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Disaster Assistance; Federal Assistance to Individuals and Households
Note: EPA no longer updates this information, but it may be useful as a reference or resource.
[Federal Register: September 30, 2002 (Volume 67, Number 189)]
[Rules and Regulations]
[Page 61445-61460]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr30se02-19]
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FEDERAL EMERGENCY MANAGEMENT AGENCY
44 CFR Part 206
RIN 3067-AD25
Disaster Assistance; Federal Assistance to Individuals and Households
AGENCY: Federal Emergency Management Agency (FEMA).
ACTION: Interim final rule.
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SUMMARY: This interim final rule implements subsection 206(a) of the
Disaster Mitigation Act of 2000 by consolidating ``Temporary Housing
Assistance'' and ``Individual and Family Grant Programs'' into a single
program called ``Federal Assistance to Individuals and Households.''
Through this consolidation we are attempting to streamline the
provision of assistance to disaster victims.
DATES: Effective Date: This rule is effective on September 30, 2002.
Applicability Date: This rule applies to Emergencies and Major
Disasters declared on or after October 15, 2002.
Comment Date: Please submit written comments on or before April 15,
2003.
ADDRESSES: Please send any comments to the Rules Docket Clerk, Office
of the General Counsel, Federal Emergency Management Agency, room 840,
500 C. Street, SW., Washington, DC 20472, or (fax) (202) 646-4536, or
(e-mail) rules@fema.gov.
FOR FURTHER INFORMATION CONTACT: Michael Hirsch; Response and Recovery
Directorate; (202) 646-4099, or (e-mail) at Michael.Hirsch@fema.gov. or
Lumumba Yancey, Response and Recovery Directorate, (202) 646-3939, or
(e-mail) at Lumumba.Yancey@fema.gov.
SUPPLEMENTARY INFORMATION: Pursuant to the enactment of subsection
206(a) of the Disaster Mitigation Act of 2000, Pub. L. 106-390,
Congress effectively combined into one section of the Robert T.
Stafford Disaster Relief and Emergency Assistance Act (``the Stafford
Act'') what previously had been two separate provisions. The first is
the previous version of section 408 of the Stafford Act, 42 U.S.C.
5174, entitled ``Temporary Housing Assistance.'' The second is section
411 of the Stafford Act, 42 U.S.C. 5178, entitled ``Individual and
Family Grant Programs.'' This consolidation of sections 408 and 411 of
the Stafford Act becomes effective on October 15, 2002.
When we published the proposed rule to implement the new
Individuals and Households Program (``IHP'') authority, we solicited
comments on a wide variety of issues. In response we have received
comments from twenty States, as well as the National Emergency
Management Agency (NEMA), the International Association of Emergency
Managers (IAEM), and one local government. Many of the comments we
received expressed similar reactions to the issues which were raised in
the proposed rule. In addition, we received a number of comments on the
concept of a Memorandum of Understanding which we had planned to use in
the course of our implementation of the new IHP program. This
Supplementary Information discussion describes the comments we received
on the proposed rule, as well as the decisions we made in response to
the public's input. To facilitate a review of the comments and our
decision-making, the balance of this discussion is divided under
headings that describe the various issues that this rulemaking raises.
FEMA v. State Administration of IHP
Even before FEMA published the proposed IHP rule, a number of
States had expressed a desire to actively participate in the
administration of IHP. We identified this as a significant issue when
we published the proposed rule, and most of the States that provided
comments addressed this issue. Although one commenter expressed the
belief that IHP would function most efficiently if FEMA was
consistently responsible for the implementation of the entire program,
a substantial majority of the commenters felt that the IHP process
should provide States with opportunities to be active partners in the
administration of the new program. Virtually all of the States
expressed approval of FEMA's willingness to provide four different
options for the implementation of the ``Other Needs'' assistance that
is authorized by subsections 408(e) and (f) of the Stafford Act, 42
U.S.C. 5174(e) and (f). These options ranged from a program which is
administered exclusively by FEMA, to one that is administered by FEMA
with substantial State involvement, to one that is administered by the
State with substantial FEMA assistance, to a final option pursuant to
which the State would administer the entire ``Other Needs'' assistance
with minimal FEMA participation. See 206.120 of the interim final rule.
Several commenters questioned whether FEMA is authorized to reimburse
State administrative costs when FEMA is administering the program with
State involvement in the program. These comments are based on the fact
that subsection 408(f) of the Stafford Act explicitly authorizes FEMA
to make grants to cover State ``Other Needs'' administrative expenses
only when the States is administering the program. We have determined
that because there is no explicit authority for FEMA to provide
reimbursement to States when FEMA is administering the program under
subsection 408(e) of the Act, no such reimbursement is authorized.
Therefore, we are now only offering three options to the State for the
implementation of the ``Other Needs'' assistance program--a program
administered exclusively by FEMA, one administered by the State with
substantial FEMA assistance, and one administered by the State with
minimal FEMA participation.
Whichever option a State chooses in the context of the ``Other
Needs'' assistance, FEMA will always provide 75 percent of the grant
funds, and the State is obliged to provide the balance of the ``Other
Needs'' assistance. Although FEMA initially expressed a desire for all
States to choose by May 1, 2002, a particular option for the method of
administering ``Other Needs'' assistance during the balance of this
calendar year, we recognize that an early decision on this important
issue is not feasible for most States, so we decided not to require
such a decision immediately. However, after the interim final rule is
published we expect that States will become familiar with the new IHP
and will as a result become more comfortable making such choices
reasonably promptly.
One of the consistent themes in the State comments we received
relates to the potential for appeals of IHP decisions and the
possibility that States may want to play a role as advocate for
disaster victims. A number of the States expressed an inclination for
FEMA to administer IHP, but also expressed a desire to be able to play
an advocacy role for disaster victims. A number of States also were
concerned with the provision of the proposed rule which indicates that
FEMA can take up to 90 days to respond to appeals from applicants for
IHP assistance. See 44 CFR 206.115(f) of the proposed rule. We retained
the 90 day appeal provision in the interim final rule at 44 CFR
206.115(f) because under section 423(b) of the Stafford Act any appeal
decision must be rendered within 90 days. However, the overwhelming
majority of appeals in the context of the previous temporary housing
and Individual and Family Grant programs are routinely answered in less
than 30 days, so we anticipate that FEMA will not normally need 90 days
to respond to appeals under IHP. FEMA will work with States to ensure
that they will be able to provide advisory and advocacy
[[Page 61447]]
assistance to IHP applicants whose applications for assistance under
IHP are pending.
State Administrative Plan and Other IHP Documentation
As we described in the proposed rule and the Supplementary
Information discussion relating to that document, we initially intended
to ask each State to sign an annual Memorandum of Understanding (MOU)
with FEMA in which each State would identify in advance of the
occurrence of disasters the extent to which the State would participate
in the administration of the Other Needs Assistance portion of IHP
during that year. One State expressed a concern that FEMA's proposal to
require States to execute MOUs, in addition to our plan to develop
State Management Plans (in lieu of the previous Individual and Family
Grant State Administrative Plans) and an MOU Support Guide, constituted
excessive IHP documentation. The commenter suggested that this type of
IHP documentation be limited as much as possible so as not to
overburden the system. On the other hand, several States expressed a
concern that FEMA has not provided adequate documentation to clearly
describe the process by which IHP will be administered.
FEMA and all of the States that commented on the proposed rule
realize that FEMA needs to develop documentation that is adequate to
clarify the rules for the administration of IHP and to ensure
consistency and fairness in its implementation throughout the United
States. We also recognize that it would be counterproductive for FEMA
to require the use of excessive documentation in our development of the
program's basic ground rules. Therefore, we decided to consolidate the
MOU as a ``pre-planning portion'' into the State Administrative Plan
for Other Needs Assistance. We believe that a single consolidated
document as outlined in 206.120(b) will balance the need for clarity
and conciseness when either the State or FEMA administers Other Needs
Assistance.
State Administration of Disaster Housing Operations
We also pointed out in the proposed rule that States would be given
the option of participating in the management of ``direct'' temporary
housing assistance (i.e., the provision of mobile homes and travel
trailers) under section 408 of the Stafford Act. See 42 U.S.C.
5174(c)(1)(B). Several entities questioned whether FEMA is authorized
to permit States to participate in the administration of the provision
of housing assistance. Because there is no explicit authority for
States to participate in the administration of housing activities under
subsection 408(c) of the Stafford Act (as there is under subsection
408(f) of the Act with respect to the provision of ``Other Needs''
assistance), we have concluded that Congress did not intend to
authorize State participation in disaster housing activities under
subsection 408(c) of the Act. Therefore, we have decided not to retain
the option of allowing States to participate in the administration of
``direct'' temporary housing assistance. Accordingly, the interim final
IHP rule will not contain language permitting the State to administer
``direct'' temporary housing activities. However, this decision will
not impact the general statutory mandate that States provide group
sites, complete with utilities, in the course of the provision of
``direct housing'' assistance.
Period of IHP Assistance
As we pointed out when we published the proposed IHP rule,
subsection 408(a)(3) of the previous version of section 408 of the
Stafford Act stated ``Federal financial and operational assistance
under this section shall continue for no longer than 18 months.* * * ''
Section 411 of the Stafford Act does not contain any specific time
limitation relating to the Individual and Family Grant Program. On the
other hand, under the amended version of section 408, 42 U.S.C.
5174(c)(1)(B)(ii), the only type of temporary housing assistance that
is time limited (to 18 months) is ``direct'' temporary housing
assistance (e.g., mobile homes and travel trailers). When we published
the proposed rule we indicated that we were inclined to establish a
standard period of 18 months for IHP assistance to be available. See
206.110(e) of the proposed rule. However, we also solicited comments on
this aspect of IHP.
We received a wide variety of comments on this issue. A number of
States believed that there should be a standard period of IHP
assistance up to 18 months. One State suggested that there should be a
standard period of IHP assistance, but it should extend to 24 months.
Another State believed there should not be a standard period of IHP
assistance, but that instead FEMA should continue to provide such
assistance until the maximum amount of assistance (i.e., the statutory
cap of $25,000) was reached. Some comments also expressed the belief
that ``Other Needs'' assistance, which is intended only to address
immediate necessary expenses and serious needs, need not remain
available for as long as 18 months.
