for the fiscal 

year in which the major disaster occurs, and shall not exceed 

$5,000,000. 

(c)		 Repayment – 

(1)		 Cancellation – Repayment of all or any part of such loan to the 

extent that revenues of the local government during the three 

full fiscal year period following the major disaster are insufficient 

to meet the operating budget of the local government, including 

additional disaster-related expenses of a municipal operation 

character shall be cancelled. 

(2)		 Condition on continuing eligibility – A local government shall not 

be eligible for further assistance under this section during any 

period in which the local government is in arrears with respect 

to a required repayment of a loan under this section. 

(d)		 Effect on Other Assistance – Any loans made under this section 

shall not reduce or otherwise affect any grants or other assistance 

under this Act. 

Sec..418..Emergency.Communications.(42.u.S.C..5185) 

The President is authorized during, or in anticipation of an emergency 

or major disaster to establish temporary communications systems and 

to make such communications available to State and local government 

officials and other persons as he deems appropriate. 

Sec..419..Emergency.Public.Transportation.(42.u.S.C..5186) 

The President is authorized to provide temporary public transportation 

service in an area affected by a major disaster to meet emergency needs 

and to provide transportation to governmental offices, supply centers, 

stores, post offices, schools, major employment centers, and such other 

places as may be necessary in order to enable the community to resume 

its normal pattern of life as soon as possible. 

Sec..420..Fire.Management.Assistance.(42.u.S.C..5187) 

(a)		 In General – The President is authorized to provide assistance, 

including grants, equipment, supplies, and personnel, to any 

State or local government for the mitigation, management, and 

control of any fire on public or private forest land or grassland that 

threatens such destruction as would constitute a major disaster. 

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(b)		 Coordination with State and Tribal Departments of Forestry 

– In providing assistance under this section, the President shall 

coordinate with State and tribal departments of forestry. 

(c)		 Essential Assistance – In providing assistance under this section, 

the President may use the authority provided under section 5170b 

of this title. 

(d)		 Rules and Regulations – The President shall prescribe such rules 

and regulations as are necessary to carry out this section. 

Sec..421..Timber.Sale.Contracts.(42.u.S.C..5188) 

(a)		 Cost-sharing arrangement – Where an existing timber sale 

contract between the Secretary of Agriculture or the Secretary of 

the Interior and a timber purchaser does not provide relief from 

major physical change not due to negligence of the purchaser 

prior to approval of construction of any section of specified road 

or of any other specified development facility and, as a result of 

a major disaster, a major physical change results in additional 

construction work in connection with such road or facility by 

such purchaser with an estimated cost, as determined by the 

appropriate Secretary, (1) of more than $ 1,000 for sales under one 

million board feet, (2) of more than $1 per thousand board feet for 

sales of one to three million board feet, or (3) of more than $3,000 

for sales over three million board feet, such increased construction 

cost shall be borne by the United States. 

(b)		 Cancellation of authority – If the appropriate Secretary determines 

that damages are so great that restoration, reconstruction, or 

construction is not practical under the cost-sharing arrangement 

authorized by subsection (a) of this section, he may allow 

cancellation of a contract entered into by his Department 

notwithstanding contrary provisions therein. 

(c)		 Public notice of sale – The Secretary of Agriculture is authorized 

to reduce to seven days the minimum period of advance public 

notice required by section 476 of title 16, in connection with 

the sale of timber from national forests, whenever the Secretary 

determines that (1) the sale of such timber will assist in the 

construction of any area of a State damaged by a major disaster, 

(2) the sale of such timber will assist in sustaining the economy of 

such area, or (3) the sale of such timber is necessary to salvage 

the value of timber damaged in such major disaster or to protect 

undamaged timber. 

Appendix A: Stafford Act P.L. 93-288 A-
(d)		 State grants for removal of damaged timber; reimbursement 

of expenses limited to salvage value of removed timber – The 

President, when he determines it to be in the public interest, is 

authorized to make grants to any State or local government for the 

purpose of removing from privately owned lands timber damaged 

as a result of a major disaster, and such State or local government 

is authorized upon application, to make payments out of such 

grants to any person for reimbursement of expenses actually 

incurred by such person in the removal of damaged timber, not to 

exceed the amount that such expenses exceed the salvage value 

of such timber. 

Sec..422..Simplified.Procedures.(42.u.S.C..5189) 

If the Federal estimate of the cost of – 

(1)		 repairing, restoring, reconstructing, or replacing under section 

5172 of this title any damaged or destroyed public facility or 

private nonprofit facility, 

(2)		 emergency assistance under section 5170b or 5192 of this title, or 

(3)		 debris removed under section 5173 of this title, is less than 

$35,000, the President (on application of the State or local 

government or the owner or operator of the private nonprofit 

facility) may make the contribution to such State or local 

government or owner or operator under section 5170b, 5172, 

5173, or 5192 of this title, as the case may be, on the basis of 

such Federal estimate. 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. 

Sec..423..Appeals.of.Assistance.Decisions.(42.u.S.C..5189a) 

(a)		 Right of appeal – Any decision regarding eligibility for, from, or 

amount of assistance under this title may be appealed within 60 

days after the date on which the applicant for such assistance is 

notified of the award or denial of award of such assistance. 

(b)		 Period for decision – A decision regarding an appeal under 

subsection (a) shall be rendered within 90 days after the date on 

which the Federal official designated to administer such appeals 

receives notice of such appeal. 

(c)		 Rules – The President shall issue rules which provide for the fair 

and impartial consideration of appeals under this section. 

A- Appendix A: Stafford Act P.L. 93-288 
Sec..424..Date.of.Eligibility;.Expenses.Incurred.Before.Date.of. 

Disaster.(42.u.S.C..5189b) 

Eligibility for Federal assistance under this title shall begin on the date of 

the occurrence of the event which results in a declaration by the President 

that a major disaster exists; except that reasonable expenses which are 

incurred in anticipation of and immediately preceding such event may be 

eligible for Federal assistance under this Act. 

Sec..425..Transportation.Assistance.to.Individuals.and.Households* 

The President may provide transportation assistance to relocate 

individuals displaced from their predisaster primary residences as a result 

of an incident declared under this Act or otherwise transported from their 

predisaster primary residences under section 403(a)(3) or 502, to and 

from alternative locations for short or long-term accommodation or to 

return an individual or household to their predisaster primary residence or 

alternative location, as determined necessary by the President. 

Sec..426..Case.Management.Services* 

The President may provide case management services, including financial 

assistance, to State or local government agencies or qualified private 

organizations to provide such services, to victims of major disasters to 

identify and address unmet needs. 

Sec..427..Essential.Service.Providers* 

(a)		 Definition – In this section, the term ‘essential service provider’ 

means an entity that 

(1)		 provides – 

(A)		 telecommunications service; 

(B) electrical power; 

(C) natural gas; 

(D) water and sewer services; or 

(E)		 any other essential service, as determined by the President; 

(2)		 is – 

(A) a municipal entity; 

(B)		 a nonprofit entity; or 

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(C) a private, for profit entity; and 

(3)		 is contributing to efforts to respond to an emergency or major 

disaster. 

(b)		 Authorization for accessibility – Unless exceptional circumstances 

apply, in an emergency or major disaster, the head of a Federal 

agency, to the greatest extent practicable, shall not – 

(1)		 deny or impede access to the disaster site to an essential 

service provider whose access is necessary to restore and 

repair an essential service; or 

(2)		 impede the restoration or repair of the services described in 

subsection (a)(1). 

(c)		 Implementation – In implementing this section, the head of a 

Federal agency shall follow all applicable Federal laws, regulation, 

and policies. 

TITLE.v.–.EMERGENCy.ASSISTANCE.PROGRAMS. 

Sec..501..Procedure.for.Declaration.(42.u.S.C..5191) 

(a)		 Request and declaration – All requests for a declaration by the 

President that an emergency exists shall be made by the Governor 

of the affected State. Such a request shall be based on a finding 

that the situation is of such severity and magnitude that effective 

response is beyond the capabilities of the State and the affected 

local governments and that Federal assistance is necessary. 

As a part of such request, and as a prerequisite to emergency 

assistance under this Act, the Governor shall take appropriate 

action under State law and direct execution of the State’s 

emergency plan. The Governor shall furnish information describing 

the State and local efforts and resources which have been or 

will be used to alleviate the emergency, and will define the type 

and extent of Federal aid required. Based upon such Governor’s 

request, the President may declare that an emergency exists. 

(b)		 Certain emergencies involving Federal primary responsibility – The 

President may exercise any authority vested in him by section 502 

or section 503 with respect to an emergency when he determines 

that an emergency exists for which the primary responsibility for 

response rests with the United States because the emergency 

involves a subject area for which, under the Constitution or laws 

of the United States, the United States exercises exclusive or 

A- Appendix A: Stafford Act P.L. 93-288 
preeminent responsibility and authority. In determining whether 

or not such an emergency exists, the President shall consult the 

Governor of any affected State, if practicable. The President’s 

determination may be made without regard to subsection (a). 

Sec..502..Federal.Emergency.Assistance.(42.u.S.C..5192)* 

(a)		 Specified – In any emergency, the President may – 

(1)		 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, including precautionary 

evacuations; 

(2)		 coordinate all disaster relief assistance (including voluntary 

assistance) provided by Federal agencies, private organizations, 

and State and local governments; 

(3)		 provide technical and advisory assistance to affected State and 

local governments for – 

(A) the performance of essential community services; 

(B)		 issuance of warnings of risks or hazards; 

(C) public health and safety information, including dissemination 

of such information; 

(D)		provision of health and safety measures; and 

(E)		 management, control, and reduction of immediate threats to 

public health and safety; 

(4)		 provide emergency assistance through Federal agencies; 

(5)		 remove debris in accordance with the terms and conditions of 

section 407; 

(6)		 provide assistance in accordance with section 408; 

(7)		 assist State and local governments in the distribution of 

medicine, food, and other consumable supplies, and emergency 

assistance; and 

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(8)		 provide accelerated Federal assistance and Federal support 

where necessary to save lives, prevent human suffering, or 

mitigate severe damage, which may be provided in the absence 

of a specific request and in which case the President – 

(A) shall, to the fullest extent practicable, promptly notify and 

coordinate with a State in which such assistance or support 

is provided; and 

(B) shall not, in notifying and coordinating with a State under 

subparagraph (A), delay or impede the rapid deployment, 

use, and distribution of critical resources to victims of an 

emergency. 

(b)		 General – Whenever the Federal assistance provided under 

subsection (a) with respect to an emergency is inadequate, the 

President may also provide assistance with respect to efforts to 

save lives, protect property and public health and safety, and 

lessen or avert the threat of a catastrophe, including precautionary 

evacuations. 

(c)		 Guidelines – The President shall promulgate and maintain 

guidelines to assist Governors in requesting the declaration of 

an emergency in advance of a natural or man-made disaster 

(including for the purpose of seeking assistance with special 

needs and other evacuation efforts) under this section by 

defining the types of assistance available to affected States and 

the circumstances under which such requests are likely to be 

approved. 

Sec..503..Amount.of.Assistance.(42.u.S.C..5193) 

(a)		 Federal share – The Federal share for assistance provided under 

this title shall be equal to not less than 75 percent of the eligible 

costs. 

(b)		 Limit on amount of assistance– 

(1)		 In general – Except as provided in paragraph (2), total 

assistance provided under this title for a single emergency shall 

not exceed $5,000,000. 

(2)		 Additional assistance – The limitation described in paragraph (1) 

may be exceeded when the President determines that – 

(A) continued emergency assistance is immediately required; 

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(B)		there is a continuing and immediate risk to lives, property, 

public health or safety; and 

(C) necessary assistance will not otherwise be provided on a 

timely basis. 

(3)		 Report – Whenever the limitation described in paragraph (1) is 

exceeded, the President shall report to the Congress on the 

nature and extent of emergency assistance requirements and 

shall propose additional legislation if necessary. 

TITLE.vI.–.EMERGENCy.PREPAREDNESS 

Sec..601..Declaration.of.Policy.(42.u.S.C..5195) 

The purpose of this title is to provide a system of emergency 

preparedness for the protection of life and property in the United States 

from hazards and to vest responsibility for emergency preparedness 

jointly in the Federal Government and the States and their political 

subdivisions. The Congress recognizes that the organizational structure 

established jointly by the Federal Government and the States and their 

political subdivisions for emergency preparedness purposes can be 

effectively utilized to provide relief and assistance to people in areas 

of the United States struck by a hazard. The Federal Government 

shall provide necessary direction, coordination, and guidance, and 

shall provide necessary assistance, as authorized in this title so that a 

comprehensive emergency preparedness system exists for all hazards. 

Sec..602..Definitions.(42.u.S.C..5195a) 

(a)		 Definitions – For purposes of this title only: 

(1)		 Hazard – The term “hazard” means an emergency or disaster 

resulting from– 

(A)		 a natural disaster; or 

(B)		 an accidental or man-caused event. 

(2)		 Natural disaster – The term “natural disaster” means any 

hurricane, tornado, storm, flood, high water, wind-driven water, 

tidal wave, tsunami, earthquake, volcanic eruption, landslide, 

mudslide, snowstorm, drought, fire, or other catastrophe in any 

part of the United States which causes, or which may cause, 

substantial damage or injury to civilian property or persons. 

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(3)		 Emergency preparedness – The term “emergency 

preparedness” means all those activities and measures 

designed or undertaken to prepare for or minimize the effects 

of a hazard upon the civilian population, to deal with the 

immediate emergency conditions which would be created 

by the hazard, and to effectuate emergency repairs to, or the 

emergency restoration of, vital utilities and facilities destroyed or

damaged by the hazard. Such term includes the following: 

(A)		 Measures to be undertaken in preparation for anticipated 

hazards (including the establishment of appropriate 

organizations, operational plans, and supporting 

agreements, the recruitment and training of personnel, the 

conduct of research, the procurement and stockpiling of 

necessary materials and supplies, the provision of suitable 

warning systems, the construction or preparation of shelters,

shelter areas, and control centers, and, when appropriate, 

the non-military evacuation of the civilian population). 

(B)		 Measures to be undertaken during a hazard (including the 

enforcement of passive defense regulations prescribed by 

duly established military or civil authorities, the evacuation 

of personnel to shelter areas, the control of traffic and 

panic, and the control and use of lighting and civil 

communications). 

(C)		Measures to be undertaken following a hazard (including 

activities for fire fighting, rescue, emergency medical, health 

and sanitation services, monitoring for specific dangers 

of special weapons, unexploded bomb reconnaissance, 

essential debris clearance, emergency welfare measures, 

and immediately essential emergency repair or restoration of

damaged vital facilities). 

(4)		 Organizational equipment – The term “organizational 

equipment” means equipment determined by the Director to 

be necessary to an emergency preparedness organization, as 

distinguished from personal equipment, and of such a type or 

nature as to require it to be financed in whole or in part by the 

Federal Government. Such term does not include those items 

which the local community normally uses in combating local 

disasters, except when required in unusual quantities dictated 

by the requirements of the emergency preparedness plans. 

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(5)		 Materials – The term “materials” includes raw materials, 

supplies, medicines, equipment, component parts and 

technical information and processes necessary for emergency 

preparedness. 

(6)		 Facilities – The term “facilities”, except as otherwise provided in 

this title, includes buildings, shelters, utilities, and land. 

(7)		 Director – The term “Director” means the Director of the Federal 

Emergency Management Agency. 

(8)		 Neighboring countries – The term “neighboring countries” 

includes Canada and Mexico. 

(9)		 United States and States – The terms “United States “ and 

“States” includes the several States, the District of Columbia , 

and territories and possessions of the United States . 

(10) State – The term “State” includes interstate emergency 

preparedness authorities established under section 5196(h) of 

this title. 

(b)		 Cross Reference – The terms “national defense” and “defense,” as 

used in the Defense Production Act of 1950 (50 U.S.C. App. 2061 

et seq.), includes [include] emergency preparedness activities 

conducted pursuant to this title. 

Sec..603..Administration.of.Title.(42.u.S.C..5195b) 

This title shall be carried out by the Director of the Federal Emergency 

Management Agency. 

SuBTITLE.A.–.POWERS.AND.DuTIES 

Sec..611..Detailed.Functions.or.Administration.(42.u.S.C..5196)* 

(a)		 In General – In order to carry out the policy described in section 

5195 of this title, the Director shall have the authorities provided in 

this section. 

(b)		 Federal Emergency Response Plans and Programs – The 

Director may prepare Federal response plans and programs for 

the emergency preparedness of the United States and sponsor 

and direct such plans and programs. To prepare such plans and 

programs and coordinate such plans and programs with State 

efforts, the Director may request such reports on State plans and 

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operations for emergency preparedness as may be necessary 

to keep the President, Congress, and the States advised of the 

status of emergency preparedness in the United States. 

(c)		 Delegation of emergency preparedness responsibilities – With 

the approval of the President, the Director may delegate to 

other departments and agencies of the Federal Government 

appropriate emergency preparedness responsibilities and review 

and coordinate the emergency preparedness activities of the 

departments and agencies with each other and with the activities 

of the States and neighboring countries. 

(d)		 Communications and warnings – The Director may make 

appropriate provision for necessary emergency preparedness 

communications and for dissemination of warnings to the civilian 

population of a hazard. 

(e)		 Emergency preparedness measures – The Director may study and 

develop emergency preparedness measures designed to afford 

adequate protection of life and property, including – 

(1)		 research and studies as to the best methods of treating the 

effects of hazards; 

(2)		 developing shelter designs and materials for protective covering 

or construction; 

(3)		 developing equipment or facilities and effecting the 
 

standardization thereof to meet emergency preparedness 
 

requirements; and
 


(4)		 plans that take into account the needs of individuals with pets 

and service animals prior to, during, and following a major 

disaster or emergency. 

(f)		 Training programs – 

(1)		 The Director may – 

(A) conduct or arrange, by contract or otherwise, for training 

programs for the instruction of emergency preparedness 

officials and other persons in the organization, operation, 

and techniques of emergency preparedness; 

(B) conduct or operate schools or including the payment of 

travel expenses, in accordance with subchapter I of chapter 

57 of title 5, and the Standardized Government Travel 

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Regulations, and per diem allowances, in lieu of subsistence 

for trainees in attendance or the furnishing of subsistence 

and quarters for trainees and instructors on terms prescribed 

by the Director; and 

(C)		provide instructors and training aids as necessary. 

(2)		 The terms prescribed by the Director for the payment of 

travel expenses and per diem allowances authorized by this 

subsection shall include a provision that such payment shall not 

exceed one-half of the total cost of such expenses. 

(3)		 The Director may lease real property required for the purpose 

of carrying out this subsection, but may not acquire fee title to 

property unless specifically authorized by law. 

(g)		 Public dissemination of emergency preparedness information 

– The Director may publicly disseminate appropriate emergency 

preparedness information by all appropriate means. 

(h)		 Emergency preparedness compacts – 

(1)		 The Director shall establish a program supporting the 

development of emergency preparedness compacts for acts of 

terrorism, disasters, and emergencies throughout the Nation, 

by – 

(A) identifying and cataloging existing emergency preparedness 

compacts for acts of terrorism, disasters, and emergencies 

at the State and local levels of government; 

(B) disseminating to State and local governments examples 

of best practices in the development of emergency 

preparedness compacts and models of existing emergency 

preparedness compacts, including agreements involving 

interstate jurisdictions; and 

(C) completing an inventory of Federal response capabilities for 

acts of terrorism, disasters, and emergencies, making such 

inventory available to appropriate Federal, State, and local 

government officials, and ensuring that such inventory is as 

current and accurate as practicable. 

(2)		 The Director may – 

(A) assist and encourage the States to negotiate and enter into 

interstate emergency preparedness compacts; 

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(B)		review the terms and conditions of such proposed compacts 

in order to assist, to the extent feasible, in obtaining 

uniformity between such compacts and consistency with 

Federal emergency response plans and programs; 

(C)		assist and coordinate the activities under such compacts; 

and 

(D) aid and assist in encouraging reciprocal emergency 

preparedness legislation by the States which will permit 

the furnishing of mutual aid for emergency preparedness 

purposes in the event of a hazard which cannot be 

adequately met or controlled by a State or political 

subdivision thereof threatened with or experiencing a 

hazard. 

(3)		 A copy of each interstate emergency preparedness compact 

shall be transmitted promptly to the Senate and the House 

of Representatives. The consent of Congress is deemed to 

be granted to each such compact upon the expiration of the 

60-day period beginning on the date on which the compact is 

transmitted to Congress. 

(4)		 Nothing in this subsection shall be construed as preventing 

Congress from disapproving, or withdrawing at any time its 

consent to, any interstate emergency preparedness compact. 

(i)		 Materials and facilities – 

(1)		 The Director may procure by condemnation or otherwise, 

construct, lease, transport, store, maintain, renovate or 

distribute materials and facilities for emergency preparedness, 

with the right to take immediate possession thereof. 

(2)		 Facilities acquired by purchase, donation, or other means of 

transfer may be occupied, used, and improved for the purposes 

of this title before the approval of title by the Attorney General 

as required by section 255 of title 40 . 

(3)		 The Director may lease real property required for the purpose 

of carrying out the provisions of this subsection, but shall not 

acquire fee title to property unless specifically authorized by 

law. 

(4)		 The Director may procure and maintain under this subsection 

radiological, chemical, bacteriological, and biological agent 

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monitoring and decontamination devices and distribute 

such devices by loan or grant to the States for emergency 

preparedness purposes, under such terms and conditions as 

the Director shall prescribe. 

(j)		 Financial contributions – 

(1)		 The Director may make financial contributions, on the basis of 

programs or projects approved by the Director, to the States for 

emergency preparedness purposes, including the procurement, 

construction, leasing, or renovating of materials and facilities. 

Such contributions shall be made on such terms or conditions 

as the Director shall prescribe, including the method of 

purchase, the quantity, quality, or specifications of the materials 

or facilities, and such other factors or care or treatment to 

assure the uniformity, availability, and good condition of such 

materials or facilities. 

(2)		 The Director may make financial contributions, on the basis of 

programs or projects approved by the Director, to the States 

and local authorities for animal emergency preparedness 

purposes, including the procurement, construction, leasing, or 

renovating of emergency shelter facilities and materials that will 

accommodate people with pets and service animals. 

(3)		 No contribution may be made under this subsection for the 

procurement of land or for the purchase of personal equipment 

for State or local emergency preparedness workers. 

(4)		 The amounts authorized to be contributed by the Director 
 

to each State for organizational equipment shall be equally 
 

matched by such State from any source it determines is 
 

consistent with its laws.



(5)		 Financial contributions to the States for shelters and other 

protective facilities shall be determined by taking the amount of 

funds appropriated or available to the Director for such facilities 

in each fiscal year and apportioning such funds among the 

States in the ratio which the urban population of the critical 

target areas (as determined by the Director) in each State, at the 

time of the determination, bears to the total urban population of 

the critical target areas of all of the States. 

(6)		 The amounts authorized to be contributed by the Director to 

each State for such shelters and protective facilities shall be 

Appendix A: Stafford Act P.L. 93-288 A-
equally matched by such State from any source it determines is 

consistent with its laws and, if not matched within a reasonable 

time, the Director may reallocate such amounts to other States 

under the formula described in paragraph (4). The value of any 

land contributed by any State or political subdivision thereof 

shall be excluded from the computation of the State share 

under this subsection. 

(7)		 The amounts paid to any State under this subsection shall 

be expended solely in carrying out the purposes set forth 

herein and in accordance with State emergency preparedness 

programs or projects approved by the Director. The Director 

shall make no contribution toward the cost of any program or 

project for the procurement, construction, or leasing of any 

facility which (A) is intended for use, in whole or in part, for 

any purpose other than emergency preparedness, and (B) is 

of such kind that upon completion it will, in the judgment of 

the Director, be capable of producing sufficient revenue to 

provide reasonable assurance of the retirement or repayment 

of such cost; except that (subject to the preceding provisions 

of this subsection) the Director may make a contribution to 

any State toward that portion of the cost of the construction, 

reconstruction, or enlargement of any facility which the Director 

determines to be directly attributable to the incorporation 

in such facility of any feature of construction or design not 

necessary for the principal intended purpose thereof but which 

is, in the judgment of the Director necessary for the use of such 

facility for emergency preparedness purposes. 

(8)		 The Director shall submit to Congress a report, at least annually, 

regarding all contributions made pursuant to this subsection. 

(9)		 All laborers and mechanics employed by contractors or 

subcontractors in the performance of construction work 

financed with the assistance of any contribution of Federal 

funds made by the Director under this subsection shall be 

paid wages at rates not less than those prevailing on similar 

construction in the locality as determined by the Secretary of 

Labor in accordance with the Act of March 3, 1931 (commonly 

known as the Davis-Bacon Act, 40 U.S.C. 276a – 276a-5), 

and every such employee shall receive compensation at a rate 

not less than one and 1/2 times the basic rate of pay of the 

employee for all hours worked in any workweek in excess of 

eight hours in any workday or 40 hours in the workweek, as 

A- Appendix A: Stafford Act P.L. 93-288 
the case may be. The Director shall make no contribution of 

Federal funds without first obtaining adequate assurance that 

these labor standards will be maintained upon the construction 

work. The Secretary of Labor shall have, with respect to the 

labor standards specified in this subsection, the authority and 

functions set forth in Reorganization Plan Numbered 14 of 1950 

(5 U.S.C. App.) and section 276c of title 40. 

(k)		 Sale or disposal of certain materials and facilities – The Director 

may arrange for the sale or disposal of materials and facilities 

found by the Director to be unnecessary or unsuitable for 

emergency preparedness purposes in the same manner as 

provided for excess property under the Federal Property and 

Administrative Services Act of 1949 ( 40 U.S.C. 471 et seq.). Any 

funds received as proceeds from the sale or other disposition of 

such materials and facilities shall be deposited into the Treasury as 

miscellaneous receipts. 

Sec..612..Mutual.Aid.Pacts.Between.States.and.Neighboring. 

Countries.(42.u.S.C..5196a) 

The Director shall give all practicable assistance to States in arranging, 

through the Department of State, mutual emergency preparedness aid 

between the States and neighboring countries. 

Sec..613..Contributions.for.Personnel.and.Administrative.Expenses. 

(42.u.S.C..5196b)* 

(a)		 General authority – To further assist in carrying out the purposes 

of this title, the Director may make financial contributions 

to the States (including interstate emergency preparedness 

authorities established pursuant to section 5196(h) of this title) for 

necessary and essential State and local emergency preparedness 

personnel and administrative expenses, on the basis of approved 

plans (which shall be consistent with the Federal emergency 

response plans for emergency preparedness) for the emergency 

preparedness of the States. The financial contributions to the 

States under this section may not exceed one-half of the total 

cost of such necessary and essential State and local emergency 

preparedness personnel and administrative expenses. 

(b)		 Plan requirements – A plan submitted under this section shall – 

Appendix A: Stafford Act P.L. 93-288 A-
(1)		 provide, pursuant to State law, that the plan shall be in effect in 

all political subdivisions of the State and be mandatory on them 

and be administered or supervised by a single State agency; 

(2)		 provide that the State shall share the financial assistance with 

that provided by the Federal Government under this section 

from any source determined by it to be consistent with State 

law; 

(3)		 provide for the development of State and local emergency 

preparedness operational plans, including a catastrophic 

incident annex, pursuant to standards approved by the Director; 

(4)		 provide for the employment of a full-time emergency 
 

preparedness director, or deputy director, by the State; 
 

(5)		 provide that the State shall make such reports in such form and 

content as the Director may require; 

(6)		 make available to duly authorized representatives of the Director 

and the Comptroller General, books, records, and papers 

necessary to conduct audits for the purposes of this section; 

and 

(7)		 include a plan for providing information to the public in a 
 

coordinated manner.
 


(c)		 Catastrophic Incident Annex – 

(1)		 Consistency – A catastrophic incident annex submitted under 

subsection (b)(3) shall be – 

(A)		 modeled after the catastrophic incident annex of the 

National Response Plan; and 

(B) consistent with the national preparedness goal established 

under section 643 of the Post-Katrina Emergency 

Management Reform Act of 2006, the National Incident 

Management System, the National Response Plan, and 

other related plans and strategies. 

(2)		 Consultation – In developing a catastrophic incident 

annex submitted under subsection (b)(3), a State shall 

consult with and seek appropriate comments from local 

governments, emergency response providers, locally governed 

multijurisdictional councils of government, and regional planning 

commissions. 

A- Appendix A: Stafford Act P.L. 93-288 
(d)		 Terms and conditions – The Director shall establish such other 

terms and conditions as the Director considers necessary and 

proper to carry out this section. 

(e)		 Application of other provisions – In carrying out this section, the 

provisions of sections 5196(h) and 5197(h) of this title shall apply. 

(f)		 Allocation of funds – For each fiscal year concerned, the Director 

shall allocate to each State, in accordance with regulations and 

the total sum appropriated under this title, amounts to be made 

available to the States for the purposes of this section. Regulations 

governing allocations to the States under this subsection shall give 

due regard to (1) the criticality of the areas which may be affected 

by hazards with respect to the development of the total emergency 

preparedness readiness of the United States, (2) the relative state 

of development of emergency preparedness readiness of the 

State, (3) population, and (4) such other factors as the Director 

shall prescribe. The Director may reallocate the excess of any 

allocation not used by a State in a plan submitted under this 

section. Amounts paid to any State or political subdivision under 

this section shall be expended solely for the purposes set forth in 

this section. 

(g)		 Standards for State and Local Emergency Preparedness 

Operational Plans – In approving standards for State and local 

emergency preparedness operational plans pursuant to subsection 

(b)(3), the Director shall ensure that such plans take into account 

the needs of individuals with household pets and service animals 

prior to, during, and following a major disaster or emergency. 

(h)		 Submission of plan – If a State fails to submit a plan for approval 

as required by this section within 60 days after the Director notifies 

the States of the allocations under this section, the Director may 

reallocate such funds, or portions thereof, among the other States 

in such amounts as, in the judgment of the Director, will best 

assure the adequate development of the emergency preparedness 

capability of the United States. 

(i)		 Annual reports – The Director shall report annually to the Congress 

all contributions made pursuant to this section. 

Appendix A: Stafford Act P.L. 93-288 A-
Sec..614..Requirement.for.State.Matching.Funds.for.Construction.of. 

Emergency.Operating.Centers.(42.u.S.C..5196c) 

Notwithstanding any other provision of this title, funds appropriated 

to carry out this title may not be used for the purpose of constructing 

emergency operating centers (or similar facilities) in any State unless such 

State matches in an equal amount the amount made available to such 

State under this title for such purpose. 

Sec..615..use.of.Funds.to.Prepare.for.and.Respond.to.Hazards.(42. 

u.S.C..5196d) 

Funds made available to the States under this title may be used by the 

States for the purposes of preparing for hazards and providing emergency 

assistance in response to hazards. Regulations prescribed to carry 

out this section shall authorize the use of emergency preparedness 

personnel, materials, and facilities supported in whole or in part through 

contributions under this title for emergency preparedness activities and 

measures related to hazards. 

Sec..616..Disaster.Related.Information.Services* 

(a)		 In General – Consistent with section 308(a), the Director of the 

Federal Emergency Management Agency shall – 

(1)		 identify, in coordination with State and local governments, 

population groups with limited English proficiency and take into 

account such groups in planning for an emergency or major 

disaster; 

(2)		 ensure that information made available to individuals affected 

by a major disaster or emergency is made available in formats 

that can be understood by – 

(A) population groups identified under paragraph (1); and 

(B) individuals with disabilities or other special needs; and 

(3)		 develop and maintain an informational clearinghouse of model 

language assistance programs and best practices for State 

and local governments in providing services related to a major 

disaster or emergency. 

(b)		 Group Size – For purposes of subsection (a), the Director of the 

Federal Emergency Management Agency shall define the size of a 

population group. 

A- Appendix A: Stafford Act P.L. 93-288 
SuBTITLE.B.–.GENERAL.PROvISIONS 

Sec..621..Administrative.Authority.(42.u.S.C..5197) 

(a)		 In General – For the purpose of carrying out the powers and duties 

assigned to the Director under this title, the Director may exercise 

the administrative authorities provided under this section. 

(b)		 Advisory personnel – The Director may employ not more than 100 

part-time or temporary advisory personnel (including not to exceed 

25 subjects of the United Kingdom or citizens of Canada) as the 

Director considers to be necessary in carrying out the provisions 

of this title. 

(1)		 Persons holding other offices or positions under the United 

States for which they receive compensation, while serving as 

advisory personnel, shall receive no additional compensation for 

such service. Other part-time or temporary advisory personnel 

so employed may serve without compensation or may receive 

compensation at a rate not to exceed $180 for each day of 

service, plus authorized subsistence and travel, as determined 

by the Director. 

