Hazard Mitigation Assistance Program and Policy Guide

Hazard Mitigation Assistance

Program and Policy Guide

Hazard Mitigation Grant Program, Hazard Mitigation Grant Program Post Fire,

Building Resilient Infrastructure and Communities, and Flood Mitigation

Assistance

March 23, 2023

Federal Enterprise Architecture (FEA) Number: FP-206-21-0001

Hazard Mitigation Assistance Program and Policy Guide

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Hazard Mitigation Assistance Program and Policy Guide

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Titles of Opportunities

 Hazard Mitigation Grant Program (HMGP)

 Hazard Mitigation Grant Program Post Fire (HMGP Post Fire)

 Building Resilient Infrastructure and Communities (BRIC)

 Flood Mitigation Assistance (FMA)

Assistance Listing Numbers

 97.039 - HMGP

 97.039 - HMGP Post Fire

 97.047 - BRIC

 97.029 - FMA

Federal Agency Name

 Department of Homeland Security

 Federal Emergency Management Agency

Hazard Mitigation Assistance Program and Policy Guide

Letter from the Assistant Administrator (Acting) for Mitigation

I am pleased to share the 2023 Hazard Mitigation Assistance Program and Policy Guide (HMA Guide)

as FEMA’s updated comprehensive policy handbook to govern mitigation grant programs. This

document replaces the 2015 HMA Guidance and HMA Guidance Addendum.

Since the last update and publication, many developments have impacted our mitigation grant

programs. They include the passage of the Disaster Recovery Reform Act of 2018; the rollout of a

new hazard mitigation grant program—Building Resilient Infrastructure and Communities (BRIC);

significantly increased funding and accessibility to mitigation programs via the Infrastructure

Investments and Jobs Act of 2021; and prioritization of new resilience concepts to accelerate and

advance mitigation investment, such as those outlined in the National Mitigation Investment

Strategy and FEMA’s Building Codes Strategy.

In addition, FEMA recently launched the new Safeguarding Tomorrow Revolving Loan Fund program,

which provides capitalization grants to states, eligible tribal nations, territories and the District of

Columbia to establish a revolving loan fund to offer low-cost loans to help local governments fund

additional mitigation measures, including using it as the non-federal cost share for other HMA

programs. This program is not included in this update as it is under development, but more

information can be found on the Safeguarding Tomorrow RLF program webpage.

The HMA Guide update offers an important opportunity for FEMA to integrate these developments

while also supporting the three bold, ambitious goals outlined in the 2022-2026 FEMA Strategic

Plan: instill equity as a foundation of emergency management; lead whole of community in climate

resilience and promote and sustain a ready FEMA and prepared nation.

FEMA’s Hazard Mitigation Assistance grant programs provide funding for actions that address risks

to and reduce disaster suffering from events like wildfires, drought, extreme heat, hurricanes,

earthquakes and flooding. The updated HMA Guide provides helpful information for state, local,

tribal and territorial governments seeking to successfully navigate the application and grant lifecycle

processes. And with the unprecedented funding that has been made available for mitigation over the

past few years, it has never been more important to reduce the barriers to accessing these grant

dollars and get them into the right hands for the most impactful mitigation projects.

The HMA Guide update is the first step in a multi-phase process to better engage stakeholders, shift

to a more agile update process, and increase the accessibility of information for HMA policy and

programs.

With regards,

Eric Letvin

Ass

istant Administrator (Acting), Mitigation Directorate

Hazard Mitigation Assistance Program and Policy Guide

Table of Contents

Part 1. Introduction ................................................................................................................... 1

A. Complementary FEMA Mitigation Programs ................................................................................... 2

B. HMA Guide Scope ............................................................................................................................ 3

C. HMA Guide Applicability and Effective Date ................................................................................... 3

D. Applicability of Other Publications .................................................................................................. 5

E. Strategic Considerations for Mitigation .......................................................................................... 5

E.1. National Mitigation Investment Strategy ............................................................................. 5

E.2. Community Lifelines ............................................................................................................. 8

E.3. Climate Change ..................................................................................................................... 9

E.4. Equity .................................................................................................................................. 11

E.5. Building Codes and Standards.......................................................................................... 12

F. Changes from the 2015 Hazard Mitigation Assistance Guidance and Addendum .................. 13

F.1. Program and Policy Changes............................................................................................. 13

F.1.1. Regulatory Changes......................................................................................................... 18

F.1.2. Executive Order Changes ................................................................................................ 19

F.1.3. Cost-Effectiveness Changes ............................................................................................ 20

F.1.4. Management Costs Changes .......................................................................................... 21

F.2. Project and Activity Changes ............................................................................................. 22

F.3. General Changes ................................................................................................................ 25

Part 2. Overview of Hazard Mitigation Assistance Programs ................................................. 28

A. Hazard Mitigation Grant Program ................................................................................................ 28

B. Hazard Mitigation Grant Program Post Fire ................................................................................ 30

C. Building Resilient Infrastructure and Communities .................................................................... 31

D. Flood Mitigation Assistance ......................................................................................................... 33

E. Grants Management Regulations ................................................................................................ 36

F. Roles and Responsibilities of State, Local, Tribal and Territorial Governments ....................... 36

F.1. Applicants/Recipients ........................................................................................................ 38

F.2. Subapplicants/Subrecipients ............................................................................................ 38

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F.3. Federally Recognized Tribes .............................................................................................. 39

Part 3. Subapplication Considerations and Scoping .............................................................. 41

A. Overview ........................................................................................................................................ 41

A.1. Hazard Mitigation Assistance Subapplication Development Process ............................ 41

B. Select a Mitigation Activity ........................................................................................................... 42

C. Conduct Scoping ........................................................................................................................... 43

D. Determine Funding Strategies and Eligibility Requirements ..................................................... 45

D.1. Project Scoping/Advance Assistance ............................................................................... 45

D.2. Management Costs ........................................................................................................... 46

D.3. Phased Projects ................................................................................................................. 46

D.3.1. Phased Project: Pre-Screening Process to Determine Eligibility .................................. 47

D.3.2. Phase I: Conditional Approval......................................................................................... 49

D.3.3. Phase II: Approval – Construction process .................................................................... 51

D.4. Pre-Award Costs ................................................................................................................. 51

E. HMGP and Public Assistance ....................................................................................................... 52

E.1. Public Assistance Mitigation ............................................................................................. 52

E.2. Post-Disaster Code Enforcement ...................................................................................... 53

F. Cost Review ................................................................................................................................... 54

G. Cost-Effectiveness ........................................................................................................................ 54

H. Technical Feasibility and Effectiveness ...................................................................................... 54

I. Environmental and Historic Preservation Review and Compliance ............................................ 54

J. Unified Federal Review .................................................................................................................. 59

K. Floodplain Management and Protection of Wetlands ................................................................ 60

L. Accessibility ................................................................................................................................... 61

M. Develop the HMA Subapplication ............................................................................................... 61

Part 4. Eligibility and Requirements........................................................................................ 64

A. Eligible Applicants ......................................................................................................................... 64

B. Eligible Subapplicants .................................................................................................................. 65

B.1. State Agencies ................................................................................................................... 66

B.2. Local Governments ............................................................................................................ 66

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B.3. Private Nonprofit Organizations ........................................................................................ 66

B.4. Federally Recognized Tribal Government ........................................................................ 67

C. Hazard Mitigation Plan Requirements ......................................................................................... 68

C.1. Applicant Mitigation Plan Requirements .......................................................................... 68

C.2. Subapplicant Mitigation Plan Requirements ................................................................... 68

C.2.1. Extraordinary Circumstances .......................................................................................... 69

C.2.2. Consistency with Hazard Mitigation Plans ..................................................................... 70

D. Eligible Activities ........................................................................................................................... 71

D.1. Capability- and Capacity-Building ..................................................................................... 73

D.1.1. New Plan Creation and Plan Updates ............................................................................ 73

D.1.2. Planning-Related Activities ............................................................................................. 74

D.1.3. Project Scoping/Advance Assistance ............................................................................ 74

D.1.4. Technical Assistance (Financial and Non-financial) ...................................................... 74

D.1.5. Partnerships .................................................................................................................... 74

D.1.6. Codes and Standards ..................................................................................................... 75

D.2. Mitigation Projects ............................................................................................................. 75

D.2.1. Property Acquisition ........................................................................................................ 75

D.2.2. Structure Elevation ......................................................................................................... 75

D.2.3. Mitigation Reconstruction .............................................................................................. 75

D.2.4. Flood Risk Reduction ...................................................................................................... 76

D.2.5. Stabilization ..................................................................................................................... 76

D.2.6. Floodproofing .................................................................................................................. 76

D.2.7. Tsunami Vertical Evacuation .......................................................................................... 77

D.2.8. Safe Room ....................................................................................................................... 77

D.2.9. Wildfire Mitigation ........................................................................................................... 77

D.2.10. Retrofit ........................................................................................................................... 77

D.2.11. Secondary Power Source ............................................................................................. 78

D.2.12. Warning Systems .......................................................................................................... 78

D.2.13. Aquifer Recharge, Storage and Recovery .................................................................... 78

D.3. Management Costs ........................................................................................................... 78

E. Ineligible Activities ........................................................................................................................ 79

F. Feasibility and Effectiveness ........................................................................................................ 81

.1. Hazard Mitigation Assistance Efficiencies ........................................................................ 81

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G. Environmental and Historic Preservation Requirements ........................................................... 82

G.1. Coastal Barrier Resources System Eligibility Requirements ........................................... 84

H. Floodplain Management and Protection of Wetlands ................................................................ 85

I. Federal Flood Risk Management Standards – Partial Implementation ..................................... 88

J. Flood Insurance Requirements ..................................................................................................... 89

J.1. National Flood Insurance Program Requirements ........................................................... 89

J.2. Flood Insurance Conditions ............................................................................................... 90

K. Cost Eligibility ................................................................................................................................ 91

K.1. Reasonable Costs .............................................................................................................. 92

K.1.1. Reasonable Costs Analysis ............................................................................................. 92

L. Cost Share ..................................................................................................................................... 95

L.1. Global Match ...................................................................................................................... 97

L.2. Federal Assistance Allowed to be Used as Non-Federal Cost Share .............................. 97

L.3. Increased Cost of Compliance as Non-Federal Cost Share ............................................. 97

L.3.1. Steps for the Assignment of Coverage D—Increased Cost of Compliance Coverage .. 98

M. Additional Requirements ............................................................................................................. 99

M.1. Non-Discrimination Compliance ...................................................................................... 99

M.2. Conflicts of Interest ......................................................................................................... 100

M.3. Procurement.................................................................................................................... 100

M.3.1. Procurement Requirements for State and Territorial Government Entities .............. 101

M.3.2. Procurement and Contracting Requirements for Tribal and Local Government

Agencies and Private Nonprofits ............................................................................... 101

M.3.3. Prohibition On Certain Telecommunications and Video Surveillance Services or

Equipment .................................................................................................................. 106

M.3.4. Build America, Buy America Act Requirements .......................................................... 106

M.3.5. Required Contract Clauses .......................................................................................... 107

M.3.6. Documentation Requirements .................................................................................... 108

M.3.7. Conflicts of Interest ...................................................................................................... 108

M.4. Reimbursement for Costs Incurred by Homeowners Contracting to Perform Mitigation

Scope of Work ............................................................................................................ 109

M.5. Uniform Relocation Assistance and Real Property Acquisition Policies Act ................ 109

M.6. Duplication of Programs ................................................................................................. 109

M.6.1. Federally Authorized Water Resources Development Projects ................................. 110

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M.7. Duplication of Benefits and Reporting Requirements .................................................. 110

Part 5. Cost-Effectiveness ..................................................................................................... 113

A. Exemptions .................................................................................................................................. 114

B. Calculating the Benefit-Cost Ratio ............................................................................................. 114

B.1. Streamlined Benefit-Cost Analysis Methodologies ........................................................ 114

B.1.1. Substantially Damaged Structures in a RIVERINE SFHA ............................................ 115

B.1.2. Pre-Calculated Benefits for Mitigation Projects ........................................................... 115

C. Calculation of the Benefit-Cost Ratio Using the Benefit-Cost Analysis Toolkit ........................ 116

C.1. Key Elements of the Benefit-Cost Ratio ......................................................................... 116

C.1.1. Project Benefits ............................................................................................................. 117

C.1.2. Project Costs .................................................................................................................. 122

C.1.3. Risk ................................................................................................................................ 122

C.1.4. Economic Factors .......................................................................................................... 123

C.1.5. Annualized benefits and Costs ..................................................................................... 124

C.1.6. Documentation Requirements ..................................................................................... 124

C.1.7. Subapplication Submission Requirements .................................................................. 124

D. Other Considerations .................................................................................................................. 124

D.1. Aggregation of Benefits ................................................................................................... 124

D.1.1. Aggregation of Pre-calculated Benefits – Multiple Properties within a Subapplication

.................................................................................................................................... 126

D.2. Phased Projects ............................................................................................................... 126

Part 6. Application and Submission Information .................................................................. 127

A. General Application and Subapplication Principles .................................................................. 127

B. Application Package and Submission ....................................................................................... 128

B.1. Grants.gov Registration ................................................................................................... 128

B.2. Electronic Grants Management Systems ....................................................................... 128

B.3. Application Documentation and Assurance Forms ....................................................... 129

B.4. Other Required Content .................................................................................................. 130

B.5. Intergovernmental Review .............................................................................................. 130

B.6. Application Submission ................................................................................................... 131

B.6.1. Hazard Mitigation Grant Program Application Submission......................................... 131

B.6.2. Hazard Mitigation Grant Program Post Fire Application Submission ......................... 132

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B.6.3. Building Resilient Infrastructure and Communities Program and Flood Mitigation

Assistance Application Submission .......................................................................... 132

C. Scoping Narrative: Scope of Work, Schedule and Budget ....................................................... 133

C.1. Scope of Work .................................................................................................................. 133

C.1.1. Introductory Statement ................................................................................................. 133

C.1.2. Activities Description ..................................................................................................... 133

C.1.3. Personnel ....................................................................................................................... 135

C.1.4. Task Management......................................................................................................... 136

C.1.5. Ranking Factors............................................................................................................. 136

C.2. Schedule .......................................................................................................................... 136

C.3. Budget .............................................................................................................................. 136

C.3.1. Budget Documentation ................................................................................................. 137

C.3.2. Non-federal Funding Share ........................................................................................... 139

D. Cost-Effectiveness Documentation ........................................................................................... 139

E. Feasibility and Effectiveness Documentation ........................................................................... 139

F. Environmental and Historic Preservation Documentation ....................................................... 140

F.1. Environmental and Historic Preservation Checklist ....................................................... 141

G. Requests for Information ........................................................................................................... 144

G.1. Request for Information Timelines ................................................................................. 145

Part 7. Award Selection and Notification .............................................................................. 149

A. Award Selection ........................................................................................................................... 149

B. Applicant Award Notification ...................................................................................................... 149

B.1. Applicant Award Package ................................................................................................ 149

B.2. Large Project Notification ................................................................................................ 150

C. Appeal Process for Denied Subapplicants ................................................................................ 150

C.1. Consideration of Additional Information ........................................................................ 150

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Part 8. Award Administrative Requirements ......................................................................... 151

A. Efficient and Effective Grants Management for Recipients ..................................................... 151

B. Responsibilities of Recipients .................................................................................................... 152

C. Assessment of Risk Posed by Recipient and Subrecipient Prior to Award ............................. 153

D. Strategic Funds Management ................................................................................................... 154

D.1. Strategic Funds Management Procedures .................................................................... 155

D.1.1. Considering Strategic Funds Management Impacts for Hazard Mitigation Assistance

Subapplications ......................................................................................................... 156

D.1.2. Evaluating Hazard Mitigation Assistance Activities for Strategic Funds Management

Potential ..................................................................................................................... 156

D.1.3. Large Project Notification Requirements ..................................................................... 157

D.1.4. Managing Subsequent Funding Obligations through Quarterly Reporting ................ 157

D.1.5. Strategic Funds Management Appeal Process ........................................................... 157

E. Cost Share Documentation ........................................................................................................ 157

F. Budget and Scope of Work Changes ......................................................................................... 158

F.1. Non-Construction Subaward Changes ............................................................................ 158

F.2. Construction Subaward Changes .................................................................................... 159

F.3. Cost Overruns and Underruns ......................................................................................... 159

F.4. Contingencies ................................................................................................................... 160

G. Period of Performance ............................................................................................................... 160

G.1. Award Period of Performance ......................................................................................... 161

G.2. Subaward Period of Performance .................................................................................. 161

G.3. Award Extensions ............................................................................................................ 161

H. Requests for Advancements and Reimbursements ................................................................. 163

I. Program Income ........................................................................................................................... 163

J. Federal Income Tax on Mitigation Project Assistance ............................................................... 163

K. Remedies for Non-Compliance .................................................................................................. 164

K.1. Actions to Address Deficiencies ..................................................................................... 164

K.1.1. Compliance Notification to Recipient........................................................................... 165

K.1.2. Compliance Action Plan Monitoring ............................................................................. 166

K.1.3. Specific Award Conditions ............................................................................................ 166

K.1.4. Requests for Closure and Determination on Corrective Actions ................................ 167

K.1.5. Determination that Recipient Did Not Come into Compliance ................................... 168

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K.1.6. Applying Remedy Actions .............................................................................................. 168

K.1.7. Mitigating and Aggravating Factors .............................................................................. 168

L. Award Termination ...................................................................................................................... 169

M. Davis-Bacon and Related Acts .................................................................................................. 170

Part 9. Award Monitoring and Closeout Requirements ........................................................ 171

A. Reporting ..................................................................................................................................... 171

A.1. Federal Financial Reports ............................................................................................... 171

A.2. Quarterly Progress Reports ............................................................................................. 172

A.3. Final Reports .................................................................................................................... 173

A.4. Actions to Address Reporting Deficiencies ..................................................................... 174

B. Monitoring Requirements........................................................................................................... 174

B.1. Quarterly Progress Report Review .................................................................................. 175

B.2. Improper Payment ........................................................................................................... 175

B.3. Actions to Address Deficiencies Identified During Monitoring ...................................... 176

C. Closeout Requirements .............................................................................................................. 176

C.1. 100 Percent Work Completion ....................................................................................... 176

C.2. Subaward Closeout .......................................................................................................... 177

C.2.1. Recipient Responsibilities To Subaward Closeout ...................................................... 177

C.2.2. Subaward Closeout Time Frame and Liquidation Time Frame................................... 178

C.2.3. Required Subaward Closeout Documentation ............................................................ 178

C.2.4. Subaward Procedures ................................................................................................... 180

C.2.5. Subaward Procedures Statute of Limitations of Disallowed Costs for HMGP ........... 180

C.2.6. Notice and Demand Letters .......................................................................................... 180

C.2.7. Actions to Address Closeout Deficiencies .................................................................... 181

C.2.8. Subrecipient Records Retention .................................................................................. 181

C.3. Recipient Management Costs Closeout ......................................................................... 181

C.3.1. Recipient Management Costs Administrative Plan Requirements............................. 182

C.3.2. Recipient Management Costs Records Retention ...................................................... 182

C.4. Recipient Award Closeout and Liquidation Time Frames ............................................. 183

C.4.1. Administrative Closeout ................................................................................................ 184

C.4.2. Recipient Records Retention ........................................................................................ 185

C.4.3. Update of Repetitive Loss Database ............................................................................ 185

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D. Identification and Collection of Monies Owed .......................................................................... 186

E. Supplies and Equipment ............................................................................................................ 186

F. Disposition of Purchased Equipment and Supplies .................................................................. 186

F.1. Disposition of Purchased Equipment ............................................................................. 186

F.2. Disposition of Purchased Supplies ................................................................................. 187

G. Disposition of Real Property ....................................................................................................... 187

G.1. Disposition Requirements by Project Type .................................................................... 187

G.2. Exceptions ........................................................................................................................ 188

H. Audits 188

H.1. Single Audits .................................................................................................................... 189

H.2. Government Accountability Office .................................................................................. 189

H.3. Office of the Inspector General ....................................................................................... 189

H.4. Recovery of Improper Payments ..................................................................................... 190

I. Forms 190

J. Additional Award Administration and Requirements Resources .............................................. 191

Part 10. Program-Specific Guidance..................................................................................... 195

A. Hazard Mitigation Grant Program .............................................................................................. 195

A.1. HMGP: Request for Assistance ....................................................................................... 195

A.2. HMGP: Administrative Plan ............................................................................................. 196

A.2.1. HMGP: Administrative Plan Designation of Recipient and Hazard Mitigation Officer

.................................................................................................................................... 196

A.2.2. HMGP: Administrative Plan Staffing Requirements and the Mitigation team ........... 197

A.2.3. HMGP: Administrative Plan Procedures to Guide Implementation Activities ............. 198

A.2.4. HMGP: Administrative Plan Submission and Approval Deadline ................................ 198

A.3. HMGP: Eligibility ............................................................................................................... 199

A.4. HMGP: Assistance Estimates .......................................................................................... 199

A.5. HMGP: Assistance Sliding Scale ..................................................................................... 202

A.6. HMGP: Apportionment ..................................................................................................... 202

A.7. HMGP: Timing of Obligation of Assistance ..................................................................... 203

A.8. HMGP: Assistance Restrictions ....................................................................................... 203

A.8.1. HMGP: The 5 Percent Initiative ..................................................................................... 204

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A.8.2. HMGP: 5 Percent Codes and Standards ...................................................................... 205

A.9. HMGP: Management Costs ............................................................................................. 205

A.9.1. HMGP: 30-Day Estimate................................................................................................ 207

A.9.2. HMGP: Six-Month Estimate ........................................................................................... 207

A.9.3. HMGP: Requesting Adjustments .................................................................................. 207

A.9.4. HMGP: 12-Month Adjustment ....................................................................................... 208

A.9.5. HMGP: Close of Application Period ............................................................................... 208

A.10. HMGP: Application Period ............................................................................................. 208

A.11. HMGP: Cost Share and Global Match .......................................................................... 210

A.12. HMGP: Disaster Spend Plan ......................................................................................... 210

A.13. HMGP: Quarterly Progress Reports .............................................................................. 211

A.14. HMGP: Appeal Process .................................................................................................. 212

A.14.1. HMGP: Content for First and Second Appeals ........................................................... 213

A.14.2. HMGP: Appeal Deadline .............................................................................................. 213

A.14.3. HMGP: Appeal Review ................................................................................................. 213

A.14.4. HMGP: Request for Information for Appeals ............................................................. 214

A.14.5. HMGP: First Appeal Process ....................................................................................... 214

A.14.6. HMGP: Second Appeal process .................................................................................. 214

B. Hazard Mitigation Grant Program Post Fire .............................................................................. 217

B.1. HMGP Post Fire: Request for Assistance ....................................................................... 217

B.2. HMGP Post Fire: Administrative Plan ............................................................................. 218

B.2.1. HMGP Post Fire: Administrative Plan Designation of Recipient and Hazard Mitigation

Officer ......................................................................................................................... 219

B.2.2. HMGP Post Fire: Administrative Plan Staffing Requirements and the Mitigation team

.................................................................................................................................... 219

B.2.3. HMGP Post Fire: Administrative Plan Procedures to Guide Implementation Activities

.................................................................................................................................... 220

B.2.4. HMGP Post Fire: Administrative Plan Submission and Approval Deadline ................ 221

B.3. HMGP Post Fire: Eligibility ............................................................................................... 221

B.3.1. HMGP Post Fire: Eligible Applicants and Subapplicants ............................................. 221

B.3.2. HMGP Post Fire: Plan Requirements ........................................................................... 221

B.3.3. HMGP Post Fire: Eligible Activities................................................................................ 222

B.4. HMGP Post Fire: Available Assistance ............................................................................ 222

B.5. HMGP Post Fire: Apportionment ..................................................................................... 223

B.6. HMGP Post Fire: Timing of Obligation of Assistance ..................................................... 223

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B.7. HMGP Post Fire: Assistance Restrictions ....................................................................... 223

B.7.1. HMGP Post Fire: The 5 Percent Initiative ..................................................................... 224

B.7.2. HMGP Post Fire: 5 Percent Codes and Standards ...................................................... 225

B.8. HMGP Post Fire: Management Costs ............................................................................. 226

B.9. HMGP Post Fire: Application Period ............................................................................... 228

B.10. HMGP Post Fire: Cost Share and Global Match .......................................................... 228

B.11. HMGP Post Fire: Disaster Spend Plan ......................................................................... 229

B.12. HMGP Post Fire: Quarterly Progress Reports .............................................................. 229

B.13. HMGP Post Fire: Appeal Process .................................................................................. 230

B.13.1. HMGP Post Fire: Content for First and Second Appeals ........................................... 231

B.13.2. HMGP Post fire: Appeal Deadline .............................................................................. 231

B.13.3. HMGP Post Fire: Appeal Review ................................................................................. 232

B.13.4. HMGP Post Fire: Request for Information for Appeals ............................................. 232

B.13.5. HMGP Post fire: First Appeal Process ........................................................................ 233

B.13.6. HMGP Post fire: Second Appeal process ................................................................... 233

C. Building Resilient Infrastructure and Communities Program .................................................. 236

C.1. BRIC: Guiding Principles .................................................................................................. 236

C.2. BRIC: Eligibility ................................................................................................................. 237

C.2.1. BRIC: Eligible Activities .................................................................................................. 237

C.3. BRIC: Available Assistance .............................................................................................. 238

C.4. BRIC: Assistance Restrictions ......................................................................................... 238

C.5. BRIC: Management Costs ............................................................................................... 239

C.6. BRIC: Application Period .................................................................................................. 239

C.7. BRIC: Cost Share .............................................................................................................. 239

C.7.1. BRIC: Small Impoverished Communities ..................................................................... 240

C.8. BRIC: Subapplication Requirements .............................................................................. 240

C.9. BRIC: Applicant Ranking of Subapplications ................................................................. 240

C.10. BRIC: Award Selection ................................................................................................... 241

C.11. BRIC: Quarterly Progress Reports ................................................................................. 241

C.11.1. BRIC: Financial Reporting Requirements .................................................................. 242

C.11.2. BRIC: Progress Reporting Requirements ................................................................... 242

C.12. BRIC: Appeal Process .................................................................................................... 242

C.12.1. BRIC: Appeal Review and Determination................................................................... 243

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C.12.2. BRIC: Request for Information Appeal ....................................................................... 243

D. Flood Mitigation Assistance ....................................................................................................... 244

D.1. FMA: Eligibility .................................................................................................................. 244

D.1.1. FMA: Eligible Properties ................................................................................................ 244

D.1.2. FMA: Financial Technical Assistance ........................................................................... 245

D.2. FMA: Available Assistance .............................................................................................. 246

D.3. FMA: Assistance Restrictions .......................................................................................... 246

D.4. FMA: Management Costs ................................................................................................ 246

D.5. FMA: Application Period .................................................................................................. 247

D.6. FMA: Cost Share .............................................................................................................. 247

D.7. FMA: Applicant Ranking of Subapplications .................................................................. 247

D.8. FMA: Award Selection ...................................................................................................... 248

D.9. FMA: Quarterly Progress Reports ................................................................................... 248

D.9.1. FMA: Financial Reporting Requirements ..................................................................... 248

D.9.2. FMA: Progress reporting Requirements ....................................................................... 249

D.10. FMA: Failure to Make Federal Award Within Five Years ............................................. 249

D.11. FMA: Reconsideration ................................................................................................... 249

D.11.1. FMA: Denial of Application or Subapplication ........................................................... 249

D.11.2. FMA: Denial of Remedies Taken for Non-compliance .............................................. 250

Part 11. Capability- and Capacity-Building ............................................................................ 252

A. Hazard Mitigation Planning and Planning-Related Activities ................................................... 252

A.1. Overview of Mitigation Planning ...................................................................................... 252

A.2. Mitigation Planning Process ............................................................................................ 254

A.2.1. Assemble Resources ..................................................................................................... 254

A.2.2. Assess Risks .................................................................................................................. 254

A.2.3. Develop a Mitigation Strategy ....................................................................................... 255

A.2.4. Adopt and Approve the Hazard Mitigation Plan ........................................................... 255

A.2.5. Implement and Maintain the Hazard Mitigation Plan ................................................. 255

A.3. Eligibility ............................................................................................................................ 256

A.3.1. Eligible Activities ............................................................................................................ 256

A.3.2. Ineligible Activities ......................................................................................................... 259

A.3.3. Funding Restrictions...................................................................................................... 260

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A.4. Application and Submission Information ....................................................................... 260

A.4.1. Scope and Schedule for New Plan Creation or Plan Updates..................................... 261

A.4.2. Scope and Schedule for Planning-Related Activities ................................................... 264

A.4.3. Costs............................................................................................................................... 265

A.5. Subaward Implementation .............................................................................................. 267

A.5.1. Program Reporting and Monitoring .............................................................................. 267

A.5.2. Budget and Scope of Work Changes ............................................................................ 267

A.6. Closeout ............................................................................................................................ 268

B. Project Scoping/Advance Assistance ........................................................................................ 269

B.1. Overview ........................................................................................................................... 269

B.2. Eligibility ........................................................................................................................... 269

B.2.1. Eligibility Criteria ............................................................................................................ 270

B.2.2. Eligible Activities ............................................................................................................ 270

B.2.3. Ineligible Activities ......................................................................................................... 271

B.3. Application and Submission Information ....................................................................... 271

B.3.1. Activity and Schedule .................................................................................................... 272

B.3.2. Costs .............................................................................................................................. 272

B.4. Subaward Implementation .............................................................................................. 272

B.4.1. Program Reporting and Monitoring .............................................................................. 272

B.4.2. Budget and Scope of Work Changes ........................................................................... 273

B.5. Closeout ........................................................................................................................... 273

C. Technical Assistance (Financial and Non-Financial) ................................................................ 273

C.1. Overview ........................................................................................................................... 273

C.2. Eligibility ........................................................................................................................... 273

C.2.1. Eligible Activties ............................................................................................................. 273

C.2.2. Ineligible Activities ......................................................................................................... 274

C.3. Application and Submission Information ....................................................................... 274

C.3.1. Activity and Schedule .................................................................................................... 274

C.3.2. Costs .............................................................................................................................. 275

C.4. Subaward Implementation .............................................................................................. 275

C.4.1. Program Reporting and Monitoring .............................................................................. 275

C.4.2. Budget and Scope of Work Changes ............................................................................ 276

C.5. Closeout ........................................................................................................................... 276

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D. Partnerships ................................................................................................................................ 276

D.1. Overview ........................................................................................................................... 276

D.2. Eligibility ........................................................................................................................... 276

D.2.1. Eligible Activities............................................................................................................ 277

D.2.2. Ineligible Activities ........................................................................................................ 278

D.3. Application and Submission Information ....................................................................... 278

D.3.1. Activity and Schedule .................................................................................................... 278

D.3.2. Costs .............................................................................................................................. 279

D.4. Subaward Implementation ............................................................................................. 279

D.4.1. Program Reporting and Monitoring .............................................................................. 279

D.4.2. Budget and Scope of Work Changes ........................................................................... 280

D.5. Closeout ........................................................................................................................... 280

E. Codes and Standards ................................................................................................................. 280

E.1. Overview ........................................................................................................................... 280

E.2. Eligibility ............................................................................................................................ 281

E.2.1. Eligible Activities ............................................................................................................ 281

E.2.2. Ineligible Activities ......................................................................................................... 286

E.2.3. Program Income ............................................................................................................ 287

E.2.4. Assistance Restrictions ................................................................................................. 287

E.2.5. Cost-Effectiveness ......................................................................................................... 288

E.3. Application and Submission Information ....................................................................... 288

E.3.1. Activities and Schedule ................................................................................................. 288

E.3.2. Costs .............................................................................................................................. 289

E.4. Subaward Implementation .............................................................................................. 290

E.4.1. Program Reporting and Monitoring .............................................................................. 290

E.4.2. Budget and Scope of Work Changes ............................................................................ 290

E.5. Closeout ............................................................................................................................ 291

Part 12. Mitigation Projects .................................................................................................. 293

A. Overarching Philosophy: Undertaking Mitigation with Nature-Based Solution Techniques ... 293

A.1. Types of Nature-Based Solutions .................................................................................... 294

A.2. Spectrum of Nature-Based Solutions ............................................................................. 296

B. Project Types ............................................................................................................................... 297

B.1. Property Acquisition for Open Space .............................................................................. 298

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B.1.1. Property Acquisition: Overview ..................................................................................... 298

B.1.2. Property Acquisition: Eligibility ...................................................................................... 299

B.1.3. Property Acquisition: Application and Submission Information .................................. 311

B.1.4. Property Acquisition: Subaward Implementation ........................................................ 330

B.1.5. Property Acquisition: Closeout ...................................................................................... 332

B.1.6. Property Acquisition: Post Closeout Disposition and Reporting Requirements ......... 333

B.1.7. Property Acquisition for Open Space: Resources ........................................................ 336

B.2. Mitigation Reconstruction ............................................................................................... 337

B.2.1. Mitigation Reconstruction: Overview ............................................................................ 337

B.2.2. Mitigation Reconstruction: Eligibility ............................................................................ 337

B.2.3. Mitigation Reconstruction: Application and Submission Information ........................ 345

B.2.4. Mitigation Reconstruction: Subaward Implementation .............................................. 350

B.2.5. Mitigation Reconstruction: Closeout ............................................................................ 354

B.2.6. Mitigation Reconstruction: Resources ......................................................................... 355

B.3. Structure Elevation .......................................................................................................... 356

B.3.1. Structure Elevation: Overview....................................................................................... 356

B.3.2. Structure Elevation: Eligibility ....................................................................................... 356

B.3.3. Structure Elevation: Application and Submission Information ................................... 361

B.3.4. Structure Elevation: Subaward Implementation ......................................................... 364

B.3.5. Structure Elevation: Closeout ....................................................................................... 367

B.3.6. Structure Elevation: Resources .................................................................................... 368

B.4. Stabilization ..................................................................................................................... 370

B.4.1. Stabilization: Overview .................................................................................................. 370

B.4.2. Stabilization: Eligibility .................................................................................................. 370

B.4.3. Stabilization: Application and Submission Information .............................................. 387

B.4.4. Stabilization: Subaward Implementation ..................................................................... 388

B.4.5. Stabilization: Closeout .................................................................................................. 389

B.4.6. Stabilization: Resources ............................................................................................... 389

B.5. Flood Risk Reduction ....................................................................................................... 390

B.5.1. Flood Risk Reduction: Overview ................................................................................... 390

B.5.2. Flood Risk Reduction: Eligibility .................................................................................... 396

B.5.3. Flood Risk Reduction: Application and Submission Information ............................... 402

B.5.4. Flood Risk Reduction: Subaward Implementation ...................................................... 404

B.5.5. Flood Risk Reduction: Closeout .................................................................................... 406

B.5.6. Flood Risk Reduction: Resources ................................................................................. 407

B.6. Floodproofing ................................................................................................................... 409

Hazard Mitigation Assistance Program and Policy Guide

B.6.1. Floodproofing: Overview................................................................................................ 409

B.6.2. Floodproofing: Eligibility ................................................................................................ 413

B.6.3. Floodproofing: Application and Submission Information ............................................ 417

B.6.4. Floodproofing: Subaward Implementation .................................................................. 419

B.6.5. Floodproofing: Closeout ................................................................................................ 420

B.6.6. Floodproofing: Resources ............................................................................................. 421

B.7. Tsunami Vertical Evacuation Refuge .............................................................................. 422

B.7.1. Tsunami Vertical Evacuation Refuge: Overview .......................................................... 422

B.7.2. Tsunami Vertical Evacuation Refuge: Eligibility ........................................................... 423

B.7.3. Tsunami Vertical Evacuation Refuge: Application and Submission Information ....... 432

B.7.4. Tsunami Vertical Evacuation Refuge: Subaward Implementation ............................. 435

B.7.5. Tsunami Vertical Evacuation Refuge: Closeout ........................................................... 437

B.7.6. Tsunami Vertical Evacuation Refuge: Resources ........................................................ 438

B.8. Safe Room ........................................................................................................................ 439

B.8.1. Safe Room: Overview .................................................................................................... 439

B.8.2. Safe Room: Eligibility..................................................................................................... 440

B.8.3. Safe Room: Application and Submission Information ................................................ 455

B.8.4. Safe Room: Subaward Implementation ....................................................................... 460

B.8.5. Safe Room: Closeout..................................................................................................... 462

B.8.6. Safe Room: Resources ................................................................................................. 464

B.9. Wildfire Mitigation ............................................................................................................ 465

B.9.1. Wildfire Mitigation: Overview ........................................................................................ 465

B.9.2. Wildfire Mitigation: Eligibility ......................................................................................... 465

B.9.3. Wildfire Mitigation: Application and Submission Information .................................... 474

B.9.4. Wildfire Mitigation: Subaward Implementation ........................................................... 479

B.9.5. Wildfire Mitigation: Closeout ......................................................................................... 480

B.9.6. Wildfire Mitigation: Resources ...................................................................................... 481

B.10. Retrofit ........................................................................................................................... 483

B.10.1. Retrofit: Overview ........................................................................................................ 483

B.10.2. Retrofit: Eligibility ........................................................................................................ 487

B.10.3. Retrofit: Application and Submission Information .................................................... 493

B.10.4. Retrofit: Subaward Implementation ........................................................................... 497

B.10.5. Retrofit: Closeout ........................................................................................................ 499

B.10.6. Retrofit: Resources ..................................................................................................... 499

B.11. Secondary Power Source .............................................................................................. 501

B.11.1. Overview ...................................................................................................................... 501

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B.11.2. Secondary Power Source: Eligibility ........................................................................... 503

B.11.3. Secondary Power Source: Application and Submission Information ....................... 510

B.11.4. Secondary Power Source: Subaward Implementation ............................................. 512

B.11.5. Secondary Power Source: Closeout ........................................................................... 513

B.11.6. Secondary Power Source: Resources ........................................................................ 514

B.12. Warning System............................................................................................................. 515

B.12.1. Warning Systems: Overview ....................................................................................... 515

B.12.2. Warning Systems: Eligibility ........................................................................................ 515

B.12.3. Warning Systems: Application and Submission Information .................................... 517

B.12.4. Warning Systems: Subaward Implementation .......................................................... 518

B.12.5. Warning Systems: Closeout ........................................................................................ 518

B.12.6. Warning Systems: Resources ..................................................................................... 519

B.13. Aquifer Recharge, Storage and Recovery .................................................................... 520

B.13.1. Aquifer Recharge, Storage and Recovery: Overview ................................................. 520

B.13.2. Aquifer Recharge, Storage and Recovery: Eligibility ................................................. 521

B.13.3. Aquifer Recharge, Storage and Recovery: Subaward Implementation .................... 527

B.13.4. Aquifer Recharge, Storage and Recovery: Closeout ................................................. 528

B.13.5. Aquifer Recharge, Storage and Recovery: Resources .............................................. 529

C. Other Innovative Solutions ......................................................................................................... 530

C.1. Other Innovative Solutions: Application and Submission Information ......................... 530

Part 13. Management Costs ................................................................................................. 531

A. Eligibility ....................................................................................................................................... 531

A.1. Eligible Activities .............................................................................................................. 531

A.1.1. Personnel Time Eligible Under Management Costs .................................................... 533

A.2. Ineligible Activities ........................................................................................................... 533

B. Application and Submission Information .................................................................................. 533

B.1. Declining Management Costs ......................................................................................... 534

B.2. Activity and Schedule ...................................................................................................... 534

B.3. Allowable Costs ................................................................................................................ 534

B.3.1. Unallowable Costs ......................................................................................................... 535

B.3.2. Budget ............................................................................................................................ 535

B.3.3. Obligation ....................................................................................................................... 536

B.4. Subaward Implementation .............................................................................................. 538

B.4.1. Program Reporting and Monitoring .............................................................................. 538

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B.4.2. Budget and Scope of Work Change ............................................................................. 538

B.5. Closeout ........................................................................................................................... 539

B.5.1. Closeout Withholding .................................................................................................... 539

B.5.2. Availability of Management Costs ................................................................................ 539

Part 14. Program Administration by States .......................................................................... 541

A. Program Administration by States Background and Overview ................................................. 541

B. State, Tribal or Territorial PAS Request ..................................................................................... 541

B.1. PAS: Disaster Delegation ................................................................................................ 542

B.2. PAS: Non-Disaster Delegation of Local Mitigation Plan Approval ................................. 542

C. PAS Criteria.................................................................................................................................. 542

D. PAS FEMA Assessment............................................................................................................... 542

E. PAS Operational Agreement ....................................................................................................... 543

E.1. PAS: Disaster Delegation ................................................................................................. 543

E.2. PAS: Non-Disaster Delegation of Local Mitigation Plan Approval ................................. 543

F. PAS Update to HMGP and HMGP Post Fire Administrative Plan .............................................. 544

F.1. PAS: Disaster Delegation ................................................................................................. 544

F.2. PAS: Non-Disaster Delegation of Local Mitigation Plan Approval ................................. 544

G. PAS Delegation Options ............................................................................................................. 544

G.1. PAS: Application Review .................................................................................................. 544

G.2. PAS: Benefit-Cost Analysis .............................................................................................. 546

G.3. PAS: Grants Management ............................................................................................... 546

G.4. PAS: Fiscal Management ................................................................................................ 546

G.5. PAS: Mitigation Planning ................................................................................................. 547

H. Environmental Review Under PAS ............................................................................................. 547

I. State Approval of Local Mitigation Plans Under PAS ................................................................. 548

I.1. PAS: Disaster Delegation .................................................................................................. 549

I.2. PAS: Non-Disaster Delegation .......................................................................................... 549

J. PAS Performance Monitoring ...................................................................................................... 549

J.1. PAS: Disaster Delegation Grants Management Activities .............................................. 549

J.2. PAS: Disaster and Non-Disaster Delegation of Local Mitigation Plan Approval ........... 550

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K. Non-Compliance Under PAS ....................................................................................................... 550

L. Revocation of PAS Status ........................................................................................................... 550

M. Subapplicant or Subrecipient Appeal Under PAS .................................................................... 551

N. Financial Statement Audits Under PAS ..................................................................................... 551

O. State Approval of Local Mitigation Plans Under PAS ................................................................ 551

O.1. PAS: Disaster Delegation ................................................................................................ 553

O.2. PAS: Non-Disaster Delegation ........................................................................................ 553

P. PAS Performance Monitoring ..................................................................................................... 553

P.1. PAS: Disaster Delegation Grants Management Activities ............................................. 553

P.2. PAS: Disaster and Non-Disaster Delegation of Local Mitigation Plan Approval ........... 554

Q. Non-Compliance Under PAS ....................................................................................................... 554

R. Revocation of PAS Status ........................................................................................................... 554

S. Subapplicant or Subrecipient Appeal Under PAS ..................................................................... 554

T. Financial Statement Audits Under PAS ...................................................................................... 554

U. Program Audits Under PAS ......................................................................................................... 555

V. PAS and High-Risk Recipients .................................................................................................... 555

W. PAS Roles and Responsibilities ................................................................................................. 555

X. PAS Evaluation ............................................................................................................................ 556

Y. PAS Delegated Activity Categories ............................................................................................. 557

Y.1. PAS: Time Frame for Past Performance ......................................................................... 557

Y.2. PAS: Data Needed in Recipient Request Letter ............................................................. 557

Y.2.1. PAS: Application Review ................................................................................................ 557

Y.2.2. PAS: Benefit-Cost Analyses ........................................................................................... 559

Y.2.3. PAS: Grants Management ............................................................................................. 559

Y.2.4. PAS: Fiscal Management .............................................................................................. 561

Y.2.5. PAS: Mitigation Planning (disaster and Non-Disaster Agreements) ........................... 562

Y.2.6. PAS: Commitment to Mitigation .................................................................................... 563

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Part 15. FEMA Contacts ........................................................................................................ 566

Part 16. Appendices .............................................................................................................. 568

A. Acronyms ..................................................................................................................................... 568

B. Glossary ....................................................................................................................................... 571

C. Authorizing Statutes and Regulations ....................................................................................... 585

D. HMGP Project Subapplication Minimum Eligibility Criteria Checklist ...................................... 589

E. HMGP Planning Subapplication Minimum Eligibility Criteria Checklist ................................... 595

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List of Figures

Figure 1. Roles of State, Local, Tribal and Territorial Entities Throughout the HMA Process .............. 37

Figure 2. HMA Grant Process ................................................................................................................... 42

Figure 3. Scoping Process ........................................................................................................................ 44

Figure 4. EHP Information Gathering and the Formal Review Process ................................................. 58

Figure 5. Eight-Step Decision-Making Process for Floodplain Management Considerations and

Protection of Wetlands ............................................................................................................................. 87

Figure 6. Request for Information Process Flowchart .......................................................................... 147

Figure 7. HMGP Ceiling Review Process ................................................................................................ 201

Figure 8. Standard Versus Enhanced Mitigation Plans Under HMGP ................................................. 202

Figure 9. HMGP Funding Breakdown ..................................................................................................... 204

Figure 10. HMGP Management Costs Breakdown ............................................................................... 206

Figure 11. HMGP Second Appeal Process Flowchart ........................................................................... 215

Figure 12. HMGP Post Fire Funding Breakdown ................................................................................... 224

Figure 13. HMGP Post Fire Management Costs Breakdown................................................................ 227

Figure 14. HMGP Post Fire Second Appeal Process Flowchart ........................................................... 234

Figure 15. Inspection and Survey Considerations ................................................................................ 366

List of Tables

Table 1: HMA Guidance/Guide Applicability .............................................................................................. 4

Table 2. HMA Program Comparison ......................................................................................................... 35

Table 3: Eligible Subapplicants ................................................................................................................ 65

Table 4: Eligible Activities by Program ..................................................................................................... 72

Table 5: BCA Social Benefits Values ...................................................................................................... 120

Table 6: Ecosystem Services Benefits Values ....................................................................................... 121

Table 7: Environmental and Historic Preservation Checklist ............................................................... 142

Table 8: Request for Information Timelines .......................................................................................... 145

Table 9: Federal Financial Report Timing .............................................................................................. 171

Table 10: Closeout Toolkit: Checklist for Hazard Mitigation Assistance Subawards.......................... 191

Table 11: HMGP Quarterly Progress Report Timing .............................................................................. 211

Table 12: HMGP Post Fire Quarterly Progress Report Timing .............................................................. 229

Table 13: BRIC Quarterly Progress Report Timing ................................................................................ 241

Table 14: FMA Quarterly Progress Report Timing ................................................................................. 248

Table 15: Eligible Codes and Standards Activities................................................................................ 282

Table 16: Eligible Activities to Evaluate the Adoption and/or Implementation of Codes and Standards

Activities................................................................................................................................................... 283

Table 17: Eligible Post-Disaster Code Enforcement and Recovery Activities ...................................... 286

Table 18. Eligibility for Pre-Calculated Benefits Based on Structure Type and Location ................... 304

Table 19: Generally Allowable Costs for Property Acquisition and Structure Demolition or Relocation

................................................................................................................................................................. 316

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Table 20: Eligible Mitigation Reconstruction Activities ......................................................................... 338

Table 21: Eligible Mitigation Reconstruction Activities and Assistance Limits ................................... 339

Table 22: Eligible Structure Elevation Activities .................................................................................... 357

Table 23: Examples of Eligible Stabilization Activities .......................................................................... 370

Table 24: Function and Efficiency of Streambank Stabilization Measures ........................................ 386

Table 25: Likelihood of Cost-Effectiveness of Floodproofing Project .................................................. 414

Table 26: HMA-Assisted Tsunami Vertical Evacuation Refuge Minimum Usable Floor Area per

Occupant ................................................................................................................................................. 426

Table 27: Eligible and Ineligible Components of Tsunami Vertical Evacuation Refuges ................... 429

Table 28: Eligible Safe Room Activities ................................................................................................. 442

Table 29: HMA Safe Room Minimum Usable Floor Area per Safe Room Occupant ........................... 447

Table 30: Example Community Safe Room Size ................................................................................... 448

Table 31: Tornado Residential Safe Room Aggregate Benefits by State ............................................ 453

Table 32: Eligible and Ineligible Components of Residential and Community Safe Rooms .............. 457

Table 33: Eligible Wildfire Management Activities ................................................................................ 465

Table 34: Eligible Retrofit Activities ....................................................................................................... 488

Table 35: Pre-Calculated Benefit Amounts for Wind Retrofit Projects ................................................ 489

Table 36: Obligation Information by Total Award Amount .................................................................... 537

Table 37: FEMA Regions ......................................................................................................................... 566

Table 38. HMGP Project Subapplication Minimum Eligibility Criteria Checklist ................................. 589

Table 39. HMGP Planning Subapplication Minimum Eligibility Criteria Checklist .............................. 595

Hazard Mitigation Assistance Program and Policy Guide

Part 1. Introduction 1

Part 1. Introduction

This Introduction addresses the scope and applicability of the 2023 Hazard Mitigation Assistance

Program and Policy Guide (HMA Guide or the Guide); provides an overview of the programmatic

changes made since the Federal Emergency Management Agency (FEMA) issued the Feb. 27, 2015,

Hazard Mitigation Assistance Guidance and the Hazard Mitigation Assistance Guidance Addendum

(2015 HMA Guidance and Addendum); and addresses guiding principles and priorities for Hazard

Mitigation Assistance (HMA) programs: Hazard Mitigation Grant Program (HMGP), Hazard Mitigation

Grant Program Post Fire (HMGP Post Fire), Building Resilient Infrastructure and Communities (BRIC)

and Flood Mitigation Assistance (FMA).

Hazard mitigation is defined as any sustained action taken to reduce or eliminate long-term risk to

people and property from natural hazard events and their effects. The long-term impact of hazard

mitigation actions can be distinguished from those actions that are more closely associated with

immediate preparedness, response and recovery activities, as hazard mitigation is the only

emergency management phase specifically dedicated to breaking the cycle of damage,

reconstruction and repeated damage.

HMA programs are mandated to provide assistance to state, local, tribal and territorial governments

so they can plan for and implement activities that reduce or mitigate future disaster losses in their

communities long term.

State, local, tribal and territorial governments are encouraged to take

advantage of HMA programs both before and after disasters.

HMA programs are not the sole source of federal mitigation assistance. Mitigation is supported

through other means and programs at FEMA, which are highlighted below, as well as at other

government agencies. The Department of Housing and Urban Development, the Small Business

Administration, the Department of Agriculture and nonprofit and private organizations work

alongside FEMA to support mitigation.

FEMA is always looking for ways to enhance the suite of mitigation programs to better serve

stakeholders. While the HMA Guide covers HMGP, HMGP Post Fire, BRIC and FMA, FEMA encourages

stakeholders to explore other programs such as the

Safeguarding Tomorrow through Ongoing Risk

Mitigation Revolving Loan Fund (Safeguarding Tomorrow RLF) program to find additional sources of

assistance to meet their mitigation needs. The Safeguarding Tomorrow RLF program is intended to

provide low-cost loans to help communities fund additional mitigation measures and may be used to

meet the non-federal cost share for other HMA programs.

Robert T. Stafford Disaster Relief and Emergency Assistance Act, Public Law 100-707 (Nov. 23, 1988); amending the

Disaster Relief Act of 1974, Public Law 93-288 (May 22, 1974).

This program is not included in the HMA Guide, as it is still under development, but more information can be found on the

Safeguarding Tomorrow RLF program webpage

Hazard Mitigation Assistance Program and Policy Guide

Part 1. Introduction 2

A. Complementary FEMA Mitigation Programs

FEMA aims to prepare communities, reduce suffering, and speed recovery through its portfolio of

Resilience programs, which includes Hazard Mitigation Assistance, Mitigation Planning, Risk

Mapping, Assessment and Planning (Risk MAP), and other Resilience and Preparedness grants.

FEMA’s recovery programs, Public Assistance (PA) and Individual Assistance (IA), also provide

mitigation opportunities to help communities build back better in the wake of disaster. Each of these

programs is key to building more resilient communities.

The National Mitigation Planning program is responsible for implementing requirements for hazard

mitigation planning and the HMA Division is responsible for all aspects of the HMA programs; the

Mitigation Planning program and HMA have a close partnership. The Mitigation Planning program

and HMA closely coordinate on mitigation planning subapplications before subapplicants receive

HMA funding.

Successful mitigation activities, including those assisted by HMA programs, are based on well-crafted

mitigation plans. Mitigation plans allow state, local, tribal and territorial governments to organize

their long-term strategies for protecting people and property from future natural hazard events after

assessing all disaster risks and vulnerabilities common to their planning areas. The mitigation

planning process is prescribed in regulations and should result in mitigation actions based on a fair,

logical and fact-based thought process. The mitigation plan must be adopted by the jurisdiction and

approved by FEMA unless otherwise delegated. Adoption and approval of state, local, tribal and

territorial plans are eligibility requirements for HMGP, HMGP Post Fire, BRIC and FMA.