Although we have decided to retain a regulatory deadline beyond
which IHP assistance will normally not be available (See 206.110(e) of
the interim final rule), the interim final rule also gives FEMA's
Associate Director for Response and Recovery the discretionary
authority to extend this period under extraordinary circumstances if an
extension would be in the public interest. Although we have opted to
establish an 18 month period for the provision of IHP assistance, we
note that the statutory cap for such assistance has already been set at
$25,000, and in most cases that cap would be exceeded within 18
months--indeed, in many urban areas where FEMA might provide rental
assistance while a disaster victim's home is being repaired, the
$25,000 cap could be reached well before 18 months have passed. With
respect to the concern about the implicit limitation of ``Other Needs''
assistance to address only immediate and short-term needs, we believe
that it is not likely that we will continue to receive ``Other Needs''
applications for extended periods, so it is not necessary to establish
a shorter regulatory limit on the period during which such assistance
may be available.
$5,000 Cap on Housing Repair Assistance
When we published the proposed rule on this new provision of the
Stafford Act, we explained that subsection 408(c)(2), 42 U.S.C.
5174(c)(2), contains a $5,000 cap on the amount of assistance that FEMA
is authorized to provide for the repair of owner-occupied private
residences which have been damaged by disasters. Under the previous
provision of section 408 of the Stafford Act, there was no cap relating
to this type of assistance. We received a number of comments on this
new provision of the Stafford Act, and all of them expressed the belief
that this cap would imprudently limit FEMA's ability to provide
meaningful housing repair assistance to many disaster victims. We agree
with this concern, and as a result are seeking a modification to this
provision. However, until such a change is made, FEMA does not have the
discretion to exceed this $5,000 cap for housing repairs to homeowners.
Permanent Housing Authority
In the proposed rule, which we published on January 23, 2002, we
described the new provision of the Stafford Act that authorizes FEMA to
[[Page 61448]]
provide assistance for the construction of housing in insular areas and
other remote locations to replace primary residences that are destroyed
during disasters. That provision, which appears at subsection 408(c)(4)
of the Stafford Act, 42 U.S.C. 5174(c)(4), authorizes FEMA to ``provide
financial assistance or direct assistance to individuals or households
to construct permanent housing in insular areas outside the continental
United States and in other remote locations * * * '' when no
alternative housing resources are available and when other types of
housing assistance are not feasible or cost effective.
Virtually all of the comments we received on this provision of the
rule were supportive of the new authority. However, one commenter
suggested that FEMA interpret this new authority more expansively when
affordable housing shortages exist in many States, particularly where
new types of permanent housing are available at very reasonable rates.
The commenter suggested that FEMA should consider the provision of
permanent housing construction whenever it might be cost-effective,
regardless of the remoteness of the area where the disaster occurred.
We do not believe this proposal is consistent with the new statutory
authority, so we declined to revise this provision of the rule. See 44
CFR 206.117(b)(4) of the interim final rule.
$10,000 Housing Replacement Authority
We noted when we published the proposed rule in January of 2002
that the revised version of section 408 of the Stafford Act contains a
new authority to provide replacement housing assistance, but that
authority is capped at $10,000. See subsection 408(c)(3) of the Act, 42
U.S.C. 5174(c)(3), which authorizes ``financial assistance for the
replacement of owner-occupied private residences damaged by a major
disaster.'' Our proposed rule to implement this new provision indicated
that the authority would only be used where an owner-occupied residence
could be replaced ``in its entirety'' for $10,000 or less, and we
speculated that this authority would not be used often because it would
usually not be feasible to replace the housing of disaster victims for
this limited amount. See section 206.117(b)(3) of the proposed rule.
In response we received a comment that suggested we may have
interpreted 42 U.S.C. 5174(c)(3) too narrowly and that in fact the new
authority is not necessarily limited to situations where housing can be
replaced entirely for $10,000 or less. Therefore, we have revised the
interim final rule to reflect the fact that the authority can be used
in FEMA's discretion when disaster victims who qualify for such
assistance have received at least $10,000 of damage to their homes and
can apply such funds toward the cost of acquiring a new permanent
residence. See section 206.117(b)(3) of the interim final rule.
Transient Accommodations
The FEMA regulation that has been used to implement the earlier
version of the Stafford Act's temporary housing authority contains a
reference to FEMA's provision of ``transient accommodations.'' See 44
CFR 206.110(g)(i)(ii). Transient accommodation assistance has
historically been provided by FEMA for short periods to reimburse
disaster victims whose homes have been made uninhabitable by disasters
for short term lodging accommodations (such as hotel rooms) before they
are provided rental assistance. We described in the proposed rule our
intention to eliminate from the final rule the explicit reference to
``transient accommodations'' because we intend to continue providing
such short-term assistance in the form of lodging expense reimbursement
under subsection 408(c)(1)(A) of the Stafford Act, 42 U.S.C.
5174(c)(1)(A), which authorizes FEMA to provide ``financial assistance
to individuals or households to rent alternative housing
accommodations, existing rental units, manufactured housing,
recreational vehicles, or other readily fabricated dwellings.''
We received only one comment expressing a concern about our
proposal to delete the explicit reference to transient accommodations
in the regulation. That commenter felt that by deleting the reference
to the term, we enable FEMA to subsequently establish a policy of
eliminating such assistance--without having to amend our regulations.
We are certain that we will continue to provide short-term lodging
reimbursement to disaster victims while they are addressing their long-
term housing needs separately. It is also clear under the new version
of section 408 of the Stafford Act that we have the authority to
provide such multiple forms of housing assistance. See subsection
408(b)(2)(B) of the Stafford Act, 42 U.S.C. 5174(b)(2)(B). Therefore,
we have decided not to include an explicit reference to ``transient
accommodations'' in the interim final rule which we are publishing
today, even though there is such a reference in the previous temporary
housing rule, which appears at 44 CFR 206.110(g)(1)(ii).
Flood Insurance Purchase Requirements
We discussed in the proposed IHP rule that paragraphs (A)(iv) and
(B)(ii)(II) of the new version of subsection 408(d)(2) of the Stafford
Act, 42 U.S.C. 5174(d)(2)(A)(iv) and (B)(ii)(II), relate to the
obligation to purchase insurance on disaster housing units that are
provided under the authority of IHP. The insurance purchase mandates
relate to ``hazard insurance'' and ``flood insurance'' (flood insurance
is not typically provided in standard homeowner's insurance policies).
We received no comments relating to our interpretation that the
requirement to purchase ``hazard insurance'' equates to a mandate to
obtain standard homeowner's insurance, rather than requiring the
purchase of insurance to address every conceivable hazard that might
exist in a given location. Therefore, we intend to implement this
aspect of IHP consistent with this thinking.
We also pointed out in the proposed rule that there was an
inconsistency between the flood insurance purchase mandate relating to
the purchase of housing units that FEMA sells under subsection
408(d)(2) of the Stafford Act, 42 U.S.C. 5174(d)(2). 42 U.S.C.
5174(d)(2)(A)(iv) and (d)(2)(B)(ii)(II) mandate that when FEMA sells
housing units to disaster victims, States, local governments, and
voluntary organizations, these entities must agree to purchase and
maintain flood insurance on the housing units. That flood insurance
purchase mandate is not explicitly imposed in the context of sales of
housing units to ``other persons'' under 42 U.S.C. 5174(d)(2)(B). In
addition, the IHP provision relating to replacement housing grants, as
opposed to FEMA's sale of housing units, only requires the purchase of
flood insurance when such housing is located within mapped flood prone
areas. We proposed to interpret these flood insurance purchase mandates
consistent with one another--i.e., to require the purchase of flood
insurance on all three of these types of housing, but only when the
housing is to be located in designated special flood hazard areas. The
comments we received on this issue were all consistent with our
proposal, so we drafted the interim final rule to ensure evenhanded
application of the flood insurance purchase mandate. See 44 CFR
206.110(k)(1).
[[Page 61449]]
Group Flood Insurance Policy
When we published the IHP rule in January we described our proposal
to eliminate the Group Flood Insurance Policy (GFIP). FEMA established
the GFIP in the mid-1990s to address the need for recipients of
Individual and Family Grant (IFG) assistance under section 411 of the
Stafford Act to purchase flood insurance as a condition of their
receipt of IFG assistance. The regulation concerning the GFIP appears
at 44 CFR 206.131(d)(2), which, in turn, relates to a regulation that
was published by FEMA's Federal Insurance Administration (which is now
a part of FEMA's Federal Insurance and Mitigation Administration, or
FIMA) and which appears at 44 CFR 61.17. Under the IFG program,
disaster victims who were eligible for IFG assistance received GFIP
coverage that was paid for out of their IFG benefits.
Most of the States which commented on our proposal to eliminate the
GFIP expressed support for continuation of that program. The basis for
the support of the program relates to the fact that disaster victims
who qualified for IFG assistance generally had low incomes and were not
as able to afford to pay flood insurance premiums as could other
disaster victims. Because the penalty for failing to purchase and
maintain flood insurance as a condition of receiving disaster
assistance under the old IFG program and under the new IHP is a denial
of future disaster assistance, most of the States that commented on our
proposal believed that it would be imprudent not to continue providing
GFIP coverage for low income disaster victims.
We have decided to retain the GFIP under the interim final rule
which we are publishing today. GFIP coverage will be provided to
recipients of ``Other Needs'' assistance pursuant to subsections 408(e)
and (f) of the Stafford Act, 42 U.S.C. 5174(e) and (f). As indicated in
the interim final rule (See 44 CFR 206.119(d) of the rule), GFIP
premiums are considered to be a necessary expense for the purposes of
``Other Needs'' Assistance. The amount of coverage under the GFIP
policies which are issued will be equivalent to the maximum grant
amount established under section 408 of the Stafford Act. We will
coordinate with FEMA's Federal Insurance and Mitigation Administration
in our efforts to implement the GFIP under the ``Other Needs''
Assistance authority.
Privacy Act Issues
When we published the IHP proposed rule we discussed that paragraph
(2) of subsection 408(f) of the Act, 42 U.S.C. 5174(f)(2), contains an
explicit authorization to provide to 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.'' We received a
number of comments relating to this new statutory provision and the
proposed rule, and all of these comments were supportive of the new and
clarified authorization to share such information. Therefore, we have
retained this provision in the interim final rule. See 206.110(j).
Financial Management Guidance
We have added to the proposed rule a new section relating to
financial management issues and the administration of ``Other Needs''
Assistance. This new section appears at section 206.120 of the interim
final rule. Previously we had intended to address the financial
management aspects of the new program in the Memorandum of
Understanding that was to be used in the course of our coordination
with the States on IHP activities. However, based upon comments we
received on the proposed rule, we decided that it would be appropriate
to include in the rule a brief discussion of the financial management
principles that we will be using to implement IHP. These issues are
especially important in the context of decision-making by the States
concerning the role they will play in the administration of IHP (Other
Needs Assistance) activities. Because this provision of the interim
final rule is new, we are taking this opportunity to draw attention to
it and to solicit comment on section 206.120.