(c)		 Services of other agency personnel and volunteers – The Director 

may – 

(1)		 use the services of Federal agencies and, with the consent of 

any State or local government, accept and use the services of 

State and local agencies; 

(2)		 establish and use such regional and other offices as may be 

necessary; and 

(3)		 use such voluntary and uncompensated services by individuals 

or organizations as may from time to time be needed. 

(d)		 Gifts – Notwithstanding any other provision of law, the Director 

may accept gifts of supplies, equipment, and facilities and may 

use or distribute such gifts for emergency preparedness purposes 

in accordance with the provisions of this title. 

(e)		 Reimbursement – The Director may reimburse any Federal agency 

for any of its expenditures or for compensation of its personnel 

and use or consumption of its materials and facilities under this 

title to the extent funds are available. 

Appendix A: Stafford Act P.L. 93-288 A-
(f)		 Printing – The Director may purchase such printing, binding, and 

blank-book work from public, commercial, or private printing 

establishments or binderies as the Director considers necessary 

upon orders placed by the Public Printer or upon waivers issued in 

accordance with section 504 of title 44. 

(g)		 Rules and regulations – The Director may prescribe such rules 

and regulations as may be necessary and proper to carry out any 

of the provisions of this title and perform any of the powers and 

duties provided by this title. The Director may perform any of the 

powers and duties provided by this title through or with the aid of 

such officials of the Federal Emergency Management Agency as 

the Director may designate. 

(h)		 Failure to expend contributions correctly – When, after reasonable 

notice and opportunity for hearing to the State or other person 

involved, the Director finds that there is a failure to expend 

funds in accordance with the regulations, terms, and conditions 

established under this subchapter for approved emergency 

preparedness plans, programs, or projects, the Director may notify 

such State or person that further payments will not be made to the 

State or person from appropriations under this subchapter (or from 

funds otherwise available for the purposes of this subchapter for 

any approved plan, program, or project with respect to which there 

is such failure to comply) until the Director is satisfied that there 

will no longer be any such failure. 

(1)		 When, after reasonable notice and opportunity for hearing to 

the State or other person involved, the Director finds that there 

is a failure to expend funds in accordance with the regulations, 

terms, and conditions established under this title for approved 

emergency preparedness plans, programs, or projects, the 

Director may notify such State or person that further payments 

will not be made to the State or person from appropriations 

under this title (or from funds otherwise available for the 

purposes of this title for any approved plan, program, or project 

with respect to which there is such failure to comply) until the 

Director is satisfied that there will no longer be any such failure. 

(2)		 Until so satisfied, the Director shall either withhold the payment 

of any financial contribution to such State or person or limit 

payments to those programs or projects with respect to which 

there is substantial compliance with the regulations, terms, and 

conditions governing plans, programs, or projects hereunder. 

A-0 Appendix A: Stafford Act P.L. 93-288 
(3)		 As used in this subsection, the term “person” means the 

political subdivision of any State or combination or group 

thereof or any person, corporation, association, or other entity 

of any nature whatsoever, including instrumentalities of States 

and political subdivisions. 

Sec..622..Security.Regulations.(42.u.S.C..5197a) 

(a)		 Establishment – The Director shall establish such security 

requirements and safeguards, including restrictions with respect 

to access to information and property as the Director considers 

necessary. 

(b)		 Limitation on Employee access to information – No employee of 

the Federal Emergency Management Agency shall be permitted 

to have access to information or property with respect to which 

access restrictions have been established under this section, until 

it shall have been determined that no information is contained 

in the files of the Federal Bureau of Investigation or any other 

investigative agency of the Government indicating that such 

employee is of questionable loyalty or reliability for security 

purposes, or if any such information is so disclosed, until the 

Federal Bureau of Investigation shall have conducted a full field 

investigation concerning such person and a report thereon shall 

have been evaluated in writing by the Director. 

(c)		 National Security Positions – No employee of the Federal 

Emergency Management Agency shall occupy any position 

determined by the Director to be of critical importance from 

the standpoint of national security until a full field investigation 

concerning such employee shall have been conducted by the 

Director of the Office of Personnel Management and a report 

thereon shall have been evaluated in writing by the Director of 

the Federal Emergency Management Agency. In the event such 

full field investigation by the Director of the Office of Personnel 

Management develops any data reflecting that such applicant 

for a position of critical importance is of questionable loyalty or 

reliability for security purposes, or if the Director of the Federal 

Emergency Management Agency for any other reason considers 

it to be advisable, such investigation shall be discontinued and 

a report thereon shall be referred to the Director of the Federal 

Emergency Management Agency for evaluation in writing. 

Thereafter, the Director of the Federal Emergency Management 

Agency may refer the matter to the Federal Bureau of Investigation 

Appendix A: Stafford Act P.L. 93-288 A-
for the conduct of a full field investigation by such Bureau. 

The result of such latter investigation by such Bureau shall be 

furnished to the Director of the Federal Emergency Management 

Agency for action. 

(d)		 Employee Oaths – Each Federal employee of the Federal 

Emergency Management Agency acting under the authority of this 

title, except the subjects of the United Kingdom and citizens of 

Canada specified in section 5197(b) of this title, shall execute the 

loyalty oath or appointment affidavits prescribed by the Director 

of the Office of Personnel Management. Each person other than 

a Federal employee who is appointed to serve in a State or local 

organization for emergency preparedness shall before entering 

upon duties, take an oath in writing before a person authorized to 

administer oaths, which oath shall be substantially as follows: 

(e)		 “I______, do solemnly swear (or affirm) that I will support and 

defend the Constitution of the United States against all enemies, 

foreign and domestic; that I will bear true faith and allegiance to 

the same; that I take this obligation freely, without any mental 

reservation or purpose of evasion; and that I will well and faithfully 

discharge the duties upon which I am about to enter. 

“And I do further swear (or affirm) that I do not advocate, nor am I 

a member or an affiliate of any organization, group, or combination 

of persons that advocates the overthrow of the Government of 

the United States by force or violence; and that during such time 

as I am a member of ________ (name of emergency preparedness 

organization), I will not advocate nor become a member or an 

affiliate of any organization, group, or combination of persons that 

advocates the overthrow of the Government of the United States 

by force or violence.” 

After appointment and qualification for office, the Director of 

emergency preparedness of any State, and any subordinate 

emergency preparedness officer within such State designated by 

the Director in writing, shall be qualified to administer any such 

oath within such State under such regulations as the Director shall 

prescribe. Any person who shall be found guilty of having falsely 

taken such oath shall be punished as provided in section 1621 of 

title 18. 

Sec..623..use.of.Existing.Facilities.(42.u.S.C..5197b) 

In performing duties under this title, the Director – 

A- Appendix A: Stafford Act P.L. 93-288 
(1)		 shall cooperate with the various departments and agencies of the 

Federal Government; 

(2)		 shall use, to the maximum extent, the existing facilities and 

resources of the Federal Government and, with their consent, the 

facilities and resources of the States and political subdivisions 

thereof, and of other organizations and agencies; and 

(3)		 shall refrain from engaging in any form of activity which would 

duplicate or parallel activity of any other Federal department 

or agency unless the Director, with the written approval of the 

President, shall determine that such duplication is necessary to 

accomplish the purposes of this title. 

Sec..624..Annual.Report.to.Congress.(42.u.S.C..5197c) 

The Director shall annually submit a written report to the President 

and Congress covering expenditures, contributions, work, and 

accomplishments of the Federal Emergency Management Agency 

pursuant to this title, accompanied by such recommendations as the 

Director considers appropriate. 

Sec..625..Applicability.of.Subchapter.(42.u.S.C..5197d) 

The provisions of this title shall be applicable to the United States, its 

States, Territories and possessions, and the District of Columbia, and 

their political subdivisions. 

Sec..626..Authorization.of.Appropriation.and.Transfers.of.Funds.(42. 

u.S.C..5197e) 

(a)		 Authorization of appropriations – There are authorized to be 

appropriated such sums as may be necessary to carry out the 

provisions of this title. 

(b)		 Transfer Authority – Funds made available for the purposes of this 

title may be allocated or transferred for any of the purposes of this 

title, with the approval of the Director of the Office of Management 

and Budget, to any agency or government corporation designated 

to assist in carrying out this title. Each such allocation or transfer 

shall be reported in full detail to the Congress within 30 days after 

such allocation or transfer. 

Appendix A: Stafford Act P.L. 93-288 A-
Sec..627..Relation.to.Atomic.Energy.Act.of.1954..(42.u.S.C..5197f) 

Nothing in this title shall be construed to alter or modify the provisions of 

the Atomic Energy Act of 1954 (42 U.S.C. 2011 et seq.). 

Sec..628..Federal.Bureau.of.Investigation..(42.u.S.C..5197g) 

Nothing in this title shall be construed to authorize investigations of 

espionage, sabotage, or subversive acts by any persons other than 

personnel of the Federal Bureau of Investigation. 

TITLE.vII.–.MISCELLANEOuS 

Sec..701..Rules.and.Regulations.(42.u.S.C..5201) 

(a)		 Rules and regulations 

(1)		 The President may prescribe such rules and regulations as may 

be necessary and proper to carry out any of the provisions of 

this Act, and he may exercise any power or authority conferred 

on him by any section of this Act either directly or through such 

Federal agency or agencies as he may designate. 

(2)		 Deadline for payment of assistance – Rules and regulations 

authorized by paragraph (1) shall provide that payment of any 

assistance under this Act to a State shall be completed within 

60 days after the date of approval of such assistance. 

(b)		 In furtherance of the purposes of this Act, the President or his 

delegate may accept and use bequests, gifts, or donations of 

service, money, or property, real, personal, or mixed, tangible, 

or intangible. All sums received under this subsection shall be 

deposited in a separate fund on the books of the Treasury and 

shall be available for expenditure upon the certification of the 

President or his delegate. At the request of the President or his 

delegate, the Secretary of the Treasury may invest and reinvest 

excess monies in the fund. Such investments shall be in public 

debt securities with maturities suitable for the needs of the fund 

and shall bear interest at rates determined by the Secretary of 

the Treasury, taking into consideration current market yields 

on outstanding marketable obligations of the United States of 

comparable maturities. The interest on such investments shall be 

credited to, and form a part of, the fund. 

A- Appendix A: Stafford Act P.L. 93-288 
Sec..705..Disaster.Grant.Closeout.Procedures.(42.u.S.C..5205) 

(a)		 Statute of Limitations – 

(1)		 In general – Except as provided in paragraph (2), no 

administrative action to recover any payment made to a State 

or local government for disaster or emergency assistance under 

this Act shall be initiated in any forum after the date that is 3 

years after the date of transmission of the final expenditure 

report for the disaster or emergency. 

(2)		 Fraud exception – The limitation under paragraph (1) shall apply 

unless there is evidence of civil or criminal fraud. 

(b)		 Rebuttal of Presumption of Record Maintenance – 

(1)		 In general – In any dispute arising under this section after the 

date that is 3 years after the date of transmission of the final 

expenditure report for the disaster or emergency, there shall 

be a presumption that accounting records were maintained 

that adequately identify the source and application of funds 

provided for financially assisted activities. 

(2)		 Affirmative evidence – The presumption described in 

paragraph (1) may be rebutted only on production of affirmative 

evidence that the State or local government did not maintain 

documentation described in that paragraph. 

(3)		 Inability to produce documentation – The inability of the Federal, 

State, or local government to produce source documentation 

supporting expenditure reports later than 3 years after the 

date of transmission of the final expenditure report shall not 

constitute evidence to rebut the presumption described in 

paragraph (1). 

(4)		 Right of access – The period during which the Federal, State, or 

local government has the right to access source documentation 

shall not be limited to the required 3-year retention period 

referred to in paragraph (3), but shall last as long as the records 

are maintained. 

(c)		 Binding Nature of Grant Requirements – A State or local 

government shall not be liable for reimbursement or any other 

penalty for any payment made under this Act if – 

(1)		 the payment was authorized by an approved agreement 

specifying the costs; 

Appendix A: Stafford Act P.L. 93-288 A-
(2)		 the costs were reasonable; and 

(3)		 the purpose of the grant was accomplished. 

Sec..706..Firearms.Policies.(42.u.S.C..5207)* 

(a)		 Prohibition on Confiscation of Firearms – No officer or employee 

of the United States (including any member of the uniformed 

services), or person operating pursuant to or under color of 

Federal law, or receiving Federal funds, or under control of any 

Federal official, or providing services to such an officer, employee 

or other person, while acting in support of relief from a major 

disaster or emergency, may – 

(1)		 temporarily or permanently seize, or authorize seizure of, any 

firearm the possession of which is not prohibited under Federal, 

State, or local law, other than for forfeiture in compliance with 

Federal law or as evidence in a criminal investigation; 

(2)		 require registration of any firearm for which registration is not 

required by Federal, State, or local law; 

(3)		 prohibit possession of any firearm, or promulgate any rule, 

regulation, or order prohibiting possession of any firearm, in any 

place or by an person where such possession is not otherwise 

prohibited by Federal, State, or local law; or 

(4)		 prohibit the carrying of firearms under Federal, State, or local 

law, solely because such person is operating under the direction, 

control, or supervision of a Federal agency in support of relief from 

the major disaster or emergency. 

(b)		 Limitation – Nothing in this section shall be construed to prohibit 

any person in subsection (a) from requiring the temporary 

surrender of a firearm as a condition for entry into any mode 

of transportation used for rescue or evacuation during a major 

disaster or emergency, provided that such temporarily surrendered 

firearm is returned at the completion of such rescue or evacuation. 

(c)		 Private Rights of Action – 

(1)		 In General – Any individual aggrieved by a violation of this 

section may seek relief in an action at law, suit in equity, or other 

proper proceeding for redress against any person who subjects 

such individual, or causes such individual to be subjected, to 

A- Appendix A: Stafford Act P.L. 93-288 
the deprivation of any of the rights, privileges, or immunities 

secured by this section. 

(2)		 Remedies – In addition to any existing remedy in law or equity, 

under any law, an individual aggrieved by the seizure or 

confiscation of a firearm in violation of this section may bring 

an action for return of such firearm in the United States district 

court in the district in which that individual resides or in which 

such firearm may be found. 

(3)		 Attorney Fees – In any action or proceeding to enforce this 

section, the court shall award the prevailing party, other than the 

United States, a reasonable attorney’s fee as part of the costs. 

MISCELLANEOuS.STATuTORy.PROvISIONS.THAT.RELATE. 

TO.THE.STAFFORD.ACT 

Excess.Disaster.Assistance.Payments.as.Budgetary.Emergency. 

Requirements.(42.u.S.C..5203) 

Hereafter, beginning in fiscal year 1993, and in each year thereafter, 

notwithstanding any other provision of law, all amounts appropriated for 

disaster assistance payments under the Robert T. Stafford Disaster Relief 

and Emergency Assistance Act (42 U.S.C. 5121 et seq.) that are in excess 

of either the historical annual average obligation of $320,000,000, or the 

amount submitted in the President’s initial budget request, whichever 

is lower, shall be considered as “emergency requirements” pursuant to 

section 901(b)(2)(D) of title 2, and such amounts shall hereafter be so 

designated. 

Insular.Areas.Disaster.Survival.and.Recovery;.Definitions.(42.u.S.C.. 

5204) 

As used in sections 5204 to 5204c of this title – 

(1)		 the term “insular area” means any of the following: American 

Samoa, the Federated States of Micronesia, Guam, the Marshall 

Islands, the Northern Mariana Islands, and the Virgin Islands; 

(2)		 the term “disaster” means a declaration of a major disaster by the 

President after September 1, 1989, pursuant to section 401 of the 

Robert T. Stafford Disaster Relief and Emergency Assistance Act 

(42 U.S.C. 5170); and 

(3)		 the term “Secretary” means the Secretary of the Interior. 

Appendix A: Stafford Act P.L. 93-288 A-
Note: See the note preceding 48 U.S.C. § 1681 terminating the 

Trust Territory of the Pacific Islands which effectively removes the 

Federated States of Micronesia and the Marshall Islands from the 

definition of “insular area.” 

Authorization.of.Appropriations.for.Insular.Areas.(Disaster.Recovery). 

(42.u.S.C..5204a) 

There are hereby authorized to be appropriated to the Secretary such 

sums as may be necessary to – 

(1)		 reconstruct essential public facilities damaged by disasters in the 

insular areas that occurred prior to February 24, 1992; and 

(2)		 enhance the survivability of essential public facilities in the event 

of disasters in the insular areas, except that with respect to the 

disaster declared by the President in the case of Hurricane Hugo, 

September 1989, amounts for any fiscal year shall not exceed 25 

percent of the estimated aggregate amount of grants to be made 

under sections 5170b and 5172 of this title for such disaster. Such 

sums shall remain available until expended. 

Technical.Assistance.for.Insular.Areas.(Disaster.Recovery).(42. 

u.S.C..5204b) 

(a)		 Upon the declaration by the President of a disaster in an insular 

area, the President, acting through the Director of the Federal 

Emergency Management Agency, shall assess, in cooperation 

with the Secretary and chief executive of such insular area, the 

capability of the insular government to respond to the disaster, 

including the capability to assess damage; coordinate activities 

with Federal agencies, particularly the Federal Emergency 

Management Agency; develop recovery plans, including 

recommendations for enhancing the survivability of essential 

infrastructure; negotiate and manage reconstruction contracts; 

and prevent the misuse of funds. If the President finds that 

the insular government lacks any of these or other capabilities 

essential to the recovery effort, then the President shall provide 

technical assistance to the insular area which the President deems 

necessary for the recovery effort. 

(b)		 One year following the declaration by the President of a disaster 

in an insular area, the Secretary, in consultation with the Director 

of the Federal Emergency Management Agency, shall submit to 

the Senate Committee on Energy and Natural Resources and the 

A- Appendix A: Stafford Act P.L. 93-288 
House Committee on Natural Resources a report on the status of 

the recovery effort, including an audit of Federal funds expended 

in the recovery effort and recommendations on how to improve 

public health and safety, survivability of infrastructure, recovery 

efforts, and effective use of funds in the event of future disasters. 

Hazard.Mitigation.for.Insular.Areas.(Limitation.on.Amount.of. 

Contributions,.Local.Match).(42.u.S.C..5204c) 

The total of contributions under the last sentence of section 5170c of this 

title for the insular areas shall not exceed 10 percent of the estimated 

aggregate amounts of grants to be made under sections 5170c, 5172, 

5173, 5174 and 5178 of this title for any disaster: Provided, That the 

President shall require a 50 percent local match for assistance in excess 

of 10 percent of the estimated aggregate amount of grants to be made 

under section 5172 of this title for any disaster. 

Note: This provision is superseded by Section 404 of the Stafford Act. 

Buy.American.(Requirements).(42.u.S.C..5206) 

(a)		 Compliance With Buy American Act – No funds authorized to be 

appropriated under this Act [Disaster Mitigation Act of 2000, Pub. 

L. No.106-390] or any amendment made by this Act [Disaster 

Mitigation Act of 2000, Pub. L. No.106-390] may be expended by 

an entity unless the entity, in expending the funds, complies with 

the Buy American Act (41 U.S.C. 10a et seq.). 

(b)		 Debarment of Persons Convicted of Fraudulent Use of “Made in 

America” Labels – 

(1)		 In general – If the Director of the Federal Emergency 

Management Agency determines that a person has been 

convicted of intentionally affixing a label bearing a “Made in 

America” inscription to any product sold in or shipped to the 

United States that is not made in America, the Director shall 

determine, not later than 90 days after determining that the 

person has been so convicted, whether the person should be 

debarred from contracting under the Robert T. Stafford Disaster 

Relief and Emergency Assistance Act (42 U.S.C. 5121 et seq.). 

(2)		 Definition of debar – In this subsection, the term “debar” has 

the meaning given the term in section 2393(c) of title 10, United 

States Code. 

Appendix A: Stafford Act P.L. 93-288 A-
DEPARTMENT.OF.HOMELAND.SECuRITy. 

APPROPRIATIONS.ACT,.2007,.PuB..L..NO..109-295,.120. 

STAT..1355.(2006),.SIGNED.ON.OCTOBER.4,.2006. 

Sec..508.. 

None of the funds in this Act may be used to make a grant allocation, 

discretionary grant award, discretionary contract award, or to issue a 

letter of intent totaling in excess of $1,000,000, or to announce publicly 

the intention to make such an award, unless the Secretary of Homeland 

Security notifies the Committees on Appropriations of the Senate and the 

House of Representatives at least three full business days in advance: 

Provided, That no notification shall involve funds that are not available for 

obligation: Provided further, That the Office of Grants and Training shall 

brief the Committees on Appropriations of the Senate and the House 

of Representatives five full business days in advance of announcing 

publicly the intention of making an award of formula-based grants; law 

enforcement terrorism prevention grants; or high-threat, high-density 

urban areas grants. 

Sec..536.. 

The Department of Homeland Security shall, in approving standards for 

State and local emergency preparedness operational plans under section 

613(b)(3) of the Robert T. Stafford Disaster and Emergency Assistance 

Act (42 U.S.C. 5196b(b)(3)), account for the needs of individuals with 

household pets and service animals before, during, and following a major 

disaster or emergency: Provided, That Federal agencies may provide 

assistance as described in section 403(a) of the Robert T. Stafford 

Disaster and Emergency Assistance Act (42 U.S.C. 5170b(a)) to carry out 

plans described in the previous proviso. 

Sec..547.. 

None of the funds made available in this Act may be used to award any 

contract for major disaster or emergency assistance activities under the 

Robert T. Stafford Disaster Relief and Emergency Assistance Act except 

in accordance with section 307 of such Act (42 U.S.C. 5150). 

Sec..612... 

(c) References- Any reference to the Director of the Federal Emergency 

Management Agency, in any law, rule, regulation, certificate, directive, 

instruction, or other official paper shall be considered to refer and apply 

to the Administrator of the Federal Emergency Management Agency. 

A-0 Appendix A: Stafford Act P.L. 93-288 
(f) Interim Actions­

(1) 	 IN GENERAL- During the period beginning on the date of 

enactment of this Act and ending on March 31, 2007, the 

Secretary, the Under Secretary for Preparedness, and the 

Director of the Federal Emergency Management Agency shall 

take such actions as are necessary to provide for the orderly 

implementation of any amendment under this subtitle that takes 

effect on March 31, 2007. 

(2) 	 REFERENCES- Any reference to the Administrator of the 

Federal Emergency Management Agency in this title or an 

amendment by this title shall be considered to refer and apply 

to the Director of the Federal Emergency Management Agency 

until March 31, 2007. 

Sec..640a..Disclosure.of.Certain.Information.to.Law.Enforcement. 

Agencies 

In the event of circumstances requiring an evacuation, sheltering, or mass 

relocation, the Administrator may disclose information in any individual 

assistance database of the Agency in accordance with section 552a(b) of 

title 5, United States Code (commonly referred to as the “Privacy Act”), 

to any law enforcement agency of the Federal Government or a State, 

local, or tribal government in order to identify illegal conduct or address 

public safety or security issues, including compliance with sex offender 

notification laws. 

Sec..653..Federal.Preparedness 

(c) 	 Mission Assignments – To expedite the provision of assistance 

under the National Response Plan, the President shall ensure 

that the Administrator, in coordination with Federal agencies 

with responsibilities under the National Response Plan, 

develops prescripted mission assignments, including logistics, 

communications, mass care, health services, and public safety. 

Sec..689b..Reunification. 

(a)		 Definitions – In this section: 

(1)		 Child Locator Center – The term “Child Locator Center” means 

the National Emergency Child Locator Center established under 

subsection (b). 

Appendix A: Stafford Act P.L. 93-288 A-
(2)		 Declared Event – The term “declared event” means a major 

disaster or emergency. 

(3)		 Displaced Adult – The term “displaced adult” means an 

individual 21 years of age or older who is displaced from the 

habitual residence of that individual as a result of a declared 

event. 

(4)		 Displaced Child – The term “displaced child” means an 

individual under 21 years of age who is displaced from the 

habitual residence of that individual as a result of a declared 

event. 

(b)		 National Emergency Child Locator Center – 

(1)		 In general – Not later than 180 days after the date of enactment 

of this Act, the Administrator, in coordination with the 

Attorney General of the United States, shall establish within 

the National Center for Missing and Exploited Children the 

National Emergency Child Locator Center. In Establishing the 

National Emergency Child Locator Center, the Administrator 

shall establish procedures to make all relevant information 

available to the National Emergency Child Locator Center in 

a timely manner to facilitate the expeditious identification and 

reunification of children with their families. 

(2)		 Purposes – The purposes of the Child Locator Center are to 

(A) enable individuals to provide to the Child Locator Center the 

name of and other identifying information about a displaced 

child or a displaced adult who may have information about 

the location of a displaced child; 

(B)		 enable individuals to receive information about other sources 

of information about displaced children and displaced 

adults; and 

(C)		assist law enforcement in locating displaced children. 

(3)		 Responsibilities and Duties – The responsibilities and duties of 

the Child Locator Center are to – 

(A)		 establish a toll-free telephone number to receive reports of 

displaced children and information about displaced adults 

that may assist in locating displaced children; 

A- Appendix A: Stafford Act P.L. 93-288 
(B)		 create a website to provide information about displaced 

children; 

(C) deploy its staff to the location of a declared event to gather 

information about displaced children; 

(D)		assist in the reunification of displaced children with their 

families; 

(E)		 provide information to the public about additional resources 

for disaster assistance; 

(F)		 work in partnership with Federal, State, and local law 

enforcement agencies; 

(G) provide technical assistance in locating displaced children; 

(H)		share information on displaced children and displaced 

adults with governmental agencies and nongovernmental 

organizations providing disaster assistance; 

(I)		 use its resources to gather information about displaced 

children; 

(J)		 refer reports of displaced adults to 

(i)		 an entity designated by the Attorney General to provide 

technical assistance in locating displaced adults; and 

(ii)		 the National Emergency Family Registry and Locator 

System as defined under section 689c(a); 

(K)	 enter into cooperative agreements with Federal and State 

agencies and other organizations such as the American Red 

Cross as necessary to implement the mission of the Child 

Locator Center; and 

(L)		 develop an emergency response plan to prepare for the 

activation of the Child Locator Center. 

(c)		 Conforming Amendments – Section 403(1) of the Missing 

Children’s Assistance Act (42 U.S.C. 5772(1)) is amended – 

(1) in subparagraph (A), by striking “or” at the end; 

(2) in subparagraph (B), by adding “or” after the semicolon; and 

(3) by inserting after subparagraph (B) the following: 

 “(C) the individual is an individual under 21 years of age who 

is displaced from the habitual residence of that individual as a 

Appendix A: Stafford Act P.L. 93-288 A-
result of an emergency or major disaster (as those terms are 

defined in section 102 of the Robert T. Stafford Disaster Relief 

and Emergency Assistance Act (42 U.S.C. 5122)).” 

(d) 	 Report – Not later than 270 days after the date of enactment of this 

Act, the Administrator shall submit to the Committee on Homeland 

Security and Governmental Affairs and the Committee on the 

Judiciary of the Senate and the Committee on Transportation and 

Infrastructure and the Committee on the Judiciary of the House 

of Representatives a report describing in detail the status of the 

Child Locator Center, including funding issues and any difficulties 

or issues in establishing the Center or completing the cooperative 

agreements described in subsection (b)(3)(K). 

Sec..689c..National.Emergency.Family.Registry.and.Locator.System 

(a)		 Definitions – In this section – 

(1)		 the term “displaced individual” means an individual displaced 

by an emergency or major disaster; and 

(2)		 the term “National Emergency Family Registry and Locator 

System” means the National Emergency Family Registry and 

Locator System established under subsection (b). 

(b)		 Establishment – Not later than 180 days after the date of 

enactment of this Act, the Administrator shall establish a National 

Emergency Family Registry and Locator System to help reunify 

families separated after an emergency or major disaster. 

(c)		 Operation of System – The National Emergency Family Registry 

and Locator System shall – 

(1)		 allow a displaced adult (including medical patients) to voluntarily 

register (and allow an adult that is the parent or guardian of a 

displaced child to register such child), by submitting personal 

information to be entered into a database (such as the name, 

current location of residence, and any other relevant information 

that could be used by others seeking to locate that individual); 

(2)		 ensure that information submitted under paragraph (1) is 

accessible to those individuals named by a displaced individual 

and to those law enforcement officials; 

(3)		 be accessible through the Internet and through a toll-free 

number, to receive reports of displaced individuals; and 

A- Appendix A: Stafford Act P.L. 93-288 
(4)		 include a means of referring displaced children to the National 

Emergency Child Locator Center established under section 

689b. 

(d)		 Publication of Information – Not later than 210 days after the 

date of enactment of this Act, the Administrator shall establish a 

mechanism to inform the public about the National Emergency 

Family Registry and Locator System and its potential usefulness 

for assisting to reunite displaced individuals with their families. 

(e)		 Coordination – Not later than 90 days after the date of enactment 

of this Act, the Administrator shall enter a memorandum of 

understanding with the Department of Justice, the National Center 

for Missing and Exploited Children, the Department of Health and 

Human Services, and the American Red Cross and other relevant 

private organizations that will enhance the sharing of information 

to facilitate reuniting displaced individuals (including medical 

patients) with families. 

(f)		 Report – Not later than 270 days after the date of enactment 

of this Act, the Administrator shall submit to the appropriate 

committees of Congress a report describing in detail the status 

of the National Emergency Family Registry and Locator System, 

including any difficulties or issues in establishing the System, 

including funding issues. 

Sec..689i..Individuals.and.Households.Pilot.Program 

(a)		 Pilot Program – 

(1)		 In general – The President, acting through the Administrator, 

in coordination with State, local, and tribal governments, shall 

establish and conduct a pilot program. The pilot program shall 

be designed to make better use of existing rental housing, 

located in areas covered by a major disaster declaration, in 

order to provide timely and cost-effective temporary housing 

assistance to individuals and households eligible for assistance 

under section 408 of the Robert T. Stafford Disaster Relief and 

Emergency Assistance Act (42 U.S.C. 5174) where alternative 

housing options are less available or cost-effective. 

(2)		 Administration – 

(A) In General – For the purposes of the pilot program under this 

section, the Administrator may – 

Appendix A: Stafford Act P.L. 93-288 A-
(i)		 enter into lease agreements with owners of multifamily rental property located in areas covered by a 

major disaster declaration to house individuals and 

households eligible for assistance under section 408 of 

the Robert T. Stafford Disaster Relief and Emergency 

Assistance Act (42 U.S.C. 5174); 

(ii)		 make improvements to properties under such lease 

agreements; 

(iii)		 use the pilot program where the program is cost 

effective in that the cost to the Government for the 

lease agreements is in proportion to the savings to the 

Government by not providing alternative housing; and 

(iv)		 limit repairs to those required to ensure that the housing 

units shall meet Federal housing quality standards. 

(B) Improvements to leased properties – Under the terms 

of any lease agreement for a property described under 

subparagraph (A)(ii), the value of the contribution of the 

Agency to such improvements – 

(i) 	 shall be deducted from the value of the lease 

agreement; and 

(ii)		 may not exceed the value of the lease agreement. 

(3)		 Consultation – In administering the pilot program under this 

section, the Administrator may consult with State, local, and 

tribal governments. 

(4)		 Report – 

(A)	 In General – Not later than March 31, 2009, the 

Administrator shall submit to the appropriate committees 

of Congress a report regarding the effectiveness of the pilot 

program. 

(B)		 Contents – The Administrator shall include in the report – 

(i)		 an assessment of the effectiveness of the pilot program 

under this section, including an assessment of costsavings to the Federal Government and any benefits to 

individuals and households eligible for assistance under 

section 408 of the Robert T. Stafford Disaster Relief and 

Emergency Assistance Act (42 U.S.C. 5174) under the 

pilot program; 

(ii)		 findings and conclusions of the Administrator with 

respect to the pilot program; 

A- Appendix A: Stafford Act P.L. 93-288 
(iii)		 an assessment of additional authorities needed to aid 

the Agency in its mission of providing disaster housing 

assistance to individuals and households eligible for 

assistance under section 408 of the Robert T. Stafford 

Disaster Relief and Emergency Assistance Act (42 

U.S.C. 5174), either under the pilot program under this 

section or other potential housing programs; and 

(iv)		 any recommendations of the Administrator for 

additional authority to continue or make permanent the 

pilot program. 

(b)		 Pilot Program Project Approval – The Administrator shall not 

approve a project under the pilot program after December 31, 

2008. 

Sec..689j..Public.Assistance.Pilot.Program 

(a)		 Pilot Program – 

(1)		 In General – The President, acting through the Administrator, 

and in coordination with State and local governments, shall 

establish and conduct a pilot program to – 

(A)		 reduce the costs of the Federal Government of providing 

assistance to States and local governments under sections 

403(a)(3)(A), 406, and 407 of the Robert T. Stafford Disaster 

Relief and Emergency Assistance Act (42 U.S.C. 1570b(a)(3), 

5172, 5172); 

(B)		 increase flexibility in the administration of sections 

403(a)(3)(A), 406, and 407 of that Act; and 

(C) expedite the provision of assistance to States and local 

governments provided under sections 403(a)(3)(A), 406, and 

407 of that Act. 