State and

tribal mitigation plans are also eligibility requirements for PA Categories C-G, Fire Management

Assistance Grants (FMAGs), and the Rehabilitation of High Hazard Potential Dam (HHPD) grants.

These plans need to be updated every five years to account for changing risk profiles and priorities.

Through Risk MAP, FEMA provides communities with education, risk communication and outreach to

better protect residents from flood risks. The Risk MAP project lifecycle emphasizes community

engagement and partnerships to ensure a whole community approach that reduces flood risk and

builds more resilient communities. Risk MAP risk assessment information strengthens a local

community’s ability to make more informed decisions. Risk MAP allows communities to better

determine and prioritize activities funded under HMA programs.

Through PA and IA, FEMA supports mitigation activities done in conjunction with eligible repair or

restoration of homes and facilities during the recovery process. PA Mitigation is often referred to as

“406 Mitigation,” as the basis for this program is in Section 406 of the

Robert T. Stafford Disaster

Relief and Emergency Assistance Act (Stafford Act).

Under IA, the Individuals and Households

For mitigation planning, the term “state” is inclusive of the District of Columbia, American Samoa, Commonwealth of

Northern Mariana Islands, Guam, Puerto Rico and the U.S. Virgin Islands according to 44 Code of Federal Regulations (CFR)

§ 201.2

44 CFR § 201.3

Public Law 100-707 (Nov. 23, 1988); amending the Disaster Relief Act of 1974, Public Law 93-288 (May 22, 1974)

Hazard Mitigation Assistance Program and Policy Guide

Part 1. Introduction 3

Program provides funds for hazard mitigation assistance to help eligible homeowners repair or

rebuild stronger, more durable homes.

The HHPD grant program provides technical, planning, design and construction assistance in the

form of grants to non-federal sponsors for the rehabilitation of eligible high-hazard potential dams.

The HHPD program is authorized by 33 United States Code (U.S.C.) § 467f-2

B. HMA Guide Scope

FEMA issues policies to articulate the agency’s intent to apply statutory and regulatory authority to

achieve desired outcomes. The purpose of the HMA Guide is to outline the policy and procedural

requirements of HMA’s programs over the lifecycle of an activity.

C. HMA Guide Applicability and Effective Date

The HMA Guide is used to achieve consistent implementation of the HMA programs across the

nation and should be a tool to aid decision-making. The HMA Guide is not law; however, it must be

followed when it is citing applicable statutory and regulatory requirements. When describing policy,

the HMA Guide should be followed to ensure consistent and fair administration of the HMA

programs.

The effective date of the HMA Guide is March 23, 2023. The 2023 HMA Guide applies to HMGP,

HMGP Post Fire, BRIC and FMA. Unless stated otherwise in the HMA Guide or an appropriate

authoritative source, the HMA Guide applies and supersedes the 2015 HMA Guidance and

Addendum and all policies and guidance issued between Feb. 2015 and the date of publication of

the HMA Guide.

Major disaster declarations made and Notices of Funding Opportunity (NOFOs) published prior to the

effective date continue to be governed by the guide (including any policy directives) in effect at the

time of the major disaster declaration or NOFO. This includes applications/subapplications

submitted and awards/subawards made under those prior disaster declarations and NOFOs.

For HMGP, the HMA Guide applies to Presidential Disaster Declarations declared on or after the date

of publication unless indicated otherwise.

Hazard Mitigation Assistance Program and Policy Guide

Part 1. Introduction 4

The Disaster Recovery Reform Act of 2018

made legislative changes to the Stafford Act and created

the HMGP Post Fire program.

For HMGP Post Fire, the HMA Guide applies to FMAG declarations

issued or published on or after March 23, 2023.

For FMA, the HMA Guide applies to NOFOs published on or after the effective date. This includes

applications/subapplications submitted and awards/subawards made under the NOFOs.

On Aug. 4, 2020, FEMA established the BRIC program, which implements Section 1234 of the

Disaster Recovery Reform Act, and is authorized under Section 203 of the Stafford Act.

For BRIC,

the HMA Guide applies to applications/subapplications submitted and awards/subawards made

under BRIC NOFOs issued on or after March 23, 2023. BRIC applications and subapplications

submitted before the effective date of the HMA Guide are governed by the NOFO and BRIC guidance

materials applicable for the year in which the applications are made, rather than prior versions of the

HMA Guidance and the Addendum that were published before the implementation of BRIC.

FEMA may use the Pre-Disaster Mitigation (PDM) program when administering grant funding as

directed by Congress. For PDM, the HMA Guide generally applies to NOFOs published on or after

March 23, 2023. Please refer to the relevant PDM NOFO for additional guidance.

If any requirements in the HMA Guide conflict with the applicable NOFO, the requirements in the

NOFO take precedence. The HMA Guide is subject to legal and regulatory changes enacted after

publication. FEMA periodically assesses its program and policy guidance and may issue new policy or

guidance. The information provided in the HMA Guide is applicable unless otherwise stated in

updated policy or other guidance materials.

Table 1

summarizes the applicability of the various versions of the HMA Guidance/Guide to the HMA

programs:

Table 1: HMA Guidance/Guide Applicability

Program The 2023 HMA Guide Applies

to:

2015 HMA Guidance and Addendum

or Prior Versions Apply to:

Hazard Mitigation

Grant Program (HMGP)

Major disaster declarations

made on or after March 23,

2023

Major disaster declarations made

before March 23, 2023

Division D of Public Law 115-254 (Oct. 5, 2018)

Section 1204 of the Disaster Recovery Reform Act amended Section 404 of the Stafford Act to allow FEMA to provide

HMGP assistance for hazard mitigation measures that substantially reduce the risk of future damage, hardship, loss or

suffering in any area affected by a major disaster, or any area affected by a fire for which assistance was provided under

the FMAG program (Section 420 of the Stafford Act). The HMGP Post Fire framework was outlined in FEMA Policy #207-

088-2: Hazard Mitigation Grant Program—Post Fire (April 29, 2019) and is superseded by the HMA Guide.

States, federally recognized tribes and territories affected by fires resulting in an FMAG declaration on or after Oct. 5,

2018, but before March 23, 2023, are governed by the HMGP Post Fire framework outlined in FEMA Policy #207-088-2.

Disaster Recovery Reform Act of 2018 (Public Law 115-254); 42 U.S.C. § 5133

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Part 1. Introduction 5

Program The 2023 HMA Guide Applies

to:

2015 HMA Guidance and Addendum

or Prior Versions Apply to:

HMGP Post Fire FMAG declarations made on or

after March 23, 2023

FMAG declarations made on or after

Oct. 5, 2018, and before March 23,

2023

Building Resilient

Infrastructure and

Communities (BRIC)

NOFO published on or after

March 23, 2023

Not applicable

(follow the information posted on the

“

Building Resilient Infrastructure and

Communities” webpage)

Flood Mitigation

Assistance (FMA)

NOFO published on or after

March 23, 2023

NOFO published before March 23,

2023

D. Applicability of Other Publications

Unless otherwise noted, when the HMA Guide references requirements detailed in other publications

(including FEMA, other government and professional publications), those requirements are

applicable as follows:

 For HMGP and HMGP Post Fire, applicants must follow the version of the publication in effect

on the date of the disaster declaration.

 For BRIC and FMA, applicants must follow the requirements in the applicable NOFO. Unless

otherwise noted in the NOFO, applicants must follow the version of the publication in effect

on the start date of the application period.

E. Strategic Considerations for Mitigation

The HMA Guide takes into account the following strategic considerations: The National Mitigation

Investment Strategy, community lifelines, climate change, equity, and building codes and standards.

These topics are explored in further detail below.

E.1. National Mitigation Investment Strategy

In Aug. 2019, FEMA published the National Mitigation Investment Strategy. The Investment Strategy

is a national strategy for advancing mitigation investment to reduce risks posed by natural hazards

(e.g., sea level rise, droughts, floods, hurricanes, tornadoes, wildfires and earthquakes) and to

increase the nation’s resilience to natural hazards. It was developed by the Mitigation Framework

States, federally recognized tribes and territories affected by fires resulting in a FMAG declaration on or after Oct. 5,

2018, but before March 23, 2023, are governed by the HMGP Post Fire framework outlined in FEMA Policy #207-088-2.

Hazard Mitigation Assistance Program and Policy Guide

Part 1. Introduction 6

Leadership Group, which is chaired by FEMA.

The Mitigation Framework Leadership Group

comprises federal, state, local, tribal and territorial public-sector representatives. Its responsibilities

include organizing mitigation efforts across the federal government, integrating federal efforts to

deliver the mitigation core capabilities described in the National Mitigation Framework

, and

assessing the effectiveness of these capabilities across the United States.

Through the Mitigation

Framework Leadership Group and its HMA programs, FEMA continually looks for opportunities to

coordinate among federal agencies and programs to better align mitigation efforts to advance the

National Mitigation Investment Strategy.

The Investment Strategy responds to a recommendation made in 2015 by the Government

Accountability Office after reviewing the federal response to Hurricane Sandy. Among the

Government Accountability Office’s key findings were that mitigation investments had not been

coordinated within and outside of the government, thereby reducing the effectiveness of

investments. Thus, the Investment Strategy calls for non-federal partners and the federal

government to work together to better identify, prioritize and implement mitigation investments.

The Investment Strategy’s purpose is to increase the nation’s resilience to natural hazards through

more effective, efficient mitigation investment. The Investment Strategy’s objective is to identify and

measure the effectiveness of mitigation investments and inform decisions on when and where to

make investments. The Investment Strategy’s recommendations focus specifically on how the

federal government and non-federal partners can identify, support, influence and align whole

community mitigation investments.

The Investment Strategy’s goals are to:

1. Show how mitigation investments reduce risk: Goal 1 encourages a common understanding of

how mitigation investments reduce risks to people, homes, neighborhoods, cultural and historic

resources, ecosystems, and lifelines such as communications, energy, transportation and water.

Recommendations to achieve this goal include making mitigation investments relevant,

increasing investments by building the capacity of communities to address their risks, and using

common measures to aid decision-making for mitigation investment.

2. Coordinate mitigation investments to reduce risk: Goal 2 encourages information sharing,

strategy coordination and making funding sources easier to access and use. Improved access to

risk and risk reduction information will help the federal government and non-federal partners

justify mitigation investments and choose the most cost-effective and reasonable actions.

The Mitigation Framework Leadership Group is a national coordinating group authorized by the Post-Katrina Emergency

Management Reform Act of 2006, Title VI of Public Law 109-295 (Oct. 4, 2006).

The National Mitigation Framework describes the benefits of being prepared by understanding risks and what actions

can help address those risks. The second edition of the National Mitigation Framework was published by FEMA in 2016

and focuses on a culture of preparedness that is centered on risk and resilience. The document provides context for how

the whole community works together and how mitigation efforts relate to all other parts of national preparedness. Focusing

on the mitigation aspect of preparedness, the Framework addresses how the nation will develop, deploy and coordinate

mitigation core capabilities to reduce loss of life and property by lessening the impact of disasters.

Hazard Mitigation Assistance Program and Policy Guide

Part 1. Introduction 7

Improved coordination will help the whole community more accurately forecast where mitigation

can be effective and when to pursue mitigation investments.

3. Make mitigation investment standard practice: Goal 3 calls for the whole community to consider

mitigation in all investment decisions, especially for buildings and infrastructure. This includes

adopting and enforcing up-to-date building codes, safeguarding lifelines and critical

infrastructure, and using and expanding financial products and approaches that transfer and

reduce risk. Financial products and approaches could include funding, incentives and

opportunities to transfer financial risk.

The HMA Guide considers and addresses some of the Investment Strategy’s goals. Additionally, while

the Investment Strategy does not make structural changes to existing federal programs, such as

HMA programs, the programs play an important part in reaching the Investment Strategy’s goals.

HMA programs support mitigation activities that reduce or eliminate potential losses to state, local,

tribal and territorial governments, fostering resilience against the effects of natural disasters.

The Investment Strategy’s principles, which are also relevant to the HMA programs, are:

 The Whole Community: All goals and recommendations require collaboration and

commitment by the federal government, non-federal partners and individuals. The

Whole

Community includes:

o Individuals and families, including those with disabilities.

o Businesses.

o Faith-based and community organizations.

o Nonprofit groups.

o Schools and academia.

o Media outlets.

o All levels of government including federal, state, local, tribal and territorial partners.

 Regional and community planning: The whole community should consider regional and

community planning for mitigation activities. This includes public and private planning efforts

for land use, the environment, infrastructure, transportation, site planning and urban design.

Planning is foundational to identifying and developing sound mitigation activities that can be

funded by HMA programs.

 Nature-based solutions and natural assets: The whole community should consider nature-

based solutions for cost-effectively managing the impacts of natural hazards. These solutions

may provide additional environmental, social and economic benefits. The whole community

Hazard Mitigation Assistance Program and Policy Guide

Part 1. Introduction 8

should also consider protecting natural assets that help with mitigation (e.g., wetlands that

reduce the impact of waves on coastal land).

 Linking risk reduction and financial risk transfer: The whole community should better link risk

reduction and financial risk transfer mechanisms for natural hazard–related risks. For

example, flood and other forms of hazard insurance accelerate recovery time frames to

reduce loss by transferring financial risks from disasters. Additionally, insurance providers

can increase incentives for policy holders to physically reduce a policy holder’s risks and

reduce overall damage, suffering and costs from a disaster.

 Changing conditions: Population growth, development and changing weather conditions will

influence mitigation needs and priorities.

 Vulnerable populations: The whole community should ensure vulnerable populations are

represented during implementation of Investment Strategy recommendations.

E.2. Community Lifelines

An additional priority that has emerged for HMA programs since the release of the Investment

Strategy is the importance of community lifelines.

As part of the National Response Framework,

FEMA developed the community lifeline framework (lifelines).

Lifelines enable the continuous

operation of critical business and government functions and are essential to human health and

safety or economic security. Lifelines are the integrated network of assets, services and capabilities

that are used day-to-day to support the recurring needs of the community; mitigating lifelines should

reduce cascading impacts across government and business functions and lessen system-wide

damage.

Lifelines have served as a driving force behind the agency’s strategic goal of promoting and

sustaining a ready FEMA and prepared nation. At the same time, the concept is intended to increase

agencies’ response effectiveness and to promote the unification of response efforts across

communities with the goal to stabilize or re-establish the communities’ most fundamental services

during and after a disaster.

Community lifelines were tested and validated by federal, state, local, tribal and territorial partners in the aftermath of

hurricanes Michael (Oct. 2018), Florence (Sep. 2018) and Dorian (Aug. 2019), Super Typhoon Yutu (Oct. 2018), the Alaska

earthquake (Dec. 2018) and the coronavirus disease 2019 (COVID-19) pandemic (2020). They were formalized in the

National Response Framework, Fourth Edition (Oct. 2019).

The National Preparedness System outlines an organized process for the whole community to move forward with its

preparedness activities and achieve the National Preparedness Goal. The National Response Framework sets the strategy

and doctrine for how the whole community builds, sustains and delivers the response core capabilities identified in the

National Preparedness Goal in an integrated manner with the other mission areas. The fourth edition of the National

Response Framework emphasizes enhancing the unity of effort between the government and the private sector through

better coordination and collaboration.

Hazard Mitigation Assistance Program and Policy Guide

Part 1. Introduction 9

Lifelines are the most fundamental services needed for society to function. These services enable

the continuous operation of government and business functions that are essential to human health

and economic security. Lifelines include safety, security, food, shelter, and water, health and medical

services, energy, communications, transportation and hazardous materials. The stabilization of

community lifelines allows other aspects of society to function. While lifelines were developed to

support response planning and operations, the concept can be applied across the entire

preparedness cycle, including mitigation planning and mitigation activities.

The Investment Strategy encourages the federal government, non-federal partners and individuals to

identify and prioritize activities that mitigate risk to lifelines to reduce the likelihood of disruption to

critical services essential to human health, public safety and economic security. Mitigating risks to

lifelines before, during and after disasters may result in less devastation, and response and recovery

efforts may be faster and more effective.

Through its HMA programs, FEMA promotes mitigation to reduce risks to lifelines before disasters

and quickly restore lifelines after disasters to prevent cascading impacts. HMA programs also

encourage applicants and subapplicants to include partners responsible for maintaining and

improving lifelines into their mitigation planning. Additionally, applicants and subapplicants are

encouraged to prioritize activities that will improve the resilience of critical services to disadvantaged

populations in future hazard events and that can be implemented using a wide range of public and

private resources in accordance with the Investment Strategy.

E.3. Climate Change

Climate change increases the frequency, duration and intensity of storms, floods, fires and extreme

temperatures that threaten the well-being of people across our nation. These variations can increase

risks and magnify challenges for state and local governments. Communities are feeling the impacts

of a changing climate now, and these multi-hazard trends will continue to increase in severity over

the next century.

Emergency managers face the task of adapting to both immediate challenges

and the long-term impacts of emerging climate risks.

In light of this reality, President Biden issued Executive Order (EO) 13990

on Protecting Public Health

and the Environment and Restoring Science to Tackle the Climate Crisis (Jan. 20, 2021); EO 14008

on Tackling the Climate Crisis at Home and Abroad (Jan. 27, 2021); and EO 14030 on Climate-

Related Financial Risk (May 20, 2021), which place climate change at the heart of federal priorities.

FEMA recognizes challenges posed by climate change, including more intense storms, frequent

heavy precipitation, heat waves, drought, prolonged wildfires, extreme flooding and changes in sea

levels. Climate change is driving both disaster suffering and costs up and will continue to have

U.S. Global Change Research Program, Fourth National Climate Assessment, Volume II: Impacts, Risks, and Adaptation

in the United States, 2018; Intergovernmental Panel on Climate Change, The Physical Science Basis. Contribution of

Working Group 1 to the Sixth Assessment Report of the Intergovernmental Panel on Climate Change, 2021

Hazard Mitigation Assistance Program and Policy Guide

Part 1. Introduction 10

increasing impacts on hazard mitigation, preparedness, response and recovery operations as well as

the resilience of critical infrastructure and various emergency assets.

Climate adaptation measures can serve as hazard mitigation measures since both efforts have the

same goals: long-term risk reduction for people, increased safety for communities and enhanced

community resilience. Successful climate adaptation and hazard mitigation measures can vary

depending on the scope of the action but often include changes in processes, behaviors, and

infrastructure. The key difference between hazard mitigation and climate adaptation is that hazard

mitigation encompasses all natural hazards, including short-term, episodic events that may or may

not be connected to climate change. Climate adaptation efforts are focused on mitigating risk and

impacts from current or expected climate conditions, so adapting to the expected impacts of climate

change is a form of hazard mitigation. A hazard mitigation activity that addresses climate change in

its design and approach can help reduce a community’s risk from current and future climate events.

FEMA has issued several policies that facilitate the hazard mitigation of adverse effects from climate

change on the built environment, structures and infrastructure. Communities are taking steps to

address climate change through the engagement of individuals, households, local leaders,

representatives of local organizations, private sector employers, and through existing community

networks. Communities are also working to protect themselves and the environment by adopting and

updating building codes, encouraging the conservation of natural and beneficial functions of the

floodplains, investing in more resilient infrastructure, and engaging in mitigation planning. FEMA

plays an important role in supporting community-based resilience efforts, establishing policies, and

providing guidance to promote mitigation options that protect critical infrastructure, lifelines and

public resources.

Through EO 14030, President Biden reinstated EO 13690

on Establishing a Federal Flood Risk

Management Standard and a Process for Further Soliciting and Considering Stakeholder Input (Jan.

30, 2015). This executive order re-established the Federal Flood Risk Management Standard to

address current and future flood risk and ensure that projects funded with taxpayer dollars last as

long as intended. FEMA has begun partial implementation of the Federal Flood Risk Management

Standards with the issuance of new policies to increase elevation standards for HMA projects. Refer

Part 4.I and Part 12 for more information about these requirements.

FEMA also encourages communities to engage in environmentally friendly construction practices

when implementing hazard mitigation projects, including the use of low embodied carbon concrete,

environmentally preferable asphalt and other low-carbon materials.

EO 13690 was issued under President Obama’s administration and was revoked on Aug. 15, 2017, by President Trump

through EO 13807 on Establishing Discipline and Accountability in the Environmental Review and Permitting Process for

Infrastructure Projects (Aug. 15, 2017).

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Part 1. Introduction 11

E.4. Equity

Changing climate conditions pose a unique threat to the nation’s most at-risk populations by

exacerbating the impacts of disasters on underserved and socially vulnerable communities, which

already experience the greatest losses from natural hazards. The Investment Strategy recognizes the

need to represent vulnerable populations, and the continued emphasis on equitable outcomes

across the HMA programs has also been strengthened by other federal actions. On January 20,

2021, President Biden signed EO 13985

on Advancing Racial Equity and Support for Underserved

Communities Through the Federal Government, which requires the federal government to “pursue a

comprehensive approach to advancing equity for all, including people of color and others who have

been historically underserved, marginalized, and adversely affected by persistent poverty and

inequality.”

EO 13985 defines equity as “the consistent and systematic fair, just, and impartial treatment of all

individuals, including individuals who belong to underserved communities that have been denied

such treatment, such as Black, Latino, and Indigenous and Native American persons, Asian

Americans and Pacific Islanders and other persons of color; members of religious minorities; lesbian,

gay, bisexual, transgender, queer and other (LGBTQ+) persons; persons with disabilities; persons

who live in rural areas; and persons otherwise adversely affected by persistent poverty or inequality.”

Data has shown that the most underserved and marginalized populations in our communities tend to

live in at-risk hazard-prone areas or in homes with substandard construction.

The data also

indicates that underserved and marginalized communities are less likely to recover after a disaster.

Thus, FEMA has long worked with applicants and subapplicants to ensure that the concerns and

needs of all members of the community are being considered, especially those in the communities

that are most underserved and marginalized. FEMA works to ensure that all communities have fair

and equal access to FEMA programs, including HMA programs, to mitigate future impacts of

disasters and to reduce suffering.

HMA developed an Equity Action Plan in response to EO 13985. The HMA Equity Action Plan

includes

a series of actions focused on programmatic advances in the areas of data collection and analysis,

program design, and outreach and engagement that will comprehensively assess HMA programs and

help to increase state, local, tribal, and territorial capability and capacity. These efforts will provide

program enhancements to increase the access to and the navigation of HMA programs. These

enhancements include initiatives such as Direct Technical Assistance and location-based mitigation

solutions designed to target the underserved communities that have the greatest natural hazard

mitigation and resilient recovery needs.

HMA also aims to promote equity in the delivery of its programs in line with the Administration’s

Justice40 Initiative, which is outlined in EO 14008. In 2021, two FEMA HMA grant programs were

selected as pilot programs under the Justice40 Initiative: BRIC and FMA. Under this pilot, BRIC and

Emrich, Christopher T., Tate, Eric, Larson, Sarah E., and Zhou, Yao, “Measuring social equity in flood recovery funding,”

Environmental Hazards, 19:3, 228-250.

Hazard Mitigation Assistance Program and Policy Guide

Part 1. Introduction 12

FMA will prioritize assistance that benefits disadvantaged communities as referenced in EO 14008.

More information can be found in the respective programs’ NOFOs.

E.5. Building Codes and Standards

Stronger, more resilient building codes strengthen community lifelines, reduce community risk and

reduce overall disaster recovery costs.

Adopting and enforcing hazard-resistant building codes is

one of the most cost-effective ways to safeguard communities against natural disasters. FEMA is

leading efforts to advance the recognition of current building codes as a foundational element of

resilience and will continue this effort through its HMA programs.

FEMA’s Building Codes Save: A Nationwide Study

found that universally adopting and enforcing up-

to-date building codes could avoid more than $600 billion in losses by 2060 for known flood,

hurricane and seismic risks. This finding, as well as the congressional passage of the Disaster

Recovery Reform Act, laid the foundation for the development of the

FEMA Building Codes Strategy.

The strategy will help to coordinate and prioritize FEMA’s activities to advance the adoption and

enforcement of disaster-resistant building codes and standards for FEMA programs and

communities nationwide and informs FEMA’s requirements for achieving the Strategy’s goals.

Its goals are to:

1. Integrate building codes and standards across FEMA.

2. Strengthen nationwide capability for superior building performance.

3. Drive public action on building codes.

Other federal efforts also acknowledge the importance of hazard-resistant building codes and

advocate for their adoption and enforcement. FEMA’s goals around building codes are reflected in

the National Mitigation Investment Strategy, which makes several recommendations concerning the

adoption, use, and enforcement of building codes, including using the latest published edition of

building codes to ensure adequate structural integrity, mechanical integrity, fire prevention and

energy conservation.

The White House launched the National Initiative to Advance Building Codes, building upon the

recent work of FEMA. In launching the National Initiative to Advance Building Codes, the White House

called on the Mitigation Framework Leadership Group to conduct a whole-of-government effort to

ensure alignment across all federally-funded or -supported building construction to use the most

recent editions of building codes, noting that “[c]ommunities that have adopted modern building

codes are already saving an estimated $1.6 billion a year in avoided damage from major hazards,

“Building codes” refers to the set of published editions of codes, specifications and standards, including relevant hazard-

resistant provisions, which were developed by voluntary consensus standards bodies to protect public health and safety.

Hazard Mitigation Assistance Program and Policy Guide

Part 1. Introduction 13

with projected cumulative savings of $132 billion through 2040, a figure that will become much

higher if more communities adopt modern codes.”

There is still a long way to go in the collective effort to build a climate-resilient nation. Code adoption

and enforcement still lag in areas of the country where disaster risks are the most severe; roughly

one-third of communities facing damaging wind, hurricane, tornado, seismic or flood hazards have

adopted hazard-resistant codes.

With the average annual number of billion-dollar disasters

continuing to increase, adopting building codes is one of the most effective actions that communities

can take to build resilience for the long term. Model building codes improve with each edition based

on lessons learned, building science advancements, engineering practices and technological

advances. Staying current, by adopting and enforcing the latest published building codes can save

lives and protect property for generations to come. HMA programs provide critical assistance to

state, local, tribal and territorial governments to adopt and improve enforcement of the most recent

building codes. For more information regarding building code assistance available under HMA

programs, refer to Part 11

F. Changes from the 2015 Hazard Mitigation Assistance

Guidance and Addendum

FEMA incorporated policies and guidance materials issued since the publication of the 2015 HMA

Guidance and Addendum into the HMA Guide while simultaneously simplifying and streamlining HMA

program guidance. Additionally, FEMA made organizational revisions to improve the user experience.

The following sections provide an overview of the changes, organized by topic area.

F.1. Program and Policy Changes

Substantial program and policy changes included in the HMA Guide are outlined in this section.

 Building Resilient Infrastructure and Communities (BRIC) Program: The HMA Guide

supersedes

FEMA Policy #104-008-05, Building Resilient Infrastructure and Communities

(Feb. 14, 2022), by incorporating the information into Part 10. Section 1234 of the Disaster

Recovery Reform Act created BRIC, amending Section 203 of the Stafford Act. Its first award

cycle was in fiscal year 2020.

 Pre-Disaster Mitigation (PDM) Grant Program: Specific guidance for PDM was removed and

language was added to clarify that FEMA may use the PDM program when administering

grant funding as directed by Congress. For more information and guidance regarding the

Biden-Harris Administration Launches Initiative to Modernize Building Codes, Improve Climate Resilience, and Reduce

Energy Costs White House Fact Sheet (June 1, 2022)

FEMA tracks current building code adoption status for state, local, tribal and territorial governments, reaching

approximately 22,000 jurisdictions across the nation through Building Code Adoption Tracking, more commonly referred to

as BCAT.

Hazard Mitigation Assistance Program and Policy Guide

Part 1. Introduction 14

PDM program, refer to the relevant fiscal year’s PDM Notice of Funding Opportunity, the

2015 HMA Guidance and Addendum or earlier versions, and other programmatic guidance

relating to PDM.

 HMGP Houses of Worship Eligibility: In Part 4, FEMA does not include houses of worship in

the list of eligible private nonprofit (PNPs) subapplicants for HMGP as indicated in the policy

clarification, Project Eligibility for Private Nonprofit Houses of Worship under Hazard

Mitigation Assistance, which FEMA issued after passage of the Bipartisan Budget Act of

2018. Changes in the Bipartisan Budget Act for houses of worship are applicable to the

Public Assistance Program but not to HMGP. Any changes to HMGP’s subapplicant eligibility

criteria for PNPs must be done separately through regulation. As such, the applicable HMGP

eligibility criteria for PNPs is established in

44 C.F.R. §§ 206.221(e) and 206.434(a)(2)(ii).

 HMGP Post Fire Application Period: The application submission time limit under 44 CFR §

206.436(d) was deemed non-applicable to the HMGP Post Fire program. Therefore, the

HMGP Post Fire program has its own application period, which is clarified in Part 10.

 HMGP Post Fire Policy: The HMA Guide supersedes FEMA Policy #207-088-2, Hazard

Mitigation Grant Program—Post Fire (April 29, 2019), by incorporating the information in Part

10. This policy applied to FMAG declarations issued or published on or after Oct. 5, 2018.

 Ecosystem Services Benefits Policy: The HMA Guide supersedes FEMA Policy # 108-024-02,

Ecosystem Service Benefits in Benefit-Cost Analysis for FEMA’s Mitigation Programs, and any

FEMA materials or content relating to it. Information regarding ecosystem services benefits is

incorporated into

Part 5 and Part 12. FP-108-024-02 eliminated the 0.75 Benefit-Cost

Analysis (BCA) threshold and permitted the consideration of ecosystem service benefits for a

project regardless of BCR value. Therefore, ecosystem services benefits can be used in the

BCA for all eligible HMA activities that demonstrate the restoration or enhancement of the

natural environment. FP-108-024-02 superseded two previous policies:

o FEMA Policy #108-024-01: Considerations of Environmental Benefits in the Evaluation of

Acquisition Projects under the Hazard Mitigation Assistance Programs (June 18, 2013),

which introduced the allowance of ecosystem service benefits if the Benefit-Cost Ratio

(BCR) of an acquisition/open-space project was 0.75 or greater using traditional risk

reduction benefits.

o FEMA policy clarification: Benefit-Cost Analysis Tools for Drought, Ecosystem Services,

and Post-Wildfire Mitigation for Hazard Mitigation Assistance (May 27, 2016), which

stated that the inclusion of ecosystem service benefits in the BCA was no longer limited

to only acquisition/open-space mitigation activities. The clarification authorized the use

of ecosystem service benefits for all mitigation project types when the mitigation project

was calculated to have a BCR of 0.75 or greater using traditional risk-reduction benefits.

Hazard Mitigation Assistance Program and Policy Guide

Part 1. Introduction 15

 Program Administration by States (PAS) Pilot Policy: The HMA Guide supersedes the

Addendum to the Hazard Mitigation Assistance Guidance: Program Administration by States

Pilot, Hazard Mitigation Grant Program (Oct. 16, 2017) and any FEMA materials or content

relating to it. The HMA Guide incorporates the PAS guidance into Part 14.

o Additionally, FEMA updated the Minimum Eligibility Criteria Checklists, previously

contained in Appendices F and G in the 2015 HMA Guidance and Addendum, and made

them applicable to HMGP only and for purposes of PAS. For mitigation projects, refer to

Appendix Part 16.D, and for mitigation planning activities, refer to Appendix Part 16.E

 National Flood Insurance Program Eligibility Requirements and Structures in the Special

Flood Hazard Area (SFHA): The 2015 HMA Guidance and Addendum indicated that for

structures that remain in the SFHA after the implementation of the mitigation project, flood

insurance must be maintained for the life of the structure up to an amount at least equal to

the project cost or to the maximum limit of coverage made available with respect to the

particular property, whichever is less.

o In Part 4, and based on the statutory language, FEMA clarified that for structures in the

SFHA at the time of project completion and for all structures receiving assistance through

FMA, flood insurance must be maintained for the life of the structure and after the

completion of the mitigation project. Insurance must also be maintained regardless of

whether the structure is subsequently removed from the SFHA. In addition, FEMA

updated language in the notice of flood insurance requirements to correct the statutory

reference and clarify that failure to obtain and maintain flood insurance for these

structures will result in the property being ineligible for future HMA awards.

 HMGP Period of Performance Updates: In Part 8, FEMA extended the award period of

performance from 36 to 48 months for HMGP to allow more time for activity completion and

closeout activities. This change is made in conjunction with updates to closeout deadlines in

2 CFR Part 200. FEMA also expanded authority to regional administrators to grant up to two

12-month extensions to the HMGP period of performance. This change will alleviate the

administrative burden by reducing the number of period of performance extension requests

and the amount of time needed by FEMA to process them. Additionally, FEMA updated the

deadline for the recipient to request an extension of the award period of performance from

60 days to 90 days before the period of performance expires.

 HMGP Application Period Extension: In Part 10, FEMA clarified recipient application period

extension requirements and included aspects of the Policy Memo: Hazard Mitigation Grant

Program (HMGP) Application Period Extensions to Support Effective and Expedient Program

Delivery.

 HMGP Ceiling: In Part 10, FEMA provided additional guidance regarding HMGP assistance

estimates and included aspects of the Policy Memo: Hazard Mitigation Grant Program

Hazard Mitigation Assistance Program and Policy Guide

Part 1. Introduction 16

Ceiling Update. The HMA Guide supersedes the policy memo and any FEMA materials or

content relating to it.

 HMGP Obligation: In Part 10, FEMA clarified that HMGP can only be obligated for new

activities when the application period and the period of performance are open.

 HMGP 12-Month Lock-in and De-obligation: In Part 10, FEMA clarified that assistance for

activities approved and obligated before the 12-month lock-in will not be de-obligated when

the lock-in is less than the previous estimate.

 Closeout Requirements: FEMA added general closeout requirements in Part 9 and activity-

specific closeout requirements in Part 11, Part 12 and Part 13.

o FEMA included procedures for requesting additional information when closeout reports

are deficient and information on when FEMA will administratively close out an award.

o FEMA included a definition for 100 percent work completion.

 Extraordinary Circumstances for Mitigation Plans: In Part 4 and Part 9, FEMA included

clarifying information about remedies of non-compliance when mitigation plans are not

completed within 12 months. If FEMA grants an extraordinary circumstances exception, a

local or tribal mitigation plan must be approved by FEMA within 12 months of the award of

the project subaward to that community.

o F

EMA clarified that if a plan is not provided within this time frame, the project subaward

will be terminated, and any costs incurred after notice of subaward termination will not

be reimbursed by FEMA.

o Additionally, FEMA clarified that if the mitigation plan is not approved by FEMA within 12

months of the award and if the subaward also involved a mitigation planning award,

FEMA should notify the recipient of its failure to meet the additional specific award or

subaward conditions. FEMA also should request that the issue be corrected following

remedies for non-compliance procedures, which is described in Part 8

. If compliance

cannot be achieved, FEMA will apply a remedy action to the subaward (and planning

subaward, if applicable) to address the non-compliance and may, as a result, withhold

assistance, recoup assistance, or suspend or terminate the planning subaward.

 Greatest Savings to the Fund Methodology: Because of the changes enacted by the Biggert-

Waters Flood Insurance Reform Act of 2012 FEMA discontinued the use of Greatest Savings

to the Fund methodology to demonstrate cost-effectiveness and removed reference to it from

the updated HMA Guide.

Public Law 112-141 (July 6, 2012)

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Part 1. Introduction 17

 Apportionment of HMGP Between Two Recipients: In Part 2Part 2 and Part 10, FEMA clarified

that the amount of HMGP assistance available under the disaster declaration will be

apportioned among applicants if there is more than one applicant under that disaster

declaration. That is, if a state and a federally recognized tribe are applicants under the same

disaster declaration, then the available HMGP assistance will be apportioned among the

state and the federally recognized tribe. The apportionment is based on the disaster

assistance provided within tribal lands.

 Reasonable Costs: FEMA added information about cost eligibility and cost reasonableness

principles under

2 CFR Part 200 to align with PA procedures. Generally, the HMA Guide

refers to the reasonable cost principles under 2 CFR Part 200. FEMA issued the Public

Assistance: Reasonable Cost Evaluation job aid (Oct. 13, 2018) on reasonable cost

evaluation. In 2018, HMA adopted PA guidance on the reasonable cost evaluation as part of

the implementation of Se

ction 1215 of the Disaster Recovery Reform Act on Management

Costs. FEMA has incorporated information from the Public Assistance Reasonable Cost

Evaluation Job Aid – Hazard Mitigation Grant Program Crosswalk FEMA job aid (Mar. 23,

2020) in Part 4.

 Real Property Disposition Requirements: To comply with 2 CFR § 200.311, FEMA added

information concerning the disposition of real property that was acquired or improved under

HMA when the property is no longer needed for the intended purpose. FEMA included

procedures for how and when the recipient must obtain disposition instructions from FEMA.

In addition, FEMA added that recipients must provide a completed SF-429, “Real Property

Status Report,” at closeout for all property acquired and for certain project types that

improve real property.

 Clarification of Effective Date of Other Publications: In Part 1, FEMA clarified the effective

date of other government and professional publications when the HMA Guide references

requirements detailed in these publications.

 Uniform Relocation Assistance and Real Property Acquisition Policies Act: In Part 4, FEMA

clarified that projects involving acquisition, rehabilitation or demolition may be subject to the

requirements of the Uniform Relocation Assistance and Real Property Acquisition Policies Act

of 1970 (URA).

Additionally, FEMA clarified that costs incurred to meet URA requirements

are eligible and should be included in the subapplication budget. The 2015 HMA Guidance

and Addendum included URA requirements only under the acquisition project type.

 Insular Areas: In Part 4, FEMA updated the list of insular areas eligible for waiver of cost

share requirements. The 2015 HMA Guidance mistakenly listed Puerto Rico as an insular

area although it was not included as an insular area in the applicable statute.

Public Law 91-646 (Jan. 2, 1971), as amended, 42 U.S.C. Chapter 61

Hazard Mitigation Assistance Program and Policy Guide

Part 1. Introduction 18

 Build America, Buy America Act: In Part 4, FEMA included information from FEMA Interim

Policy #207-22-0001, Buy America Preference in FEMA Financial Assistance Programs for

Infrastructure (Nov. 16, 2022), which establishes new procurement requirements for BRIC

and FMA awards.

 Phased Projects: FEMA added information indicating that phased projects are eligible under

BRIC and FMA.

 Federal Flood Risk Management Standard: FEMA incorporated the requirements from FEMA

Policy #206-21-003-0001, Partial Implementation of the Federal Flood Risk Management

Standard for Hazard Mitigation Assistance Programs (Dec. 7, 2022) in Part 4 and Part 12.

 Pre-Award Costs: In Part 3, FEMA provided additional information about the eligibility of pre-

award costs.

 HMGP and HMGP Post Fire 5 Percent Codes and Standards: In Part 10 and Part 11, FEMA

removed the “Additional 5 Percent Initiative” and established “5 Percent Codes and

Standards.” The name and requirements have been updated to provide dedicated funding to

strengthen the use of building codes and standards. This funding source must be used for

codes and standards activities and may be paired with the 5 Percent Initiative for a total of

up to 10% of the HMGP ceiling amount or HMGP Post Fire available assistance amount.

F.1.1. REGULATORY CHANGES

 Changes to Title 2 Code of Federal Regulations (CFR) Part 200: The HMA Guide includes

regulatory changes made in

2 CFR Part 200, published in the Federal Register on Aug. 13,

2020, that expand information on grants management requirements and procedures. The

effective date of the changes was Nov. 12, 2020, except for two provisions, 2 CFR §

200.216 and 2 CFR § 200.340 that were effective on Aug. 13, 2020.

o FEMA updated information about subaward and award deadlines in relation to the period

of performance and clarified that all costs, including management costs, must be spent

within the subaward or award period of performance.

o FEMA updated the recipient closeout liquidation period from 90 to 120 calendar days

and updated the deadline for recipients to submit final reports to 120 calendar days

after the end of the award period of performance.

o FEMA added information about procurement and contracting requirements under 2 CFR

Part 200, including 2 CFR § 200.320 and 2 CFR § 200.321

and related documentation

requirements, including the following:

‒ New requirements for states to follow socioeconomic contracting steps and to

enco

urage the use of domestic preferences.

Hazard Mitigation Assistance Program and Policy Guide

Part 1. Introduction 19

‒ Prohibition on procuring certain types of covered telecommunications equipment

from Huawei and ZTE Technologies, as published in FEMA Policy #405-143-1,

Prohibitions on Expending FEMA Award Funds for Covered Telecommunications

Equipment or Services (May 10, 2022).

‒ Allowability of non-competit

ive procurement methods for purchases below the micro-

purchase threshold.

o FEMA updated budget and scope change requirements to align with 2 CFR § 200.

308

and FEMA's Standard Terms and Conditions.

 Updated Regulations that Impact HMA Programs: FEMA incorporated the changes made to

the HMA regulations with the final rule published on Sept. 10, 2021, and effective Oct. 1,

2021.

F.1.2. EXECUTIVE ORDER CHANGES

 Advancing Racial Equity and Support for Underserved Communities Through the Federal

Government: On Jan. 20, 2021, President Biden issued EO 13985 on Advancing Racial

Equity and Support for Underserved Communities Through the Federal Government, which

requires the federal government to “pursue a comprehensive approach to advancing equity

for all, including people of color and others who have been historically underserved,

marginalized, and adversely affected by persistent poverty and inequality.” As a priority for

FEMA and HMA, FEMA included reference to EO 13985 in

Part 1.

 Protecting Public Health and the Environment and Restoring Science to Tackle the Climate

Crisis: On Jan. 20, 2021, President Biden issued EO 13990 on Protecting Public Health and

the Environment and Restoring Science to Tackle the Climate Crisis, which requires that the

federal government “promote and protect our public health and the environment; and

conserve our national treasures and monuments, places that secure our national memory.”

As a priority for FEMA and HMA, FEMA included reference to EO 13990 in

Part 1.

 Tackling the Climate Crisis at Home and Abroad: On Jan. 27, 2021, President Biden Issued

EO 14008 on Tackling the Climate Crisis at Home and Abroad, which requires the federal

government to “put the climate crisis at the center of United States foreign policy and

national security, while taking a government-wide approach to the climate crisis.” As a

priority for FEMA and HMA, FEMA included reference to EO 14008 in

Part 1.

 Climate-Related Financial Risk: On May 20, 2021, President Biden issued EO 14030 on

Climate-Related Financial Risk, which reinstates EO 13690 on Establishing a Federal Flood

Risk Management Standard and a Process for Further Soliciting and Considering

FEMA’s final rule entitled “FEMA's Hazard Mitigation Assistance and Mitigation Planning Regulations” published at 86 FR

50653 (Sep. 10, 2021) and correction published at 86 FR 51832 (effective Sep. 17, 2021).

Hazard Mitigation Assistance Program and Policy Guide

Part 1. Introduction 20

Stakeholder Input (Jan. 30, 2015). Through the reinstatement of EO 13690, President Biden

reestablished the Federal Flood Risk Management Standard to address current and future

flood risk and ensure that projects funded with taxpayer dollars last as long as intended. As a

priority for FEMA and HMA, FEMA included reference to EO 14030 in Part 1

F.1.3. COST-EFFECTIVENESS CHANGES

 Cost-Effectiveness: FEMA consolidated information about cost-effectiveness and principles

governing the BCA into

Part 5. Additionally, certain guidance issued since the 2015 HMA

Guidance and Addendum has been incorporated. FEMA provided additional BCA resources to

support evaluating the cost-effectiveness of various mitigation activities including aquifer

recharge, storage and recovery, floodplain and stream restoration, floodwater diversion and

storage, ecosystem services benefits, and post-wildfire mitigation actions.

 Benefit Cost Analysis and Management Costs: In Part 5, FEMA clarified that management

costs may be excluded from project costs for the purpose of the BCA.

 Benefit Cost Analysis and Social Benefits: In Part 5, FEMA eliminated the requirement to

meet a 0.75 BCR threshold before social benefits can be incorporated in a BCA.

 Cost-Effectiveness Determinations for Acquisitions and Elevations in the SFHA Using Pre-

Calculated Benefits Memorandum: In Part 12, FEMA updated the pre-calculated benefits for

acquisitions, elevations and mitigation reconstruction projects in the Special Flood Hazard

Area based on an updated pre-calculated benefits memorandum published on Sept. 30,

2021, that is available on the FEMA “Benefit-Cost Analysis”

webpage.

 Pre-Calculated Benefits for Certain Hospital Generators to Demonstrate Cost-Effectiveness:

Part 5 and Part 12, FEMA updated content by referring to pre-calculated benefits for

certain hospital generators based on a memorandum published on Sept. 30, 2021, that is

available on the FEMA “Benefit-Cost A

nalysis” webpage.

 Benefit-Cost Analysis Efficiencies for Repetitive Loss and Severe Repetitive Loss Acquisition

Projects Located Outside the Designated Special Flood Hazard Area (SFHA): In Part 5 and

Part 12, FEMA updated content to include the use of pre-calculated benefits to demonstrate

cost effectiveness for Repetitive Loss and Severe Repetitive Loss acquisition projects located

outside the designated SFHA based on a memorandum published on Feb. 15, 2022, that is

available on the FEMA “Benefit-Cost Analysis” w

ebpage.

 Water Resource Projects and the BCA Determination: In Part 5, FEMA clarified that water

resource projects are not exempt from the HMA statutory requirement to demonstrate cost-

effectiveness even though these projects are exempt under the Office of Management and

Budget’s Circular A-94, Guidelines and Discount Rates for Benefit-Co

st Analysis of Federal

Programs. The cost-effectiveness determination should be supplemented by consideration of

the White House Council on Environmental Quality’s Updated Principles, Requirements and

Hazard Mitigation Assistance Program and Policy Guide

Part 1. Introduction 21

Guidelines for Water and Land Related Resources Implementation Studies criteria if

applicable.

 BCA Guidance for Floodplain and Stream Restoration Projects: In Part 12, FEMA included

more information on the cost-effectiveness of floodplain and stream restoration projects

from the Supplemental BCA Guidance for Floodplain and Stream Restoration Projects.

 BCA Guidance for Floodwater Diversion and Storage Projects: In Part 12, FEMA included

more information on the cost-effectiveness of floodwater diversion and storage projects from

the Supplemental BCA Guidance for Floodwater Diversion and Storage Projects.

 Cost Effectiveness Determination for Non-Residential Hurricane Wind Retrofit Measures: In

Part 12, FEMA included more information on the cost-effectiveness of non-residential

hurricane wind retrofits from the Cost Effectiveness Determination for Non-Residential

Hurricane Wind Retrofit Measures Funded by FEMA Memorandum.

F.1.4. MANAGEMENT COSTS CHANGES

 HMGP Management Cost Interim Policy: The HMA Guide supersedes FEMA Policy #104-11-1,

Hazard Mitigation Grant Program Management Costs (Interim) (Nov. 14, 2018). The interim

policy applied to all major disasters declared on or after Aug. 1, 2017. FEMA has also

incorporated information from Hazard Mitigation Grant Program Managemen

t Costs Policy

(Interim) (March 23, 2020) frequently asked questions document.

o The HMA Guide supersedes the interim policy. Information regarding management costs

for HMGP and HMGP Post Fire is included in Part 10 and Part 13. Any FEMA materials or

content relating to the interim policy is hereby made final. The interim policy was

developed to carry out amendments to Section 324 of the Stafford Act by Section 1215

of the Disaster Recovery Reform Act. As a result, 44 CFR Part 207, w

hich implemented

Section 324 prior to the amendment, and the chapters relating to HMGP management

costs in the 2015 HMA Guidance and Addendum were no longer effective and were

superseded.

o FEMA has clarified how to calculate management costs based on the total amount of the

ard, subapplication requirements, and procedures for incremental obligation and

closeout.

o FEMA removed the provision from the interim policy requiring FEMA to develop an

agreement with the recipient to outline the release of funding for management cost

awards over $6 million. FEMA instead incorporated information from the Hazard

Mitigation Grant Program Management Costs Policy (Interim) frequently asked questions

document that set thresholds for incremental funding requirements.

o To align the HMGP management cost policy with revisions to 2 CFR Part 200

, FEMA

simplified information regarding when a subrecipient or recipient can claim management

Hazard Mitigation Assistance Program and Policy Guide

Part 1. Introduction 22

costs. In Part 13, FEMA removed language that stated that management costs must be

claimed within 180 days after work is completed; within 180 days after the latest period

of performance of the last nonmanagement cost HMGP project; or eight years from the

date of the disaster declaration. Removing this language means that there is no longer

an eight-year period of availability. Instead, FEMA clarified that management costs must

be incurred within the subaward or award period of performance.

 Management Costs and Total Amount of the HMGP Award: In Part 10, FEMA clarified that, for

management cost calculation, the “total amount of the HMGP award” means the total

amount of contributions based on applications submitted when the HMGP application period

closes or when the total HMGP ceiling is determined, whichever is later. Similarly, the “total

amount of the HMGP Post Fire award” means the total amount of contributions based on

applications submitted when the HMGP Post Fire application period closes or when the total

HMGP Post Fire available assistance amount is determined, whichever is later. FEMA also

clarified that in cases where the recipient submits subapplications in excess of the HMGP

ceiling (or for HMGP Post Fire, the available assistance amount), FEMA will only calculate

management costs on subapplication amounts up to the final HMGP ceiling amount or

HMGP Post Fire available assistance amount.

 Management Costs for Project Scoping/Advance Assistance: The 2015 HMA Guidance and

Addendum indicated that FEMA does not provide management costs for purposes of project

scoping/advance assistance and noted that management costs may only be awarded in

conjunction with project or planning awards and subawards. FEMA has since removed the

restriction that management costs may only be awarded in conjunction with a project or

planning award or subaward and has specified that project scoping/advance assistance

subawards are eligible for management costs. Refer to

Part 13 for more information.

 HMGP and HMGP Post Fire Management Costs: For HMGP and HMGP Post Fire, FEMA

clarified in

Part 10 that recipients cannot receive an additional 5% for management costs if

also acting as a subrecipient.

F.2. Project and Activity Changes

Substantial project and activity related changes included in the HMA Guide are outlined in this

section.

 Eligibility of HMA Applications with Pre-Award Demolitions: FEMA has generally found

acquisitions, mitigation reconstruction and other mitigation projects that included properties

with structures that had been demolished prior to application to FEMA as ineligible for HMA

funding because of its interpretation of these costs as “pre-award costs.”

o FEMA issued a policy clarification: Eligibility of Hazard Mitigation Assistance Applications

with Pre-Award Demolitions (Aug. 26, 2019), specifying that when a property owner uses

private funds to demolish an event-damaged structure—and the property had not been in

Hazard Mitigation Assistance Program and Policy Guide

Part 1. Introduction 23

an application submitted to FEMA at the time of the demolition—the demolition is not a

“connected action” under the National Environmental Policy Act (i.e., is not connected to

the FEMA federal project).

o Therefore, the demolition is not subject to FEMA review and approval for Environmental

and Historic Preservation compliance, the costs of the demolition are not considered pre-

award costs, and the demolition does not preclude a finding of project eligibility. The

demolition must be in accordance with state and local legal requirements as well as any

applicable federal law.

o The HMA Guide supersedes the policy clarification and any FEMA materials or content

relating to it, unless stated otherwise, and information regarding pre-award demolitions is

in Part 4 and Part 12

 Eligibility of Non-Localized Flood Risk Reduction Projects under FMA: In Part 12, FEMA

updated content to reflect that non-localized flood risk reduction projects may be eligible for

FMA if the Administrator specifically determines in approving a mitigation plan that such

activities are the most cost-effective mitigation activities for the National Flood Mitigation

Fund. This change reflects revisions to the FMA regulations that became effective Oct. 1,

2021.

 Codes and Standards Activities: In Part 11, FEMA provided more information on codes and

standards as eligible HMA activities.

 Nature-Based Solutions: In Part 12, FEMA provided more information on the eligibility of

nature-based solutions for many different project types and included an overarching

philosophy to encourage these approaches.

 Acquisition Projects: The HMA Guide incorporates FEMA Policy #302-094-0333, Hazard

Mitigation Assistance Acquisition Projects: Hydraulic Fracturing and Horizontal Directional

Drilling (July 6, 2017), and information regarding acquisition projects is in Part 12. The HMA

Guide supersedes the policy and any FEMA materials or content relating to it, unless stated

otherwise. FEMA also clarified recipient responsibilities and requirements for post-closeout

monitoring and reporting, including requirements to review post-acquisition land uses based

44 CFR § 80.19 in Part 12.

 Mitigation Reconstruction Projects: In Part 12, FEMA updated the cap on the federal cost

share for mitigation reconstruction from $150,000 to $220,000 per structure. FEMA also

clarified that it will no longer provide square-foot cost estimates for mitigation reconstruction

projects.