Perhaps the most fundamental issue that we would like to point out
relates to the distinction in State Administrative Plans (SAP) between
an administrative option and an administrative plan. See 206.120(b).
The administrative options describe the degree of State and/or FEMA
involvement in administrating Other Needs Assistance. Due to the
systematic constraints to support each of these administrative options,
the ability of a State to amend its chosen administrative option after
a declaration of a disaster is severely limited. The systematic
limitations, however, are less significant when considering amendments
to the administrative plan. See 206.120 (c)(3)(ii). The administrative
plan is only required when a State chooses to administer Other Needs
Assistance. The ability of a State to amend and alter the State
administrative plan may, in general, be done without altering the
administrative option. This is primarily because changes to a State's
administrative plan (completed and provided to FEMA when the State
chooses to administer Other Needs Assistance) will not significantly
impact the administrative option selected by the State to process a
disaster as long as the State continues to administer Other Needs
Assistance.
Conforming Changes to 44 CFR Part 206
We are also making several changes to the other Stafford Act
regulations which appear at 44 CFR Part 206 to ensure consistency
between those regulations and the interim final rule that we are
publishing today. The first change appears at 44 CFR 206.44(a), and it
reflects the fact that on limited occasions FEMA may begin providing
housing assistance under the Individuals and Households Program before
a FEMA-State Agreement has been executed. The second change appears at
44 CFR 206.62(f), and it reflects that the full range of IHP assistance
may be provided in both Presidentially-declared emergencies and major
disasters. The third change relates to 44 CFR 206.101, and that change
indicates that the Temporary Housing Assistance authority remains in
place for emergencies and major disasters that were declared on or
before October 14, 2002. The fourth change relates to 44 CFR 206.131,
and that change indicates that the Individual and Family Grant Program
authority remains in place for major disasters that were declared on or
before October 14, 2002. The final conforming change appears at 44 CFR
206.191(d)(2), and that change updates the Stafford Act's individual
assistance duplication of benefits regulation to reflect the new IHP
authority.
Administrative Procedure Act Determination
We are publishing this interim final rule even though we had
published a notice of proposed rule making. In accordance with 5 U.S.C.
553(d)(3), we find that there is good cause for the interim final rule
to take effect upon publication in the Federal Register in order to
comply with Public Law 106-390, which establishes a deadline for
implementation of the Individuals and Households Program. We invite
comments from the public on this interim final rule. In particular we
invite comments from states, communities or members of the public who
have been impacted by major disasters and who have received assistance
under this new program. Please send comments to FEMA in
[[Page 61450]]
writing on or before April 15, 2003. After we have reviewed and
evaluated the comments we will publish a final rule.
National Environmental Policy Act (NEPA)
We explained when we published the proposed rule that FEMA's rules
implementing NEPA exempt this rule from the preparation of an
Environmental Assessment (EA) or an Environmental Impact Statement
(EIS). See 44 CFR 10.8(d)(2)(xix)(D) and (F). The development of our
IHP regulations is exempt from NEPA because they reflect administrative
changes to the program that would have no effect on the environment.
Although no one disagreed with our determination that this rule is
exempt from the preparation of an EA or an EIS, one commenter suggested
that a statement under the NEPA discussion in the proposed rule was
misleading. We stated that ``we would perform an environmental review
under 44 CFR part 10 on any proposed project that we would fund and
implement under the authorities covered by this rule.'' The commenter
pointed out that this statement could be read more broadly than we
intended and could be interpreted to suggest that FEMA would routinely
perform an EA or EIS in the context of providing IHP assistance. This
is not our intention, and we hope to soon revise our list of
categorical exclusions at 44 CFR 10.8(d)(2) to reflect the enactment
and implementation of the new IHP program.
Paperwork Reduction Act of 1995
This interim final rule contains a collection of information that
is subject to the Paperwork Reduction Act of 1995 (4 U.S.C. Chapter 35)
and has been approved by the Office of Management and Budget (OMB)
under OMB control number 3067-0296. OMB approval expires March 31,
2005. In the proposed rule published in the Federal Register on January
23, 2002, we asked for comments on the proposed collection of
information but did not receive any. Under the Paperwork Reduction Act,
a person may not be penalized for failing to comply with an information
collection that does not display a currently valid OMB control number.
In addition to the collection of information approved under OMB
control number 3067-0296, FEMA had already obtained approval for the
information collection ``Disaster Assistance Registration/Application
for Disaster Assistance,'' under OMB control number 3067-0009. It
expires July 28, 2003. The information from the application form is
used to implement the current versions of sections 408 and 411 of the
Stafford Act. FEMA is taking steps to reduce the information collection
burden independent of the recent amendment to section 408 of the
Stafford Act, to the recent repeal of section 411 of the Stafford Act,
and the information collection requirements contained in this interim
final rule.
The following collection of information requirements are approved
under OMB control number 3067-0296:
Applicants
Title: Request for Approval of Late Application, 8,000 respondents
at 45 minutes per response equals 6,000 annual burden hours. FEMA will
accept late registrations for an additional 60 days after the
registration period ends and will process late registrations for those
applicants who provide written justification for the delay in their
registration.
Title: Request for Continued Assistance (Housing and Medical),
2,000 respondents at 30 minutes per response equals 1,000 annual burden
hours. After the initial assistance, FEMA may provide continued Housing
and Medical reimbursement based on need. Applicants must submit a
written request and information about their permanent housing plans or
receipts (bills) for medical expenses.
Title: Appeal of Program Decision (to include review and use of
supplemental guidance), 30,000 responses at 45 minutes per response
equals 22,500 annual burden hours. Under the provisions of section 423
of the Stafford Act, applicants for assistance from FEMA may appeal any
eligibility determination by submitting a written request and
explanation for the appeal.
States
Title: Review Memorandum of Understanding (MOU) and Guidance
Supplemental, 56 responses at 3 hours per response equals 168 annual
burden hours. The Governor may request the authority to participate in
the administration or management of the Individuals and Households
Program (IHP). A State must sign an agreement, which establishes a
partnership with FEMA for the delivery of the assistance. The agreement
identifies the State's proposed level of support and participation
during disaster recovery.
Title: Development of State Administrative Plans for Financial
Assistance to Address Other Needs (to include Financial Agreement), 56
responses at 3 hours per response equals 168 annual burden hours. The
Governor may request a grant from FEMA to provide financial assistance
to individuals and households in the State under the IHP. So that FEMA
may effectively account for the program costs, the State must provide
an administrative plan that addresses the financial and grants
management mandates that all applicable Federal laws, regulations and
circulars impose, including 44 CFR parts 11 and 13.
Addresses: We ask that you submit any written comments on this
collection of information to the Desk Officer for the Federal Emergency
Management Agency, Office of Management and Budget, Office of
Information and Regulatory Affairs, 725 17th Street, NW., Washington,
DC 20503 on or before October 30, 2002.
For Further Information Contact: Requests for additional
information or copies of the collection of information should be made
to Muriel B. Anderson, Chief, Records Management Section, Program
Services and Systems Branch, Facilities Management and Services
Division, Administration and Resource Planning Directorate, Federal
Emergency Management Agency, 500 C Street, SW, Room 316, Washington, DC
20472, telephone number (202) 646-2625, FAX number (202) 646-3347, or
e-mail address: muriel. anderson@fema.gov.
Regulatory Planning and Review
Regulatory Flexibility Act
When we published the proposed rule we expressed our determination
that there is no need for FEMA to prepare an initial regulatory impact
analysis under the Regulatory Flexibility Act. Section 3 of that Act, 5
U.S.C. 603, requires agencies that promulgate regulations under the
Administrative Procedure Act to prepare and make available for public
comment an initial regulatory flexibility analysis. Agencies are
required in these analyses to describe the impact of regulatory
activities on ``small entities'', which the Act defines as ``small
business concerns'' (under section 3 of the Small Business Act),
``small organizations'' (which is defined as independently owned and
operated non-profit entities that are not dominant in their fields),
and ``small governmental jurisdictions'' (which means governments of
cities, counties, towns, townships, villages, school districts, or
special districts that have populations of less than 50,000). See 5
U.S.C. 601. All of the comments we received on this aspect of the IHP
rule were in accord with our determination, so we remain of the opinion
that there is no need for FEMA to prepare a
[[Page 61451]]
regulatory impact analysis relating to this interim final rule.
Executive Order 12866--Regulatory Planning and Review
In addition, pursuant to Executive Order 12866 we examined whether
this rule would be a ``significant regulatory action'', as that term is
defined at section 3(f) of the Executive Order. E.O. 12866 requires
agencies to assess the costs and benefits of available regulatory
alternatives and, when regulation is necessary, to select regulatory
approaches that maximize net benefits, including potential economic,
environmental, public health and safety effects. A regulatory impact
analysis must be prepared for major rules with economically significant
effects ($100,000,000 in any one year).
Section 3(f) of E.O. 12866 defines ``significant regulatory
action'' as ``any regulatory action that is likely to result in a rule
that may: (1) Have an annual effect on the economy of $100,000,000 or
more or adversely affect in a material way the economy* * *; (2) Create
a serious inconsistency or otherwise interfere with an action taken or
planned by another agency; (3) Materially alter the budgetary impacts
of entitlements, grants, user fees, or loan programs* * *; or (4) Raise
novel legal or policy issues* * *.'' We noted in January that this rule
does not meet the criteria under paragraphs 2, 3, or 4 of this
provision of the Executive Order. In addition, we noted our
determination that this rule is not likely to adversely affect the
economy (under paragraph 1 of this provision of the Executive Order).
Finally, we also noted that because it is likely that FEMA will pay out
in excess of $100,000,000 in most fiscal years under IHP, the rule is
``significant'' pursuant to the definition at section 3(f)(1) of the
Executive Order.
Therefore we prepared an economic impact analysis relating to the
rule when it was published in January. We noted in our analysis that
pursuant to the implementation of IHP there will be a positive impact
on disaster victims, the economies of local and tribal governments, the
economies of States in which disasters occur, and generally on the
health and safety of communities that are struck by disasters. We did
not receive any comments on the economic impact analysis, which we
published along with the proposed IHP rule, so we remain of the opinion
that our analysis remains accurate. The Office of Management and Budget
has reviewed this interim final rule under Executive Order 12866.
Assessment of Regulation on Families
We noted when we published the proposed IHP rule that the provision
of assistance under IHP would have a positive impact on families under
section 654 of the Treasury and General Government Appropriations Act
of 1999, which requires agencies to assess the impact of proposed
agency actions on family well-being, the stability and safety of
families, and the performance of family functions. No commenter
disagreed with our determinations that implementation of IHP would have
a positive impact on families. One commenter did point out that our
proposal to repeal the Group Flood Insurance Program might create a
fiscal burden on IHP recipients who would be required to purchase flood
insurance using their own funds in the event that they received IHP
assistance for insurable real and personal property which is located in
designated special flood hazard areas (i.e., mapped flood prone areas).