(2)		 Participation – Only States and local governments that elect 

to participate in the pilot program may participate in the pilot 

program for a particular project. 

(3)		 Innovative Administration – 

(A) In General – For purposes of the pilot program, the 

Administrator shall establish new procedures to administer 

assistance provided under the sections referred to in 

paragraph (1). 

Appendix A: Stafford Act P.L. 93-288 A-
(B)		 New Procedures – The new procedures established under 

subparagraph (A) may include 1 or more of the following: 

(i)		 Notwithstanding section 406(c)(1)(A) of the Robert T. 

Stafford Disaster Relief and Emergency Assistance 

Act (42 U.S.C. 1571(c)(1)(A)), providing an option for a 

State or local government to elect to receive an in-lieu 

contribution in an amount equal to 90 percent of the 

Federal share of the Federal estimate of the cost of 

repair, restoration, reconstruction, or replacement of a 

public facility owned or controlled by the State or local 

government and of management expenses. 

(ii)		 Making grants on the basis of estimates agreed to by 

the local government (or where no local government 

is involved, by the State government) and the 

Administrator to provide financial incentives and 

disincentives for the local government (or where no 

local government is involved, for the State government) 

for the timely or cost effective completion of projects 

under section 403(a)(3)(A), 406, and 407 of that Act. 

(iii)		 Increasing the Federal share for removal of debris and 

wreckage for States and local governments that have a 

debris management plan approved by the Administrator 

and have pre-qualified 1 or more debris and wreckage 

removal contractors before the date of declaration of 

the major disaster. 

(iv)		 Using a sliding scale for the Federal share for removal 

of debris and wreckage based on the time it takes to 

complete debris and wreckage removal. 

(v)		 Using a financial incentive to recycle debris. 

(vi)		 Reimbursing base wages for employees and extra 

hires of a State or local government involved in or 

administering debris and wreckage removal. 

(4)		 Waiver – The Administrator may waive such regulations or rules 

applicable to the provisions of assistance under the sections 

referred to in paragraph (1) as the Administrator determines are 

necessary to carry out the pilot program under this section. 

(b) Report – 

(1)		 In General – Not later than March 31, 2009, the Administrator 

shall submit to the appropriate committees of Congress a report 

regarding the effectiveness of the pilot program under this 

section. 

A- Appendix A: Stafford Act P.L. 93-288 
(2)		 Contents – The report submitted under paragraph (1) shall 

include – 

(A) An assessment by the Administrator of any administrative or 

financial benefits of the pilot program; 

(B) An assessment by the Administrator of the effect, including 

any savings in time and cost, of the pilot program; 

(C) Any identified legal or other obstacles to increasing the 

amount of debris recycled after a major disaster; 

(D) Any other findings and conclusions of the Administrator with 

respect to the pilot program; and 

(E)		 Any recommendations of the Administrator for additional 

authority to continue or make permanent the pilot program. 

(c)		 Deadline for Initiation of Implementation – The Administrator shall 

initiate implementation of the pilot program under this section not 

later than 90 days after the date of enactment of the Act. 

(d)		 Pilot Program Project Duration – The Administrator may not 

approve a project under the pilot program under this section after 

December 31, 2008. 

Sec..689k..Disposal.of.unused.Temporary.Housing.units 

(a) In General – Notwithstanding section 408(d)(2)(B) of the Robert 

T. Stafford Disaster Relief and Emergency Assistance Act (42 

U.S.C. 5174(d)(2)(B)), if the Administrator authorizes the disposal 

of an unused temporary housing unit that is owned by the 

Agency on the date of enactment of this Act and is not used to 

house individuals or households under section 408 of the Robert 

T. Stafford Disaster Relief and Emergency Assistance Act (42 

U.S.C. 5174) after that date, such unit shall be disposed of under 

subchapter III of chapter 5 of subtitle I of title 40, United States 

Code. 

(b)		 Tribal Governments – Housing units described in subsection (a) 

shall be disposed of in coordination with the Department of the 

Interior or other appropriate agencies in order to transfer such 

units to tribal governments if appropriate. 

Appendix A: Stafford Act P.L. 93-288 A-
EMERGENCy.SuPPLEMENTAL.APPROPRIATIONS.ACT. 

FOR.DEFENSE,.THE.GLOBAL.WAR.ON.TERROR,.AND. 

HuRRICANE.RECOvERy,.2006,.PuB..L..NO..109-234,.120. 

STAT..418.(2006),.SIGNED.ON.juNE.15,.2006... 

Sec..2401. 

The Federal Emergency Management Agency may provide funds to 

a State or local government or, as necessary, assume an existing 

agreement from such unit of government, to pay for utility costs resulting 

from the provision of temporary housing units to evacuees from Hurricane 

Katrina and other hurricanes of the 2005 season if the State or local 

government has previously arranged to pay for such utilities on behalf 

of the evacuees for the term of any leases, not to exceed 12 months, 

contracted by or prior to February 7, 2006: Provided, That the Federal 

share of the costs eligible to be paid shall be 100 percent. 

Sec..2403. 

Notwithstanding any other provision of law, the Secretary of Homeland 

Security shall consider eligible under the Federal Emergency Management 

Agency Individual Assistance Program the costs sufficient for alternative 

housing pilot programs in the areas hardest hit by Hurricane Katrina and 

other hurricanes of the 2005 season. 

DEPARTMENT.OF.HOMELAND.SECuRITy. 

APPROPRIATIONS.ACT,.2006,.PuB..L..NO..109-90,.119. 

STAT..2064.(2005),.SIGNED.ON.OCTOBER.18,.2005. 

Sec..508.. 

None of the funds in this Act may be used to make a grant allocation, 

discretionary grant award, discretionary contract award, or to issue a 

letter of intent totaling in excess of $1,000,000, or to announce publicly 

the intention to make such an award, unless the Secretary of Homeland 

Security notifies the Committees on Appropriations of the Senate and the 

House of Representatives at least 3 full business days in advance: 

Provided, That no notification shall involve funds that are not available for 

obligation. 

A-00 Appendix A: Stafford Act P.L. 93-288 
TITLE.v.–.(NATIONAL.EMERGENCy.MANAGEMENT). 

OF.THE.HOMELAND.SECuRITy.ACT.OF.2002. 

6.u.S.C..311..ET.SEq. 

(As amended by the Department of Homeland Security Appropriations 

Act, 2007, Pub. L. No. 109-295) 

Sec..501..Definitions 

In this title— 

(1) 	 the term ‘Administrator’ means the Administrator of the Agency; 

(2) 	 the term ‘Agency’ means the Federal Emergency Management 

Agency; 

(3) 	 the term ‘catastrophic incident’ means any natural disaster, act of 

terrorism, or other man-made disaster that results in extraordinary 

levels of casualties or damage or disruption severely affecting 

the population (including mass evacuations), infrastructure, 

environment, economy, national morale, or government functions 

in an area; 

(4) 	 the term ‘Federal coordinating officer’ means a Federal 

coordinating officer as described in section 302 of the Robert T. 

Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 

5143); 

(5) 	 the term ‘interoperable’ has the meaning given the term 

`interoperable communications’ under section 7303(g)(1) of the 

Intelligence Reform and Terrorism Prevention Act of 2004 (6 U.S.C. 

194(g)(1)); 

(6) 	 the term ‘National Incident Management System’ means a 

system to enable effective, efficient, and collaborative incident 

management; 

(7) 	 the term ‘National Response Plan’ means the National Response 

Plan or any successor plan prepared under section 502(a)(6); 

(8)		 the term ‘Regional Administrator’ means a Regional Administrator 

appointed under section 507; 

(9)		 the term ‘Regional Office’ means a Regional Office established 

under section 507; 

Appendix A: Stafford Act P.L. 93-288 A-0
(10) the term ‘surge capacity’ means the ability to rapidly and 

substantially increase the provision of search and rescue 

capabilities, food, water, medicine, shelter and housing, medical 

care, evacuation capacity, staffing (including disaster assistance 

employees), and other resources necessary to save lives and 

protect property during a catastrophic incident; and 

(11) the term ‘tribal government’ means the government of any entity 

described in section 2(10)(B). 

Sec..502..Definition 

In this subchapter, the term “Nuclear Incident Response Team” means a 

resource that includes— 

(1) 	 those entities of the Department of Energy that perform nuclear 

or radiological emergency support functions (including accident 

response, search response, advisory, and technical operations 

functions), radiation exposure functions at the medical assistance 

facility known as the Radiation Emergency Assistance Center/ 

Training Site (REAC/TS), radiological assistance functions, and 

related functions; and 

(2) 	 those entities of the Environmental Protection Agency that 

perform such support functions (including radiological emergency 

response functions) and related functions. 

Sec..503..Federal.Emergency.Management.Agency 

(a)		 In General— There is in the Department the Federal Emergency 

Management Agency, headed by an Administrator. 

(b)		 Mission— 

(1)		 PRIMARY MISSION— The primary mission of the Agency is 

to reduce the loss of life and property and protect the Nation 

from all hazards, including natural disasters, acts of terrorism, 

and other man-made disasters, by leading and supporting the 

Nation in a risk-based, comprehensive emergency management 

system of preparedness, protection, response, recovery, and 

mitigation. 

(2)		 SPECIFIC ACTIVITIES— In support of the primary mission of 

the Agency, the Administrator shall— 

(A)		 lead the Nation’s efforts to prepare for, protect against, 

respond to, recover from, and mitigate against the risk of 

A-0 Appendix A: Stafford Act P.L. 93-288 
natural disasters, acts of terrorism, and other man-made 

disasters, including catastrophic incidents; 

(B) partner with State, local, and tribal governments and 

emergency response providers, with other Federal 

agencies, with the private sector, and with nongovernmental 

organizations to build a national system of emergency 

management that can effectively and efficiently utilize the 

full measure of the Nation’s resources to respond to natural 

disasters, acts of terrorism, and other man-made disasters, 

including catastrophic incidents; 

(C) develop a Federal response capability that, when necessary 

and appropriate, can act effectively and rapidly to deliver 

assistance essential to saving lives or protecting or 

preserving property or public health and safety in a natural 

disaster, act of terrorism, or other man-made disaster; 

(D) integrate the Agency’s emergency preparedness, protection, 

response, recovery, and mitigation responsibilities to 

confront effectively the challenges of a natural disaster, act 

of terrorism, or other man-made disaster; 

(E)		 develop and maintain robust Regional Offices that will 

work with State, local, and tribal governments, emergency 

response providers, and other appropriate entities to identify 

and address regional priorities; 

(F)		 under the leadership of the Secretary, coordinate with the 

Commandant of the Coast Guard, the Director of Customs 

and Border Protection, the Director of Immigration and 

Customs Enforcement, the National Operations Center, 

and other agencies and offices in the Department to take 

full advantage of the substantial range of resources in the 

Department; 

(G) provide funding, training, exercises, technical assistance, 

planning, and other assistance to build tribal, local, State, 

regional, and national capabilities (including communications 

capabilities), necessary to respond to a natural disaster, act 

of terrorism, or other man-made disaster; and 

(H) develop and coordinate the implementation of a riskbased, all-hazards strategy for preparedness that builds 

those common capabilities necessary to respond to natural 

Appendix A: Stafford Act P.L. 93-288 A-0
disasters, acts of terrorism, and other man-made disasters 

while also building the unique capabilities necessary to 

respond to specific types of incidents that pose the greatest 

risk to our Nation. 

(c) 	 Administrator— 

(1)		 IN GENERAL— The Administrator shall be appointed by the 

President, by and with the advice and consent of the Senate. 

(2) 	 QUALIFICATIONS— The Administrator shall be appointed from 

among individuals who have— 

(A) a demonstrated ability in and knowledge of emergency 

management and homeland security; and 

(B) not less than 5 years of executive leadership and 

management experience in the public or private sector. 

(3) 	 REPORTING— The Administrator shall report to the Secretary, 

without being required to report through any other official of the 

Department. 

(4) 	 PRINCIPAL ADVISOR ON EMERGENCY MANAGEMENT— 

(A) IN GENERAL— The Administrator is the principal advisor 

to the President, the Homeland Security Council, and the 

Secretary for all matters relating to emergency management 

in the United States. 

(B) 	 ADVICE AND RECOMMENDATIONS— 

(i) 	 IN GENERAL— In presenting advice with respect to 

any matter to the President, the Homeland Security 

Council, or the Secretary, the Administrator shall, 

as the Administrator considers appropriate, inform 

the President, the Homeland Security Council, or 

the Secretary, as the case may be, of the range of 

emergency preparedness, protection, response, 

recovery, and mitigation options with respect to that 

matter. 

(ii) 	 ADVICE ON REQUEST— The Administrator, as the 

principal advisor on emergency management, shall 

provide advice to the President, the Homeland Security 

Council, or the Secretary on a particular matter when 

the President, the Homeland Security Council, or the 

Secretary requests such advice. 

A-0 Appendix A: Stafford Act P.L. 93-288 
(iii) 	 RECOMMENDATIONS TO CONGRESS— After 

informing the Secretary, the Administrator may make 

such recommendations to Congress relating to 

emergency management as the Administrator considers 

appropriate. 

(5) 	 CABINET STATUS— 

(A) 	 IN GENERAL— The President may designate the 

Administrator to serve as a member of the Cabinet in the 

event of natural disasters, acts of terrorism, or other manmade disasters. 

(B) RETENTION OF AUTHORITY— Nothing in this paragraph 

shall be construed as affecting the authority of the Secretary 

under this Act. 

Sec..504..Authority.and.Responsibilities 

(a) 	 In General The Administrator shall provide Federal leadership 

necessary to prepare for, protect against, respond to, recover 

from, or mitigate against a natural disaster, act of terrorism, or 

other man-made disaster, including— 

(1) 	 helping to ensure the effectiveness of emergency response 

providers to terrorist attacks, major disasters, and other 

emergencies; 

(2) 	 with respect to the Nuclear Incident Response Team (regardless 

of whether it is operating as an organizational unit of the 

Department pursuant to this subchapter)— 

(A) establishing standards and certifying when those standards 

have been met; 

(B) conducting joint and other exercises and training and 

evaluating performance; and 

(C) 	 providing funds to the Department of Energy and the 

Environmental Protection Agency, as appropriate, for 

homeland security planning, exercises and training, and 

equipment; 

(3) 	 providing the Federal Government’s response to terrorist 

attacks and major disasters, including— 

(A) managing such response; 

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(B) 	 directing the Domestic Emergency Support Team, the 

National Disaster Medical System, and (when operating as 

an organizational unit of the Department pursuant to this 

subchapter) the Nuclear Incident Response Team; 

(C) overseeing the Metropolitan Medical Response System; and 

(D) 	 coordinating other Federal response resources, including 

requiring deployment of the Strategic National Stockpile, in 

the event of a terrorist attack or major disaster; 

(4) 	 aiding the recovery from terrorist attacks and major disasters; 

(5) 	 building a comprehensive national incident management system 

with Federal, State, and local government personnel, agencies, 

and authorities, to respond to such attacks and disasters; 

(6) 	 consolidating existing Federal Government emergency 

response plans into a single, coordinated national response 

plan; 

(7) 	 helping ensure the acquisition of operable and interoperable 

communications capabilities by Federal, State, local, and tribal 

governments and emergency response providers; 

(8) 	 assisting the President in carrying out the functions under the 

Robert T. Stafford Disaster Relief and Emergency Assistance 

Act (42 U.S.C. 5121 et seq.) and carrying out all functions and 

authorities given to the Administrator under that Act; 

(9) 	 carrying out the mission of the Agency to reduce the loss of life 

and property and protect the Nation from all hazards by leading 

and supporting the Nation in a risk-based, comprehensive 

emergency management system of— 

(A) mitigation, by taking sustained actions to reduce or eliminate 

long-term risks to people and property from hazards and 

their effects; 

(B) 	 preparedness, by planning, training, and building the 

emergency management profession to prepare effectively 

for, mitigate against, respond to, and recover from any 

hazard; 

(C) 	 response, by conducting emergency operations to save lives 

and property through positioning emergency equipment, 

personnel, and supplies, through evacuating potential 

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victims, through providing food, water, shelter, and medical 

care to those in need, and through restoring critical public 

services; and 

(D) 	 recovery, by rebuilding communities so individuals, 

businesses, and governments can function on their own, 

return to normal life, and protect against future hazards; 

(10) increasing efficiencies, by coordinating efforts relating to 

preparedness, protection, response, recovery, and mitigation; 

(11) helping to ensure the effectiveness of emergency response 

providers in responding to a natural disaster, act of terrorism, or 

other man-made disaster; 

(12) supervising grant programs administered by the Agency; 

(13) administering and ensuring the implementation of the National 

Response Plan, including coordinating and ensuring the 

readiness of each emergency support function under the 

National Response Plan; 

(14) coordinating with the National Advisory Council established 

under section 508; 

(15) preparing and implementing the plans and programs of the 

Federal Government for— 

(A) continuity of operations; 

(B) continuity of government; and 

(C) continuity of plans; 

(16) minimizing, to the extent practicable, overlapping planning and 

reporting requirements applicable to State, local, and tribal 

governments and the private sector; 

(17) maintaining and operating within the Agency the National 

Response Coordination Center or its successor; 

(18) developing a national emergency management system that 

is capable of preparing for, protecting against, responding to, 

recovering from, and mitigating against catastrophic incidents; 

(19) assisting the President in carrying out the functions under the 

national preparedness goal and the national preparedness 

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system and carrying out all functions and authorities of the 

Administrator under the national preparedness System; 

(20) carrying out all authorities of the Federal Emergency 

Management Agency and the Directorate of Preparedness of 

the Department as transferred under section 505; and 

(21) otherwise carrying out the mission of the Agency as described 

in section 503(b). 

(b) 	 All-Hazards Approach— In carrying out the responsibilities under 

this section, the Administrator shall coordinate the implementation 

of a risk-based, all-hazards strategy that builds those common 

capabilities necessary to prepare for, protect against, respond 

to, recover from, or mitigate against natural disasters, acts of 

terrorism, and other man-made disasters, while also building 

the unique capabilities necessary to prepare for, protect against, 

respond to, recover from, or mitigate against the risks of specific 

types of incidents that pose the greatest risk to the Nation. 

Sec..505..Functions.Transferred 

(a)		 In General— Except as provided in subsection (b), there are 
 

transferred to the Agency the following:
 


(1)		 All functions of the Federal Emergency Management Agency, 

including existing responsibilities for emergency alert systems 

and continuity of operations and continuity of government plans 

and programs as constituted on June 1, 2006, including all of 

its personnel, assets, components, authorities, grant programs, 

and liabilities, and including the functions of the Under 

Secretary for Federal Emergency Management relating thereto. 

(2)		 The Directorate of Preparedness, as constituted on June 

1, 2006, including all of its functions, personnel, assets, 

components, authorities, grant programs, and liabilities, and 

including the functions of the Under Secretary for Preparedness 

relating thereto. 

(b)		 Exceptions— The following within the Preparedness Directorate 

shall not be transferred: 

(1)		 The Office of Infrastructure Protection. 

(2)		 The National Communications System. 

(3)		 The National Cybersecurity Division. 

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(4)		 The Office of the Chief Medical Officer. 

(5)		 The functions, personnel, assets, components, authorities, and 

liabilities of each component described under paragraphs (1) 

through (4). 

Sec..506..Preserving.the.Federal.Emergency.Management.Agency 

(a) 	 Distinct Entity— The Agency shall be maintained as a distinct 

entity within the Department. 

(b) 	 Reorganization— Section 872 shall not apply to the Agency, 

including any function or organizational unit of the Agency. 

(c)		 Prohibition on Changes to Missions— 

(1)		 IN GENERAL— The Secretary may not substantially or 

significantly reduce the authorities, responsibilities, or functions 

of the Agency or the capability of the Agency to perform those 

missions, authorities, responsibilities, except as otherwise 

specifically provided in an Act enacted after the date of 

enactment of the Post-Katrina Emergency Management Reform 

Act of 2006. 

(2)		 CERTAIN TRANSFERS PROHIBITED— No asset, function, or 

mission of the Agency may be diverted to the principal and 

continuing use of any other organization, unit, or entity of the 

Department, except for details or assignments that do not 

reduce the capability of the Agency to perform its missions. 

(d) 	 Reprogramming and Transfer of Funds— In reprogramming or 

transferring funds, the Secretary shall comply with any applicable 

provisions of any Act making appropriations for the Department 

for fiscal year 2007, or any succeeding fiscal year, relating to the 

reprogramming or transfer of funds. 

Sec..507..Regional.Offices 

(a)		 In General— There are in the Agency 10 regional offices, as 
 

identified by the Administrator.
 


(b)		 Management of Regional Offices— 

(1)		 REGIONAL ADMINISTRATOR— Each Regional Office shall be 

headed by a Regional Administrator who shall be appointed by 

the Administrator, after consulting with State, local, and tribal 

government officials in the region. Each Regional Administrator 

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shall report directly to the Administrator and be in the Senior 

Executive Service. 

(2) 	 QUALIFICATIONS— 

(A) 	 IN GENERAL— Each Regional Administrator shall be 

appointed from among individuals who have a demonstrated 

ability in and knowledge of emergency management and 

homeland security. 

(B) 	 CONSIDERATIONS— In selecting a Regional Administrator 

for a Regional Office, the Administrator shall consider the 

familiarity of an individual with the geographical area and 

demographic characteristics of the population served by 

such Regional Office. 

(c)		 Responsibilities— 

(1)		 IN GENERAL— The Regional Administrator shall work 

in partnership with State, local, and tribal governments, 

emergency managers, emergency response providers, 

medical providers, the private sector, nongovernmental 

organizations, multijurisdictional councils of governments, 

and regional planning commissions and organizations in the 

geographical area served by the Regional Office to carry out the 

responsibilities of a Regional Administrator under this section. 

(2)		 RESPONSIBILITIES— The responsibilities of a Regional 
 

Administrator include—



(A) ensuring effective, coordinated, and integrated regional 

preparedness, protection, response, recovery, and mitigation 

activities and programs for natural disasters, acts of 

terrorism, and other man-made disasters (including planning, 

training, exercises, and professional development); 

(B) assisting in the development of regional capabilities needed 

for a national catastrophic response system; 

(C) 	 coordinating the establishment of effective regional operable 

and interoperable emergency communications capabilities; 

(D) staffing and overseeing 1 or more strike teams within the 

region under subsection (f), to serve as the focal point of 

the Federal Government’s initial response efforts for natural 

disasters, acts of terrorism, and other man-made disasters 

within that region, and otherwise building Federal response 

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capabilities to respond to natural disasters, acts of terrorism, 

and other man-made disasters within that region; 

(E) 	 designating an individual responsible for the development 

of strategic and operational regional plans in support of the 

National Response Plan; 

(F) 	 fostering the development of mutual aid and other 

cooperative agreements; 

(G) identifying critical gaps in regional capabilities to respond to 

populations with special needs; 

(H) maintaining and operating a Regional Response 
 

Coordination Center or its successor; and
 


(I) 	 performing such other duties relating to such responsibilities 

as the Administrator may require. 

(3) TRAINING AND EXERCISE REQUIREMENTS— 

(A) TRAINING— The Administrator shall require each Regional 

Administrator to undergo specific training periodically to 

complement the qualifications of the Regional Administrator. 

Such training, as appropriate, shall include training with 

respect to the National Incident Management System, 

the National Response Plan, and such other subjects as 

determined by the Administrator. 

(B) 	 EXERCISES— The Administrator shall require each Regional 

Administrator to participate as appropriate in regional and 

national exercises. 

(d)		 Area Offices— 

(1)		 IN GENERAL— There is an Area Office for the Pacific and an 

Area Office for the Caribbean, as components in the appropriate 

Regional Offices. 

(2)		 ALASKA— The Administrator shall establish an Area Office in 

Alaska, as a component in the appropriate Regional Office. 

(e)		 Regional Advisory Council— 

(1)		 ESTABLISHMENT— Each Regional Administrator shall establish 

a Regional Advisory Council. 

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(2)		 NOMINATIONS— A State, local, or tribal government located 

within the geographic area served by the Regional Office may 

nominate officials, including Adjutants General and emergency 

managers, to serve as members of the Regional Advisory 

Council for that region. 

(3) 	 RESPONSIBILITIES— Each Regional Advisory Council shall— 

(A) advise the Regional Administrator on emergency 
 

management issues specific to that region;
 


(B) identify any geographic, demographic, or other 

characteristics peculiar to any State, local, or tribal 

government within the region that might make preparedness, 

protection, response, recovery, or mitigation more 

complicated or difficult; and 

(C) advise the Regional Administrator of any weaknesses or 

deficiencies in preparedness, protection, response, recovery, 

and mitigation for any State, local, and tribal government 

within the region of which the Regional Advisory Council is 

aware. 

(f)		 Regional Office Strike Teams— 

(1) 	 IN GENERAL— In coordination with other relevant Federal 

agencies, each Regional Administrator shall oversee multiagency strike teams authorized under section 303 of the Robert 

T. Stafford Disaster Relief and Emergency Assistance Act (42 

U.S.C. 5144) that shall consist of 

(A) a designated Federal coordinating officer; 

(B) personnel trained in incident management; 

(C) public affairs, response and recovery, and communications 

support personnel; 

(D) 	 a defense coordinating officer; 

(E) 	 liaisons to other Federal agencies; 

(F) 	 such other personnel as the Administrator or Regional 

Administrator determines appropriate; and 

(G) individuals from the agencies with primary responsibility for 

each of the emergency support functions in the National 

Response Plan. 

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(2)		 OTHER DUTIES— The duties of an individual assigned to a 

Regional Office strike team from another relevant agency when 

such individual is not functioning as a member of the strike 

team shall be consistent with the emergency preparedness 

activities of the agency that employs such individual. 

(3)		 LOCATION OF MEMBERS— The members of each Regional 

Office strike team, including representatives from agencies 

other than the Department, shall be based primarily within the 

region that corresponds to that strike team. 

(4)		 COORDINATION— Each Regional Office strike team shall 

coordinate the training and exercises of that strike team with 

the State, local, and tribal governments and private sector and 

nongovernmental entities which the strike team shall support 

when a natural disaster, act of terrorism, or other man-made 

disaster occurs. 

(5)		 PREPAREDNESS— Each Regional Office strike team shall be 

trained as a unit on a regular basis and equipped and staffed 

to be well prepared to respond to natural disasters, acts of 

terrorism, and other man-made disasters, including catastrophic 

incidents. 

(6)		 AUTHORITIES— If the Administrator determines that statutory 

authority is inadequate for the preparedness and deployment of 

individuals in strike teams under this subsection, the Administrator 

shall report to Congress regarding the additional statutory 

authorities that the Administrator determines are necessary. 

Sec..508..National.Advisory.Council 

(a)		 Establishment— Not later than 60 days after the date of enactment 

of the Post-Katrina Emergency Management Reform Act of 2006, 

the Secretary shall establish an advisory body under section 

871(a) to ensure effective and ongoing coordination of Federal 

preparedness, protection, response, recovery, and mitigation for 

natural disasters, acts of terrorism, and other man-made disasters, 

to be known as the National Advisory Council. 

(b)		 Responsibilities— The National Advisory Council shall advise 

the Administrator on all aspects of emergency management. 

The National Advisory Council shall incorporate State, local, and 

tribal government and private sector input in the development 

and revision of the national preparedness goal, the national 

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preparedness system, the National Incident Management 

System, the National Response Plan, and other related plans and 

strategies. 

(c)		 Membership— 

(1) 	 IN GENERAL— The members of the National Advisory Council 

shall be appointed by the Administrator, and shall, to the extent 

practicable, represent a geographic (including urban and rural) 

and substantive cross section of officials, emergency managers, 

and emergency response providers from State, local, and 

tribal governments, the private sector, and nongovernmental 

organizations, including as appropriate 

(A) 	 members selected from the emergency management field 

and emergency response providers, including fire service, 

law enforcement, hazardous materials response, emergency 

medical services, and emergency management personnel, or 

organizations representing such individuals; 

(B) health scientists, emergency and inpatient medical 

providers, and public health professionals; 

(C) experts from Federal, State, local, and tribal governments, 

and the private sector, representing standards-setting and 

accrediting organizations, including representatives from 

the voluntary consensus codes and standards development 

community, particularly those with expertise in the 

emergency preparedness and response field; 

(D) State, local, and tribal government officials with expertise 

in preparedness, protection, response, recovery, and 

mitigation, including Adjutants General; 

(E) 	 elected State, local, and tribal government executives; 

(F) 	 experts in public and private sector infrastructure protection, 

cybersecurity, and communications; 

(G) 	 representatives of individuals with disabilities and other 

populations with special needs; and 

(H) 	 such other individuals as the Administrator determines to be 

appropriate. 

(2)		 COORDINATION WITH THE DEPARTMENTS OF HEALTH AND 

HUMAN SERVICES AND TRANSPORTATION— In the selection 

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of members of the National Advisory Council who are health or 

emergency medical services professionals, the Administrator 

shall work with the Secretary of Health and Human Services 

and the Secretary of Transportation. 

(3)		 EX OFFICIO MEMBERS— The Administrator shall designate 

1 or more officers of the Federal Government to serve as ex 

officio members of the National Advisory Council. 

(4)		 TERMS OF OFFICE— 

(A) IN GENERAL— Except as provided in subparagraph (B), 

the term of office of each member of the National Advisory 

Council shall be 3 years. 

(B) INITIAL APPOINTMENTS— Of the members initially 

appointed to the National Advisory Council 

(i) 	 one-third shall be appointed for a term of 1 year; and 

(ii) 	 one-third shall be appointed for a term of 2 years. 

(d)		 Applicability of Federal Advisory Committee Act— 

(1)		 IN GENERAL— Notwithstanding section 871(a) and subject to 

paragraph (2), the Federal Advisory Committee Act (5 U.S.C. 

App.), including subsections (a), (b), and (d) of section 10 of 

such Act, and section 552b(c) of title 5, United States Code, 

shall apply to the National Advisory Council. 

(2) 	 TERMINATION— Section 14(a)(2) of the Federal Advisory 

Committee Act (5 U.S.C. App.) shall not apply to the National 

Advisory Council. 

Sec..509..National.Integration.Center 

(a)		 In General— There is established in the Agency a National 
 

Integration Center.
 


(b)		 Responsibilities— 

(1)		 IN GENERAL— The Administrator, through the National 

Integration Center, and in consultation with other Federal 

departments and agencies and the National Advisory Council, 

shall ensure ongoing management and maintenance of the 

National Incident Management System, the National Response 

Plan, and any successor to such system or plan. 

Appendix A: Stafford Act P.L. 93-288 A-
(2)		 SPECIFIC RESPONSIBILITIES— The National Integration 

Center shall periodically review, and revise as appropriate, 

the National Incident Management System and the National 

Response Plan, including— 

(A) establishing, in consultation with the Director of the 

Corporation for National and Community Service, a process 

to better use volunteers and donations; 

(B) improving the use of Federal, State, local, and tribal 

resources and ensuring the effective use of emergency 

response providers at emergency scenes; and 

(C) 	 revising the Catastrophic Incident Annex, finalizing 

and releasing the Catastrophic Incident Supplement 

to the National Response Plan, and ensuring that both 

effectively address response requirements in the event of a 

catastrophic incident. 

(c)		 Incident Management— 

(1) 	 IN GENERAL— 

(A) 	 NATIONAL RESPONSE PLAN— The Secretary, acting 

through the Administrator, shall ensure that the National 

Response Plan provides for a clear chain of command to 

lead and coordinate the Federal response to any natural 

disaster, act of terrorism, or other man-made disaster. 

(B) 	 ADMINISTRATOR— The chain of the command specified in 

the National Response Plan shall 

(i) 	 provide for a role for the Administrator consistent with 

the role of the Administrator as the principal emergency 

management advisor to the President, the Homeland 

Security Council, and the Secretary under section 

503(c)(4) and the responsibility of the Administrator 

under the Post-Katrina Emergency Management Reform 

Act of 2006, and the amendments made by that Act, 

relating to natural disasters, acts of terrorism, and other 

man-made disasters; and 

(ii) 	 provide for a role for the Federal Coordinating Officer 

consistent with the responsibilities under section 302(b) 

of the Robert T. Stafford Disaster Relief and Emergency 

Assistance Act (42 U.S.C. 5143(b)). 

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(2)		 PRINCIPAL FEDERAL OFFICIAL— The Principal Federal Official 

(or the successor thereto) shall not— 

(A) 	 direct or replace the incident command structure established 

at the incident; or 

(B) 	 have directive authority over the Senior Federal Law 

Enforcement Official, Federal Coordinating Officer, or other 

Federal and State officials. 