Public Law 91-190 (Jan. 1, 1970), 42 U.S.C. § 4321

Hazard Mitigation Assistance Program and Policy Guide

Part 1. Introduction 24

 Sinkhole Projects: The HMA Guide supersedes the FEMA policy clarification: Acquisition and

Relocation or Demolition of Structures on or near Sinkholes (April 24, 2015), which clarified

the eligibility of acquisition and relocation of demolition projects when the structure is

subject to sinkhole hazards. Information regarding the policy clarification is in

Part 12.

 Safe Room Projects: In Part 12, FEMA updated requirements to align with FEMA P-361, Safe

Rooms for Tornadoes and Hurricanes: Guidance for Community and Residential Safe

Rooms, Fourth Edition (April 2021), and the 2020 edition of International Code Council (ICC)

500, ICC/National Storm Shelter Association Standard for the Design and Construction of

Storm Shelters.

 Secondary Power Source Projects: The HMA Guide supersedes the FEMA fact sheet: Hazard

Mitigation Assistance Grant Funding for Microgrid Projects and the FEMA job aid: Eligibility of

Generators as a Fundable Project by the Hazard Mitigation Grant Program and Pre-Disaster

Mitigation Program. Information regarding these topics is in

Part 12. In addition, FEMA

expanded the eligibility of secondary power source projects, including generators, microgrids,

solar photovoltaic systems, and battery back-up systems.

 Tsunami Vertical Evacuation Refuge Projects: In Part 4 and Part 12, FEMA provided updated

guidance for tsunami vertical evacuation refuge projects.

 Wind Retrofit for Non-Residential Buildings Projects: In Part 12, FEMA expanded the eligibility

of wind retrofits to non-residential structures under HMGP and BRIC.

 Wildfire Mitigation Activities: FEMA provided updated guidance for post-wildfire flood

prevention activities and fire suppression systems, and removed the requirement that

hazardous fuels reduction projects must be located within a 2-mile distance of an at-risk

building or structure to be eligible to receive assistance under HMA grant programs. The

update is reflected in

Part 12.

 Beach Nourishment Projects: In the 2015 Guidance, beach nourishment was listed as an

ineligible mitigation activity. Beach nourishment is now eligible based on the

FEMA Policy

#204-078-112-1, Eligibility of Flood Risk Reduction Measures under the Hazard Mitigation

Assistance (HMA) Programs (June 27, 2014). The HMA Guide supersedes this policy. FEMA

also added information to clarify the eligibility of these activities under shoreline stabilization

Part 12.

 New Information on Mitigation Planning as an Eligible HMA Activity: Planning is one of the

cornerstones of effective hazard mitigation activities. Therefore, FEMA included additional

guidance and resources in

Part 3 and Part 11 regarding mitigation plan creation and updates

and planning-related activities. Also, FEMA strengthened language in Part 2 to reinforce the

connection across planning and project identification, selection and scoping.

Hazard Mitigation Assistance Program and Policy Guide

Part 1. Introduction 25

 Planning Related Activities: In Part 11, FEMA included more detailed information on the

eligibility of planning-related activities from the Hazard Mitigation Grant Program Planning-

Related Activities FEMA fact sheet.

 Aquifer Recharge, Storage and Recovery Projects: The HMA Guide supersedes the FEMA fact

sheet: Aquifer Storage and Recovery, and any materials and related content. Information

regarding aquifer recharge, storage and recovery is in

Part 12.

 Flood Diversion and Storage Projects: The HMA Guide supersedes the FEMA fact sheet: Flood

Diversion and Storage, and any materials and related content. Information regarding flood

diversion and storage projects is in

Part 12.

 Floodplain and Stream Restoration Projects: The HMA Guide supersedes the FEMA fact

sheet: Floodplain and Stream Restoration, and any materials and related content.

Information regarding floodplain and stream restoration projects is in

Part 12.

 Extreme Temperature Projects: In Part 12, FEMA included information on the eligibility of

activities that mitigate extreme temperature from the Mitigating the Risk of Extreme

Temperatures with Hazard Mitigation Assistance Funds FEMA fact sheet.

 Partnership Activities: In Part 11, FEMA added information indicating that partnership

activities are eligible for BRIC and FMA.

 Floodproofing: In Part 12, FEMA clarified the differences between wet and dry floodproofing

and their eligible uses.

F.3. General Changes

General changes included in the HMA Guide are outlined in this section.

 HMA Guidance and Addendum: The 2015 version of the HMA Guidance consisted of two

volumes: (1) The HMA Guidance, which contained the general principles applicable to all

HMA programs; (2) The Addendum, which listed eligible project types under all HMA

programs. Stakeholders indicated that having multiple documents and parts governing the

HMA programs can sometimes be confusing. The updated HMA Guide retains this distinction

between generally applicable principles and activity types. However, FEMA incorporated the

Addendum into the HMA Guide to improve usability.

 Job aids, fact sheets and policy clarifications to bolster existing guidance: Since the

publication of the 2015 HMA Guidance and Addendum, FEMA has issued additional

guidance in the form of fact sheets, policy clarifications and job aids for HMA-eligible

activities, including aquifer recharge, storage and recovery; floodplain and stream

restoration; flood diversion and storage; and generators. FEMA incorporated relevant content

found within these guidance documents into the project-specific parts of the HMA Guide

throughout and specifically in

Part 12. Job aids describing eligible HMA activities remain in

Hazard Mitigation Assistance Program and Policy Guide

Part 1. Introduction 26

effect despite their inclusion in the HMA Guide to the extent they are consistent with the

content of the HMA Guide. Additionally, FEMA reorganized and bolstered the HMA Guide to

further highlight capability and capacity building, management costs and project specific

criteria.

 Information Regarding “Frontloading HMA Program Eligibility Requirements”: Information

from 2015 HMA Guidance and Addendum, Part II, “Frontloading HMA Program Eligibility

Requirements,” was incorporated in other parts of the document, as appropriate. Part II

information was moved to

Part 3, which outlines items that applicants and subapplicants

should consider before they apply, such as creating or updating a mitigation plan, selecting

mitigation activities, scoping, considering assistance strategies, and making activity eligibility

determinations.

 The following Disaster Recovery Reform Act provisions were considered when developing the

HMA Guide :

o 1204 Wildfire Prevention.

o 1205 Additional Activities: Wildfire and Windstorm.

o 1210(b) Federally Authorized Water Resources Development Project.

o 1215 Management Costs.

o 1231 Guidance on Hazard Mitigation – Acquisition.

o 1233 Additional Hazard Mitigation Activities – Earthquake Early Warning.

o 1234 National Public Infrastructure Pre-Disaster Hazard Mitigation.

o 1235(a) Additional Mitigation Activities.

 Budget: FEMA replaced most references to “cost estimate” with “budget” to align with the

definition in

2 CFR Part 200.

 Hazard Mitigation Officer: The HMA Guide transitioned the “state hazard mitigation officer”

title to “hazard mitigation officer” to be more inclusive of tribes and territories.

 Ineligible Activities: FEMA clarified language in the list of ineligible activities section in Part 4

regarding projects in the Coastal Barrier Resources System, water quality infrastructure

projects, activities involving other federal entities, wildfire activities, and

response/preparedness activities. This list was formerly in Part III.E.2 in the 2015 HMA

Guidance.

Hazard Mitigation Assistance Program and Policy Guide

Part 1. Introduction 27

Introduction Resources

 Whole Community Guiding Principle: https://www.fema.gov/glossary/whole-community

 Community Lifelines: https://www.fema.gov/emergency-managers/practitioners/lifelines

 National Mitigation Investment Strategy: https://www.fema.gov/sites/default/files/2020-

10/fema_national-mitigation-investment-strategy.pdf

 National Mitigation Framework: https://www.fema.gov/sites/default/files/2020-

04/National_Mitigation_Framework2nd_june2016.pdf

 FEMA Resources for Climate Resilience:

https://www.fema.gov/sites/default/files/documents/fema_resources-climate-

resilience.pdf

 Climate Risk and Resilience Portal: https://disgeoportal.egs.anl.gov/ClimRR/

 National Risk Index: https://hazards.fema.gov/nri/

 Climate Mapping for Resilience and Adaptation: https://resilience.climate.gov/

 National Oceanic and Atmospheric Administration’s Sea Level Rise Viewer:

https://coast.noaa.gov/digitalcoast/tools/slr.html

 U.S. Climate Resilience Toolkit: https://toolkit.climate.gov/

 Heat.gov: https://www.heat.gov/

 Drought.gov: https://www.drought.gov/

 National Oceanic and Atmospheric Administration Sea Level Rise Portal:

https://oceanservice.noaa.gov/hazards/sealevelrise/

 Protecting Communities and Saving Money: The Case for Adopting Building Codes:

https://www.fema.gov/sites/default/files/2020-11/fema_building-codes-

save_brochure.pdf

 Building Codes Save: A Nationwide Study: https://www.fema.gov/emergency-

managers/risk-management/building-science/building-codes-save-study

 FEMA Building Codes Strategy: https://www.fema.gov/emergency-managers/risk-

management/building-science/building-codes-strategy

 Building Codes Adoption Playbook For Authorities Having Jurisdiction:

https://www.fema.gov/sites/default/files/documents/fema_building-codes-adoption-

playbook-for-authorities-having-jurisdiction.pdf

 FEMA Nationwide Building Code Adoption Tracking: https://www.fema.gov/emergency-

managers/risk-management/building-science/bcat

Hazard Mitigation Assistance Program and Policy Guide

Part 2. Overview of Hazard Mitigation Assistance Programs 28

Part 2. Overview of Hazard

Mitigation Assistance Programs

The Federal Emergency Management Agency (FEMA) Hazard Mitigation Assistance (HMA) programs

support mitigation activities that reduce or eliminate potential losses to state, local, tribal and

territorial governments, fostering resilience against the effects of disasters.

FEMA administers HMA programs that provide funding for hazard mitigation activities including

mitigation projects and capability- and capacity-building. The following programs are covered in the

HMA Guide:

1. Hazard Mitigation Grant Program (HMGP).

2. Hazard Mitigation Grant Program Post Fire (HMGP Post Fire).

3. Building Resilient Infrastructure and Communities (BRIC).

4. Flood Mitigation Assistance (FMA).

Part 2

provides an overview of HMGP, HMGP Post Fire, BRIC and FMA including the statutory and

regulatory authorities that govern them. Unique aspects of each of these programs are detailed in

Part 10. Part 2 also provides an outline of authorities governing grants management, an integral part

of the administration of HMA programs. It also briefly outlines the roles and responsibilities of state,

local, tribal and territorial governments and who can benefit from the HMA programs.

A. Hazard Mitigation Grant Program

HMGP ensures that state, local, tribal and territorial governments have the financial opportunity to

plan for and implement mitigation measures that reduce the risk of loss of life and property from

future natural disasters during the reconstruction process following a disaster. HMGP is authorized

by Section 404 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act

(Stafford

Act)

and implemented in regulations at 44 Code of Federal Regulations (CFR) §§ 206.430-440.

HMGP funding is available when authorized through a major disaster declaration. A governor,

tribal

chief executive, or equivalent, may request that HMGP funding be available to the state or territory

that was affected by the declared disaster. Federally recognized tribal governments, through their

The HMA Program and Policy Guide applies to the Pre-Disaster Mitigation (PDM) program as described in the relevant

NOFO. FEMA intends to announce these funding opportunities through Notices of Funding Opportunity, which will specify

the applicable program requirements.

Public Law 100-707 (Nov. 23, 1988); amending the Disaster Relief Act of 1974, Public Law 93-288 (May 22, 1974)

42 U.S.C. § 5122(5)

Hazard Mitigation Assistance Program and Policy Guide

Part 2. Overview of Hazard Mitigation Assistance Programs 29

tribal chief executive,

may also submit a request for a disaster declaration within their impacted

areas and request that HMGP funding be made available to them under that declaration. Upon the

declaration of a major disaster or an emergency, the governor or tribal chief executive and the FEMA

regional administrator or designee shall execute a FEMA-State Agreement or FEMA-Tribal Agreement.

The Agreements state the understandings, commitments and conditions for assistance under which

FEMA disaster assistance shall be provided.

For more information about the declaration process,

refer to 44 CFR §§ 206.31 – 49b or visit the FEMA “How a Disaster Gets Declared

” webpage.

The amount of HMGP funding available to the applicant is based on the estimated total federal

assistance, subject to the sliding scale formula that FEMA provides for disaster recovery for each

disaster declaration.

The formula provides for:

 Up to 15% of the first $2 billion of estimated aggregate amounts of disaster assistance.

 Up to 10% for amounts between $2 billion and $10 billion.

 Up to 7.5% for amounts between $10 billion and $35.333 billion.

For states and federally recognized tribal governments with enhanced mitigation plans, the eligible

assistance is up to 20% for estimated aggregate amounts of disaster assistance, not to exceed

$35.333 billion. The sliding scale does not apply to recipients with enhanced mitigation plans. For

more information on how to advance mitigation planning to become enhanced, visit the FEMA

“Regulations and Guidance

” webpage.

The amount of HMGP funding available under the disaster declaration is apportioned among the

applicants if there is more than one applicant. For example, if a state and a federally recognized tribe

are applicants under the same disaster declaration, then the available HMGP funding is apportioned

among the state and the federally recognized tribe. The apportionment is based on the disaster

assistance provided within tribal land.

The award period of performance for HMGP begins with the opening of the application period and

ends no later than 48 months from the close of the application period.

All applicants and subapplicants must have a FEMA-approved mitigation plan that has been adopted

by the jurisdiction in accordance with 44 CFR Part 201

and applicable mitigation planning policies to

receive HMGP funding.

In addition, recipients are required to prepare an HMGP Administrative Plan, which must be

approved by FEMA. The HMGP Administrative Plan is a procedural guide that details how the

recipient will administer HMGP awards.

42 U.S.C. § 5122(12)

44 CFR § 206.44

44 CFR § 206.432(b)

Hazard Mitigation Assistance Program and Policy Guide

Part 2. Overview of Hazard Mitigation Assistance Programs 30

For more HMGP guidance, refer to Part 10.

B. Hazard Mitigation Grant Program Post Fire

HMGP Post Fire assistance is available to help communities implement hazard mitigation measures

after wildfire disasters in any area that receives a Fire Management Assistance Grant (FMAG)

declaration.

Section 1204 of the Disaster Recovery Reform Act of 2018

amended Section 404 of the Stafford

Act to allow FEMA to provide HMGP Post Fire assistance for hazard mitigation measures that

substantially reduce the risk of future damage, hardship, loss or suffering in any area affected by a

fire for which assistance was provided under Section 420 of the Stafford Act.

Therefore, unlike

HMGP, the availability of HMGP Post Fire assistance is not contingent on a major disaster

declaration and is instead triggered by an FMAG declaration.

Eligible activities may be outside of

the declared area as long as the risk reduction benefits include the declared county or counties (e.g.,

watershed mitigation). If funding cannot be used in the declared areas, it may be made available

statewide.

States and territories that have received an FMAG declaration and certain federally recognized tribes

are eligible to apply for assistance under HMGP Post Fire.

Federally recognized tribes have multiple options for applying for HMGP Post Fire. Under an FMAG

declaration made to a state or territory, federally recognized tribes with burned land from the FMAG

declared event may request an HMGP award as recipients. Tribes (including federally recognized

tribes) may also apply through the state to FEMA as subapplicants. Subapplicants will follow the

standard HMGP subapplicant procedures consistent with program guidance including updates in

effect at the time of the FMAG declaration.

All applicants and subapplicants must have a FEMA-approved mitigation plan that has been adopted

by the jurisdiction in accordance with 44 CFR Part 201

and applicable mitigation planning policies to

receive HMGP Post Fire funding. In addition, recipients are required to prepare an HMGP

Administrative Plan that must be approved by FEMA. The HMGP Administrative Plan is a procedural

guide that details how the recipient will administer HMGP Post Fire awards.

Division D of Public Law 115-254 (Oct. 5, 2018)

As amended, Section 420(d) of the Stafford Act states that “whether or not a major disaster is declared, the President

may provide hazard mitigation assistance in accordance with Section 404 [of the Stafford Act] in any area affected by a fire

for which assistance was provided under this section.” Section 1204 of the Disaster Recovery Reform Act also amended

Section 420 of the Stafford Act to parallel the change in Section 404. Section 420 of the Stafford Act authorizes FEMA to

provide assistance under its FMAG program for the mitigation, management and control of any fire that threatens such

destruction as would constitute a major disaster.

44 CFR § 204.21

Hazard Mitigation Assistance Program and Policy Guide

Part 2. Overview of Hazard Mitigation Assistance Programs 31

Upon the declaration of a major disaster or an emergency, the governor or tribal chief executive and

the FEMA regional administrator or designee, shall execute a FEMA-State Agreement or FEMA-Tribal

Agreement. The Agreements state the understandings, commitments, and conditions for assistance

under which FEMA disaster assistance shall be provided.

For more information about the

declaration process, refer to 44 CFR §§ 206.31 – 49b or visit the FEMA “

How a Disaster Gets

Declared” webpage.

A signed FEMA-State Agreement or FEMA-Tribal Agreement is required to implement the HMGP Post

Fire award following FMAG declarations. HMGP Post Fire is implemented pursuant to the FMAG state

or tribal agreement.

For more HMGP Post Fire guidance, refer to Part 10

C. Building Resilient Infrastructure and Communities

BRIC supports state, local, tribal and territorial governments as they undertake hazard mitigation

activities, reducing the risks they face from disasters and natural hazards. The BRIC program seeks

to fund effective and innovative activities that will reduce risk, increase resilience, and serve as a

catalyst to encourage the whole community to invest in and adopt mitigation policies. BRIC is

designed to promote a national culture of preparedness and public safety by encouraging

investments to protect our communities and infrastructure and strengthen our national mitigation

capabilities to foster resilience.

BRIC was established as part of Section 1234 of the Disaster Recovery Reform Act, which amended

Section 203 of the Stafford Act.

In its amended version, Section 203 of the Stafford Act authorizes

FEMA to provide technical and financial assistance to state, local, tribal and territorial governments

for hazard mitigation measures that are cost-effective and designed to reduce injuries, loss of life

and damage and destruction of property. This includes damage to critical services and facilities.

The BRIC program is designed around the following guiding principles:

 Support state and local governments, tribes and territories through capability- and capacity-

building to enable them to identify mitigation actions and implement projects that reduce

risks posed by natural hazards.

 Encourage and enable innovation while allowing flexibility, consistency, and effectiveness.

 Promote partnerships and enable high-impact investments to reduce risk from natural

hazards with a focus on critical services and facilities, public infrastructure, public safety,

public health and communities.

44 CFR § 206.44

Public Law 100-707 (Nov. 23, 1988); amending the Disaster Relief Act of 1974, Public Law 93-288 (May 22, 1974)

Hazard Mitigation Assistance Program and Policy Guide

Part 2. Overview of Hazard Mitigation Assistance Programs 32

 Provide a significant opportunity to reduce future losses and minimize impacts on the

Disaster Relief Fund (DRF).

 Promote equity, including by helping members of disadvantaged groups and prioritizing 40%

of the benefits to disadvantaged communities as referenced in Executive Order (EO) 14008

on Tackling the Climate Crisis at Home and Abroad (Jan. 27, 2021), in line with the

Administration’s Justice40 Initiative.

 Support the adoption and enforcement of building codes, standards, and policies that will

protect the health, safety, and general welfare of the public, taking into account future

conditions, prominently including the effects of climate change, and have long-lasting

impacts on community risk reduction, including for critical services and facilities and for

future disaster costs.

States and territories that have had a major disaster declaration under the Stafford Act in the seven

years prior to the annual application period start date are eligible to apply for federal assistance

under BRIC as applicants. Federally recognized tribal governments can apply directly to FEMA for

federal assistance under BRIC as an applicant or through the state as a subapplicant. Federally

recognized tribal governments that have had a major disaster declaration under the Stafford Act in

the seven years prior to the annual application period start date——or are entirely or partially located

in a state that had a major disaster declaration in the seven years prior to the annual application

period start date——are eligible to apply as applicants. Local governments and tribes are eligible to

apply to states and territories for federal assistance under BRIC as subapplicants.

Individuals,

businesses and nonprofit organizations are not eligible to apply for BRIC assistance; however, an

eligible applicant or subapplicant may apply for funding on behalf of individuals, businesses and

nonprofit organizations.

The BRIC program distributes assistance annually and requires a cost share.

No later than 180

calendar days after each major disaster is declared under the Stafford Act and subject to assistance

availability, FEMA calculates the estimated aggregate amount of grants to be made under Sections

403 (“Essential Assistance”), 406 (“Repair, Restoration, and Replacement of Damaged Facilities”),

407 (“Debris Removal”), 408 (“Federal Assistance to Individuals and Households”), 410

(“Unemployment Assistance”), 416 (“Crisis Counseling Assistance and Training”) and 428 (“Public

Assistance Program Alternative Procedures”) of the Stafford Act for the major disaster. FEMA may set

aside up to 6% of that amount from the Disaster Relief Fund for deposit into the National Public

Infrastructure Pre-disaster Mitigation Fund to fund BRIC. The amount set aside must not reduce the

amounts otherwise made available under the referenced sections. FEMA assesses the amount of

funding set aside for BRIC annually and determines what portion of that amount will be available

2 CFR § 200.1 and 42 U.S.C. 5122(7).

Under Section 203(h) of the Stafford Act, the federal assistance may contribute up to 75% of the total cost of mitigation

activities approved by FEMA. In certain cases, the federal assistance may increase to up to 90%.

Hazard Mitigation Assistance Program and Policy Guide

Part 2. Overview of Hazard Mitigation Assistance Programs 33

during the following application period for the BRIC program. FEMA announces its determination in

the annual Notice of Funding Opportunity (NOFO) for the BRIC program.

All applicants and subapplicants must have a FEMA-approved mitigation plan that has been adopted

by the jurisdiction in accordance with 44 CFR Part 201

and applicable mitigation planning policies by

the application deadline and at the time FEMA obligates funding for mitigation activities. For more

information on applicable mitigation planning policies, refer to the FEMA “Hazard Mitigation

Planning” webpage.

For more BRIC guidance, refer to Part 10.

D. Flood Mitigation Assistance

FMA is a competitive program that provides funding to states, local communities, federally

recognized tribes and territories. Funds can be used for projects that reduce or eliminate the risk of

flood damage to structures insured by the National Flood Insurance Program (NFIP).

The National Flood Insurance Reform Act of 1994 amended Section 1366 of the National Flood

Insurance Act of 1968 and directed FEMA to provide financial assistance in the form of grants for

planning and carrying out activities designed to reduce the risk of flood damage to structures

covered under contracts for flood insurance with the NFIP.

The Biggert-Waters Flood Insurance

Reform Act of 2012 consolidated the Repetitive Flood Claims and Severe Repetitive Loss grant

programs into FMA.

FMA regulations can be found at 44 CFR Part 77.

FMA funding is available through the National Flood Insurance Fund for flood hazard mitigation

activities and plan development and is appropriated by Congress on a yearly basis. States, territories

and federally recognized tribes

are eligible to apply for FMA assistance. NFIP participation is

required to be eligible for funding; subapplicants must also be in “good standing” with the NFIP.

FEMA publishes an up-to-date community status on the “Community Status Book

” webpage. Local

governments and non-federally recognized tribes are considered subapplicants and must apply to

their applicant state, territory or federally recognized tribe. Annual priorities and other program

information is communicated through the NOFO.

The period of performance for FMA is outlined in the NOFO. The relevant fiscal year NOFO should be

referenced to verify conditions pertaining to the start, duration and end of the period of performance.

All applicants and subapplicants must have a FEMA-approved mitigation plan that has been adopted

by the jurisdiction in accordance with 44 CFR Part 201

and applicable mitigation planning policies to

Public Law 103-325 (Sep. 23, 1994); Public Law 90-448 (Aug. 1, 1968), as amended, 42 U.S.C. § 4104(c)

Public Law 112-141 (July 6, 2012)

44 CFR § 77.2(f)

Hazard Mitigation Assistance Program and Policy Guide

Part 2. Overview of Hazard Mitigation Assistance Programs 34

apply for and receive FMA funding.

Other eligibility requirements include that mitigation activities

must be technically feasible and cost-effective, or eliminate future payments from the National Flood

Insurance Fund for severe repetitive loss structures through an acquisition or relocation activity.

For more FMA guidance, refer to Part 10

Table 2 provides a high-level summary of the programs covered by this guide.

According to 44 CFR § 77.6(b), the approved mitigation plan must provide for reduction of flood losses to structures for

which NFIP coverage is available. The FEMA-approved mitigation plan is required at the time of application and award.

41 U.S.C. § 4104c.

Hazard Mitigation Assistance Program and Policy Guide

Part 2. Overview of Hazard Mitigation Assistance Programs 35

Table 2. HMA Program Comparison

HMA

Program

Comparison

HMGP

HMGP Post Fire

BRIC

FMA

Program Type

Post-disaster Post-disaster Pre-disaster Pre-disaster

Funding

Availability

Presidentially

declared disaster

FMAG-declared

disaster

6% set aside from

federal post-disaster

grant funding

Annual

appropriations

Competitive? No No Yes Yes

Eligible

Applicants

States, federally

recognized tribes,

territories and the

District of Columbia

(DC)

States, federally

recognized tribes,

territories and DC

States, federally

recognized tribes,

territories and DC

States, federally

recognized

tribes, territories

and DC

Eligible

Subapplicants

State agencies,

local governments,

tribes and private

nonprofit

organizations

State agencies, local

governments, tribes

and private

nonprofit

organizations

State agencies, local

governments and

tribes

State agencies,

local

governments

and tribes

Hazard Mitigation

Plan

Requirement

Yes Yes Yes Yes

NFIP

Participation

Communities with

projects in Special

Flood Hazard Areas

(SFHAs)

Communities with

projects in SFHAs

Communities with

projects in SFHAs

Subapplicants

and properties

Hazard Mitigation Assistance Program and Policy Guide

Part 2. Overview of Hazard Mitigation Assistance Programs 36

E. Grants Management Regulations

Grants management plays an integral part in implementing HMA programs and dictates the

procedures for FEMA officials responsible for administering funds during program implementation.

On Dec. 26, 2014, the Department of Homeland Security adopted the Uniform Administrative

Requirements, Cost Principles, and Audit Requirements for Federal Awards (Administrative

Requirements), which are codified in 2 CFR Part 200.

2 CFR Part 200 generally applies to FMA and BRIC awards made on or after Dec. 26, 2014, and to

all HMGP and HMGP Post Fire awards made under emergency or major disaster declarations

declared on or after Dec. 26, 2014.

FEMA also issues regulations, NOFOs and other guidance for HMA programs based on a program’s

authorizing statute. FEMA regulations have the force of law. These regulations, NOFOs and guidance

documents also outline program parameters and procedures, including various administrative

processes. While FEMA follows 2 CFR Part 200

for general grant administrative requirements, cost

principles and single audit requirements, FEMA HMA-specific regulations take precedence over 2

CFR Part 200 if the HMA regulation is more specific.

F. Roles and Responsibilities of State, Local, Tribal and

Territorial Governments

Unlike other federal assistance programs, individuals (such as property and business owners) or

private nonprofits (with some exceptions) may not apply directly for HMA funding with FEMA. It is the

role of states, federally recognized tribes and territories to apply for HMA funding in accordance with

the instructions and principles outlined in the HMA Guide.

Therefore, individuals or nonprofits interested in implementing mitigation activities must work with

their local governments (e.g., their local community planning office, emergency management office,

hazard mitigation office, or, in certain cases, with eligible nonprofit organizations) to develop

activities that could reduce property and other damage from future natural disasters in accordance

with their local hazard mitigation plan. These local governments (acting as subapplicants) apply to

their state, federally recognized tribes or territory for consideration of being included in a FEMA HMA

application.

The Department of Homeland Security adoption of 2 CFR Part 200 is codified in 2 CFR Part 3002. These regulations

incorporated, superseded and streamlined requirements from certain Office of Management and Budget (OMB) circulars.

Upon the adoption of the Administrative Requirements in 2 CFR Part 200, FEMA removed 44 CFR Part 13 from the CFR.

The superseded OMB circulars and guidance, including 44 CFR Part 13, continue to apply to all PDM and FMA awards

made prior to Dec. 26, 2014, or HMGP awards made under emergency or major disaster declarations declared before Dec.

26, 2014. For details, refer to the 2015 HMA Guidance.

Hazard Mitigation Assistance Program and Policy Guide

Part 2. Overview of Hazard Mitigation Assistance Programs 37

The states, federally recognized tribes and territories (acting as applicants or recipients) have

established mitigation priorities in their hazard mitigation plans. They are tasked with facilitating the

development of subapplications from local jurisdictions (subapplicants or subrecipients) and to

apply, on behalf of the local jurisdictions, to FEMA HMA programs, based on state, federally

recognized tribal or territorial criteria and available assistance.

FEMA only accepts applications submitted by states, federally recognized tribes and territories

(applicants). Upon receipt of the application, FEMA conducts an eligibility review to ensure

compliance with federal laws, regulations and other directives before it approves a subapplication

and grants a subaward. If the application is approved, funding is issued to applicants/recipients

who, in turn, work with subapplicants/subrecipients to complete the activities included in the

applications.

Figure 1

outlines

the application process from the perspective of the various stakeholders. The

following sections outline in greater detail the roles and responsibilities of applicants/recipients and

subapplicants/subrecipients involved in the HMA process.

Figure 1. Roles of State, Local, Tribal and Territorial Entities Throughout the HMA Process

Hazard Mitigation Assistance Program and Policy Guide

Part 2. Overview of Hazard Mitigation Assistance Programs 38

F.1. Applicants/Recipients

States, federally recognized tribes and territories are eligible applicants for HMA programs. The

applicant is responsible for soliciting subapplications from eligible subapplicants and assisting in the

preparation, review and submission of eligible and complete subapplications to FEMA. Applicants

receive HMA awards. When assistance is awarded, the applicant then becomes the recipient and a

pass-through entity. A recipient receives a federal award directly from FEMA to carry out an activity

under an HMA program.

Pass-through entities are responsible for administering the award and

complying with program requirements and other applicable federal, state, tribal and territorial laws

and regulations. The pass-through entity is also responsible for the financial management of the

program and oversight of all approved activities.

To be eligible for HMA programs, applicants must have a FEMA-approved state or tribal hazard

mitigation plan that has been adopted by the jurisdiction in accordance with 44 CFR Part 201

state or tribal mitigation planning policy. For more information on who or which entities are eligible

applicants, refer to Part 4.

F.2. Subapplicants/Subrecipients

The subapplicant is a state-level agency, local government, federally recognized tribe or other eligible

entity that submits a subapplication for FEMA assistance to the applicant.

If HMA is awarded, the

subapplicant becomes the subrecipient and is responsible for managing the subaward and

complying with program requirements and other applicable federal, state, local, tribal or territorial

laws and regulations.

In most cases, subapplicants are required to have a FEMA-approved local or tribal mitigation plan

that has been adopted by the jurisdiction in accordance with 44 CFR Part 201

nd applicable

mitigation planning policies (local or tribal) to be eligible for HMA. Engagement in mitigation planning

enhances the identification of community-driven solutions, refines discussions of alternative issues,

and reduces ambiguity in applications. Extensive participation of stakeholders during the creation of

a mitigation plan generally results in more robust and fully refined selection of mitigation activities.

For additional information on who or which entity can be a subapplicant,

refer to Part 4. For

additional information on mitigation planning requirements, refer to the FEMA Mitigation Planning

“Regulations and Guidance” webp

age.

2 CFR § 200.1

2 CFR § 200.1 and 2 CFR § 200.332

2 CFR § 200.1

Hazard Mitigation Assistance Program and Policy Guide

Part 2. Overview of Hazard Mitigation Assistance Programs 39

F.3. Federally Recognized Tribes

For purposes of HMGP, HMGP Post Fire, BRIC and FMA, federally recognized tribes may apply to

FEMA directly as an applicant, or they may apply as a subapplicant through their state or territory.

For the purposes of HMGP assistance, federally recognized tribes may obtain their own disaster

declaration consistent with Section 401 of the Stafford Act.

Federally recognized tribes can also be

recipients under a state’s declaration. If they choose to become a recipient under the state’s

disaster declaration, they must do so before the application period closes. In this case, the

assistance will be apportioned based on the damage the federally recognized tribe sustained from

the disaster on the tribal land. Finally, federally recognized tribes may choose to be subapplicants

under a state’s disaster declaration. If a state receives a declaration that includes tribal lands, the

tribal government may choose to be either a subrecipient or recipient for HMGP funding.

If a f

ederally recognized tribe is interested in requesting HMGP assistance as an applicant based on

the tribe’s own disaster declaration, the federally recognized tribe must submit a disaster declaration

request.

Once a tribal government receives a declaration, the tribal government becomes the recipient for the

administration of any assistance authorized by the President for the declared incident, which may

include the HMGP.

A tribal government acting as a recipient will assume the responsibilities of a state under

44 CFR

Part 206, Subpart N for the purposes of administering the award.

Federally recognized tribes

interested in acting as a recipient must have a FEMA-approved tribal mitigation plan in accordance

with 44 CFR § 201.7. Ho

wever, if a federally recognized tribe with a FEMA-approved tribal mitigation

plan coordinates the review of its plan with the state, the tribe also has the option to apply as a

subapplicant through that state or another federally recognized tribe.

To be eligible for HMA funding, tribal applicants and subapplicants must have a FEMA-

approved

tribal mitigation plan that has been adopted by the tribe in accordance with 44 CFR § 201.7 a

nd the

tribal mitigation planning policy.

For more information regarding tribal declarations,

refer to the FEMA “How a Disaster Gets Declared”

and “Tribal Declarations Pilot Guidance” webpages.

Section 102 of the Stafford Act, 42 United States Code (U.S.C.) § 5122(6) and 44 CFR § 77.2(f)

42 U.S.C. § 5170

44 CFR § 206.431

Hazard Mitigation Assistance Program and Policy Guide

Part 2. Overview of Hazard Mitigation Assistance Programs 40

Hazard Mitigation Assistance Programs Resources

 How a Disaster Gets Declared: https://www.fema.gov/disasters/how-declared

 Tribal Declarations Pilot Guidance: https://www.fema.gov/disasters/tribal-declarations

 Mitigation Planning Regulations and Guidance: https://www.fema.gov/emergency-

managers/risk-management/hazard-mitigation-planning/regulations-guidance

 Create a Hazard Mitigation Plan: https://www.fema.gov/emergency-managers/risk-

management/hazard-mitigation-planning/create-hazard-plan

 HMGP: https://www.fema.gov/grants/mitigation/hazard-mitigation

 HMGP Post Fire: https://www.fema.gov/grants/mitigation/post-fire

 BRIC: https://www.fema.gov/grants/mitigation/building-resilient-infrastructure-

communities

 FMA: https://www.fema.gov/grants/mitigation/floods

 NFIP Community Status Book: https://www.fema.gov/flood-insurance/work-with-

nfip/community-status-book

Hazard Mitigation Assistance Program and Policy Guide

Part 3. Subapplication Considerations and Scoping 41

Part 3. Subapplication

Considerations and Scoping

A. Overview

The Federal Emergency Management Agency (FEMA) encourages applicants and subapplicants to

comprehensively evaluate actionable strategies to reduce vulnerabilities for the whole community as

part of the state, local, tribal and territorial mitigation planning process. Applicants and

subapplicants should identify all hazards, determine the risks and assess the vulnerabilities that

threaten their jurisdictions to fully develop comprehensive hazard mitigation strategies. This section

describes the steps to develop a successful mitigation subapplication.

A.1. Hazard Mitigation Assistance Subapplication Development Process

Every Hazard Mitigation Assistance (HMA) subapplication—whether it be for management costs,

mitigation planning, project scoping or a mitigation project—goes through various phases before the

subapplication is selected and awarded.

The first steps in the subapplication development process generally present the best opportunity to

develop viable activities to ensure subapplications can be successful. A subapplicant and an

applicant may consider community needs, eligibility requirements, availability of project

scoping/advance assistance or technical assistance and the requirements of later phases, such as

project implementation, monitoring and closeout.

Other key considerations should include equity for underserved communities, anticipated impacts of

climate change, Environmental and Historic Preservation (EHP) and any other resilience topics

relevant to the HMA application.

Determining the best mitigation or resilience activity at the earliest point in the decision-making

process increases the efficacy of the overall HMA program by expediting FEMA review and by

reducing the need for Requests for Information. Reducing Requests for Information may result in

quicker approval of the subaward.

The HMA subapplication development process comprises the following steps:

1. Select a mitigation activity.

2. Conduct scoping.

3. Determine funding strategy and consider eligibility requirements as well as other considerations.

4. Develop the subapplication.

Eligibility and other requirements are discussed in more detail in Part 4.

Hazard Mitigation Assistance Program and Policy Guide

Part 3. Subapplication Considerations and Scoping 42

The steps following subapplication development, including review and implementation phases, are

described throughout the HMA Guide. Figure 2 outlines the HMA process.

Figure 2. HMA Grant Process

B. Select a Mitigation Activity

The first step in the HMA process involves selecting potential activities based on the current

community needs. Selecting a mitigation activity is the link between the jurisdiction’s mitigation plan

and scoping, by allowing the applicant and subapplicant to select the most appropriate mitigation

activity that best addresses the vulnerabilities associated with identified hazard risk(s) while

considering current priorities, climate change and resilience. Activities could include capability- and

capacity-building activities, such as mitigation planning and project scoping, or mitigation projects.

Hazard Mitigation Assistance Program and Policy Guide

Part 3. Subapplication Considerations and Scoping 43

More information about eligible activities is in Part 4. Proposed hazard mitigation activities funded by

HMA are expected to be consistent with the jurisdiction’s mitigation plan, which is reviewed and

updated every five years and sets long-term priorities. If selected activities are not consistent or in

conformance with the mitigation plan, jurisdictions can review and update the plan and its priorities

according to mitigation planning policy.

The priorities outlined in the hazard mitigation plan a

re prioritized actions to mitigate natural threats

in the jurisdiction. Selecting a mitigation activity involves identifying what activities can be

accomplished in a specific year or award cycle. Contacting the applicant’s hazard mitigation officer or

designated representative can be helpful in choosing which activities best fit the applicant’s

priorities for that year or award cycle.

C. Conduct Scoping

Scoping can significantly impact the course an application or subapplication takes through the HMA

process. Scoping is the process by which subapplicants evaluate and select a preferred mitigation

alternative and develop a detailed outline of all aspects of the activity, including goals, all related

activities, resources, timelines and deliverables, as well as the activity’s boundaries.

The scoping process may include, depending on the activity type, an evaluation of technical

feasibility, cost review, cost-effectiveness, as well as EHP or cultural resource considerations of the

mitigation alternatives. Other considerations may include climate change impacts and racial equity.

The scoping process results in the development of a preferred activity alternative that is then

documented through the preparation of the application or subapplication.

Eligible applicants and subapplicants that actively participate in and document the scoping process

put themselves in a greater position for success during subapplication development. The information

gathered in the scoping process serves as the basis for the development of a more detailed and

robust scope of work, budget and EHP compliance components of the mitigation activity.

During the scoping process, the applicant and subapplicant may encounter considerations such as

technical feasibility, cost-effectiveness and EHP requirements that necessitate the refinement or

adjustment of the mitigation activity. In these situations, the reason for the refinement or re-scoping

should be fully documented and included with the subapplication. Figure 3

details considerations

during each step of the scoping process.

Hazard Mitigation Assistance Program and Policy Guide

Part 3. Subapplication Considerations and Scoping 44

Figure 3. Scoping Process

Hazard Mitigation Assistance Program and Policy Guide

Part 3. Subapplication Considerations and Scoping 45

Applicants and subapplicants should consider the whole range of program requirements at the

beginning stages of activity scoping. Addressing HMA program requirements at the earliest stage

possible in the decision-making process is important because it can lead to enhanced project

scoping and development as well as prevent delays later in the subaward lifecycle.

The HMA program requirements comprise the following topics:

 Hazard mitigation plan requirements.

 Technical feasibility and effectiveness.

 Floodplain management and protection of wetlands.

 EHP review and compliance.

 Cost-effectiveness.

 Cost review.

For specific information on scoping local hazard mitigation plans, refer to the

Considerations for

Local Mitigation Planning Grant Subapplications FEMA job aid (March 2021). For specific

information on scoping tribal hazard mitigation plans, refer to the Tribal Mitigation Planning and

HMA Grant Application Development FEMA job aid (March 2021).

D. Determine Funding Strategies and Eligibility

Requirements

HMA programs offer options to assist applicants and subapplicants during the project scoping and

development process. The programs may also help applicants and subapplicants identify

opportunities to include mitigation in Public Assistance (PA) projects and other recovery activities.

D.1. Project Scoping/Advance Assistance

Applicants and subapplicants may use HMA for project scoping/advance assistance activities.

Eligible activities include the development of mitigation strategies, cost-share strategies and data

gathering (including for EHP compliance considerations) to prioritize, select and develop complete

and timely HMA applications. Project scoping/advance assistance activities can help applicants and

subapplicants develop eligible and complete applications that include a feasible project budget and

appropriate project milestones.

Under HMGP and HMGP Post Fire, project scoping/advance assistance allows an advance of up to

25% of the HMGP ceiling or HMGP Post Fire available assistance amount, or $10 million (whichever

Hazard Mitigation Assistance Program and Policy Guide

Part 3. Subapplication Considerations and Scoping 46

is less), to applicants/subapplicants to accelerate the implementation of HMGP or HMGP Post Fire.

While eligible activities for project scoping/advance assistance are limited to those described here,

post-disaster activities and projects that need to begin early in the recovery process can be

submitted to FEMA under HMGP and HMGP Post Fire as part of the 30-day or six-month assistance

increment request. Refer to Part 10

for additional information.

Project scoping eligibility for Building Resilient Infrastructure and Communities (BRIC) and Flood

Mitigation Assistance (FMA) may be found in each program’s respective Notice of Funding

Opportunity (NOFO).

For more information regarding project scoping/advance assistance, refer to Part 11

D.2. Management Costs

FEMA provides assistance under HMGP, HMGP Post Fire, BRIC and FMA for management costs

incurred in the administration of HMA.

For HMGP and HMGP Post Fire, recipients may be reimbursed not more than 15% of the total

amount of the award; not more than 10% may be used by the recipient and 5% by the subrecipient.

FEMA will provide 100% federal assistance for management costs based on the total amount of the

award incurred up to the rates established above.

For BRIC and FMA, the amount of management costs available and the level of FEMA assistance for

management costs are identified in the NOFO. If any requirements in the HMA Guide conflict with the

NOFO, the requirements in the NOFO take precedence.

For additional details regarding management costs, refer to Part 10 and Part 13

D.3. Phased Projects

Phased projects are allowable under HMGP, HMGP Post Fire, BRIC and FMA.

Phased projects are used when it is beyond the subapplicant’s technical and financial resources to

provide the complete technical information required for a full eligibility or EHP review of a complex

project. In this instance, the subapplicant can apply for assistance to develop a complete body of

technical data, which may include conducting engineering or feasibility studies, preparing a Benefit-

Cost Analysis (BCA), or providing documentation for an EHP review. These products are referred to as

the Phase I deliverables.

The Phase I deliverables provide FEMA with a technical body of information that is mutually agreed

on by the subapplicant, the applicant and FEMA to determine project eligibility. If the results of the

Section 404 of the Stafford Act, 42 United States Code (U.S.C.) § 5170c.

Section 324 of the Stafford Act, 42 U.S.C. § 5165b

Hazard Mitigation Assistance Program and Policy Guide

Part 3. Subapplication Considerations and Scoping 47

Phase I deliverables indicate the project meets HMGP, HMGP Post Fire, BRIC or FMA requirements,

the project would then be eligible for construction assistance under a Phase II approval. Phase I

assistance is part of the project’s total estimated cost and is subject to HMGP, HMGP Post Fire, BRIC

or FMA cost-share requirements.

The use of a phased approach should be limited to complex projects that require technical or EHP

data beyond the scope of what is generally required for a typical project. Phased projects are used

when a subapplicant has a preliminary plan or concept where FEMA can make an initial eligibility

determination. The preliminary plan or concept provides a guideline that the subapplicant can use to

develop cost estimates and final construction plans and other required analysis to determine

eligibility (such as BCA and EHP) before moving forward to Phase II construction. Both Phase I and

Phase II are intended to be completed within the award period of performance. FEMA may use the

pre-screening process to collect data needed to determine the eligibility of the project before

committing additional funding for project design.

All applicants and subapplicants must follow the requirements under the procurement regulations.

If applicants and subapplicants propose to use contract support for subapplication development

and/or design and construction phases, they should review procurement and conflict of interest

regulations to ensure they can comply with those requirements. More information about

procurement can be found in Part 4

D.3.1. PHASED PROJECT: PRE-SCREENING PROCESS TO DETERMINE ELIGIBILITY

The purpose of the pre-screening process is to ensure that the Phase I scope of work is enough to

allow FEMA to review the project and determine eligibility and meet other program requirements.

The recipient must submit a subapplication, using the project specific information in Part 12

, that

provides all available preliminary design and site data. While a phased project may not have all the

required information, the scope of work must address how any gaps will be addressed in Phase I.

The applicant and subapplicant must select the appropriate project code for the Phase I deliverables

within the electronic application system for proper project tracking.

The project must meet the following pre-

screening criteria for a conditional Phase I approval to verify

they meet the following criteria:

 Hazard mitigation plan: The proposed project must be in conformance with the mitigation

plan.

 Justification for selection of the proposed project: Justification must be provided for the

selection of the proposed solution after consideration of a range of options. Minimum criteria

for a solution should include:

2 Code of Federal Regulations (CFR) §§ 200.317-327

Hazard Mitigation Assistance Program and Policy Guide

Part 3. Subapplication Considerations and Scoping 48

o Analysis on why the selected approach was selected and at least two alternative

proposals and why they were not selected.

o Performance based criteria establishing the level of protection for the long-term solution

along with the anticipated remaining risk after the proposed project is complete.

o List of missing technical data to be collected and developed during Phase I, including a

vulnerability assessment, engineering practices, established codes, standards, modeling

techniques and best practices to which the design will conform.

o Proposed conceptual drawings or design.

o List of minimum deliverables and milestones to be completed during Phase I.

 Scope of work: The scope of work must identify the steps and deliverables needed to

complete Phase I and preliminary actions to complete Phase II. Based on the pre-screening

review, FEMA may use the Request for Information procedures to adjust the scope of work to

ensure all program requirements can be addressed. The Phase II scope of work can be

adjusted as part of the Phase II approval process.

 Budget: A detailed budget must be included in the subapplication. The estimated costs

within this budget must identify all line items associated with the Phase I deliverables and an

estimate for the Phase II costs. The Phase II estimate can be adjusted based on the findings

of the Phase I deliverables through the budget amendment process.

 Potential schedule and milestones: The project demonstrates that it can likely be completed

within the period of performance allowed by the program.

 Potential cost-effectiveness: The project must demonstrate potential cost-effectiveness

based on a preliminary assessment of anticipated project benefits and cost. The

subapplicant must be aware that this preliminary assessment is solely for the purpose of the

Phase I pre-screening process and is not the final cost-effectiveness determination. A

preliminary BCA is required at the time of subapplication. This must be based on feasible

assumptions and available data regarding risk and must be determined by using the latest

version of the

BCA Toolkit.

 Other relevant technical data: The subapplicant must provide available data, including

hydrologic and hydraulic data, based on existing models and other relevant technical data,

as appropriate.

 EHP review: FEMA will complete an initial review and provide technical assistance to identify

major EHP compliance issues and information needs. Additional EHP review by FEMA of the

revised project design is required before Phase II approval. When a project is submitted for

phased review and the Phase I scope of work is limited to developing engineering and

architectural design plans, the Phase I review will likely meet a specified categorical

Hazard Mitigation Assistance Program and Policy Guide

Part 3. Subapplication Considerations and Scoping 49

exclusion (CATEX), which is a type of work categorically excluded from the National

Environmental Policy Act

review. If applicable, FEMA will document the CATEX to a

proposed action in a Record of Environmental Consideration, which would record that the

Phase I aligns with the scope of the specified CATEX and documents any extraordinary

circumstances.

Also, Phase I must comply with other EHP requirements such as Section

106 of the National Historic Preservation Act,

Section 7 of the Endangered Species Act,

and Executive Order (EO) 11988 on F

loodplain Management (May 24, 1977) as amended by

EO 13690 on Establishing a Federal Flood Risk Management Standard and a Process for

Further Soliciting and Considering Stakeholder Input (Jan. 30, 2015), among others. FEMA

will provide technical assistance during the Phase I review to identify any potential EHP

compliance issues, specify any information that would be needed to conduct a Phase II

review, and determine what level of

National Environmental Policy Act review is applicable to

the action.

Applicants must address EHP requirements before construction can be funded.

It is important for applicants to identify all data needs during the pre-screening process and

update the Phase I scope of work to ensure they are completed.

If required, FEMA will use the Request for Information procedures to request adjustments to the

subapplication Phase I scope of work, schedule and budget so that it includes all required elements

to complete Phase I.

D.3.2. PHASE I: CONDITIONAL APPROVAL

The applicant and FEMA may approve projects meeting the above pre-screening requirements for

technical assistance under a Phase I conditional approval. FEMA and the applicant must coordinate

closely to ensure mutual concurrence on all data and technical information as the Phase I technical

review process proceeds. The sequence for the process is as follows:

 Other relevant technical data: If appropriate, the applicant and FEMA review the hydrologic

and hydraulic or other technical data provided by the subapplicant.

 Preliminary engineering design: Based on the technical data, the subapplicant develops a

preliminary engineering and design layout and budget with project-specific technical

assistance from the applicant and FEMA.

 Compliance with EO 11988 as amended by EO 13690: If applicable, based on the technical

data and revised engineering design, the subapplicant must demonstrate the project’s

compliance with floodplain management requirements under

EO 11988 on Floodplain

Management (May 24, 1977), as amended by EO 13690 on Establishing a Federal Flood

Public Law 91-190 (Jan. 1, 1970)

If warranted by the extraordinary circumstances analysis, FEMA will conduct an Environmental Assessment.

Public Law 89-665 (Oct. 15, 1966), as amended; 36 CFR Part 800

Public Law 93-205 (Dec. 28, 1973), as amended; 16 U.S.C. § 1531

Public Law 91-190 (Jan. 1, 1970), 42 U.S.C. § 4321

Hazard Mitigation Assistance Program and Policy Guide

Part 3. Subapplication Considerations and Scoping 50

Risk Management Standard and a Process for Further Soliciting and Considering

Stakeholder Input (Jan. 30, 2015). If a Flood Insurance Rate Map amendment or revision is

necessary, the applicant and FEMA will provide the subapplicant with technical assistance to

meet this requirement.

 Refinement of the cost-effectiveness assessment: Based on the revised design, budget and

calculations made by the BCA Toolkit, the applicant and FEMA must refine the preliminary

assessment of cost-effectiveness conducted prior to Phase I approval. This will result in a

final benefit cost ratio to evaluate the project’s cost-effectiveness, which must include all the

project costs, including Phase I. The BCA, developed through the BCA Toolkit, should be

supported by available information including:

o Risk information supporting the pre-mitigation losses (e.g., Flood Insurance Rate

Maps/Flood Insurance Study, loss history, structural risk assessments).

o Mitigation effectiveness information supporting the risk reduction (e.g., commitment to a

design standard,

level of protection [1% annual chance recurrence interval]).

o Cost estimate for the anticipated project cost (including design costs) along with

supporting assumptions.

 Key assumptions: The applicant describes the key assumptions, along with justification or

rationale for these assumptions, regarding risk, project effectiveness and cost.

 EHP review: The applicant and FEMA must conduct a review of the revised project design to

ensure EHP compliance. The project must meet EHP requirements before Phase II is

approved.

After Phase I work has been completed and submitted to FEMA, FEMA will review the data to

determine if the project remains eligible to move forward to Phase II. If the project does not meet

eligibility requirements, FEMA will notify the recipient and proceed with closing out the subaward.

Phase II funding will not be obligated.

If after reviewing the Phase I data, the recipient and subrecipient decide they do not want to

complete Phase II, they must submit a change in budget request justifying their request to withdraw

the project so they can closeout the award. For more information regarding budget and scope of

work changes, refer to Part 8.F

Such as American Society of Civil Engineers Standard 24, Flood Resistant Design and Construction (2015) or FEMA P-

361, Safe Rooms for Tornadoes and Hurricanes (April 2021).