Our discussion to retain the Group Flood Insurance Program addresses
this comment. Therefore, we have not revised our earlier determination
that the IHP rule is consistent with section 654 of the Treasury and
General Government Appropriations Act of 1999 and that FEMA's
implementation of IHP would help to stabilize family circumstances in
the aftermath of major disasters.
Executive Orders 11988 and 11990, Floodplain Management and Protection
of Wetlands
We pointed out when we published the proposed IHP rule that most
forms of financial assistance that will be provided pursuant to IHP
will not involve providing either Federal financial assistance relating
to construction and property improvements or conducting Federal
programs that will affect land use. However, we also noted that there
are some activities authorized by the IHP authority that may trigger
the requirements of Executive Orders 11988 and 11990. For example, the
use of Federal funds to construct housing pursuant to subsections
408(c)(3) and (4) of the Stafford Act, 42 U.S.C. 5174(c)(3) and (4),
could trigger the process described in the Executive Orders and FEMA's
implementing regulation, which appears at 44 CFR Part 9. In addition,
if Federal funds were used pursuant to subsection 408(c)(1) of the Act,
42 U.S.C. 5174(c)(1), to construct group sites for the placement of
mobile homes or readily fabricated dwellings for the use of disaster
victims, then FEMA would follow the process described in the Executive
Order and our implementing regulation. We received no comments on this
aspect of the IHP rule, so we are finalizing this rule in accordance
with our earlier explanation of the relationship between the rule and
the Executive Orders.
Executive Order 13132, Federalism
Executive Order 13132 sets forth principles and criteria that
agencies must adhere to in formulating and implementing policies that
have federalism implications and in the development of regulations that
have ``substantial direct effects on the States, on the relationship
between the national government and the States, or on the distribution
of power and responsibilities among the various levels of government.''
The Executive Order requires Federal agencies to examine the statutory
authority supporting any action that would limit the policymaking
discretion of the States, and to the extent practicable must consult
with State and local officials before implementing any such action. As
we indicated when we published the proposed rule relating to this new
disaster assistance program, we met with a number of State
representatives as we were developing the proposed rule, and we have
continued to consult with those representatives in the course of our
development of this interim final rule.
We noted when we published the proposed IHP rule that it does not
have ``substantial direct effects on the States'', and no commenter
disagreed with that determination. Indeed, most of the commenters
expressed support for FEMA's decision to give States the discretion to
participate in the administration of IHP. Therefore, we remain of the
opinion that our issuance of this interim final rule is not in conflict
with Executive Order 13132.
Executive Order 12898, Environmental Justice
Under Executive Order 12898, ``Federal Actions to Address
Environmental Justice in Minority Populations and Low-Income
Populations'', we incorporate environmental justice into our policies
and programs. The Executive Order requires each Federal agency to
conduct its programs, policies and activities that substantially affect
human health or the environment in a manner that ensures those
programs, policies and activities do not have the effect of excluding
persons from participation in, denying persons the benefits of, or
subjecting persons to discrimination because of their race, color, or
national origin.
[[Page 61452]]
We stated when we published the proposed IHP rule that we did not
anticipate that actions under the rule would have a disproportionately
high and adverse human health effect on any segment of the population.
No commenter disagreed with this determination, so at this time we
reiterate our earlier determination that the requirements of this
Executive Order do not apply to this rule.
Executive Order 13175, Consultation and Coordination With Indian Tribal
Governments
Under Executive Order 13175, FEMA may not issue a regulation that
is not required by statute, that significantly or uniquely affects the
communities of Indian tribal governments and that imposes substantial
direct compliance costs on those communities, unless the Federal
government provides the funds necessary to pay the direct compliance
costs incurred by the tribal government or we consult with those
governments. FEMA is required by statute to issue this rule, and, as we
stated when we published the proposed rule, we do not believe that the
rule will significantly and uniquely affect the communities of Indian
tribal governments. Nor do we believe that the rule will impose
substantial direct compliance costs on those communities. Therefore, we
do not believe that the requirements of this Executive Order apply in
the context of our publication of this rule.
List of Subjects in 44 CFR Part 206
Administrative practice and procedure, Community facilities,
Disaster Assistance, Grant programs, Loan programs, Reporting and
recordkeeping requirements.
Accordingly, amend 44 CFR part 206 as follows:
PART 206--FEDERAL DISASTER ASSISTANCE FOR DISASTERS DECLARED ON OR
AFTER NOVEMBER 23, 1988
1. The authority citation of Part 206 continues to read:
Authority: Robert T. Stafford Disaster Relief and Emergency
Assistance Act, 42 U.S.C. 5121-5206; Reorganization Plan No. 3 of
1978, 43 F.R. 41943; 3 CFR, 1978 Comp., p. 329; E.O. 12127, 44 F.R.
19367, 3 CFR, 1979 Comp., p. 376; E.O. 12148, 44 F.R. 43239, 3 CFR,
1979 Comp., p. 412; and E.O. 12673, 54 F.R. 12571, 3 CFR, 1989
Comp., p. 214.
2. Revise Subpart D as follows.
Subpart D--Federal Assistance to Individuals and Households
Sec.
206.110 Federal assistance to individuals and households.
206.111 Definitions.
206.112 Registration period.
206.113 Eligibility factors.
206.114 Criteria for continued assistance.
206.115 Appeals.
206.116 Recovery of funds.
206.117 Housing assistance.
206.118 Disposal of housing units.
206.119 Financial assistance to address other needs.
206.120 State administration of other needs assistance.
Subpart D--Federal Assistance to Individuals and Households
Sec. 206.110 Federal assistance to individuals and households.
(a) Purpose. This section implements the policy and procedures set
forth in section 408 of the Robert T. Stafford Disaster Relief and
Emergency Assistance Act, 42 U.S.C. 5174, as amended by the Disaster
Mitigation Act of 2000. This program provides financial assistance and,
if necessary, direct assistance to eligible individuals and households
who, as a direct result of a major disaster or emergency, have
uninsured or under-insured, necessary expenses and serious needs and
are unable to meet such expenses or needs through other means.
(b) Maximum amount of assistance. No individual or household will
receive financial assistance greater than $25,000 under this subpart
with respect to a single major disaster or emergency. FEMA will adjust
the $25,000 limit annually to reflect changes in the Consumer Price
Index (CPI) for All Urban Consumers that the Department of Labor
publishes.
(c) Multiple types of assistance. One or more types of housing
assistance may be made available under this section to meet the needs
of individuals and households in the particular disaster situation.
FEMA shall determine the appropriate types of housing assistance to be
provided under this section based on considerations of cost
effectiveness, convenience to the individuals and households and the
suitability and availability of the types of assistance. An applicant
is expected to accept the first offer of housing assistance;
unwarranted refusal of assistance may result in the forfeiture of
future housing assistance. Temporary housing and repair assistance
shall be utilized to the fullest extent practicable before other types
of housing assistance.
(d) Date of eligibility. Eligibility for Federal assistance under
this subpart will begin on the date of the incident that results in a
presidential declaration that a major disaster or emergency exists,
except that reasonable lodging expenses that are incurred in
anticipation of and immediately preceding such event may be eligible
for Federal assistance under this chapter.
(e) Period of assistance. FEMA may provide assistance under this
subpart for a period not to exceed 18 months from the date of
declaration. The Associate Director (AD) may extend this period if he/
she determines that due to extraordinary circumstances an extension
would be in the public interest.
(f) Assistance not counted as income. Assistance under this subpart
is not to be counted as income or a resource in the determination of
eligibility for welfare, income assistance or income-tested benefit
programs that the Federal Government funds.
(g) Exemption from garnishment. All assistance provided under this
subpart is exempt from garnishment, seizure, encumbrance, levy,
execution, pledge, attachment, release or waiver. Recipients of rights
under this provision may not reassign or transfer the rights. These
exemptions do not apply to FEMA recovering assistance fraudulently
obtained or misapplied.
(h) Duplication of benefits. In accordance with the requirements of
section 312 of the Stafford Act, 42 U.S.C. 5155, FEMA will not provide
assistance under this subpart when any other source has already
provided such assistance or when such assistance is available from any
other source. In the instance of insured applicants, we will provide
assistance under this subpart only when:
(1) Payment of the applicable benefits are significantly delayed;
(2) Applicable benefits are exhausted;
(3) Applicable benefits are insufficient to cover the housing or
other needs; or
(4) Housing is not available on the private market.
(i) Cost sharing.
(1) Except as provided in paragraph (i)(2) of this section, the
Federal share of eligible costs paid under this subpart shall be 100
percent.
(2) Federal and State cost shares for ``Other Needs'' assistance
under subsections 408 (e) and (f) of the Stafford Act will be as
follows;
(i) The Federal share shall be 75 percent; and
(ii) The non-federal share shall be paid from funds made available
by the State. If the State does not provide the non-Federal share to
FEMA before FEMA begins to provide assistance to individuals and
households under subsection 408(e) of the Stafford Act, FEMA will still
process applications. The State will then be obliged to reimburse FEMA
for the non-Federal
[[Page 61453]]
cost share of such assistance on a monthly basis. If the State does not
provide such reimbursement on a monthly basis, then FEMA will issue a
Bill for Collection to the State on a monthly basis for the duration of
the program. FEMA will charge interest, penalties, and administrative
fees on delinquent Bills for Collection in accordance with the Debt
Collection Improvement Act. Cost shared funds, interest, penalties and
fees owed to FEMA through delinquent Bills for Collections may be
offset from other FEMA disaster assistance programs (i.e. Public
Assistance) from which the State is receiving, or future grant awards
from FEMA or other Federal Agencies. Debt Collection procedures will be
followed as outlined in 44 CFR part 11.
(j) Application of the Privacy Act.
(1) All provisions of the Privacy Act of 1974, 5 U.S.C. 552a, apply
to this subpart. FEMA may not disclose an applicant's record except:
(i) In response to a release signed by the applicant that specifies
the purpose for the release, to whom the release is to be made, and
that the applicant authorizes the release;
(ii) In accordance with one of the published routine uses in our
system of records; or
(iii) As provided in paragraph (j)(2) of this section.
(2) Under section 408(f)(2) of the Stafford Act, 42 U.S.C.
5174(f)(2), FEMA must share applicant information with States in order
for the States to make available any additional State and local
disaster assistance to individuals and households.
(i) States receiving applicant information under this paragraph
must protect such information in the same manner that the Privacy Act
requires FEMA to protect it.
(ii) States receiving such applicant information shall not further
disclose the information to other entities, and shall not use it for
purposes other than providing additional State or local disaster
assistance to individuals and households.