Sec..510..Credentialing.and.Typing 

The Administrator shall enter into a memorandum of understanding with 

the administrators of the Emergency Management Assistance Compact, 

State, local, and tribal governments, and organizations that represent 

emergency response providers, to collaborate on developing standards 

for deployment capabilities, including credentialing of personnel and 

typing of resources likely needed to respond to natural disasters, acts of 

terrorism, and other man-made disasters. 

Sec..511..The.National.Infrastructure.Simulation.and.Analysis. 

Center 

(a)		 Definition— In this section, the term ‘National Infrastructure 

Simulation and Analysis Center’ means the National Infrastructure 

Simulation and Analysis Center established under section 1016(d) 

of the USA PATRIOT Act (42 U.S.C. 5195c(d)). 

(b)		 Authority— 

(1) 	 IN GENERAL— There is in the Department the National 

Infrastructure Simulation and Analysis Center which shall 

serve as a source of national expertise to address critical 

infrastructure protection and continuity through support for 

activities related to 

(A) 	 counterterrorism, threat assessment, and risk mitigation; and 

(B) 	 a natural disaster, act of terrorism, or other man-made 

disaster. 

(2) 	 INFRASTRUCTURE MODELING— 

(A) 	 PARTICULAR SUPPORT— The support provided under 

paragraph (1) shall include modeling, simulation, and 

analysis of the systems and assets comprising critical 

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infrastructure, in order to enhance preparedness, protection, 

response, recovery, and mitigation activities. 

(B) 	 RELATIONSHIP WITH OTHER AGENCIES— Each Federal 

agency and department with critical infrastructure 

responsibilities under Homeland Security Presidential 

Directive 7, or any successor to such directive, shall 

establish a formal relationship, including an agreement 

regarding information sharing, between the elements of 

such agency or department and the National Infrastructure 

Simulation and Analysis Center, through the Department. 

(C) 	 PURPOSE— 

(i) 	 IN GENERAL— The purpose of the relationship under 

subparagraph (B) shall be to permit each Federal 

agency and department described in subparagraph 

(B) to take full advantage of the capabilities of the 

National Infrastructure Simulation and Analysis Center 

(particularly vulnerability and consequence analysis), 

consistent with its work load capacity and priorities, for 

real-time response to reported and projected natural 

disasters, acts of terrorism, and other man-made 

disasters. 

(ii) 	 RECIPIENT OF CERTAIN SUPPORT— Modeling, 

simulation, and analysis provided under this subsection 

shall be provided to relevant Federal agencies 

and departments, including Federal agencies and 

departments with critical infrastructure responsibilities 

under Homeland Security Presidential Directive 7, or 

any successor to such directive. 

Sec..512..Evacuation.Plans.and.Exercises 

(a) 	 In General— Notwithstanding any other provision of law, and 

subject to subsection (d), grants made to States or local or tribal 

governments by the Department through the State Homeland 

Security Grant Program or the Urban Area Security Initiative may 

be used to— 

(1)		 establish programs for the development and maintenance of 

mass evacuation plans under subsection (b) in the event of a 

natural disaster, act of terrorism, or other man-made disaster; 

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(2)		 prepare for the execution of such plans, including the 
 

development of evacuation routes and the purchase and 
 

stockpiling of necessary supplies and shelters; and



(3)		 conduct exercises of such plans. 

(b)		 Plan Development— In developing the mass evacuation plans 

authorized under subsection (a), each State, local, or tribal 

government shall, to the maximum extent practicable— 

(1)		 establish incident command and decision making processes; 

(2)		 ensure that State, local, and tribal government plans, including 

evacuation routes, are coordinated and integrated; 

(3)		 identify primary and alternative evacuation routes and methods 

to increase evacuation capabilities along such routes such as 

conversion of two-way traffic to one-way evacuation routes; 

(4)		 identify evacuation transportation modes and capabilities, 

including the use of mass and public transit capabilities, and 

coordinating and integrating evacuation plans for all populations 

including for those individuals located in hospitals, nursing 

homes, and other institutional living facilities; 

(5)		 develop procedures for informing the public of evacuation plans 

before and during an evacuation, including individuals-– 

(A) with disabilities or other special needs; 

(B) with limited English proficiency; or 

(C) who might otherwise have difficulty in obtaining such 

information; and 

(6) 	 identify shelter locations and capabilities.

 (c) Assistance— 

(1)		 IN GENERAL— The Administrator may establish any guidelines, 

standards, or requirements determined appropriate to 

administer this section and to ensure effective mass evacuation 

planning for State, local, and tribal areas. 

(2)		 REQUESTED ASSISTANCE— The Administrator shall make 

assistance available upon request of a State, local, or tribal 

government to assist hospitals, nursing homes, and other 

institutions that house individuals with special needs to 

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establish, maintain, and exercise mass evacuation plans that 

are coordinated and integrated into the plans developed by that 

State, local, or tribal government under this section. 

(d) 	 Multipurpose Funds— Nothing in this section may be construed 

to preclude a State, local, or tribal government from using grant 

funds in a manner that enhances preparedness for a natural or 

man-made disaster unrelated to an act of terrorism, if such use 

assists such government in building capabilities for terrorism 

preparedness. 

Sec..513..Disability.Coordinator 

(a)		 In General— After consultation with organizations representing 

individuals with disabilities, the National Council on Disabilities, 

and the Interagency Coordinating Council on Preparedness and 

Individuals with Disabilities, established under Executive Order 

No. 13347 (6 U.S.C. 312 note), the Administrator shall appoint 

a Disability Coordinator. The Disability Coordinator shall report 

directly to the Administrator, in order to ensure that the needs 

of individuals with disabilities are being properly addressed in 

emergency preparedness and disaster relief. 

(b) 	 Responsibilities— The Disability Coordinator shall be responsible 

for— 

(1) 	 providing guidance and coordination on matters related to 

individuals with disabilities in emergency planning requirements 

and relief efforts in the event of a natural disaster, act of 

terrorism, or other man-made disaster; 

(2) 	 interacting with the staff of the Agency, the National Council 

on Disabilities, the Interagency Coordinating Council on 

Preparedness and Individuals with Disabilities established 

under Executive Order No. 13347 (6 U.S.C. 312 note), other 

agencies of the Federal Government, and State, local, and tribal 

government authorities regarding the needs of individuals with 

disabilities in emergency planning requirements and relief efforts 

in the event of a natural disaster, act of terrorism, or other manmade disaster; 

(3) 	 consulting with organizations that represent the interests 

and rights of individuals with disabilities about the needs of 

individuals with disabilities in emergency planning requirements 

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and relief efforts in the event of a natural disaster, act of 

terrorism, or other man-made disaster; 

(4) 	 ensuring the coordination and dissemination of best practices 

and model evacuation plans for individuals with disabilities; 

(5) 	 ensuring the development of training materials and a curriculum 

for training of emergency response providers, State, local, 

and tribal government officials, and others on the needs of 

individuals with disabilities; 

(6) 	 promoting the accessibility of telephone hotlines and websites 

regarding emergency preparedness, evacuations, and disaster 

relief; 

(7) 	 working to ensure that video programming distributors, 

including broadcasters, cable operators, and satellite television 

services, make emergency information accessible to individuals 

with hearing and vision disabilities; 

(8) 	 ensuring the availability of accessible transportation options for 

individuals with disabilities in the event of an evacuation; 

(9) 	 providing guidance and implementing policies to ensure that the 

rights and wishes of individuals with disabilities regarding postevacuation residency and relocation are respected; 

(10) ensuring that meeting the needs of individuals with disabilities 

are included in the components of the national preparedness 

system established under section 644 of the Post-Katrina 

Emergency Management Reform Act of 2006; and 

(11) any other duties as assigned by the Administrator. 

Sec..514..Department.and.Agency.Officials 

(a) 	 Deputy Administrators— The President may appoint, by and with 

the advice and consent of the Senate, not more than 4 Deputy 

Administrators to assist the Administrator in carrying out this title. 

(b) 	 Cybersecurity and Communications— There is in the Department 

an Assistant Secretary for Cybersecurity and Communications. 

(c) 	 United States Fire Administration— The Administrator of the 

United States Fire Administration shall have a rank equivalent to 

an assistant secretary of the Department. 

Appendix A: Stafford Act P.L. 93-288 A-
Sec..515..National.Operations.Center 

(a) 	 Definition— In this section, the term `situational awareness’ 

means information gathered from a variety of sources that, when 

communicated to emergency managers and decision makers, can 

form the basis for incident management decision making. 

(b) 	 Establishment— The National Operations Center is the principal 

operations center for the Department and shall— 

(1) 	 provide situational awareness and a common operating picture 

for the entire Federal Government, and for State, local, and 

tribal governments as appropriate, in the event of a natural 

disaster, act of terrorism, or other man-made disaster; and 

(2) 	 ensure that critical terrorism and disaster-related information 

reaches government decision-makers. 

Sec..516..Chief.Medical.Officer 

(a)		 In General— There is in the Department a Chief Medical Officer, 

who shall be appointed by the President, by and with the advice 

and consent of the Senate. 

(b)		 Qualifications— The individual appointed as Chief Medical 

Officer shall possess a demonstrated ability in and knowledge of 

medicine and public health. 

(c)		 Responsibilities— The Chief Medical Officer shall have the primary 

responsibility within the Department for medical issues related to 

natural disasters, acts of terrorism, and other man-made disasters, 

including— 

(1)		 serving as the principal advisor to the Secretary and the 

Administrator on medical and public health issues; 

(2)		 coordinating the biodefense activities of the Department; 

(3)		 ensuring internal and external coordination of all medical 

preparedness and response activities of the Department, 

including training, exercises, and equipment support; 

(4)		 serving as the Department’s primary point of contact with the 

Department of Agriculture, the Department of Defense, the 

Department of Health and Human Services, the Department of 

Transportation, the Department of Veterans Affairs, and other 

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Federal departments or agencies, on medical and public health 

issues; 

(5)		 serving as the Department’s primary point of contact for State, 

local, and tribal governments, the medical community, and 

others within and outside the Department, with respect to 

medical and public health matters; 

(6)		 discharging, in coordination with the Under Secretary for 

Science and Technology, the responsibilities of the Department 

related to Project Bioshield; and 

(7)		 performing such other duties relating to such responsibilities as 

the Secretary may require. 

Sec..517..Nuclear.incident.response 

(a)		 In general 

At the direction of the Secretary (in connection with an actual or 

threatened terrorist attack, major disaster, or other emergency 

in the United States), the Nuclear Incident Response Team shall 

operate as an organizational unit of the Department. While so 

operating, the Nuclear Incident Response Team shall be subject to 

the direction, authority, and control of the Secretary. 

(b)		 Rule of construction 

Nothing in this subchapter shall be construed to limit the ordinary 

responsibility of the Secretary of Energy and the Administrator 

of the Environmental Protection Agency for organizing, training, 

equipping, and utilizing their respective entities in the Nuclear 

Incident Response Team, or (subject to the provisions of this 

subchapter) from exercising direction, authority, and control over 

them when they are not operating as a unit of the Department. 

Sec..518..Conduct.of.certain.public.health-related.activities 

(a)		 In general 

With respect to all public health-related activities to improve 

State, local, and hospital preparedness and response to chemical, 

biological, radiological, and nuclear and other emerging terrorist 

threats carried out by the Department of Health and Human 

Services (including the Public Health Service), the Secretary of 

Health and Human Services shall set priorities and preparedness 

Appendix A: Stafford Act P.L. 93-288 A-
goals and further develop a coordinated strategy for such activities 

in collaboration with the Secretary. 

(b)		 Evaluation of progress 

In carrying out subsection (a) of this section, the Secretary of 

Health and Human Services shall collaborate with the Secretary 

in developing specific benchmarks and outcome measurements 

for evaluating progress toward achieving the priorities and goals 

described in such subsection. 

Sec..519..use.of.national.private.sector.networks.in.emergency. 

response 

To the maximum extent practicable, the Secretary shall use national 

private sector networks and infrastructure for emergency response to 

chemical, biological, radiological, nuclear, or explosive disasters, and 

other major disasters. 

Sec..520..use.of.commercially.available.technology,.goods,.and. 

services 

It is the sense of Congress that— 

(1)		 the Secretary should, to the maximum extent possible, use 

off-the-shelf commercially developed technologies to ensure 

that the Department’s information technology systems allow the 

Department to collect, manage, share, analyze, and disseminate 

information securely over multiple channels of communication; 

and 

(2)		 in order to further the policy of the United States to avoid 

competing commercially with the private sector, the Secretary 

should rely on commercial sources to supply the goods and 

services needed by the Department. 

Sec..521..Procurement.of.security.countermeasures.for.Strategic. 

National.Stockpile 

(a)		 Authorization of appropriations 

For the procurement of security countermeasures under section 

247d–6b (c) of title 42 (referred to in this section as the “security 

countermeasures program”), there is authorized to be appropriated 

up to $5,593,000,000 for the fiscal years 2004 through 2013. Of 

the amounts appropriated under the preceding sentence, not to 

A- Appendix A: Stafford Act P.L. 93-288 
exceed $3,418,000,000 may be obligated during the fiscal years 

2004 through 2008, of which not to exceed $890,000,000 may be 

obligated during fiscal year 2004. 

(b) Special reserve fund 

For purposes of the security countermeasures program, the term 

“special reserve fund” means the “Biodefense Countermeasures” 

appropriations account or any other appropriation made under 

subsection (a) of this section. 

(c) Availability 

Amounts appropriated under subsection (a) of this section become 

available for a procurement under the security countermeasures 

program only upon the approval by the President of such 

availability for the procurement in accordance with paragraph 

(6)(B) of such program. 

(d) Related authorizations of appropriations 

(1) Threat assessment capabilities 

 For the purpose of carrying out the responsibilities of the 

Secretary for terror threat assessment under the security 

countermeasures program, there are authorized to be 

appropriated such sums as may be necessary for each of the 

fiscal years 2004 through 2006, for the hiring of professional 

personnel within the Directorate for Information Analysis and 

Infrastructure Protection, who shall be analysts responsible 

for chemical, biological, radiological, and nuclear threat 

assessment (including but not limited to analysis of chemical, 

biological, radiological, and nuclear agents, the means by 

which such agents could be weaponized or used in a terrorist 

attack, and the capabilities, plans, and intentions of terrorists 

and other non-state actors who may have or acquire such 

agents). All such analysts shall meet the applicable standards 

and qualifications for the performance of intelligence activities 

promulgated by the Director of Central Intelligence pursuant to 

section 403–4 of title 50. 

(2) Intelligence sharing infrastructure 

 For the purpose of carrying out the acquisition and deployment 

of secure facilities (including information technology and 

physical infrastructure, whether mobile and temporary, or 

Appendix A: Stafford Act P.L. 93-288 A-
permanent) sufficient to permit the Secretary to receive, not 

later than 180 days after July 21, 2004, all classified information 

and products to which the Under Secretary for Information 

Analysis and Infrastructure Protection is entitled under part 

A of subchapter II of this chapter, there are authorized to be 

appropriated such sums as may be necessary for each of the 

fiscal years 2004 through 2006. 

A- Appendix A: Stafford Act P.L. 93-288 
APPENDIx.B 

44 CFR Part 206, 

Subparts C and G–L
 

Subpart.C—Emergency.Assistance.....................................................B-4



§ 206.61 Purpose. ..........................................................................B-4



§ 206.62 Available assistance. .......................................................B-4



§ 206.63 Provision of assistance....................................................B-5



§ 206.64 Coordination of assistance..............................................B-5



§ 206.65 Cost sharing. ...................................................................B-5



§ 206.66 Limitation on expenditures. .............................................B-5



§ 206.67 Requirement when limitation is exceeded.......................B-5



§§ 206.68–206.100 [Reserved] .........................................................B-6



Subpart.G—Public.Assistance.Project.Administration..........................B-6



§ 206.200 General. ...........................................................................B-6



§ 206.201 Definitions used in this subpart. ......................................B-6



§ 206.202 Application procedures. ..................................................B-8



§ 206.203 Federal grant assistance. ..............................................B-10



§ 206.204 Project performance......................................................B-11



§ 206.205 Payment of claims.........................................................B-13



§ 206.206 Appeals..........................................................................B-14



§ 206.207 Administrative and audit requirements..........................B-16



§ 206.208 Direct Federal assistance. .............................................B-17



§§ 206.209–206.219 [Reserved] .....................................................B-19



Subpart.H—Public.Assistance.Eligibility............................................B-19



§ 206.220 General. .........................................................................B-19



§ 206.221 Definitions......................................................................B-19



§ 206.222 Applicant eligibility.........................................................B-22



§ 206.223 General work eligibility...................................................B-22



§ 206.224 Debris removal...............................................................B-23



§ 206.225 Emergency work............................................................B-24



§ 206.226 Restoration of damaged facilities..................................B-25



§ 206.227 Snow assistance............................................................B-29



§ 206.228 Allowable costs. ............................................................B-29



§§ 206.229-206.249 [Reserved] .....................................................B-32



Appendix B: 44 CFR Part 206, Subparts C and G–L B-
Subpart.I—Public.Assistance.Insurance.Requirements......................B-32



§ 206.250 General. .........................................................................B-32



§ 206.251 Definitions......................................................................B-32



§ 206.252 Insurance requirements for facilities damaged by
 


flood...............................................................................B-33



§ 206.253 Insurance requirements for facilities damaged by disasters
 


other than flood ..............................................................................B-34



§§ 206.254–206.339 [Reserved] .....................................................B-35



Subpart.j—Coastal.Barrier.Resources.Act.........................................B-35



§ 206.340 Purpose of subpart........................................................B-35



§ 206.341 Policy. ............................................................................B-35



§ 206.342 Definitions......................................................................B-36



§ 206.343 Scope. ...........................................................................B-38



§ 206.344 Limitations on Federal expenditures. ............................B-38



§ 206.345 Exceptions.....................................................................B-39



§ 206.346 Applicability to disaster assistance. ..............................B-40



§ 206.347 Requirements. ...............................................................B-41



§ 206.348 Consultation. .................................................................B-44



§ 206.349 Consistency determinations..........................................B-45



§§ 206.350–206.359 [Reserved] .....................................................B-46



Subpart.k—Community.Disaster.Loans.............................................B-46



§ 206.360 Purpose. ........................................................................B-46



§ 206.361 Loan program. ...............................................................B-46



§ 206.362 Responsibilities. ............................................................B-48



§ 206.363 Eligibility criteria.............................................................B-49



§ 206.364 Loan application. ...........................................................B-50



§ 206.365 Loan administration.......................................................B-53



§ 206.366 Loan cancellation. .........................................................B-55



§ 206.367 Loan repayment.............................................................B-59



§§ 206.368–206.369 [Reserved] .....................................................B-60



§ 206.370 Purpose and scope. ......................................................B-60



§ 206.371 Loan program. ...............................................................B-61



§ 206.372 Responsibilities. ............................................................B-62



§ 206.373 Eligibility criteria.............................................................B-63



§ 206.374 Loan application. ...........................................................B-64



§ 206.375 Loan administration.......................................................B-67



§ 206.376 [Reserved]......................................................................B-69



§ 206.377 Loan repayment.............................................................B-69



§§ 206.378–206.389 [Reserved] .....................................................B-70



B- Appendix B: 44 CFR Part 206, Subparts C and G–L 
Subpart.L—Fire.Suppression.Assistance...........................................B-70



§ 206.390 General. .........................................................................B-70



§ 206.391 FEMA-State Agreement.................................................B-70



§ 206.392 Request for assistance..................................................B-71



§ 206.393 Providing assistance......................................................B-71



§ 206.394 Cost eligibility. ...............................................................B-71



§ 206.395 Grant administration......................................................B-73



§§ 206.396–206.399 [Reserved] .....................................................B-73



Appendix B: 44 CFR Part 206, Subparts C and G–L B-
SuBPART.C—EMERGENCy.ASSISTANCE 

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

§.206.61. Purpose. 

The purpose of this subpart is to identify the forms of assistance which 

may be made available under an emergency declaration. 

§.206.62. Available.assistance. 

In any emergency declaration, the 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 

B- Appendix B: 44 CFR Part 206, Subparts C and G–L 
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] 

§.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. 

§.206.64. Coordination.of.assistance. 

After an emergency declaration by the President, all Federal agencies, 

voluntary organizations, and State and local governments providing 

assistance shall operate under the coordination of the Federal 

Coordinating Officer. 

§.206.65. Cost.sharing. 

The Federal share for assistance provided under this title shall not be less 

than 75 percent of the eligible costs. 

§.206.66. Limitation.on.expenditures. 

Total assistance provided in any given emergency declaration may not 

exceed $5,000,000, except when it is determined by the 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.



§.206.67. Requirement.when.limitation.is.exceeded. 

Whenever the limitation described in § 206.66 is exceeded, the Director 

must report to the Congress on the nature and extent of continuing 

emergency assistance requirements and shall propose additional 

legislation if necessary. 

Appendix B: 44 CFR Part 206, Subparts C and G–L B-
§§.206.68-206.100. [Reserved] 

SuBPART.G—PuBLIC.ASSISTANCE.PROjECT. 

ADMINISTRATION 

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

§.206.200.General. 

a. Purpose. This subpart establishes procedures for the administration 

of Public Assistance grants approved under the provisions of the 

Stafford Act. 

b. What policies apply to FEMA public assistance grants? 

1. The Stafford Act requires that we deliver eligible assistance as 

quickly and efficiently as possible consistent with Federal laws 

and regulations. We expect the Grantee and the subgrantee to 

adhere to Stafford Act requirements and to these regulations 

when administering our public assistance grants. 

2. The regulations entitled ‘‘Uniform Requirements for Grants and 

Cooperative Agreements to State and Local Governments,’’ 

published at 44 CFR part 13, place requirements on the State in 

its role as Grantee and gives the Grantee discretion to administer 

federal programs under their own procedures. We expect the 

Grantee to: 

i.		 Inform subgrantees about the status of their applications, 

including notifications of our approvals of Project Worksheets 

and our estimates of when we will make payments; 

ii.		 Pay the full amounts due to subgrantees as soon as 

practicable after we approve payment, including the State 

contribution required in the FEMA-State Agreement; and 

iii. Pay the State contribution consistent with State laws. 

[55 FR 2304, Jan. 23, 1990, as amended at 63 FR 64425, Nov. 20, 1998; 

64 FR 55160, Oct. 12, 1999] 

§.206.201.Definitions.used.in.this.subpart. 

a. Applicant means a State agency, local government, or eligible private 

nonprofit organization, as identified in Subpart H of this regulation, 

submitting an application to the Grantee for assistance under the 

State’s grant. 

B- Appendix B: 44 CFR Part 206, Subparts C and G–L 
b. Emergency work means that work which must be done immediately 

to save lives and to protect improved property and public health and 

safety, or to avert or lessen the threat of a major disaster. 

c. Facility means any publicly or privately owned building, works, 

system, or equipment, built or manufactured, or an improved and 

maintained natural feature. Land used for agricultural purposes is not 

a facility. 

d. Grant means an award of financial assistance. The grant award shall 

be based on the total eligible Federal share of all approved projects. 

e. Grantee means the government to which a grant is awarded which 

is accountable for the use of the funds provided. The grantee is the 

entire legal entity even if only a particular component of the entity 

is designated in the grant award document. For purposes of this 

regulation, except as noted in § 206.202, the State is the grantee. 

f. Hazard mitigation means any cost effective measure which will 

reduce the potential for damage to a facility from a disaster event. 

g. Permanent work means that restorative work that must be performed 

through repairs or replacement, to restore an eligible facility on the 

basis of 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. 

Appendix B: 44 CFR Part 206, Subparts C and G–L B-
k. Subgrant means an award of financial assistance under a grant by a 

grantee to an eligible subgrantee. 

l.		Subgrantee means the government or other legal entity to which a 

subgrant is awarded and which is accountable to the grantee for the 

use of the funds provided. 

[55 FR 2304, Jan. 23, 1990, as amended at 63 FR 64425, Nov. 20, 1998; 

64 FR 55160, Oct. 12, 1999] 

§.206.202.Application.procedures. 

a. General. This section describes the policies and procedures that 

we use to 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 disasterrelated damages for funding. 

i.		 We or the applicant, assisted by the State as appropriate, 

will prepare a Project Worksheet (FEMA Form 90–91) for 

B- Appendix B: 44 CFR Part 206, Subparts C and G–L 
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. 

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 circumstances beyond the grantee’s or 

subgrantee’s control. 

[64 FR 55160, Oct. 12, 1999] 

Appendix B: 44 CFR Part 206, Subparts C and G–L B-
§.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 governmentB-0 Appendix B: 44 CFR Part 206, Subparts C and G–L 
owned or –controlled facility infeasible, the Federal funding 

for such an alternate project will be 90 percent of the Federal 

share of the approved Federal estimate of eligible costs. 

iv.	 	Funds contributed for alternate projects may be used to 

repair or expand other selected public facilities, to construct 

new facilities, or to fund hazard mitigation measures. These 

funds may not be used to pay the nonfederal share of any 

project, nor for any operating expense. 

v.	 	Prior to the start of construction of any alternate project the 

Grantee shall submit for approval by the RD the following: a 

description of the proposed alternate project(s); a schedule 

of work; and the projected cost of the project(s). The Grantee 

shall also provide the necessary assurances to document 

compliance with special requirements, including, but not 

limited to floodplain management, environmental assessment, 

hazard mitigation, protection of wetlands, and insurance. 

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

§.206.204.Project.performance. 

a. General. This section describes the policies and procedures 
 

applicable during the performance of eligible work.



b. Advances of funds. Advances of funds will be made in accordance 

with 44 CFR 13.21, Payment. 

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 

Appendix B: 44 CFR Part 206, Subparts C and G–L B-
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 
 

B- Appendix B: 44 CFR Part 206, Subparts C and G–L 
Grantee to the RD for a final determination. All requests for the 

RD’s approval will contain sufficient documentation to support 

the eligibility of all claimed work and costs. The Grantee must 

include a written recommendation when forwarding the request. 

The RD will notify the Grantee in writing of the final determination. 

FEMA will not normally review an overrun for an individual small 

project. The normal procedure for small projects will be that 

when a subgrantee discovers a significant overrun related to the 

total final cost for all small projects, the subgrantee may submit 

an appeal for additional funding in accordance with § 206.206, 

within 60 days following the completion of all its small projects. 

f. Progress reports. Progress reports will be submitted by the Grantee 

to the RD quarterly. The RD and Grantee shall negotiate the date 

for submission of the first report. Such reports will describe the 

status of those projects on which a final payment of the Federal 

share has not been made to the grantee and outline any problems 

or circumstances expected to result in noncompliance with the 

approved grant conditions. 

[55 FR 2304, Jan. 23, 1990; 55 FR 5458, Feb. 15, 1990, as amended at 64 

FR 55161, Oct. 12, 1999] 

§.206.205.Payment.of.claims. 

a. Small Projects. Final payment of the Federal share of these projects 

will be made to the Grantee upon approval of the Project Worksheet. 

The Grantee will make payment of the Federal share to the 

subgrantee as soon as practicable after Federal approval of 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 

Appendix B: 44 CFR Part 206, Subparts C and G–L B-
completed, that the project is in compliance with the provisions 

of the FEMA-State Agreement, and that payments for that project 

have been made in accordance with 44 CFR 13.21, Payments. 

Each large project shall be submitted as soon as practicable after 

the subgrantee has completed the approved work and requested 

payment. 

2. The RD shall review the accounting to determine the eligible 

amount of reimbursement for each large project and approve 

eligible costs. If a discrepancy between reported costs and 

approved funding exists, the RD may conduct field reviews 

to gather additional information. If discrepancies in the claim 

cannot be resolved through a field review, a Federal audit may be 

conducted. If the RD determines that eligible costs exceed the 

initial approval, he/she will obligate additional funds as necessary. 

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

§.206.206.Appeals. 

An eligible applicant, subgrantee, or grantee may appeal any 

determination previously made related to an application for or the 

provision of Federal assistance according to the procedures below. 

a. Format and Content. The applicant or subgrantee will make the 

appeal in writing through the grantee to the Regional Director. The 

grantee shall review and evaluate all subgrantee appeals before 

submission to the Regional Director. The grantee may make granteerelated 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. 

B- Appendix B: 44 CFR Part 206, Subparts C and G–L 
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 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). 

Appendix B: 44 CFR Part 206, Subparts C and G–L B-
3. The decision of the FEMA official at the next higher appeal level 

shall be the final administrative decision of FEMA. 

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

§.206.207.Administrative.and.audit.requirements. 

a. General. Uniform administrative requirements which are set forth in 

44 CFR part 13 apply to all disaster assistance grants and subgrants. 

b. State administrative plan. 

1. The State shall develop a plan for the administration of the Public 

Assistance program that includes at a minimum, the items listed 

below: 

i.		 The designation of the State agency or agencies which will 

have the responsibility for program administration. 

ii.		 The identification of staffing functions in the Public Assistance 

program, the sources of staff to fill these functions, and the 

management and oversight responsibilities of each. 

iii. Procedures for: 

A. Notifying potential applicants of the availability of the 

program; 

B. Conducting briefings for potential applicants and 

application procedures, program eligibility guidance and 

program deadlines; 

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. 

B- Appendix B: 44 CFR Part 206, Subparts C and G–L 
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] 

§.206.208.Direct.Federal.assistance. 

a. General. When the State and local government lack the capability 

to perform or to contract for eligible emergency work and/or debris 

removal, under sections 402(4), 403 or 407 of the Act, the Grantee 

may request that the work be accomplished by a Federal agency. 

Such assistance is subject to the cost sharing provisions outlined in 

§ 206.203(b) of this subpart. Direct Federal assistance is also subject 

to the eligibility criteria contained in Subpart H of these regulations. 

FEMA will reimburse other Federal agencies in accordance with 

Subpart A of these regulations. 

b. Requests for assistance. All requests for direct Federal assistance 

shall be submitted by the Grantee to the RD and shall include: 

1. A written agreement that the State will: 

i.		 Provide without cost to the United States all lands, easements 

and rights-of-ways necessary to accomplish the approved 

work; 

Appendix B: 44 CFR Part 206, Subparts C and G–L B-
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 

B- Appendix B: 44 CFR Part 206, Subparts C and G–L 
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] 

§§.206.209-206.219. [Reserved] 

SuBPART.H—PuBLIC.ASSISTANCE.ELIGIBILITy 

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

§.206.220.General. 

This subpart provides policies and procedures for determinations of 

eligibility of applicants for public assistance, eligibility of work, and 

eligibility of costs for assistance under sections 402, 403, 406, 407, 418, 

419, 421(d), 502, and 503 of the Stafford Act. Assistance under this 

subpart must also conform to requirements of 44 CFR part 201, Mitigation 

Planning, and 44 CFR part 206, subparts G—Public Assistance Project 

Administration, I—Public Assistance Insurance Requirements, J— Coastal 

Barrier Resources Act, and M— Minimum Standards. Regulations 

under 44 CFR part 9—Floodplain Management and 44 CFR part 10— 

Environmental Considerations, also apply to this assistance. 

[67 FR 8854, Feb. 26, 2002] 

§.206.221.Definitions. 

a. Educational institution means: 

1. Any elementary school as defined by section 801(c) of the 

Elementary and Secondary Education Act of 1965; or 

Appendix B: 44 CFR Part 206, Subparts C and G–L B-
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 meansany 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 

B-0 Appendix B: 44 CFR Part 206, Subparts C and G–L 
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, including 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-today medical care. 

7. Other essential governmental service facility means museums, 

zoos, community centers, libraries, homeless shelters, senior 

citizen centers, rehabilitation facilities, shelter workshops 

and facilities which provide health and safety services of a 

governmental nature. All such facilities must be open to the 

general public. 

f. Private nonprofit organization means any nongovernmental agency 

or entity that currently has: 

1. An effective ruling letter from the U.S. Internal Revenue Service, 

granting tax exemption under sections 501(c), (d), or (e) of the 

Internal Revenue Code of 1954, or 

2. Satisfactory evidence from the State that the nonrevenue 

producing organization or entity is a nonprofit one organized or 

doing business under State law. 

g. Public entity means an organization formed for a public purpose 

whose direction and funding are provided by one or more political 

subdivisions of the State. 

h. Public facility means the following facilities owned by a State or local 

government: any flood control, navigation, irrigation, reclamation, 

public power, sewage treatment and collection, water supply 

and distribution, watershed development, or airport facility; any 

non-Federal aid, street, road, or highway; and any other public 

building, structure, or system, including those used for educational, 

recreational, or cultural purposes; or any park. 

i.		Standards means codes, specifications or standards required for the 

construction of facilities. 