Hazard Mitigation Assistance Program and Policy Guide

Part 3. Subapplication Considerations and Scoping 51

D.3.3. PHASE II: APPROVAL – CONSTRUCTION PROCESS

If FEMA determines the project to be eligible, technically feasible, cost-effective and compliant with

EHP requirements under the Phase I technical review, FEMA may then approve the project for

construction under Phase II.

D.4. Pre-Award Costs

Pre-award costs directly related to developing a subapplication that are incurred prior to the date of

the grant award are allowed, subject to FEMA approval at the time of the award. Pre-award costs

may be incurred, for example, when gathering National Environmental Policy Act data or developing a

BCA, preparing design specifications, or when holding workshops or meetings related to reviewing

proposed alternatives and designs. Pre-award costs are allowable only to the extent that they would

have been allowable if incurred after the date of the federal award.

Pre-award costs may be cost shared or applicants and subapplicants may identify them as their non-

federal cost share. For more information on cost share requirements, refer to Part 4

In general, pre-award costs are eligible for activities that involve no commitment of resources other

than staffing and associated funding. Costs for activities, such as ground disturbance or

construction, or activities that would affect historic properties and/or threatened and endangered

species and that are initiated or completed outside of the application period and period of

performance are not eligible. In addition, any ground disturbance or construction activity completed

before FEMA approval is not allowed and therefore their associated costs are not eligible. Projects

initiated or completed prior to the federal award or full approval of the project are not eligible.

Activities directly related to the project, including management costs and project costs, may be

eligible for pre-award costs. Any pre-award costs designated as management costs count toward the

5% limit for subrecipient management costs. Eligible management costs activities may include

developing the application or subapplication, preparing the BCA, and gathering EHP data. For more

on management costs, refer to Part 13

To be eligible for HMA, pre-award costs must be identified as separate line items in the budget of the

subapplication and cannot have been funded by another project, award or program. Applicants and

subapplicants who are not selected for awards or subawards will not receive reimbursement for the

corresponding pre-award costs.

For HMGP and HMGP Post Fire, eligible pre-award costs are those incurred after the date when

HMGP is authorized, which is generally the date of the major disaster declaration.

2 CFR § 200.458

For HMGP, refer to 44 CFR § 206.434(d)(2) and 44 CFR § 206.439(c); for FMA, refer to 44 CFR § 77.7(b); for BRIC, refer

to the relevant NOFO.

2 CFR § 206.439

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Part 3. Subapplication Considerations and Scoping 52

For BRIC and FMA, the period of eligibility for pre-award costs is addressed in the NOFO.

E. HMGP and Public Assistance

During the activity development phase, applicants and subapplicants should consider two types of

FEMA mitigation assistance available post-disaster: HMGP assistance under Section 404 of the

Stafford Act (including HMGP Post-Fire) and PA under Section 406 of the Stafford Act. PA is available

to fund mitigation of disaster-damaged facilities and for post-disaster code enforcement activities.

HMGP and PA are two distinct assistance sources but can sometimes be used together to more

completely fund a hazard mitigation project and promote resilience. While applicants and

subapplicants have the discretion to apply for PA or HMGP (while the HMGP application period is

open), FEMA encourages applicants and subapplicants to maximize assistance from PA.

If a subapplicant is seeking both HMGP and PA, HMGP subapplications still must meet HMGP

program requirements, including submission in accordance with HMGP program timelines,

consistency with hazard mitigation plans, and approval by the hazard mitigation officer or designated

representative. Evaluating opportunities to leverage HMGP and PA can facilitate project scoping and

development. Additionally, exploring these opportunities can maximize the use of PA Mitigation for

disaster-damaged facilities while preserving limited HMGP assistance for use on other activities. If

HMGP and PA are considered to fund a mitigation activity, applicants and subapplicants should also

assess potential duplication of benefits issues. For more on duplication of benefits, refer to Part 4

E.1. Public Assistance Mitigation

Under Section 406 of the Stafford Act, FEMA has the authority to provide funding for cost-effective

hazard mitigation measures for disaster-damaged facilities. FEMA refers to PA-funded hazard

mitigation as PA Mitigation.

To be eligible for PA Mitigation, the mitigation measures must reduce

future damage to the facility, as well as be cost-effective, technically feasible and compliant with EHP

requirements. Generally, PA-eligible mitigation measures are intended to protect the damaged

portion(s) of the facility. If the applicant proposes mitigation measures that are distinct and separate

from the damaged portion(s) of the facility, FEMA evaluates the proposal and determines eligibility

on a case-by-case basis. FEMA considers how the mitigation measure protects the damaged

portion(s) of the facility and whether the mitigation measure is reasonable based on the extent of the

damage.

Applicants may use both PA Mitigation and HMGP assistance to implement mitigation measures at

the same facility but not for the same work. Applicants cannot use assistance from one of these

mitigation programs to meet the non-federal cost share of work funded under the other mitigation

program. A combination of PA and HMGP assistance may be appropriate where PA Mitigation is used

to provide protection to portions of a facility that were damaged by a declared disaster and HMGP

assistance is used to protect undamaged portions of the facility or a nearby, undamaged facility

(refer to examples in callout box).

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Part 3. Subapplication Considerations and Scoping 53

FEMA Policy #104-009-2, Public Assistance Program and Policy Guide, Version 4 (June 1, 2020),

provides further details on PA Mitigation.

Examples of HMGP and PA Mitigation

The following project examples illustrate how an applicant or subapplicant can use both HMGP and

PA mitigation to maximize the protection of a facility or facilities from future damage:

 A school damaged by wind can be repaired and mitigated with shutters or impact-protective

glazing using PA assistance and enhanced with an HMGP-assisted safe room.

 Damaged portions of a building in a seismic risk zone damaged by flooding can be repaired

and mitigated with dry floodproofing and seismic upgrades using PA Mitigation. On a case-by-

case basis, PA Mitigation funding may also be available for the undamaged portions of the

facility. If the undamaged portions of the facility are not eligible for PA Mitigation, HMGP funds

may be used to protect those undamaged portions of the building from flood and seismic

hazards.

 While a road damaged by a landslide is being repaired and mitigated using PA, HMGP

assistance can be used to bury undamaged aboveground power lines running along the road.

E.2. Post-Disaster Code Enforcement

In addition to mitigating damage to a facility, PA and HMGP can be used for post-disaster building

code enforcement. As part of PA, FEMA is authorized to provide assistance to state and local

governments for building code and floodplain administration and enforcement, including inspections

for substantial damage compliance, for a period of not more than 180 days after the major disaster

is declared. More information can be found in FEMA Policy #204-079-01

, Building Code and

Floodplain Management Administration and Enforcement (Oct. 15, 2020).

HMGP can also provide assistance for post-

disaster building code activities during recovery and to

continue past the 180-day PA limit if needed. If a recipient or subrecipient receives PA for building

code enforcement and administration activities and intends to continue these activities after PA is

no longer available, they should submit a subapplication under HMGP as soon as possible. This way,

the subapplication can be reviewed and approved before the 180-day PA limit expires.

HMGP and HMGP Post Fire post-disaster code enforcement projects are eligible to cover

extraordinary post-disaster code enforcement costs that ensure disaster-resistant codes are

implemented during disaster reconstruction after normal costs of the building department are

deducted. For more information, refer to Part 11

In addition to HMGP post-disaster code enforcement projects, building code activities may be funded

under the 5 Percent Initiative and the 5 Percent Codes and Standards. For more on codes and

standards, including eligibility and assistance restrictions, refer to Part 11.

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Part 3. Subapplication Considerations and Scoping 54

F. Cost Review

Conducting a cost review at the earliest possible stage allows for improved activity scoping and

development and facilitates FEMA’s review. All costs included in the subapplication should be

reviewed to ensure they are necessary, reasonable and allocable along with being consistent with

the provisions of 2 Code of Federal Regulations (CFR) §§ 200.402 – 411

G. Cost-Effectiveness

By statute and regulations, mitigation activities under HMGP, HMGP Post Fire, BRIC and FMA must

be cost-effective; specific requirements for each program can be found in Part 10. FEMA generally

assesses the cost-effectiveness of hazard mitigation projects through a BCA—a quantitative analysis

used to assess the cost-effectiveness of a hazard mitigation measure by comparing the project’s

avoided future damage to the costs over the project lifetime. Considering cost-effectiveness at the

earliest possible stage of the decision-making process can facilitate project scoping and improve

project design. For more information on cost-effectiveness, refer to

Part 5.

H. Technical Feasibility and Effectiveness

Mitigation projects submitted to HMA programs must be both feasible and effective at mitigating the

risks of the hazard for which the projects are designed. The feasibility of a project is demonstrated

through conformance with accepted engineering practices, established codes, standards, modeling

techniques or best practices.

Effective mitigation measures funded under HMA should provide a long-term or permanent solution

and should consider changing climate and weather conditions, development, settlement and

demographic patterns, as appropriate. Considering technical feasibility and effectiveness during the

scoping process facilitates project development.

For specific feasibility and effectiveness requirements by project type, refer to Part 12

I. Environmental and Historic Preservation Review and

Compliance

Subapplicants can leverage EHP requirements in the scoping process to develop resilient mitigation

projects and avoid, minimize and mitigate any adverse effects of mitigation projects on natural and

cultural resources and on minority and low-income populations and tribes. All projects proposed for

FEMA funding must comply with EHP laws, regulations and executive orders. The National

Environmental Policy Act requires FEMA and other federal agencies to assess the environmental

impacts of proposed federal actions prior to making decisions or funding projects. Like the National

Hazard Mitigation Assistance Program and Policy Guide

Part 3. Subapplication Considerations and Scoping 55

Environmental Policy Act, Section 106 of the National Historic Preservation Act requires federal

agencies to consider the effect of their actions on historic properties.

FEMA must also ensure a proposed project is compliant with other federal laws, regulations, and

executive orders such as the Federal Water Pollution Control Act (Clean Water Act);

the

Endangered Species Act of 1973;

and EO 11988, as amended by EO 13690 and EO 11990 on the

Protection of Wetlands (May 24, 1977). EO 12898 on Federal Actions to Address Environmental

Justice in Minority Populations and Low-Income Populations (Feb. 11, 1994) requires federal

agencies to consider disproportionately high and adverse effects on minority and low-income

communities related to federal programs, policies and activities. Environmental justice is considered

during the National Environmental Policy Act process, when individual projects are reviewed or

programmatic actions are considered. Furthermore,

EO 13985 on

Advancing Racial Equity and

Support for Underserved Communities Through the Federal Government (Jan. 20, 2021) requires

the federal government to pursue a comprehensive approach to advancing equity for all, including

people of color and others who have been historically underserved, marginalized and adversely

affected by persistent poverty and inequality.

Many EHP

laws, regulations and executive orders require a decision-making process to consider

alternatives and impacts to resources during project scoping. Early consideration of EHP resources in

the project scoping phase will allow communities to design projects that avoid, minimize and

mitigate adverse impacts of projects to natural and cultural resources as well as minority and low-

income populations and tribes.

For example, some key EHP considerations include:

 Whether the proposed project is in an area with threatened and endangered species or in the

threatened and endangered species’ designated critical habitat.

 Whether the proposed project might impact historic or cultural resources.

 Whether the proposed project will have a disproportionate impact on low-income and

minority populations or tribes.

 Whether the proposed project will involve work in water, floodplains, wetlands or coastal

zones.

If the project could result in adverse impacts to natural and cultural resources or have

disproportionately high and adverse impacts on low-income and minority populations or tribes, then

EHP laws, regulations or executive orders may:

36 CFR Part 800; Public Law 89-665 (Oct. 15, 1966), 16 U.S.C. § 470

Public Law 92-500 (Oct. 18, 1972), 33 U.S.C. § 1251 et seq.

Public Law 93–205 (Dec. 27, 1973), 16 U.S.C. § 1351 et seq.

Hazard Mitigation Assistance Program and Policy Guide

Part 3. Subapplication Considerations and Scoping 56

 Have time and cost implications for a project.

 Include additional award conditions (such as permits or timing restrictions) imposed by

FEMA.

 Require the applicant or subapplicant to consider alternatives, identify alternate locations,

and, as necessary, modify the project.

 Require mitigation measures to resolve adverse effects or impacts resulting from the project.

By considering natural and cultural resources in the project scoping phase, applicants and

subapplicants may be able to resolve issues of concern earlier in the process, prior to significant

commitment of time and resources. Refer to Part 4

for an overview of incorporating the EHP and the

National Environmental Policy Act process in project scoping.

Early consideration of natural and cultural resources in the project scoping process can also

help

develop resilient mitigation projects and advance environmental stewardship in communities.

Applicants and subapplicants should consider those resources to identify opportunities for the

design of projects to enhance, restore or preserve natural and cultural resources and to provide

additional ecosystem services to a community. This approach can lead to better mitigation

outcomes. For example, mitigation project types that create open space, such as property

acquisitions and innovative drought and flood mitigation activities, can provide conservation benefits

to species and habitats. Early consideration of cultural resources can help identify mitigation

approaches that preserve historical resources from hazards without adversely affecting their historic,

aesthetic or cultural value.

During project scoping, applicants and subapplicants should research prior activities close to the

proposed project location, such as identifying EHP reviews undertaken by federal, state or local

commissions or agencies for previously completed projects, gathering EHP data, and reaching out to

stakeholders and regulatory agencies for pertinent information. Applicants and subapplicants should

use the EHP Checklist

(refer to Table 7) and the FEMA “Environmental & Historic Preservation Grant

Preparation Resources” webpage to help identify EHP issues and consider natural and cultural

resources when scoping a project and developing a project application. Advance assistance, pre-

award costs, phasing assistance and technical assistance are available mechanisms to consider the

EHP requirements in the early stages. For more information, refer to Part 6.

To help applicants and subapplicants develop project scopes, federal and state regulatory agencies

may offer pre-application consultation meetings to provide informal discussions about proposed

activities, alternatives and measures for reducing impacts. These agencies may include but are not

limited to the U.S. Fish and Wildlife Service and the National Marine Fisheries Service for impacts to

federally listed threatened and endangered species; U.S. Fish and Wildlife Service for impacts to

Coastal Barrier Resource System zones and bald or golden eagles; National Marine Fisheries Service

for impacts to essential fish habitat or marine mammals; and the U.S. Army Corps of Engineers

(USACE) for projects in navigable waters or that involve dredging or filling in waters of the United

Hazard Mitigation Assistance Program and Policy Guide

Part 3. Subapplication Considerations and Scoping 57

States. State and tribal agencies may include the departments of environmental protection, historic

preservation offices, and local floodplain administrators.

Public engagement is an integral part of EHP reviews and project development and is required for

compliance with many EHP laws, regulations and executive orders. Public input can help identify

potential impacts to natural and cultural resources, low-income and minority communities, and

tribes. Public input can also help shape project scopes to provide better mitigation outcomes.

Subapplicants may assist FEMA in planning public engagement strategies and with publishing public

notices on community websites, in newspapers or on social media. In their subapplications,

subapplicants should describe any existing or planned public engagement activities and feedback

received from the public regarding the project.

Hazard Mitigation Assistance Program and Policy Guide

Part 3. Subapplication Considerations and Scoping 58

igure 4. EHP Information Gathering and the Formal Review Process

Hazard Mitigation Assistance Program and Policy Guide

Part 3. Subapplication Considerations and Scoping 59

J. Unified Federal Review

In some cases, HMA may approve funding for a portion of a larger project that involves other FEMA

programs (e.g., PA, Individual Assistance [IA]); other federal agencies (e.g., USACE); or agencies with

delegated federal authority (e.g., the Department of Housing and Urban Development).

In these cases, the Sandy Recovery Improvement Act of 2013

added Section 429 to the Stafford

Act,

which directed the development of an expedited and unified interagency EHP review process,

also known as Unified Federal Review, to ensure federal agencies coordinate EHP compliance for

activities. When two or more federal agencies are involved with a project, or if any applicant EHP

coordination has occurred, relevant environmental and historic or cultural resource considerations

may have already been identified and addressed in previous EHP project planning activities. FEMA

may be able to use or adopt EHP documentation if that documentation addresses the scope of the

FEMA-approved activity, and the agency verifies it meets EHP compliance requirements.

Projects proposed for FEMA funding may involve more than one federal agency and can require

significant interagency collaboration and stakeholder engagement. Federal agencies use the Unified

Federal Review process to address the coordination challenges when multiple agencies are engaged

in the same disaster recovery effort. The Unified Federal Review process recognizes the important

role of federal agencies, states, tribes, localities and the public in EHP reviews. Applicants and

subapplicants should identify for FEMA the other federal agency or agencies from which they are

seeking approval, funding or permitting, as well as provide any relevant information to help

streamline and inform the EHP review.

The Unified Federal Review process coordinates federal agency EHP reviews for proposed projects

associated with Presidentially declared disasters under the Stafford Act. The purpose of the Unified

Federal Review process is to improve federal decision-making to allow for more timely and planned

processes that yield better outcomes for communities and the environment when federal funds and

permits are used for disaster recovery projects. The Unified Federal Review process does not change

EHP requirements under existing federal law. Instead, it identifies ways to use existing efficiencies,

with new tools and mechanisms, to expedite the EHP review of proposed projects involving multiple

federal agencies and avoid duplication of effort.

These efforts include identifying and addressing gaps and inconsistencies within federal regulations,

policies and programs related to natural and cultural resource issues, which result in the following

outcomes:

 Faster delivery of federal assistance to rebuild following a disaster.

Public Law 113-2 (Jan. 29, 2013), 42 U.S.C. § 5121

42 U.S.C. § 5189g

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Part 3. Subapplication Considerations and Scoping 60

 Transparent EHP review process for disaster recovery projects and what may be required

before a federal agency may award assistance.

 Streamlined application processes for federal assistance, in which federal agencies accept

data in multiple formats so duplicate EHP information is no longer needed.

 Up-to-date contact information for federal and state agencies that can provide federal

assistance and relevant information.

The Unified Federal Review process may assist a jurisdiction’s project review if any of the following

statements is true:

 Other federal resource/regulatory agencies are involved.

 Other federal funding or actions are involved.

 The proposed project is covered by existing analyses or agreements.

To learn more about the Unified Federal Review process and how it may apply to a project, consult

the Practitioner’s Guide to Unified Federal Review

contact the Regional Unified Federal Review

Coordinator or send an email to federal-unified-review@fema.dhs.gov.

K. Floodplain Management and Protection of Wetlands

HMA programs and awards must conform to 44 CFR Part 9, which incorporates the requirements of

EO 11988, as amended by EO 13690 and EO 11990. Applicants and subapplicants must review all

proposed actions to determine whether they are in the floodplain or wetland. In accordance with EO

11988, as amended, and EO 11990, FEMA must complete an eight-step decision-making process

for proposed actions located in the 1% annual chance floodplain (or 0.2% annual chance floodplain

for critical actions) and proposed actions that have the potential to affect or be affected by a

floodplain or wetland (refer to

Figure 5).

As part of the eight-step decision-making process, FEMA must consider alternative locations to

determine whether the floodplain or wetland is the only practicable location for that action.

Applicants and subapplicants must document alternatives considered as part of their scoping

process to assist FEMA in facilitating this decision-making process. If the floodplain or wetland is the

only practicable location, the applicant/subapplicant must avoid or must minimize adverse impacts

to the floodplain or wetland. For more information on floodplain management requirements, refer to

Part 4

Other federal resources and regulatory agencies may be found in the multiagency Memorandum of Understanding

Establishing the Unified Federal Environmental and Historic Preservation Review Process for Disaster Recovery Projects

(2014).

Hazard Mitigation Assistance Program and Policy Guide

Part 3. Subapplication Considerations and Scoping 61

L. Accessibility

FEMA is committed to achieving accessible and fully inclusive emergency management.

Considerations for individuals with disabilities should be contemplated as part of holistic community-

based mitigation. With respect to HMA, this requires active engagement in meeting access and

functional needs of people with disabilities as applications are scoped and developed. FEMA and

recipients of HMA must comply with any federal law addressing accessibility, as applicable, such as

the Americans with Disabilities Act of 1990,

Architectural Barriers Act of 1968 (ABA)

or the

Rehabilitation Act of 1973.

This document generally refers to the ADA regarding accessibility

requirements but HMA recipients should be aware that the ABA and Rehabilitation Act may also

apply. As appropriate, factors for accessible design should be incorporated into HMA activities to

serve the whole community to the greatest extent possible. When communities integrate the access

and functional needs of the Whole Community in all phases of community-wide emergency

management, they strengthen their ability to prepare for, protect against, respond to, recover from

and mitigate all hazards.

For more on accessibility, refer to the FEMA Section 504 of the Rehabilitation Act of 1973 Overview

M. Develop the HMA Subapplication

The next step in the HMA process is developing or assembling the subapplication. The principal

components of a subapplication are the scope of work, budget and schedule. These pieces may be

developed based on previous similar activities by the subapplicant through construction estimates,

property appraisals and other technical evaluations.

Once the subapplicant prepares the subapplication, it is submitted to the applicant. Once the

subapplications are collected, the applicant reviews and prioritizes submissions based on specific

criteria that align with its mitigation strategy with regard to available funding and activity type.

Finally, the application is submitted to FEMA for determination of eligibility based on cost-

effectiveness, technical feasibility, EHP review and the approved mitigation plan as applicable to

activity type. FEMA may send the applicant a Request for Information. A Request for Information is

often used to help clarify and strengthen the subapplication. For more information on the Request

for Information process, refer to Part 6

Applications and subapplications submitted to FEMA must meet all program eligibility criteria

outlined in the law, regulation and HMA Guide. FEMA does not accept incomplete or placeholder

applications or subapplications. Incomplete applications or subapplications delay award and

Public Law 101-336 (July 26, 1990),

Public Law 90-480 (Aug. 12, 1968), 42 U.S.C. § 4151

Public Law 93-112 (Sep. 26, 1973), 42 U.S.C. § 701

Hazard Mitigation Assistance Program and Policy Guide

Part 3. Subapplication Considerations and Scoping 62

subaward approval if they do not contain sufficient information for FEMA to make a program

eligibility determination.

If an application lacks the necessary eligibility information, FEMA cannot determine eligibility and

approve an application.

The following documentation, which is needed to demonstrate eligibility, should be contained in the

subapplication and application. Criteria may vary depending on the proposed activity, but

applications/subapplications generally include all the elements below:

 Eligible applicant and subapplicant.

 Identification of mitigation activity.

 Alternate mitigation actions.

 Conformance with FEMA-approved mitigation plan.

 Scoping narrative that provides an outline of the proposed activities and outcomes and

contains the following:

o Detailed scope of work.

o Work schedule demonstrating that the activity will be completed within the period of

performance for the applicable program (refer to Part 8.G

o Budget that supports the scope of work, including the schedule, and reflects the total

activity cost.

o Cost share information that clearly identifies the source of the non-federal cost share and

establishes that the non-federal cost share meets program eligibility requirements.

o Cost-effectiveness information (refer to exceptions in Part 5

o Feasibility and effectiveness information (mitigation project types only).

o EHP compliance documentation as required by EHP guidance (refer to Table 7

for EHP

Compliance Checklist).

 Assurances and approved forms in accordance with programming requirements (refer to Part

6 and Part 10).

 Additional documentation as required by FEMA.

For HMGP, refer to 44 CFR § 206.434(c)(1); for FMA, refer to 44 CFR § 77.6(b); for BRIC, refer to the NOFO.

Hazard Mitigation Assistance Program and Policy Guide

Part 3. Subapplication Considerations and Scoping 63

Subapplication requirements and the Environmental and Historic Preservation Checklist have been

incorporated into FEMA’s electronic application system. For additional information on the above

outlined elements of the subapplication, refer to Part 6

Subapplication and Scoping Resources

 Considerations for Local Mitigation Planning Grant Subapplications FEMA job aid:

https://www.fema.gov/sites/default/files/documents/fema_hma-considerations-local-

planning-grant-job-aid.pdf

 Tribal Mitigation Planning and HMA Grant Application Development FEMA job aid:

https://www.fema.gov/sites/default/files/documents/fema_hma-tribal-job-aid.pdf

 Public Assistance program policy, guidance and fact sheets:

https://www.fema.gov/assistance/public/policy-guidance-fact-sheets

 FEMA Policy 204-079-01, Building Code and Floodplain Management Administration and

Enforcement: https://www.fema.gov/sites/default/files/2020-10/fema_building-dode-

floodplain-management-ddministration-enforcement-policy_drra-1206_signed_10-15-

2020.pdf

 National Environmental Policy Act: https://www.epa.gov/nepa

 EHP Guidance for FEMA Grant Applications: https://www.fema.gov/grants/guidance-

tools/environmental-historic

 FEMA Section 504 of the Rehabilitation Act of 1973 Overview:

https://www.fema.gov/about/offices/equal-rights/504

 Americans with Disabilities Act Title II Regulations:

https://www.ada.gov/regs2010/titleII_2010/titleII_2010_regulations.htm

 DHS Instruction Manual, Appendix A: DHS List of Categorical Exclusions:

https://www.fema.gov/emergency-managers/practitioners/environmental-

historic/laws/nepa/categorical-exclusion

Hazard Mitigation Assistance Program and Policy Guide

Part 4. Eligibility and Requirements 64

Part 4. Eligibility and Requirements

This part identifies eligibility and requirements for all Hazard Mitigation Assistance (HMA) programs,

which include the following components:

 Eligible applicants and subapplicants.

 Eligible and ineligible activities.

 Hazard mitigation plan requirements.

 Cost-effectiveness.

 Feasibility and effectiveness.

 Environmental and historic preservation (EHP).

 Cost eligibility.

 Cost sharing.

 Restrictions on the use of HMA.

 Other program requirements.

To be eligible for HMA programs, applicants and subapplicants must apply in the manner described

in the HMA Guide.

A. Eligible Applicants

Entities eligible to apply to the HMA programs include the emergency management agency or a

similar office of the 50 states (e.g., the office that has primary emergency management or floodplain

management responsibility), the District of Columbia, American Samoa, Guam, the U.S. Virgin

Islands, Puerto Rico, the Northern Mariana Islands, and federally recognized tribal governments,

including Alaska Native villages and organizations. Each state, commonwealth, federally recognized

tribal government

(including Alaska Native villages and organizations) or territory must designate

The term "Indian tribal government" means the governing body of any Indian or Alaska Native tribe, band, nation, pueblo,

village, or community that the Secretary of the Interior acknowledges to exist as an Indian tribe under the Federally

Recognized Indian Tribe List Act of 1994 (Section 102 of the Stafford Act, 42 United States Code (U.S.C.) § 5122(6)). This

does not include Alaska Native corporations, the ownership of which is vested in private individuals. (Also refer to 44 CFR §

201.2 definitions, referring to 25 U.S.C. § 479a.).

Hazard Mitigation Assistance Program and Policy Guide

Part 4. Eligibility and Requirements 65

one agency to serve as the applicant for each HMA program. Alaska Native corporations are

ineligible, as they are privately owned.

B. Eligible Subapplicants

A subapplicant is generally defined as a non-federal entity that receives a subaward from a pass-

through entity (recipient) to carry out part of a federal program.

This does not include an individual

that is a beneficiary of such a program.

In general, which entity can be a subapplicant depends on the eligibility spelled out in the governing

legislation or regulation of the HMA program under which assistance is sought.

Eligible subapplicants may include:

 State agencies.

 Local governments.

 Federally recognized tribal governments.

 Private nonprofit organizations (for the Hazard Mitigation Grant Program [HMGP] and Hazard

Mitigation Grant Program Post Fire [HMGP Post Fire] only).

As indicated in Part 4

, individuals, businesses and certain private nonprofits are generally ineligible

to directly apply for HMA. Applying for HMA happens through eligible subapplicants, who, in turn,

submit a subapplication to applicants on behalf of individuals, businesses and private nonprofit

organizations. This arrangement ensures consistency with the mitigation priorities established by

state, local, tribal and territorial governments.

Table 3 highlights the eligibility of subapplicants under HMGP, HMGP Post Fire, BRIC and FMA.

Table 3: Eligible Subapplicants

Entity HMGP HMGP

Post Fire

BRIC FMA

State agencies Yes Yes Yes Yes

Local governments,

including tribal

governments*

Yes Yes Yes Yes

2 CFR § 200.1

For HMGP, refer to 44 CFR § 206.434(a); for the FMA program, refer to 44 CFR § 77.6; for HMGP and Building Resilient

Infrastructure and Communities, refer to 44 CFR § 206.2(a)(16); for local governments, refer to 42 U.S.C. § 5122(8) and

44 CFR § 201.2; for private nonprofit organizations, refer to 44 CFR § 206.221(e).

Hazard Mitigation Assistance Program and Policy Guide

Part 4. Eligibility and Requirements 66

Entity HMGP HMGP

Post Fire

BRIC FMA

Federally recognized

tribal government

Yes Yes Yes Yes

Private nonprofit

organizations and

institutions that own

and operate a facility

that provides an

essential government

service as defined in 44

CFR § 206.221(e)

†

Yes Yes No No

Qualifying conservation

private nonprofit

organization

‡

Yes Yes No No

* Local governments may include non-federally recognized tribes or, consistent with the definition of

local government in 42 U.S.C. § 5122(8)

, may include any tribe, authorized tribal organization, or

Alaska Native village or organization that is not federally recognized according to 25 U.S.C. § 479(a)

et seq.

†

Private nonprofit organizations are defined in 44 CFR 206.221(f).

‡

Limited to acquisition and demolition/relocation projects

B.1. State Agencies

State agencies are any department, commission, council, board, educational institution or official of

the executive, legislative or judicial branch of a state or territorial government.

B.2. Local Governments

Local governments are any county, municipality, city, town, township, public authority, school district,

special district, intrastate district, council of government, regional or interstate government entity, or

an agency or instrumentality of a local government; any tribe or authorized tribal organizations, or

Alaska Native village or organization; and any rural community, unincorporated town or village, or

other public entity.

B.3. Private Nonprofit Organizations

Under HMGP and HMGP Post Fire, only certain private nonprofits are eligible subapplicants. To be an

eligible subapplicant, the private nonprofit must own and operate a private nonprofit facility.

42 U.S.C. § 5122(8), 2 CFR § 200.1

44 CFR § 206.221(e)

Hazard Mitigation Assistance Program and Policy Guide

Part 4. Eligibility and Requirements 67

qualified conservation organization

is the only private nonprofit organization (that does not own or

operate a nonprofit facility) that is eligible to apply for acquisition or relocations for open space

projects.

To be eligible, a private nonprofit organization must show that it has either one of the following:

 A ruling letter from the Internal Revenue Service that was in effect as of the date of the

declaration for HMGP and granted tax exemption under Sections 501(c), (d) and (e) of the

Internal Revenue Code of 1954.

 Documentation from the state substantiating it is a nonrevenue producing nonprofit,

organized or doing business under state law.

To determine private nonprofit eligibility, the Federal Emergency Management Agency (FEMA) must

also determine whether the private nonprofit organization owns or operates a private nonprofit that

provides one of the services listed below:

 A facility that provides a critical service, defined as education, utility, irrigation, emergency,

medical, or custodial care.

 A facility that provides a noncritical but essential government service and provides those

services to the general public.

 Certain types of facilities, such as senior centers, that restrict access in a manner clearly

related to the nature of the facility and are still considered to provide essential government

services to the general public.

Under Building Resilient Infrastructure and Communities (BRIC) and Flood Mitigation Assistance

(FMA), private nonprofit organizations are not eligible subapplicants and cannot apply for HMA.

However, an eligible subapplicant may apply on their behalf. Likewise, partnerships that are formed

in support of a BRIC project must have an eligible subapplicant submit a subapplication.

Partnerships may include private nonprofits as well as other private sector entities.

B.4. Federally Recognized Tribal Government

A federally recognized tribal government has the option to apply for the HMA programs through the

state as a subapplicant (when permitted) or directly to FEMA as an applicant. This choice is

independent of a designation under other FEMA grants and programs but is not available on a case-

44 CFR § 80.3(h)

44 CFR § 206.434

Public Law 591 – Chapter 736 (Aug. 16, 1954), as amended

44 CFR § 206.221(f)

44 CFR § 206.221(e)

44 CFR § 206.221(e)(7)

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Part 4. Eligibility and Requirements 68

by-case basis within a single grant program in the same year. If a federally recognized tribe chooses

to apply directly to FEMA and an award is made, it bears the full responsibility of a recipient.

Alaska Native Corporations are ineligible, as they are privately owned.

C. Hazard Mitigation Plan Requirements

To be eligible for HMA, all applicants and subapplicants must have a FEMA-approved mitigation plan.

Applicants and subapplicants must adopt the mitigation plan before FEMA approves it. This section

presents information on how applicants and subapplicants can meet the mitigation plan

requirement. It also presents information on extraordinary circumstances and the requirement for

conformance with hazard mitigation plans for HMA activities. Guidance for developing and updating

mitigation plans can be found on the “Hazard Mitigation Planning

” webpage.

C.1. Applicant Mitigation Plan Requirements

All applicants for BRIC and FMA must have a FEMA-approved state or tribal (standard or enhanced)

mitigation plan by the application deadline and at the time of obligation of the award.

State

agencies and federally recognized tribal governments applying for HMGP and HMGP Post Fire

assistance must have a FEMA-approved state or tribal (standard or enhanced) mitigation plan at the

time of the major disaster declaration or FMAG declaration and at the time HMGP or HMGP Post Fire

assistance is obligated to the recipient or subrecipient.

A lapse in the FEMA-approved mitigation

plan will result in a temporary hold on additional obligations until the mitigation plan regains FEMA

approval.

C.2. Subapplicant Mitigation Plan Requirements

All subapplicants for BRIC and FMA must have an approved local or tribal mitigation plan by the

application deadline and at the time of obligation of grant assistance, unless otherwise noted by the

applicable NOFO.

All subapplicants (except for private nonprofits) for HMGP and HMGP Post Fire

must have an approved local or tribal mitigation plan at the time of obligation of grant assistance.

Private nonprofit subapplicants do not have mitigation plan requirements as a condition of

subapplicant eligibility. While a private nonprofit does not need to have a local or tribal mitigation

plan itself, the jurisdiction in which the proposed activity is located must have a current, FEMA-

approved local or tribal mitigation plan. Subapplicants without current mitigation plans may apply to

any of the HMA programs for assistance to develop a new plan. State agencies are eligible

44 CFR Part 201, 44 CFR § 77.6(b)

44 CFR § 206.434(c)(1)

44 CFR § 201.6, 44 CFR § 201.7

44 CFR § 206.434(b)

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Part 4. Eligibility and Requirements 69

subapplicants under HMGP, HMGP Post Fire, BRIC or FMA; a FEMA-approved state mitigation plan is

required as a condition of the state agencies receiving assistance.

The way tribal governments apply as a subapplicant determines how the tribe must meet the

mitigation requirement. The three scenarios are as follows:

1. If a federally recognized tribal government agency or department applies as a subapplicant

under HMGP, HMGP Post Fire, BRIC or FMA, then a tribal mitigation plan is required as a

condition of receiving assistance.

2. If a tribal government that meets the definition of local government (such as tribal governments

that are not federally recognized) applies as subapplicant under HMGP, HMGP Post Fire, BRIC or

FMA, then a tribal mitigation plan is required as a condition of receiving assistance.

3. If a federally recognized tribal government coordinates the review of its tribal mitigation plan with

the recipient, it can apply as a subapplicant through that recipient (i.e., a state or another

federally recognized tribe).

A lapse in the FEMA-approved mitigation plan may result in a temporary hold on additional

obligations until the mitigation plan regains FEMA approval.

C.2.1. EXTRAORDINARY CIRCUMSTANCES

A local government or tribal government applying as a subapplicant must have a mitigation plan

approved to receive HMA project subawards. However, the FEMA regional administrator may grant

an exception to the plan requirements in extraordinary circumstances when the appropriate

justification is provided.

For HMGP, HMGP Post Fire, BRIC and FMA, extraordinary circumstances exist when FEMA or the

applicant determine that the proposed project is consistent with the priorities and strategies

identified in the state or tribal (standard or enhanced) mitigation plan and that the jurisdiction meets

at least one of the criteria below:

 The jurisdiction meets the small impoverished community criteria.

 The jurisdiction has been determined to have had insufficient capacity because of lack of

available assistance, staffing or other necessary expertise to satisfy the mitigation planning

requirement prior to the current disaster or application deadline.

44 CFR § 201.4

44 CFR § 201.7

44 CFR § 201.6(a)(3), 44 CFR § 201.7(a)(2)

42 U.S.C. § 5133(a)

Hazard Mitigation Assistance Program and Policy Guide

Part 4. Eligibility and Requirements 70

 The jurisdiction experienced significant disruption from a declared disaster or another event

that impacts its ability to complete the mitigation planning process prior to award or final

approval of a project award.

 The jurisdiction does not have a mitigation plan for reasons beyond the control of the state,

federally recognized tribal government or local community, such as Disaster Relief Fund

restrictions, that delay FEMA from granting a subaward prior to the expiration of the local or

tribal mitigation plan.

The applicant must provide written justification that identifies the specific criteria from the above list

and explains why the jurisdiction will be able to have a plan both approved by FEMA and adopted by

the jurisdiction within 12 months. The justification must identify the specific actions or

circumstances that have eliminated or will eliminate the deficiency that prevented the jurisdiction

from previously having an approved plan. The justification must clearly demonstrate how the above

circumstances impacted the community beyond just stating the above circumstances.

If FEMA grants an extraordinary circumstances exception, a local or tribal mitigation plan must be

approved by FEMA within 12 months of the award of the project subaward to that community. The

recipient must acknowledge in writing to the regional administrator that the jurisdiction will complete

a plan within 12 months of the subaward. The recipient must provide a Compliance Action Plan for

completing the local or tribal mitigation plan, including milestones and a timetable, to ensure the

jurisdiction will complete the plan in the required time. This requirement must be incorporated into

the award (both the planning and project subaward agreements if a planning subaward is also

awarded). If a plan is not provided within this time frame, the project subaward will be terminated,

and any costs incurred after notice of subaward termination will not be reimbursed by FEMA.

FEMA

must notify the recipient of the subaward termination. For more information on award termination,

refer to Part 8

If the mitigation plan is not approved by FEMA within 12 months of the award, and if the subaward

also involved a mitigation planning award, FEMA should notify the recipient of its failure to meet the

additional specific award or subaward conditions and request that the issue be corrected following

remedies for non-compliance procedures in Part 8

. If compliance cannot be achieved, FEMA will

apply a remedy action to the planning subaward to address the non-compliance and may, as a result,

withhold assistance, recoup assistance, suspend or terminate the planning subaward.

C.2.2. CONSISTENCY WITH HAZARD MITIGATION PLANS

Activities submitted for consideration for HMA must be consistent with the current, FEMA-approved

state or tribal (standard or enhanced) mitigation plan as well as the local or tribal mitigation plan for

the jurisdiction in which the activity is located.

Specifically, the activity must be consistent with the

44 CFR § 201.6(a)(3)

2 CFR § 200.339

44 CFR § 206.434(c)(1), 44 CFR § 201.4, 44 CFR § 201.6

Hazard Mitigation Assistance Program and Policy Guide

Part 4. Eligibility and Requirements 71

goals and objectives of the plan, and it must directly reduce the vulnerabilities identified in the risk

assessment.

Often state agencies, acting as the subrecipients, administer subawards for state assets. In these

instances, the state is required to have a FEMA-approved state mitigation plan, but a local or tribal

mitigation plan is not required. For example, the mitigation of a state-owned transportation facility

located within the jurisdiction of a local government that does not have a mitigation plan may be

eligible for HMA programs. The state’s Department of Transportation (DOT) may submit a

subapplication to protect the facility, provided its assets are covered in the state’s mitigation plan,

even if the local jurisdiction does not have a mitigation plan.

Additionally, a local or tribal mitigation plan is not required when a state agency or private nonprofit,

acting as a subapplicant, proposes an activity that meets all of the following criteria:

 The activity will be administered by the state agency or private nonprofit as a statewide

initiative or program.

 The statewide initiative or program is consistent with the goals and objectives of the current

FEMA-approved state or tribal (standard or enhanced) mitigation plan.

 The state agency or private nonprofit is not applying on behalf of or instead of a local

government to circumvent the local or tribal mitigation plan requirement.

 The community in which the activity is located does not have any financial interest in the

subaward (e.g., property ownership, long-term maintenance) or significant authority over the

activity (except for permits under current building codes).

Where there is a local or tribal government planning requirement (for the subrecipient), statewide

plans will not be accepted as multi-jurisdictional plans.

D. Eligible Activities

To be eligible, activities must meet all requirements referenced in the HMA Guide. Table 4

summarizes eligible activities that may be funded by the HMA programs. This table is not

comprehensive, and FEMA encourages subapplicants to submit new and innovative activities that

may not be specifically outlined below.

Eligible activities fall into three categories:

1. Capability- and Capacity-Building (non-construction) (Part 11).

a. Mitigation planning and planning-related activities.

44 CFR § 201.6(a)(4)

Hazard Mitigation Assistance Program and Policy Guide

Part 4. Eligibility and Requirements 72

b. Project scoping/advance assistance.

c. Partnerships.

d. Technical assistance (financial/non-financial).

e. Codes and standards.

2. Mitigation projects (construction) (Part 12).

3. Management costs (Part 13).

Table 4: Eligible Activities by Program

Eligible Activities HMGP HMGP Post Fire BRIC FMA

Capability- and Capacity-Building

New Plan Creation and Updates Yes Yes Yes Yes

Planning-Related Activities Yes Yes Yes No

Project Scoping/Advance Assistance Yes Yes Yes Yes

Financial Technical Assistance No No No Yes

Direct Non-financial Technical

Assistance

No No Yes No

Partnerships No No Yes Yes

Codes and Standards Yes Yes Yes No

Innovative Capability- and Capacity-

Building

†

Yes Yes Yes Yes

Mitigation Projects

Property Acquisition Yes Yes Yes Yes

Structure Elevation Yes Yes Yes Yes

Mitigation Reconstruction Yes Yes Yes Yes

Localized Flood Risk Reduction Yes Yes Yes Yes

Non-Localized Flood Risk Reduction Yes Yes Yes Yes

Stabilization Yes Yes Yes Yes

Dry Floodproofing Non-Residential

Building

Yes Yes Yes Yes

Tsunami Vertical Evacuation Yes Yes Yes No

Safe Room Yes Yes Yes No

Hazard Mitigation Assistance Program and Policy Guide

Part 4. Eligibility and Requirements 73

Eligible Activities HMGP HMGP Post Fire BRIC FMA

Wildfire Mitigation Yes Yes Yes No

Retrofit Yes Yes Yes Yes

†

Secondary Power Source Yes Yes Yes No

Warning System (excluding

earthquake early warning system)

Yes Yes Yes No

Earthquake Early Warning System Yes Yes Yes No

Aquifer Recharge, Storage and

Recovery

Yes Yes Yes Yes

***

Innovative Mitigation Project

††

Yes Yes Yes Yes

3. Management Costs Yes Yes Yes Yes

For FMA, new plans and plan updates must provide for the reduction of flood losses to structures

for which National Flood Insurance Program (NFIP) coverage is available.

For FMA, non-localized flood risk reduction projects such as dikes, levees, floodwalls, seawalls,

groins, jetties, dams and large-scale waterway channelization projects are not eligible unless the

administrator specifically determines in approving a mitigation plan that such activities are the most

cost-effective mitigation activities for the National Flood Mitigation Fund.

***

For FMA, aquifer recharge, storage and recovery projects may be eligible under FMA if the

purpose of the project is to provide flood mitigation benefits to NFIP participating communities and is

demonstrated to eliminate future claims against the NFIP.

†

Only flood-related retrofitting projects are eligible.

††

Innovative Capability- and Capacity-Building Activities and Innovative Mitigation Projects not

described in the HMA Guide will be evaluated on their own merit against program requirements.

Eligible activities will be approved on a case-by-case basis if assistance is available.

D.1. Capability- and Capacity-Building

The following assistance strategies can be used to develop mitigation activities. For a complete

description of eligibility criteria for each of these categories, refer to Part 11

D.1.1. NEW PLAN CREATION AND PLAN UPDATES

Natural hazard mitigation planning consists of the process used by state, local and tribal

governments to engage stakeholders, identify hazards and vulnerabilities, develop a long-term

strategy to reduce risk and future losses, and implement the plan, taking advantage of a wide range

of resources. New plan creation and plan update activities must result in a mitigation plan adopted

44 CFR § 77.6(b).

Hazard Mitigation Assistance Program and Policy Guide

Part 4. Eligibility and Requirements 74

by the jurisdiction(s) and approved by FEMA. New plan creation and plan updates are eligible under

HMGP, HMGP Post Fire, BRIC and FMA.

D.1.2. PLANNING-RELATED ACTIVITIES

To strengthen hazard mitigation across the country, FEMA supports a variety of planning-related

activities under HMGP, HMGP Post Fire and BRIC. This assistance provides flexibility to state, local

and tribal governments to reduce risk and integrate hazard mitigation principles into planning for

resilience.

D.1.3. PROJECT SCOPING/ADVANCE ASSISTANCE

Project scoping/advance assistance refers to the same set of activities that enable applicants and

subapplicants to develop mitigation strategies and obtain data to prioritize, select and develop

complete applications in a timely manner.

D.1.4. TECHNICAL ASSISTANCE (FINANCIAL AND NON-FINANCIAL)

Financial technical assistance awards are only available under FMA and are meant to allow

applicants to maintain a viable FMA program over time.

Eligible activities include program

promotion, site visits, application development and review, planning and grants management

workshops and staff assistance.

Non-financial technical assistance is available under BRIC to allow communities to support

mitigation outcomes to improve resilience to natural hazards, sustain successful mitigation

programs, submit high-quality applications and implement innovative activities to reduce risk.

100

Through non-financial Direct Technical Assistance, FEMA will provide support for both activity-specific

needs and community-wide resilience needs. Refer to the applicable Notice of Funding Opportunity

(NOFO) for more information.

D.1.5. PARTNERSHIPS

Community resilience cannot be achieved without leveraging a broad network of partners that

include (but are not limited to) all levels of government, the private sector, private nonprofits, and

educational institutions. These partners are key to driving investments in mitigation projects, building

capability through training and technical assistance, planning for increased resilience, promoting

mitigation activities, and sharing information to promote and sustain a ready FEMA and prepared

nation.

42 U.S.C. § 4104c(c)(3)(J)

100

Section 203(e) of the Stafford Act, 42 U.S.C. § 5133(e)

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Part 4. Eligibility and Requirements 75

To ensure applicants and subapplicants can build partnerships to support their mitigation efforts,

partnership activities may be eligible under BRIC and FMA. For more information, refer to Part 11

and the applicable BRIC and FMA NOFOs.

Partnership activities are not eligible under HMGP.

D.1.6. CODES AND STANDARDS

FEMA will fund the development, adoption, evaluation, enhancement and enforcement of building

codes and standards through HMA. Assistance for building code-related activities is available

through the HMGP, HMGP Post Fire and BRIC programs. Eligible activities under these three

programs are generally the same; program-specific restrictions are detailed in Part 11

D.2. Mitigation Projects

Eligible mitigation project types are described below. More information regarding these project types

can be found in Part 12

D.2.1. PROPERTY ACQUISITION

Property acquisition is the purchase of an existing at-risk structure and, typically, the underlying land

from a voluntary owner, as well as the conversion of the land to open space. The existing structure is

either demolished or physically relocated to an area outside of a hazard-prone area (e.g., outside of

the Special Flood Hazard Area [SFHA], high fire zone area or a regulatory erosion zone). In some

cases, undeveloped, at-risk land adjacent to an eligible property with existing structures may be

eligible. The property must be deed restricted in perpetuity to open space uses to restore and/or

conserve the natural floodplain functions.

101

D.2.2. STRUCTURE ELEVATION

Structure elevation is the physical raising and/or retrofitting of an existing structure. Elevation may

be achieved through a variety of methods, including elevating on continuous foundation walls;

elevating on open foundations, such as piles, piers, posts or columns; elevating on fill; and

second-story conversion.

D.2.3. MITIGATION RECONSTRUCTION

Mitigation reconstruction is the construction of an improved, elevated structure that conforms to the

latest building codes on the same site where an existing structure and/or foundation has been

partially or completely demolished or destroyed.

101

44 CFR § 80.11

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D.2.4. FLOOD RISK REDUCTION

Flood risk reduction projects are designed to lessen the frequency of flooding or depth of flood water.

Flood risk reduction project types fall into two categories: localized and non-localized.

Localized flood risk reduction projects are used to lessen the frequency or severity of flooding and

decrease predicted flood damage within an isolated and confined drainage or catchment area that is

not hydraulically linked or connected to a larger basin. Examples of these projects include the

following:

 Installation or modification of culverts and other stormwater management facilities.

 Flood diversion and storage measures.

 Slope stabilization or grading.

 Flood protection measures for sewer or other utility systems.

 Vegetation management for shoreline stabilization.

 Flood protection and stabilization for roads and bridges.

Non-localized flood risk reduction projects should lessen the frequency or severity of flooding and

decrease predicted flood damage within an area that is hydraulically linked or connected to a

drainage basin that is regional in scale. These projects reduce flood hazards in areas larger than that

of localized flood reduction projects. The projects may include the construction, demolition or

rehabilitation of dams; the construction or modification of dikes, levees, floodwalls, seawalls, groins,

jetties, breakwaters and stabilized sand dunes; and the large-scale channelization of a waterway.

D.2.5. STABILIZATION

Stabilization projects reduce risk to structures or infrastructure from erosion and landslides by

installing geosynthetics, stabilizing sod, installing vegetative buffer strips, preserving mature

vegetation, decreasing slope angles, and stabilizing with riprap and other means of slope anchoring.

D.2.6. FLOODPROOFING

Dry floodproofing techniques are applied to keep structures dry by sealing the structure to keep

floodwaters out. Dry floodproofing of historic residential structures is permissible only when other

techniques that would mitigate the Base Flood Elevation would cause the structure to lose its status

as a historic structure. Dry floodproofing projects are eligible for non-residential and historic

residential structures under all HMA programs. Wet floodproofing consists of the use of flood-

damage-resistant materials and construction techniques to minimize flood damage to areas below

the flood protection level of a non-residential structure, which is intentionally allowed to flood. Wet

floodproofing projects are eligible for non-residential structures under all HMA programs.

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D.2.7. TSUNAMI VERTICAL EVACUATION

Tsunami vertical evacuation projects are designed to provide immediate life-safety protection in the

event of a tsunami, with sufficient height to elevate evacuees above the tsunami inundation depth.

This type of project includes retrofitting existing structures, constructing new vertical evacuation

structures, or converting natural topographic features to enable vertical evacuation.

D.2.8. SAFE ROOM

Safe room projects are designed and constructed to provide immediate life-safety protection for

people in public and private structures from severe wind events, including hurricanes and tornadoes.

For HMA programs, the term “safe room” only applies to structures that meet the criteria in

FEMA P-

361, Safe Rooms for Tornadoes and Hurricanes, Fourth Edition (April 2021), to provide protection

from tornadoes and/or hurricanes, including residential and community safe rooms. This type of

project includes retrofits of existing facilities or new safe room projects and applies to both sole-use

and multiuse facilities.

D.2.9. WILDFIRE MITIGATION

Wildfire mitigation projects mitigate at-risk structures and associated loss of life from the threat of

future wildfire through:

 Defensible space: Creation of perimeters around homes, structures and critical facilities

through the removal or reduction of flammable vegetation.

 Ignition-resistant building materials: Application of ignition-resistant techniques and/or non-

combustible materials on new and existing homes, structures and critical facilities.

 Fire suppression systems: Exterior sprinkler systems to help extinguish flames and prevent

the spread of fire to nearby buildings or combustible vegetation.

 Fuels reduction/vegetation management: Removal of vegetative fuels proximate to at-risk

structures that, if ignited, pose a significant threat to human life and property, especially

critical facilities.

 Post-wildfire flooding prevention and sediment reduction measures: Preventative measures

that protect property at the base of slopes made vulnerable to erosion and/or flooding

because of loss of vegetation or changes in soil composition post-wildfire.

D.2.10. RETROFIT

Retrofits are modifications to existing structures to reduce or eliminate the risk of future damage and

to protect inhabitants. Retrofits can be structural or non-structural and can be done for a range of

hazards.

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Part 4. Eligibility and Requirements 78

Structural retrofits address the structural elements of a building or facility that are essential to

prevent damage, including foundations, load-bearing walls, lateral load-resisting systems, beams,

columns, building envelope, structural floors and roofs, and the connections between these

elements. An example of an earthquake structural retrofit would be the installation of base isolation

or energy dissipation systems in accordance with the latest building codes and standards.