(k) Flood Disaster Protection Act requirement.
(1) The Flood Disaster Protection Act of 1973, Public Law 93-234,
as amended (42 U.S.C. 4106), imposes certain restrictions on federal
financial assistance for acquisition and construction purposes. For the
purpose of this paragraph, financial assistance for acquisition or
construction purposes means assistance to an individual or household to
buy, receive, build, repair or improve insurable portions of a home
and/or to purchase or repair insurable contents. For a discussion of
what elements of a home and contents are insurable, See 44 CFR part 61,
Insurance Coverage and Rates.
(2) Individuals or households that are located in a special flood
hazard area may not receive Federal Assistance for National Flood
Insurance Program (NFIP)--insurable real and/or personal property,
damaged by a flood, unless the community in which the property is
located is participating in the NFIP (See 44 CFR part 59.1), or the
exception in 42 U.S.C. 4105(d) applies. However, if the community in
which the damaged property is located qualifies for and enters the NFIP
during the six-month period following the declaration, the Governor's
Authorized Representative may request a time extension for FEMA (See
Sec. 206.112) to accept registrations and to process assistance
applications in that community.
(3) Flood insurance purchase requirement:
(i) As a condition of the assistance and in order to receive any
Federal assistance for future flood damage to any insurable property,
individuals and households named by FEMA as eligible recipients under
section 408 of the Stafford Act who receive assistance, due to flood
damages, for acquisition or construction purposes under this subpart
must buy and maintain flood insurance, as required in 42 U.S.C. 4012a,
for at least the assistance amount. This applies only to real and
personal property that is in or will be in a designated Special Flood
Hazard Area and that can be insured under the National Flood Insurance
Program.
(A) If the applicant is a homeowner, flood insurance coverage must
be maintained at the address of the flood-damaged property for as long
as the address exists. The flood insurance requirement is reassigned to
any subsequent owner of the flood-damaged address.
(B) If the applicant is a renter, flood insurance coverage must be
maintained on the contents for as long as the renter resides at the
flood-damaged rental unit. The restriction is lifted once the renter
moves from the rental unit.
(C) When financial assistance is used to purchase a dwelling, flood
insurance coverage must be maintained on the dwelling for as long as
the dwelling exists and is located in a designated Special Flood Hazard
Area. The flood insurance requirement is reassigned to any subsequent
owner of the dwelling.
(ii) FEMA may not provide financial assistance for acquisition or
construction purposes to individuals or households who fail to buy and
maintain flood insurance required under paragraph (k)(3)(i) of this
section or required by the Small Business Administration.
(l) Environmental requirements. Assistance provided under this
subpart must comply with the National Environmental Policy Act (NEPA)
and other environmental laws and Executive Orders, consistent with 44
CFR part 10.
(m) Historic preservation. Assistance provided under this subpart
generally does not have the potential to affect historic properties and
thus is exempted from review in accordance with section 106 of the
National Historic Preservation Act, with the exception of ground
disturbing activities and construction related to Sec. Sec.
206.117(b)(1)(ii) (Temporary housing), 206.117(b)(3) (Replacement
housing), and 206.117(b)(4) (Permanent housing construction).
Sec. 206.111 Definitions.
Adequate, alternate housing means housing that accommodates the
needs of the occupants; is within the normal commuting patterns of the
area or is within reasonable commuting distance of work, school, or
agricultural activities that provide over 50 percent of the household
income; and is within the financial ability of the occupant.
Alternative housing resources means any housing that is available
or can quickly be made available in lieu of permanent housing
construction and is cost-effective when compared to permanent
construction costs. Some examples are rental resources, mobile homes
and travel trailers.
Applicant means an individual or household who has applied for
assistance under this subpart.
Assistance from other means includes monetary or in-kind
contributions from voluntary or charitable organizations, insurance,
other governmental programs, or from any sources other than those of
the applicant.
Dependent means someone who is normally claimed as such on the
Federal tax return of another, according to the Internal Revenue Code.
It may also mean the minor children of a couple not living together,
where the children live in the affected residence with the parent or
guardian who does not actually claim them on the tax return.
Displaced applicant means one whose primary residence is
uninhabitable, inaccessible, made unavailable by the landlord (to meet
their disaster housing need) or not functional as a direct result of
the disaster and has no other housing available in the area, i.e., a
secondary home or vacation home.
Effective date of assistance means the date that the applicant was
determined eligible for assistance.
[[Page 61454]]
Eligible hazard mitigation measures are home improvements that an
applicant can accomplish in order to reduce or prevent future disaster
damages to essential components of the home.
Fair market rent means housing market-wide estimates of rents that
provide opportunities to rent standard quality housing throughout the
geographic area in which rental housing units are in competition. The
fair market rent rates applied are those identified by the Department
of Housing and Urban Development as being adequate for existing rental
housing in a particular area.
Financial ability means the applicant's capability to pay housing
costs. If the household income has not changed subsequent to or as a
result of the disaster then the determination is based upon the amount
paid for housing before the disaster. If the household income is
reduced as a result of the disaster then the applicant will be deemed
capable of paying 30 percent of gross post disaster income for housing.
When computing financial ability, extreme or unusual financial
circumstances may be considered by the Regional Director.
Financial assistance means cash that may be provided to eligible
individuals and households, usually in the form of a check or
electronic funds transfer.
Functional means an item or home capable of being used for its
intended purpose.
Household means all persons (adults and children) who lived in the
pre-disaster residence who request assistance under this subpart, as
well as any persons, such as infants, spouse, or part-time residents
who were not present at the time of the disaster, but who are expected
to return during the assistance period.
Housing costs means rent and mortgage payments, including
principal, interest, real estate taxes, real property insurance, and
utility costs.
Inaccessible means as a result of the incident, the applicant
cannot reasonably be expected to gain entry to his or her pre-disaster
residence due to the disruption, or destruction, of access routes or
other impediments to access, or restrictions placed on movement by a
responsible official due to continued health, safety or security
problems.
In-kind contributions mean something other than monetary
assistance, such as goods, commodities or services.
Lodging expenses means expenses for reasonable short-term
accommodations that individuals or households incur in the immediate
aftermath of a disaster. Lodging expenses may include but are not
limited to the cost of brief hotel stays.
Manufactured housing sites means those sites used for the placement
of government or privately owned mobile homes, travel trailers, and
other manufactured housing units, including:
(1) Commercial site, a site customarily leased for a fee, which is
fully equipped to accommodate a housing unit;
(2) Private site, a site that the applicant provides or obtains at
no cost to the Federal Government, complete with utilities; and
(3) Group site, a site provided by the State or local government
that accommodates two or more units and is complete with utilities.
Necessary expense means the cost associated with acquiring an item
or items, obtaining a service, or paying for any other activity that
meets a serious need.
Occupant means a resident of a housing unit.
Owner-occupied means that the residence is occupied by:
(1) The legal owner;
(2) A person who does not hold formal title to the residence and
pays no rent, but is responsible for the payment of taxes or
maintenance of the residence; or
(3) A person who has lifetime occupancy rights with formal title
vested in another.
Permanent housing plan means a realistic plan that, within a
reasonable timeframe, puts the disaster victim back into permanent
housing that is similar to the victim's pre-disaster housing situation.
A reasonable timeframe includes sufficient time for securing funds,
locating a permanent dwelling, and moving into the dwelling.
Primary residence means the dwelling where the applicant normally
lives, during the major portion of the calendar year; or the dwelling
that is required because of proximity to employment, including
agricultural activities, that provide 50 percent of the household's
income.
Reasonable commuting distance means a distance that does not place
undue hardship on an applicant. It also takes into consideration the
traveling time involved due to road conditions, e.g., mountainous
regions or bridges out and the normal commuting patterns of the area.
Safe means secure from disaster-related hazards or threats to
occupants.
Sanitary means free of disaster-related health hazards.
Serious need means the requirement for an item, or service, that is
essential to an applicant's ability to prevent, mitigate, or overcome a
disaster-related hardship, injury or adverse condition.
Significantly delayed means the process has taken more than 30
days.
Uninhabitable means the dwelling is not safe, sanitary or fit to
occupy.
We, our, and us mean FEMA.
Sec. 206.112 Registration period.
(a) Initial period. The standard FEMA registration period is 60
days following the date that the President declares an incident a major
disaster or an emergency.
(b) Extension of the registration period. The regional director or
his/her designee may extend the registration period when the State
requests more time to collect registrations from the affected
population. The Regional Director or his/her designee may also extend
the standard registration period when necessary to establish the same
registration deadline for contiguous counties or States.
(c) Late registrations. After the standard or extended registration
period ends, FEMA will accept late registrations for an additional 60
days. We will process late registrations for those registrants who
provide suitable documentation to support and justify the reason for
the delay in their registration.
Sec. 206.113 Eligibility factors.
(a) Conditions of eligibility. In general, FEMA may provide
assistance to individuals and households who qualify for such
assistance under section 408 of the Stafford Act and this subpart. FEMA
may only provide assistance:
(1) When the individual or household has incurred a disaster-
related necessary expense or serious need in the state in which the
disaster has been declared, without regard to their residency in that
state;
(2) In a situation where the applicant has insurance, when the
individual or household files a claim with their insurance provider for
all potentially applicable types of insurance coverage and the claim is
denied;
(3) In a situation where the applicant has insurance, when the
insured individual or household's insurance proceeds have been
significantly delayed through no fault of his, her or their own, and
the applicant has agreed to repay the assistance to FEMA or the State
from insurance proceeds that he, she or they receive later;
(4) In a situation where the applicant has insurance, when the
insured individual or household's insurance proceeds are less than the
maximum amount of assistance FEMA can authorize and the proceeds are
insufficient to cover the necessary expenses or serious needs;
[[Page 61455]]
(5) In a situation where the applicant has insurance, when housing
is not available on the private market;
(6) In a situation where the applicant has insurance, when the
insured individual or household has accepted all assistance from other
sources for which he, she, or they are eligible, including insurance,
when the insured individual or household's insurance proceeds and all
other assistance are less than the maximum amount of assistance FEMA
can authorize and the proceeds are insufficient to cover the necessary
expense or serious needs;
(7) When the applicant agrees to refund to FEMA or the State any
portion of the assistance that the applicant receives or is eligible to
receive as assistance from another source;
(8) With respect to housing assistance, if the primary residence
has been destroyed, is uninhabitable, or is inaccessible; and
(9) With respect to housing assistance, if a renter's primary
residence is no longer available as a result of the disaster.