Appendix B: 44 CFR Part 206, Subparts C and G–L B-
[55 FR 2307, Jan. 23, 1990, as amended at 58 FR 47994, Sept. 14, 1993; 

66 FR 22445, May 4, 2001] 

§.206.222.Applicant.eligibility. 

The following entities are eligible to apply for assistance under the State 

public assistance grant: 

a. State and local governments. 

b. Private non-profit organizations or institutions which own or operate 

a private nonprofit facility as defined in § 205.221(e). 

c. Indian tribes or authorized tribal organizations and Alaska Native 

villages or organizations, but not Alaska Native Corporations, the 

ownership of which is vested in private individuals. 

§.206.223.General.work.eligibility. 

a. General. To be eligible for financial assistance, an item of work must: 

1. Be required as the result of the major disaster event, 

2. Be located within a designated disaster area, except that 

sheltering and evacuation activities may be located outside the 

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 § 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 § 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 

B- Appendix B: 44 CFR Part 206, Subparts C and G–L 
in all efforts necessary to recover the cost of such assistance from 

the negligent party. 

[55 FR 2307, Jan. 23, 1990, as amended at 71 FR 40027, July 14, 2006] 

§.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 

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. 

Appendix B: 44 CFR Part 206, Subparts C and G–L B-
[55 FR 2307, Jan. 23, 1990, as amended at 66 FR 33901, June 26, 2001] 

§.206.225.Emergency.work. 

a. General. 

1. Emergency protective measures to save lives, to protect public 

health and safety, and to protect improved property are eligible. 

2. In determining whether emergency work is required, the Regional 

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 

B- Appendix B: 44 CFR Part 206, Subparts C and G–L 
resume its normal pattern of life as soon as possible is eligible. Such 

transportation is intended to supplement but not replace predisaster 

transportation facilities that remain operable after a major disaster. 

FEMA funding for such transportation will be discontinued as soon 

as the needs have been met. 

§.206.226.Restoration.of.damaged.facilities. 

Work to restore eligible facilities on the basis of the design of such 

facilities as they existed immediately prior to the disaster and in 

conformity with the following is eligible: 

a. Assistance under other Federal agency (OFA) programs. 

1. Generally, disaster assistance will not be made available under 

the Stafford Act when another Federal agency has specific 

authority to restore facilities damaged or destroyed by an event 

which is declared a major disaster. 

2. An exception to the policy described in paragraph (a)(1) of this 

section exists for public elementary and secondary school 

facilities which are otherwise eligible for assistance from the 

Department of Education (ED) under 20 U.S.C. 241–1 and 

20 U.S.C. 646. Such facilities are also eligible for assistance 

from FEMA under the Stafford Act, and grantees shall accept 

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, 2004 (subject to 44 CFR 201.4(a)(2)), 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 §206.221(e)(3)), sewer services, wastewater 

Appendix B: 44 CFR Part 206, Subparts C and G–L B-
treatment, communications, emergency medical care, fire 

department services, emergency rescue, and nursing homes; or 

2. The private nonprofit organization not falling within the criteria of 

§ 206.226(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. 

B- Appendix B: 44 CFR Part 206, Subparts C and G–L 
f. Repair vs. replacement. 

1. A facility is considered repairable when disaster damages do 

not exceed 50 percent of the cost of replacing a facility to its 

predisaster condition, and it is feasible to repair the facility so that 

it can perform the function for which it was being used as well as 

it did immediately prior to the disaster. 

2. If a damaged facility is not repairable in accordance with 

paragraph (d)(1) of this section, approved restorative work may 

include replacement of the facility. The applicant may elect to 

perform repairs to the facility, in lieu of replacement, if such 

work is in conformity with applicable standards. However, 

eligible costs shall be limited to the less expensive of repairs or 

replacement. 

3. An exception to the limitation in paragraph (d)(2) of this section 

may be allowed for facilities eligible for or on the National 

Register of Historic Properties. If an applicable standard requires 

repair in a certain manner, costs associated with that standard 

will be eligible. 

g. Relocation. 

1. The Regional 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 

Appendix B: 44 CFR Part 206, Subparts C and G–L B-
project [see § 206.203(d)(2)], eligible costs will be limited to 90 

percent of the estimate of restoration at the original location 

excluding hazard mitigation measures. 

5. If relocation of a facility is not feasible or cost effective, the 

Regional 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 

B- Appendix B: 44 CFR Part 206, Subparts C and G–L 
established in an approved budget or the owner can demonstrate 

to FEMA’s satisfaction an intent to begin use within a reasonable 

time. 

[55 FR 2307, Jan. 23, 1990, as amended at 58 FR 55022, Oct. 25, 1993; 

63 FR 5897, Feb. 5, 1998; 66 FR 22445, May 4, 2001; 67 FR 8854, Feb. 

26, 2002; 68 FR 61371, Oct. 28, 2003; 69 FR 55097, Sept. 13, 2004] 

§.206.227.Snow.assistance. 

Emergency or major disaster declarations based on snow or blizzard 

conditions will be made only for cases of record or near record 

snowstorms, as established by official government records. Federal 

assistance will be provided for all costs eligible under 44 CFR 206.225 for 

a specified period of time which will be determined by the circumstances 

of the event. 

[62 FR 45330, Aug. 27, 1997] 

§.206.228.Allowable.costs. 

General policies for determining allowable costs are established in 44 

CFR 13.22. Exceptions to those policies as allowed in 44 CFR 13.4 and 

13.6 are explained below. 

a. Eligible direct costs. 

1. 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 

Appendix B: 44 CFR Part 206, Subparts C and G–L B-
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; 

B-0 Appendix B: 44 CFR Part 206, Subparts C and G–L 
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. 

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] 

Appendix B: 44 CFR Part 206, Subparts C and G–L B-
§§.206.229-206.249. [Reserved] 

SuBPART.I—PuBLIC.ASSISTANCE.INSuRANCE. 

REquIREMENTS 

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

§.206.250.General. 

a. Sections 311 and 406(d) of the Stafford Act, and the Flood Disaster 

Protection Act of 1973, Public Law 93–234, set forth certain 

insurance requirements which apply to disaster assistance provided 

by FEMA. The requirements of this subpart apply to all assistance 

provided pursuant to section 406 of the Stafford Act with respect 

to any major disaster declared by the President after November 23, 

1988. 

b. Insurance requirements prescribed in this subpart shall apply equally 

to private nonprofit (PNP) facilities which receive assistance under 

section 406 of the Act. PNP organizations shall submit the necessary 

documentation and assurances required by this subpart to the 

Grantee. 

c. Actual and anticipated insurance recoveries shall be deducted from 

otherwise eligible costs, in accordance with this subpart. 

d. The full coverage available under the standard flood insurance policy 

from the National Flood Insurance Program (NFIP) will be subtracted 

from otherwise eligible costs for a building and its contents within 

the special flood hazard area in accordance with § 206.252. 

e. The insurance requirements of this subpart should not be interpreted 

as a substitute for various hazard mitigation techniques which may 

be available to reduce the incidence and severity of future damage. 

§.206.251.Definitions. 

a. Assistance means any form of a Federal grant under section 406 of 

the Stafford Act to replace, restore, repair, reconstruct, or construct 

any facility and/or its contents as a result of a major disaster. 

b. Building means a walled and roofed structure, other than a gas, or 

liquid storage tank, that is principally above ground and affixed to 

a permanent site, as well as a manufactured home on a permanent 

foundation. 

B- Appendix B: 44 CFR Part 206, Subparts C and G–L 
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-YourOwn Company pursuant to 44 CFR 62.23. 

§.206.252.Insurance.requirements.for.facilities.damaged.by.flood. 

a. Where an insurable building damaged by flooding is located in a 

special flood hazard area identified for more than one year by the 

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 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. 

Appendix B: 44 CFR Part 206, Subparts C and G–L B-
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. 

§.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 
 

B- Appendix B: 44 CFR Part 206, Subparts C and G–L 
insurance required to protect against future loss to a disasterdamaged 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 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. 

§§.206.254-206.339. [Reserved] 

SuBPART.j—COASTAL.BARRIER.RESOuRCES.ACT 

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

§.206.340.Purpose.of.subpart. 

This subpart implements the Coastal Barrier Resources Act (CBRA) (Pub. 

L. 97–348) as that statute applies to disaster relief granted to individuals 

and State and local governments under the Stafford Act. CBRA prohibits 

new expenditures and new financial assistance within the Coastal Barrier 

Resources System (CBRS) for all but a few types of activities identified in 

CBRA. This subpart specifies what actions may and may not be carried 

out within the CBRS. It establishes procedures for compliance with CBRA 

in the administration of disaster assistance by FEMA. 

§.206.341.Policy. 

It shall be the policy of FEMA to achieve the goals of CBRA in carrying 

out disaster relief on units of the Coastal Barrier Resources System. It is 

FEMA’s intent that such actions be consistent with the purpose of CBRA 

to minimize the loss of human life, the wasteful expenditure of Federal 

Appendix B: 44 CFR Part 206, Subparts C and G–L B-
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. 

§.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 § 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. 

B- Appendix B: 44 CFR Part 206, Subparts C and G–L 
f. Financial assistance means any form of Federal loan, grant guaranty, 

insurance, payment rebate, subsidy or any other form of direct or 

indirect Federal assistance. 

g. New financial assistance on a unit of the CBRS established by Public 

Law 97–348 means an approval by FEMA of a project application 

or other disaster assistance after October 18, 1982. For any other 

unit added to the CBRS by amendment to Public Law 97–348, the 

enactment date such amendment is substituted for October 18, 

1982, in this definition. 

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. 

Appendix B: 44 CFR Part 206, Subparts C and G–L B-
k. System unit means any undeveloped coastal barrier, or combination 

of closely related undeveloped coastal barriers included within the 

Coastal Barrier Resources System as established by the section 4 of 

the CBRA, or as modified by the Secretary in accordance with that 

statute. 

§.206.343.Scope. 

a. The limitations on disaster assistance as set forth in this subpart 

apply only to FEMA actions taken on a unit of the Coastal Barrier 

Resources System or any conduit to such unit, including, but not 

limited to a bridge, causeway, utility, or similar facility. 

b. FEMA assistance having a social program orientation which is 

unrelated to development is not subject to the requirements of these 

regulations. This assistance includes: 

1. Individual and Family Grants that are not for acquisition or 

construction purposes; 

2. Crisis counseling; 

3. Disaster Legal services; and 

4. Disaster unemployment assistance. 

§.206.344.Limitations.on.Federal.expenditures. 

Except as provided in §§ 206.345 and 206.346, no new expenditures or 

financial assistance may be made available under authority of the Stafford 

Act for any purpose within the Coastal Barrier Resources System, 

including but not limited to: 

a. Construction, reconstruction, replacement, repair or purchase of any 

structure, appurtenance, facility or related infrastructure; 

b. Construction, reconstruction, replacement, repair or purchase of any 

road, airport, boat landing facility, or other facility on, or bridge or 

causeway to, any System unit; and 

c. Carrying out of any project to prevent the erosion of, or to otherwise 

stabilize, any inlet, shoreline, or inshore area, except that such 

assistance and expenditures may be made available on units 

designated pursuant to Section 4 on maps numbered S01 through 

S08 for purposes other than encouraging development and, in all 

units, in cases where an emergency threatens life, land, and property 

immediately adjacent to that unit. 

B- Appendix B: 44 CFR Part 206, Subparts C and G–L 
§.206.345.Exceptions. 

The following types of disaster assistance actions are exceptions to the 

prohibitions of § 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 § 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 

Appendix B: 44 CFR Part 206, Subparts C and G–L B-
habitats and related lands, stabilization projects for fish and 

wildlife habitats, and recreational projects; and 

6. Repair of nonstructural projects for shoreline stabilization that 

are designed to mimic, enhance, or restore natural stabilization 

systems. 

§.206.346.Applicability.to.disaster.assistance. 

a. Emergency assistance. The Regional 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 expansion of the following 

publicly owned or operated facilities and certain private nonprofit 

facilities. 

B-0 Appendix B: 44 CFR Part 206, Subparts C and G–L 
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. 

§.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 §§ 206.348 and 206.349. 

b. Emergency disaster assistance. For each emergency disaster 

assistance action listed in § 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 Fish and 

Wildlife and Parks has concurred that the emergency work listed 

in § 206.346(a) is consistent with the purposes of CBRA and may 

be approved by FEMA without additional consultation. 

Appendix B: 44 CFR Part 206, Subparts C and G–L B-
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 § 

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 § 206.348 shall be 

accomplished. 

2. Channel improvements. For the repair of existing channels, 
 

related structures and the disposal of dredged materials:
 


i.		 No channel or related structure may be repaired, 

reconstructed, or replaced unless funds were appropriated for 

the construction of such channel or structure before October 

18, 1982; 

ii.		 Expansion of the facility beyond its predisaster design is not 

permitted; 

iii. Consultation in accordance with § 206.348 shall be 

accomplished. 

3. Energy facilities. For the repair of facilities necessary for the 

exploration, extraction or transportation of energy resources: 

B- Appendix B: 44 CFR Part 206, Subparts C and G–L 
i.		 No such facility may be repaired, reconstructed or replaced 

unless such function can be carried out only in, on, or 

adjacent to a coastal water area because the use or facility 

requires access to the coastal water body; 

ii.		 Consultation in accordance with § 206.348 shall be 

accomplished. 

4. Special-purpose facilities. For the repair of facilities used for 

the study, management, protection or enhancement of fish and 

wildlife resources and habitats and related recreational projects; 

air and water navigation aids and devices and access thereto; 

and facilities used for scientific research, including but not limited 

to aeronautical, atmospheric, space, geologic, marine, fish and 

wildlife and other research, development, and applications; and, 

nonstructural facilities that are designed to mimic, enhance or 

restore natural shoreline stabilization systems: 

i.		 Consultation in accordance with § 206.348 shall be 

accomplished; 

ii.		 No such facility may be repaired, reconstructed, or replaced 

unless it is otherwise consistent with the purposes of CBRA in 

accordance with § 206.349. 

5. Other public facilities. For the repair, reconstruction, or 

replacement of publicly owned or operated roads, structures, 

or facilities that do not fall within the categories identified in 

paragraphs (c)(1), (2), (3), and (4) of this section: 

i.		No such facility may be repaired, reconstructed, or replaced unless it 

is an ‘‘existing facility;’’ 

ii. Expansion of the facility beyond its predisaster design is not 

permitted; 

iii. Consultation in accordance with § 206.348 shall be accomplished; 

iv. No such facility may be repaired, reconstructed, or replaced unless 

it is otherwise consistent with the purposes of CBRA in accordance 

with § 206.349. 

6. Private nonprofit facilities. For eligible private nonprofit facilities 

as defined in these regulations and of the type described in 

paragraphs (c)(1), (2), (3), and (4) of this section: 

Appendix B: 44 CFR Part 206, Subparts C and G–L B-
i.		 Consultation in accordance with § 206.348 shall be 

accomplished. 

ii.		 No such facility may be repaired, reconstructed, or replaced 

unless it is otherwise consistent with the purposes of CBRA in 

accordance with § 206.349. 

7. Improved project. An improved project may not be approved 

for a facility in the CBRS if such grant is to be combined with 

other funding, resulting in an expansion of the facility beyond 

the predisaster design. If a facility is exempt from the expansion 

prohibitions of CBRA by virtue of falling into one of the categories 

identified in paragraph (c)(1), (2), (3), or (4) of this section, then an 

improved project for such facilities is not precluded. 

8. Alternate project. A new or enlarged facility may not be 

constructed on a unit of the CBRS under the provisions of the 

Stafford Act unless the facility is exempt from the expansion 

prohibition of CBRA by virtue of falling into one of the categories 

identified in paragraph (c)(1), (2), (3), or (4) of this section. 

§.206.348.Consultation. 

As required by section 6 of the CBRA, the FEMA Regional 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 § 

206.349. 

B- Appendix B: 44 CFR Part 206, Subparts C and G–L 
b. Pursuant to FEMA understanding with DOI, the DOI representative 

will provide technical information and an opinion whether or not 

the proposed action meets the criteria for a CBRA exception, and 

on the consistency of the action with the purposes of CBRA (when 

such consistency is required). DOI is expected to respond within 12 

working days from the date of the FEMA request for consultation. If 

a response is not received within the time limit, the FEMA Regional 

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. 

§.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; 

Appendix B: 44 CFR Part 206, Subparts C and G–L B-
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. 

§§.206.350-206.359. [Reserved] 

SuBPART.k—COMMuNITy.DISASTER.LOANS 

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

§.206.360.Purpose. 

This subpart provides policies and procedures for local governments 

and State and Federal officials concerning the Community Disaster Loan 

program under section 417 of the Stafford Act. Sections 206.360 through 

206.367 of the subpart do not implement the Community Disaster Loan 

Act of 2005. (see § 206.370). 

[70 FR 60446, Oct. 18, 2005] 

§.206.361.Loan.program. 

a. General. The 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 

B- Appendix B: 44 CFR Part 206, Subparts C and G–L 
$5 million. The term fiscal year as used in this subpart means the 

local government’s fiscal year. 

c. Interest rate. The interest rate is the rate for five year maturities 

as determined by the Secretary of the Treasury in effect on the 

date that the Promissory Note is executed. This rate is from the 

monthly Treasury schedule of certified interest rates which takes into 

consideration the current average yields on outstanding marketable 

obligations of the United States, 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 § 

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 disasterrelated 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. 

Appendix B: 44 CFR Part 206, Subparts C and G–L B-
h. Relation to other assistance. Any community disaster loans including 

cancellations made under this subpart shall not reduce or otherwise 

affect any commitments, grants, or other assistance under the Act or 

these regulations. 

[55 FR 2314, Jan. 23, 1990, as amended at 66 FR 22445, May 4, 2001] 

§.206.362.Responsibilities. 

a. The local government shall submit the financial information required 

by FEMA in the application for a Community Disaster Loan and in 

the application for loan cancellation, if submitted, and comply with 

the assurances on the application, the terms and conditions of the 

Promissory Note, and these regulations. The local government shall 

send all loan application, loan administration, loan cancellation, and 

loan settlement correspondence through the GAR and the FEMA 

Regional Office to the FEMA 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 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 

B- Appendix B: 44 CFR Part 206, Subparts C and G–L 
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. 

§.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: 

Appendix B: 44 CFR Part 206, Subparts C and G–L B-
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] 

§.206.364.Loan.application. 

a. Application. 

B-0 Appendix B: 44 CFR Part 206, Subparts C and G–L 
1. The local government shall submit an application for a 

Community Disaster Loan through the GAR. The loan must be 

justified on the basis of need and shall be based on the actual 

and projected expenses, as a result of the disaster, for the fiscal 

year in which the disaster occurred and for the 3 succeeding 

fiscal years. The loan application shall be prepared by the 

affected local government and be approved by the GAR. FEMA 

has determined that a local government, in applying for a loan 

as a result of having suffered a substantial loss of tax and other 

revenue as a result of a major disaster, is not required to first seek 

credit elsewhere (see § 206.367(c)). 

2. The State exercises administrative authority over the local 

government’s application. The State’s review should include 

a determination that the applicant is legally qualified, under 

State law, to assume the proposed debt, and may include an 

overall review for accuracy for the submission. The Governor’s 

Authorized Representative may request the Regional 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 

§ 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: 

Appendix B: 44 CFR Part 206, Subparts C and G–L B-
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 disasterrelated expenses of a municipal operating character should be 

estimated. These are discussed in § 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 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 

B- Appendix B: 44 CFR Part 206, Subparts C and G–L 
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 § 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) 

§.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 

Appendix B: 44 CFR Part 206, Subparts C and G–L B-
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. 

d. Inactive loans. If no funds have been disbursed from the Treasury, 

and if the local government does not anticipate a need for such 

B- Appendix B: 44 CFR Part 206, Subparts C and G–L 
funds, the note may be cancelled at any time upon a written request 

through the State and Regional Office to FEMA. However, since only 

one loan may be approved, cancellation precludes submission of a 

second loan application request by the same local government for 

the same disaster. 

§.206.366.Loan.cancellation. 

a. Policies. 

1. FEMA shall cancel repayment of all or part of a Community 

Disaster Loan to the extent that the 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 disasterrelated 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. 

Appendix B: 44 CFR Part 206, Subparts C and G–L B-
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 disasterrelated expenses. Examples of such expenses include but are not 

limited to: 

i.		 Interest paid on money borrowed to pay amounts FEMA 

does not advance toward completion of approved Project 

Applications. 

ii.		 Unreimbursed costs to local governments for providing 

usable sites with utilities for mobile homes used to meet 

disaster temporary housing requirements. 

iii. Unreimbursed costs required for police and fire protection 

and other community services for mobile home parks 

established as the result of or for use following a disaster. 

iv.	 	The cost to the applicant of flood insurance required under 

Public Law 93–234, as amended, and other hazard insurance 

required under section 311, Public Law 93–288, as amended, 

as a condition of Federal disaster assistance for the disaster 

under which the loan is authorized. 

B- Appendix B: 44 CFR Part 206, Subparts C and G–L 
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); 

Appendix B: 44 CFR Part 206, Subparts C and G–L B-
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 may be made that would result in a duplication of 

benefits to the applicant. 

3. The uncancelled portion of the loan must be repaid in accordance 

with § 206.367. 

4. Appeals. If an Application for Loan Cancellation is disapproved, in 

whole or in part, by the Associate Director or designee, the local 

B- Appendix B: 44 CFR Part 206, Subparts C and G–L 
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) 

§.206.367.Loan.repayment. 

a. Prepayments. The local government may make prepayments against 

loan at any time without any prepayment penalty. 

b. Repayment. To the extent not otherwise cancelled, Community 

Disaster Loan funds become due and payable in accordance with 

the terms and 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=P×R×T, where I=the amount 

of simple interest, P=the principal amount disbursed; R=the 

interest rate of the loan; and, T=the outstanding term in years 

from the date of disbursement to date of repayment, with periods 

less than 1 year computed on the basis of 365 days/year. If 

any portion of the loan is cancelled, the interest amount due 

will be computed on the remaining principal with the shortest 

outstanding term. 

3. Each payment made against the loan will be applied first to 

the interest computed to the date of the payment, and then to 

the principal. Prepayments of scheduled installments, or any 

portion thereof, may be made at any time and shall be applied 

to the installments last to become due under the loan and shall 

not affect the obligation of the borrower to pay the remaining 

installments. 

4. The 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. 

Appendix B: 44 CFR Part 206, Subparts C and G–L B-
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. 

§§.206.368-206.369. [Reserved] 

§.206.370.Purpose.and.scope. 

a. Purpose. Sections 206.370 through 206.377 provide policies and 

procedures for local governments and State and Federal officials 

concerning the Special Community Disaster Loans program under 

section 417 of the Stafford Act and the Community Disaster Loan 

Act of 2005, Public Law 109–88. 

b. Scope. Sections 206.370 through 206.377 apply only to Special 

Community Disaster Loans under the Community Disaster Loan Act 

of 2005, Public Law 109–88. Community Disaster Loans issued prior 

B-0 Appendix B: 44 CFR Part 206, Subparts C and G–L 
to the enactment of Public Law 109–88 or other subsequent loans 

not issued under the authority of the Public Law 109–88 are not 

covered under §§ 206.370 through 206.377. 

[70 FR 60446, Oct. 18, 2005] 

§.206.371.Loan.program. 

a. General. The Associate Director may make a Special Community 

Disaster Loan to any local government which has suffered a 

substantial loss of tax and other revenues as a result of a major 

disaster and which demonstrates a need for Federal financial 

assistance in order to provide essential services. 

b. Amount of loan. The amount of the loan is based upon need, not to 

exceed 25 percent of the operating budget of the local government 

for the fiscal year in which the disaster occurs. The term fiscal year 

as used in this subpart means the local government’s fiscal year. 

c. Interest rate. The interest rate is the rate for five year maturities 

as determined by the Secretary of the Treasury in effect on the 

date that the Promissory Note is executed. This rate is from the 

monthly Treasury schedule of certified interest rates which takes into 

consideration the current average yields on outstanding marketable 

obligations of the United States. If an applicant can demonstrate 

unusual circumstances involving financial hardship, the Associate 

Director may approve a rate equal to the five year maturity rate 

plus 1 per centum, adjusted to the nearest 1⁄8 percent, and further 

reduced by one-half. 

d. Time limitation. The Associate Director may approve a loan in either 

the fiscal year in which the disaster occurred or the fiscal year 

immediately following that year. 

e. Term of loan. The term of the loan is 5 years, unless otherwise 

extended by the Associate Director. The Associate Director may 

consider a request for an extension of a loan based on the local 

government’s financial condition. The total term of any loan under 

section 417(a) of the Stafford Act normally may not exceed 10 years 

from the date the Promissory Note was executed. However, when 

extenuating circumstances exist and the recipient demonstrates an 

inability to repay the loan within the initial 10 years, but agrees to 

repay such loan over an extended period of time, additional time 

may be provided for loan repayment (see § 206.377(c)). 

Appendix B: 44 CFR Part 206, Subparts C and G–L B-
f. Use of loan funds. The local government shall use the loaned funds 

to assist in providing essential services. The funds shall not be 

used to finance capital improvements nor the repair or restoration 

of damaged public facilities. The loan may not be used as the 

nonfederal share of any Federal program, including those under the 

Stafford Act. 

g. Relation to other assistance. Any Special Community Disaster Loans 

made under this program shall not reduce or otherwise affect any 

commitments, grants, or other assistance under the Stafford Act or 

part 206 of this title. 

[70 FR 60446, Oct. 18, 2005] 

§.206.372.Responsibilities. 

a. The local government shall submit the financial information required 

by FEMA in the application for a Community Disaster Loan or other 

format specified by FEMA and comply with the assurances on the 

application, the terms and conditions of the Promissory Note, and §§ 

206.370 through 206.377. The local government shall send all loan 

application, loan administration, and loan settlement correspondence 

through the Governor’s Authorized Representative (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 resulting from major disasters. 

c. The Regional Director or designee shall review each loan application 

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 shall administer the loan until 

repayment is completed and the Promissory Note is discharged. 

B- Appendix B: 44 CFR Part 206, Subparts C and G–L 
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. 

f. The FEMA Chief Financial Officer shall establish and maintain a 
 

financial account for each outstanding loan and disburse funds 
 

against the Promissory Note.
 


[70 FR 60446, Oct. 18, 2005] 

§.206.373.Eligibility.criteria. 

a. Local government. 

1. The local government must be located within the area eligible for 

assistance under a major disaster declaration. In addition, State 

law must not prohibit the local government from incurring the 

indebtedness resulting from a Federal loan. 

2. Criteria considered by FEMA in determining the eligibility of a 

local government for a Special Community Disaster Loan include 

the loss of tax and other revenues as result of a major disaster, 

a demonstrated need for financial assistance in order to perform 

essential governmental functions, the maintenance of an annual 

operating budget, and the responsibility to provide essential 

services to the community. Eligibility for other assistance under 

the Stafford Act does not, by itself, establish entitlement to such 

a loan. 

b. Loan eligibility. 

1. General. To be eligible, the local government must show that 

it may suffer or has suffered a substantial loss of tax and other 

revenues as a result of a major disaster or emergency, and it 

must demonstrate a need for financial assistance in order to 

provide essential municipal services. Loan eligibility is based 

on the financial condition of the local government and a 

review of financial information and supporting documentation 

accompanying the application. 

2. Substantial loss of tax and other revenues. The fiscal year of 

the disaster or the succeeding fiscal year is the base period 

for determining whether a local government may suffer or 

has suffered a substantial loss of revenue. Criteria used in 

determining whether a local government has or may suffer a 

Appendix B: 44 CFR Part 206, Subparts C and G–L B-
substantial loss of tax and other revenue include the following 

disaster-related factors: 

i. Whether the disaster caused a large enough reduction in cash 

receipts from normal revenue sources, excluding borrowing, 

which affects significantly and adversely the level and/or 

categories of essential services provided prior to the disaster; 

ii. Whether the disaster caused a revenue loss of over 5 percent 

of total revenue estimated for the fiscal year in which the 

disaster occurred or for the succeeding fiscal year. 

3. Demonstrated need for financial assistance. The local 

government must demonstrate a need for financial assistance in 

order to perform essential governmental functions. The criteria 

used in making this determination may include some or all of the 

following factors: 

i.		 Whether there are sufficient funds to meet current fiscal year 

operating requirements; 

ii		 Whether there is availability of cash or other liquid assets from 

the prior fiscal year; 

iii. Current financial condition considering projected 

expenditures for governmental services and availability of 

other financial resources; 

iv.	 	Ability to obtain financial assistance or needed revenue 

from State and other Federal agencies for direct program 

expenditures; 

v.	 	Debt ratio (relationship of annual receipts to debt service); 

vi. Displacement of revenue-producing business due to property 

destruction; 

vii. Necessity to reduce or eliminate essential services; and 

viii. Danger of municipal insolvency. 

[70 FR 60446, Oct. 18, 2005] 

§.206.374.Loan.application. 

a. Application. 

B- Appendix B: 44 CFR Part 206, Subparts C and G–L 
1. The local government shall submit an application for a Special 

Community Disaster Loan through the GAR. The loan must be 

justified on the basis of need and shall be based on the actual 

and projected expenses, as a result of the disaster, for the fiscal 

year in which the disaster occurred and for the 3 succeeding 

fiscal years. The loan application shall be prepared by the 

affected local government and be approved by the GAR. FEMA 

has determined that a local government, in applying for a loan 

as a result of having suffered a substantial loss of tax and other 

revenue as a result of a major disaster, is not required to first seek 

credit elsewhere (see § 206.377(c)). 

2. The State exercises administrative authority over the local 

government’s application. The State’s review should include a 

determination that the applicant is legally qualified, under State 

law, to assume the proposed debt, and may include an overall 

review for accuracy of the submission. The GAR may request the 

Regional 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 

paragraph (b)(2) of this section) and shall include a Summary of 

Revenue Loss and Unreimbursed Disaster-Related Expenses, a 

Statement of the Applicant’s Operating Results—Cash Position, 

and certification and assurances requested by the Associate 

Director. 

i.		 Copies of the local government’s financial reports (Revenue 

and Expense and Balance Sheet) for the 3 fiscal years 

immediately prior to the fiscal year of the disaster and the 

applicant’s most recent financial statement must, unless 

impracticable, accompany the application. The local 

government’s financial reports to be submitted are those 

annual (or interim) consolidated and/or individual official 

annual financial presentations for the General Fund and all 

other funds maintained by the local government. 

ii.		 Each application for a Special Community Disaster Loan must 

also include: 

Appendix B: 44 CFR Part 206, Subparts C and G–L B-
A. A statement by the local government identifying each fund 

(i.e. General Fund, etc.) which is included as its annual 

Operating budget, and 

B. A copy of the pertinent State statutes, ordinances, or 

regulations which prescribe the local government’s system 

of budgeting, accounting and financial reporting, including 

a description of each fund account. 

2. Operating budget. For loan application purposes, the operating 

budget is that document or documents approved by an 

appropriating body, which contains an estimate of proposed 

expenditures, other than capital outlays for fixed assets for a 

stated period of time, and the proposed means of financing the 

expenditures. 

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. 

5. Estimated disaster-related expense. Unreimbursed disasterrelated expenses of a municipal operating character should be 

estimated. 

c. Federal review. 

1. The Associate Director or designee shall approve a Special 

Community Disaster Loan to the extent it is determined that the 

local government has suffered a substantial loss of tax and other 

revenues and demonstrates a need for financial assistance as the 

result of the disaster to provide essential municipal services. 

2. Resubmission of application. If a loan application is disapproved, 

in whole or in part, by the Associate Director because of 

inadequacy of information, a revised application may be 

submitted by the local government within sixty days of the date 

of the disapproval. Decision by the Associate Director on the 

resubmission is final. 

d. Special Community Disaster Loan. 

1. The loan shall not exceed the lesser of: 

B- Appendix B: 44 CFR Part 206, Subparts C and G–L 
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 cosigned by the State (see paragraph (d)(2)(ii) of this section). 

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. 

e. Waiver of requirements. Notwithstanding any other provision of this 

or other sections promulgated pursuant to Public Law 109–88, the 

Associate Director may, upon the request of an applicant or loan 

recipient, waive any specific application requirement or financial 

reporting requirement (see, e.g., § 206.375(a)(2)) upon a finding by 

the Associate Director that the effects of the major disaster prevent 

the applicant from fulfilling the application requirement and that 

waiving the requirements would be consistent with the purposes of 

the Community Disaster Loan Act of 2005. 

[70 FR 60446, Oct. 18, 2005] 

§.206.375.Loan.administration. 

a. Funding. 

1. FEMA will disburse funds to the local government when 

requested, generally in accordance with the Schedule of Loan 

Increments in the Promissory Note. As funds are disbursed, 

interest will accrue against each disbursement. 