Non-structural retrofits modify the non-structural elements of a building or facility to reduce or

eliminate the risk of future damage and to protect inhabitants. Non-structural retrofits may include

anchoring major mechanical, electrical, plumbing and architectural components to load-bearing

structure or foundation and bracing of building contents to prevent earthquake damage or the

elevation of utilities.

Structural and non-structural retrofits reduce or eliminate risk of future damage to existing

infrastructure. Retrofits may include existing roads and bridges or infrastructure/lifelines such as

energy utilities, communications systems and public water systems.

D.2.11. SECONDARY POWER SOURCE

Secondary power sources increase power system resilience and mitigate the impacts of natural

hazards while increasing the resilience of critical functions.

The purchase and installation of secondary power sources and related equipment, such as

generators, microgrids, solar photovoltaic systems, and battery back-up systems are generally

eligible if they are cost-effective, contribute to a long-term solution to the problem they are intended

to address, and meet all other program eligibility criteria. Additional secondary power sources not

listed in the HMA Guide may be eligible and will be reviewed on a case-by-case basis.

D.2.12. WARNING SYSTEMS

Warning systems projects include equipment and systems to warn people about natural hazards

such as earthquakes, tornadoes, wildfire, tsunamis and flash floods.

D.2.13. AQUIFER RECHARGE, STORAGE AND RECOVERY

Aquifer recharge, storage and recovery projects serve primarily as a drought management tool, but

they can also be used to reduce flood risk, mitigate saltwater intrusion and restore aquifers that

have been subject to overdraft.

D.3. Management Costs

Management costs are any indirect costs, any direct administrative costs, and any other

administrative expenses associated with the administration of HMA awards and subawards.

Management costs are provided under HMGP, HMGP Post Fire, BRIC and FMA. More information on

management costs can be found in Part 13

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Part 4. Eligibility and Requirements 79

E. Ineligible Activities

The following list provides examples of activities that are not eligible for HMA:

 Activities that do not reduce the risk to people, structures or infrastructure.

 Activities that are dependent on a contingent action to be effective and/or feasible (i.e., not a

stand-alone mitigation activity that solves a problem independently or constitutes a

functional portion of a solution).

102

 Projects with the sole purpose of the open space acquisition of unimproved land.

103

 Property acquisition projects that do not maintain open space in perpetuity according to the

requirements of 44 Code of Federal Regulations (CFR) Part 80

 The cost of any functionality or finishing not directly required for meeting FEMA-approved

performance criteria, such as interior or exterior decorative elements and fixtures and floor

treatments.

 Projects for which actual physical work, such as groundbreaking, demolition or construction

of a raised foundation, has occurred prior to award or final approval, with two exceptions:

o Properties where private individuals have demolished damaged structures using private

assistance or other non-federal assistance prior to application for HMA are eligible for

inclusion in HMA project applications if the demolition is not connected to the project.

o Projects for which demolition and debris removal related to structures proposed for

acquisition or mitigation reconstruction has already occurred may be eligible when such

activities were initiated or completed under the FEMA Public Assistance (PA) program to

alleviate a health or safety hazard as a result of a disaster.

 Activities that establish hazard mitigation revolving loan funds.

104

 Activities required as a result of negligence or intentional actions that contributed to the

conditions to be mitigated; activities intended to remedy a code violation; or the

102

44 CFR § 206.434(c)(4)

103

44 CFR § 80.11(b)

104

Public Law 116-284 (Jan. 1, 2021) created Section 205 of the Stafford Act (42 U.S.C. § 5135), authorizing the creation

of the Safeguarding Tomorrow through Ongoing Risk Mitigation Revolving Loan Fund (Safeguarding Tomorrow RLF)

program. The Safeguarding Tomorrow RLF program provides capitalization grants to states, eligible federally recognized

tribes, territories and the District of Columbia to establish revolving loan funds to provide hazard mitigation assistance to

local governments to reduce risks from natural hazards and disasters. As of the date of publication of the HMA Guide,

FEMA is still developing the Safeguarding Tomorrow RLF program and will issue separate guidance at a later date.

Hazard Mitigation Assistance Program and Policy Guide

Part 4. Eligibility and Requirements 80

reimbursement of legal obligations, such as those imposed by a legal settlement, court order

or state law.

 All projects located in Coastal Barrier Resources System units, other than property

acquisition for open space or nature-based stabilization projects provided they qualify for one

of the exceptions in Section 6 of the Coastal Barrier Resources Act.

105

For more information,

refer to Part 12.

 Projects located in Otherwise Protected Areas that require flood insurance after project

completion.

 Activities associated with facilities or land owned by another federal entity where the specific

authority relating to the activities lies with another federal entity.

 Retrofitting facilities primarily used for religious purposes, such as places of worship (or other

projects that solely benefit religious organizations). However, a place of worship may be

included in a property acquisition and structure demolition or relocation project provided that

the project benefits the entire community, such as when a significant part of the community

is being removed from the hazard area.

 Activities that only address manmade hazards.

 Landscaping for ornamentation (e.g., trees, shrubs).

 Site remediation of hazardous materials (except for eligible activities, such as the abatement

of asbestos and/or lead-based paint and the removal of household hazardous wastes for

disposal at an approved landfill).

 Projects that address water quality improvement without mitigating hazards to water quality

infrastructure.

 Projects that primarily address ecological or agricultural issues.

 Forest management.

 Prescribed burning or clear-cutting.

 Creation and maintenance of access roads or staging areas for wildfire response equipment.

 Creation and maintenance of fire breaks.

 Irrigation systems.

105

16 United States Code (U.S.C.) § 3505

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Part 4. Eligibility and Requirements 81

 Preparedness and response measures and equipment. (e.g., construction of emergency

operations centers and fire stations; installation or purchase of sandbags, bladders,

geotubes, and interoperable communications equipment; development/offering of response

training).

 Projects that, without an increase in the level of protection, address the operation, deferred

or future maintenance, rehabilitation, restoration or replacement of existing structures,

facilities or infrastructure (e.g., dredging; debris removal; replacement of obsolete utility

systems or bridges; or maintenance/rehabilitation of facilities, including dams and other

flood risk reduction structures).

 Activities that address unmet needs from a disaster that are not related to mitigation.

 Studies not directly related to the design and implementation of a proposed mitigation

project.

 Activities excluded from funding because of duplication of programs or duplication of

benefits. For more information refer to Part 4.K

FEMA may, at its discretion, choose not to fund activities subject to ongoing litigation if such litigation

may affect the eligibility of the activity or may substantially delay implementation of the activity. All

projects must also comply with any additional project-specific guidance provided in Part 11 or

Part

12.

F. Feasibility and Effectiveness

Subapplicants will have to document that their projects are feasible and effective at mitigating the

risks for which the project was designed.

106

In the project narrative, the subapplicant may need to

demonstrate the engineering practices, established codes and standards, and modeling applicable

to the project.

For specific feasibility and effectiveness requirements by project type, refer to Part 12

F.1. Hazard Mitigation Assistance Efficiencies

FEMA accepts the engineering design for a project if a licensed professional engineer (or other

design professional licensed by the state to practice in the discipline being certified by the individual)

certifies that the design meets the appropriate code or industry design and construction standards.

FEMA will accept the certified engineering design in lieu of the FEMA comprehensive technical

feasibility review. For example, if a licensed professional engineer certifies that the design of a

106

44 CFR § 206.434(c)

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Part 4. Eligibility and Requirements 82

community safe room project meets or exceeds FEMA P-361 criteria for design and construction,

FEMA will not perform a detailed design review to ensure compliance with the criteria.

G. Environmental and Historic Preservation

Requirements

HMA programs, and assistance awarded pursuant to these programs, must conform to FEMA

Directive 108-1, Environmental Planning and Historic Preservation Responsibilities and Program

Requirements (Oct. 10, 2018), and with all applicable EHP laws, implementing regulations, and

executive orders. This includes but is not limited to the

National Environmental Policy Act,

107

the

National Historic Preservation Act,

108

the Endangered Species Act,

109

Executive Order (EO) 11988 on

Floodplain Management (May 24, 1977), as amended by EO 13690 on Establishing a Federal Flood

Risk Management Standard and a Process for Further Soliciting and Considering Stakeholder Input

(Jan. 30, 2015),

EO 11990 on Protection of Wetlands (May 24, 1977), and EO 12898 on Federal

Actions to Address Environmental Justice in Minority Populations and Low-Income Populations (Feb.

11, 1994). By taking the proposed project’s impacts to the human environment into account in the

decision-making process, EHP requirements ensure that reasonable alternatives are considered. All

activities must comply with all federal laws, regulations and executive orders applicable to the

environment and historic preservation. To ensure compliance with all EHP laws, regulations and

executive orders, additional EHP conditions may be included in the award agreement.

FEMA has the responsibility to ensure a project complies with federal laws, regulations and executive

orders related to EHP, which includes coordination with other federal and state agencies and

consultation with tribal governments. Applicants and subapplicants should assist FEMA by identifying

EHP reviews previously completed by other agencies, gathering data, and reaching out to

stakeholders and regulatory agencies for pertinent information. If EHP issues are identified, the

applicant and subapplicant should initiate coordination with the relevant federal and state agencies

as early in the project planning stages as possible to address any potential EHP issues associated

with proposed activities. This coordination does not substitute for, and shall not be interpreted to

mean, formal consultation has occurred between FEMA and the applicable federal/state agency or

tribal government.

Below is a general summary of the EHP compliance review process before a federal award may be

made.

FEMA will:

107

Public Law 91-190 (Jan. 1, 1970), 42 U.S.C. § 4321

108

Public Law 89-665 (Oct. 15, 1966), 36 CFR Part 800

109

Public Law 93-205 (Dec. 28, 1973), 16 U.S.C. § 1531

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Part 4. Eligibility and Requirements 83

 Evaluate any potential impacts to EHP resources and provide the required information and

documentation to identify the impact on these resources.

 Complete any required consultation and/or coordination with the appropriate agencies (e.g.,

the state/tribal Historic Preservation Office, the U.S. Fish and Wildlife Service and the

National Marine Fisheries Service) or tribal governments to evaluate potential effects of the

proposed project and to identify any measures necessary to avoid or minimize these effects.

 Complete an evaluation of, and document alternatives to, the proposed action that will avoid

or minimize these impacts, including consideration of the environmental impact of taking no

action.

 Demonstrate that the project will incorporate any EHP mitigation measures required to

mitigate the adverse effects on EHP resources.

 Ensure all EHP projects costs, including the costs of known measures to treat adverse

effects, are reflected in the project budget estimate.

EHP compliance considers and documents the following resource types or actions: biological, water,

coastal, pollution control, debris management, socioeconomic, historical and cultural.

Applicants and subapplicants may apply for projects that are a functional portion of a long-term

solution. If this approach is taken, each project must be able to function independently and meet all

HMA project eligibility requirements, EHP compliance included. Applicants should include EHP

reviews, surveys or studies previously completed as part of the planning process or for other related

projects that may be able to help FEMA assess the proposed project with their application.

FEMA is responsible for reviewing connected actions associated with a proposed project, even if the

agency is not funding the connected action. Applicants and subapplicants must include information

on actions connected to the proposed project in the application even if FEMA is not funding the

connected action.

Actions are connected if they:

 Automatically trigger other actions that may require environmental impact statements.

 Cannot or will not proceed unless other actions are taken previously or simultaneously.

 Are interdependent parts of a larger action and depend on the larger action for their

justification.

110

Assistance will not be awarded and the applicant/subapplicant may not initiate the project, other

than planning or preparatory work not involving construction or alteration of the land, until FEMA has

110

40 CFR 1501.9(e)(1).

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Part 4. Eligibility and Requirements 84

completed this review and determines that the project, when completed, will comply with all EHP

laws, regulations and executive orders.

FEMA developed guidance to assist in completing the EHP information section of a project

subapplication, including online training and information about historic preservation. Technical

assistance is also available through the FEMA regional offices, via the toll-free Project Technical

Assistance for EHP Helpline 866-222-3580, or via email at eh[email protected]

G.1. Coastal Barrier Resources System Eligibility Requirements

In accordance with the Coastal Barrier Resources Act,

111

HMA programs may assist projects in

otherwise Protected Areas if they do not require flood insurance after project completion.

112

Projects

in a John H. Chafee Coastal Barrier Resources System (CBRS) unit are eligible only if they qualify for

one of the exceptions in Section 6 of the Coastal Barrier Resources Act.

113

That is, projects are

eligible if they are consistent with the purposes of the Coastal Barrier Resources Act and qualify as

projects for the study, management, protection and enhancement of fish and wildlife resources and

habitats.

114

 All projects that occur in or adjacent to CBRS units must meet one of the Coastal Barrier

Resources Act exceptions and require that FEMA consult with the appropriate U.S. Fish and

Wildlife Service Ecological Services field office.

 Proposed actions carried out within or adjacent to an Otherwise Protected Areas do not

require consultation with the U.S. Fish and Wildlife Service.

111

Public Law 97-348 (Oct. 18, 1982), as amended. To remove federal incentives to develop coastal areas, the Coastal

Barrier Resources Act designated relatively undeveloped land along the Atlantic and Gulf Coast as part of the John H.

Chafee Coastal Barrier Resources System (CBRS) and made these areas ineligible for most new federal assistance.

112

Congress reauthorized the Coastal Barrier Resources Act with the Coastal Barrier Improvement Act of 1990 (Public Law

101-591 [Nov. 16, 1990], expanding the CBRS to include undeveloped costal barriers along the Florida Keys, Great Lakes,

Puerto Rico and the U.S. Virgin Islands. It also added a new category of undeveloped barriers called Otherwise Protected

Areas. Otherwise Protected Areas consist of conservation or recreation areas such as national wildlife refuges, state and

national parks, local conservation areas and private conservation areas, although they may also contain private areas not

for conservation.

113

16 United States Code (U.S.C.) § 3505

114

16 U.S.C. § 3505(a)(6)(A), 44 CFR § 206.345

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Part 4. Eligibility and Requirements 85

EHP Resources

 Environmental & Historic Preservation Grant Preparation Resources:

https://www.fema.gov/grants/guidance-tools/environmental-historic/preparation-

resources

 FEMA Directive 108-1: Environmental Planning and Historic Preservation Responsibilities

and Program Requirements https://www.fema.gov/sites/default/files/2020-

07/fema_ehp_requirements_2018.pdf

 National Environmental Policy Act: https://www.fema.gov/emergency-

managers/practitioners/environmental-historic/laws/nepa

 National Historic Preservation Act: https://www.fema.gov/emergency-

managers/practitioners/environmental-historic/laws/nhpa

 Endangered Species Act: https://www.fws.gov/law/endangered-species-act

 Executive Order 11988 on Floodplain Management https://www.archives.gov/federal-

 Executive Order 11990 on the Protection of Wetlands https://www.archives.gov/federal-

 Executive Order 12898 on Federal Actions to Address Environmental Justice in Minority

Populations and Low-Income Populations https://www.archives.gov/files/federal-

 U.S. Fish and Wildlife Service Coastal Barrier Resources Act Project Consultation:

https://www.fws.gov/cbra/Consultations.html

For a comprehensive list of EHP resources, refer to the FEMA EHP webpage:

https://www.fema.gov/emergency-managers/practitioners/environmental-historic/laws.

H. Floodplain Management and Protection of Wetlands

All activities assisted by HMA programs must conform to FEMA regulations on floodplain

management and protection of wetlands in 44 CFR Part 9

and the eight-step decision-making

process (refer to Figure 5). Proposed actions located in the 1% annual chance floodplain (or 0.2%

annual chance floodplain for critical actions), and proposed actions that have the potential to affect

or be affected by a floodplain or wetland will only be eligible for an award or subaward if the

applicant or subapplicant demonstrates that there is no practicable alternative to locating the action

in a floodplain or wetland in accordance with

44 CFR §§ 9.9-11.

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Part 4. Eligibility and Requirements 86

A critical action is an action for which even a slight chance of flooding poses too great of a risk. It

may or may not be associated with a critical facility.

115

FEMA is responsible for determining if an

action is a critical action. If FEMA identifies a critical action, FEMA must evaluate potential harm to

the action from the 0.2% annual chance flood.

Critical Action Definition

Critical actions are defined in 44 CFR § 9.4, which includes examples of actions for which even a

slight chance of flooding is too great. If an action is not specified in 44 CFR Part 9, FEMA uses

the U.S. Water Resource Council Floodplain Management Guidelines for Implementing EO

11988, amended by EO 13690, and the following series of questions about the subject

structure or facility to determine whether a proposed action is deemed a critical action:

 If flooded, would the proposed action create an added dimension to the disaster, such as for

liquefied natural gas terminals and facilities producing and storing highly volatile, toxic or

water-reactive materials?

 Given the flood warning lead-time available, would the occupants of buildings such as

hospitals, schools and nursing homes be sufficiently mobile to avoid loss of life and injury?

 Would essential and irreplaceable records, utilities and/or emergency services be lost or

become inoperative if flooded?

If any of the answers are “yes,” then the proposed action is a critical action.

HMA cannot be used to assist new construction or substantial improvements in a floodway or new

construction in a Coastal High Hazard Area unless it constitutes a functionally dependent use or

facilitates an open space use.

116

Substantial improvement is defined as any reconstruction,

rehabilitation, addition or other improvement of a structure, the cost of which equals or exceeds 50%

of the market value of the structure before the start of construction of the improvement.

117

However,

the costs to elevate or dry floodproof a damaged structure or facility are not included in determining

whether the substantial improvement threshold is triggered.

115

Critical actions and critical facilities are not used interchangeably in the regulation but have specific meanings. Critical

facilities are structures and institutions that are deemed by the local community and other jurisdictions as critical to the

continuity of the community before, during and after an event. Although the affected jurisdiction has the primary

responsibility for determining what structures and institutions are critical facilities, FEMA reserves the right to make a final

determination as needed to support the review and approval of an HMA project application.

116

44 CFR § 9.11(d)

117

44 CFR § 9.4.

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Part 4. Eligibility and Requirements 87

Figure 5. Eight-Step Decision-Making Process for Floodplain Management Considerations and

Protection of Wetlands

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Part 4. Eligibility and Requirements 88

I. Federal Flood Risk Management Standards – Partial

Implementation

Certain HMA-funded structure mitigation projects must meet the minimum standards of FEMA’s

partial implementation of the Federal Flood Risk Management Standards:

 All structure elevation, mitigation reconstruction, and dry floodproofing projects; and

 All projects where HMA funds are used for new construction, substantial improvement, or to

address substantial damage to structures.

118

The identification of the flood hazard must be based on the best available data.

119

This information

may be found in Flood Insurance Rate Maps (FIRMs),

120

Flood Insurance Studies or non-FEMA

sources as described below:

 If the FIRM is up to date and available and FEMA determines that the best flood hazard

information is the FIRM, then applicants must use the 1% and 0.2% annual chance

floodplains on that map.

 If FEMA has provided advisory flood hazard information because the effective FIRM is out of

date, FEMA will designate the advisory information to be used if the advisory information is at

least as restrictive as the effective information. If assistance is provided post-disaster (such

as HMGP), FEMA will communicate the availability of floodplain maps or advisory flood

hazard information to be used.

The design standards differ depending on whether the action is critical or non-critical and whether

the structure is in a 1% or 0.2% annual chance floodplain based on the best available data.

121

If a

state, local, tribal, territorial government or federal agency has adopted a higher standard applicable

to the specific project, FEMA will require the higher standard.

122

For non-critical actions in a 1% annual chance floodplain:

118

Refer to 44 CFR § 9.4 for the definitions of “new construction” and “substantial improvement;” Refer to 44 CFR § 59.1

for the definition of “substantial damage.”

119

Refer to FEMA Policy #104-008-2: Guidance on the Use of Best Available Flood Hazard Information for additional

information.

120

Refer to 44 CFR § 59.1 for the definition of “Flood Insurance Rate Map.”

121

Refer to 44 CFR § 9.4 for the definition of “critical action.” Non-critical actions are any actions that are not defined as a

critical action in 44 CFR § 9.4.

122

44 CFR § 9.11(d)(6)

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Part 4. Eligibility and Requirements 89

 Applicants must elevate or floodproof structures to the 0.2% annual chance flood elevation

or an additional 2 feet above the Base Flood Elevation, whichever is lower.

123

124

 For those areas where the 0.2% annual chance flood elevation has not been established,

applicants must elevate or floodproof structures an additional 2 feet above the Base Flood

Elevation.

For critical actions in the 1% annual chance floodplain:

 Applicants must elevate or floodproof structures to the 0.2% annual chance flood elevation

or an additional 3 feet above the Base Flood Elevation, whichever is higher.

 For those areas where the 0.2% annual chance flood elevation has not been established,

applicants must elevate or floodproof structures an additional 3 feet above the Base Flood

Elevation.

For critical actions in the 0.2% annual chance floodplain:

 Applicants must elevate or floodproof structures to the 0.2% annual chance flood elevation

or an additional 3 feet above the Base Flood Elevation, whichever is higher.

This policy does not affect non-critical actions involving structures that are within the 0.2% annual

chance floodplain, but outside the 1% annual chance floodplain.

J. Flood Insurance Requirements

J.1. National Flood Insurance Program Requirements

HMA eligibility is related to the National Flood Insurance Program (NFIP) as follows:

 Applicant and subapplicant eligibility: States, state agencies, tribal governments and

communities participating in the NFIP may apply for FMA planning and project awards and

subawards and associated management costs. Communities withdrawn, suspended, on

probation or not participating in the NFIP are not eligible to apply for FMA. Certain political

subdivisions (i.e., regional flood control districts or county governments) may apply and act

as subrecipients if they are part of a community that is participating in the NFIP where the

123

Under 44 CFR § 9.11(d)(3)(iii), the floodproofing option is limited to non-residential structures. This limitation applies to

each section of this policy in which FEMA has referenced floodproofing.

124

In coastal locations, there may be occasions in which the established 0.2% annual chance flood elevation is lower than

the established 1% flood elevation. In those circumstances, applicants must elevate or floodproof the structures an

additional 2 feet above the Base Flood Elevation.

Hazard Mitigation Assistance Program and Policy Guide

Part 4. Eligibility and Requirements 90

political subdivision provides zoning and building code enforcement or planning and

community development professional services for that community.

 Mitigation project eligibility: HMGP, HMGP Post Fire and BRIC subapplications for mitigation

projects sited within a SFHA are eligible only if the jurisdiction in which the project is located

is participating in the NFIP. There is no NFIP participation requirement for HMGP, HMGP Post

Fire and BRIC subapplications for mitigation projects located outside of the SFHA.

 Mitigation planning eligibility: There are no NFIP participation requirements for HMGP, HMGP

Post Fire and BRIC hazard mitigation planning subapplications. However, under FMA, the

subapplicant and the communities within the planning scope must be participating in the

NFIP to be eligible for planning assistance.

 Property eligibility: Properties included in a project subapplication for FMA assistance must

be NFIP-insured at the time of application start date.

125

Flood insurance must be maintained

for the life of the structure regardless of whether the property is subsequently removed from

the SFHA.

J.2. Flood Insurance Conditions

For structures in the SFHA at the time of project completion, regardless of HMA funding type, and for

all structures receiving assistance through FMA, flood insurance must be maintained after the

completion of the mitigation project for the life of the structure (1) to an amount at least equal to the

project cost or (2) to the maximum limit of coverage made available with respect to the particular

property, whichever is less.

126

The maximum limit of coverage made available is defined as the

replacement cost value of the structure up to $250,000 for residential and $500,000 for non-

residential. Insurance coverage on the property must be maintained during the life of the property

regardless of the transfer of ownership of such property. Insurance must also be maintained

regardless of whether the structure is subsequently removed from the SFHA.

The subrecipient (or property owner) must legally record, with the county or appropriate jurisdiction’s

land records, a notice that includes the name of the current property owner (including book/page

reference to record of current title, if readily available), a legal description of the property and the

following notice of flood insurance requirements:

This property has received federal Hazard M

itigation Assistance. Federal law, regulations,

and policy require that flood insurance coverage on this structure must be maintained

during the life of the property regardless of transfer of ownership of such property [for

HMGP, HMGP Post Fire and BRIC, refer to 42 U.S.C. §4012a. For FMA, see 44 CFR

77.6(a)(2)]. Failure to maintain flood insurance coverage will result in the property owner

being ineligible for future Hazard Mitigation Assistance awards. The property owner is also

125

44 CFR § 77.6(a)(2).

126

42 U.S.C. § 4012a(a), 44 CFR § 77.6(a)(2).

Hazard Mitigation Assistance Program and Policy Guide

Part 4. Eligibility and Requirements 91

required to maintain this property in accordance with the floodplain management criteria

of 44 CFR § 60.3 and any city/county ordinance.

Applicants/subapplicants must ensure that these requirements are met by requesting that the

participating property owner(s) sign an Acknowledgement of Conditions for Properties Using FEMA

Hazard Mitigation Assistance form and providing the form to FEMA prior to award or final approval.

This form is available on the FEMA website or can be provided by the appropriate FEMA regional

office. Properties that do not meet these requirements will not be eligible to receive assistance

under the HMA programs. Additionally, failure to maintain flood insurance coverage will result in the

property owner not being eligible for future HMA awards.

If an approved HMA project affects the accuracy of an applicable Flood Insurance Rate Map or

requires a map amendment to meet a locally adopted floodplain management ordinance, the

subrecipient is responsible for ensuring the appropriate map amendments or revisions are made.

Costs associated with these map amendments are to be identified in the budget section of a

subaward application and may be eligible costs under the HMA programs.

K. Cost Eligibility

Costs are evaluated both during the application review stage as well as when recipients submit

claims and during monitoring activities completed by FEMA. To be eligible, costs must meet the

following criteria:

127

 Be necessary and reasonable to accomplish the work properly and efficiently and be

allocable according to the cost principles.

 Conform to any limitations or exclusion set forth in the award. Such limits can be statutory or

policy based and are typically set forth in the award or subaward terms that include the

program’s NOFO announcement by reference.

 Be consistent with the recipient and subrecipient policies and procedures governing the

expenditures and activities that are not charged to federal awards. Recipients and

subrecipients are not allowed to charge costs to federal awards if those costs are prohibited

by their own policies and procedures.

 Be consistent under the recipient and subrecipient policies and practices with respect to

classifying them as a direct or indirect cost. For example, recipients may only charge costs to

the federal award as indirect costs and the recipient consistently records those same costs

as indirect costs when no federal award is involved or is being charged.

127

2 CFR § 200.403

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Part 4. Eligibility and Requirements 92

 Be determined in accordance with generally accepted accounting principles, as applicable to

the recipient and subrecipient.

 Not be federally financed as part of the recipient’s cost share.

 Be adequately documented.

 Be incurred during the approved period of performance.

In addition, eligible costs must be reduced by applicable credits,

128

such as duplication of benefits

(e.g., insurance claims)

129

and program income.

130

K.1. Reasonable Costs

A cost is reasonable if, in its nature and amount, it does not exceed that which would be incurred by

a prudent person under the circumstances prevailing at the time the non-federal entity decides to

incur the cost.

131

K.1.1. REASONABLE COSTS ANALYSIS

In conducting a reasonable cost analysis, FEMA performs a preliminary review of the documentation

to assess the complexity of the activity and the expertise required to complete the analysis. If

specialized expertise is required, a subject matter expert with the appropriate specialized skills,

knowledge, experience or capability in the appropriate field such as engineering, architecture or cost

estimating conducts the analysis.

Considerations include:

 Whether the costs were of a type generally recognized as ordinary and necessary for the

operation of a non-federal entity or the proper and efficient performance of the award.

 Restraints or requirements imposed by sound business practices, arm’s-length bargaining,

applicable laws and regulations, and terms and conditions of the award.

 Market prices.

 Whether the non-federal entity acted prudently in the circumstances concerning its

responsibilities.

128

Stafford Act § 312 and 2 CFR § 200.406

129

Stafford Act § 312

130

Stafford Act § 312

131

2 CFR § 200.404

Hazard Mitigation Assistance Program and Policy Guide

Part 4. Eligibility and Requirements 93

 Whether the non-federal entity significantly deviated from its established practices and

policies when incurring costs that may have unjustifiably increased the award’s costs.

132

FEMA determines reasonableness by evaluating:

 Whether the skill level and level of effort are necessary to complete the required activity. If

the type of employee or skill level is not appropriate for the specific task, FEMA limits HMA to

a rate based on the appropriate employee type or skill level. For complex activities, staff with

a higher level of technical proficiency and experience may be appropriate.

 Whether the individuals concerned acted with prudence under the circumstances

considering their responsibility to the non-federal entity, its employees, its students or

membership, the public and the federal government.

133

 Whether the applicant complied with procurement requirements (Part 4.M.3). F

EMA generally

considers contract costs reasonable when the non-federal entity adheres to full and open

competition under applicable federal procurement requirements, and the scope of services

or work in the contract and level of effort is consistent with respect to the eligible scope of

work. FEMA evaluates reasonableness when price competition is lacking or when the

selection was non-compliant with the applicable procurement under award requirements

even though there may have been price competition.

 W

hether the non-federal entity selected the lowest responsible bidder based on the selection

criteria. If the non-federal entity selected a contractor with a higher bid than others, it must

substantiate its selection based on the selection criteria set forth in its request for proposal.

FEMA generally considers the non-federal entity’s own labor, equipment and supply costs as

reasonable provided the costs are consistent with the non-federal entity’s policies including but not

limited to pay rates, labor policies and cost schedules used during its normal operations.

The cost or price analysis is one component of documentation that FEMA may review as part of its

evaluation of reasonable costs. If the non-federal entity does not submit a cost or price analysis,

FEMA may evaluate the elements that would have been part of such analysis. The non-federal entity

may need to provide this information if it is not included in the documentation submitted.

FEMA will evaluate whether costs are comparable to the current market price for similar goods or

services in the same geographical area.

134

FEMA makes its determination based on one or more of

the following:

132

2 CFR § 200.404(e)

133

2 CFR § 200.404(d)

134

2 CFR § 200.404(c)

Hazard Mitigation Assistance Program and Policy Guide

Part 4. Eligibility and Requirements 94

 Historical documentation (previous contracts, invoices or other documentation). FEMA may

compare costs to the non-federal entity’s historical costs for similar scope of work or items.

 Average costs in the area.

 Weighted average unit pricing. FEMA may determine the average costs in the area using

weighted average unit prices. These consist of the average costs of historical bid tabulations

and related specifications from competitive bid pricing solicitations respective to the area

and usually includes all factors required to bid on public works projects, such as

performance bonds, bid bonds, overhead and profit, and general conditions. The non-federal

entity or respective state, territorial or regional agency, such as the state’s Department of

Transportation may provide weighted average unit pricing and related specifications for

FEMA’s review.

 Other non-federal entity activity costs. FEMA may compare the costs with other non-federal

entity activities of similar scope of work and similar circumstances.

 Published unit costs from national cost-estimating databases. When using this method,

FEMA confirms that the cost publication is current and the appropriate locality adjustment

factor is applied.

 Industry cost estimating resources. When appropriate local data cannot be developed or

obtained, FEMA uses industry-standard construction cost-estimating resources to prepare an

estimate against which to evaluate the reasonableness of the non-federal entity’s actual

costs. These costing methods include but may not be limited to RSMeans, BNi Costbooks,

Marshall and Swift, and Sweet’s Unit Cost Guide, which are widely accepted in the industry

and available for use nationwide.

 Federal, state or territorial unit costs. When industry-standard construction cost estimating

resources do not provide work items that are appropriate or applicable to the construction

activities required to complete the project, FEMA considers local cost data from other federal

agencies or state or territorial agencies responsible for the construction of similar facilities in

or near the locality.

When a reasonable cost analysis has been conducted and costs appear high for an activity, FEMA

reviews the non-federal entity’s justification in the budget narrative, to determine whether any

additional factors justify the higher cost as a reasonable amount.

The non-federal entity is responsible for providing documentation to demonstrate its claimed costs

are reasonable. Documentation may include, but is not limited to:

 Documentation showing current market price for similar goods or services, such as:

o Historical documentation.

Hazard Mitigation Assistance Program and Policy Guide

Part 4. Eligibility and Requirements 95

o Average costs in the area.

o Published unit costs from national cost estimating databases.

 Documentation supporting necessity of unique services or extraordinary level of effort.

 Documentation supporting challenging circumstances, such as news stories or supply chain

vendor reports.

If FEMA determines any of the costs to be unreasonable based on its evaluation after completing the

evaluation and ensuring that all appropriate costs and factors are included as described above,

FEMA may disallow all or part of the costs by adjusting eligible assistance to an amount it

determines to be reasonable. When determining the reasonable amount, FEMA may use the least-

cost alternative, the lowest bid received by the applicant, or the pricing of another applicant’s

properly procured and selected contractor.

L. Cost Share

Under the HMA programs, the total cost to implement approved mitigation activities is generally

assisted by a combination of federal and non-federal sources. Cost share means the portion of

activity costs not paid by federal assistance.

135

Both the federal and non-federal cost shares must be

for eligible costs used in direct support of the approved activities in the HMA Guide and the award.

Contributions of cash donated or third-party in-kind services, materials or any combination thereof

may be accepted as part of the non-federal cost share.

FEMA administers cost share requirements consistent with 2 CFR § 200.1, 2 CFR § 200.306 and

CFR § 200.434. To meet cost share requirements, the non-federal contributions must be verifiable

from the subrecipient’s records; reasonable, allowable, allocable and necessary under the federal

program; and compliant with all federal requirements and regulations.

In general, HMA

may be used to pay up to 75% of the eligible activity costs.

136

The remaining 25% of

eligible activity costs are derived from non-federal sources. Exceptions to the 75% federal and 25%

non-federal share are as follows:

 H

MGP and HMGP Post Fire: FEMA provides 100% cost share for management costs.

 BRIC:

135

2 CFR § 200.1

136

For HMGP refer to 42 U.S.C. § 5170c(a) and 44 CFR § 206.432(c); for BRIC refer to 42 U.S.C. § 5133(h); for FMA refer

to 42 U.S.C. § 4104c(d) and 44 CFR § 77.4(b)(3)

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Part 4. Eligibility and Requirements 96

o Small impoverished communities may be eligible for up to a 90% federal cost share. For

information about small impoverished communities, refer to Part 10.

o FEMA provides 100% cost share for management costs.

 FMA:

o FEMA may contribute up to 100% federal cost share for severe repetitive loss

structures.

137

o FEMA may contribute up to 90% federal cost share for repetitive loss structures.

For BRIC and FMA, the appropriate year’s NOFO may contain additional information about cost share

availability.

Structures with different federal cost share can be submitted in a single project subapplication. The

overall project federal cost share documented in the cost share section of the project subapplication

must reflect the combined federal cost share of the structures.

For Insular areas, including American Samoa, Guam, the Northern Mariana Islands and the U.S.

Virgin Islands:

138

 FEMA automatically waives the non-federal cost share when the non-federal cost share for

the entire award is less than $200,000 and not an individual subaward.

 Under HMGP, if the non-federal cost share for the entire award is $200,000 or greater, FEMA

ay waive all or part of the cost share; such a waiver is usually consistent with that provide

or PA under the major disaster declaration. If FEMA does not waive the cost share, the

insular area must pay the entire cost-share amount, not only the amount greater than

$200,000.

 Under FMA and BRIC, if the non-federal cost share for the entire award is $200,000 or

greater, FEMA may waive all or part of the non-federal cost share at the request of the

recipient. The recipient may request 100% cost share in its application.

Management costs are any indirect costs, any direct administrative costs, and any other

administrative expenses associated with the administration of HMA awards and subawards.

Management costs are provided under HMGP, HMGP Post Fire, BRIC and FMA.

137

44 CFR § 77.4(b)(1)

138

48 U.S.C. § 1469a

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Part 4. Eligibility and Requirements 97

L.1. Global Match

For HMGP and HMGP Post Fire, global match allows flexibility in which the non-federal cost share

does not need to be 25% for each individual subaward; rather, the non-federal cost share for all the

applicant’s submitted subawards combined must equal 25% of the award. Global match allows the

applicant to use any cost share match that exceeds the minimum requirement (referred to as

overmatch) from certain subawards to alleviate the financial burden on other activities. For more

information on global match, refer to Part 10, Part 10.A.11, and Part 10.B.10

L.2. Federal Assistance Allowed to be Used as Non-Federal Cost Share

In general, the non-federal cost share requirement may not be met with assistance from other

federal agencies; however, some authorizing statutes explicitly allow some federal assistance to be

used as a cost share for other federal grants.

139

For example, the Department of Housing and Urban

Development Community Development Block Grants program and the Department of Defense

Readiness and Environmental Protection Integration program are authorized to allow recipients to

use program funds as non-federal cost share, and these funds can be applied to the HMA non-

federal cost share.

140

Federal assistance that is used to meet a non-federal cost share requirement

must meet the eligibility and compliance requirements of both the other federal source program and

the HMA program.

141

More information on allowable funds for non-federal cost share can be found in

the Hazard Mitigation Assistance Cost Share Guide.

L.3. Increased Cost of Compliance as Non-Federal Cost Share

Increased Cost of Compliance coverage is available to most NFIP policyholders and can be used as

non-federal cost share. To qualify for Increased Cost of Compliance, a community must determine

that a home or business has sustained substantial damage or the structure meets the local

community’s repetitive loss provision. The NFIP Increased Cost of Compliance claim payment from a

flood event may be used to contribute to the non-federal cost share requirements so long as the

claim is made within the timelines allowed by the NFIP. Increased Cost of Compliance payments can

only be used for costs that are eligible for Increased Cost of Compliance benefits, which are

elevation, floodproofing, relocation or demolition (or any combination of these activities). For

example, Increased Cost of Compliance coverage cannot pay for property acquisition but can pay for

structure demolition or relocation. In addition, federal assistance cannot be provided where

Increased Cost of Compliance assistance is available. If the Increased Cost of Compliance payment

exceeds the required non-federal share, the federal assistance award will be reduced to the

difference between the cost of the activity and the Increased Cost of Compliance payment.

139

Section 312 of the Stafford Act, 42 U.S.C. § 5155, 2 CFR § 200.306(b)(5)

140

42 U.S.C. § 5305(a)(9); 10 U.S.C. § 2684(a)(h)

141

Refer to the Community Development Block Grant and Readiness and Environmental Protection Integration program

websites for more information about their specific program requirements.

Hazard Mitigation Assistance Program and Policy Guide

Part 4. Eligibility and Requirements 98

If an Increased Cost of Compliance payment is used as a subapplicant’s non-federal cost share, the

NFIP policyholder must assign that part of the Increased Cost of Compliance benefit that pertains to

the property to the subapplicant. The NFIP policyholder can only assign the Increased Cost of

Compliance benefit to the subapplicant; in no case can the policyholder assign the Increased Cost of

Compliance benefit to another individual. Steps for the assignment of Increased Cost of Compliance

coverage can be found in FEMA P-1080

, Answers to Frequently Asked Questions About Increased

Cost of Compliance (Feb. 2017).

In some cases, individual policyholders can take advantage of federal as

sistance to supplement the

cost of mitigation activities in their community. Policyholders can assign their Increased Cost of

Compliance benefits to their community and enable the community to file a single claim on behalf of

a community mitigation project. FEMA will count the Increased Cost of Compliance claim monies as

non-federal matching assistance in mitigation subapplications because Increased Cost of

Compliance coverage is a direct contract between the policyholder and the insurer. The community

can then use FEMA mitigation assistance to help pay for any additional portion of the cost of

elevation, floodproofing, relocation or demolition that is more than the Increased Cost of Compliance

claim payment. Policyholders and community officials must work closely together at every stage of

this process.

Individual participation in a FEMA-assisted community mitigation project is voluntary and the

community is required to provide mitigation assistance to any property owner whose Increased Cost

of Compliance payment was counted toward the matching assistance.

L.3.1. STEPS FOR THE ASSIGNMENT OF COVERAGE D—INCREASED COST OF COMPLIANCE

COVERAGE

Policyholders should follow these steps for the assignment of Coverage D:

1. The policyholder consents to the assignment of the Increased Cost of Compliance claim

payment.

2. The community official provides the policyholder with an Assignment of Coverage D Form.

3. The policyholder signs the form and provides the signed form to the community official.

4. The community official sends a copy of the completed form, along with the community’s signed

declaration of substantial damage to the NFIP at the following address:

NFIP Bureau and Statistical Agent

8400 Corporate Drive, Suite 350

Landover, MD 20785

5. The NFIP maintains a database of the increased cost of compliance information submitted by the

community. The Bureau then sends the documents to the appropriate Write Your Own company

with instructions. The company will then assign an adjuster.

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Part 4. Eligibility and Requirements 99

6. The assigned adjuster contacts the policyholder to notify them of receipt of the claim and

contacts the local community official to coordinate and help complete the claim.

7. The adjuster receives/reviews the contract for demolition, elevation, relocation or floodproofing

to determine the cost.

8. The adjuster has the community official sign the proof of loss once the claim value has been

determined.

9. The adjuster sends the final report, along with the proof of loss, to the insurance company for

payment.

10. The insurance company issues the check to the community and advises the NFIP of the amount

of the claim payment.

For additional information on increased cost of compliance, visit the FEMA “Increased Cost of

Compliance Coverage” webpage.

Increased Cost of Compliance Resources

 Increased Cost of Compliance Coverage: https://www.fema.gov/floodplain-

management/financial-help/increased-cost-compliance

 FEMA P-1080, Answers to Frequently Asked Questions About Increased Cost of

Compliance: https://www.fema.gov/sites/default/files/2020-

11/fema_p1080_icc_faq_20170817.pdf

M. Additional Requirements

This section presents information on non-discrimination compliance, conflict of interest,

procurements by states and other entities, the Uniform Relocation Assistance and Real Property

Acquisition Policies Act, duplication of programs, and duplication of benefits.

M.1. Non-Discrimination Compliance

Federal civil rights statutes, such as Section 308 of the Stafford Act

142

, Section 504 of the

Rehabilitation Act of 1973

143

, and Title VI of the Civil Rights Act of 1964

144

, along with DHS and

FEMA regulations, require HMA programs to be administered in an equitable and impartial manner,

without discrimination on the basis of race, color, national origin, sex, religion, age, disability, limited

English proficiency, or economic status, as applicable.

142

42 U.S.C. § 5151

143

29 U.S.C. § 794

144

42 U.S.C. § 2000d

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Part 4. Eligibility and Requirements 100

Applicants and subapplicants must ensure that no discrimination is practiced in the implementation

of HMA programs. Applicants and subapplicants must consider fairness, equity and equal access

when prioritizing and selecting subapplications to submit with their grant application. Subapplicants

also must ensure fairness and equal access to property owners and individuals that benefit from

mitigation activities.

M.2. Conflicts of Interest

Conflicts of interest may arise when FEMA makes a federal award. For example, a conflict of interest

may occur in situations where a FEMA employee, officer, or agent; any members of the individual’s

immediate family; or the individual’s partner has a close personal, business, or professional

relationship with an applicant, subapplicant, recipient, subrecipient or employee.

The applicant/recipient and subapplicant/subrecipient must maintain written standards of conduct

covering conflicts of interest and governing the performance of its employees engaged in the

selection, award and administration of subawards and procurement contracts.

145

No employee,

officer or agent may participate in the selection, award, or administration of a subaward or contract

supported by a federal award if that person has a real or apparent conflict of interest.

The recipient must disclose to FEMA in writing any real or potential conflict of interest, as defined by

the federal, state, local or tribal statutes or regulations or their own existing policies, that arise during

the administration of the federal award. Recipients must disclose any real or potential conflicts to

the federal approving official within 15 calendar days of learning of the conflict of interest. Similarly,

subrecipients must disclose any real or potential conflict of interest to the recipient as required by

the recipient’s conflict of interest policies or any applicable state, local or tribal statutes or

regulations. This requirement starts when the application period opens, continues during the entire

period of performance, and ends when the last audit is completed.

M.3. Procurement

All applicants, subapplicants and non-federal entities must follow the requirements under the

procurement regulations.

146

Federal procurement requirements for state and territorial government

agencies are different from those for tribal and local government agencies and private nonprofits.

This section provides information on federal procurement and contracting requirements.

In the case of non-compliance, FEMA applies an appropriate remedy in accordance with its

authorities.

147

Additional procurement resources may be found on the FEMA “Contracting with

Federal Funds for Goods and Services Before, During and After Disasters” webpage.

145

2 CFR § 200.112, 2 CFR § 200.318(c)(1)

146

2 CFR §§ 200.317-327

147

2 CFR § 200.339

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Part 4. Eligibility and Requirements 101

M.3.1. PROCUREMENT REQUIREMENTS FOR STATE AND TERRITORIAL GOVERNMENT

ENTITIES

When procuring property and services under a federal award, state and territorial governments

(acting as either a recipient or subrecipient) must comply with 2 CFR § 200.317, Procurement by

States, which includes:

 F

ollowing the same policies and procedures used for procurements issued from non-federal

assistance.

 Complying with the socioeconomic contracting steps in 2 CFR § 200.321

, dom

estic

preferences for procurement guidelines in 2 CFR § 200.322 and the Environmental

Protection Agency (EPA) guidelines for procurement of recovered materials in 2 CFR §

200.323.

 Including required provisions

148

in all contracts awarded. Some provisions are based on

sound contracting practices while others are required by federal law, executive orders and

regulations.

M.3.2. PROCUREMENT AND CONTRACTING REQUIREMENTS FOR TRIBAL AND LOCAL

GOVERNMENT AGENCIES AND PRIVATE NONPROFITS

Non-state entities such as tribal and local governments and private nonprofits, must comply with 2

CFR §§ 200.318 - 327. A non-state entity must use its own documented procurement procedures

which refelect applicaible state, local, and Tribal laws and regulations provided that the

procurements conform to applicable federal law and regulations.

If a federal requirement is different from

the state, local, tribal or territorial government requirement

or the applicant’s own requirements, the applicant must use the requirement that allows for

compliance at all levels. Additionally, territorial governments should consult their legal counsel when

a project involves a public building or public works facility, as the Buy American Act

149

may apply to

the procurement process.

M.3.2.1. Pre-Procurement Considerations

Tribal and local governments and private nonprofits must:

 Establish or update written procurement procedures that reflect applicable state, local, tribal

or territorial laws and regulations.

150

148

2 CFR § 200.327

149

41 U.S.C. §§ 8301 – 8305

150

2 CFR § 200.318(a)

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Part 4. Eligibility and Requirements 102

 Maintain required written standards of conduct covering conflicts of interest and governing

the performance of employees who engage in the selection, award and administration of

contracts.

151

M.3.2.2. General Federal Procurement Requirements

Federal procurement requirements for tribal and local governments and private nonprofits are found

in 2 CFR §§ 200.318 - 327. The requirements include but are not

limited to:

 Providing full and open competition.

152

Tribal government applicants may provide preference

to Indian organizations or Indian-owned economic enterprises if the non-state, non-federal

entity substantiates that it met the Indian Self-Determination and Education Assistance

Act

153

requirements.

 Ensuring the use of small and minority businesses, women’s business enterprises and labor

surplus area firms when possible by conducting the following steps:

154

1. Place such organizations that are qualified on solicitation lists.

2. Ensure such organizations are solicited whenever they are potential sources.

3. Divide total requirements, when economically feasible, into smaller tasks or quantities.

4. Establish delivery schedules, where the requirement permits, which encourage their

participation.

5. Use the services and assistance, as appropriate, of the Small Business Administration

and the Minority Business Development Agency of the Department of Commerce.

6. Require prime contractor to conduct the above steps if subcontracting.

155

 Performing a cost or price analysis in connection with every procurement action above the

simplified acquisition threshold,

156

including contract modifications. The non-state, non-

federal entity must make independent estimates before receiving bids or proposals.

157

Additionally, the non-state, non-federal entity must negotiate profit as a separate element of

151

2 CFR § 200.318(c)(1)

152

2 CFR § 200.319

153

Public Law 93-638 (Jan. 4, 1975), 25 U.S.C. Chapter 46

154

2 CFR § 200.321

155

Tribal government applicants using the Indian Self-Determination and Education Assistance Act preference do not need

to separately follow the six socioeconomic steps outlined above.

156

According to 2 CFR § 200.1, the simplified acquisition threshold for procurement activities administered under federal

awards is set by the Federal Acquisition Regulation at 48 CFR Part 2, Subpart 2.1.

157

2 CFR § 200.324(a)

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Part 4. Eligibility and Requirements 103

the price when it performs a cost analysis and for each contract in which there is no price

competition.

158

 Evaluating and documenting the contractor’s integrity, compliance with public policy, record

of past performance, and financial and technical resources.

 Ensuring the contractor was not suspended or debarred.

159

 Prohibiting the use of statutorily or administratively imposed state, local or tribal geographic

preferences in evaluating bids or proposals except where expressly encouraged by applicable

federal law.

160

 Excluding contractors that develop or draft specifications, requirements, statements of work,

or invitations for bids or requests for proposals from competing for such procurements to

ensure objective contractor performance and eliminate unfair competitive advantage.

161

 Maintaining records to detail the history of the procurement including but not limited to:

o Rationale for the method of procurement.

o Selection of contract type.

o Contractor selection or rejection.

o The basis for the contract price.

162

M.3.2.3. Procurement Methods

Tribal and local governments and private nonprofits must use one of the following procurement

methods:

 Micro-purchase.

 Small purchase procedure.

 Sealed bid (formal advertising).

 Competitive proposal.

158

2 CFR § 200.324(b)

159

2 CFR § 200.318(h)

160

2 CFR § 200.319(c)

161

2 CFR § 200.319(b)

162

2 CFR § 200.318(i)

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Part 4. Eligibility and Requirements 104

 Non-competitive proposal (sole source).

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M.3.2.4. Non-Competitive Procurement

FEMA may reimburse costs incurred under a contract procured through a non-competitive proposal,

also referred to as sole source contract, only when one or more of the following circumstances apply:

 The aggregate dollar amount of the acquisition of property or services does not exceed the

micro-purchase threshold.

 The item is only available from a single source.

 The public exigency or emergency for the requirement will not permit a delay resulting from

competitive solicitation (this exception to competitive procurement is only for work

specifically related to the circumstance and only while the circumstances exist). Applicants or

subapplicants need to immediately begin the process of competitively procuring similar

goods and services and transition to a competitively procured contract as soon as the

circumstances cease to exist.

 FEMA or the pass-through entity expressly authorizes a non-competitive proposal in response

to a written request from the subapplicant.

 After solicitation of several sources, competition is determined inadequate.

164

For each non-competitive procurement besides micro-purchases non-state or non-federal entities

must identify which of the four circumstances listed above apply and provide all the following

information, documentation and justification:

 A brief description of the product or service being procured, including the expected amount

of the procurement.

 Explanation of why a non-competitive procurement is necessary. If there was a public

exigency or emergency, the justification should explain the specific conditions and

circumstances that clearly illustrate why competitive procurement would cause an

unacceptable delay in addressing the public exigency or emergency. Failure to plan for the

transition to competitive procurement cannot be the basis for continued use of non-

competitive procurement based on public exigency or emergency.

 Length of time the non-competitive contract will be used for the defined scope of work, and

the impact on that scope of work should the non-competitively procured contract not be

available for that amount of time (e.g., how long the applicant anticipates the exigency or

emergency circumstances to continue, how long it would take to identify requirements and

163

2 CFR § 200.320

164

2 CFR § 200.320(c)

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Part 4. Eligibility and Requirements 105

award a contract that complies with all procurement requirements, or how long it would take

another contractor to reach the same level of competency).

 The specific steps taken to determine that the applicant could not have used, or did not use,

full and open competition for the scope of work (e.g., research conducted to determine that

there were limited qualified resources available that could meet the contract provisions).

 Any known conflicts of interest and any efforts that were made to identify potential conflicts

of interest before the non-competitive procurement occurred. If no efforts were made,

explain why.

 Any other justifications.

In the case of non-compliance with non-competitive procurement requirements, FEMA applies an

appropriate remedy in accordance with its authorities.

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M.3.2.5. Federal Emergency Management Agency Review of a Pass-Through Entity’s

Approval of Non-Competitive Procurement

A pass-through entity may approve a subrecipient’s written request to procure a product or service

through a non-competitive proposal method.

166

In cases where a pass-through entity approves a

request to use a non-competitive proposal, the approval must be consistent with all applicable state,

local, and federally recognized tribal laws and regulations, as well as the pass-through entity’s and

subrecipient’s written procurement standards. Additionally, pass-through entities’ and subrecipients’

procurements must continue to comply with the requirements, even in cases where the pass-through

entity approves a request to use non-competitive proposals.

FEMA may review a pass-through entity’s decision to allow a procurement using non-competitive

proposals, such as during the award monitoring process, in response to an audit finding or other

similar circumstances, or for the reasons specified in 2 CFR § 200.325

. During its review, FEMA will

inspect the written procurement records for the transaction, including the rationale for the method of

procurement, selection of contract type, and contractor selection or rejection.