(b) Conditions of ineligibility. We may not provide assistance
under this subpart:
(1) For housing assistance, to individuals or households who are
displaced from other than their pre-disaster primary residence;
(2) For housing assistance, to individuals or households who have
adequate rent-free housing accommodations;
(3) For housing assistance, to individuals or households who own a
secondary or vacation residence within reasonable commuting distance to
the disaster area, or who own available rental property that meets
their temporary housing needs;
(4) For housing assistance, to individuals or households who
evacuated the residence in response to official warnings solely as a
precautionary measure and who are able to return to the residence
immediately after the incident;
(5) For housing assistance, for improvements or additions to the
pre-disaster condition of property, except those required to comply
with local and State ordinances or eligible mitigation measures;
(6) To individuals or households who have adequate insurance
coverage and where there is no indication that insurance proceeds will
be significantly delayed, or who have refused assistance from insurance
providers;
(7) To individuals or households whose damaged primary residence is
located in a designated special flood hazard area, and in a community
that is not participating in the National Flood Insurance Program,
except that financial assistance may be provided to rent alternate
housing and for medical, dental, funeral expenses and uninsurable items
to such individuals or households. However, if the community in which
the damaged property is located qualifies for and enters the NFIP
during the six-month period following the declaration then the
individual or household may be eligible;
(8) To individuals or households who did not fulfill the condition
to purchase and maintain flood insurance as a requirement of receiving
previous Federal disaster assistance;
(9) For business losses, including farm businesses and self-
employment; or
(10) For any items not otherwise authorized by this section.
Sec. 206.114 Criteria for continued assistance.
(a) FEMA expects all recipients of assistance under this subpart to
obtain and occupy permanent housing at the earliest possible time. FEMA
may provide continued housing assistance during the period of
assistance, but not to exceed the maximum amount of assistance for the
program, based on need, and generally only when adequate, alternate
housing is not available or when the permanent housing plan has not
been fulfilled through no fault of the applicant.
(b) Additional criteria for continued assistance.
(1) All applicants requesting continued rent assistance must
establish a realistic permanent housing plan no later than the first
certification for continued assistance. Applicants will be required to
provided documentation showing that they are making efforts to obtain
permanent housing.
(2) Applicants requesting continued rent assistance must submit
rent receipts to show that they have exhausted the FEMA rent funds, and
provide documentation identifying the continuing need.
(3) FEMA generally expects that pre-disaster renters will use their
initial rental assistance to obtain permanent housing. However, we may
certify them, during the period of assistance, for continued rent
assistance when adequate, alternate housing is not available, or when
they have not realized a permanent housing plan through no fault of
their own.
(4) FEMA may certify pre-disaster owners for continued rent
assistance, during the period of assistance, when adequate, alternate
housing is not available, or when they have not realized a permanent
housing plan through no fault of their own.
(5) Individuals or households requesting additional repair
assistance will be required to submit information and/or documentation
identifying the continuing need.
(6) Individuals or households requesting additional assistance for
personal property, transportation, medical, dental, funeral, moving and
storage, or other necessary expenses and serious needs will be required
to submit information and/or documentation identifying the continuing
need.
Sec. 206.115 Appeals.
(a) Under the provisions of section 423 of the Stafford Act,
applicants for assistance under this subpart may appeal any
determination of eligibility for assistance made under this subpart.
Applicants must file their appeal within 60 days after the date that we
notify the applicant of the award or denial of assistance. Applicants
may appeal the following:
(1) Eligibility for assistance, including recoupment;
(2) Amount or type of assistance;
(3) Cancellation of an application;
(4) The rejection of a late application;
(5) The denial of continued assistance under Sec. 206.114,
Criteria for continued assistance;
(6) FEMA's intent to collect rent from occupants of a housing unit
that FEMA provides;
(7) Termination of direct housing assistance;
(8) Denial of a request to purchase a FEMA-provided housing unit at
the termination of eligibility;
(9) The sales price of a FEMA-provided housing unit they want to
purchase; or
(10) Any other eligibility-related decision.
(b) Appeals must be in writing and explain the reason(s) for the
appeal. The applicant or person who the applicant authorizes to act on
his or her behalf must sign the appeal. If someone other than the
applicant files the appeal, then the applicant must also submit a
signed statement giving that person authority to represent him, her or
them.
(c) Applicants must appeal to the Regional Director or his/her
designee for decisions made under this subpart, unless FEMA has made a
grant to the State to provide assistance to individuals and households
under Sec. 206.111(a), State administration of other needs assistance;
then the applicant must appeal to the State.
(d) An applicant may ask for a copy of information in his or her
file by writing to FEMA or the State as
[[Page 61456]]
appropriate. If someone other than the applicant is submitting the
request, then the applicant must also submit a signed statement giving
that person authority to represent him or her.
(e) The appropriate FEMA or State program official will notify the
applicant in writing of the receipt of the appeal.
(f) The Regional Director or his/her designee or appropriate State
official will review the original decision after receiving the appeal.
FEMA or the State, as appropriate, will give the appellant a written
notice of the disposition of the appeal within 90 days of the receiving
the appeal. The decision of the appellate authority is final.
Sec. 206.116 Recovery of funds.
(a) The applicant must agree to repay to FEMA (when funds are
provided by FEMA) and/or the State (when funds are provided by the
State) from insurance proceeds or recoveries from any other source an
amount equivalent to the value of the assistance provided. In no event
must the amount repaid to FEMA and/or the State exceed the amount that
the applicant recovers from insurance or any other source.
(b) An applicant must return funds to FEMA and/or the State (when
funds are provided by the State) when FEMA and/or the State determines
that the assistance was provided erroneously, that the applicant spent
the funds inappropriately, or that the applicant obtained the
assistance through fraudulent means.
Sec. 206.117 Housing assistance.
(a) Purpose. FEMA may provide financial or direct assistance under
this section to respond to the disaster-related housing needs of
individuals and households.
(b) Types of housing assistance.
(1) Temporary housing assistance.
(i) Financial assistance. Eligible individuals and households may
receive financial assistance to rent alternate housing resources,
existing rental units, manufactured housing, recreational vehicles, or
other readily fabricated dwellings. FEMA may also provide assistance
for the reasonable cost of any transportation, utility hookups, or
installation of a manufactured housing unit or recreational vehicle to
be used for housing. This includes reimbursement for reasonable short-
term lodging expenses that individuals or households incur in the
immediate aftermath of a disaster.
(A) FEMA will include all members of a pre-disaster household in a
single registration and will provide assistance for one temporary
housing residence, unless the Regional Director or his/her designee
determines that the size or nature of the household requires that we
provide assistance for more than one residence.
(B) FEMA will base the rental assistance on the Department of
Housing and Urban Development's current fair market rates for existing
rental units. FEMA will further base the applicable rate on the
household's bedroom requirement and the location of the rental unit.
(C) All utility costs and utility security deposits are the
responsibility of the occupant except where the utility does not meter
utility services separately and utility services are a part of the
rental charge.
(D) The occupant is responsible for all housing security deposits.
In extraordinary circumstances, the Regional Director or his/her
designee may authorize the payment of security deposits; however, the
owner or occupant must reimburse the full amount of the security
deposit to the Federal Government before or at the time that the
temporary housing assistance ends.
(i) Direct assistance.
(A) FEMA may provide direct assistance in the form of purchased or
leased temporary housing units directly to individuals or households
who lack available housing resources and would be unable to make use of
the assistance provided under paragraph (b)(1)(i) of this section.
(B) FEMA will include all members of a pre-disaster household in a
single application and will provide assistance for one temporary
housing residence, unless the Regional Director or his/her designee
determines that the size or nature of the household requires that we
provide assistance for more than one residence.
(C) Any site upon which a FEMA-provided housing unit is placed must
comply with applicable State and local codes and ordinances, as well as
44 CFR part 9, Floodplain Management and Protection of Wetlands, and 44
CFR part 10, Environmental Considerations, and all other applicable
environmental laws and Executive Orders.
(D) All utility costs and utility security deposits are the
responsibility of the occupant except where the utility does not meter
utility services separately and utility services are a part of the
rental charge.
(E) FEMA-provided or funded housing units may be placed in the
following locations:
(1) A commercial site that is complete with utilities; when the
Regional Director or his/her designee determines that the upgrading of
commercial sites, or installation of utilities on such sites, will
provide more cost-effective, timely and suitable temporary housing than
other types of resources, then Federal assistance may be authorized for
such actions.
(2) A private site that an applicant provides, complete with
utilities; when the Regional Director or his/her designee determines
that the cost of installation or repairs of essential utilities on
private sites will provide more cost effective, timely, and suitable
temporary housing than other types of resources, then Federal
assistance may be authorized for such actions.
(3) A group site that the State or local government provides that
accommodates two or more units and is complete with utilities; when the
Regional Director or his/her designee determines that the cost of
developing a group site provided by the State or local government, to
include installation or repairs of essential utilities on the sites,
will provide more cost effective, timely, and suitable temporary
housing than other types of resources, then Federal assistance may be
authorized for such actions.
(4) A group site provided by FEMA, if the Regional Director or his/
her designee determines that such a site would be more economical or
accessible than one that the State or local government provides.
(F) After the end of the 18-month period of assistance, FEMA may
begin to charge up to the fair market rent rate for each temporary
housing unit provided. We will base the rent charged on the number of
bedrooms occupied and needed by the household. When establishing the
amount of rent, FEMA will take into account the financial ability of
the household.
(G) We may terminate direct assistance for reasons that include,
but are not limited to, the following:
(1) The period of assistance expired under Sec. 206.119(e) and has
not been extended;
(2) Adequate alternate housing is available to the occupant(s);
(3) The occupant(s) obtained housing assistance through either
misrepresentation or fraud;
(4) The occupant(s) failed to comply with any term of the lease/
rental agreement or other rules of the site where the unit is located.
(5) The occupant(s) does not provide evidence documenting that they
are working towards a permanent housing plan.
(H) FEMA will provide a 15 day written notice when initiating the
termination of direct assistance that we
[[Page 61457]]
provide under our lease agreements. This notice will specify the
reasons for termination of assistance and occupancy, the date of
termination, the procedure for appealing the determination, and the
occupant's liability for such additional charges as the Regional
Director or his/her designee deems appropriate after the termination
date, including fair market rent for the unit.
(I) Duplication of benefits may occur when an applicant has
additional living expense insurance benefits to cover the cost of
renting alternate housing. In these instances, FEMA may provide a
temporary housing unit if adequate alternate housing is not available,
or if doing so is in the best interest of the household and the
government. We will establish fair market rent, not to exceed insurance
benefits available.
(2) Repairs.
(i) FEMA may provide financial assistance for the repairs of
uninsured disaster-related damages to an owner's primary residence. The
funds are to help return owner-occupied primary residences to a safe
and sanitary living or functioning condition. Repairs may include
utilities and residential infrastructure (such as private access
routes, privately owned bridge, wells and/or septic systems) damaged by
a major disaster.