2. When each incremental disbursement is requested, the local 

government shall submit a copy of its most recent financial 

Appendix B: 44 CFR Part 206, Subparts C and G–L B-
report (if not submitted previously) for consideration by FEMA 

in determining whether the level and frequency of periodic 

payments continue to be justified. The local government shall 

also provide the latest available data on anticipated and actual 

tax and other revenue collections. Desired adjustments in the 

disbursement schedule shall be submitted in writing at least 10 

days prior to the proposed disbursement date in order to ensure 

timely receipt of the funds. 

b. Financial management. 

1. Each local government with an approved Special Community 

Disaster Loan shall establish necessary accounting records, 

consistent with local government’s financial management system, 

to account for loan funds received and disbursed and to provide 

an audit trail. 

2. FEMA auditors, State auditors, the GAR, the Regional Director, 

the Associate Director, the Department of Homeland Security 

Inspector General, and the Comptroller General of the United 

States or their duly authorized representatives shall, for the 

purpose of audits and examination, have access to any books, 

documents, papers, and records that pertain to Federal funds, 

equipments, and supplies received under §§ 206.370 through 

206.377. 

c. Loan servicing. 

1. The applicant annually shall submit to FEMA copies of its annual 

financial reports (operating statements, balance sheets, etc.) 

for the fiscal year of the major disaster, and for each of the 3 

subsequent fiscal years. 

2. FEMA will review the loan periodically. The purpose of the 

reevaluation is to determine whether projected revenue losses, 

disaster-related expenses, operating budgets, and other factors 

have changed sufficiently to warrant adjustment of the scheduled 

disbursement of the loan proceeds. 

3. FEMA shall provide each loan recipient with a loan status report 

on a quarterly basis. The recipient will notify FEMA of any 

changes of the responsible municipal official who executed the 

Promissory Note. 

d. Inactive loans. If no funds have been disbursed from the loan 

program, and if the local government does not anticipate a need for 

B- Appendix B: 44 CFR Part 206, Subparts C and G–L 
such funds, the note may be cancelled at any time upon a written 

request through the State and Regional Office to FEMA. 

[70 FR 60446, Oct. 18, 2005] 

§.206.376.[Reserved] 

§.206.377.Loan.repayment. 

a. Prepayments. The local government may make prepayments against 

loan at any time without any prepayment penalty. 

b. Repayment. Loan funds become due and payable in accordance 

with the terms and conditions of the Promissory Note. The note shall 

include the following provisions: 

1. The term of a loan made under this program is 5 years, unless 

extended by the Associate Director. Interest will accrue on 

outstanding cash from the actual date of its disbursement by 

FEMA or FEMA’s designated Disbursing Agency. 

2. The interest amount due will be computed separately for each 

Treasury disbursement as follows: I = P X R X T, where I = the 

amount of simple interest, P = the principal amount disbursed; 

R = the interest rate of the loan; and, T = the outstanding term in 

years from the date of disbursement to date of repayment, with 

periods less than 1 year computed on the basis of 365 days/year. 

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 for up to five years. 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 

Appendix B: 44 CFR Part 206, Subparts C and G–L B-
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 principal plus related 

interest less any payments made. 

3. The interest rate shall be the Treasury rate in effect at the time 

the new Promissory Note is executed but in no case less than the 

original interest rate. A reduced rate may not be applied if was it 

was not previously applied to the loan. 

4. The term of the new Promissory Note shall be for the settlement 

period requested by the local government but not greater than 10 

years from the date the new note is executed. 

[70 FR 60446, Oct. 18, 2005] 

§§.206.378-206.389. [Reserved] 

SuBPART.L—FIRE.SuPPRESSION.ASSISTANCE 

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

§.206.390.General. 

When the 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. 

§.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 

B-0 Appendix B: 44 CFR Part 206, Subparts C and G–L 
(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. 

§.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 

number 3067–0066) 

§.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. 

§.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. 

Appendix B: 44 CFR Part 206, Subparts C and G–L B-
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 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. 

B- Appendix B: 44 CFR Part 206, Subparts C and G–L 
3. State costs for suppressing a fire on co-mingled Federal land 

where such costs are reimbursable to the State by a Federal 

agency under another statute (see 44 CFR part 151). 

§.206.395.Grant.administration. 

a. Project administration shall be in accordance with 44 CFR part 13, 

and applicable portions of subpart G, 44 CFR part 206. 

b. In those instances in which reimbursement includes State fire 

suppression assistance on co-mingled State and Federal lands 

(§ 206.394(b)(9)), the Regional 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. 

§§.206.396-206.399. [Reserved] 

Appendix B: 44 CFR Part 206, Subparts C and G–L B-

APPENDIx.C 

44 CFR Part 13, 

Subparts A-D
 

Subpart.A—General............................................................................C-3



§ 13.1 Purpose and scope of this part. ..................................... C-3



§ 13.2 Scope of subpart............................................................ C-3



§ 13.3 Definitions....................................................................... C-3



§ 13.4 Applicability. ................................................................... C-7



§ 13.5 Effect on other issuances. .............................................. C-9



§ 13.6 Additions and exceptions............................................. C-10



Subpart.B—Pre-Award.Requirements.................................................C-10



§ 13.10 Forms for applying for grants. ...................................... C-10



§ 13.11 State plans.................................................................... C-11



§ 13.12 Special grant or subgrant conditions for ‘‘high-risk”
 


grantees........................................................................ C-12



Subpart.C—Post-Award.Requirements
 


Financial Administration ................................................................ C-13



§ 13.20 Standards for financial management systems. ............ C-13



§ 13.21 Payment. ...................................................................... C-14



§ 13.22 Allowable costs. ........................................................... C-17



§ 13.23 Period of availability of funds. ...................................... C-17



§ 13.24 Matching or cost sharing.............................................. C-18



§ 13.25 Program income. .......................................................... C-22



§ 13.26 Non-Federal audit......................................................... C-23



Changes, Property, and Subawards.............................................. C-24



§ 13.30 Changes. ...................................................................... C-24



§ 13.31 Real property. ............................................................... C-26



§ 13.32 Equipment. ................................................................... C-27



§ 13.33 Supplies........................................................................ C-30



§ 13.34 Copyrights. ................................................................... C-30



§ 13.35 Subawards to debarred and suspended parties.......... C-30



§ 13.36 Procurement................................................................. C-31



§ 13.37 Subgrants. .................................................................... C-43



Reports, Records Retention, and Enforcement............................. C-44



§ 13.40 Monitoring and reporting program performance.......... C-44



Appendix C: 44 CFR Part 13, Subparts A-D C-
§ 13.41 Financial reporting........................................................ C-46



§ 13.42 Retention and access requirements for records. ......... C-49



§ 13.43 Enforcement. ................................................................ C-52



§ 13.44 Termination for convenience. ....................................... C-53



Subpart.D—After-the-Grant.Requirements..........................................C-53



§ 13.50 Closeout. ...................................................................... C-53



§ 13.51 Later disallowances and adjustments. ......................... C-54



§ 13.52 Collection of amounts due. .......................................... C-54



C- Appendix C: 44 CFR Part 13, Subparts A-D 
SuBPART.A—GENERAL 

§.13.1..Purpose.and.scope.of.this.part. 

This part establishes uniform administrative rules for Federal grants and 

cooperative agreements and subawards to State, local and Indian tribal 

governments. 

§.13.2..Scope.of.subpart. 

This subpart contains general rules pertaining to this part and procedures 

for control of exceptions from this part. 

§.13.3..Definitions. 

As used in this part: 

Accrued expenditures mean the charges incurred by the grantee during a 

given period requiring the provision of funds for: 

1. Goods and other tangible property received; 

2. Services performed by employees, contractors, subgrantees, 
 

subcontractors, and other payees; and



3. Other amounts becoming owed under programs for which no current 

services or performance is required, such as annuities, insurance 

claims, and other benefit payments. 

Accrued income means the sum of: (1) Earnings during a given period 

from services performed by the grantee and goods and other tangible 

property delivered to purchasers, and (2) amounts becoming owed to the 

grantee for which no current services or performance is required by the 

grantee. 

Acquisition cost of an item of purchased equipment means the net invoice 

unit price of the property including the cost of modifications, attachments, 

accessories, or auxiliary apparatus necessary to make the property 

usable for the purpose for which it was acquired. Other charges such as 

the cost of installation, transportation, taxes, duty or protective in-transit 

insurance, shall be included or excluded from the unit acquisition cost in 

accordance with the grantee’s regular accounting practices. 

Administrative requirements mean those matters common to grants in 

general, such as financial management, kinds and frequency of reports, 

and retention of records. These are distinguished from ‘‘programmatic’’ 

requirements, which concern matters that can be treated only on a 

Appendix C: 44 CFR Part 13, Subparts A-D C-
program-by-program or grant-by-grant basis, such as kinds of activities 

that can be supported by grants under a particular program. 

Awarding agency means (1) with respect to a grant, the Federal agency, 

and (2) with respect to a subgrant, the party that awarded the subgrant. 

Cash contributions means the grantee’s cash outlay, including the outlay 

of money contributed to the grantee or subgrantee by other public 

agencies and institutions, and private organizations and individuals. 

When authorized by Federal legislation, Federal funds received from other 

assistance agreements may be considered as grantee or subgrantee cash 

contributions. 

Contract means (except as used in the definitions for grant and subgrant 

in this section and except where qualified by Federal) a procurement 

contract under a grant or subgrant, and means a procurement 

subcontract under a contract. 

Cost sharing or matching means the value of the third party in-kind 

contributions and the portion of the costs of a federally assisted project or 

program not borne by the Federal Government. 

Cost-type contract means a contract or subcontract under a grant in 

which the contractor or subcontractor is paid on the basis of the costs it 

incurs, with or without a fee. 

Equipment means tangible, nonexpendable, personal property having 

a useful life of more than one year and an acquisition cost of $5,000 or 

more per unit. A grantee may use its own definition of equipment provided 

that such definition would at least include all equipment defined above. 

Expenditure report means: 

1. For nonconstruction grants, the SF–269 ‘‘Financial Status Report’’ (or 

other equivalent report); 

2. For construction grants, the SF–271 ‘‘Outlay Report and Request for 

Reimbursement’’ (or other equivalent report). 

Federally recognized Indian tribal government means the governing 

body or a governmental agency of any Indian tribe, band, nation, or 

other organized group or community (including any Native village as 

defined in section 3 of the Alaska Native Claims Settlement Act, 85 Stat 

688) certified by the Secretary of the Interior as eligible for the special 

programs and services provided by him through the Bureau of Indian 

Affairs. 

C- Appendix C: 44 CFR Part 13, Subparts A-D 
Government means a State or local government or a federally recognized 

Indian tribal government. 

Grant means an award of financial assistance, including cooperative 

agreements, in the form of money, or property in lieu of money, by the 

Federal Government to an eligible grantee. The term does not include 

technical assistance which provides services instead of money, or other 

assistance in the form of revenue sharing, loans, loan guarantees, interest 

subsidies, insurance, or direct appropriations. Also, the term does not 

include assistance, such as a fellowship or other lump sum award, which 

the grantee is not required to account for. 

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. 

Local government means a county, municipality, city, town, township, 

local public authority (including any public and Indian housing agency 

under the United States Housing Act of 1937) school district, special 

district, intrastate district, council of governments (whether or not 

incorporated as a nonprofit corporation under state law), any other 

regional or interstate government entity, or any agency or instrumentality 

of a local government. 

Obligations means the amounts of orders placed, contracts and 

subgrants awarded, goods and services received, and similar transactions 

during a given period that will require payment by the grantee during the 

same or a future period. 

OMB means the United States Office of Management and Budget. 

Outlays (expenditures) mean charges made to the project or program. 

They may be reported on a cash or accrual basis. For reports prepared 

on a cash basis, outlays are the sum of actual cash disbursement for 

direct charges for goods and services, the amount of indirect expense 

incurred, the value of in-kind contributions applied, and the amount of 

cash advances and payments made to contractors and subgrantees. 

For reports prepared on an accrued expenditure basis, outlays are the 

sum of actual cash disbursements, the amount of indirect expense 

incurred, the value of inkind contributions applied, and the new increase 

(or decrease) in the amounts owed by the grantee for goods and other 

property received, for services performed by employees, contractors, 

subgrantees, subcontractors, and other payees, and other amounts 

becoming owed under programs for which no current services or 

Appendix C: 44 CFR Part 13, Subparts A-D C-
performance are required, such as annuities, insurance claims, and other 

benefit payments. 

Percentage of completion method refers to a system under which 

payments are made for construction work according to the percentage of 

completion of the work, rather than to the grantee’s cost incurred. 

Prior approval means documentation evidencing consent prior to 

incurring specific cost. 

Real property means land, including land improvements, structures and 

appurtenances thereto, excluding movable machinery and equipment. 

Share, when referring to the awarding agency’s portion of real property, 

equipment or supplies, means the same percentage as the awarding 

agency’s portion of the acquiring party’s total costs under the grant to 

which the acquisition costs under the grant to which the acquisition cost 

of the property was charged. Only costs are to be counted—not the value 

of third-party in-kind contributions. 

State means any of the several States of the United States, the District of 

Columbia, the Commonwealth of Puerto Rico, any territory or possession 

of the United States, or any agency or instrumentality of a State exclusive 

of local governments. The term does not include any public and Indian 

housing agency under United States Housing Act of 1937. 

Subgrant means an award of financial assistance in the form of money, or 

property in lieu of money, made under a grant by a grantee to an eligible 

subgrantee. The term includes financial assistance when provided 

by contractual legal agreement, but does not include procurement 

purchases, nor does it include any form of assistance which is excluded 

from the definition of grant in this part. 

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. 

Supplies means all tangible personal property other than equipment as 

defined in this part. 

Suspension means depending on the context, either (1) temporary 

withdrawal of the authority to obligate grant funds pending corrective 

action by the grantee or subgrantee or a decision to terminate the grant, 

or (2) an action taken by a suspending official in accordance with agency 

regulations implementing E.O. 12549 to immediately exclude a person 

from participating in grant transactions for a period, pending completion 

C- Appendix C: 44 CFR Part 13, Subparts A-D 
of an investigation and such legal or debarment proceedings as may 

ensue. 

Termination means permanent withdrawal of the authority to obligate 

previously-awarded grant funds before that authority would otherwise 

expire. It also means the voluntary relinquishment of that authority by the 

grantee or subgrantee. ‘‘Termination’’ does not include: 

1. Withdrawal of funds awarded on the basis of the grantee’s 
 

underestimate of the unobligated balance in a prior period;
 


2. Withdrawal of the unobligated balance as of the expiration of a grant; 

3. Refusal to extend a grant or award additional funds, to make a 

competing or noncompeting continuation, renewal, extension, or 

supplemental award; or 

4. Voiding of a grant upon determination that the award was obtained 

fraudulently, or was otherwise illegal or invalid from inception. 

Terms of a grant or subgrant mean all requirements of the grant or 

subgrant, whether in statute, regulations, or the award document. 

Third party in-kind contributions mean property or services which benefit 

a federally assisted project or program and which are contributed by 

non-Federal third parties without charge to the grantee, or a cost-type 

contractor under the grant agreement. 

Unliquidated obligations for reports prepared on a cash basis mean the 

amount of obligations incurred by the grantee that has not been paid. For 

reports prepared on an accrued expenditure basis, they represent the 

amount of obligations incurred by the grantee for which an outlay has not 

been recorded. 

Unobligated balance means the portion of the funds authorized by 

the Federal agency that has not been obligated by the grantee and is 

determined by deducting the cumulative obligations from the cumulative 

funds authorized. 

§.13.4..Applicability. 

a. General. Subparts A through D of this part apply to all grants and 

subgrants to governments, except where inconsistent with Federal 

statutes or with regulations authorized in accordance with the 

exception provision of section 13.6, or: 

Appendix C: 44 CFR Part 13, Subparts A-D C-
1. Grants and subgrants to State and local institutions of higher 

education or State and local hospitals. 

2. The block grants authorized by the Omnibus Budget 

Reconciliation Act of 1981 (Community Services; Preventive 

Health and Health Services; Alcohol, Drug Abuse, and Mental 

Health Services; Maternal and Child Health Services; Social 

Services; Low-Income Home Energy Assistance; States’ Program 

of Community Development Block Grants for Small Cities; and 

Elementary and Secondary Education other than programs 

administered by the Secretary of Education under title V, subtitle 

D, Chapter 2, Section 583— the Secretary’s discretionary 

grant program) and titles I-III of the Job Training Partnership 

Act of 1982 and under the Public Health Services Act (section 

1921), Alcohol and Drug Abuse Treatment and Rehabilitation 

Block Grant and Part C of title V, Mental Health Service for the 

Homeless Block Grant). 

3. Entitlement grants to carry out the following programs of the 

Social Security Act: 

i. Aid to Needy Families with Dependent Children (Title IV-A 

of the Act, not including the Work Incentive Program (WIN) 

authorized by section 402(a)19(G); HHS grants for WIN are 

subject to this part); 

ii. Child Support Enforcement and Establishment of Paternity 

(Title IV-D of the Act); 

iii. Foster Care and Adoption Assistance (Title IV-E of the Act); 

iv.	 	Aid to the Aged, Blind, and Disabled (Titles I, X, XIV, and XVIAABD of the Act); and 

v.	 	Medical Assistance (Medicaid) (Title XIX of the Act) not 

including the State Medicaid Fraud Control program 

authorized by section 1903(a)(6)(B). 

4. Entitlement grants under the following programs of The National 

School Lunch Act: 

i.		 School Lunch (section 4 of the Act), 

ii.		 Commodity Assistance (section 6 of the Act), 

iii. Special Meal Assistance (section 11 of the Act), 

C- Appendix C: 44 CFR Part 13, Subparts A-D 
iv.	 	Summer Food Service for Children (section 13 of the Act), 

and 

v.	 	Child Care Food Program (section 17 of the Act). 

5. Entitlement grants under the following programs of The Child 

Nutrition Act of 1966: 

i.		 Special Milk (section 3 of the Act), and 

ii.		 School Breakfast (section 4 of the Act). 

6. Entitlement grants for State Administrative expenses under The 

Food Stamp Act of 1977 (section 16 of the Act). 

7. A grant for an experimental, pilot, or demonstration project that is 

also supported by a grant listed in paragraph (a)(3) of this section; 

8. Grant funds awarded under subsection 412(e) of the Immigration 

and Nationality Act (8 U.S.C. 1522(e)) and subsection 501(a) of 

the Refugee Education Assistance Act of 1980 (Pub. L. 96–422, 

94 Stat. 1809), for cash assistance, medical assistance, and 

supplemental security income benefits to refugees and entrants 

and the administrative costs of providing the assistance and 

benefits; 

9. Grants to local education agencies under 20 U.S.C. 236 through 

241–1(a), and 242 through 244 (portions of the Impact Aid 

program), except for 20 U.S.C. 238(d)(2)(c) and 240(f) (Entitlement 

Increase for Handicapped Children); and 

10.Payments under the Veterans Administration’s State Home Per 

Diem Program (38 U.S.C. 641(a)). 

b. Entitlement programs. Entitlement programs enumerated above in § 

13.4(a) (3) through (8) are subject to subpart E. 

§.13.5.Effect.on.other.issuances. 

All other grants administration provisions of codified program regulations, 

program manuals, handbooks and other nonregulatory materials which 

are inconsistent with this part are superseded, except to the extent they 

are required by statute, or authorized in accordance with the exception 

provision in § 13.6. 

Appendix C: 44 CFR Part 13, Subparts A-D C-
§.13.6..Additions.and.exceptions. 

a. For classes of grants and grantees subject to this part, Federal 

agencies may not impose additional administrative requirements 

except in codified regulations published in the FEDERAL REGISTER. 

b. Exceptions for classes of grants or grantees may be authorized only 

by OMB. 

c. Exceptions on a case-by-case basis and for subgrantees may be 

authorized by the affected Federal agencies. 

SuBPART.B—PRE-AWARD.REquIREMENTS 

§.13.10..Forms.for.applying.for.grants. 

a. Scope. 

1. This section prescribes forms and instructions to be used by 

governmental organizations (except hospitals and institutions 

of higher education operated by a government) in applying for 

grants. This section is not applicable, however, to formula grant 

programs which do not require applicants to apply for funds on a 

project basis. 

2. This section applies only to applications to Federal agencies for 

grants, and is not required to be applied by grantees in dealing 

with applicants for subgrants. However, grantees are encouraged 

to avoid more detailed or burdensome application requirements 

for subgrants. 

b. Authorized forms and instructions for governmental organizations. 

1. In applying for grants, applicants shall only use standard 

application forms or those prescribed by the granting agency 

with the approval of OMB under the Paperwork Reduction Act of 

1980. 

2. Applicants are not required to submit more than the original and 

two copies of preapplications or applications. 

3. Applicants must follow all applicable instructions that bear 

OMB clearance numbers. Federal agencies may specify and 

describe the programs, functions, or activities that will be used 

to plan, budget, and evaluate the work under a grant. Other 

supplementary instructions may be issued only with the approval 

of OMB to the extent required under the Paperwork Reduction 

C-0 Appendix C: 44 CFR Part 13, Subparts A-D 
Act of 1980. For any standard form, except the SF–424 

facesheet, Federal agencies may shade out or instruct the 

applicant to disregard any line item that is not needed. 

4. When a grantee applies for additional funding (such as a 

continuation or supplemental award) or amends a previously 

submitted application, only the affected pages need be 

submitted. Previously submitted pages with information that is 

still current need not be resubmitted. 

§.13.11..State.plans. 

a. Scope. The statutes for some programs require States to submit 

plans before receiving grants. Under regulations implementing 

Executive Order 12372, ‘‘Intergovernmental Review of Federal 

Programs,’’ States are allowed to simplify, consolidate and substitute 

plans. This section contains additional provisions for plans that are 

subject to regulations implementing the Executive Order. 

b. Requirements. A State need meet only Federal administrative or 

programmatic requirements for a plan that are in statutes or codified 

regulations. 

c. Assurances. In each plan the State will include an assurance that 

the State shall comply with all applicable Federal statutes and 

regulations in effect with respect to the periods for which it receives 

grant funding. For this assurance and other assurances required in 

the plan, the State may: 

1. Cite by number the statutory or regulatory provisions requiring 

the assurances and affirm that it gives the assurances required by 

those provisions, 

2. Repeat the assurance language in the statutes or regulations, or 

3. Develop its own language to the extent permitted by law. 

d. Amendments. A State will amend a plan whenever necessary to 

reflect: (1) New or revised Federal statutes or regulations or (2) 

a material change in any State law, organization, policy, or State 

agency operation. The State will obtain approval for the amendment 

and its effective date but need submit for approval only the amended 

portions of the plan. 

Appendix C: 44 CFR Part 13, Subparts A-D C-
§.13.12..Special.grant.or.subgrant.conditions.for.‘‘high-risk’’. 

grantees. 

a. A grantee or subgrantee may be considered ‘‘high risk’’ if an 
 

awarding agency determines that a grantee or subgrantee:
 


1. Has a history of unsatisfactory performance, or 

2. Is not financially stable, or 

3. Has a management system which does not meet the 
 

management standards set forth in this part, or
 


4. Has not conformed to terms and conditions of previous awards, 

or 

5. Is otherwise not responsible; and if the awarding agency 

determines that an award will be made, special conditions and/or 

restrictions shall correspond to the high risk condition and shall 

be included in the award. 

b. Special conditions or restrictions may include: 

1. Payment on a reimbursement basis; 

2. Withholding authority to proceed to the next phase until receipt 

of evidence of acceptable performance within a given funding 

period; 

3. Requiring additional, more detailed financial reports; 

4. Additional project monitoring; 

5. Requiring the grante or subgrantee to obtain technical or 

management assistance; or 

6. Establishing additional prior approvals. 

c. If an awarding agency decides to impose such conditions, the 

awarding official will notify the grantee or subgrantee as early as 

possible, in writing, of: 

1. The nature of the special conditions/restrictions; 

2. The reason(s) for imposing them; 

3. The corrective actions which must be taken before they will be 

removed and the time allowed for completing the corrective 

actions and 

C- Appendix C: 44 CFR Part 13, Subparts A-D 
4. The method of requesting reconsideration of the conditions/ 

restrictions imposed. 

SuBPART.C—POST-AWARD.REquIREMENTS 

Financial.Administration 

§.13.20..Standards.for.financial.management.systems. 

a. A State must expand and account for grant funds in accordance with 

State laws and procedures for expending and accounting for its own 

funds. Fiscal control and accounting procedures of the State, as 

well as its subgrantees and cost-type contractors, must be sufficient 

to— 

1. Permit preparation of reports required by this part and the 

statutes authorizing the grant, and 

2. Permit the tracing of funds to a level of expenditures adequate to 

establish that such funds have not been used in violation of the 

restrictions and prohibitions of applicable statutes. 

b. The financial management systems of other grantees and 
 

subgrantees must meet the following standards:
 


1. Financial reporting. Accurate, current, and complete disclosure of 

the financial results of financially assisted activities must be made 

in accordance with the financial reporting requirements of the 

grant or subgrant. 

2. Accounting records. Grantees and subgrantees must maintain 

records which adequately identify the source and application of 

funds provided for financially- assisted activities. These records 

must contain information pertaining to grant or subgrant awards 

and authorizations, obligations, unobligated balances, assets, 

liabilities, outlays or expenditures, and income. 

3. Internal control. Effective control and accountability must be 

maintained for all grant and subgrant cash, real and personal 

property, and other assets. Grantees and subgrantees must 

adequately safeguard all such property and must assure that it is 

used solely for authorized purposes. 

4. Budget control. Actual expenditures or outlays must be compared 

with budgeted amounts for each grant or subgrant. Financial 

information must be related to performance or productivity data, 

Appendix C: 44 CFR Part 13, Subparts A-D C-
including the development of unit cost information whenever 

appropriate or specifically required in the grant or subgrant 

agreement. If unit cost data are required, estimates based on 

available documentation will be accepted whenever possible. 

5. Allowable cost. Applicable OMB cost principles, agency program 

regulations, and the terms of grant and subgrant agreements will 

be followed in determining the reasonableness, allowability, and 

allocability of costs. 

6. Source documentation. Accounting records must be supported 

by such source documentation as cancelled checks, paid bills, 

payrolls, time and attendance records, contract and subgrant 

award documents, etc. 

7. Cash management. Procedures for minimizing the time elapsing 

between the transfer of funds from the U.S. Treasury and 

disbursement by grantees and subgrantees must be followed 

whenever advance payment procedures are used. Grantees 

must establish reasonable procedures to ensure the receipt of 

reports on subgrantees’ cash balances and cash disbursements 

in sufficient time to enable them to prepare complete and 

accurate cash transactions reports to the awarding agency. When 

advances are made by letter of- credit or electronic transfer of 

funds methods, the grantee must make drawdowns as close as 

possible to the time of making disbursements. Grantees must 

monitor cash drawdowns by their subgrantees to assure that 

they conform substantially to the same standards of timing and 

amount as apply to advances to the grantees. 

c. An awarding agency may review the adequacy of the financial 

management system of any applicant for financial assistance as part 

of a preaward review or at any time subsequent to award. 

§.13.21..Payment. 

a. Scope. This section prescribes the basic standard and the methods 

under which a Federal agency will make payments to grantees, and 

grantees will make payments to subgrantees and contractors. 

b. Basic standard. Methods and procedures for payment shall minimize 

the time elapsing between the transfer of funds and disbursement by 

the grantee or subgrantee, in accordance with Treasury regulations 

at 31 CFR part 205. 

C- Appendix C: 44 CFR Part 13, Subparts A-D 
c. Advances. Grantees and subgrantees shall be paid in advance, 

provided they maintain or demonstrate the willingness and ability 

to maintain procedures to minimize the time elapsing between 

the transfer of the funds and their disbursement by the grantee or 

subgrantee. 

d. Reimbursement. Reimbursement shall be the preferred method 

when the requirements in paragraph (c) of this section are not met. 

Grantees and subgrantees may also be paid by reimbursement for 

any construction grant. Except as otherwise specified in regulation, 

Federal agencies shall not use the percentage of completion method 

to pay construction grants. The grantee or subgrantee may use 

that method to pay its construction contractor, and if it does, the 

awarding agency’s payments to the grantee or subgrantee will be 

based on the grantee’s or subgrantee’s actual rate of disbursement. 

e. Working capital advances. If a grantee cannot meet the criteria 

for advance payments described in paragraph (c) of this section, 

and the Federal agency has determined that reimbursement is not 

feasible because the grantee lacks sufficient working capital, the 

awarding agency may provide cash or a working capital advance 

basis. Under this procedure the awarding agency shall advance 

cash to the grantee to cover its estimated disbursement needs for 

an initial period generally geared to the grantee’s disbursing cycle. 

Thereafter, the awarding agency shall reimburse the grantee for its 

actual cash disbursements. The working capital advance method 

of payment shall not be used by grantees or subgrantees if the 

reason for using such method is the unwillingness or inability of the 

grantee to provide timely advances to the subgrantee to meet the 

subgrantee’s actual cash disbursements. 

f. Effect of program income, refunds, and audit recoveries on payment. 

1. Grantees and subgrantees shall disburse repayments to and 

interest earned on a revolving fund before requesting additional 

cash payments for the same activity. 

2. Except as provided in paragraph (f)(1) of this section, grantees 

and subgrantees shall disburse program income, rebates, 

refunds, contract settlements, audit recoveries and interest 

earned on such funds before requesting additional cash 

payments. 

g. Withholding payments. 

Appendix C: 44 CFR Part 13, Subparts A-D C-
1. Unless otherwise required by Federal statute, awarding agencies 

shall not withhold payments for proper charges incurred by 

grantees or subgrantees unless: 

i.		 The grantee or subgrantee has failed to comply with grant 

award conditions or 

ii.		 The grantee or subgrantee is indebted to the United States. 

2. Cash withheld for failure to comply with grant award condition, 

but without suspension of the grant, shall be released to 

the grantee upon subsequent compliance. When a grant is 

suspended, payment adjustments will be made in accordance 

with § 13.43(c). 

3. A Federal agency shall not make payment to grantees for 

amounts that are withheld by grantees or subgrantees from 

payment to contractors to assure satisfactory completion of 

work. Payments shall be made by the Federal agency when the 

grantees or subgrantees actually disburse the withheld funds 

to the contractors or to escrow accounts established to assure 

satisfactory completion of work. 

h. Cash depositories. 

1. Consistent with the national goal of expanding the opportunities 

for minority business enterprises, grantees and subgrantees are 

encouraged to use minority banks (a bank which is owned at 

least 50 percent by minority group members). A list of minority 

owned banks can be obtained from the Minority Business 

Development Agency, Department of Commerce, Washington, 

DC 20230. 

2. A grantee or subgrantee shall maintain a separate bank account 

only when required by Federal-State agreement. 

i.		 Interest earned on advances. Except for interest earned 

on advances of funds exempt under the Intergovernmental 

Cooperation Act (31 U.S.C. 6501 et seq.) and the Indian SelfDetermination Act (23 U.S.C. 450), grantees and subgrantees 

shall promptly, but at least quarterly, remit interest earned on 

advances to the Federal agency. The grantee or subgrantee 

may keep interest amounts up to $100 per year for 

administrative expenses. 

C- Appendix C: 44 CFR Part 13, Subparts A-D 
§.13.22..Allowable.costs. 

a. Limitation on use of funds. Grant funds may be used only for: 

1. The allowable costs of the grantees, subgrantees and cost-type 

contractors, including allowable costs in the form of payments to 

fixed-price contractors; and 

2. Reasonable fees or profit to cost type contractors but not any fee 

or profit (or other increment above allowable costs) to the grantee 

or subgrantee. 

b. Applicable cost principles. For each kind of organization, there is a 

set of Federal principles for determining allowable costs. Allowable 

costs will be determined in accordance with the cost principles 

applicable to the organization incurring the costs. The following chart 

lists the kinds of organizations and the applicable cost principles. 

For.the.costs.of.a— use.the.principles.in— 

State, local or Indian tribal OMB Circular A–87. 

government. 

Private nonprofit organization other OMB Circular A–122. 

than an (1) institution of higher 

education, (2) hospital, or (3) 

organization named in OMB Circular 

A– 122 as not subject to that circular. 

Educational institutions. OMB Circular A–21. 

For-profit organization other than a 48 CFR part 31. Contract Cost 

hospital and an organization named in Principles and Procedures, or 

OBM Circular A–122 as not subject to uniform cost accounting standards 

that circular. that comply with cost principles 

acceptable to the Federal agency. 