FEMA will not substitute its judgment for that of the pass-

through entity in cases where the pass-

through entity has documented justification for allowing a non-competitive procurement. However,

FEMA will review the documented justification for approving the non-competitive procurement to

ensure it otherwise complies with the requirements of 2 CFR §§ 200.318-327

. FEMA may also

require the pass-through entity to demonstrate that the decision to approve the non-competitive

proposal is consistent with applicable state, local, and federally recognized tribal laws and

165

2 CFR § 200.339

166

2 CFR § 200.320(c)(4)

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Part 4. Eligibility and Requirements 106

regulations, as well as all applicable written procurement standards. FEMA may also assess whether

the costs incurred under the procurement are reasonable.

M.3.3. PROHIBITION ON CERTAIN TELECOMMUNICATIONS AND VIDEO SURVEILLANCE

SERVICES OR EQUIPMENT

According to 2 CFR § 200.216,

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recipients and subrecipients, as well as their contractors and

subcontractors, may not obligate or expend any FEMA award funds to:

 Pr

ocure or obtain any equipment, system or service that uses covered telecommunications

equipment or services as a substantial or essential component of any system or as critical

technology of any system.

 Enter into, extend or renew a contract to procure or obtain equipment, systems or service

that use covered telecommunications equipment or services as a substantial or essential

component of any system, or as critical technology of any system.

 Enter into, extend or renew contracts with entities that use covered telecommunications

equipment or services as a substantial or essential component of any system, or as critical

technology as part of any system.

Covered telecommunications and surveillance equipment are described in Section 889(b)(1) of the

John S. McCain National Defense Authorization Act for Fiscal Year 2019 and 2 CFR § 200.216.

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FEMA recipients and subrecipients are required to include a provision in their contracts explaining

the prohibitions under Section 889(b)(1) of John S. McCain National Defense Authorization Act for

Fiscal Year 2019 and 2 CFR § 200.216. This applies to subcontractors under any new, extended or

renewed contract. Recipients and subrecipients may draft their own provisions that meet these

requirements or use language provided on the FEMA “

Contracting with Federal Funds for Goods and

Services Before, During and After Disasters” webpage.

M.3.4. BUILD AMERICA, BUY AMERICA ACT REQUIREMENTS

The Build America, Buy America Act

169

requires all federal agencies, including FEMA, to ensure that

no federal financial assistance for “infrastructure” projects is provided “unless all of the iron, steel,

manufactured products, and construction materials used in the project are produced in the United

167

According to Section 889(b)(1) of the John S. McCain National Defense Authorization Act for Fiscal Year 2019. On May

10, 2022, FEMA issued Policy #405-143-1, Prohibitions on Expending FEMA Award Funds for Covered Telecommunications

Equipment or Services. For the most updated policy and additional information, visit FEMA’s “Procurement” webpage.

168

Public Law 115-232 (Aug. 13, 2018)

169

Public Law 117-58, Sec. 70901-52

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Part 4. Eligibility and Requirements 107

States.” BRIC and FMA awards are subject to Buy America requirements. HMGP and HMGP Post Fire

are not subject to the Build America, Buy America Act.

170

Awards under FEMA financial assistance programs subject to the Build America, Buy America

Actrequirements, as well as new funding FEMA obligates to existing awards, must comply with the

following domestic preference requirements:

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 All iron and steel used in the project are produced in the United States.

 All manufactured products purchased with FEMA financial assistance must be produced in

the United States.

 All construction materials are manufactured in the United States.

Recipients and subrecipients may request a waiver of the application of the the Build America, Buy

America Act requirements in certain limited circumstances. FEMA may approve a waiver request if it

finds that:

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 Application of the the Build America, Buy America Actrequirements would be inconsistent

with the public interest

 Types of iron, steel, manufactured products, or construction materials are not produced in

the United States in sufficient and reasonably available quantities or of a satisfactory quality;

 The inclusion of iron, steel, manufactured products, or construction materials produced in

the United States will increase the cost of the overall project by more than 25%.

For more information about the applicability of the the Build America, Buy America Actrequirements

and how to submit a waiver, refer to FEMA Interim Policy #207-22-0001 and the FEMA “

'Buy

America' Preference in FEMA Financial Assistance Programs for Infrastructure” webpage.

M.3.5. REQUIRED CONTRACT CLAUSES

Applicants and subapplicants must include the required contract provisions in 2 CFR § 200.327 in

all contracts awarded. Some provisions are based on sound contracting practices while others are

required by federal law, executive orders and regulations.

For more information about required and recommended contract provisions, including samp

language, refer to Contract Provisions Guide: Navigating Appendix II to Part 200 - Contract Provisions

170

Public Law 117-58; Sec. 70912(4)(B)

171

Public Law 117-58; Sec. 70912(2) and Sec. 70914(a)

172

Public Law 117-58; Sec. 70914(b)

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Part 4. Eligibility and Requirements 108

for Non-Federal Entity Contracts Under Federal Awards (fema.gov) and Contracting with Federal

Funds for Goods and Services Before, During and After Disasters webpages.

M.3.6. DOCUMENTATION REQUIREMENTS

The recipient or subrecipient should submit the following to support contract costs claimed (not an

all-inclusive list):

 Procurement policy (required when requested by FEMA or recipient or subrecipient).

 Procurement documents, such as request for proposals, bids, selection process, etc.

(required when requested by FEMA or recipient or subrecipient).

173

 Federal awarding agency or recipient or subrecipient review.

 A cost or price analysis (required for contracts above the simplified acquisition threshold).

 Contracts, change orders and summary of invoices (required).

 Dates worked (to validate that work was completed within the award’s period of

performance).

 Documentation that substantiates monitoring, such as weekly logs.

M.3.7. CONFLICTS OF INTEREST

The non-federal entity must maintain written standards of conduct covering conflicts of interest and

governing the performance of its employees engaged in the selection, award and administration of

contracts.

174

No employee, officer or agent may participate in the selection, award, or administration

of a contract supported by a federal award if that person has a real or apparent conflict of interest.

If the non-federal entity has a parent, affiliate or subsidiary organization (that is not a state, local

government or federally recognized tribe), then the non-federal entity must also maintain written

standards of conduct covering organizational conflicts of interest. Organizational conflicts of interest

occur when the non-federal entity is or appears to be unable to be impartial in conducting a

procurement action involving a related organization because of relationships with a parent company,

affiliate or subsidiary organization.

175

To ensure objective contractor performance and eliminate an unfair competitive advantage,

contractors that develop or draft design plans and specifications, requirements, statements of work

173

2 CFR §§ 200.317 - 327

174

2 CFR § 200.318(c)(1)

175

2 CFR § 200.318(c)(2)

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Part 4. Eligibility and Requirements 109

and invitations for bids or requests for proposals must be excluded from competing for such

procurements as required.

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M.4. Reimbursement for Costs Incurred by Homeowners Contracting to

Perform Mitigation Scope of Work

States and non-federal entities are subject to the procurement requirements addressed in 2 CFR

Part 200. However, in providing financial assistance under the HMA programs, FEMA may approve a

subrecipient’s request to use federal assistance to reimburse individual property owners who

contract for the performance of eligible mitigation work on their own homes.

brecipients may allow property owners to secure contractors to implement the project and then

reimburse the property owner with federal assistance. However, the recipient and subrecipient will

retain their legal obligations for oversight of the assistance under all applicable program regulations,

program guidance, and requirements of 2 CFR Part 200

. Pr

ogram regulations and guidance require

the recipient and subrecipient to properly monitor, report on and account for the use of assistance

with documentation showing costs are reasonable, necessary, allowable and allocable, and at

closeout, all approved projects were completed consistent with award and subaward terms, program

requirements and applicable law.

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M.5. Uniform Relocation Assistance and Real Property Acquisition Policies Act

HMA projects involving acquisition, rehabilitation or demolition may be subject to the requirements

of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (URA).

178

Property owners participating in FEMA-funded property acquisition and structure demolition or

relocation projects are not entitled to relocation benefits because the voluntary program meets URA

exceptions.

179

However, any displaced person as defined by 42 U.S.C. § 4601(6) (such as a

displaced tenant), who is temporarily or permanently displaced from their home or business as a

direct result of a HMA-funded project, is entitled to compensation in accordance with 49 CFR Part

24. Costs incurred to meet URA requirements are eligible and should be included in the

subapplication budget. The URA requirements detailed under the acquisition project type in Part 12

provide additional information. These requirements apply to all project types where acquisition,

rehabilitation or demolition is involved.

M.6. Duplication of Programs

FEMA will not provide assistance for activities for which it determines the more specific authority lies

with another federal agency or program. Other programs and authorities should be examined before

176

2 CFR § 200.319(b)

177

44 CFR §206.433(a), 206.434(c)(5), 206.438(a)(c) and (d), and 206.439; and 2 CFR §§ 200.328 - 200.330, 200.344,

200.403, and 200.405.

178

Public Law 91-646 (Jan. 2, 1971), 42 U.S.C. Chapter 61

179

2 CFR §§ 24.2(a)(9)(ii)(E) or (H) and 2 CFR § 24.101(b)(2)

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Part 4. Eligibility and Requirements 110

applying for HMA. HMA programs are not intended to be used as a substitute for other available

program authorities. Available program authorities may include other FEMA programs and programs

under other federal agencies, such as the EPA, the U.S. Army Corps of Engineers (USACE), and the

Natural Resources Conservation Service. FEMA may disallow or recoup amounts that duplicate other

authorities. For more information about exceptions to duplication of programs prohibitions on USACE

projects, refer to Part 12.B.5.2.3.1

M.6.1. FEDERALLY AUTHORIZED WATER RESOURCES DEVELOPMENT PROJECTS

Section 1210(b) of the Disaster Recovery Reform Act of 2018 creates an exception for HMGP to the

prohibition under HMA that FEMA will not provide financial assistance for activities FEMA has

determined another federal agency has more specific authority to conduct.

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Specifically, section

1210(b) of the Disaster Recovery Reform Act provides that FEMA may use HMGP assistance to fund

the construction of federally authorized water resources development projects that would normally

fall under the primary authority of USACE, as long as those activities are also eligible under HMGP.

For more information, refer to Part 12.B.5.2.3.1

M.7. Duplication of Benefits and Reporting Requirements

HMA cannot duplicate assistance received by or available to applicants or subapplicants from other

sources for the same purpose.

181

If the recipient or subrecipient receives assistance from another

source for the same work that FEMA assisted, FEMA reduces the eligible cost or de-obligates

assistance to prevent a duplication of benefits.

Recipients, subrecipients and individual property owners are responsible for accurately reporting the

availability or receipt of duplicative grants, loans, insurance payments, legal claims, gifts or other

payments pertaining to the property being mitigated using HMA. Reporting should occur at any point

that such information becomes available, including:

 During application development, pre-award and approval.

 During the award period of performance.

 During closeout.

 After award closeout, if duplicative assistance is received later.

Examples of other sources include insurance claims, other assistance programs (including previous

project or planning awards and subawards from other FEMA programs), legal awards or other

benefits associated with properties or damage that are subject to litigation.

180

Division D of Public Law 115-254 (Oct. 5, 2018)

181

Section 312 of the Stafford Act, 42 U.S.C. § 5155

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Duplication of Benefits

Duplication of benefits is used to describe assistance that is from more than one source and

that is used for the same purpose or activity. The purpose may apply to the entire activity or only

part of it.

Duplication of benefits may apply when assistance for the same purpose:

 Has been received.

 Will be received.

 Is reasonably available from another source, such as insurance or legal settlements due to

the property owners.

Because the availability of other sources of mitigation award or loan assistance is subject to

available information and the means of each individual applicant, HMA does not require that

property owners seek assistance from other sources (except for insurance). However, it is the

responsibility of the property owner to report other benefits received, any applications for other

assistance, the availability of insurance proceeds, or the potential for other compensation, such as

compensation from pending legal claims for damage relating to the property. If the property owner

has an insurance policy that could potentially cover mitigation activities (including Increased Cost of

Compliance coverage), FEMA will generally require that the property owner file a claim prior to the

receipt of aid from HMA.

According to the Privacy Act of 1974,

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information regarding other assistance received by

properties in HMA activities may be shared under 5 U.S.C. § 552a(b). U

ses may include sharing with

custodians of property records, such as other federal or other governmental agencies, insurance

companies, or any public or private entity, to ensure the property has not received money that is

duplicative of any possible HMA awards received. When obtaining information from property owners

about other sources of assistance, a Privacy Act statement must be distributed to each owner. For

more information about the process of verifying potential duplication and Privacy Act requirements,

access the

Hazard Mitigation Assistance Tool for Identifying Duplication of Benefits. For a copy of the

Privacy Act statement, refer to Appendix F of that document.

Eligibility and Requirements Resources

 Hazard Mitigation Planning: https://www.fema.gov/emergency-managers/risk-

management/hazard-mitigation-planning

182

Public Law 93-579 (Dec. 31, 1974), 5 U.S.C. § 552a

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Part 4. Eligibility and Requirements 112

 FEMA P-361: Safe Rooms for Tornadoes and Hurricanes: Guidance for Community and

Residential Safe Rooms https://www.fema.gov/sites/default/files/documents/fema_safe-

rooms-for-tornadoes-and-hurricanes_p-361.pdf

 Hazard Mitigation Assistance Cost Share Guide:

https://www.fema.gov/sites/default/files/2020-08/fema_hma_cost-share-guide.pdf

 FEMA P-1080: Answers to Frequently Asked Questions About Increased Cost of

Compliance https://www.fema.gov/sites/default/files/2020-

11/fema_p1080_icc_faq_20170817.pdf

 Increased Cost of Compliance Coverage: https://www.fema.gov/floodplain-

management/financial-help/increased-cost-compliance

 System for Award Management: http://www.sam.gov/SAM/

 Contracting with Federal Funds for Goods and Services Before, During and After Disasters:

https://www.fema.gov/grants/procurement

EHP Resources

 Environmental & Historic Preservation Grant Preparation Resources:

https://www.fema.gov/grants/guidance-tools/environmental-historic/preparation-

resources

 FEMA Directive 108-1: Environmental Planning and Historic Preservation Responsibilities

and Program Requirements https://www.fema.gov/sites/default/files/2020-

07/fema_ehp_requirements_2018.pdf

 National Environmental Policy Act: https://www.fema.gov/emergency-

managers/practitioners/environmental-historic/laws/nepa

 National Historic Preservation Act: https://www.fema.gov/emergency-

managers/practitioners/environmental-historic/laws/nhpa

 Endangered Species Act: https://www.fws.gov/law/endangered-species-act

 Executive Order 11988 on Floodplain Management https://www.archives.gov/federal-

 Executive Order 11990 on the Protection of Wetlands https://www.archives.gov/federal-

 Executive Order 12898 on Federal Actions to Address Environmental Justice in Minority

Populations and Low-Income Populations https://www.archives.gov/files/federal-

For a comprehensive list of EHP resources, refer to the FEMA EHP webpage: Environmental

Planning and Historic Preservation | fema.gov

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Part 5. Cost-Effectiveness 113

Part 5. Cost-Effectiveness

In accordance with authorizing statutes, only cost-effective mitigation measures are eligible for

potential funding from the Federal Emergency Management Agency (FEMA).

183

FEMA has specified

minimum project criteria via regulation and policy, including that applicants must demonstrate

mitigation projects are cost-effective.

184

FEMA developed several methodologies that applicants and subapplicants may use to demonstrate

cost-effectiveness in accordance with Office of Management and Budget (OMB) Circular A-94

Guidelines and Discount Rates for Benefit-Cost Analysis of Federal Programs. FEMA generally

assesses the cost-effectiveness of hazard mitigation projects through a Benefit-Cost Analysis (BCA)—

a quantitative analysis used to assess the cost-effectiveness of a hazard mitigation measure by

comparing the project’s avoided future damage to the costs over the project lifetime. The result is a

Benefit-Cost Ratio (BCR), which is the numerical expression of the cost-effectiveness of a project

calculated as the net present value of total project benefits divided by the net present value of total

project costs.

185

A project is generally considered to be cost-effective when the BCR is 1.0 or greater,

indicating the benefits of a prospective hazard mitigation project are sufficient to justify the costs.

FEMA created the BCA Toolkit

to help applicants perform benefit cost analyses in accordance with

OMB’s guidelines. Through the development of the BCA Toolkit, FEMA created a standardized

methodology that is specific to mitigation activities and provides consistency across applicants and

subapplicants.

In addition to the BCA Toolkit, FEMA provides several streamlined methodologies that applicants and

subapplicants may use to demonstrate cost-effectiveness. While FEMA encourages the use of the

BCA Toolkit, applicants and subapplicants may also use a non-FEMA BCA methodology if pre-

approved by FEMA in writing.

For Building Resilient Infrastructure and Communities (BRIC) and Flood Mitigation Assistance (FMA),

additional information on demonstrating cost-effectiveness may be found in the appropriate year’s

Notice of Funding Opportunity (NOFO).

183

For Hazard Mitigation Grant Program (HMGP), refer to 42 United States Code (U.S.C.) § 5170c; for Building Resilient

Infrastructure and Communities (BRIC), refer to 42 U.S.C. § 5133; for Flood Mitigation Assistance (FMA), refer to 42 U.S.C.

§ 4104c

184

For HMGP, refer to 44 Code of Federal Regulations (CFR) § 206.434; for FMA, refer to 44 CFR Part 77.

185

OMB Circular A-94 defines net present value as the difference between the discounted present value of benefits and

the discounted present value of costs.

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Part 5. Cost-Effectiveness 114

A. Exemptions

Certain activities are exempt from the requirement to demonstrate cost-effectiveness by completing

a BCA. Exempt activities include:

 Management costs.

 Mitigation planning and planning-related activities.

 Any activities claimed under the 5 Percent Initiative (Refer to Part 10

 Codes and standards activities.

 Advance assistance under the Hazard Mitigation Grant Program (HMGP) and Hazard

Mitigation Grant Program Post Fire (HMGP Post Fire).

 Project scoping under BRIC and FMA.

 Partnership activities.

 Technical assistance awards.

 Earthquake early warning systems.

While OMB Circular A-94 describes an exemption for water resources projects (refer to the White

House Council on Environmental Quality

Principles, Requirements and Guidelines for Water and

Land Related Resources Implementation Studies [PR&G] [Dec. 2014]), the cost-effectiveness

requirement in the Hazard Mitigation Assistance (HMA) program authorizing statutes must be met.

The cost-effectiveness determination should be supplemented by consideration of the PR&G criteria

if applicable. Water resources projects may include aquifer recharge, storage and recovery and

storage, flood diversion and storage, and floodplain and stream restoration.

More information about specific activities can be found in Part 11, Part 12 and Part 13. Activities

may be subject to funding limitations to maintain the cost-effectiveness of the Hazard Mitigation

Assistance (HMA) programs.

B. Calculating the Benefit-Cost Ratio

Unless stated otherwise in the HMA Guide or another authoritative source, all subapplications must

demonstrate a BCR of 1.0 or greater. Depending on the project type, applicants must use one or

more of the following methodologies to document cost-effectiveness.

B.1. Streamlined Benefit-Cost Analysis Methodologies

FEMA offers several streamlined methodologies as alternatives to completing the full BCA using the

BCA Toolkit.

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Part 5. Cost-Effectiveness 115

B.1.1. SUBSTANTIALLY DAMAGED STRUCTURES IN A RIVERINE SFHA

The acquisition of structures that are declared substantially damaged (from any hazard) and located

in a riverine Special Flood Hazard Area (SFHA) on an advisory, preliminary, or effective Flood

Insurance Rate Map is considered cost-effective. Substantial damage is defined as damage

sustained by a building whereby the cost of restoring the building to its before-damaged condition

would equal or exceed 50% of the market value of the building before the damage occurred.

186

this methodology is used, the project subapplication must include a certification from the local

floodplain administrator or a certified state/tribal floodplain specialist that identifies and declares

each structure substantially damaged.

B.1.2. PRE-CALCULATED BENEFITS FOR MITIGATION PROJECTS

FEMA calculated several benefit-cost efficiencies to provide pre-calculated cost-effectiveness values.

Using these pre-calculated benefits eliminates the requirement for applicants to conduct a separate

BCA for eligible projects.

FEMA developed pre-calculated benefits for the following project types:

 Acquisitions, elevations, and mitigation reconstruction in the SFHA.

 Acquisitions of repetitive loss and severe repetitive loss structures outside of the SFHA.

 Residential hurricane wind retrofits.

 Non-residential hurricane wind retrofits.

 Residential tornado safe rooms.

 Post-wildfire mitigation (soil stabilization, flood diversion and reforestation).

 Generators for hospitals.

The precalculated benefits are not intended to drive actual project costs or to serve as a detailed

project budget. Individual project budgets must be based on industry standards, vendor estimates or

other acceptable sources. Projects must still meet all other applicable award and subaward

requirements.

Pre-calculated benefits cannot be combined with benefits from a traditional BCR calculated using

the FEMA BCA Toolkit for purposes of aggregation of benefits. The application of excess benefits

from the pre-calculated structures cannot be applied to the structure(s) analyzed using the BCA

Toolkit or other FEMA-approved methodology. If pre-calculated benefits for a project are not greater

than the project costs, the BCA Toolkit can be used to perform BCA.

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44 CFR § 59.1

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Part 5. Cost-Effectiveness 116

Detailed information on using pre-calculated benefits can be found by project type in Part 12.

Additionally, new pre-calculated benefits and updated values for existing benefits can be found on

the FEMA “

Benefit-Cost Analysis” webpage.

C. Calculation of the Benefit-Cost Ratio Using the Benefit-

Cost Analysis Toolkit

FEMA developed the BCA Toolkit to facilitate the process of preparing a BCA. Using the BCA Toolkit

will ensure the calculations are prepared in accordance with OMB Circular A-94 and FEMA’s

standardized methodologies.

The BCA Toolkit consists of modules for a range of major natural hazards and project types. Given

the right data, the BCA Toolkit can analyze nearly any hazard mitigation project type.

The most recent version of the BCA Toolkit, including detailed instructions on how to download and

use the tool, may be found on the FEMA “Benefit-Cost Analysis

” webpage.

Other methods to demonstrate cost-effectiveness may be used when they address an uncorrectable

flaw in the FEMA-approved methodologies or propose a new approach that is unavailable using

current tools. New methodologies may be used only if FEMA approves the methodology before

application submission. The request must provide justification of why the subapplicant cannot use

the standard BCA tools and provide documentation to support the claim.

C.1. Key Elements of the Benefit-Cost Ratio

According to OMB Circular A-94, the BCR is expressed as the net present value of the benefits of the

project divided by the costs. OMB Circular A-94 states that BCAs should count benefits and costs to

society—meaning that the BCA should capture all benefits and costs of the project, not just benefits

or costs accruing to particular entities.

To calculate the BCR, the BCA Toolkit uses hazard and risk data as well as information about the

mitigation project such as project effectiveness. The four key elements of the BCR calculation are:

1. The benefits of the project.

2. The costs of the project.

3. The hazard risk (the likelihood and consequences of the hazard causing damage).

4. The economic factors of the analysis (i.e., discount rate and project useful life).

These four key elements are described in the following sections.

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C.1.1. PROJECT BENEFITS

The benefits of a hazard mitigation project are any future costs or losses that can be avoided by

completing a mitigation project. In other words:

 =    −   

The following “costs before mitigation” should be counted regardless of who pays for them, whether

that be the federal government; state, local, tribal and territorial governments; or the property owner,

and can include the following:

 Physical damage.

 Loss of service/function.

 Injury or death.

 Displacement costs.

 Emergency management costs.

 Maintenance costs.

 National Flood Insurance Program (NFIP) administration costs.

The “costs after mitigation” includes costs after the mitigation project has taken place. For example,

if a home is elevated, it will not be damaged until the floodwaters reach the elevated first floor. Costs

after mitigation are also known as residual damage. All project types have residual damage except

for acquisitions, which demolish a structure and then leave the property as open space in perpetuity.

The costs after mitigation reflect the level of protection that the mitigation measure provides (i.e., a

house elevated to the 1% annual chance flood level or hurricane shutters that provide protection for

up to 120 mile per hour winds).

BCAs should capture all project benefits to the extent feasible, even after the project has already

achieved a BCR greater than 1.0. Capturing all possible benefits provides a more comprehensive

account of a project’s benefits and helps ensure the project remains cost-effective if a cost increase

occurs.

C.1.1.1. Physical Damage

Avoided physical damage is one of the primary categories of benefits in FEMA BCAs. Buildings,

contents, infrastructure, landscaping, vehicles, agricultural assets and equipment can be damaged

by hazard events. This damage has a dollar value (i.e., the cost to repair or replace the damaged

property). The benefits of a mitigation project are the reduction in future damage attributable to a

mitigation project.

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C.1.1.2. Loss of Service/Function

Another major benefit of a hazard mitigation project can be avoided loss of service or function of the

facility. This benefit is only applicable to facilities that provide a service to the public, such as

utilities, emergency operations facilities (i.e., police, fire), government facilities, infrastructure such

as roads and bridges, and educational facilities.

For critical facilities such as police and fire stations and hospitals, the value of services is estimated

based on the service population, impacts to service (e.g., increased distance to the nearest fire

station, reduced number of hospital beds) and the societal benefits of maintaining that facility in the

aftermath of a disaster. For critical and other public facilities such as emergency operations centers,

schools or government buildings, the annual operating budget is used as a proxy to estimate the

value of services.

C.1.1.3. Injury or Death

For some types of hazard mitigation projects, a major benefit may include avoided human injury

and/or loss of life. This benefit is applicable to project types that address hazards having little to no

warning time, protect populations that cannot evacuate (e.g., emergency personnel), or protect

critical facilities that provide life safety services (such as hospitals).

The BCA Toolkit allows for benefits from avoided human injury and/or death for the following project

types:

 Tornado safe rooms.

 Hurricane safe rooms.

 Seismic retrofits.

 Wildfire mitigation.

 Landslide acquisitions.

Injury or death are also considered within the BCA Toolkit methodology for projects mitigating risk to

certain critical facilities (i.e., hospitals, emergency medical services and fire stations) based on

service populations. Subapplicants may also include benefits for avoided injury and/or loss of life for

additional project types, such as extreme temperature, tsunami vertical evacuation structures and

dam retrofits, by including supporting documentation to demonstrate the avoided losses.

C.1.1.4. Displacement Costs

Avoided displacement costs may be counted as a benefit. Displacement costs occur when occupants

of residential, commercial or public buildings are displaced to temporary quarters while damage is

repaired. These costs include rent and other monthly costs, such as furniture rental and utilities, and

one-time costs, such as moving and utility hookup fees.

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C.1.1.5. Emergency Management Costs

Some projects may have the benefit of avoided emergency management costs. Emergency

management costs include a range of disaster response and recovery costs that communities may

incur during and immediately after a disaster. In many disasters, these costs are much smaller than

physical damage or loss of service impacts.

C.1.1.6. Maintenance Costs

Some hazard mitigation projects may reduce long-term maintenance costs for the owner or operating

entity. These benefits may be included in the BCA. For example, if power lines are buried, the utility

company may no longer need to trim the trees surrounding the power lines. However, in some cases,

the maintenance costs for the mitigation measure could increase and should be reflected in the

maintenance cost section of the BCA.

C.1.1.7. National Flood Insurance Program Administration Costs

Properties insured under the NFIP incur administrative fees to run the program. If a property is

acquired and demolished, there is no longer an administrative cost to the government for that

property; it is therefore an avoided cost and may be counted as a benefit in the BCA. Avoided NFIP

administration costs do not have to be calculated; these are standard values that are incorporated

into the BCA Toolkit.

C.1.1.8. Volunteer Labor

Any hazard mitigation project that eliminates or reduces the need for volunteer labor can claim this

benefit.

It must be clearly demonstrated in the application that the proposed project will reduce or eliminate

the future need for the volunteer effort that is being claimed.

C.1.1.9. Social Benefits

Extensive epidemiological research shows there is a causal connection between natural disaster

events and the onset of mental health issues, which can be valued as the cost of mental health

treatment and lost productivity at work. Social benefits capture the avoided costs associated with

mental stress, anxiety and lost wages that disaster survivors would otherwise experience when

displaced from their primary residence.

Only projects that protect residential structures and are intended to keep residents from being

displaced from their primary residence may include social benefits in the BCA. Social benefits do not

apply to projects such as seismic retrofits or residential tornado safe rooms, where the primary

benefits are life-safety protection.

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Part 5. Cost-Effectiveness 120

Where applicable, a project’s BCA may include the precalculated values for social benefits in Table 5.

These values are one-time benefits, meaning they do not occur on an annual basis. Any updates to

these values will be accounted for in the

BCA Toolkit.

Table 5: BCA Social Benefits Values

Social Benefit Value

Mental stress and anxiety $2,443/person

Lost productivity $8,736/person

C.1.1.10. Ecosystem Service Benefits

Ecosystem service benefits are the contributions the project provides to an ecosystem that benefits

the environment and human populations such as air quality, water filtration and recreational space.

These benefits accrue when a parcel’s land use is changed or enhanced by a mitigation activity to

one that provides a higher level of natural benefits. For example, the change from urban land use to

green space because of mitigating a structure within an acquisition/demolition project will mean

improved ecosystem services benefits for water infiltration, habitat, nutrient cycling, climate

regulation and other natural environmental and floodplain functions.

Values for these depend on the post-mitigation land cover category and may be found in Table 6

These benefits apply to any project type that results in an improved or restored natural environment.

Eligible project types include but are not limited to acquisitions; relocations; post-wildfire

revegetation; and floodplain, stream, or coastal restoration. Certain types of projects, such as

vegetation management or bank stabilization, may be eligible for ecosystem services benefits

depending on the project. These benefits occur on an annual basis over the project useful life.

Ecosystem service benefits may only be used when performing a BCA to demonstrate cost-

effectiveness; they cannot be combined with precalculated benefits.

Wildfire mitigation projects may qualify for ecosystem services benefits if they protect an existing

natural area. Applying ecosystem services benefits to wildfire mitigation projects should be evaluated

on a case-by-case basis, as the design of these projects can vary widely. In general, defensible space

and ignition-resistant construction projects are not likely to qualify for ecosystem services benefits. A

wildfire mitigation project may not include ecosystem services benefits if:

 It does not protect at least one contiguous acre of natural space, such as a forest or

grassland.

 It involves the application of chemicals or other unnatural substances.

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Part 5. Cost-Effectiveness 121

Table 6: Ecosystem Services Benefits Values

Land Cover Category Value (2021 U.S. Dollars per acre per year)

Forest $12,589

Urban Green Open Space $15,541

Rural Green Open Space $10,632

Riparian $37,199

Coastal Wetland $8,955

Inland Wetland $8,171

Coral Reefs $7,120

Shellfish Reefs $2,757

Beaches and Dunes $300,649

The land cover category definitions can be found in the FEMA Ecosystem Service Value Updates

report (June 2022). Any updates to values for ecosystem services benefits can be found in the BCA

Toolkit and the FEMA

“Benefit-Cost Analysis” webpage.

C.1.1.11. Unallowable Benefits

In general, the following benefits may not be counted in FEMA BCAs:

 Anything that is subjective or unquantifiable (e.g., ease of implementation or aesthetic value

of project).

 Anything not impacted by the proposed project.

A definitive connection must be made between the project and claimed benefits. This is especially

important when using historical damage in the BCA; the project must reduce or eliminate this

damage to include them.

In addition, OMB Circular A-94 guidelines also do not allow the inclusion of the following benefits:

 Employment or output multipliers intended to measure the secondary effects of government

expenditures on employment and economic output.

 Anything that is considered a transfer payment may not be counted as an avoided cost. A

transfer payment is the reallocation of money by means of an entity (such as the government

or a homeowner) making a payment without goods or services being received in return. For

example:

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Part 5. Cost-Effectiveness 122

o Insurance premiums.

o Government subsidies.

o Fines or penalties, such as Environmental Protection Agency fines.

C.1.2. PROJECT COSTS

The project cost is the denominator in the BCR equation. Any annual maintenance costs associated

with the project are discounted by 7% over the project useful life and added to the total project

cost.

187

The costs captured in the BCA must reflect the total project cost required to complete the mitigation

activity, not just the federal share. Similarly, some subapplicants may not request HMA up to the

available federal cost share. In these cases, the BCA must still use the sum of all required (not just

requested) costs necessary to achieve the hazard mitigation purpose of the project. Management

costs, as defined in this guide, may be excluded from the project cost for the purpose of the BCA.

Costs should be consistent with the project budget. Refer to Part 6.B.3

. Costs of a mitigation project

include (but are not necessarily limited to):

 Construction costs.

 Any other project-related costs, such as title searches, appraisals and permits.

 Maintenance costs specifically related to the project that are necessary to sustain the

mitigation function.

 Any in-kind contributions or match from the recipient or subrecipient.

C.1.3. RISK

Hazard risk is a key factor in the benefit calculation. The Department of Homeland Security defines

risk as “the potential for an unwanted outcome resulting from an incident, event, or occurrence as

determined by its likelihood and the associated consequences.”

188

The BCA Toolkit factors in risk by calculating the likelihood of a hazard event occurring and the

projected impacts of that event. The BCA Toolkit measures the likelihood of an event using

recurrence intervals and calculates different impacts based on the size and severity of the hazard.

187

OMB Circular A-94

188

DHS Risk Lexicon (Sep. 2008)

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Part 5. Cost-Effectiveness 123

The BCA Toolkit weights higher-frequency events more than those that occur less frequently. The

probabilities of future events profoundly affect whether a proposed mitigation project is cost-

effective.

Recurrence intervals are also location specific. The BCA Toolkit requires location information to

assess risk. For example, the Midwest has a higher probability of tornadoes than the Northeast or

the Pacific Northwest because that area experiences more tornadoes on an annual basis.

Additionally, risk is not always uniform across hazards within a single event. A hurricane might have

windspeeds with a 200-year recurrence interval, but the storm surge might have only a 25-year

recurrence interval in the same location.

Calculating risk also considers the potential consequences (or impacts) of a hazard event, which can

vary based on facility type. For example, the estimated flood damage for a one-story building will

typically be a larger proportion of the total building value than that of a multistory building or a

building with a closed versus open foundation. Likewise, estimated deaths and injuries from a

tornado are greater for individuals in mobile homes than in concrete structures. Hazard risk data can

be found in the applicant’s or subapplicant’s hazard mitigation plan, including data on previous

occurrences, probability (reoccurrence intervals) and potential consequences (impacts).

C.1.4. ECONOMIC FACTORS

C.1.4.1. Discount Rate

Future benefits must be reduced because benefits that are experienced sooner are worth more. The

rate at which future benefits are reduced is called the discount rate.

FEMA must use a 7% discount rate in its BCAs for hazard mitigation projects.

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The discount rate is

built into the calculations in the BCA Toolkit and cannot be changed.

C.1.4.2. Project Useful Life

The project useful life is the estimated amount of time the project is expected to remain effective,

assuming proper maintenance. In the BCA, the project useful life is the period during which the

benefits are accumulated and then discounted to net present value. For example, a project with a

30-year life is assumed, on average, to produce a stream of benefits each year for 30 years. Each

year’s benefit is discounted to net present value and the sum of these annual benefits is the total

benefits of the project.

More information may be found on the FEMA “Benefit-Cost Analysis

” webpage.

189

OMB Circular A-94

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Part 5. Cost-Effectiveness 124

C.1.5. ANNUALIZED BENEFITS AND COSTS

Because of the unpredictable nature of hazard events, the BCA Toolkit estimates the benefits of a

hazard mitigation project on an annual basis rather than in specific years. The BCA Toolkit uses

hazard frequency, damage data and project effectiveness to estimate annualized benefits.

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C.1.6. DOCUMENTATION REQUIREMENTS

Guidance on appropriate documentation for the data elements in the BCA Toolkit can be found on

the FEMA “Benefit-Cost Analysis”

webpage. If FEMA standard values are used when completing the

BCA Toolkit inputs, no additional documentation is required. If non-standard values are used

documentation is required. Documentation must be accurate and sufficiently detailed for the

analysis to be validated. FEMA recommends that supporting documentation be obtained from

credible sources, such as a Flood Insurance Study or a signed and stamped engineering study.

C.1.7. SUBAPPLICATION SUBMISSION REQUIREMENTS

When using the BCA Toolkit to demonstrate cost-effectiveness, FEMA requires the submission of:

 The exported BCA file or Excel template file for the project.

 The BCA report pdf file for the project.

 All supporting documentation for the values entered in the BCA Toolkit.

For HMGP and HMGP Post Fire, the BCA documentation is required prior to FEMA approval. For BRIC

and FMA, the BCA documentation is required at the time of subapplication submission unless

otherwise specific in the NOFO.

If BCA file submission requirements change due to a version or platform update, the information will

be reflected on the FEMA “Benefit-Cost Analysis”

webpage.

D. Other Considerations

D.1. Aggregation of Benefits

Aggregation of benefits is when the benefits and costs of two or more individual structures or project

components (referred to as mitigation actions in the BCA Toolkit) are strategically combined to create

an average or composite BCR for a mitigation project overall. This approach allows individual

structures or project components that are not cost-effective on a stand-alone basis to borrow excess

benefits from cost-effective project elements or structures. Aggregation of benefits aims for optimal

risk reduction while retaining project cost-effectiveness with an average BCR greater than or equal to

1.0.

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Part 5. Cost-Effectiveness 125

An evaluation of the cost-effectiveness of a project should include all mitigation activities contained

in the project application’s scope of work. This may include various activities in multiple jurisdictions.

It may also include combining benefits derived from mitigation activities associated with multiple

hazards, such as wind and flood, if part of the same project. Aggregation of benefits must occur

within the same HMA program and within a single subapplication (i.e., a subapplication is typically

composed of multiple properties or sites and/or project types).

It is appropriate to aggregate benefits when the projects and groups within them are related in some

aspect, and the project’s BCR will be greater than or equal to 1.0 because of aggregating benefits.

Based on these criteria, many HMA projects could gain an advantage through the aggregation of

benefits, although some project types, such as the aggregation of benefits in property acquisition

and structure demolition projects, present more obvious opportunities than others. If the overall BCR

of an aggregated project is greater than or equal to 1.0, the project is deemed cost-effective and

meets the regulatory requirements under the Robert T. Stafford Disaster Relief and Emergency

Assistance Act.

190

The purpose of the aggregation of benefits is to increase the number of cost-effective mitigation

projects to maximize risk reduction in hazard-vulnerable communities. HMA encourages the

consideration of aggregating benefits, as aggregation allows applicants and subapplicants to

mitigate a greater number of structures or a larger area of the community than if each structure or

project component were analyzed separately. In other words, aggregation of benefits expands

opportunities for cost-effective mitigation by efficiently distributing all existing project benefits and

not leaving potential benefits on the table.

Aggregation of benefits can be implemented across jurisdictional boundaries such as county lines,

state lines and watershed boundaries. Aggregation of benefits can also take place across different

project types, such as aggregation of benefits for a project combining structure elevation and wind

retrofit, or flood and seismic retrofits. While aggregation of benefits across multiple hazards is less

common, this form of aggregation is allowable if the BCA is deemed cost-effective. Applicants and

subapplicants must maintain complete documentation for each structure included in the

aggregation.

While undertaking aggregation of benefits is highly encouraged, there is a potential for increased

administrative oversight and project management as projects increase in complexity and geographic

extent. This complexity may be further increased when working across jurisdictional boundaries or

project types.

Applicants and subapplicants may use project scoping/advance assistance, management costs or

technical assistance funding to help address administrative and project management challenges.

190

Public Law 100-707 (Nov. 23, 1988); amending the Disaster Relief Act of 1974, Public Law 93-288 (May 22, 1974)

Hazard Mitigation Assistance Program and Policy Guide

Part 5. Cost-Effectiveness 126

The FEMA BCA Helpline can also provide support and guidance with questions regarding the

aggregation of benefits.

D.1.1. AGGREGATION OF PRE-CALCULATED BENEFITS – MULTIPLE PROPERTIES WITHIN A

SUBAPPLICATION

Subapplications may include multiple properties that use different approaches to demonstrating

cost-effectiveness. Using a hybrid approach, the subapplicant may choose a subset of properties to

which to apply pre-calculated benefits. The average cost of these properties must be below the

designated pre-calculated benefit amount. The subapplicant would then analyze the remaining

properties using the BCA Toolkit

(or other FEMA-approved methodology), and the project costs and

benefits for this subset would be aggregated to develop a composite BCR, which must be greater

than or equal to 1.0. The application of excess benefits from the pre-calculated structures cannot be

applied to the structure(s) being analyzed with the BCA Toolkit or any other FEMA-approved method.

D.2. Phased Projects

Phased projects are allowed under the HMGP, HMGP Post Fire, BRIC and FMA programs, and require

a BCA for Phase I and Phase II. The purpose of phased projects is to provide assistance for design,

engineering, environmental and historic preservation (EHP), or feasibility studies or analysis on a

proposed project during Phase I. For this reason, BCAs for the Phase I subapplications should be

based on the best available data and include a detailed explanation of any assumptions that went

into the BCA, including any assumptions about after-mitigation (residual) damage. Phase I approval

does not guarantee approval of future phases. After Phase I is completed, FEMA will complete an

eligibility review that includes a cost-effectiveness determination to evaluate if the project meets all

eligibility requirements to proceed to Phase II. BCAs should incorporate data from the Phase I

deliverables/analysis and must reflect current site conditions and all revisions to scope and cost

made to the project following Phase I analysis.

Cost-Effectiveness Resources

 OMB Circular A-94: Guidelines and Discount Rates for Benefit-Cost Analysis of Federal

Programs: https://www.whitehouse.gov/wp-

content/uploads/legacy_drupal_files/omb/circulars/A94/a094.pdf

 FEMA BCA: https://www.fema.gov/grants/guidance-tools/benefit-cost-analysis

 FEMA BCA Toolkit: https://www.fema.gov/grants/guidance-tools/benefit-cost-analysis/full-

bca#download

Hazard Mitigation Assistance Program and Policy Guide

Part 6. Application and Submission Information 127

Part 6. Application and Submission

Information

This part provides information to HMA recipients and subrecipients about application requirements

and the process for submitting applications. The following information is intended for guidance only

and is not a request for information.

A. General Application and Subapplication Principles

For a subapplication to be eligible for Hazard Mitigation Assistance (HMA), the subapplicant and the

applicant must provide the appropriate documentation, in the correct format, to establish eligibility.

Eligibility is discussed in detail in Part 4

and subapplication considerations and project scoping are

discussed in Part 3.

Subapplication packages are available from eligible applicants. The applicant selects and prioritizes

subapplications and submits them to FEMA. HMA applications are processed through an electronic

application system. The system generally encompasses the entire application process and provides

the means to electronically create, review and submit an assistance application in a digital format.

The applicant is required to use the electronic application system.

For the Hazard Mitigation Grant Program (HMGP) and Hazard Mitigation Grant Program Post Fire

(HMGP Post Fire), the applicant may submit a single application representing all subapplications, or

they may submit multiple applications. When multiple subapplications are submitted, they should be

ranked in priority order. Application instructions for Building Resilient Infrastructure and

Communities (BRIC) and Flood Mitigation Assistance (FMA) may be found in the appropriate year’s

Notice of Funding Opportunity (NOFO).

Applications and subapplications submitted to FEMA must meet all program eligibility criteria

outlined in the law, regulations and the HMA Guide. FEMA does not accept incomplete or placeholder

applications or subapplications. Incomplete applications or subapplications delay award or subaward

approval if they do not contain sufficient information for FEMA to make a program eligibility

determination.

If the subapplication is deficient, the applicant may revise or augment the subapplication in

consultation with the subapplicant. Applicants must certify that they have evaluated the activities

included in each subapplication and that activities will be implemented in accordance with

applicable activity-type and program requirements.

Before forwarding subapplications to FEMA, applicants must review subapplications to document

that:

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Part 6. Application and Submission Information 128

 All program-specific and activity-specific requirements have been met and are documented,

as appropriate.

 The subapplicant has documented its ability to manage the subaward assistance.

 The subapplicant has documented its ability to complete the mitigation activity in the time

specified.

 Non-federal cost share assistance is available and will remain available for the total duration

of the subaward’s period of performance.

 The maintenance requirements have been sufficiently identified, and the subapplicant or

another authorized entity has accepted the maintenance responsibility.

 The underlying cost-effectiveness data are accurate and complete.

 The application includes necessary Office of Management and Budget (OMB)-approved

forms, where required.

FEMA will only consider applications and subapplications submitted to a specific HMA program. If an

applicant would like to have a subapplication considered under multiple HMA programs, the

applicant must submit that subapplication to each HMA program separately. If selected, applications

will only be funded under one program.

For more information, applicants should contact the appropriate FEMA regional office. For

information on FEMA contacts, refer to Part 15

B. Application Package and Submission

B.1. Grants.gov Registration

Before applying for HMA, applicants and subapplicants must complete preliminary steps required to

receive any federal funding. Applicants and subapplicants must complete a grants.gov registration

(including registering with the System for Award Management) by visiting the

grants.gov registration

website. Applicants and subapplicants with existing registrations should verify their information is

current and correct. Registration should remain current through the application period and period of

performance.

B.2. Electronic Grants Management Systems

The FEMA Grants Management Modernization Initiative is modernizing and consolidating FEMA’s

grants management systems by moving away from using multiple systems (e.g., National Emergency

Management Information System [commonly known as NEMIS] and eGrants). The previous grants

systems’ functionalities and business processes will continue to be updated and developed in the

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Part 6. Application and Submission Information 129

new system, FEMA Grants Outcomes (FEMA GO), and the legacy systems will be decommissioned

once FEMA GO is at full operating status across all of FEMA’s grant programs.

FEMA GO allows users to apply, track and manage all disaster and non-disaster grants by performing

all business functions that fall within all five phases of the grants management lifecycle: pre-award,

award, post-award, closeout, and post-closeout. It also improves oversight and monitoring. For more

information, refer to the “FEMA Grants Outcomes (FEMA GO)

” webpage. To resolve any technical

issues, contact the FEMA GO Help Desk at 1-877-585-3242 or femago@fema.dhs.gov.

B.3. Application Documentation and Assurance Forms

For FEMA to approve a subapplication, the subapplicant and the applicant must submit the

necessary documentation. If an application lacks the eligibility information required, FEMA cannot

determine eligibility and approve the application. If information is lacking, FEMA may request

additional information during the review process.

The following documentation, which is needed to demonstrate eligibility, should be contained in the

subapplication and application. Criteria may vary depending on the proposed activity, but

applications/subapplications generally include all the elements below:

 An eligible applicant and subapplicant.

 Identification of mitigation activity.

 Consistency with FEMA-approved mitigation plans.

191

 A scoping narrative that describes the proposed activities and their outcomes and contains

the following:

o Detailed scope of work that establishes the desired level of protection and/or risk

reduction and describes the steps to complete the mitigation activity.

o Work schedule demonstrating that the activity will be completed within the period of

performance for the applicable program (refer to Part 8.G

o Budget that supports the scope of work, including the schedule, and reflects the total

activity cost.

o Cost share information that clearly identifies the source of the non-federal cost share and

establishes that the non-federal cost share meets program eligibility requirements.

o Cost-effectiveness information (refer to exceptions in Part 5

191

44 Code of Federal Regulations (CFR) § 206.434(c)(1)

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Part 6. Application and Submission Information 130

o Feasibility and effectiveness information (mitigation project types only).

o Environmental and historic preservation (EHP) compliance documentation as required by

EHP guidance (refer to the FEMA “

Environmental and Historic Preservation Grant

Preparation Resources” webpage for the EHP Compliance Checklist).

 SF-424 Family of Forms, as applicable:

o Application for Federal Assistance (SF-424).

o Budget Information for Non-Construction Programs (SF-424A).

o Assurances for Non-Construction Programs (SF-424B).

o Budget Information for Construction Programs (SF-424C).

o Assurances for Construction Programs (SF-424D).

 SF-LLL, “Disclosure of Lobbying Activities.”

 Additional documentation, as required by FEMA.

Recipients are required to use FEMA’s electronic application systems as indicated by the guidance or

program NOFO. For HMGP, alternative methods may be used if they are approved by FEMA in the

recipient’s HMGP Administrative Plan.

The above information, collections and forms have been incorporated into FEMA’s electronic

application systems. FEMA reviews forms as often as required by OMB or more frequently if program

statutes or regulations require updates. FEMA will publish updated forms on fema.gov

and in

electronic application systems.

B.4. Other Required Content

Supporting documentation that cannot be electronically attached to the application (e.g., engineering

drawings, photographs, maps) must be submitted to the appropriate FEMA regional office. The entire

application and all supporting documentation must be received by the appropriate FEMA regional

office no later than the application deadline.

If a subapplicant does not use the electronic application system, the applicant must enter the paper

subapplication(s) into the system on the subapplicant’s behalf prior to the application deadline.

B.5. Intergovernmental Review

Executive Order (EO) 12372 on Intergovernmental Review of Federal Programs (July 14, 1982)

fosters intergovernmental partnership and strengthens federalism by relying on state and local

processes for the coordination and review of proposed federal financial assistance and direct federal

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development. The executive order allows each state to designate an entity to perform this function. If

required by state or local law, the applicant must follow the procedures outlined in the state or local

intergovernmental review.

Applicants may need to allow additional time for the intergovernmental review process. If an

applicant has chosen not to participate in the intergovernmental review process, the application may

be sent directly to FEMA.

Applicants should contact the state single point of contact to determine whether the application is

subject to the state intergovernmental review process. After confirming the program’s

intergovernmental review eligibility, the applicant must indicate if the application is subject to review

on SF-424

, Application for Federal Assistance.

For more information about intergovernmental review, refer to 44 Code of Federal Regulations (CFR)

Part 4.

B.6. Application Submission

Submission dates and times generally vary by program. More details are outlined in the sections

below.

B.6.1. HAZARD MITIGATION GRANT PROGRAM APPLICATION SUBMISSION

HMGP submission deadlines for applications are established by FEMA based on the major disaster

declaration date. The recipient should submit all subapplications within 12 months of the date of the

major disaster declaration.

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Subapplications must include all costs for the proposed mitigation

activity including subrecipient management costs.

The recipient may submit a written request to extend the application period if the application period

has not yet expired. The recipient must include a justification in its request. The regional

administrator may extend the application submission timeline in 30- to 90-day increments (not to

exceed a total extension of 180 calendar days) if extraordinary conditions occur.

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FEMA encourages recipients to submit subapplications in excess of available assistance, as

subapplications must be submitted within the application period to be considered for assistance.

The excess subapplications can be considered after the application period has closed (and the

period of performance is open) when:

 FEMA increases the HMGP ceiling.

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44 CFR § 206.436(d)

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44 CFR § 206.436(e)

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 Other subapplications are found ineligible or are withdrawn.

 There are cost underruns after the closeout of approved subapplications.

Subapplications submitted in excess of available assistance should also include associated

management costs, as management costs requests must also be submitted within the application

period.

FEMA may extend the application period beyond 180 calendar days based on meeting the criteria of

Section 301 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (Stafford Act).

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Section 301 of the Stafford Act provides relief for the rare and extraordinary circumstance when the

magnitude of the event for which the extension is requested prevents the recipient from meeting

program administrative requirements. These requests will be considered on a case-by-case basis. At

a minimum, the request must describe the conditions that preclude the recipient from meeting the

administrative requirements and must include a summary of current status, planned actions to meet

the extension, and any resources that may be required.

The FEMA region submits the request and its recommendation to the Mitigation Directorate for final

action. If the application deadline occurs while FEMA is reviewing a request, this will not preclude

FEMA from granting the extension. For more information on HMGP, refer to Part 10

B.6.2. HAZARD MITIGATION GRANT PROGRAM POST FIRE APPLICATION SUBMISSION

States, federally recognized tribes and territories that are affected by fires and receive a Fire

Management Assistance Grant (FMAG) declaration are eligible to apply for HMGP Post Fire. The

application period opens with the state or territory’s first FMAG declaration of the fiscal year and

closes six months after the end of that fiscal year. The regional administrator may grant up to two

90-day extensions. Additional extensions must be requested from the region and approved by the

deputy associate administrator for mitigation. FEMA will send a formal assistance notification letter

to eligible applicants with the first and each subsequent FMAG declaration.

B.6.3. BUILDING RESILIENT INFRASTRUCTURE AND COMMUNITIES PROGRAM AND FLOOD

MITIGATION ASSISTANCE APPLICATION SUBMISSION

Application submission due dates and times are noted in the NOFO posted on grants.gov.

Subapplicants should consult the official designated point of contact for more information regarding

the application process and deadlines.