(ii) The type of repair FEMA authorizes may vary depending upon the
nature of the disaster. We may authorize repair of items where feasible
or replacement when necessary to insure the safety or health of the
occupant and to make the residence functional.
(iii) FEMA may also provide assistance for eligible hazard
mitigation measures that reduce the likelihood of future damage to
damaged residences, utilities or infrastructure.
(iv) Eligible individuals or households may receive up to $5,000
under this paragraph, adjusted annually to reflect changes in the CPI,
to repair damages to their primary residence without first having to
show that the assistance can be met through other means, except
insurance proceeds.
(v) The individual or household is responsible for obtaining all
local permits or inspections that applicable State or local building
codes may require.
(3) Replacement. FEMA may provide financial assistance under this
paragraph to replace the primary residence of an owner-occupied
dwelling if the dwelling was damaged by the disaster and there was at
least $10,000 of damage (as adjusted annually to reflect changes in the
CPI). The applicant may either replace the dwelling in its entirety for
$10,000 (as adjusted annually to reflect changes in the CPI) or less,
or may use the assistance toward the cost of acquiring a new permanent
residence that is greater in cost than $10,000 (as adjusted annually to
reflect changes in the CPI). All replacement assistance awards must be
individually approved by the Associate Director. The Associate Director
may approve replacement assistance for applicants whose damages are
less than $10,000 in extraordinary circumstances where replacement
assistance is more appropriate than other forms of housing assistance.
(4) Permanent housing construction. FEMA may provide financial or
direct assistance to applicants for the purpose of constructing
permanent housing in insular areas outside the continental United
States and in other remote locations when alternative housing resources
are not available and the types of financial or direct temporary
housing assistance described at paragraph (b)(1) of this section are
unavailable, infeasible, or not cost-effective.
(c) Eligible costs.
(1) Repairs to the primary residence or replacement of items must
be disaster-related and must be of average quality, size, and capacity,
taking into consideration the needs of the occupant. Repairs to the
primary residence are limited to restoration of the dwelling to a safe
and sanitary living or functioning condition and may include:
(i) Repair or replacement of the structural components, including
foundation, exterior walls, and roof;
(ii) Repair or replacement of the structure's windows and doors;
(iii) Repair or replacement of the structure's Heating, Ventilation
and Air Conditioning System;
(iv) Repair or replacement of the structure's utilities, including
electrical, plumbing, gas, water and sewage systems;
(v) Repair or replacement of the structure's interior, including
floors, walls, ceilings, doors and cabinetry;
(vi) Repair to the structure's access and egress, including
privately owned access road and privately owned bridge;
(vii) Blocking, leveling, and anchoring of a mobile home, and
reconnecting or resetting mobile home sewer, water, electrical and fuel
lines and tanks; and
(viii) Items or services determined to be eligible hazard
mitigation measures.
(2) Replacement assistance, will be based on the verified disaster-
related level of damage to the dwelling, or the statutory maximum,
whichever is less.
(3) Permanent housing construction, in general, must be consistent
with current minimal local building codes and standards where they
exist, or minimal acceptable construction industry standards in the
area, including reasonable hazard mitigation measures, and federal
environmental laws and regulations Dwellings will be of average
quality, size and capacity, taking into consideration the needs of the
occupant.
Sec. 206.118 Disposal of housing units.
(a) FEMA may sell housing units purchased under Sec.
206.117(b)(1)(ii), Temporary housing, direct assistance, as follows:
(1) Sale to an applicant.
(i) Sale to the individual or household occupying the unit, if the
occupant lacks permanent housing, has a site that complies with local
codes and ordinances and part 9 of this Title.
(ii) Adjustment to the sales price. FEMA may approve adjustments to
the sales price when selling a housing unit to the occupant of a unit
if the purchaser is unable to pay the fair market value of the home or
unit and when doing so is in the best interest of the applicant and
FEMA.
(iii) FEMA may sell a housing unit to the occupant only on the
condition that the purchaser agrees to obtain and maintain hazard
insurance, as well as flood insurance on the unit if it is or will be
in a designated Special Flood Hazard Area.
(2) Other methods of disposal:
(i) FEMA may sell, transfer, donate, or otherwise make a unit
available directly to a State or other governmental entity, or to a
voluntary organization, for the sole purpose of providing temporary
housing to disaster victims in major disasters and emergencies. As a
condition of the sale, transfer, or donation, or other method of
provision, the State, governmental entity, or voluntary organization
must agree to:
(A) Comply with the nondiscrimination provisions of the Stafford
Act, 42 U.S.C. 5151; and
(B) Obtain and maintain hazard insurance on the unit, as well as
flood insurance if the housing unit is or will be in a designated
Special Flood Hazard Area.
(ii) FEMA may also sell housing units at a fair market value to any
other person.
(b) A unit will be sold ``as is, where is'', except for repairs
FEMA deems necessary to protect health or safety, which are to be
completed before the sale. There will be no implied warranties. In
addition, FEMA will inform the purchaser that he/she may have to bring
the unit up to codes and
[[Page 61458]]
standards that are applicable at the proposed site.
Sec. 206.119 Financial Assistance to Address Other Needs.
(a) Purpose. FEMA and the State may provide financial assistance to
individuals and households who have other disaster-related necessary
expenses or serious needs. To qualify for assistance under this
section, an applicant must also:
(1) Apply to the United States Small Business Administration's
(SBA) Disaster Home Loan Program for all available assistance under
that program; and
(2) Be declined for SBA Disaster Home Loan Program assistance; or
(3) Demonstrate that the SBA assistance received does not satisfy
their total necessary expenses or serious needs arising out of the
major disaster.
(b) Types of assistance.
(1) Medical, dental, and funeral expenses. FEMA may provide
financial assistance for medical, dental and funeral items or services
to meet the disaster-related necessary expenses and serious needs of
individuals and households.
(2) Personal property, transportation, and other expenses.
(i) FEMA may provide financial assistance for personal property and
transportation items or services to meet the disaster-related necessary
expenses and serious needs of individuals and households.
(ii) FEMA may provide financial assistance for other items or
services that are not included in the specified categories for other
assistance but which FEMA approves, in coordination with the State, as
eligible to meet unique disaster-related necessary expenses and serious
needs of individuals and households.
(c) Eligible costs.
(1) Personal property. Necessary expenses and serious needs for
repair or replacement of personal property are generally limited to the
following:
(i) Clothing;
(ii) Household items, furnishings or appliances;
(iii) Tools, specialized or protective clothing, and equipment
required by an employer as a condition of employment;
(iv) Computers, uniforms, schoolbooks and supplies required for
educational purposes; and
(v) Cleaning or sanitizing any eligible personal property item.
(2) Transportation. Necessary expenses or serious needs for
transportation are generally limited to the following:
(i) Repairing or replacing vehicles; and
(ii) Financial assistance for public transportation and any other
transportation related costs or services.
(3) Medical expenses. Medical expenses are generally limited to the
following:
(i) Medical costs;
(ii) Dental costs; and
(iii) Repair or replacement of medical equipment.
(4) Funeral expenses. Funeral expenses are generally limited to the
following
(i) Funeral services;
(ii) Burial or cremation; and
(iii) Other related funeral expenses.
(5) Moving and storage expenses. Necessary expenses and serious
needs related to moving and storing personal property to avoid
additional disaster damage generally include storage of personal
property while disaster-related repairs are being made to the primary
residence, and return of the personal property to the individual or
household's primary residence.
(6) Other. Other disaster-related expenses not addressed in this
section may include:
(i) The purchase of a Group Flood Insurance Policy as described in
paragraph (d) of this section.
(ii) Other miscellaneous items or services that FEMA, in
consultation with the State, determines are necessary expenses and
serious needs.
(d) Group Flood Insurance purchase. Individuals identified by FEMA
as eligible for ``Other Needs'' assistance under section 408 of the
Stafford Act as a result of flood damage caused by a Presidentially-
declared major disaster and who reside in a special flood hazard area
(SFHA) may be included in a Group Flood Insurance Policy (GFIP)
established under the National Flood Insurance Program (NFIP)
regulations at 44 CFR 61.17.
(1) The premium for the GFIP is a necessary expense within the
meaning of this section. FEMA or the State shall withhold this portion
of the Other Needs award and provide it to the NFIP on behalf of
individuals and households who are eligible for coverage. The coverage
shall be equivalent to the maximum assistance amount established under
section 408 of the Stafford Act.
(2) FEMA or the State IHP staff shall provide the NFIP with records
of individuals who received an ``Other Needs'' award and are to be
insured through the GFIP. Records of ``Other Needs'' applicants to be
insured shall be accompanied by payments to cover the premium amounts
for each applicant for the 3-year policy term. The NFIP will then issue
a Certificate of Flood Insurance to each applicant. Flood insurance
coverage becomes effective on the 30th day following the receipt of
records of GFIP insureds and their premium payments from the State or
FEMA, and such coverage terminates 36 months from the inception date of
the GFIP, which is 60 days from the date of the disaster declaration.
(3) Insured applicants would not be covered if they are determined
to be ineligible for coverage based on a number of exclusions
established by the NFIP. Therefore, once applicants/policyholders
receive the Certificate of Flood Insurance that contains a list of the
policy exclusions, they should review that list to see if they are
ineligible for coverage. Those applicants who fail to do this may find
that their property is, in fact, not covered by the insurance policy
when the next flooding incident occurs and they file for losses. Once
the applicants find that their damaged buildings, contents, or both,
are ineligible for coverage, they should notify the NFIP in writing in
order to have their names removed from the GFIP, and to have the flood
insurance maintenance requirement expunged from the data-tracking
system.
Sec. 206.120 State administration of other needs assistance.
(a) State administration of other needs assistance. A State may
request a grant from FEMA to provide financial assistance to
individuals and households in the State under Sec. 206.119. The State
may also expend administrative costs not to exceed 5 percent of the
amount of the grant in accordance with section 408(f)(1)(b) of the
Stafford Act. Any State that administers the program to provide
financial assistance to individuals and households must administer the
program consistent with Sec. 206.119 and the State Administrative
Option and the State Administrative Plan that we describe at paragraph
(b) and (c) of this section.