§.13.23..Period.of.availability.of.funds. 

a. General. Where a funding period is specified, a grantee may charge 

to the award only costs resulting from obligations of the funding 

period unless carryover of unobligated balances is permitted, 

in which case the carryover balances may be charged for costs 

resulting from obligations of the subsequent funding period. 

b. Liquidation of obligations. A grantee must liquidate all obligations 

incurred under the award not later than 90 days after the end of the 

funding period (or as specified in a program regulation) to coincide 

Appendix C: 44 CFR Part 13, Subparts A-D C-
with the submission of the annual Financial Status Report (SF–269). 

The Federal agency may extend this deadline at the request of the 

grantee. 

§.13.24..Matching.or.cost.sharing. 

a. Basic rule: Costs and contributions acceptable. With the 

qualifications and exceptions listed in paragraph (b) of this section, 

a matching or cost sharing requirement may be satisfied by either or 

both of the following: 

1. Allowable costs incurred by the grantee, subgrantee or a costtype contractor under the assistance agreement. This includes 

allowable costs borne by non-Federal grants or by others cash 

donations from non-Federal third parties. 

2. The value of third party in-kind contributions applicable to the 

period to which the cost sharing or matching requirements 

applies. 

b. Qualifications and exceptions. 

1. Costs borne by other Federal grant agreements. Except 

as provided by Federal statute, a cost sharing or matching 

requirement may not be met by costs borne by another Federal 

grant. This prohibition does not apply to income earned by a 

grantee or subgrantee from a contract awarded under another 

Federal grant. 

2. General revenue sharing. For the purpose of this section, general 

revenue sharing funds distributed under 31 U.S.C. 6702 are not 

considered Federal grant funds. 

3. Cost or contributions counted towards other Federal costssharing requirements. Neither costs nor the values of third party 

in-kind contributions may count towards satisfying a cost sharing 

or matching requirement of a grant agreement if they have been 

or will be counted towards satisfying a cost sharing or matching 

requirement of another Federal grant agreement, a Federal 

procurement contract, or any other award of Federal funds. 

4. Costs financed by program income. Costs financed by program 

income, as defined in § 13.25, shall not count towards satisfying 

a cost sharing or matching requirement unless they are expressly 

permitted in the terms of the assistance agreement. (This use of 

general program income is described in § 13.25(g).) 

C- Appendix C: 44 CFR Part 13, Subparts A-D 
5. Services or property financed by income earned by contractors. 

Contractors under a grant may earn income from the activities 

carried out under the contract in addition to the amounts earned 

from the party awarding the contract. No costs of services or 

property supported by this income may count toward satisfying 

a cost sharing or matching requirement unless other provisions 

of the grant agreement expressly permit this kind of income to be 

used to meet the requirement. 

6. Records. Costs and third party inkind contributions counting 

towards satisfying a cost sharing or matching requirement must 

be verifiable from the records of grantees and subgrantee or 

cost-type contractors. These records must show how the value 

placed on third party in-kind contributions was derived. To the 

extent feasible, volunteer services will be supported by the same 

methods that the organization uses to support the allocability of 

regular personnel costs. 

7. Special standards for third party inkind contributions. 

i.		 Third party inkind contributions count towards satisfying 

a cost sharing or matching requirement only where, if the 

party receiving the contributions were to pay for them, the 

payments would be allowable costs. 

ii.		 Some third party in-kind contributions are goods and services 

that, if the grantee, subgrantee, or contractor receiving the 

contribution had to pay for them, the payments would have 

been an indirect costs. Costs sharing or matching credit 

for such contributions shall be given only if the grantee, 

subgrantee, or contractor has established, along with its 

regular indirect cost rate, a special rate for allocating to 

individual projects or programs the value of the contributions. 

iii. A third party in-kind contribution to a fixed-price contract 

may count towards satisfying a cost sharing or matching 

requirement only if it results in: 

A. An increase in the services or property provided under 

the contract (without additional cost to the grantee or 

subgrantee) or 

B. A cost savings to the grantee or subgrantee. 

iv.	 	The values placed on third party in-kind contributions for 

cost sharing or matching purposes will conform to the rules 

in the succeeding sections of this part. If a third party in-kind 

Appendix C: 44 CFR Part 13, Subparts A-D C-
contribution is a type not treated in those sections, the value 

placed upon it shall be fair and reasonable. 

c. Valuation of donated services. 

1. Volunteer services. Unpaid services provided to a grantee or 

subgrantee by individuals will be valued at rates consistent 

with those ordinarily paid for similar work in the grantee’s or 

subgrantee’s organization. If the grantee or subgrantee does 

not have employees performing similar work, the rates will 

be consistent with those ordinarily paid by other employers 

for similar work in the same labor market. In either case, a 

reasonable amount for fringe benefits may be included in the 

valuation. 

2. Employees of other organizations. When an employer other than 

a grantee, subgrantee, or cost-type contractor furnishes free of 

charge the services of an employee in the employee’s normal line 

of work, the services will be valued at the employee’s regular rate 

of pay exclusive of the employee’s fringe benefits and overhead 

costs. If the services are in a different line of work, paragraph 

(c)(1) of this section applies. 

d. Valuation of third party donated supplies and loaned equipment or 

space. 

1. If a third party donates supplies, the contribution will be valued at 

the market value of the supplies at the time of donation. 

2. If a third party donates the use of equipment or space in a 

building but retains title, the contribution will be valued at the fair 

rental rate of the equipment or space. 

e. Valuation of third party donated equipment, buildings, and land. If a 

third party donates equipment, buildings, or land, and title passes to 

a grantee or subgrantee, the treatment of the donated property will 

depend upon the purpose of the grant or subgrant, as follows: 

1. Awards for capital expenditures. If the purpose of the grant or 

subgrant is to assist the grantee or subgrantee in the acquisition 

of property, the market value of that property at the time of 

donation may be counted as cost sharing or matching, 

2. Other awards. If assisting in the acquisition of property is not the 

purpose of the grant or subgrant, paragraphs (e)(2) (i) and (ii) of 

this section apply: 

C-0 Appendix C: 44 CFR Part 13, Subparts A-D 
i.		 If approval is obtained from the awarding agency, the market 

value at the time of donation of the donated equipment or 

buildings and the fair rental rate of the donated land may 

be counted as cost sharing or matching. In the case of a 

subgrant, the terms of the grant agreement may require that 

the approval be obtained from the Federal agency as well 

as the grantee. In all cases, the approval may be given only 

if a purchase of the equipment or rental of the land would 

be approved as an allowable direct cost. If any part of the 

donated property was acquired with Federal funds, only the 

non-Federal share of the property may be counted as costsharing or matching. 

ii.		 If approval is not obtained under paragraph (e)(2)(i) of this 

section, no amount may be counted for donated land, and 

only depreciation or use allowances may be counted for 

donated equipment and buildings. The depreciation or use 

allowances for this property are not treated as third party 

in-kind contributions. Instead, they are treated as costs 

incurred by the grantee or subgrantee. They are computed 

and allocated (usually as indirect costs) in accordance with 

the cost principles specified in § 13.22, in the same way as 

depreciation or use allowances for purchased equipment and 

buildings. The amount of depreciation or use allowances for 

donated equipment and buildings is based on the property’s 

market value at the time it was donated. 

f. Valuation of grantee or subgrantee donated real property for 

construction/acquisition. If a grantee or subgrantee donates real 

property for a construction or facilities acquisition project, the current 

market value of that property may be counted as cost sharing or 

matching. If any part of the donated property was acquired with 

Federal funds, only the non-Federal share of the property may be 

counted as cost sharing or matching. 

g. Appraisal of real property. In some cases under paragraphs (d), (e) 

and (f) of this section, it will be necessary to establish the market 

value of land or a building or the fair rental rate of land or of space 

in a building. In these cases, the Federal agency may require 

the market value or fair rental value be set by an independent 

appraiser, and that the value or rate be certified by the grantee. This 

requirement will also be imposed by the grantee on subgrantees. 

Appendix C: 44 CFR Part 13, Subparts A-D C-
§.13.25..Program.income. 

a. General. Grantees are encouraged to earn income to defray program 

costs. Program income includes income from fees for services 

performed, from the use or rental of real or personal property 

acquired with grant funds, from the sale of commodities or items 

fabricated under a grant agreement, and from payments of principal 

and interest on loans made with grant funds. Except as otherwise 

provided in regulations of the Federal agency, program income does 

not include interest on grant funds, rebates, credits, discounts, 

refunds, etc. and interest earned on any of them. 

b. Definition of program income. Program income means gross income 

received by the grantee or subgrantee directly generated by a grant 

supported activity, or earned only as a result of the grant agreement 

during the grant period. During the grant period is the time between 

the effective date of the award and the ending date of the award 

reflected in the final financial report. 

c. Cost of generating program income. 	If authorized by Federal 

regulations or the grant agreement, costs incident to the generation 

of program income may be deducted from gross income to 

determine program income. 

d. Governmental revenues. Taxes, special assessments, levies, fines, 

and other such revenues raised by a grantee or subgrantee are not 

program income unless the revenues are specifically identified in the 

grant agreement or Federal agency regulations as program income. 

e. Royalties. Income from royalties and license fees for copyrighted 

material, patents, and inventions developed by a grantee or 

subgrantee is program income only if the revenues are specifically 

identified in the grant agreement or Federal agency regulations as 

program income. (See § 13.34.) 

f. Property. Proceeds from the sale of real property or equipment will 

be handled in accordance with the requirements of §§ 13.31 and 

13.32. 

g. Use of program income. Program income shall be deducted from 

outlays which may be both Federal and non- Federal as described 

below, unless the Federal agency regulations or the grant agreement 

specify another alternative (or a combination of the alternatives). In 

specifying alternatives, the Federal agency may distinguish between 

income earned by the grantee and income earned by subgrantees 

C- Appendix C: 44 CFR Part 13, Subparts A-D 
and between the sources, kinds, or amounts of income. When 

Federal agencies authorize the alternatives in paragraphs (g) (2) and 

(3) of this section, program income in excess of any limits stipulated 

shall also be deducted from outlays. 

1. Deduction. Ordinarily program income shall be deducted from 

total allowable costs to determine the net allowable costs. 

Program income shall be used for current costs unless the 

Federal agency authorizes otherwise. Program income which the 

grantee did not anticipate at the time of the award shall be used 

to reduce the Federal agency and grantee contributions rather 

than to increase the funds committed to the project. 

2. Addition. When authorized, program income may be added to the 

funds committed to the grant agreement by the Federal agency 

and the grantee. The program income shall be used for the 

purposes and under the conditions of the grant agreement. 

3. Cost sharing or matching. When authorized, program income 

may be used to meet the cost sharing or matching requirement 

of the grant agreement. The amount of the Federal grant award 

remains the same. 

h. Income after the award period. There are no Federal requirements 

governing the disposition of program income earned after the end 

of the award period (i.e., until the ending date of the final financial 

report, see paragraph (a) of this section), unless the terms of the 

agreement or the Federal agency regulations provide otherwise. 

§.13.26..Non-Federal.audit. 

a. Basic rule. Grantees and subgrantees are responsible for obtaining 

audits in accordance with the Single Audit Act Amendments of 1996 

(31 U.S.C. 7501–7507) and revised OMB Circular A–133, ‘‘Audits 

of States, Local Governments, and Non-Profit Organizations.’’ The 

audits shall be made by an independent auditor in accordance with 

generally accepted government auditing standards covering financial 

audits. 

b. Subgrantees. State or local governments, as those terms are defined 

for purposes of the Single Audit Act Amendments of 1996, that 

provide Federal awards to a subgrantee, which expends $300,000 or 

more (or other amount as specified by OMB) in Federal awards in a 

fiscal year, shall: 

Appendix C: 44 CFR Part 13, Subparts A-D C-
1. Determine whether State or local subgrantees have met the audit 

requirements of the Act and whether subgrantees covered by 

OMB Circular A– 110, ‘‘Uniform Administrative Requirements for 

Grants and Agreements with Institutions of Higher Education, 

Hospitals, and Other Non-Profit Organizations,’’ have met the 

audit requirements of the Act. Commercial contractors (private 

for-profit and private and governmental organizations) providing 

goods and services to State and local governments are not 

required to have a single audit performed. State and local 

governments should use their own procedures to ensure that the 

contractor has complied with laws and regulations affecting the 

expenditure of Federal funds; 

2. Determine whether the subgrantee spent Federal assistance 

funds provided in accordance with applicable laws and 

regulations. This may be accomplished by reviewing an audit of 

the subgrantee made in accordance with the Act, Circular A–110, 

or through other means (e.g., program reviews) if the subgrantee 

has not had such an audit; 

3. Ensure that appropriate corrective action is taken within 

six months after receipt of the audit report in instance of 

noncompliance with Federal laws and regulations; 

4. Consider whether subgrantee audits necessitate adjustment of 

the grantee’s own records; and 

5. Require each subgrantee to permit independent auditors to have 

access to the records and financial statements. 

c. Auditor selection. In arranging for audit services, § 13.36 shall be 

followed. 

[53 FR 8079, 887, Mar. 11, 1988, as amended at 62 FR 45939, 45945, 

Aug. 29, 1997 

Changes,.Property,.and.Subawards 

§.13.30..Changes. 

a. General. Grantees and subgrantees are permitted to rebudget within 

the approved direct cost budget to meet unanticipated requirements 

and may make limited program changes to the approved project. 

However, unless waived by the awarding agency, certain types of 

post-award changes in budgets and projects shall require the prior 

written approval of the awarding agency. 

C- Appendix C: 44 CFR Part 13, Subparts A-D 
b. Relation to cost principles. The applicable cost principles (see § 

13.22) contain requirements for prior approval of certain types of 

costs. Except where waived, those requirements apply to all grants 

and subgrants even if paragraphs (c) through (f) of this section do 

not. 

c. Budget changes. 

1. Nonconstruction projects. Except as stated in other regulations 

or an award document, grantees or subgrantees shall obtain 

the prior approval of the awarding agency whenever any of the 

following changes is anticipated under a nonconstruction award: 

i.		 Any revision which would result in the need for additional 

funding. 

ii.		 Unless waived by the awarding agency, cumulative transfers 

among direct cost categories, or, if applicable, among 

separately budgeted programs, projects, functions, or 

activities which exceed or are expected to exceed ten percent 

of the current total approved budget, whenever the awarding 

agency’s share exceeds $100,000. 

iii. Transfer of funds allotted for training allowances (i.e., from 

direct payments to trainees to other expense categories). 

2. Construction projects. Grantees and subgrantees shall obtain 

prior written approval for any budget revision which would result 

in the need for additional funds. 

3. Combined construction and nonconstruction projects. When a 

grant or subgrant provides funding for both construction and 

nonconstruction activities, the grantee or subgrantee must obtain 

prior written approval from the awarding agency before making 

any fund or budget transfer from nonconstruction to construction 

or vice versa. 

d. Programmatic changes. Grantees or subgrantees must obtain the 

prior approval of the awarding agency whenever any of the following 

actions is anticipated: 

1. Any revision of the scope or objectives of the project (regardless 

of whether there is an associated budget revision requiring prior 

approval). 

2. Need to extend the period of availability of funds. 

Appendix C: 44 CFR Part 13, Subparts A-D C-
3. Changes in key persons in cases where specified in an 

application or a grant award. In research projects, a change in 

the project director or principal investigator shall always require 

approval unless waived by the awarding agency. 

4. Under nonconstruction projects, contracting out, subgranting 

(if authorized by law) or otherwise obtaining the services of 

a third party to perform activities which are central to the 

purposes of the award. This approval requirement is in addition 

to the approval requirements of § 13.36 but does not apply to 

the procurement of equipment, supplies, and general support 

services. 

e. Additional prior approval requirements. 	The awarding agency 

may not require prior approval for any budget revision which is not 

described in paragraph (c) of this section. 

f. Requesting prior approval. 

1. A request for prior approval of any budget revision will be in the 

same budget formal the grantee used in its application and shall 

be accompanied by a narrative justification for the proposed 

revision. 

2. A request for a prior approval under the applicable Federal cost 

principles (see § 13.22) may be made by letter. 

3. A request by a subgrantee for prior approval will be addressed 

in writing to the grantee. The grantee will promptly review such 

request and shall approve or disapprove the request in writing. 

A grantee will not approve any budget or project revision which 

is inconsistent with the purpose or terms and conditions of the 

Federal grant to the grantee. If the revision, requested by the 

subgrantee would result in a change to the grantee’s approved 

project which requires Federal prior approval, the grantee will 

obtain the Federal agency’s approval before approving the 

subgrantee’s request. 

§.13.31..Real.property. 

a. Title. Subject to the obligations and conditions set forth in this 

section, title to real property acquired under a grant or subgrant will 

vest upon acquisition in the grantee or subgrantee respectively. 

b. Use. Except as otherwise provided by Federal statutes, real property 

will be used for the originally authorized purposes as long as needed 

C- Appendix C: 44 CFR Part 13, Subparts A-D 
for that purposes, and the grantee or subgrantee shall not dispose of 

or encumber its title or other interests. 

c. Disposition. When real property is no longer needed for the 

originally authorized purpose, the grantee or subgrantee will request 

disposition instructions from the awarding agency. The instructions 

will provide for one of the following alternatives: 

1. Retention of title. Retain title after compensating the awarding 

agency. The amount paid to the awarding agency will be 

computed by applying the awarding agency’s percentage of 

participation in the cost of the original purchase to the fair market 

value of the property. However, in those situations where a 

grantee or subgrantee is disposing of real property acquired with 

grant funds and acquiring replacement real property under the 

same program, the net proceeds from the disposition may be 

used as an offset to the cost of the replacement property. 

2. Sale of property. Sell the property and compensate the awarding 

agency. The amount due to the awarding agency will be 

calculated by applying the awarding agency’s percentage of 

participation in the cost of the original purchase to the proceeds 

of the sale after deduction of any actual and reasonable selling 

and fixing-up expenses. If the grant is still active, the net 

proceeds from sale may be offset against the original cost of 

the property. When a grantee or subgrantee is directed to sell 

property, sales procedures shall be followed that provide for 

competition to the extent practicable and result in the highest 

possible return. 

3. Transfer of title. Transfer title to the awarding agency or to a third 

party designated/approved by the awarding agency. The grantee 

or subgrantee shall be paid an amount calculated by applying 

the grantee or subgrantee’s percentage of participation in the 

purchase of the real property to the current fair market value of 

the property. 

§.13.32..Equipment. 

a. Title. Subject to the obligations and conditions set forth in this 

section, title to equipment acquired under a grant or subgrant will 

vest upon acquisition in the grantee or subgrantee respectively. 

b. States. A State will use, manage, and dispose of equipment acquired 

under a grant by the State in accordance with State laws and 

Appendix C: 44 CFR Part 13, Subparts A-D C-
procedures. Other grantees and subgrantees will follow paragraphs 

(c) through (e) of this section. 

c. Use. 

1. Equipment shall be used by the grantee or subgrantee in the 

program or project for which it was acquired as long as needed, 

whether or not the project or program continues to be supported 

by Federal funds. When no longer needed for the original 

program or project, the equipment may be used in other activities 

currently or previously supported by a Federal agency. 

2. The grantee or subgrantee shall also make equipment available 

for use on other projects or programs currently or previously 

supported by the Federal Government, providing such use will 

not interfere with the work on the projects or program for which 

it was originally acquired. First preference for other use shall be 

given to other programs or projects supported by the awarding 

agency. User fees should be considered if appropriate. 

3. Notwithstanding the encouragement in § 13.25(a) to earn 

program income, the grantee or subgrantee must not use 

equipment acquired with grant funds to provide services for 

a fee to compete unfairly with private companies that provide 

equivalent services, unless specifically permitted or contemplated 

by Federal statute. 

4. When acquiring replacement equipment, the grantee or 

subgrantee may use the equipment to be replaced as a trade-in 

or sell the property and use the proceeds to offset the cost of the 

replacement property, subject to the approval of the awarding 

agency. 

d. Management requirements. Procedures for managing equipment 

(including replacement equipment), whether acquired in whole 

or in part with grant funds, until disposition takes place will, as a 

minimum, meet the following requirements: 

1. Property records must be maintained that include a description 

of the property, a serial number or other identification number, the 

source of property, who holds title, the acquisition date, and cost 

of the property, percentage of Federal participation in the cost of 

the property, the location, use and condition of the property, and 

any ultimate disposition data including the date of disposal and 

sale price of the property. 

C- Appendix C: 44 CFR Part 13, Subparts A-D 
2. A physical inventory of the property must be taken and the results 

reconciled with the property records at least once every two 

years. 

3. A control system must be developed to ensure adequate 

safeguards to prevent loss, damage, or theft of the property. Any 

loss, damage, or theft shall be investigated. 

4. Adequate maintenance procedures must be developed to keep 

the property in good condition. 

5. If the grantee or subgrantee is authorized or required to sell the 

property, proper sales procedures must be established to ensure 

the highest possible return. 

e. Disposition. When original or replacement equipment acquired under 

a grant or subgrant is no longer needed for the original project or 

program or for other activities currently or previously supported 

by a Federal agency, disposition of the equipment will be made as 

follows: 

1. Items of equipment with a current per-unit fair market value of 

less than $5,000 may be retained, sold or otherwise disposed of 

with no further obligation to the awarding agency. 

2. Items of equipment with a current per unit fair market value in 

excess of $5,000 may be retained or sold and the awarding 

agency shall have a right to an amount calculated by multiplying 

the current market value or proceeds from sale by the awarding 

agency’s share of the equipment. 

3. In cases where a grantee or subgrantee fails to take appropriate 

disposition actions, the awarding agency may direct the grantee 

or subgrantee to take excess and disposition actions. 

f. Federal equipment. In the event a grantee or subgrantee is provided 

federally-owned equipment: 

1. Title will remain vested in the Federal Government. 

2. Grantees or subgrantees will manage the equipment in 
 

accordance with Federal agency rules and procedures, and 
 

submit an annual inventory listing.



3. When the equipment is no longer needed, the grantee or 

subgrantee will request disposition instructions from the Federal 

agency. 

Appendix C: 44 CFR Part 13, Subparts A-D C-
g. Right to transfer title. The Federal awarding agency may reserve 

the right to transfer title to the Federal Government or a third part 

named by the awarding agency when such a third party is otherwise 

eligible under existing statutes. Such transfers shall be subject to the 

following standards: 

1. The property shall be identified in the grant or otherwise made 

known to the grantee in writing. 

2. The Federal awarding agency shall issue disposition instruction 

within 120 calendar days after the end of the Federal support 

of the project for which it was acquired. If the Federal awarding 

agency fails to issue disposition instructions within the 120 

calendar-day period the grantee shall follow § 13.32(e). 

3. When title to equipment is transferred, the grantee shall be paid 

an amount calculated by applying the percentage of participation 

in the purchase to the current fair market value of the property. 

§.13.33..Supplies. 

a. Title. Title to supplies acquired under a grant or subgrant will vest, 

upon acquisition, in the grantee or subgrantee respectively. 

b. Disposition. If there is a residual inventory of unused supplies 

exceeding $5,000 in total aggregate fair market value upon 

termination or completion of the award, and if the supplies are not 

needed for any other federally sponsored programs or projects, the 

grantee or subgrantee shall compensate the awarding agency for its 

share. 

§.13.34..Copyrights. 

The Federal awarding agency reserves a royalty-free, nonexclusive, 

and irrevocable license to reproduce, publish or otherwise use, and to 

authorize others to use, for Federal Government purposes: 

a. The copyright in any work developed under a grant, subgrant, or 

contract under a grant or subgrant; and 

b. Any rights of copyright to which a grantee, subgrantee or a 
 

contractor purchases ownership with grant support.
 


§.13.35..Subawards.to.debarred.and.suspended.parties. 

Grantees and subgrantees must not make any award or permit any 

award (subgrant or contract) at any tier to any party which is debarred or 

C-0 Appendix C: 44 CFR Part 13, Subparts A-D 
suspended or is otherwise excluded from or ineligible for participation in 

Federal assistance programs under Executive Order 12549, ‘‘Debarment 

and Suspension.’’ 

§.13.36..Procurement. 

a. States. When procuring property and services under a grant, a State 

will follow the same policies and procedures it uses for procurements 

from its non-Federal funds. The State will ensure that every purchase 

order or other contract includes any clauses required by Federal 

statutes and executive orders and their implementing regulations. 

Other grantees and subgrantees will follow paragraphs (b) through (i) 

in this section. 

b. Procurement standards. 

1. Grantees and subgrantees will use their own procurement 

procedures which reflect applicable State and local laws 

and regulations, provided that the procurements conform to 

applicable Federal law and the standards identified in this 

section. 

2. Grantees and subgrantees will maintain a contract administration 

system which ensures that contractors perform in accordance 

with the terms, conditions, and specifications of their contracts or 

purchase orders. 

3. Grantees and subgrantees will maintain a written code of 

standards of conduct governing the performance of their 

employees engaged in the award and administration of contracts. 

No employee, officer or agent of the grantee or subgrantee shall 

participate in selection, or in the award or administration of a 

contract supported by Federal funds if a conflict of interest, real 

or apparent, would be involved. Such a conflict would arise when: 

i.		 The employee, officer or agent, 

ii.		 Any member of his immediate family, 

iii. His or her partner, or 

iv.	 	An organization which employs, or is about to employ, any 

of the above, has a financial or other interest in the firm 

selected for award. The grantee’s or subgrantee’s officers, 

employees or agents will neither solicit nor accept gratuities, 

favors or anything of monetary value from contractors, 

Appendix C: 44 CFR Part 13, Subparts A-D C-
potential contractors, or parties to subagreements. Grantee 

and subgrantees may set minimum rules where the financial 

interest is not substantial or the gift is an unsolicited item 

of nominal intrinsic value. To the extent permitted by State 

or local law or regulations, such standards or conduct 

will provide for penalties, sanctions, or other disciplinary 

actions for violations of such standards by the grantee’s and 

subgrantee’s officers, employees, or agents, or by contractors 

or their agents. The awarding agency may in regulation 

provide additional prohibitions relative to real, apparent, or 

potential conflicts of interest. 

4. Grantee and subgrantee procedures will provide for a review of 

proposed procurements to avoid purchase of unnecessary or 

duplicative items. Consideration should be given to consolidating 

or breaking out procurements to obtain a more economical 

purchase. Where appropriate, an analysis will be made of lease 

versus purchase alternatives, and any other appropriate analysis 

to determine the most economical approach. 

5. To foster greater economy and efficiency, grantees and 

subgrantees are encouraged to enter into State and local 

intergovernmental agreements for procurement or use of 

common goods and services. 

6. Grantees and subgrantees are encouraged to use Federal excess 

and surplus property in lieu of purchasing new equipment and 

property whenever such use is feasible and reduces project 

costs. 

7. Grantees and subgrantees are encouraged to use value 

engineering clauses in contracts for construction projects 

of sufficient size to offer reasonable opportunities for cost 

reductions. Value engineering is a systematic and creative 

analysis of each contract item or task to ensure that its essential 

function is provided at the overall lower cost. 

8. Grantees and subgrantees will make awards only to responsible 

contractors possessing the ability to perform successfully 

under the terms and conditions of a proposed procurement. 

Consideration will be given to such matters as contractor 

integrity, compliance with public policy, record of past 

performance, and financial and technical resources. 

C- Appendix C: 44 CFR Part 13, Subparts A-D 
9. Grantees and subgrantees will maintain records sufficient to 

detail the significant history of a procurement. These records will 

include, but are not necessarily limited to the following: rationale 

for the method of procurement, selection of contract type, 

contractor selection or rejection, and the basis for the contract 

price. 

10.Grantees and subgrantees will use time and material type 

contracts only: 

i.		 After a determination that no other contract is suitable, and 

ii.		 If the contract includes a ceiling price that the contractor 

exceeds at its own risk. 

11.Grantees and subgrantees alone will be responsible, in 

accordance with good administrative practice and sound 

business judgment, for the settlement of all contractual and 

administrative issues arising out of procurements. These issues 

include, but are not limited to source evaluation, protests, 

disputes, and claims. These standards do not relieve the grantee 

or subgrantee of any contractual responsibilities under its 

contracts. Federal agencies will not substitute their judgment for 

that of the grantee or subgrantee unless the matter is primarily 

a Federal concern. Violations of law will be referred to the local, 

State, or Federal authority having proper jurisdiction. 

12.Grantees and subgrantees will have protest procedures to handle 

and resolve disputes relating to their procurements and shall in 

all instances disclose information regarding the protest to the 

awarding agency. A protestor must exhaust all administrative 

remedies with the grantee and subgrantee before pursuing a 

protest with the Federal agency. Reviews of protests by the 

Federal agency will be limited to: 

i.		 Violations of Federal law or regulations and the standards of 

this section (violations of State or local law will be under the 

jurisdiction of State or local authorities) and 

ii.		 Violations of the grantee’s or subgrantee’s protest procedures 

for failure to review a complaint or protest. Protests received 

by the Federal agency other than those specified above will 

be referred to the grantee or subgrantee. 

c.		Competition. 

Appendix C: 44 CFR Part 13, Subparts A-D C-
1. All procurement transactions will be conducted in a manner 

providing full and open competition consistent with the standards 

of section 13.36. Some of the situations considered to be 

restrictive of competition include but are not limited to: 

i.		 Placing unreasonable requirements on firms in order for them 

to qualify to do business, 

ii.		 Requiring unnecessary experience and excessive bonding, 

iii. Noncompetitive pricing practices between firms or between 

affiliated companies, 

iv.	 	Noncompetitive awards to consultants that are on retainer 

contracts, 

v.	 	Organizational conflicts of interest, 

vi. Specifying only a ‘‘brand name’’ product instead of 

allowing ‘‘an equal’’ product to be offered and describing 

the performance of other relevant requirements of the 

procurement, and 

vii. Any arbitrary action in the procurement process. 

2. Grantees and subgrantees will conduct procurements in a 

manner that prohibits the use of statutorily or administratively 

imposed in-State or local geographical preferences in the 

evaluation of bids or proposals, except in those cases where 

applicable Federal statutes expressly mandate or encourage 

geographic preference. Nothing in this section preempts State 

licensing laws. When contracting for architectural and engineering 

(A/E) services, geographic location may be a selection criteria 

provided its application leaves an appropriate number of qualified 

firms, given the nature and size of the project, to compete for the 

contract. 

3. Grantees will have written selection procedures for procurement 

transactions. These procedures will ensure that all solicitations: 

i.		 Incorporate a clear and accurate description of the 

technical requirements for the material, product, or service 

to be procured. Such description shall not, in competitive 

procurements, contain features which unduly restrict 

competition. The description may include a statement of the 

qualitative nature of the material, product or service to be 

procured, and when necessary, shall set forth those minimum 

C- Appendix C: 44 CFR Part 13, Subparts A-D 
essential characteristics and standards to which it must 

conform if it is to satisfy its intended use. Detailed product 

specifications should be avoided if at all possible. When it is 

impractical or uneconomical to make a clear and accurate 

description of the technical requirements, a ‘‘brand name or 

equal’’ description may be used as a means to define the 

performance or other salient requirements of a procurement. 

The specific features of the named brand which must be met 

by offerors shall be clearly stated; and 

ii.		 Identify all requirements which the offerors must fulfill and all 

other factors to be used in evaluating bids or proposals. 

4. Grantees and subgrantees will ensure that all prequalified lists of 

persons, firms, or products which are used in acquiring goods 

and services are current and include enough qualified sources to 

ensure maximum open and free competition. Also, grantees and 

subgrantees will not preclude potential bidders from qualifying 

during the solicitation period. 

d. Methods of procurement to be followed: 

1. Procurement by small purchase procedures. Small purchase 

procedures are those relatively simple and informal procurement 

methods for securing services, supplies, or other property that 

do not cost more than the simplified acquisition threshold fixed 

at 41 U.S.C. 403(11) (currently set at $100,000). If small purchase 

procedures are used, price or rate quotations shall be obtained 

from an adequate number of qualified sources. 

2. Procurement by sealed bids (formal advertising). Bids are publicly 

solicited and a firm-fixed-price contract (lump sum or unit price) 

is awarded to the responsible bidder whose bid, conforming 

with all the material terms and conditions of the invitation 

for bids, is the lowest in price. The sealed bid method is the 

preferred method for procuring construction, if the conditions in § 

13.36(d)(2)(i) apply. 

i.		 In order for sealed bidding to be feasible, the following 

conditions should be present: 

A. A complete, adequate, and realistic specification or 

purchase description is available; 

B. Two or more responsible bidders are willing and able to 

compete effectively and for the business; and 

Appendix C: 44 CFR Part 13, Subparts A-D C-
C. The procurement lends itself to a firm fixed price contract 

and the selection of the successful bidder can be made 

principally on the basis of price. 

ii. If sealed bids are used, the following requirements apply: 

A. The invitation for bids will be publicly advertised and bids 

shall be solicited from an adequate number of known 

suppliers, providing them sufficient time prior to the date 

set for opening the bids; 

B. The invitation for bids, which will include any specifications 

and pertinent attachments, shall define the items or 

services in order for the bidder to properly respond; 

C. All bids will be publicly opened at the time and place 

prescribed in the invitation for bids; 

D. A firm fixed-price contract award will be made in 

writing to the lowest responsive and responsible bidder. 