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Public Law 100-707 (Nov. 23, 1988); amending the Disaster Relief Act of 1974, Public Law 93-288 (May 22, 1974); 42

United States Code (U.S.C.) § 5141

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C. Scoping Narrative: Scope of Work, Schedule and

Budget

Each subapplication must include a scoping narrative, which is a description of the proposed

activities and anticipated outcomes, as a means for FEMA to determine whether the activities are

eligible, whether the applicant can complete the activities within the period of performance and

whether the proposed costs are reasonable.

The scoping narrative stipulates the deliverables, identifies the tasks required to complete the

proposed activity, and defines the tasks to be accomplished in clear, concise and meaningful terms.

It typically consists of the scope of work, schedule and budget. All activities must be identified in the

scoping narrative prior to the close of the application period. The scoping narrative becomes part of

the conditions of the award.

C.1. Scope of Work

The following components may be included in the scope of work. Required information may vary

between construction and non-construction activities.

C.1.1. INTRODUCTORY STATEMENT

The scope of work starts with a short statement that describes the proposed activity and what will be

accomplished by the end of the period of performance.

C.1.2. ACTIVITIES DESCRIPTION

The scope of work describes the proposed approach, outcomes and level of effort, including key

milestones and schedule, and each activity’s relationship to the budget. The description explains

how the outcome will be reached and identifies the responsible party for each task.

Other considerations that should be addressed in the activities description:

 Geographic area(s) description and location: Provide geographic information about the

mitigation activity being scoped. The description of the geographic area(s) may vary based on

the mitigation activity proposed and may be site specific (i.e., address and latitude/longitude

to the nearest sixth decimal place) or include a description of the general area served by the

proposed activity. Enter geospatial coordinates into the location section of the

subapplication.

 Hazard source(s): The hazard source(s) refers to the hazard type(s) that will be mitigated by

the mitigation activity being scoped. Identify the hazard type(s) that will be mitigated by the

mitigation activity being scoped.

 Population affected: Identify the percentage of the population that will be affected by the

proposed project. The number of people who will benefit from the proposed activity should

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Part 6. Application and Submission Information 134

be known for the scope of work. Divide this number by the total population to determine the

percentage.

 Need for the proposed project: Describe past event(s) and damage history or risk

assessment, if applicable. Explain how the proposed project will mitigate such damage or

risk.

 Describe how the mitigation activity will be completed: Explain the process that the

subapplicant will follow to complete the mitigation activity. Describe the proposed activities,

including the desired level of protection and/or risk reduction, and define tasks to be

accomplished. The scope of work should include key milestones. Explain who will complete

the work. Include information about the procurement process that the subapplicant will

follow, if applicable. Explain the proposed outcomes or deliverables. Proposed conceptual

designs must be provided either through an identified industry standard or through project

plans and specifications.

For non-construction activities, describe existing operations and what gaps the mitigation

activity is expected to address. For construction projects, describe the project site and

conditions. If retrofit projects are proposed, describe how the project will tie into existing

structures or facilities.

 Technical feasibility and effectiveness (for construction subapplications): Technical feasibility

refers to the extent that the completed project will mitigate damage and losses as claimed in

the subapplication. Demonstrating technical feasibility often requires providing technical

documentation, which requires consultation with design professionals such as professional

engineers and licensed architects. Technical documentation may be attached to the

subapplication.

o Engineering design documentation demonstrates how the proposed project will reduce

risk after it is completed. Documentation may include preliminary schematic or

engineering drawings, a clear explanation of design parameters that will be followed, and

the level of protection. Any engineering practices or best practices proposed in the design

should be explained.

o For certain hazard types, FEMA developed design standards that must be followed for a

project to be considered eligible.

o Technical feasibility should explain any required building codes or construction codes

and standards.

 Describe who will manage the mitigation activity: Explain how the mitigation activity will be

managed and who is responsible for completing the project. Explain whether existing or hired

staff will be used.

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 Project alternatives: For construction projects, multiple mitigation project alternatives are

required as part of the subapplication. Indicate at least three alternative actions:

o No action alternative and its consequences.

o Alternative that was selected and why.

o Alternative(s) that was considered but not selected and why.

The selected action alternative should pertain to the project proposed in the subapplication.

Explain why it is the most practical, effective and environmentally sound alternative.

 Long-term maintenance: Long-term maintenance helps to ensure that a mitigation project

will remain effective at reducing risk beyond its initial construction and into the future.

Certain types of projects will require an operations and maintenance plan. Name the entity

that will perform the long-term maintenance and provide a schedule and cost information.

Information on maintenance costs is likely to be contained in documentation used in the

Benefit-Cost Analysis.

 Alignment with hazard mitigation plan: Explain how the mitigation activity is consistent with

the approved local or tribal mitigation plan.

 Management costs to support grants management activities: Describe whether the

subapplicant will manage the subaward with internal staff or intends to hire a

contractor/consultant to manage the effort. This item refers to the oversight of the subaward

and not to the oversight of the project construction. For more information, refer to

Part 13.

 Deviations from standard procedures: Deviations from standard procedures, methods,

techniques, and technical provisions of the applicable codes or best practices must be

thoroughly explained and documented to determine eligibility and feasibility.

 Mitigation activity components: Activity-specific guidance is provided in Part 11, Part 12 and

Part 13. Applicants should review the guidance to determine what elements should be

addressed in the scope of work narrative.

 Past assistance description: The description should summarize past assistance provided to

develop subapplication and activity work plans and specifications (such as project

scoping/advance assistance).

C.1.3. PERSONNEL

The scope of work narrative identifies proposed staff and personnel requirements, describes

relevant experience in managing proposed activities of federal awards, and identifies planned use of

contractors and consultants.

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C.1.4. TASK MANAGEMENT

The scope of work narrative describes the methods the subapplicant will use to manage the tasks

and contractors as well as to monitor and report on progress, including proposed accountability

measures.

C.1.5. RANKING FACTORS

The scope of work explains how the activities will address the goals and objectives or ranking factors

of the relevant HMA program. For BRIC and FMA, FEMA will identify assistance priorities in the NOFO

announcement. For HMGP and HMGP Post Fire, the recipient may identify assistance priorities.

C.2. Schedule

The schedule includes all tasks identified in the scope of work and the relationship of each activity

for the budget. The schedule identifies major milestones with target dates for meeting each

milestone, including anticipated quarterly usage of federal assistance. Proposed schedules must not

exceed the period of performance for the award. The applicant and subapplicant must provide

sufficient detail so that FEMA can determine whether the proposed activities can be accomplished

within the period of performance.

The schedule should specify the duration of each process component required to complete the

project. Although the components’ occurrences are not necessarily sequential and activities may be

carried out concurrently, the total timeline cannot exceed the period of performance.

C.3. Budget

The budget should match the proposed level of effort from the scope of work and work schedule.

All cost elements must match tasks and provide sufficient detail for FEMA to determine whether the

application is eligible. The budget should include consideration regarding cost share, pre-award

costs, closeout, format and contingency costs. Note that ineligible formats, such as lump sum

estimates, are not eligible and will not be accepted.

Budgets must include cost item categories such as personnel (labor) and fringe benefits, travel,

equipment, supplies (materials), contractual, construction, other pre-award costs, contingencies,

program income and management costs. The budget should be supported with a budget narrative

and documentation to support the basis of the estimate and substantiate that the budget is

reasonable. Costs must be in accordance with applicable cost principles.

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The budget is essential for understanding if the requested costs are allowable (allocable, necessary

and reasonable).

195

2 CFR Part 200, Subpart E.

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Part 6. Application and Submission Information 137

C.3.1. BUDGET DOCUMENTATION

The budget documentation should indicate the method(s) used to determine the mitigation activity

costs (e.g., the estimate was prepared by a consultant, previous assistance was used to inform the

estimate).

Costs must be associated to each applicable cost category(s). All costs must be detailed and not

contain lump sums. The budget must include a line-item breakdown of costs consistent with all

elements described in the scope of work and schedule information.

Subapplicants should provide a budget narrative with explanations, justifications and line-item

details of the costs. The budget narrative should explain how costs were derived and include details

not in the line items.

The budget generally includes:

 Personnel (labor) and fringe: The number of personnel, number of hours per quarter, average

pay rate and fringe benefit rates.

 Travel: A breakdown of travel costs, such as the type of transportation, lodging, mileage, per

diem rates and estimated description of travel needs. Describe the travel involved and its

purpose and explain how the proposed travel is necessary for the activity. If travel details are

unknown, explain the basis for proposed costs. Lump-sums will not be accepted.

 Equipment: A list of equipment and the intended use of the equipment.

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Provide a lease

versus purchase analysis for each item with a value greater than the recipient’s or

subrecipient’s capitalization level or $5,000, whichever is more restrictive.

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Provide a copy

of each rental agreement and pricing.

 Supplies/materials: A unit cost estimate for each major component or element.

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 Contractual support: The estimate must be supported by a method of selection (e.g.,

competitive, sole source with justification, sealed bids, small purchase or micro-purchase),

request for proposal/scope of work, period of performance, criteria for measuring

accountability, bid documents or contract. If bids have not been received, the

applicant/subapplicant may submit an independent cost estimate.

 Construction: The estimate should include administrative and legal expenses; land, structure,

right-of-way and appraisals; relocation expenses and payments; architectural and

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Refer to 2 CFR § 200.1 for the definition of equipment.

197

2 CFR § 200.318(d)

198

Refer to 2 CFR § 200.1 for the definition of supplies.

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Part 6. Application and Submission Information 138

engineering fees; inspection fees; site work; demolition and removal; and other construction

costs.

 Other: Information in narrative form on how costs were identified.

 Pre-award: All pre-award costs must be noted in separate line items—including the date the

cost was incurred and a narrative description of the task completed. For more information

regarding pre-award costs, refer to

Part 3.

 Contingencies: An allowance in the total budget to cover situations that cannot be fully

defined when the budget is prepared but that will likely result in additional eligible costs. If

contingency costs are requested, include them as a line item in the budget section of a

subapplication. As with other line items in the budget, the subapplicant should justify the

contingency estimate based on the nature of the proposed activity. For more information

regarding contingencies, refer to

Part 8.

 Program income: Anticipated program income must be identified in the budget.

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 Management costs: Direct administrative and indirect costs are only eligible as management

costs.

Subrecipients must identify management costs in the budget as a separate line item,

supported by a schedule and narrative describing personnel and fringe benefits, travel,

equipment, supplies, contractual, indirect costs and other management costs expenses.

 Strategic funds management: For activities greater than or equal to $1 million, strategic

funds management or incremental assistance applies. For details on strategic funds

management, refer to

Part 8. Both the activity and management costs are subject to

strategic funds management requirements. The applicant or subapplicant must develop their

financial plan along with the work schedule for the mitigation activity by budget (or fiscal)

year and include a roll-up of all budget years. The schedule and applicable budget year

budget should support incremental obligations as each activity milestone is reached. If the

applicant or subapplicant determines that strategic funds management is not feasible for the

activity, a narrative explaining the rationale shall be provided.

In addition to the budget, the applicant must identify the cost categories and value for anticipated

cash and third-party in-kind contributions for meeting the non-federal cost share.

FEMA accepts estimated costs when they are:

 Prepared by a licensed professional engineer or other estimating professional, such as a

licensed architect or certified professional cost estimator, who certifies that the estimate was

prepared in accordance with industry standards.

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Refer to 2 CFR § 200.1 for the definition of program income.

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Part 6. Application and Submission Information 139

 Based on unit costs for each component of the scope of work and not a lump-sum amount.

 Of sufficient detail for FEMA to validate that all components correspond with the scope of

work.

 Based on the current phase of design or construction inclusive of any known costs.

 Inclusive of actual costs for work completed at the time the cost estimate is developed.

 Reasonable.

When estimated cost data does not provide enough detail for FEMA to complete an analysis, the

agency may issue a Request for Information (RFI) to the applicant for additional information or

clarification.

C.3.2. NON-FEDERAL FUNDING SHARE

The budget must include a list of all sources and amounts used in the non-federal share, including

all third-party in-kind contributions.

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FEMA will not reimburse any in-kind contributions above the

required non-federal share. If any portion of the non-federal share comes from nonapplicant sources

(e.g., donated services, private donation), the applicant must attach letters of funding commitment

for each non-applicant source.

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D. Cost-Effectiveness Documentation

For details on cost-effectiveness documentation (for mitigation project types only), refer to Part 5.

E. Feasibility and Effectiveness Documentation

FEMA will use the information provided in the subapplication—including the scope of work, the

budget and supporting documentation—to determine the feasibility and effectiveness of the

proposed mitigation project (for mitigation project types only).

FEMA accepts the engineering design for a project if a licensed professional engineer (or other

professional licensed by the state to practice in the discipline being certified by the individual)

certifies that the design meets the appropriate code or industry design and construction standards.

FEMA will accept the certified engineering design in lieu of a comprehensive technical feasibility

review. Specific design and construction standards are included by project type in Part 12

. If

accepted codes/standards are used, no additional documentation is required. The application must

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Refer to 2 CFR § 200.1 for the definition of third-party in-kind contributions.

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2 CFR § 200.306

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Part 6. Application and Submission Information 140

include the codes or standards that will be used for the design and the version and date of the codes

or standards used.

If an alternative design is proposed, the application and subapplication should contain:

 Applicable building code/edition or engineering standard used.

 Level of protection provided by the proposed project and description of how the proposed

activity will mitigate future losses.

 For the retrofit of existing buildings or infrastructure protection projects, an assessment of

the vulnerabilities of the existing building.

 Any remaining risk to the structure after project implementation.

 Proposed schematic drawings or designs (as applicable).

Project subapplications lacking the appropriate documentation to support the determination of

feasibility and effectiveness may be removed from consideration. Upon request, FEMA will provide

technical assistance regarding engineering documentation.

If future conditions such as climate change–related factors (e.g., sea level rise or increased

precipitation) are included in the analysis, the studies or reports documenting the increased risk and

how it was applied to the project design must be included and document how the project

effectiveness was calculated.

F. Environmental and Historic Preservation

Documentation

Applicants and subapplicants are required to provide information to support the FEMA EHP

compliance review. FEMA, in consultation with appropriate federal and state resource agencies, will

use the information provided in the application/subapplication, including the scope of work and

project budget, as well as any supporting documentation, to ensure compliance with EHP

requirements.

FEMA reviews the completeness of the responses to the questions in the EHP review section of the

project subapplication and any supporting documentation. HMA project subapplications must

include the required information for each property identified in the subapplication and a detailed

scope of work. Information needs include clearly labeled maps, photographs of buildings, ages of all

buildings and structures, and copies of any coordination letters with other agencies. FEMA uses this

information to complete and document the EHP review process. A lack of information may delay the

identification of outstanding EHP compliance requirements and project implementation. Also, failing

to provide the required information by the application deadline may prohibit FEMA from making an

award or subaward.

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F.1. Environmental and Historic Preservation Checklist

The applicant and subapplicant should ensure the project scope of work considers all potential EHP

compliance issues and costs. To assist in preparing the subapplication, the applicant/subapplicant

must complete the EHP Checklist and provide information and documentation about potential

impacts on the pertinent environmental and cultural resources in the project area. The documents

on the FEMA “Environmental & Historic Preservation Grant Preparation Resources

” webpage detail

the information the agency needs to carry out an EHP review by project type. Any relevant

information, surveys or studies related to EHP considerations identified and addressed in previous

project planning activities should also be provided and may be used to satisfy the EHP compliance

requirements at FEMA’s discretion.

Using the EHP Checklist, the applicant/subapplicant will identify applicable information that must be

provided to FEMA, such as a complete scope of work narrative, documentation, maps, studies or

correspondence related to:

 Biological resources: Any identified federally listed threatened and endangered species

and/or designated critical habitats potentially affected by the proposed project.

 Water and biological resources: Vegetation, including amount (area), type and extent to be

removed or affected.

 Water resources: Identification of all surface waters in the project area regardless of

drainage area, size or perceived hazard level. Information about surface waters should

include dimensions, the proximity of the project activity to the water and the expected and

possible impacts of the proposed project on surface waters, if any.

 Coastal resources: Indication of whether the proposed project is located in a state’s

designated coastal zone or within a Coastal Barrier Resource System Unit or Otherwise

Protected Area.

 Pollution control and debris management: Identification of any hazardous or toxic materials

that will affect the project, including studies, investigations or enforcement actions related to

the proposed project’s location.

 Socioeconomic and/or environmental justice requirements: A description of any

socioeconomic effects, including disproportionately high and adverse effects on low-income

or minority populations (i.e., communities with environmental justice concerns) in the

proposed project area.

 Historic or cultural resources: The property address; the original date of construction; and at

least two color photographs for any buildings, structures, objects, or man-made

site/landscape features 45 years or older in age. At least one of the two photographs of a

building should be the front or primary façade showing the building’s entire elevation.

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The EHP Checklist in Table 7 outlines necessary items for EHP compliance. Additional items may be

required. Any items marked with a “yes” in the EHP Checklist must be further described in the

project subapplication. This checklist has been incorporated into the electronic application system

for BRIC and FMA. For the most current information, refer to the FEMA “Environmental & Historic

Preservation Grant Preparation Resources” webpage.

Table 7: Environmental and Historic Preservation Checklist

Environmental Regulation or Statute Yes No

National Historic Preservation Act

1.A Would the proposed project affect, or is the proposed project near, any

buildings or structures 45 years or more in age?

1.B Will the proposed project involve disturbance of ground?

Endangered Species Act

2.A Are federally listed or endangered species, or their critical habitat,

present in or near the project area and, if so, which species are present?

2.B Will the proposed project remove or affect vegetation?

2.C Is the proposed project in, near (within 200 feet), or likely to affect any

type of waterbody or body of water?

Clean Water Act and Rivers and Harbors Act

3.A Will the proposed project involve dredging or the disposal of dredged

material, excavation, the addition of fill material, or result in any

modification to water bodies or wetlands designated as “waters of the

United States” as identified by the U.S. Army Corps of Engineers or any

water bodies or wetlands in the National Wetland Inventory?

Executive Order 11988 (Protection of Floodplains) and Executive Order

11990 (Protection of Wetlands)

4.A Does a Flood Insurance Rate Map, Flood Hazard Boundary Map,

hydrological study or some other source indicate that the project is

located in or will affect a 1% annual chance floodplain, a 0.2% annual

chance floodplain (if a critical action), an identified regulatory floodway or

an area prone to flooding?

4.B Is the proposed project located in, or will it affect, a wetland as listed in

the National Wetland Inventory?

4.C Will the proposed project alter a watercourse, water flow patterns, or a

drainage way, regardless of its floodplain designation?

4.D Is the proposed project located in, or will it affect, a floodplain or

wetland? If yes, the eight-step process summarized in HMA job aids must

be completed.

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Environmental Regulation or Statute Yes No

Coastal Zone Management Act and Coastal Barrier Resources Act

5.A Is the proposed project located in the state’s designated coastal zone?

5.B Is the proposed project located in a Coastal Barrier Resources System

Unit or Otherwise Protected Area?

Farmland Protection Policy Act

6.A Will the proposed project convert more than five acres of “prime or

unique” farmland outside city limits to a non-agricultural use?

Resource Conservation Recovery Act and Comprehensive Environmental Response,

Compensation, and Liability Act

7.A Is there reason to suspect there are contaminants from a current or past

use on the property associated with the proposed project?

7.B Are there are any studies, investigations or enforcement actions related

to the property associated with the proposed project?

7.C Will any project construction or operation activities involve the use of

hazardous or toxic materials?

7.D Are any of the current or past land uses of the property associated with

the proposed project or are any of the adjacent properties associated

with hazardous or toxic materials?

Executive Order 12898 (

Environmental Justice for Low Income and Minority Populations

)

8.A Are there any low-income or minority populations in the project’s area of

effect or adjacent to the project area?

Other Environmental/Historic Preservation Laws (Including Applicable State Laws) or Issues

9.A Are other environmental/historic preservation requirements associated

with this project?

9.B Are any controversial issues associated with this project?

9.C Have any public meetings been conducted, or public comment solicited,

on the proposed project?

FEMA may identify additional EHP compliance review activities necessary to facilitate project

approval, such as the completion of environmental assessments, environmental impact statements,

Phase I environmental site assessments, biological assessments, archeological or standing

structures surveys and documentation, wetlands delineations, and air quality conformity analyses or

determinations. The Section 106 Process under the National Historic Preservation Act

FEMA job aid

describes specific decision points made by FEMA during the Section 106 review process. The NEPA

Flowchart for HMA Projects FEMA job aid describes how FEMA decides if an environmental

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Part 6. Application and Submission Information 144

assessment or an environmental impact statement is needed for compliance with the National

Environmental Policy Act.

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Unanticipated costs and delays may occur if, during the formal EHP compliance review, FEMA

identifies an award condition (e.g., acquiring permits, timing restrictions) or scope change necessary

for the project to remain in compliance with EHP laws or determines that a project will adversely

impact an environmental or cultural resource. FEMA resolves adverse impacts to environmental or

cultural resources through consultation processes that may involve federal and state agencies,

federally recognized tribes and/or external stakeholders. The exact outcome of the consultation, and

therefore the costs and time to resolve the impacts, will not be known until after project selection

and consultation have concluded. The HMA programs have the discretion to determine, on a project-

by-project basis, whether FEMA or the applicant and subapplicant will provide assistance for EHP

mitigation measures to resolve adverse impacts.

Applicants and subapplicants may incur costs for significant EHP compliance review activities and/or

EHP mitigation measures. FEMA will consider the following factors to determine whether to

reimburse costs:

 Nature of the analysis or study required (e.g., environmental impact statement) and the

degree to which the activity is related to accomplishing the mitigation goals.

 Costs of EHP activities compared to project costs.

 Complexity of the proposed project.

 Nature and extent of potential adverse impacts to environmental, cultural and/or historic

resources.

Applicants should consider potential EHP costs during application development and submission and

should seek to avoid activities that may negatively impact EHP resources.

FEMA may remove projects from consideration for full approval and/or assistance when EHP

compliance review activities are not progressing and the applicant/subapplicant has not dedicated

resources and/or provided required and requested documentation in a timely manner.

For more information, visit the FEMA “Environmental Planning and Historic Preservation

” webpage,

contact the appropriate FEMA regional office, or call the EHP Helpline (1-866-222-3580).

G. Requests for Information

If a subapplication does not meet the administrative or procedural information requirements, FEMA

may request additional information in the form of a formal RFI. The request will detail additional

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Public Law 91-190 (Jan. 1, 1970), 42 U.S.C. § 4321

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Part 6. Application and Submission Information 145

information or documentation needed to satisfy outstanding administrative, procedural, program,

technical or EHP requirements. For BRIC and FMA, an RFI will not occur until after selection because

of the competitive nature of the programs. RFIs can take various forms, including email requests,

documented telephone calls or formal letters. Applicants are responsible for coordinating with the

subapplicant to get the required information. Failure to provide the requested information by the

final deadline identified in the request may result in denial if eligibility cannot be determined.

Technical assistance may be available if requested.

G.1. Request for Information Timelines

Table 8 provides timelines for information requests and assistance offers. The subapplication review

process involves an eligibility review to determine whether the subapplication and subapplicant are

eligible. Then a completeness review is conducted to determine whether a complete subapplication

was submitted. If the subapplication is determined to be incomplete, FEMA may request further

information from the subapplicant.

At each step of the RFI subapplication review process, FEMA will work with the applicant to

determine available options to develop a viable activity. Some options include technical assistance

from FEMA or implementing a phased activity. If the FEMA regional administrator does not receive

the requested information before the deadline, the activity may be denied, as the agency will have no

basis to make an eligibility determination. Upon receipt of the requested information and

confirmation that it adequately addresses the RFI, FEMA will determine activity eligibility.

Table 8: Request for Information Timelines

Request Format Timeline

Informal – First Request The FEMA project officer requests additional information from the

applicant in writing. Unless the HMA program is competitive, FEMA

may provide technical assistance, if requested, to help the applicant

respond to the RFI and set a new time frame for the applicant’s

response. Depending on the HMA program, the applicant may

consider phasing the project if it is feasible to do so. If the requested

information is not received within 30 calendar days from the date of

the request, FEMA will consider the application to be incomplete and

not approvable and will proceed with the process below to send an

informal second request.

Informal – Second

Request

The FEMA hazard mitigation branch chief requests additional

information in writing. If the requested information is not received

within 14 calendar days from the date of the request, FEMA will

consider the application to be incomplete and not approvable. FEMA

may provide technical assistance, if requested, unless the HMA

program is competitive. FEMA, recipient and applicant staff should

meet to resolve any open items within the allotted time frame, if

necessary.

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Part 6. Application and Submission Information 146

Request Format Timeline

Formal Request In a formal letter to the applicant, the FEMA regional administrator

requests additional information and documents previous requests.

The information must be submitted within 30 calendar days.

Formal Denial If the FEMA regional administrator does not receive the requested

information from the formal request within 30 calendar days, FEMA

considers the subapplication to be incomplete and therefore ineligible

for assistance. FEMA sends a formal denial letter at that time.

If the FEMA regional administrator determines additional time is needed to address the requirement,

they may choose to allow more time for an RFI. FEMA encourages subapplicants to coordinate early

with the applicant to identify potential technical assistance needs. If technical data is not readily

available, the subapplicant should coordinate with the applicant to determine whether the project

should be phased to develop the required data. Applicants may contact their FEMA regional office to

request technical assistance, relevant training or other needed support.

The Request for Information process is outlined in Figure 6

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Part 6. Application and Submission Information 147

Figure 6. Request for Information Process Flowchart

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Part 6. Application and Submission Information 148

Application and Submission Information Resources

 Grants.gov registration: www.grants.gov/web/grants/register.html

 FEMA GO: https://www.fema.gov/grants/guidance-tools/fema-go

 SF-424, Application for Federal Assistance https://www.grants.gov/forms.html

 State Single Point-of-Contact List: https://www.whitehouse.gov/wp-

content/uploads/2020/04/SPOC-4-13-20.pdf

 Environmental & Historic Preservation Guidance for FEMA Grant Applications:

https://www.fema.gov/grants/guidance-tools/environmental-historic

 Environmental & Historic Preservation Grant Preparation Resources:

https://www.fema.gov/grants/guidance-tools/environmental-historic/preparation-

resources

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Part 7. Award Selection and Notification 149

Part 7. Award Selection and

Notification

A. Award Selection

Applicants select the subapplications to submit to the Federal Emergency Management Agency

(FEMA). FEMA only reviews subapplications submitted by the applicant. For the Hazard Mitigation

Grant Program and the Hazard Mitigation Grant Program Post Fire program, subapplications are

reviewed on a continuous basis and are awarded if eligible. The evaluation criteria and review

processes for Building Resilient Infrastructure and Communities (BRIC) and Flood Mitigation

Assistance (FMA) programs are outlined in their yearly Notice of Funding Opportunity (NOFO).

B. Applicant Award Notification

During the application selection process for BRIC and FMA, FEMA will notify applicants whether

subapplications have been identified for further review, potentially eligible but not selected, or

determined ineligible for assistance. A determination of “identified for further review” is not a

notification or guarantee of an award. FEMA will work with applicants on subapplications identified

for further review. Applicants will be notified of required activities such as an environmental and

historic preservation (EHP) review, verification of subapplicant commitments, and/or verification of

hazard mitigation plan status, as well as the date by which all required activities must be completed.

FEMA may provide comments on subapplications determined to be ineligible in order for

subapplicants to modify their subapplications for resubmission in future assistance cycles.

B.1. Applicant Award Package

FEMA will provide an award package to the recipient for approved work under the federal award.

Subapplicants will receive notice of award from the applicant.

The applicant award package for HMA programs generally includes:

 An award letter.

 An obligation report.

 Terms and conditions.

 EHP award conditions.

 Other conditions/compliance documentation.

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Part 7. Award Selection and Notification 150

Applicants and subapplicants must review the EHP award conditions included in the award package

for awareness and understanding. For more information about conditions, refer to Part 3

. Failure to

comply with EHP award conditions may jeopardize assistance.

When the applicant or subapplicant accepts an award, they are denoted as the recipient and

subrecipient, respectively. The recipient and subrecipient agree to abide by the federal award terms

and conditions as outlined in the award package.

B.2. Large Project Notification

Large project notification is the process by which FEMA notifies Congress of any obligations of $1

million federal share or greater before obligating an award.

C. Appeal Process for Denied Subapplicants

Applicants and subapplicants can appeal denied subapplications. This process is covered in

program-specific detail in Part 10

C.1. Consideration of Additional Information

FEMA may, at its discretion, notify applicants that it will consider additional information in support of

a subapplication. FEMA will accept supplemental or corrected data in support of a subapplication

when submitted subapplications do not exhaust available program assistance or when determined

appropriate by the program office.

Instructions for submitting supplemental information will be provided within the FEMA notification

letter, if applicable.

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Part 8. Award Administrative Requirements 151

Part 8. Award Administrative

Requirements

This part of the Hazard Mitigation Assistance (HMA) Guide discusses how successful recipients and

subrecipients will receive award information and assistance. Additionally, this part describes

administrative requirements from the time an award is made through closeout and the maintenance

actions that must occur after an activity is complete.

A. Efficient and Effective Grants Management for

Recipients

Before applying for a grant opportunity, applicants and subapplicants should commit to practicing

efficient grants management and complete activities in a timely manner. Efficient grants

management supports the delivery of the Federal Emergency Management Agency’s (FEMA)

programs.

Efficient grants management includes:

 Submitting complete applications.

 Submitting all subapplications prior to the close of the application period.

 Conducting monitoring and performance tracking of expenditures within the period of

performance.

 Submitting quarterly progress and financial reports on time.

 Ensuring the completion of appropriate environmental and historic preservation (EHP)

documentation and actions, as applicable.

 Finishing mitigation activities before the end of the period of performance.

 Submitting final progress and financial reports on time.

 Closing the award in a timely manner.

 Maintaining fiscal responsibility.

 Complying with the terms and conditions of the award (including FEMA-state and FEMA-tribal

agreements).

 Ensuring there are trained staff who understand the program and provide technical

assistance to the subrecipients.

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Part 8. Award Administrative Requirements 152

B. Responsibilities of Recipients

After FEMA approves the subapplications and awards assistance, the agency transfers assistance to

the applicant who, during the award stage, is referred to as the recipient (state, tribe or territory).

Therefore, the applicant becomes the recipient and is generally referred to as a pass-through entity.

The recipient receives the money and passes it on to the subrecipient. Because recipients/pass-

through entities manage the award and subawards provided to their subrecipients, they have

additional responsibilities.

203

All pass-through entities (recipients) must:

 Ensure every subaward is clearly identified to the subrecipient as a subaward and includes

all information required.

204

 Evaluate each subrecipient’s risk of non-compliance with federal statutes, regulations and

the terms and conditions of the subaward for purposes of determining the appropriate

subrecipient monitoring.

205

 Consider imposing additional specific subaward conditions on a subrecipient, if appropriate,

and notify the subrecipient.

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 Monitor the activities of the subrecipient as necessary to ensure the subaward is used for

authorized purposes; that the activities comply with federal statutes, regulations, and the

terms and conditions of the subaward; and that subaward performance goals are

achieved.

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 Review financial and progress reports.

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 Submit quarterly reports to FEMA on time.

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 Follow up and ensure that the subrecipient takes timely and appropriate action for all

deficiencies pertaining to the federal award provided to the subrecipient from the pass-

through entity detected through audits, on-site reviews and other monitoring activity.

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Recipients may have additional roles and responsibilities as outlined in the respective regulations or Notices of Funding

Opportunities governing each program. For example, refer to 44 Code of Federal Regulations (CFR) § 206.433 for the

Hazard Mitigation Grant Program and 44 CFR § 77.3 for the Flood Mitigation Assistance program.

204

2 CFR § 200.332(a)

205

2 CFR § 200.332(b)

206

2 CFR § 200.208; 2 CFR § 200.332(c)

207

2 CFR § 200.332(d)

208

44 CFR § 206.438(c); 2 CFR § 200.332(d)(1)

209

2 CFR § 200.332(d)(2)

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Part 8. Award Administrative Requirements 153

 Issue a management decision for audit findings as required.

210

 Verify that every subrecipient is audited, as required by 2 CFR Part 200

, when it is expected

that the subrecipient’s federal awards expended during the respective fiscal year equaled or

exceeded the threshold set forth in audit requirements.

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 Consider whether the results of the subrecipient’s audits, on-site reviews or other monitoring

indicate conditions that necessitate adjustments to the pass-through entity’s own records.

212

 Consider taking enforcement action against non-compliant subrecipients.

213

C. Assessment of Risk Posed by Recipient and

Subrecipient Prior to Award

Prior to making an award, FEMA will evaluate a recipient to determine the level of risk when there is

a history of failure to comply with general or specific terms and conditions of a federal award or

failure to meet the expected performance goals. Some elements that FEMA will review include

financial stability, quality of management systems, history of performance (including compliance with

reporting requirements), conformance to the terms and conditions of previous awards, reports and

findings from prior audits, and the ability to effectively implement statutory, regulatory and other

program requirements imposed on the recipient. If FEMA determines that a federal award will be

made, special conditions that correspond to the degree of risk assessed may be applied to the

award.

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As part of the risk assessment, the federal awarding agency is required by the Improper Payments

Elimination and Recovery Improvement Act of 2012

215

to review information available through any

Office of Management and Budget-designated repositories of government-wide eligibility qualification

or financial integrity information as appropriate.

216

FEMA must also review a recipient’s status in the

System for Award Management. FEMA must comply with government-wide suspension and

debarment regulations and require that non-federal entities comply with these requirements.

217

Recipients must also conduct risk assessments of their subrecipients.

218

210

2 CFR § 200.521; 2 CFR § 200.332(d)(3)

211

2 CFR § 200.501; 2 CFR § 200.332(f)

212

2 CFR § 200.332(g)

213

2 CFR § 200.339; 2 CFR § 200.332(h)

214

2 CFR § 200.206(b)(1)

215

Public Law 112-248 (Jan. 10, 2013)

216

31 United States Code (U.S.C.) § 3321, note, 41 U.S.C. § 2313

217

2 CFR § 200.206(d)

218

2 CFR § 200.332(b)

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Part 8. Award Administrative Requirements 154

If a recipient determines a particular risk associated with a subrecipient, the recipient may impose

additional conditions or requirements.

219

If additional conditions and requirements are imposed,

FEMA must promptly remove them once the conditions that prompted the additional conditions or

requirements have been satisfied.

220

For HMA programs, additional conditions or requirements may include:

 Requiring payments as reimbursement rather than advance payments.

 Withholding authority to proceed to the next phase until receipt of evidence of acceptable

progress within a given period of performance is provided.

 Requiring additional, more detailed financial reports.

 Requiring additional monitoring.

 Requiring the recipient or subrecipient to obtain technical or management assistance.

 Establishing additional prior approvals, such as requiring the preparation of a management

plan.

For those recipients that receive assistance from FEMA regularly, designated staff shall complete the

risk assessment annually at the beginning of the fiscal year. For other recipients, the assessment will

be completed at the time of application review and then annually until the period of performance has

ended.

221

Recipients can request reconsideration of the specific conditions using the appeal or reconsideration

process described in Part 10

. If the appeal or reconsideration is successful, or if the circumstances

that prompted imposing specific conditions have been corrected, FEMA must remove specific

conditions.

Refer to Part 10 for more information on program-specific appeals or reconsiderations.

D. Strategic Funds Management

Strategic Funds Management is FEMA’s process for obligating assistance in increments based on

the recipient’s and/or subrecipient’s schedule to execute the work, including management costs.

Strategic funds management does not change the activity eligibility process but is a method of

approving work and providing assistance as needed.

219

2 CFR § 200.208

220

2 CFR § 200.208(e)

221

2 CFR § 200.206

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Part 8. Award Administrative Requirements 155

Strategic funds management:

 Works as a tool that FEMA uses to manage funds more efficiently.

 Promotes fiscal responsibility and better project management by incrementally assisting

activities as each project milestone is reached.

 Allows FEMA to reduce the number of unexpended obligations over time.

 Enhances FEMA’s grants management capabilities consistent with appropriations and the

Budget Control Act of 2011.

222

 Helps to avoid restrictions on hazard mitigation assistance that may occur under Immediate

Needs Funding. Immediate Needs Funding is implemented to preserve assistance in the

Disaster Relief Fund for the immediate needs of current or future disasters.

If a subaward is appropriate for strategic funds management, FEMA and the recipient/subrecipient

will review the budget and work schedule to ensure the activity supports incremental obligation.

Obligations are executed in increments, based on the activity meeting an established milestone

schedule, until the scope of work is completed.

Strategic funds management should be used if one of the following is true:

 The federal share of a subapplication/subaward is greater than $1 million and the

recipient/subrecipient does not need assistance for more than 180 calendar days from the

time the subaward is ready for obligation.

 A recipient’s management costs application is greater than $500,000.

 A subrecipient’s management costs are greater than $25,000.

If strategic funds management is required, FEMA will obligate assistance for mitigation activities

based on the schedule included with the subapplication unless contractual agreements require

additional assistance. Management costs obligations will cover no more than one year unless

contractual agreements require additional assistance. The recipient is responsible for notifying the

subrecipient that assistance is available and for distributing the assistance to the appropriate

subrecipient. Assistance that FEMA has obligated is available to the recipient to pass through to the

appropriate subrecipient.

D.1. Strategic Funds Management Procedures

This section delineates the procedures for strategic funds management.

222

Public Law 112-25 (Aug. 2, 2011)

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Part 8. Award Administrative Requirements 156

D.1.1. CONSIDERING STRATEGIC FUNDS MANAGEMENT IMPACTS FOR HAZARD

MITIGATION ASSISTANCE SUBAPPLICATIONS

Applicants and subapplicants are encouraged to consider FEMA’s use of strategic funds

management early in the decision-making process to help facilitate the development of a feasible

activity budget and appropriate activity milestones. If FEMA determines an activity is suitable for

strategic funds management (such as HMA activities with a $1 million federal share or greater), the

subrecipient should prepare activity budgets so that line items for logical segments of work can be

selected for each obligation. This will avoid having to rework the budget later when FEMA determines

the activity required strategic funds management. The work schedule should include the time frame

in which subsequent obligations are anticipated.

D.1.2. EVALUATING HAZARD MITIGATION ASSISTANCE ACTIVITIES FOR STRATEGIC FUNDS

MANAGEMENT POTENTIAL

Recipients, subrecipients and FEMA staff must evaluate all HMA activities with a $1 million federal

share or greater to determine whether the activity is a candidate for strategic funds management.

This evaluation will allow FEMA to approve and obligate only the assistance drawn down by the

recipient within a reasonable period.

FEMA recognizes that certain activities may not be suitable for strategic funds management. The

following mitigation activities are not required to use strategic funds management:

 Mitigation activities that require an approved source of assistance (full obligation) by the

state, local, tribal and territorial procurement requirements for the applicant to enter

procurement and contracting.

 Mitigation activities for which most of the assistance will be disbursed within 180 calendar

days.

If strategic funds management is not used on a mitigation activity with a federal share of $1 million

or greater, the recipient must provide proper justification to FEMA. While FEMA may decide not to

apply strategic funds management to the mitigation activity, management costs may still be

incrementally obligated.

If a mitigation activity is selected for strategic funds management, FEMA will notify the recipient if the

subaward needs to be revised to facilitate strategic funds management by adjusting budgets and

schedules accordingly. The recipient must ensure the budget reflects line items that support

incremental assistance based on the proposed work schedule. The recipient should coordinate with

the subrecipient to revise the subaward to support strategic funds management.

FEMA and the recipient must capture the proposed obligation schedule in the electronic application

system.

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Part 8. Award Administrative Requirements 157

D.1.3. LARGE PROJECT NOTIFICATION REQUIREMENTS

If any of the strategic funds management award increments are $1 million federal share or greater,

the large project notification process is required. FEMA must complete the large project notification

process prior to the obligation and approval of the initial strategic funds management increment.

D.1.4. MANAGING SUBSEQUENT FUNDING OBLIGATIONS THROUGH QUARTERLY

REPORTING

FEMA verifies the need for subsequent obligations through quarterly reporting. Subsequent

obligations are based on subaward progress and milestones as reflected in the quarterly reports. If a

recipient is not on target for scheduled assistance drawdowns or subaward completion

requirements, FEMA will work with the recipient to revise the award dates and update the spend

plan. For more information about spend plans, refer to Part 10

The recipient notifies FEMA in writing (email or other correspondence) when they require assistance

to meet the activity schedule. Recipients should request the release of the next increment of

assistance a minimum of 30 calendar days before they need the assistance. The 30-day minimum

allows FEMA and the recipient time to coordinate the spend plan and any strategic funds

management schedule adjustments. Additional obligations are processed through electronic

application systems pursuant to the normal course of activity implementation and subsequent

assistance.

FEMA regional offices are encouraged to share strategic funds management reports with recipients

for ongoing coordination.

D.1.5. STRATEGIC FUNDS MANAGEMENT APPEAL PROCESS

The decision to use strategic funds management, including the timing and execution of the

obligation action by FEMA, is not subject to appeal.

E. Cost Share Documentation

Requirements for cash and third-party in-kind contributions can be found in grants management

regulations.

223

Cash and third-party in-kind contributions are only allowable for eligible program

costs; however, they are necessary and reasonable for completing the scope of work.

The approved budget identifies cost share. The following documentation is required for cash and

third-party in-kind contributions:

 Identification of contributions in the approved budget.

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2 CFR § 200.306

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Part 8. Award Administrative Requirements 158

 Record of donor (who donated, quantity used, location of work provided, invoices or other

documentation to determine value).

 Dates of donation (the donation must be within the period of performance).

 Rates for staffing, equipment usage, supplies, etc.

 Amounts of donation or value of donation.

224

 Deposit slips for cash contributions.

The applicant/subapplicant must keep documentation on file.

Unrecovered indirect costs cannot be considered as non-federal cost share because of program and

statutory requirements that define indirect costs as management costs. Management costs are

subject to financial restrictions.

F. Budget and Scope of Work Changes

Recipients are required to report deviations from budget, project scope or objectives. Recipients

must request prior approvals from FEMA for certain budget and program plan revisions in

accordance with this section and the requirements in 2 CFR § 200.308

Requests must be made in writing and demonstrate the need for a budget or scope change and

include the revised scope, schedule and budget. When budget changes are made, all program

requirements continue to apply. Changes must be made prior to closeout to avoid disallowance of

costs.

All approvals will be at FEMA’s discretion. Failure of the recipient to obtain prior written approval may

result in the disallowance of costs. Even in cases where the recipient has authority for rebudgeting, if

a program audit determines the costs do not meet the required allowable and reasonable

determination, the costs may be disallowed.

The recipient must also notify FEMA as soon as an underrun or overrun is identified.

The following types of post-award changes will require the prior written approval of FEMA.

F.1. Non-Construction Subaward Changes

For non-construction subawards, prior FEMA approval is required for the following reasons:

225

224

2 CFR § 200.434

225

2 CFR § 200.308(c) and 2 CFR § 200.308(f)

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Part 8. Award Administrative Requirements 159

 A change in a key person specified in the application or the federal award.

 The disengagement from the project for more than three months or a 25% reduction in time

devoted to the project by the approved project director or principal investigator.

 The inclusion, unless waived by FEMA, of costs that require prior approval in accordance with

2 CFR Part 200, Subpart E

, as applicable.

 The transfer of funds budgeted for participant support costs to other categories of expense.

 The need arises for additional federal funds to complete the project.

 The transfer of funds within the budget among direct cost categories, functions and activities

for federal awards in which the federal share of the project exceeds the simplified acquisition

threshold. Additionally, the cumulative amount of such transfers exceeds or is expected to

exceed 10% of the total budget as last approved by FEMA. Any subaward adjustment or

transfer must be consistent with the scope of the award.

F.2. Construction Subaward Changes

For construction subawards, prior FEMA approval is required for the following reasons:

 Additional federal funds are needed to complete the project.

 A revision involves specific costs for which prior written approval requirements may be

imposed consistent with applicable OMB cost principles listed in 2 CFR Part 200, Subpart E

 When the subaward provides support for construction and non-construction work, the

recipient must obtain prior approval before making any fund or budget transfers between the

two types of work supported.

Additional information regarding budget adjustments and revisions can be found in

2 CFR §

200.308(h).

F.3. Cost Overruns and Underruns

A cost overrun, also known as a cost increase or budget overrun, is an unexpected cost increase

needed to complete the project and may occur as the result of unfeasible cost estimates,

underestimated complexity, prolonged schedules or other reasons. A cost underrun, also known as a

cost decrease or budget underrun, is an unexpected reduction in costs needed to complete the

project. A cost overrun or underrun may result from a scope, schedule or budget change.

The recipient must notify FEMA as soon as an underrun or overrun is identified. Before redirecting

underrun assistance to overrun requests within the same award, the recipient must request and

receive FEMA approval. The recipient may request additional federal assistance for identified

overruns, which FEMA may approve if program assistance is available. The subaward must continue

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Part 8. Award Administrative Requirements 160

to meet cost share and eligibility requirements. For example, cost overruns and underruns may

affect the amount of available subrecipient management costs. Refer to Part 13

for more

information.

For mitigation activities, a new Benefit-Cost Analysis (BCA) may be required if the recipient requests

additional assistance.

F.4. Contingencies

A contingency cost is an allowance in the total budget to cover situations that cannot be fully defined

when the budget is prepared but will likely result in additional eligible costs. Allowances for major

project scope changes, unforeseen risks or extraordinary events may not be included as contingency

costs.

For project applications, budgets may include contingencies; however, the recommended total

contingency range is 1% to 5%. Contingency costs may be raised to 7% for historic properties as

defined under the National Historic Preservation Act.

226

Recipients who request contingencies above

these amounts must include a cost analysis that documents the percentage is reasonable.

Contingency costs must be included as a line item (cost category) in the budget of a project

application if contingency costs have been identified. As with other line items in the budget, the

subapplicant should justify the contingency estimate based on the nature of the proposed project.

The total project cost, which may include contingencies, will be used to compute the BCA.

Contingency assistance is not automatically available for use. Prior to its release, contingency

assistance must be rebudgeted to another direct cost category. Post-award changes to the budget to

access contingency assistance require prior written approval from FEMA. The written request should

demonstrate what unforeseen condition related to the project arose that required the use of

contingency assistance.

G. Period of Performance

The period of performance is the time period during which the recipient and subrecipient may incur

new obligations to carry out all administrative actions and award activities and incur costs.

227

Recipients and subrecipients are expected to complete the federal award activities including

administrative actions and to incur approved assistance within the period of performance.

226

Public Law 89-665 (Oct. 15, 1966)

227

Period of performance is defined at 2 CFR § 200.1 as “the total estimated time interval between the start of an initial

Federal award and the planned end date, which may include one or more funded portions, or budget periods. Identification

of the period of performance in the Federal award per § 200.211(b)(5) does not commit the awarding agency to fund the

award beyond the currently approved budget period.” Budget period is defined at 2 CFR § 200.1 as “the time interval from

the start date of a funded portion of an award to the end date of that funded portion during which recipients are authorized

to expend the funds awarded, including any funds carried forward or other revisions pursuant to § 200.308.” FEMA awards

only include one budget period, so it will be same as the period of performance.

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Part 8. Award Administrative Requirements 161

Equipment and services and other activities funded by a subaward must be performed, delivered

and completed within the subaward period of performance. The recipient must include the start and

end dates of the subaward period of performance in the subaward. The period of performance does

not include the closeout and liquidation time frames established by 2 CFR § 200.344

. Project costs

and management costs incurred after the period of performance are not eligible. HMA recipients and

subrecipients must complete all administrative actions within the respective award or subaward

period of performance if they seek federal assistance to cover the costs.

G.1. Award Period of Performance

FEMA must include the start and end dates of the period of performance in the federal award.

The period of performance for the Hazard Mitigation Grant Program (HMGP) begins with the opening

of the application period and ends no later than 48 months from the close of the application period.

The period of performance for Hazard Mitigation Grant Program Post Fire (HMGP Post Fire) begins at

the opening of the application period (i.e., date of Fire Management Assistance Grant [FMAG]

declaration) and ends 48 months after the close of the application period.

Notices of Funding Opportunity (NOFOs) establish the periods of performance for the Building

Resilient Infrastructure and Communities (BRIC) and Flood Mitigation Assistance (FMA) programs.

For more information on program-specific periods of performance, refer to Part 10

G.2. Subaward Period of Performance

FEMA does not establish activity completion timelines for individual subawards. Recipients are

responsible for establishing the subaward period of performance start and end dates at the time the

subaward is granted.

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Recipients must include a period of performance in all subaward

agreements and are responsible for ensuring that all approved activities, including management

costs, are completed and that all costs are incurred by the end of the subaward period of

performance. The recipient must establish the subaward period of performance based on the

schedule included in the subapplication.

G.3. Award Extensions

Requests for extensions to an award period of performance will be evaluated by FEMA but will not be

automatically approved.

For HMGP and HMGP Post Fire, the FEMA regional administrator may issue up to two extensions of

the award period of performance for up to 12 months each. All requests to extend the award period

228

2 CFR § 200.332(a)(1)(v)

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Part 8. Award Administrative Requirements 162

of performance beyond 24 months from the original award period of performance end date must be

approved by FEMA headquarters.

Recipients must submit extension requests to the recipient’s respective FEMA region at least 90

calendar days prior to the award period of performance’s expiration. If the extension request is

received less than 90 calendar days prior to the award period of performance’s expiration, FEMA

may deny the request.

The written request must contain specific and compelling justification for why an extension is

required. Recipients are advised to coordinate with the FEMA region when preparing an extension.

The justification must include:

 Program name, fiscal year and award number.

 Verification that progress has been made as described in Quarterly Progress Reports

229

including dates of previous extensions.

 Reason(s) for delay, including details of the legal, policy or operational challenges that

prevent the final outlay of awarded assistance by the applicable deadline.

 Status of the activity/activities.

 Period of performance end date and new completion date.

 Amount of assistance drawn down to date.

 Remaining available assistance, both federal and non-federal.

 Budget outlining how remaining federal and non-federal assistance will be expended.

 Plan for completion, including milestones and time frames for achieving each milestone and

the position/person responsible for implementing the plan for completion.

 Certification that the activity/activities will be completed within the extended period of

performance without any modification to the original scope of work approved by FEMA.

For BRIC and FMA, the NOFO establishes the availability of extensions and what information the

applicant should include in the extension request.

FEMA will evaluate requests for extensions to an award period of performance. Based on the

sufficiency of justification, FEMA may issue an extension as permitted by the guidance or NOFO. If

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Quarterly Progress Reports may also be referred to as Quarterly Performance Reports.

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Part 8. Award Administrative Requirements 163

FEMA approves the extension, the recipient will receive an updated period of performance

establishment letter.

H. Requests for Advancements and Reimbursements

It is the recipient’s responsibility to process requests for advances and reimbursements of

assistance. The recipient should establish accounting procedures to disburse money to

subrecipients in a timely manner and provide subrecipients with a point of contact for information on

assistance to be requested and received, records that must be maintained, forms to be used, and

timelines for requesting the assistance.

Recipients shall submit a copy of Standard Form (SF) 270: Request for Advance or Reimbursement,

to FEMA via the electronic application system.

I. Program Income

FEMA encourages recipients/subrecipients to generate program income to help defray program

costs. Program income is gross income received by the recipient/subrecipient directly generated by

an award-supported activity or earned only because of the award during the award period of

performance.

230

Program income may be derived from the use or rental of real or personal property

acquired with award assistance as well as the sale of commodities or items fabricated under the

award. Subrecipients must deduct this income from total activity costs.

231

The recipient/subrecipient

must report their program income to FEMA for the proper treatment of the program income under

the award. The recipient should report program income earned under the award on its next quarterly

SF-425: Federal Financial Report.

After the period of performance, the recipient and subrecipient may generate income but are no

longer required to report the income to FEMA.

232

For example, a community may rent parcels

acquired under 44 CFR Part 80

to community members to use as garden space as long as the open

space requirements and FEMA deed restrictions are followed.

J. Federal Income Tax on Mitigation Project Assistance

FEMA mitigation assistance that benefits property owners by mitigating their structures is not subject

to federal income taxation. FEMA mitigation assistance used to acquire a property will be treated as

an involuntary conversion for tax purposes. For more information, property owners should consult

the Internal Revenue Service office or a tax advisor.

230

2 CFR § 200.1

231

2 CFR § 200.307

232

2 CFR 200.307(f)

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Part 8. Award Administrative Requirements 164

K. Remedies for Non-Compliance

If a recipient fails to comply with federal statutes, regulations or terms and conditions of a federal

award—whether they are stated in an assurance, a HMGP Administrative Plan or application, a notice

of award, the guidance or elsewhere—FEMA may take one or more of the following actions, as

appropriate:

 Temporarily withhold cash payments pending correction of the deficiency by the recipient.