(b) State administrative options. The delivery of assistance under
Sec. 206.119 is contingent upon the State choosing an administrator
for the assistance. The State may either request that FEMA administer
the assistance or the State may request a grant from FEMA for State
administration. The Governor or designee will execute the State
Administrative Option annually. During non-disaster periods the State
may submit any proposed amendments to the administrative option in
writing to the FEMA Regional Director. FEMA shall review the request
and respond to the Governor or his/her designee within
[[Page 61459]]
45 days of receipt of the proposed amendment;
(c) State Administrative Plan (SAP). The delivery of assistance by
a State under this section is contingent upon approval of a SAP, which
describes the procedures the State will use to deliver assistance under
section 408 of the Stafford Act, 42 U.S.C. 5174, when a State requests
a grant to administer Other Needs assistance. All implementation
procedures must be in compliance with Federal laws and requirements,
State laws and procedures, and paragraphs (c) and (d) of this section.
(1) Timeframe for submission of SAP. A signed SAP, or renewal, must
be provided to the FEMA Regional Director prior to November 30 of each
year. A SAP shall be effective for at least one year, and must be
resubmitted in full every three years.
(2) Renewals. Annual updates/revisions to the SAP must be submitted
by November 30 of each year for FEMA's review and approval by December
31. If the SAP does not need to be updated/revised, a letter from the
State stating the SAP is still current must be submitted by November 30
to document the SAP submission requirement.
(3) Amendments. The State may request amendments to the SAP at any
time. An amendment is effective upon signature by the FEMA Regional
Director and the Governor or his/her designee. The State may request an
amendment to the administrative plan as follows:
(i) During non-disaster periods. The State may submit any proposed
amendments to the SAP in writing to the FEMA Regional Director. FEMA
shall review the request and respond to the Governor or his/her
designee within 45 days of receipt of the proposed amendment;
(ii) During Presidentially-declared disasters. The State shall
submit any proposed amendments to the SAP in writing to FEMA within
three days after disaster declaration. FEMA shall review the request
and respond to the Governor or his/her designee within three days of
receipt.
(d) State administrative plan requirements. The State shall develop
a plan for the administration of the Other Needs assistance that
describes, at a minimum, the following items:
(1) Assignment of grant program responsibilities to State officials
or agencies.
(2) Staffing Schedule that identifies the position, salary and
percent of time for each staff person assigned to program
administration and/or implementation.
(3) Procedures for interaction with applicants:
(i) Procedures for notifying potential applicants of the
availability of the program, to include the publication of application
deadlines, pertinent program descriptions, and further program
information on the requirements which must be met by the applicant in
order to receive assistance;
(ii) Procedures for registration and acceptance of applications,
including late applications, up to the prescribed time limitations as
described in Sec. 206.112;
(iii) Procedures for damage inspection and/or other verifications.
(iv) Eligibility determinations.
(A) Under a cooperative agreement: The procedure for eligibility
determinations when the FEMA application and inspection systems are
used by the State but additional eligibility criteria are necessary to
make State eligibility determinations.
(B) Under a grant: The procedure for eligibility determinations
when the FEMA application and inspection systems are not used by the
State, including the method for determination of costs for personal
property and provision of a standard list for personal property items
with allowable costs identified for each item.
(v) Procedures for checking compliance for mandated flood insurance
in accordance with Sec. 206.110(k);
(vi) Procedures for notifying applicants of the State's eligibility
decision;
(vii) Procedures for disbursement of funds to applicants;
(viii) Procedures for applicant appeal processing. Procedures must
provide for any appealable determination as identified in Sec.
206.115(a);
(ix) Procedures for expeditious reporting of allegations of fraud,
waste or abuse to FEMA Office of Inspector General.
(x) Capacity to investigate allegations of waste, fraud and abuse
independently if requested by FEMA OIG, or in conjunction with FEMA
OIG.
(xi) Provisions for safeguarding the privacy of applicants and the
confidentiality of information, in accordance with Sec. 206.110(j).
(xii) Provisions for complying with Sec. 206.116(b), Recovery of
funds.
(4) Procedures for financial management, accountability and
oversight.
(i) Procedures for verifying by random sample that assistance funds
are meeting applicants' needs, are not duplicating assistance from
other means, and are meeting flood insurance requirements.
(ii) Provisions for specifically identifying, in the accounts of
the State, all Federal and State funds committed to each grant program;
and for immediately returning, upon discovery, all Federal funds that
are excess to program needs.
(iii) Provisions for accounting for cash in compliance with State
law and procedure and the Cash Management Improvement Act of 1990, as
amended.
(iv) Reports.
(A) Procedures for preparing and submitting quarterly and final
Financial Status Reports in compliance with 44 CFR 13.41.
(B) Procedures for submitting Program Status Reports in compliance
with paragraph (f)(2)(iii) of this section.
(C) Procedures for preparing and submitting the PSC 272, Federal
Cash Transactions Report.
(v) Procedures for inventory control, including a system for
identifying and tracking placement of equipment purchased with grant
funds or loaned by FEMA to the State for purposes of administering the
Individuals and Households Program.
(vi) Procedures for return of funds to FEMA.
(vii) State criteria and requirements for closing out Federal
grants.
(vii) Process for retention of records.
(e) Application for assistance procedure. This section describes
the procedures that must be followed by the State to submit an
application to administer the Individuals and Households Program
through a Grant Award or a Cooperative Agreement.
(1) The State must submit an Other Needs assistance application to
the Regional Director within 72 hours of the major disaster declaration
before IHP assistance may be provided. FEMA will work with the State to
approve the application or to modify it so it can be approved.
(2) The application shall include:
(i) Standard Form (SF) 424, Application for Federal Assistance;
(ii) FEMA Form (FF) 20-20 Budget Information--Non Construction
Programs;
(iii) Copy of approved indirect cost rate from a Federal cognizant
agency if indirect costs will be charged to the grant. Indirect costs
will be included in the administrative costs of the grant allowed under
paragraph (a) of this section; and
(iv) Disaster specific changes to the State Administrative Plan, if
applicable.
(f) Grants management oversight.
(1) Period of assistance. All costs must be incurred within the
period of
[[Page 61460]]
assistance, which is 18 months from the date of the disaster
declaration. This period of assistance may be extended if requested in
writing by the State and approved in writing by the FEMA Associate
Director. The State must include a justification for an extension of
the assistance period.
(2) Reporting requirements.
(i) The State shall provide financial status reports, as required
by 44 CFR 13.41.
(ii) The State shall provide copies of PSC 272, Federal Cash
Transactions Report to FEMA. The PSC 272 is required quarterly by the
Department of Health and Human Services from users of its SMARTLINK
service.
(iii) The State shall provide weekly program status reports which
include the number and dollar amount of applications approved, the
amount of assistance disbursed and the number of appeals received.
(3) Ineligible costs. Funds provided to the State for the
administrative costs of administering Other Needs assistance shall not
be used to pay regular time for State employees, but may be used to pay
overtime for those employees.
(4) Closeout. The State has primary responsibility to closeout the
tasks approved under the Grant Award. In compliance with the period of
assistance, as identified in the award, the State must reconcile costs
and payments, resolve negative audit findings, and submit final reports
within 90 days of the end of the period of assistance. The State must
also provide an inventory of equipment purchased with grant funds and
loaned to it by FEMA for purposes of administering IHP, which lists the
items, dates, and costs of equipment purchased.
(5) Recovery of funds. The State is responsible for recovering
assistance awards from applicants obtained fraudulently, expended for
unauthorized items or services, expended for items for which assistance
is received from other means, and awards made in error.
(i) Adjustments to expenditures will be made as funding is
recovered and will be reported quarterly on the Financial Status
Report.
(ii) A list of applicants from whom recoveries are processed will
be submitted on the quarterly progress report to allow FEMA to adjust
its program and financial information systems.
(iii) The State will reimburse FEMA for the Federal share of awards
not recovered through quarterly financial adjustments within the 90 day
close out liquidation period of the grant award.
(iv) If the State does not reimburse FEMA within the 90 day close
out liquidation period, a bill for collection will be issued. FEMA will
charge interest, penalties, and administrative fees on delinquent bills
for collection in accordance with the Debt Collection Improvement Act.
Recovered funds, interest, penalties, and fees owed to FEMA through
delinquent bills for collection may be offset from other FEMA disaster
assistance programs from which the State is receiving funds or future
grant awards from FEMA or other Federal agencies. Debt collection
procedures will be followed as outlined in 44 CFR part 11.
(6) Audit requirements. Pursuant to 44 CFR 13.26, uniform audit
requirements apply to all grants provided under this subpart.
(7) Document retention. Pursuant to 44 CFR 13.42, States are
required to retain records, including source documentation, to support
expenditures/costs incurred against the grant award, for 3 years from
the date of submission to FEMA of the final Financial Status Report.
The State is responsible for resolving questioned costs that may result
from an audit conducted during the three-year record retention period
and for returning disallowed costs from ineligible activities.
3. Revise the last sentence of 44 CFR 206.44(a) to read as follows:
``No FEMA funding will be authorized or provided to any grantees or
other recipients, nor will direct Federal assistance be authorized by
mission assignment, until such time as this Agreement for the
Presidential declaration has been signed, except where it is deemed
necessary by the Regional Director to begin the process of providing
essential emergency services or housing assistance under the
Individuals and Households Program.'';
4. Revise 44 CFR 206.62(f) to read as follows:
Sec. 206.62 Available assistance.
* * * * *
(f) Provide assistance in accordance with section 408 of the
Stafford Act.; and
* * * * *
5. Revise the heading of 44 CFR 206.101 to read:
Sec. 206.101 Temporary housing assistance for emergencies and major
disasters declared on or before October 14, 2002.
6. 44 CFR 206.101(a) is amended by adding the following phrase at
the end of paragraph (a):
``for Presidentially-declared emergencies and major disasters
declared on or before October 14, 2002 (Note that the reference to
section 408 of the Stafford Act refers to prior legislation amended by
the Disaster Mitigation Act 2000).''
7. Revise the heading of 44 CFR 206.131 to read as follows:
``Individual and Family Grant Program for major disasters declared
on or before October 14, 2002.''
8. Amend 44 CFR 206.131(a) by adding the following phrase at the
end of the first sentence: ``for Presidentially-declared major
disasters declared on or before October 14, 2002 (Note that the
reference to section 411 of the Stafford Act refers to prior
legislation amended by the Disaster Mitigation Act 2000).''
9. Revise 44 CFR 206.191(d)(2)(ii) & (iv) to read as follows:
Sec. 206.191 Duplication of benefits.
* * * * *
(d) * * *
(2) * * *
(ii) Housing assistance pursuant to section 408 of the Stafford
Act.
* * * * *
(iv) Other Needs assistance, pursuant to section 408 of the
Stafford Act or its predecessor program, the Individual and Family
Grant Program.
* * * * *
Dated: September 25, 2002.
John R. D'Araujo, Jr.,
Assistant Director, Response and Recovery Directorate.
[FR Doc. 02-24733 Filed 9-27-02; 8:45 am]
BILLING CODE 6718-02-P