Where specified in bidding documents, factors such as 

discounts, transportation cost, and life cycle costs shall be 

considered in determining which bid is lowest. Payment 

discounts will only be used to determine the low bid when 

prior experience indicates that such discounts are usually 

taken advantage of; and 

E. Any or all bids may be rejected if there is a sound 

documented reason. 

3. Procurement by competitive proposals. The technique of 

competitive proposals is normally conducted with more than 

one source submitting an offer, and either a fixed-price or costreimbursement type contract is awarded. It is generally used 

when conditions are not appropriate for the use of sealed bids. If 

this method is used, the following requirements apply: 

i.		 Requests for proposals will be publicized and identify all 

evaluation factors and their relative importance. Any response 

to publicized requests for proposals shall be honored to the 

maximum extent practical; 

ii.		 Proposals will be solicited from an adequate number of 

qualified sources; 

iii. Grantees and subgrantees will have a method for conducting 

technical evaluations of the proposals received and for 

selecting awardees; 

C- Appendix C: 44 CFR Part 13, Subparts A-D 
iv.	 	Awards will be made to the responsible firm whose proposal 

is most advantageous to the program, with price and other 

factors considered; and 

v.	 	Grantees and subgrantees may use competitive proposal 

procedures for qualifications-based procurement of 

architectural/engineering (A/E) professional services whereby 

competitors’ qualifications are evaluated and the most 

qualified competitor is selected, subject to negotiation of 

fair and reasonable compensation. The method, where 

price is not used as a selection factor, can only be used in 

procurement of A/E professional services. It cannot be used 

to purchase other types of services though A/E firms are a 

potential source to perform the proposed effort. 

4. Procurement by noncompetitive proposals is procurement 

through solicitation of a proposal from only one source, or after 

solicitation of a number of sources, competition is determined 

inadequate. 

i.		 Procurement by noncompetitive proposals may be used 

only when the award of a contract is infeasible under small 

purchase procedures, sealed bids or competitive proposals 

and one of the following circumstances applies: 

A. The item is available only from a single source; 

B. The public exigency or emergency for the requirement will 

not permit a delay resulting from competitive solicitation; 

C. The awarding agency authorizes noncompetitive 

proposals; or 

D. After solicitation of a number of sources, competition is 

determined inadequate. 

ii.		 Cost analysis, i.e., verifying the proposed cost data, the 

projections of the data, and the evaluation of the specific 

elements of costs and profits, is required. 

iii. Grantees and subgrantees may be required to submit the 

proposed procurement to the awarding agency for pre-award 

review in accordance with paragraph (g) of this section. 

e. Contracting with small and minority firms, women’s business 

enterprise and labor surplus area firms. 

Appendix C: 44 CFR Part 13, Subparts A-D C-
1. The grantee and subgrantee will take all necessary affirmative 

steps to assure that minority firms, women’s business 

enterprises, and labor surplus area firms are used when possible. 

2. Affirmative steps shall include: 

i.		 Placing qualified small and minority businesses and women’s 

business enterprises on solicitation lists; 

ii.		 Assuring that small and minority businesses, and women’s 

business enterprises are solicited whenever they are potential 

sources; 

iii. Dividing total requirements, when economically feasible, into 

smaller tasks or quantities to permit maximum participation 

by small and minority business, and women’s business 

enterprises; 

iv.	 	Establishing delivery schedules, where the requirement 

permits, which encourage participation by small and minority 

business, and women’s business enterprises; 

v.	 	Using the services and assistance of the Small Business 

Administration, and the Minority Business Development 

Agency of the Department of Commerce; and 

vi. Requiring the prime contractor, if subcontracts are to be 

let, to take the affirmative steps listed in paragraphs (e)(2) (i) 

through (v) of this section. 

f. Contract cost and price. 

1. Grantees and subgrantees must perform a cost or price analysis 

in connection with every procurement action including contract 

modifications. The method and degree of analysis is dependent 

on the facts surrounding the particular procurement situation, but 

as a starting point, grantees must make independent estimates 

before receiving bids or proposals. A cost analysis must be 

performed when the offeror is required to submit the elements 

of his estimated cost, e.g., under professional, consulting, and 

architectural engineering services contracts. A cost analysis will 

be necessary when adequate price competition is lacking, and 

for sole source procurements, including contract modifications or 

change orders, unless price reasonableness can be established 

on the basis of a catalog or market price of a commercial product 

sold in substantial quantities to the general public or based on 

C- Appendix C: 44 CFR Part 13, Subparts A-D 
prices set by law or regulation. A price analysis will be used in all 

other instances to determine the reasonableness of the proposed 

contract price. 

2. Grantees and subgrantees will negotiate profit as a separate 

element of the price for each contract in which there is no price 

competition and in all cases where cost analysis is performed. 

To establish a fair and reasonable profit, consideration will be 

given to the complexity of the work to be performed, the risk 

borne by the contractor, the contractor’s investment, the amount 

of subcontracting, the quality of its record of past performance, 

and industry profit rates in the surrounding geographical area for 

similar work. 

3. Costs or prices based on estimated costs for contracts under 

grants will be allowable only to the extent that costs incurred or 

cost estimates included in negotiated prices are consistent with 

Federal cost principles (see § 13.22). Grantees may reference 

their own cost principles that comply with the applicable Federal 

cost principles. 

4. The cost plus a percentage of cost and percentage of 
 

construction cost methods of contracting shall not be used.
 


g. Awarding agency review. 

1. Grantees and subgrantees must make available, upon request 

of the awarding agency, technical specifications on proposed 

procurements where the awarding agency believes such review 

is needed to ensure that the item and/or service specified is 

the one being proposed for purchase. This review generally will 

take place prior to the time the specification is incorporated into 

a solicitation document. However, if the grantee or subgrantee 

desires to have the review accomplished after a solicitation 

has been developed, the awarding agency may still review the 

specifications, with such review usually limited to the technical 

aspects of the proposed purchase. 

2. Grantees and subgrantees must on request make available for 

awarding agency pre-award review procurement documents, 

such as requests for proposals or invitations for bids, 

independent cost estimates, etc. when: 

Appendix C: 44 CFR Part 13, Subparts A-D C-
i. A grantee’s or subgrantee’s procurement procedures or 

operation fails to comply with the procurement standards in 

this section; or 

ii. The procurement is expected to exceed the simplified 

acquisition threshold and is to be awarded without 

competition or only one bid or offer is received in response to 

a solicitation; or 

iii. The procurement, which is expected to exceed the simplified 

acquisition threshold, specifies a ‘‘brand name’’ product; or 

iv.	 	The proposed award is more than the simplified acquisition 

threshold and is to be awarded to other than the apparent low 

bidder under a sealed bid procurement; or 

v.	 	A proposed contract modification changes the scope of a 

contract or increases the contract amount by more than the 

simplified acquisition threshold. 

3. A grantee or subgrantee will be exempt from the pre-award 

review in paragraph (g)(2) of this section if the awarding agency 

determines that its procurement systems comply with the 

standards of this section. 

i.		 A grantee or subgrantee may request that its procurement 

system be reviewed by the awarding agency to determine 

whether its system meets these standards in order for its 

system to be certified. Generally, these reviews shall occur 

where there is a continuous high-dollar funding, and thirdparty contracts are awarded on a regular basis. 

ii.		 A grantee or subgrantee may self certify its procurement 

system. Such self-certification shall not limit the awarding 

agency’s right to survey the system. Under a self-certification 

procedure, awarding agencies may wish to rely on written 

assurances from the grantee or subgrantee that it is 

complying with these standards. A grantee or subgrantee will 

cite specific procedures, regulations, standards, etc., as being 

in compliance with these requirements and have its system 

available for review. 

h. Bonding requirements. For construction or facility improvement 

contracts or subcontracts exceeding the simplified acquisition 

threshold, the awarding agency may accept the bonding policy and 

requirements of the grantee or subgrantee provided the awarding 

C-0 Appendix C: 44 CFR Part 13, Subparts A-D 
agency has made a determination that the awarding agency’s 
 

interest is adequately protected. If such a determination has not 
 

been made, the minimum requirements shall be as follows:
 


1. A bid guarantee from each bidder equivalent to five percent of the 

bid price. The ‘‘bid guarantee’’ shall consist of a firm commitment 

such as a bid bond, certified check, or other negotiable 

instrument accompanying a bid as assurance that the bidder will, 

upon acceptance of his bid, execute such contractual documents 

as may be required within the time specified. 

2. A performance bond on the part of the contractor for 100 percent 

of the contract price. A ‘‘performance bond’’ is one executed 

in connection with a contract to secure fulfillment of all the 

contractor’s obligations under such contract. 

3. A payment bond on the part of the contractor for 100 percent 

of the contract price. A ‘‘payment bond’’ is one executed in 

connection with a contract to assure payment as required by law 

of all persons supplying labor and material in the execution of the 

work provided for in the contract. 

i.		Contract provisions. A grantee’s and subgrantee’s contracts must 

contain provisions in paragraph (i) of this section. Federal agencies 

are permitted to require changes, remedies, changed conditions, 

access and records retention, suspension of work, and other clauses 

approved by the Office of Federal Procurement Policy. 

1. Administrative, contractual, or legal remedies in instances where 

contractors violate or breach contract terms, and provide for such 

sanctions and penalties as may be appropriate. (Contracts more 

than the simplified acquisition threshold) 

2. Termination for cause and for convenience by the grantee or 

subgrantee including the manner by which it will be effected and 

the basis for settlement. (All contracts in excess of $10,000) 

3. Compliance with Executive Order 11246 of September 24, 

1965, entitled ‘‘Equal Employment Opportunity,’’ as amended 

by Executive Order 11375 of October 13, 1967, and as 

supplemented in Department of Labor regulations (41 CFR 

chapter 60). (All construction contracts awarded in excess of 

$10,000 by grantees and their contractors or subgrantees) 

4. Compliance with the Copeland ‘‘Anti-Kickback’’ Act (18 U.S.C. 

874) as supplemented in Department of Labor regulations (29 

Appendix C: 44 CFR Part 13, Subparts A-D C-
CFR Part 3). (All contracts and subgrants for construction or 

repair) 

5. Compliance with the Davis-Bacon Act (40 U.S.C. 276a to 276a–7) 

as supplemented by Department of Labor regulations (29 CFR 

part 5). (Construction contracts in excess of $2000 awarded 

by grantees and subgrantees when required by Federal grant 

program legislation) 

6. Compliance with Sections 103 and 107 of the Contract Work 

Hours and Safety Standards Act (40 U.S.C. 327–330) as 

supplemented by Department of Labor regulations (29 CFR Part 

5). (Construction contracts awarded by grantees and subgrantees 

in excess of $2000, and in excess of $2500 for other contracts 

which involve the employment of mechanics or laborers) 

7. Notice of awarding agency requirements and regulations 

pertaining to reporting. 

8. Notice of awarding agency requirements and regulations 

pertaining to patent rights with respect to any discovery or 

invention which arises or is developed in the course of or under 

such contract. 

9. Awarding agency requirements and regulations pertaining to 

copyrights and rights in data. 

10.Access by the grantee, the subgrantee, the Federal grantor 

agency, the Comptroller General of the United States, or any of 

their duly authorized representatives to any books, documents, 

papers, and records of the contractor which are directly pertinent 

to that specific contract for the purpose of making audit, 

examination, excerpts, and transcriptions. 

11.Retention of all required records for three years after grantees or 

subgrantees make final payments and all other pending matters 

are closed. 

12.Compliance with all applicable standards, orders, or requirements 

issued under section 306 of the Clean Air Act (42 U.S.C. 1857(h)), 

section 508 of the Clean Water Act (33 U.S.C. 1368), Executive 

Order 11738, and Environmental Protection Agency regulations 

(40 CFR part 15). (Contracts, subcontracts, and subgrants of 

amounts in excess of $100,000) 

C- Appendix C: 44 CFR Part 13, Subparts A-D 
13.Mandatory standards and policies relating to energy efficiency 

which are contained in the state energy conservation plan issued 

in compliance with the Energy Policy and Conservation Act (Pub. 

L. 94–163, 89 Stat. 871). 

[53 FR 8078, 8087, Mar. 11, 1988, as amended at 60 FR 19639, 19645, 

Apr. 19, 1995] 

§.13.37..Subgrants. 

a. States. States shall follow state law and procedures when awarding 

and administering subgrants (whether on a cost reimbursement or 

fixed amount basis) of financial assistance to local and Indian tribal 

governments. States shall: 

1. Ensure that every subgrant includes any clauses required by 

Federal statute and executive orders and their implementing 

regulations; 

2. Ensure that subgrantees are aware of requirements imposed 

upon them by Federal statute and regulation; 

3. Ensure that a provision for compliance with § 13.42 is placed in 

every cost reimbursement subgrant; and 

4. Conform any advances of grant funds to subgrantees 

substantially to the same standards of timing and amount that 

apply to cash advances by Federal agencies. 

b. All other grantees. All other grantees shall follow the provisions of 

this part which are applicable to awarding agencies when awarding 

and administering subgrants (whether on a cost reimbursement or 

fixed amount basis) of financial assistance to local and Indian tribal 

governments. Grantees shall: 

1. Ensure that every subgrant includes a provision for compliance 

with this part; 

2. Ensure that every subgrant includes any clauses required by 

Federal statute and executive orders and their implementing 

regulations; and 

3. Ensure that subgrantees are aware of requirements imposed 

upon them by Federal statutes and regulations. 

c. Exceptions. By their own terms, certain provisions of this part do not 

apply to the award and administration of subgrants: 

Appendix C: 44 CFR Part 13, Subparts A-D C-
1. Section 13.10; 

2. Section 13.11; 

3. The letter-of-credit procedures specified in Treasury Regulations 

at 31 CFR part 205, cited in § 13.21; and 

4. Section 13.50. 

Reports,.Records.Retention,.and.Enforcement 

§.13.40..Monitoring.and.reporting.program.performance. 

a. Monitoring by grantees. Grantees are responsible for managing the 

day-to-day operations of grant and subgrant supported activities. 

Grantees must monitor grant and subgrant supported activities to 

assure compliance with applicable Federal requirements and that 

performance goals are being achieved. Grantee monitoring must 

cover each program, function or activity. 

b. Nonconstruction performance reports. The Federal agency may, if 

it decides that performance information available from subsequent 

applications contains sufficient information to meet its programmatic 

needs, require the grantee to submit a performance report only upon 

expiration or termination of grant support. Unless waived by the 

Federal agency this report will be due on the same date as the final 

Financial Status Report. 

1. Grantees shall submit annual performance reports unless the 

awarding agency requires quarterly or semi-annual reports. 

However, performance reports will not be required more 

frequently than quarterly. Annual reports shall be due 90 days 

after the grant year, quarterly or semi-annual reports shall be 

due 30 days after the reporting period. The final performance 

report will be due 90 days after the expiration or termination of 

grant support. If a justified request is submitted by a grantee, the 

Federal agency may extend the due date for any performance 

report. Additionally, requirements for unnecessary performance 

reports may be waived by the Federal agency. 

2. Performance reports will contain, for each grant, brief information 

on the following: 

i.		 A comparison of actual accomplishments to the objectives 

established for the period. Where the output of the project 

C- Appendix B: 44 CFR Part 206, Subparts C and G–L 
can be quantified, a computation of the cost per unit of 

output may be required if that information will be useful. 

ii.		 The reasons for slippage if established objectives were not 

met. 

iii. Additional pertinent information including, when appropriate, 

analysis and explanation of cost overruns or high unit costs. 

3. Grantees will not be required to submit more than the original and 

two copies of performance reports. 

4. Grantees will adhere to the standards in this section in 

prescribing performance reporting requirements for subgrantees. 

c. Construction performance reports. For the most part, on-site 

technical inspections and certified percentage-of completion data 

are relied on heavily by Federal agencies to monitor progress 

under construction grants and subgrants. The Federal agency will 

require additional formal performance reports only when considered 

necessary, and never more frequently than quarterly. 

d. Significant developments. Events may occur between the scheduled 

performance reporting dates which have significant impact upon 

the grant or subgrant supported activity. In such cases, the grantee 

must inform the Federal agency as soon as the following types of 

conditions become known: 

1. Problems, delays, or adverse conditions which will materially 

impair the ability to meet the objective of the award. This 

disclosure must include a statement of the action taken, or 

contemplated, and any assistance needed to resolve the 

situation. 

2. Favorable developments which enable meeting time schedules 

and objectives sooner or at less cost than anticipated or 

producing more beneficial results than originally planned. 

e. Federal agencies may make site visits as warranted by program 

needs. 

f. Waivers, extensions. 

1. Federal agencies may waive any performance report required by 

this part if not needed. 

Appendix B: 44 CFR Part 206, Subparts C and G–L C-
2. The grantee may waive any performance report from a 

subgrantee when not needed. The grantee may extend the due 

date for any performance report from a subgrantee if the grantee 

will still be able to meet its performance reporting obligations to 

the Federal agency. 

§.13.41..Financial.reporting. 

a. General. 

1. Except as provided in paragraphs (a) (2) and (5) of this section, 

grantees will use only the forms specified in paragraphs (a) 

through (e) of this section, and such supplementary or other 

forms as may from time to time be authorized by OMB, for: 

i.		 Submitting financial reports to Federal agencies, or 

ii.		 Requesting advances or reimbursements when letters of 

credit are not used. 

2. Grantees need not apply the forms prescribed in this section 

in dealing with their subgrantees. However, grantees shall not 

impose more burdensome requirements on subgrantees. 

3. Grantees shall follow all applicable standard and supplemental 

Federal agency instructions approved by OMB to the extend 

required under the Paperwork Reduction Act of 1980 for use 

in connection with forms specified in paragraphs (b) through 

(e) of this section. Federal agencies may issue substantive 

supplementary instructions only with the approval of OMB. 

Federal agencies may shade out or instruct the grantee to 

disregard any line item that the Federal agency finds unnecessary 

for its decisionmaking purposes. 

4. Grantees will not be required to submit more than the original and 

two copies of forms required under this part. 

5. Federal agencies may provide computer outputs to grantees 

to expedite or contribute to the accuracy of reporting. Federal 

agencies may accept the required information from grantees 

in machine usable format or computer printouts instead of 

prescribed forms. 

6. Federal agencies may waive any report required by this section if 

not needed. 

C- Appendix C: 44 CFR Part 13, Subparts A-D 
7. Federal agencies may extend the due date of any financial report 

upon receiving a justified request from a grantee. 

b. Financial Status Report. 

1. Form. 	 Grantees will use Standard Form 269 or 269A, 

Financial Status Report, to report the status of funds for all 

nonconstruction grants and for construction grants when required 

in accordance with paragraph (e)(2)(iii) of this section. 

2. Accounting basis. Each grantee will report program outlays 

and program income on a cash or accrual basis as prescribed 

by the awarding agency. If the Federal agency requires accrual 

information and the grantee’s accounting records are not normally 

kept on the accural basis, the grantee shall not be required to 

convert its accounting system but shall develop such accrual 

information through and analysis of the documentation on hand. 

3. Frequency. The Federal agency may prescribe the frequency of 

the report for each project or program. However, the report will 

not be required more frequently than quarterly. If the Federal 

agency does not specify the frequency of the report, it will be 

submitted annually. A final report will be required upon expiration 

or termination of grant support. 

4. Due date. When reports are required on a quarterly or semiannual 

basis, they will be due 30 days after the reporting period. When 

required on an annual basis, they will be due 90 days after the 

grant year. Final reports will be due 90 days after the expiration or 

termination of grant support. 

c. Federal Cash Transactions Report. 

1. Form. 

i.		 For grants paid by letter or credit, Treasury check advances 

or electronic transfer of funds, the grantee will submit the 

Standard Form 272, Federal Cash Transactions Report, and 

when necessary, its continuation sheet, Standard Form 272a, 

unless the terms of the award exempt the grantee from this 

requirement. 

ii.		 These reports will be used by the Federal agency to monitor 

cash advanced to grantees and to obtain disbursement or 

outlay information for each grant from grantees. The format 

of the report may be adapted as appropriate when reporting 

Appendix C: 44 CFR Part 13, Subparts A-D C-
is to be accomplished with the assistance of automatic data 

processing equipment provided that the information to be 

submitted is not changed in substance. 

2. Forecasts of Federal cash requirements. Forecasts of Federal 

cash requirements may be required in the ‘‘Remarks’’ section of 

the report. 

3. Cash in hands of subgrantees. When considered necessary 

and feasible by the Federal agency, grantees may be required 

to report the amount of cash advances in excess of three days’ 

needs in the hands of their subgrantees or contractors and to 

provide short narrative explanations of actions taken by the 

grantee to reduce the excess balances. 

4. Frequency and due date. Grantees must submit the report no 

later than 15 working days following the end of each quarter. 

However, where an advance either by letter of credit or electronic 

transfer of funds is authorized at an annualized rate of one million 

dollars or more, the Federal agency may require the report to 

be submitted within 15 working days following the end of each 

month. 

d. Request for advance or reimbursement. 

1. Advance payments. Requests for Treasury check advance 

payments will be submitted on Standard Form 270, Request 

for Advance or Reimbursement. (This form will not be used for 

drawdowns under a letter of credit, electronic funds transfer or 

when Treasury check advance payments are made to the grantee 

automatically on a predetermined basis.) 

2. Reimbursements. Requests for reimbursement under 

nonconstruction grants will also be submitted on Standard Form 

270. (For reimbursement requests under construction grants, see 

paragraph (e)(1) of this section.) 

3. The frequency for submitting payment requests is treated in 
 

paragraph (b)(3) of this section.



e. Outlay report and request for reimbursement for construction 

programs. 

1. Grants that support construction activities paid by reimbursement 

method. 

C- Appendix C: 44 CFR Part 13, Subparts A-D 
i.		 Requests for reimbursement under construction grants will be 

submitted on Standard Form 271, Outlay Report and Request 

for Reimbursement for Construction Programs. Federal 

agencies may, however, prescribe the Request for Advance 

or Reimbursement form, specified in paragraph (d) of this 

section, instead of this form. 

ii.		 The frequency for submitting reimbursement requests is 

treated in paragraph (b)(3) of this section. 

2. Grants that support construction activities paid by letter of credit, 

electronic funds transfer or Treasury check advance. 

i.		 When a construction grant is paid by letter of credit, 

electronic funds transfer or Treasury check advances, 

the grantee will report its outlays to the Federal agency 

using Standard Form 271, Outlay Report and Request for 

Reimbursement for Construction Programs. The Federal 

agency will provide any necessary special instruction. 

However, frequency and due date shall be governed by 

paragraphs (b) (3) and (4) of this section. 

ii.		 When a construction grant is paid by Treasury check 

advances based on periodic requests from the grantee, 

the advances will be requested on the form specified in 

paragraph (d) of this section. 

iii. The Federal agency may substitute the Financial Status 

Report specified in paragraph (b) of this section for the Outlay 

Report and Request for Reimbursement for Construction 

Programs. 

3. Accounting basis. The accounting basis for the Outlay Report 

and Request for Reimbursement for Construction Programs shall 

be governed by paragraph (b)(2) of this section. 

§.13.42..Retention.and.access.requirements.for.records. 

a. Applicability. 

1. This section applies to all financial and programmatic records, 

supporting documents, statistical records, and other records of 

grantees or subgrantees which are: 

i.		 Required to be maintained by the terms of this part, program 

regulations or the grant agreement, or 

Appendix C: 44 CFR Part 13, Subparts A-D C-
ii.		 Otherwise reasonably considered as pertinent to program 

regulations or the grant agreement. 

2. This section does not apply to records maintained by 

contractors or subcontractors. For a requirement to place a 

provision concerning records in certain kinds of contracts, see § 

13.36(i)(10). 

b. Length of retention period. 

1. Except as otherwise provided, records must be retained for three 

years from the starting date specified in paragraph (c) of this 

section. 

2. If any litigation, claim, negotiation, audit or other action involving 

the records has been started before the expiration of the 3-year 

period, the records must be retained until completion of the 

action and resolution of all issues which arise from it, or until the 

end of the regular 3-year period, whichever is later. 

3. To avoid duplicate recordkeeping, awarding agencies may make 

special arrangements with grantees and subgrantees to retain 

any records which are continuously needed for joint use. The 

awarding agency will request transfer of records to its custody 

when it determines that the records possess long-term retention 

value. When the records are transferred to or maintained by the 

Federal agency, the 3-year retention requirement is not applicable 

to the grantee or subgrantee. 

c. Starting date of retention period. 

1. General. When grant support is continued or renewed at annual 

or other intervals, the retention period for the records of each 

funding period starts on the day the grantee or subgrantee 

submits to the awarding agency its single or last expenditure 

report for that period. However, if grant support is continued or 

renewed quarterly, the retention period for each year’s records 

starts on the day the grantee submits its expenditure report for 

the last quarter of the Federal fiscal year. In all other cases, the 

retention period starts on the day the grantee submits its final 

expenditure report. If an expenditure report has been waived, the 

retention period starts on the day the report would have been 

due. 

2. Real property and equipment records. The retention period for 

real property and equipment records starts from the date of the 

C-0 Appendix C: 44 CFR Part 13, Subparts A-D 
disposition or replacement or transfer at the direction of the 

awarding agency. 

3. Records for income transactions after grant or subgrant support. 

In some cases grantees must report income after the period of 

grant support. Where there is such a requirement, the retention 

period for the records pertaining to the earning of the income 

starts from the end of the grantee’s fiscal year in which the 

income is earned. 

4. Indirect cost rate proposals, cost allocations plans, etc. This 

paragraph applies to the following types of documents, and their 

supporting records: indirect cost rate computations or proposals, 

cost allocation plans, and any similar accounting computations of 

the rate at which a particular group of costs is chargeable (such 

as computer usage chargeback rates or composite fringe benefit 

rates). 

i.		 If submitted for negotiation. If the proposal, plan, or other 

computation is required to be submitted to the Federal 

Government (or to the grantee) to form the basis for 

negotiation of the rate, then the 3-year retention period for its 

supporting records starts from the date of such submission. 

ii.		 If not submitted for negotiation. If the proposal, plan, or other 

computation is not required to be submitted to the Federal 

Government (or to the grantee) for negotiation purposes, 

then the 3-year retention period for the proposal plan, or 

computation and its supporting records starts from end of 

the fiscal year (or other accounting period) covered by the 

proposal, plan, or other computation. 

d. Substitution of microfilm. Copies made by microfilming, 

photocopying, or similar methods may be substituted for the original 

records. 

e. Access to records. 

1. Records of grantees and subgrantees. The awarding agency 

and the Comptroller General of the United States, or any of their 

authorized representatives, shall have the right of access to any 

pertinent books, documents, papers, or other records of grantees 

and subgrantees which are pertinent to the grant, in order to make 

audits, examinations, excerpts, and transcripts. 

Appendix C: 44 CFR Part 13, Subparts A-D C-
2. Expiration of right of access. 	 The rights of access in this section 

must not be limited to the required retention period but shall last 

as long as the records are retained. 

f. Restrictions on public access. The Federal Freedom of Information 

Act (5 U.S.C. 552) does not apply to records Unless required by 

Federal, State, or local law, grantees and subgrantees are not 

required to permit public access to their records. 

§.13.43..Enforcement. 

a. Remedies for noncompliance. If a grantee or subgrantee materially 

fails to comply with any term of an award, whether stated in a 

Federal statute or regulation, an assurance, in a State plan or 

application, a notice of award, or elsewhere, the awarding agency 

may take one or more of the following actions, as appropriate in the 

circumstances: 

1. Temporarily withhold cash payments pending correction of 

the deficiency by the grantee or subgrantee or more severe 

enforcement action by the awarding agency, 

2. Disallow (that is, deny both use of funds and matching credit for) 

all or part of the cost of the activity or action not in compliance, 

3. Wholly or partly suspend or terminate the current award for the 

grantee’s or subgrantee’s program, 

4. Withhold further awards for the program, or 

5. Take other remedies that may be legally available. 

b. Hearings, appeals. In taking an enforcement action, the awarding 

agency will provide the grantee or subgrantee an opportunity for 

such hearing, appeal, or other administrative proceeding to which 

the grantee or subgrantee is entitled under any statute or regulation 

applicable to the action involved. 

c. Effects of suspension and termination. Costs of grantee or 

subgrantee resulting from obligations incurred by the grantee or 

subgrantee during a suspension or after termination of an award are 

not allowable unless the awarding agency expressly authorizes them 

in the notice of suspension or termination or subsequently. Other 

grantee or subgrantee costs during suspension or after termination 

which are necessary and not reasonably avoidable are allowable if: 

C- Appendix C: 44 CFR Part 13, Subparts A-D 
1. The costs result from obligations which were properly incurred by 

the grantee or subgrantee before the effective date of suspension 

or termination, are not in anticipation of it, and, in the case of a 

termination, are noncancellable, and, 

2. The costs would be allowable if the award were not suspended 

or expired normally at the end of the funding period in which 

the termination takes effect. (d) Relationship to Debarment and 

Suspension. The enforcement remedies identified in this section, 

including suspension and termination, do not preclude grantee or 

subgrantee from being subject to ‘‘Debarment and Suspension’’ 

under E.O. 12549 (see § 13.35). 

§.13.44..Termination.for.convenience. 

Except as provided in § 13.43 awards may be terminated in whole or in 

part only as follows: 

a. By the awarding agency with the consent of the grantee or 

subgrantee in which case the two parties shall agree upon the 

termination conditions, including the effective date and in the case of 

partial termination, the portion to be terminated, or 

b. By the grantee or subgrantee upon written notification to the 

awarding agency, setting forth the reasons for such termination, the 

effective date, and in the case of partial termination, the portion to 

be terminated. However, if, in the case of a partial termination, the 

awarding agency determines that the remaining portion of the award 

will not accomplish the purposes for which the award was made, the 

awarding agency may terminate the award in its entirety under either 

§ 13.43 or paragraph (a) of this section. 

SuBPART.D—AFTER-THE-GRANT.REquIREMENTS 

§.13.50..Closeout. 

a. General. The Federal agency will close out the award when it 

determines that all applicable administrative actions and all required 

work of the grant has been completed. 

b. Reports. Within 90 days after the expiration or termination of the 

grant, the grantee must submit all financial, performance, and other 

reports required as a condition of the grant. Upon request by the 

grantee, Federal agencies may extend this timeframe. These may 

include but are not limited to: 

Appendix C: 44 CFR Part 13, Subparts A-D C-
1. Final performance or progress report. 

2. Financial Status Report (SF 269) or Outlay Report and Request 

for Reimbursement for Construction Programs (SF–271) (as 

applicable.) 

3. Final request for payment (SF–270) (if applicable). 

4. Invention disclosure (if applicable). 

5. Federally-owned property report: 	In accordance with § 13.32(f), a 

grantee must submit an inventory of all federally owned property 

(as distinct from property acquired with grant funds) for which it is 

accountable and request disposition instructions from the Federal 

agency of property no longer needed. 

c. Cost adjustment. The Federal agency will, within 90 days after 

receipt of reports in paragraph (b) of this section, make upward or 

downward adjustments to the allowable costs. 

d. Cash adjustments. 

1. The Federal agency will make prompt payment to the grantee for 

allowable reimbursable costs. 

2. The grantee must immediately refund to the Federal agency any 

balance of unobligated (unencumbered) cash advanced that is 

not authorized to be retained for use on other grants. 

§.13.51..Later.disallowances.and.adjustments. 

The closeout of a grant does not affect: 

a. The Federal agency’s right to disallow costs and recover funds on 

the basis of a later audit or other review; 

b. The grantee’s obligation to return any funds due as a result of later 

refunds, corrections, or other transactions; 

c. Records retention as required in § 13.42; 

d. Property management requirements in §§ 13.31 and 13.32; and 

e. Audit requirements in § 13.26. 

§.13.52..Collection.of.amounts.due. 

a. Any funds paid to a grantee in excess of the amount to which the 

grantee is finally determined to be entitled under the terms of the 

C- Appendix C: 44 CFR Part 13, Subparts A-D 
award constitute a debt to the Federal Government. If not paid within 

a reasonable period after demand, the Federal agency may reduce 

the debt by: 

1. Making an administrative offset against other requests for 
 

reimbursements,
 


2. Withholding advance payments otherwise due to the grantee, or 

3. Other action permitted by law. 

b. Except where otherwise provided by statutes or regulations, 

the Federal agency will charge interest on an overdue debt in 

accordance with the Federal Claims Collection Standards (4 

CFR Chapter II). The date from which interest is computed is not 

extended by litigation or the filing of any form of appeal. 

Appendix C: 44 CFR Part 13, Subparts A-D C-