 Disallow (that is, deny both use of assistance and any applicable matching credit for) all or

part of the costs of the activity or action not in compliance.

 Wholly or partly suspend or terminate the federal award.

 Initiate suspension or debarment proceedings.

 Withhold further federal awards for the activity.

 Take other remedies that may be legally available.

233

 Terminate the federal award if a recipient fails to comply with the terms and conditions of a

federal award.

234

These remedies may be applied to non-compliance findings from the Government Accountability

Office and Department of Homeland Security Office of the Inspector General audits. For single

audits, FEMA will first use the notification procedures in Part 9

; however, if compliance is not

achieved through implementing corrective actions, the remedies outlined in Part 8.K.1.6 will be

used.

K.1. Actions to Address Deficiencies

When there is a deficiency finding, FEMA will notify the recipient of the deficiency and request that

the issue be corrected. If compliance cannot be achieved, FEMA will apply one of the remedy actions

allowed in Remedies of Non-compliance.

235

These actions may result in the reduction of assistance,

the placement of special conditions upon the award, and/or suspension or termination of the award.

FEMA will generally work with the recipient to address the deficiency using the Request for

Information (RFI) procedures. If attempts to work with the recipient do not result in compliance, the

appropriate FEMA project officer will initiate the procedures outlined in this section, such as:

233

2 CFR § 200.339

234

2 CFR § 200.340(a)(1)

235

2 CFR § 200.339

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Part 8. Award Administrative Requirements 165

 Documenting the deficiency using an RFI.

 Reviewing the deficiency to determine if it can be corrected.

o If the project officer determines the recipient can correct the deficiency, the officer will

proceed with providing a compliance notification to the recipient. If the project officer

determines the recipient cannot correct the deficiency, the officer will proceed with

applying remedy actions.

o If there is a regulation or program statute that requires FEMA to take specific

enforcement action, such as administrative closeout, the project officer will proceed with

providing a compliance notification to the recipient.

236

This process is an opportunity for the recipient to demonstrate it complies or to take actions to come

into compliance prior to FEMA taking remedy actions.

K.1.1. COMPLIANCE NOTIFICATION TO RECIPIENT

After completing the RFI procedures, the FEMA regional administrator or their designee will send a

written deficiency to the recipient advising of the deficiency, as well as the requirement to submit a

Compliance Action Plan within 60 calendar days of the date of the notification. The notification will

contain the following information:

 The deficiency at issue, with reference to the applicable law, regulation, guidance and/or

policy, and the basis for FEMA’s determination that the deficiency exists.

 FEMA’s recommended corrective actions and completion dates to come into compliance.

 That the recipient has a maximum of 60 calendar days from the date of the deficiency

notification to submit to FEMA either of the following:

o A proposed Compliance Action Plan detailing corrective actions and the estimated

completion dates to come into compliance.

o If the recipient does not concur with FEMA’s finding of deficiency, an explanation and

documentation to show compliance.

 That if the recipient does not demonstrate compliance within the prescribed completion

dates, FEMA will take remedy action(s), which may include a reduction in assistance,

placement of special conditions on the grant award, or suspension or termination of

assistance.

236

2 CFR § 200.344

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Part 8. Award Administrative Requirements 166

FEMA will only approve a Compliance Action Plan that includes:

 A description of the corrective actions the recipient proposes to come into compliance with

requirements.

 The estimated completion dates for each of the corrective action(s), with milestones. All

deficiencies should be addressed prior to the end of the period of performance.

If the recipient does not provide the Compliance Action Plan to FEMA within 60 calendar days, FEMA

will start remedy actions. If the recipient does not concur with FEMA’s finding of deficiency, it must

provide to FEMA an explanation and documentation demonstrating that the recipient complies within

60 calendar days of the deficiency notification date. If FEMA determines the recipient’s explanation

and documentation are not enough to demonstrate compliance, the recipient must provide a

Compliance Action Plan within 30 calendar days of FEMA’s determination. Within 45 calendar days

of receipt of the Compliance Action Plan, FEMA will review the proposed Compliance Action Plan and

notify the recipient of the agency’s determination.

If the FEMA project officer approves the proposed Compliance Action Plan, the notice will include a

timeline for corrective action updates from the recipient. If the project officer does not approve the

Compliance Action Plan, the notice will include the reason the Compliance Action Plan is inadequate

and provide a maximum additional 60 calendar days to adequately revise the Compliance Action

Plan. If after the 60-day period the project officer determines the revised Compliance Action Plan is

still inadequate, or the recipient is not responsive, the project officer will start procedures to apply

remedy actions.

K.1.2. COMPLIANCE ACTION PLAN MONITORING

The recipient must provide updates every 90 calendar days, which can be included in the Quarterly

Progress Reports, if applicable, or more frequently as prescribed by FEMA. If the recipient does not

provide the FEMA project officer with timely progress reports or is otherwise not responsive to FEMA

requests, the project officer will proceed with applying remedy actions.

K.1.3. SPECIFIC AWARD CONDITIONS

Specific award conditions may include the following:

237

 Requiring payments as reimbursements rather than advance payments, such as imposing

controlled drawdowns in the appropriate Award Payment System by (1) placing any

assistance on hold and (2) only releasing assistance for drawdown when the recipient

provides a request for reimbursement with SF-270 and full support documentation for the

requested payment.

237

2 CFR § 200.208(c)

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Part 8. Award Administrative Requirements 167

 Withholding authority from the recipient to proceed to later phases of its activity until FEMA

receives satisfactory evidence of acceptable performance within a given period of

performance.

 Requiring additional and/or more detailed financial or program progress reports.

 Requiring more frequent reports and/or additional information in reports on an as-needed

basis or on a recurring schedule as deemed appropriate based on the non-compliance and

circumstances.

 Requiring additional activity monitoring.

 Requiring the recipient/subrecipient to obtain technical or management assistance such as

requiring technical assistance visits, desk reviews or site visits by the relevant program office

to ensure recipients or subrecipients are taking the appropriate actions to correct non-

compliance or if there is a need to continue monitoring because of non-compliance.

 Requiring the recipient or subrecipient to obtain specialized technical or management

assistance, including but not limited to webinars targeted at specific issues or concerns,

training from FEMA’s Procurement Disaster Assistance Team, or hiring a contractor to review

the recipient’s financial systems and make recommendations.

 Establishing additional prior approvals.

 Placing a hold or stop payment on the grant award in the appropriate Award Payment System

pending the recipient’s submission of satisfactory documentation showing acceptable

performance.

 Notifying the recipient of the additional requirements, the reason the requirements are

needed, the nature of the action needed, the time allowed for completing the actions, and

information about the appeal process if the recipient determines the issues have been

resolved.

238

K.1.4. REQUESTS FOR CLOSURE AND DETERMINATION ON CORRECTIVE ACTIONS

The recipient must provide documentation to demonstrate they have come into compliance and

request closure of the relevant finding(s) of deficiency. If, after review of the recipient’s request for

closure, the FEMA project officer determines the recipient completed the corrective action(s), the

project officer will notify the recipient in writing of its compliance determination within 30 calendar

days.

238

2 CFR § 200.208(d)

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Part 8. Award Administrative Requirements 168

K.1.5. DETERMINATION THAT RECIPIENT DID NOT COME INTO COMPLIANCE

If, after reviewing the supporting documentation, the FEMA project officer determines the recipient

did not complete the corrective action(s), the project officer will start procedures to apply remedy

actions.

The project officer will consider the recipient’s failure to comply with a Compliance Action Plan as an

aggravating factor and will start procedures to apply remedy actions.

K.1.6. APPLYING REMEDY ACTIONS

If the FEMA project officer determines the recipient could not or did not correct the deficiency, the

project officer will proceed to apply remedy actions by notifying the recipient of such action within 30

calendar days. The notice will contain the following:

 The requirement(s) at issue, with a reference to the applicable regulation and/or policy, and

the basis for FEMA’s determination that the deficiency exists.

 Actions taken by the recipient, if any, to attempt to come into compliance, and actions taken

by FEMA, if applicable, to assist the recipient with coming into compliance.

 Notification that FEMA is applying remedy action(s) and the effective date.

 Notice of the recipient’s opportunity to object through an appeal procedure.

K.1.7. MITIGATING AND AGGRAVATING FACTORS

FEMA reviewers can use remedies of non-compliance by considering mitigating and aggravating

factors when determining which option to apply. FEMA may consider mitigating and aggravating

factors in determining whether to apply remedies of non-compliance.

Mitigating factors include:

 Minor or single instance of deficiency.

 Emergency or extenuating circumstances directly impacting ability to comply.

 First-time deficiency.

 Capacity of the recipient (such as needing technical assistance to apply for an extraordinary

HMGP award).

 Recipient self-identifies deficiency to FEMA along with a Compliance Action Plan to address.

 Unheeded requests for assistance from the recipient to FEMA to ensure compliance with new

or involved grant requirements.

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Part 8. Award Administrative Requirements 169

 Attendance at training events to better understand grant requirements.

 Deficiency is the result of incorrect or delayed information provided by FEMA.

 Other factors that the FEMA reviewer articulates in writing that indicate a relief is needed to

manage the award.

Aggravating factors include:

 Experienced or sophisticated recipient or subrecipient with repeated prior instances of non-

compliance.

 Numerous instances of non-compliance with the same activity, subaward or award.

 Civil or criminal penalties associated with the non-compliance.

 Non-responsiveness to FEMA requests.

 Fraudulent reporting or evidence of other deliberate intent to not follow requirements.

 Prior instances of fraud, waste and abuse.

 Failure to process required grants management activities in a timely manner.

 Declining or refusing to attend trainings explaining grants management requirements.

 Disregarded or failed opportunity to correct the non-compliance.

 Other factors that the compliance official articulates in writing that indicate a more severe

remedy action.

L. Award Termination

The federal award, whether the award or subaward, may be terminated in whole or in part under the

following circumstances:

 By FEMA or the recipient, if the recipient or subrecipient fails to comply with the terms and

conditions of the award. If the non-compliance can be corrected, FEMA may first attempt to

direct the recipient to correct the non-compliance.

239

For information on the remedies on

non-compliance and notification procedures, refer to Part 8.K

. FEMA may report in the

Federal Awardee Performance and Integrity Information System.

239

2 CFR § 200.340, 2 CFR § 200.339

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Part 8. Award Administrative Requirements 170

 By FEMA or the recipient, if the subaward no longer effectuates the program goals or agency

priorities.

 By FEMA, with the recipient’s consent, or by the recipient with the subrecipient’s consent. In

either instance, the two parties must agree with the termination conditions, including the

effective date and, in the case of a partial termination, the portion to be terminated. Only the

consent of the two relevant parties is required for the termination.

 By the subrecipient upon sending to the recipient or FEMA written notification of the

termination, including the reason for the termination, the effective date, and—in the case of a

partial termination—the portion to be terminated. In the case of partial termination, FEMA

may determine that a partially terminated award will not accomplish the purpose of the

federal award, so FEMA may terminate the award in its entirety. If that occurs, FEMA will

follow the requirements of 2 CFR § 200.341 and 2 CFR § 200.342

in deciding to fully

terminate the award.

 By FEMA or the recipient pursuant to the termination provisions included in the award.

FEMA and the recipient must comply with closeout requirements even if an award is terminated in

whole or in part.

240

M. Davis-Bacon and Related Acts

The Davis-Bacon and Related Acts (Davis-Bacon Act)

241

require the payment of prevailing wages on

certain federally funded or funded construction activities. The Davis-Bacon Act does not apply to

HMA programs as it is not required by the programs’ authorizing statutes. However, Davis-Bacon Act

compliance may be required if HMA is used in conjunction with another federal agency’s grant, such

as Community Development Block Grant Disaster Recovery funding from the Department of Housing

and Urban Development or if required by state, local, tribal and territorial government laws.

240

2 CFR § 200.340(d), 2 CFR § 200.344, 2 CFR § 200.345

241

Public Law 107-217 (Aug. 21, 2002), as amended

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Part 9. Award Monitoring and Closeout Requirements 171

Part 9. Award Monitoring and

Closeout Requirements

A. Reporting

Recipients and subrecipients must maintain records of work and expenditures. Recipients must

submit quarterly financial and progress reports to the Federal Emergency Management Agency

(FEMA) on Jan. 30, April 30, July 30 and Oct. 30.

242

In the Hazard Mitigation Assistance Program and

Policy Guide (HMA Guide), performance reports are referred to as “progress reports” to align with

references in program regulations. Progress and performance reports are subject to the same

requirements. The first quarterly reports are due within 30 calendar days of the end of the first

federal quarter following the initial award. FEMA may waive the initial progress reports by sending a

read receipt email to the recipient’s hazard mitigation officer or designated representative. The

recipient must submit quarterly financial and progress reports thereafter until the award is closed

out. Failure to submit timely financial and progress reports to FEMA may result in an inability to

access assistance until FEMA receives the proper reports.

A.1. Federal Financial Reports

Recipients shall submit a quarterly Federal Financial Report (SF-425) throughout the period of

performance, including partial calendar quarters as well as in periods where no activity occurs.

Obligations and expenditures must be reported quarterly using approved forms, which are due to

FEMA within 30 calendar days of the end of each calendar quarter (e.g., for the quarter ending

March 31, the Federal Financial Report is due no later than April 30). Future awards and assistance

drawdowns may be withheld if these reports are delinquent. The final Federal Financial Report is due

120 calendar days after the end date of the period of performance.

243

Except for the final Federal Financial Report required for closeout, the reporting periods and due

dates are described in Table 9

Table 9: Federal Financial Report Timing

Quarter Reporting Period Report Due Dates

1 Oct. 1 – Dec. 31 Jan. 30

2 Jan. 1 – March 31 April 30

3 April 1 – June 30 July 30

242

44 Code of Federal Regulations (CFR) § 206.438(c), 2 CFR § 200.328, 2 CFR § 200.329

243

2 CFR § 200.344

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Part 9. Award Monitoring and Closeout Requirements 172

Quarter Reporting Period Report Due Dates

4 July 1 – Sept. 30 Oct. 30

Reports are submitted via FEMA’s electronic application systems unless otherwise directed by the

region.

A.2. Quarterly Progress Reports

The recipient shall submit a Quarterly Progress Report for each award to report on the progress of

their award. Recipients/subrecipients are required to complete and submit Quarterly Progress

Reports to their respective FEMA region 30 calendar days after the end of each fiscal quarter

following the initial award and thereafter until the award ends. Reports must be submitted

throughout the period of performance, including partial calendar quarters, as well as for periods

where no award activity occurs. FEMA may suspend drawdowns from federal financial systems (e.g.,

Payment Management System [SMARTLINK] or Payment and Reporting System [PARS]) if Quarterly

Progress Reports are not submitted on time. FEMA’s decision to extend the period of performance

for the award or for management costs may be affected by inconsistent data in the Quarterly

Progress Reports and in the recipient’s request.

Quarterly Progress Reports must include:

 Project identification information, including FEMA project number (including disaster number

and declaration date for the Hazard Mitigation Grant Program [HMGP]), subrecipient name,

and project type using FEMA’s electronic application systems’ standard project type codes.

 Significant activities and developments that have occurred or have shown progress during

the quarter, including a comparison of actual completion date to the work schedule

objectives established in the subaward.

 Percent completion and whether the completion of work is on schedule and anticipated

completion date. Percent completion is the percentage of the work that has been completed

to date. More information on 100% completion is provided in Part 9.C.1

 Status of costs, including whether the costs are unchanged, overrun or underrun.

 Incremental assistance amounts (strategic funds management) and progress completed.

 For phased projects, if Phase I of a Phase II project is complete, the percent complete should

be noted as a percentage of the entire project (e.g., 50% or whatever is deemed appropriate

by the recipient).

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Part 9. Award Monitoring and Closeout Requirements 173

o If Phase II is not eligible and will therefore not move forward, the project is considered

100% complete. However, if Phase II is eligible/obligated, the Quarterly Progress Report

should reflect 100% only once the approved scope of work is completed under Phase II.

 For acquisition or relocation projects only, indication of the total properties and property

identification list.

 Items in the comment column:

o A brief narrative describing any change in cost status.

o A discussion of any problems, delays or adverse conditions that will impair the ability to

meet the timelines stated in the subaward.

o The status of each acquired property for which settlement was completed in that quarter.

o A statement of whether a request to extend the award period of performance is

anticipated.

o Any other information that FEMA may require.

For Building Resilient Infrastructure and Communities (BRIC) and the Flood Mitigation Assistance

(FMA) program, Quarterly Progress Reports must be used and submitted via FEMA’s electronic

application systems. For BRIC and FMA, additional reporting requirements may be included in the

respective Notice of Funding Opportunity (NOFO). For more information about HMGP Quarterly

Progress Reports, refer to Part 10

A.3. Final Reports

Subrecipients must submit final financial and progress reports to the recipient when they complete

the required work and administrative actions. Subrecipients must submit final reports to the

recipient no later than 90 calendar days after the subaward period of performance end date.

244

For each subaward, the recipient must submit final financial and progress reports to FEMA when

they determine that the subrecipient has completed the required work and administrative actions.

For the award, the recipient must submit final financial and progress reports to FEMA when all

required work and administrative actions have been completed. The recipient must submit the final

financial and progress reports to FEMA no later than 120 calendar days after the award period of

performance end date.

245

244

2 CFR § 200.344(a)

245

2 CFR § 200.329, 2 CFR § 200.344(a)

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Part 9. Award Monitoring and Closeout Requirements 174

A.4. Actions to Address Reporting Deficiencies

All financial and progress reports must be complete and submitted on time. Information in the

reports must accurately describe award and subaward activities, including data related to the

completion of individual property acquisitions. Incomplete progress reports that do not provide

information on all open awards and subawards are considered late. When reports are incomplete or

late, FEMA will notify the recipient of the deficiency and request that the issue be corrected following

procedures in Part 8

. If compliance cannot be achieved, FEMA will apply one of the remedy actions

allowed in 2 Code of Federal Regulations (CFR) § 200.339. These actions may result in the reduction

of assistance, the placement of special conditions upon the award and/or the suspension or

termination of the award.

B. Monitoring Requirements

Monitoring is the responsibility of both FEMA and the recipient. It occurs in several different ways,

including the review of Quarterly Progress Reports, site visits, desk reviews or reviewing audit

findings. If an issue is identified, FEMA or the recipient may provide technical assistance as

necessary. FEMA will also provide a written report of the findings that may include actions that the

recipient must take to address non-compliance.

After FEMA makes the award or subaward, both the recipient and the subrecipient are required to

monitor and evaluate the progress of the mitigation activity in accordance with the terms outlined in

the following documents:

 Approved scope of work and budget.

 Environmental and historic preservation (EHP) award conditions that may require best

management practices or monitoring of site conditions (mitigation projects only).

 Any other award terms and conditions.

 Administrative requirements.

246

 Applicable state, local, tribal and territorial government requirements.

Monitoring requirements are found in the activity-type specific sections (refer to Part 11 and

Part

12).

Sound activity monitoring improves the efficiency of the activity implementation process and the

obligation of the assistance process. The use of quarterly progress and financial reporting facilitates

246

2 CFR Part 200

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Part 9. Award Monitoring and Closeout Requirements 175

project management and allows the recipient and FEMA to monitor obligations and any unliquidated

assistance.

B.1. Quarterly Progress Report Review

Recipients should review the Quarterly Progress Reports for all open activities using the following

evaluation criteria:

 Ensuring the subrecipients are making adequate progress.

 Meeting any requirements for matching or cost sharing.

 Spending assistance only for allowable costs.

 Maintaining adequate systems.

 Ensuring the subrecipient is accountable for federal or federally generated resources, such

as program income, federally owned property or property acquired under the award.

Recipients must also ensure that subrecipient management costs are validated quarterly. Any action

taken to address a deficiency should be noted in the Quarterly Progress Report. The Quarterly

Progress Report gives FEMA staff information needed to identify and address problems before they

become serious, provide technical assistance or take other appropriate action. In addition, FEMA is

also responsible for validating recipient and subrecipient management costs across all open awards.

B.2. Improper Payment

An improper payment is any payment that FEMA made that was obligated to and drawn down by the

recipient and FEMA later determines was made with an incorrect amount (including overpayments

and underpayments) under statutory, contractual, administrative or other legally applicable

requirements. Improper payments may include:

 Any payment to an ineligible party.

 Any payment for an ineligible good or service.

 Any duplicate payment.

 Any payment for a good or service not received (except for such payments where authorized

by law).

 Any payment that does not account for credit for applicable discounts.

 Any payment where insufficient or lack of documentation prevents a reviewer from discerning

whether a payment was proper.

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Part 9. Award Monitoring and Closeout Requirements 176

B.3. Actions to Address Deficiencies Identified During Monitoring

Based on a review of progress and financial reports, FEMA may notify the recipient of the deficiency

and request that the issue be corrected following procedures in Part 8

. If compliance cannot be

achieved, FEMA will apply one of the remedy actions allowed in 2 CFR § 200.339. These actions may

result in the reduction of assistance, the placement of special conditions upon the award and/or

suspension or termination of the award.

C. Closeout Requirements

Upon completion, the recipient and subrecipient are required to close out the subaward or federal

award. In accordance with 2 CFR § 200.344

, the subrecipient has 90 calendar days from the end

date of the subaward period of performance to provide all final reports to the recipient, and the

recipient has 120 calendar days following the end of the award period of performance to submit all

final reports for the federal award. Timely submission is important because under 2 CFR §

200.344(g), the awarding agency or the pass-through entity [recipient] must make every effort to

complete all closeout actions for federal awards no later than one year after receipt of final reports.

This section discusses subaward and award closeout.

The closeout process will verify that:

 The approved scope of work was completed.

 All obligated assistance was liquidated consistent with the approved scope of work.

 All EHP conditions were completed and documented.

 For planning subawards, all jurisdictions have adopted the mitigation plan (mitigation

planning subawards only), or a scope of work change to remove non-adopting jurisdictions

has been approved.

 The activity was completed consistently with the award or subaward agreement.

 The recipient and subrecipient submitted all required financial and progress reports.

 The federal award and subaward were closed out in accordance with the provisions outlined

in Part 9

C.1. 100 Percent Work Completion

The subrecipient shall report 100 percent work completion to the recipient when all work associated

with the approved scope of work is complete, including meeting all compliance requirements (e.g.,

EHP, code and permit certifications, obtaining insurance). This work does not include associated

grant administrative activities required for closeout (e.g., submitting payments of claims or

certifications to the recipient for subaward closeout, financial reconciliation or participating in

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Part 9. Award Monitoring and Closeout Requirements 177

recipient site inspections). If the recipient conducts a subsequent site visit and cannot verify that

work was completed in compliance with the award and subaward terms, the recipient must correct

the next report to indicate that work is not 100% complete. The recipient or FEMA may determine

that any non-compliance with the approved scope of work identified during closeout results in

disallowed costs under the award.

For hazard mitigation planning and planning-related activities, 100 percent work completion is also

when all work within the approved scope of work is complete. For HMA planning subawards, 100

percent work completion is on the date FEMA issues the approval letter after adoption by the

jurisdiction(s). FEMA will not delay closeout in cases where some jurisdictions are not actively

pursuing plan adoption and approval under a multi-jurisdictional plan and the subaward may not be

compliant with the scope of work/subaward conditions. In addition, FEMA will not delay closeout

while remedies of non-compliance are under FEMA review. For more information on 100 percent

work completion requirements for specific planning activities, refer to Part 11

C.2. Subaward Closeout

Subaward closeout is the process by which the recipient verifies that a subaward scope of work has

been completed as approved and that all reimbursed costs were eligible.

C.2.1. RECIPIENT RESPONSIBILITIES TO SUBAWARD CLOSEOUT

The recipient has primary responsibility for the closeout tasks associated with both the program and

subrecipient requirements. The recipient must conduct final inspections for activities, reconcile

subrecipient expenditures, resolve negative audit findings, obtain final reports from subrecipients

and reconcile the closeout activities of subrecipients with award requirements.

247

These activities

cannot extend beyond the award period of performance.

The end date for a subaward period of performance must occur no later than the end date of the

period of performance for federal awards detailed in Part 8.G.1

If the subaward period of performance ends on the same date as the award period of performance,

the subrecipient has 90 calendar days from the end date of the subaward period of performance to

submit final reports to the recipient.

248

The recipient then has an additional 30 calendar days to

submit final reports to FEMA for the entire award, including all subawards. All reports are due to

FEMA 120 calendar days after the end of the award period of performance.

FEMA encourages recipients to establish subaward periods of performance and due dates for

progress and any other reports that end earlier than the award period of performance. Setting earlier

247

2 CFR § 200.344

248

If the recipient has not established a period of performance for the subaward, and the recipient and subrecipient have

not agreed to an earlier final reporting date when the subrecipient’s final financial, progress and other required reports are

due, the subrecipient’s period of performance ends when the recipient’s period of performance ends, and 2 CFR §

200.344 deadlines dictate when financial, progress and any other reports are due for the recipient and subrecipient.

Hazard Mitigation Assistance Program and Policy Guide

Part 9. Award Monitoring and Closeout Requirements 178

deadlines for subawards will allow the recipient additional time to submit all required reports and

perform closeout activities prior to the end of the award period of performance.

249

C.2.2. SUBAWARD CLOSEOUT TIME FRAME AND LIQUIDATION TIME FRAME

A subrecipient must submit to the recipient, no later than 90 calendar days (or an earlier date as

agreed upon by the recipient and subrecipient) after the end date of the subaward period of

performance, all financial, performance, and other reports as required by the terms and conditions

of the federal award.

250

Unless the recipient authorizes an extension, the subrecipient must liquidate

all financial obligations incurred under the federal award no later than 120 calendar days after the

end date of the subaward period of performance.

251

If the recipient or subrecipient does not submit all reports in accordance with this section within one

year of the award period of performance end date, FEMA must report the recipient or subrecipient’s

material failure to comply with the terms and conditions of the award with the Office of Management

and Budget (OMB)-designated integrity and performance system (currently the Federal Awardee

Performance and Integrity Information System [FAPIIS]).

252

FEMA may also pursue other

enforcement actions according to 2 CFR § 200.339

C.2.3. REQUIRED SUBAWARD CLOSEOUT DOCUMENTATION

A completed HMA Closeout Checklist (refer to Table 10) should be submitted to FEMA.

The recipient will submit a claim signed by the governor’s authorized representative, tribal authorized

representative or an executive authorized signature authority.

253

The claim will certify that:

 The reported costs were incurred in the performance of eligible work.

 The approved work was completed.

 The mitigation activity complies with the provisions of the award agreement.

Additionally, the subaward closeout request must include the following:

 Document of non-federal match.

 Verification that any program income has been deducted from total activity costs as specified

in 2 CFR § 200.307

249

FEMA only reimburses costs that occurred during the award period of performance. If the recipient or subrecipient

conduct closeout and liquidation after the award period of performance ends, these costs are not eligible.

250

2 CFR § 200.344(a)

251

2 CFR § 200.344(b)

252

2 CFR § 200.344(i)

253

44 CFR § 206.438(d), 2 CFR § 200.344

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Part 9. Award Monitoring and Closeout Requirements 179

 For project subawards, final site inspection report that contains the name of the inspector,

position of the inspector, date of inspection and verification that work was completed. The

report should include photographs of the completed project clearly labeled with the FEMA

project number, subrecipient name, property address and latitude/longitude to the nearest

sixth decimal place, and source of the photograph.

o Depending on the activity, FEMA may require multiple photographs of the exterior and

interior of the properties and the structures or improvements to certify that the approved

scope of work was completed.

 Final SF-425, Federal Financial Report.

 SF-428, Tangible Personal Property Report, if applicable.

 Final activity costs, including federal share, non-federal share, management costs (if

applicable) and any modifications, such as approved underrun and overrun requests.

 Latitude and longitude to the nearest sixth decimal place.

o For flood reduction, hazardous fuels reduction and soil stabilization projects, an accurate

recording of the official acreage, using open file format geospatial files (i.e., shapefiles),

must be submitted.

 Documentation that lists the environmental conditions that must be met when the project is

carried out (from the Record of Environmental Considerations or Environmental Assessment)

and certification that the project was completed in compliance with those environmental

conditions. If conditions were assigned to the project, provide copies of EHP compliance

documentation (such as an environmental permit).

 Certification that the project meets National Flood Insurance Program (NFIP) requirements (if

applicable).

 For new or updated hazard mitigation plans, a final copy of the approved plan.

 For planning-related activities, documentation that the completed activity was consistent

with the approved scope of work.

 Copies of deliverables identified in the scope of work, if applicable.

For activity-specific requirements, refer to Part 11, Part 12 and Part 13

. Recipients should close out

subawards as activities are completed. In addition, as cost underruns are identified, the recipient

must submit de-obligation requests to FEMA.

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Part 9. Award Monitoring and Closeout Requirements 180

C.2.4. SUBAWARD PROCEDURES

FEMA will advise the recipient of the closeout requirements through the award agreement and the

HMA Guide. The recipient will advise the subrecipient of closeout requirements through the state-

subrecipient agreement.

Upon the completion of each subaward, the recipient submits a closeout request to FEMA for review

and concurrence.

FEMA will review all closeout documentation for compliance and may send the recipient a Request

for Information (RFI) if needed. FEMA will review the closeout request to verify that the approved

mitigation measure complies with all subaward requirements associated with the subaward. The

recipient must follow up on and complete all requests.

All correspondence (electronic or otherwise) related to closeout, including RFIs, must be maintained

in the recipient’s files.

If FEMA does not concur with the closeout request, the agency will document the finding using the

RFI process (refer to Part 7

) to advise the recipient of the reason(s) for non-concurrence, request

additional information and/or explain the corrective actions needed to resolve the non-compliance

issues. The recipient must follow up and complete all requests. If the requested information is not

submitted, FEMA may disallow costs.

A subaward is officially closed when FEMA approves the request and sends a closeout letter to the

recipient confirming the final federal expenditures for the subaward. The recipient will send the

subrecipient confirmation that their subaward has been officially closed by FEMA.

C.2.5. SUBAWARD PROCEDURES STATUTE OF LIMITATIONS OF DISALLOWED COSTS FOR

HMGP

Unless there is evidence of civil or criminal fraud, FEMA cannot initiate administrative action in any

forum to recover any payment made to a state or a local government for disaster or emergency

assistance after the date that is three years after the date of transmission of the final expenditure

report for project completion as certified by the recipient.

254

C.2.6. NOTICE AND DEMAND LETTERS

If FEMA identifies a debt, the FEMA Finance Center will notify the recipient in writing, after

completion of the appeal process, of the type and amount of debt due, and to provide the recipient

with all required notices.

254

Section 705 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act, Public Law 100-707 (Nov. 23,

1988), amending the Disaster Relief Act of 1974, Public Law 93-288 (May 22, 1974); 42 United States Code (U.S.C.) §

5205

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Part 9. Award Monitoring and Closeout Requirements 181

C.2.7. ACTIONS TO ADDRESS CLOSEOUT DEFICIENCIES

When closeout documentation is incomplete or late, FEMA will notify the recipient of the deficiency

and request that the issue be corrected following procedures in Part 8

. If compliance cannot be

achieved, FEMA will apply one or more of the remedy actions allowed in 2 CFR § 200.339. These

actions may result in the temporary withholding of cash payments, reduction of assistance, the

placement of special conditions upon the award, suspension or termination of the award, or

withholding further awards for the program.

C.2.8. SUBRECIPIENT RECORDS RETENTION

Financial records, supporting documents, statistical records and all other subrecipient records

pertinent to a federal award must be retained for three years from the date of submission of the final

expenditure report.

255

The final expenditure report is final payment of claim to FEMA for each

mitigation activity/subaward, as required by FEMA regulation, policy and guidance. FEMA will confirm

the report after the receipt of a complete and accurate claim. The confirmed, complete and accurate

subaward closeout report is the final expenditure report.

There are some exceptions where the retention period may be longer than three years as noted and

required by the recipient.

256

The following examples are the most common instances:

 When FEMA, the cognizant agency for audit, oversight agency for audit, cognizant agency for

indirect costs, or pass-through entity notifies the recipient/subrecipient in writing, to extend

the retention period, the recipient/subrecipient must keep records for as long as indicated in

the notification, which may be longer than three years.

 Records for real property and equipment acquired with federal assistance must generally be

retained for three years after disposition. Records for project types where property may be

acquired (safe rooms, flood risk reduction measures, and property acquisition and structural

demolition/structure relocation) must be kept for the project useful life.

C.3. Recipient Management Costs Closeout

Management costs closeout is the process by which the recipient and FEMA verify that all

reimbursed costs were eligible. The recipient submits a request to FEMA to close out management

costs; the final payment of management costs is based on actual costs incurred.

Upon completion of the last non-management costs subaward, the recipient must submit a letter to

FEMA, signed by the governor’s authorized representative, tribal authorized representative or an

executive authorized signature authority, certifying that the reported costs were incurred in the

management of the HMA award.

255

2 CFR §§ 200.334-337

256

2 CFR §§ 200.334-337

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Part 9. Award Monitoring and Closeout Requirements 182

The letter must include:

 A final accounting of eligible management costs. In addition, as cost underruns are

identified, the recipient must submit de-obligation requests to FEMA.

 Documentation for cost share (FMA only).

 Confirmation that recipient has time and attendance records on file. The actual records do

not need to be sent to FEMA; however, FEMA must confirm they are retained.

 A statement confirming that additional supporting documentation for management costs

expenditures is available upon request.

The recipient must liquidate all obligations incurred under the period of performance no later than

120 calendar days after the period of performance expiration, unless FEMA authorizes an extension.

FEMA will de-obligate any assistance not liquidated by the recipient.

C.3.1. RECIPIENT MANAGEMENT COSTS ADMINISTRATIVE PLAN REQUIREMENTS

For HMGP and HMGP Post Fire, costs incurred must comply with the procedures outlined in the

recipient’s HMGP and HMGP Post Fire Administrative Plan.

FEMA reviews the supporting documentation for personnel costs and validates those costs across all

open HMGP and HMGP Post Fire disasters administered by the recipient. This review is done to verify

that employees’ salaries, contractor costs and actual costs paid from disaster awards are the

following:

 Distributed equitably and do not exceed 100%.

 Equivalent to salaries paid in similar positions for non-federal awards.

 Not duplicating direct or management costs provided under subawards.

 In support of activities described in the recipient’s request for management cost assistance.

The recipient must submit form SF-428 if applicable. If not applicable, a statement must be included

in the closeout cover letter.

C.3.2. RECIPIENT MANAGEMENT COSTS RECORDS RETENTION

Financial records, supporting documents, statistical records and all other recipient records pertinent

to management costs must be retained for at least three years from the submission of the final

expenditure report. Exceptions that may extend the retention period are defined in 2 CFR § 200.334

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Part 9. Award Monitoring and Closeout Requirements 183

C.4. Recipient Award Closeout and Liquidation Time Frames

The recipient has up to 120 calendar days following the award period of performance’s expiration to

submit all financial, progress and other reports required by FEMA.

257

Additionally, unless FEMA

authorizes an extension, the recipient must liquidate all financial obligations incurred under the

federal award no later than 120 calendar days after the end date of the award period of

performance.

258

All administrative actions for which the recipient is claiming costs must be

completed during the award period of performance, except the actual submission of the required

reports. Any payment made beyond the closeout and liquidation end date, for eligible costs incurred

during the period of performance, is considered an improper payment. If the recipient needs

additional time to liquidate eligible costs incurred during the period of performance, they may

request a closeout and liquidation extension.

The recipient must complete the following activities to close out the award:

 Ensure all subawards have been closed out.

 Reconcile/adjust subaward costs, ensuring that non-federal share costs are documented,

and that all costs submitted are eligible according to the FEMA-approved scope of work.

 Receive and process cost adjustments or return unobligated assistance to FEMA via

SMARTLINK or PARS. FEMA makes the final payment to the recipient.

 Notify FEMA that the award is ready for final closeout.

By the end of the closeout and liquidation period, the recipient must submit the following to FEMA:

 A closeout letter signed by the governor’s authorized representative, tribal authorized

representative or an executive authorized signature authority to FEMA with supporting

documentation, including:

o A statement that the scopes of work have been completed as approved.

o SF-425 (for PARS, the final SF-425 is also submitted via PARS).

o SF-270, Request for Advance or Reimbursement, if applicable, or request for de-

obligation of unused assistance, if applicable.

o SF-428, if applicable.

o SF-429, “Real Property Status Report,” if applicable.

257

2 CFR § 200.344(a)

258

2 CFR § 200.344(b)

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Part 9. Award Monitoring and Closeout Requirements 184

o A statement that no inventions were made, nor patents applied for in the implementation

of the award.

o Other documents required by applicable laws and regulations, the HMA Guide or NOFO,

terms and conditions of the award, or other FEMA guidance.

An inventory of all construction projects that used funds from this program must be reported with the

final progress report.

The closeout submission will not be considered an official submission without the signed statement

from the governor’s authorized representative, tribal authorized representative or an executive

authorized signature authority,

C.4.1. ADMINISTRATIVE CLOSEOUT

If a recipient is unable to meet the standard closeout requirements (e.g., unable to fulfill non-federal

cost share match requirements), the governor’s authorized representative, tribal authorized

representative or an executive authorized signature authority must request an administrative

closeout in writing to the FEMA regional administrator. The letter must identify the reason for the

recipient’s request.

FEMA may initiate an administrative closeout because of the recipient’s failure to perform in

accordance with the terms of the award or submit required final reports within one year of the period

of performance end date. After all reasonable efforts to secure the final reports (both financial and

program) are exhausted, FEMA will initiate an administrative closeout.

259

If FEMA needs to

administratively close an award, it may negatively impact a recipient’s ability to obtain future

funding. This mechanism can also require FEMA to make cash or cost adjustments and ineligible

cost determinations based on the information it has, which may result in identifying a debt owed to

the agency by the recipient.

The administrative closeout process permits FEMA to close an award using available financial and

programmatic information in lieu of final reports. FEMA will initiate an administrative closeout when

a recipient is not responsive to reasonable efforts the agency makes to collect required reports

needed to complete the standard process. FEMA initiates an administrative closeout through formal

correspondence that provides notice of how the agency intends to proceed. If the recipient submits

all required documents prior to the completion of the administrative closeout process, FEMA may

use those documents to conduct a standard closeout.

FEMA’s decision to enforce an administrative closeout may result in additional enforcement actions,

including disallowance of costs or enhanced oversight of other current awards to the same recipient.

FEMA must report the recipient or subrecipient’s material failure to comply with the terms and

conditions of the award with the OMB-designated integrity and performance system (currently

259

2 CFR § 200.344(h) and (i)

Hazard Mitigation Assistance Program and Policy Guide

Part 9. Award Monitoring and Closeout Requirements 185

FAPIIS).

260

Failure to comply with such reporting requirements may be considered in FEMA’s

oversight of other current and future awards to the same recipient, including in the agency’s pre-

award review of a recipient’s risk for non-compliance.

261

FEMA staff may impose remedies for non-

compliance for the recipient’s other awards.

262

Remedies can include but are not limited to placing

special conditions on future awards, enhanced monitoring, or both.

C.4.2. RECIPIENT RECORDS RETENTION

The recipient must maintain the complete federal award closeout records file for at least three years

from the submission date of its final expenditure report.

263

The records retention period may be

longer because of an audit or litigation, equipment or real property being used beyond the period of

performance, or other circumstances.

264

FEMA recommends that recipients remind subrecipients of

the three-year records retention requirement and communicate the submission date of the final

expenditure reports to the agency.

FEMA retains the right to disallow costs and recover assistance based on a later audit or other

review after closeout. FEMA must make any cost disallowance determination and notify the pass-

through entity within the records retention period.

C.4.3. UPDATE OF REPETITIVE LOSS DATABASE

FEMA will update the NFIP Repetitive Loss Database as project activities are completed. For

acquisition and demolition or relocation projects, recipients must provide an update when there is no

longer an insurable structure on the property. For elevation, reconstruction, floodproofing and

localized flood risk reduction projects, recipients must provide an update when the approved activity

is complete or otherwise effective.

The NFIP defines a repetitive loss structure as any insurable building for which the NFIP paid two or

more claims of more than $1,000 within any rolling 10-year period since 1978. At least two of the

claims must be more than 10 calendar days apart but within 10 years of each other. The NFIP may

or may not currently insure a repetitive loss structure.

265

The NFIP definition of a repetitive loss structure described in this section is different from the FMA

definition following the passage of the Biggert-Waters Flood Insurance Reform Act of 2012.

266

Refer

to Part 10.D for more information.

260

2 CFR § 200.344(i)

261

2 CFR § 200.206

262

2 CFR § 200.339, 2 CFR § 200.206

263

2 CFR §§ 200.334-337

264

2 CFR § 200.344

265

FEMA. (2022, Oct.). National Flood Insurance Program: Flood Insurance Manual.

266

Public Law 112-141 (July 6, 2012); Section 100205

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Part 9. Award Monitoring and Closeout Requirements 186

D. Identification and Collection of Monies Owed

FEMA has a responsibility to recover from the recipient any assistance inappropriately paid for

disallowed costs under its grant awards. This recovery may result from overestimates or underruns

on approved costs or from identifying amounts paid for costs that were unallowable because of

ineligibility, unreasonable costs or other reasons. Funds owed to FEMA also include monies

generated under the award or for income associated with the sale, lease or loan of federal property.

FEMA may identify and collect monies owed under a grant award at any time during the lifecycle of

an award, not just because of closeout.

267

If the administering office cannot resolve amounts owed

under routine administrative processes, it must refer the matter to the FEMA Finance Center to

pursue debt collection. When necessary, the FEMA Finance Center refers debt to the Department of

Treasury for collection purposes.

E. Supplies and Equipment

In general, title to supplies and equipment that the non-federal entity purchases with FEMA

assistance vests in the non-federal entity. The non-federal entity must use the supplies or equipment

for the authorized program or activity purpose as long as is needed and in accordance with

2 CFR §

200.313 and 2 CFR § 200.314.

F. Disposition of Purchased Equipment and Supplies

This section describes disposition requirements when purchased equipment or supplies (including

materials) are no longer needed for federally funded activities. In the context of disposition,

equipment is any tangible personal property (including information technology systems) having a

useful life of more than one year and a per-unit acquisition cost that equals or exceeds the lesser of

the capitalization level established by the non-federal entity for financial statement purposes, or

$5,000.

268

Tangible personal property that does not fall under this definition of equipment is a

supply.

269

When equipment or supplies (including materials) purchased with HMA are no longer

needed for HMA activities, the non-federal entity may use the items for other federally funded

programs or activities, provided the recipient informs FEMA.

270

F.1. Disposition of Purchased Equipment

In accordance with federal regulations, state, local, tribal and territorial non-federal entities must

dispose of equipment in accordance with state, local, tribal and territorial government laws and

procedures.

271

All other non-federal entities must follow the requirements of 2 CFR § 200.313.

267

For information on how to make a payment to FEMA, refer to the “How to Pay FEMA” webpage.

268

2 CFR § 200.1

269

2 CFR § 200.1

270

2 CFR § 200.313(c)

271

2 CFR § 200.313(b)

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Part 9. Award Monitoring and Closeout Requirements 187

When equipment purchased with HMA is no longer needed for mitigation activities, tribal and local

governments and private nonprofit organizations may use the items for other federally funded

programs or activities.

272

When an individual item of equipment is no longer needed for federally assisted programs or

activities, tribal and local governments and private nonprofit organizations must calculate the

current fair market value of each item of equipment. The recipient/subrecipient must provide the

current fair market value for any item with a current fair market value of $5,000 or more. FEMA

reduces eligible assistance by this amount.

273

If an individual item of equipment has a current fair

market value of less than $5,000, FEMA does not reduce the eligible assistance.

274

Tribal and local

government and private nonprofit organizations must comply with all disposition requirements in

CFR § 200.313(e).

F.2. Disposition of Purchased Supplies

When supplies are no longer needed for federally assisted programs or activities, all non-federal

entities, including state and tribal governments, must calculate the current fair market value of any

unused residual supplies (including materials) that FEMA assisted with for any of its activities and

determine the aggregate total. The non-federal entity must provide FEMA with the current fair market

value if the aggregate total of unused residual supplies is greater than $5,000. FEMA reduces

eligible assistance by this amount.

275

If the aggregate total of unused residual supplies is less than

$5,000, FEMA does not reduce the eligible assistance.

G. Disposition of Real Property

If a non-federal entity acquires or improves real property with assistance from an HMA program, the

non-federal entity must follow the disposition and reporting requirements when the acquired or

improved real property is no longer needed for the originally authorized purpose.

276

Real property is

broadly defined to include land, land improvements, structures and any attachments to the land or

structures.

277

Structural hazard mitigation measures applied to land or structures generally

constitute improvements to real property.

G.1. Disposition Requirements by Project Type

The real property reporting and disposition standards apply to the following types of HMA projects,

for the useful life of the real property, that the non-federal entity acquires or improves:

272

2 CFR § 200.313(c)

273

2 CFR § 200.313(e)(2)

274

2 CFR § 200.313(e)(1)

275

2 CFR § 200.314(a)

276

2 CFR § 200.311, 2 CFR § 200.329

277

2 CFR § 200.1

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Part 9. Award Monitoring and Closeout Requirements 188

 Community safe rooms and tsunami vertical evacuation refuge: The retrofit of an existing

facility or construction of a new community safe room or tsunami vertical evacuation refuge,

which are intended to protect a specific population, are considered improvements to real

property.

 Property acquisition: To acquire property to be dedicated and used in perpetuity for open

space for the conservation of natural floodplain functions. Because the non-federal entity

acquires title to the property, the non-federal entity must comply with the property standards

and reporting requirements. To the extent that FEMA’s regulations for property acquisition

and relocation for open space in

44 CFR Part 80 differ from the disposition and reporting

requirements in 2 CFR § 200.311 and 2 CFR § 200.330, FEMA’s regulations at 44 CFR Part

80 govern.

 Other mitigation measures: Mitigation reconstruction, structure elevations, flood risk

reduction measures, non-residential building floodproofing and retrofitting are considered

improvements to real property.

G.2. Exceptions

The real property reporting and disposition standards do not apply to the following types of HMA

projects:

 Residential safe rooms: Individuals are not subject to the requirements of 2 CFR Part 200;

therefore, the disposition and reporting requirements do not apply to safe rooms meant for

individuals or families (e.g., safe rooms installed in single-family dwellings).

 Wildfire mitigation: The property standards will not typically apply to wildfire mitigation

projects that do not improve real property.

 Warning systems: The property standards will not typically apply to warning system projects.

H. Audits

Recipients and subrecipients are subject to federal and non-federal audits.

278

Records are subject to

audits by state or territorial auditors, FEMA, the Department of Homeland Security Office of Inspector

General and the Government Accountability Office.

279

FEMA may adjust activity assistance as the

result of audit findings.

278

2 CFR § 200. 501

279

44 CFR § 206.16

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Part 9. Award Monitoring and Closeout Requirements 189

H.1. Single Audits

A recipient or subrecipient that expends $750,000 or more from all federal funding sources during

their fiscal year is required to submit an organization-wide financial and compliance audit report,

also known as a single audit report.

280

Recipients must comply with procedures for compliance with audit requirements of the Government

Accountability Office’s government auditing standards codified in the Yellow Book,

281

2 CFR Part

200, Subpart F and all other applicable statutes and regulations.

For single audits of recipients, a FEMA project officer will be assigned to follow up on audit findings

and issue management decisions for associated corrective actions. For single audits of

subrecipients, the recipient must follow up on audit findings and issue management decisions for

associated corrective actions.

For single audits, the auditee is required to prepare financial statements reflecting their financial

position, a schedule of federal award expenditures and a summary of the status of prior audit

findings and questioned costs. The auditee must also follow up and take appropriate corrective

actions on new and previously issued but not yet addressed audit findings.

282

The auditee must

prepare a corrective action plan according to 2 CFR § 200.1 and 2 CFR § 200.511

H.2. Government Accountability Office

The Government Accountability Office is the investigatory arm of Congress and is under the direction

of the Comptroller General of the U.S. The Government Accountability Office is an independent,

nonpartisan agency that investigates how the federal government spends taxpayer dollars. Its

mission is to help improve the performance and accountability of the federal government.

H.3. Office of the Inspector General

The Department of Homeland Security, Office of Inspector General conducts independent audits and

investigations on FEMA programs, operations, activities and functions as well as recipient and

subrecipient expenditures of federal assistance. The Office of Inspector General evaluates activities

to identify, deter and address fraud, waste and abuse. The Office of Inspector General also provides

oversight of non-federal audits such as single audits and has the authority to audit any activity

funded with HMA.

280

2 CFR § 200.501, 44 CFR § 206.438(e)

281

The Yellow Book is used by auditors of government entities, entities that receive government awards and other audit

organizations. The Yellow Book is available on the Government Accountability Office’s website at:

https://www.gao.gov/yellowbook

282

2 CFR § 200.508, 2 CFR § 200.510, 2 CFR § 200.511

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Part 9. Award Monitoring and Closeout Requirements 190

H.4. Recovery of Improper Payments

FEMA conducts audit assessments on high-dollar drawdowns to recover payments identified as

improper as required by the Payment Integrity Information Act of 2019.

283

Award-specific activities include requesting that recipients provide supporting documentation for

specific payment requests made on specific dates. Recipient participation in the review is required

under the terms and conditions of the grant agreement.

FEMA will initiate recoupment when it identifies non-compliance and when the matter cannot be

corrected, an amount is potentially owed and funds have been drawn down (refer to Part 9.B.2

and

Part 9.D). FEMA will process a de-obligation after the recipient has reimbursed the amount of the

improper payment.

I. Forms

FEMA maintains multiple forms that OMB must review and approve through the Paperwork

Reduction Act process.

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FEMA generally reviews information collections every three years or earlier

if program statutes or regulations require updates. The HMA Guide references the approved forms at

the time of publication. Any updates to forms may be published on fema.gov.

Recipients seeking to use different forms than provided by FEMA must gain prior agency approval.

Recipients must include forms in their FEMA-approved HMGP Administrative Plan. Plans can be

submitted at any time and can be updated to include BRIC and FMA grants management activities.

FEMA publishes select forms on fema.gov for use by applicants and subapplicants, which can be

found via the “Hazard Mitigation Assistance Guidance

” webpage.

Additionally, FEMA uses certain federally maintained forms for HMA programs. Standard federal

forms for grant applications can be found via the grants.gov Forms Repository

Commonly used forms include:

 Application for Federal Assistance (SF-424).

 Budget Information for Non-Construction Programs (SF-424A).

 Assurances for Non-Construction Programs (SF-424B).

 Budget Information for Construction Programs (SF-424C).

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Public Law 116-117 (March 2, 2020)

284

Public Law 104-13 (May 22, 1995)

Hazard Mitigation Assistance Program and Policy Guide

Part 9. Award Monitoring and Closeout Requirements 191

 Assurances for Construction Programs (SF-424D)

 Disclosure of Lobbying Activities (SF-LLL).

J. Additional Award Administration and Requirements

Resources

Table 10: Closeout Toolkit: Checklist for Hazard Mitigation Assistance Subawards

Minimum Requirement Comments and Documentation Source

General for Mitigation Activities

Was an exception to the plan

requirement granted for this project

under extraordinary circumstances?

If yes, was the plan completed,

approved by FEMA including

adoption by the jurisdiction within 12

months as required?

Was the activity completed within the

award’s established period of

performance?

Were there approved requests for

period of performance extensions?

Were costs incurred after the period

of performance expired?

Was a duplication of benefits search

completed to ensure the subrecipient

did not receive federal assistance for

the same purpose from another

source (e.g., Increased Cost of

Compliance, Individual Assistance)

(excluding non-construction

subawards)?

Was a duplication of programs

search completed to verify the

subrecipient did not receive federal

assistance for the same purpose

from another source (e.g., previous

HMGP, HMGP Post Fire, BRIC or FMA

grants; NFIP; Public Assistance; or

other federal agencies) (excluding

non-construction activities identified

in Part 11)?

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Part 9. Award Monitoring and Closeout Requirements 192

Minimum Requirement Comments and Documentation Source

Was the final Quarterly Progress

Report submitted with the closeout

request?

Did the recipient perform a site

inspection visit of the completed

project and provide a copy of the site

inspection report with the closeout

request (excluding non-construction

activities identified in Part 11)?

Did the recipient provide

photographs of the completed

project to compare with the pre-

mitigation photos (excluding non-

construction activities identified in

Part 11)?

Photos must be clearly labeled with

the FEMA project number,

subrecipient name and address, and

latitude/longitude (to the nearest

sixth decimal place).

Did the governor’s authorized

representative, tribal authorized

representative or an executive

authorized signature authority certify

that reported costs were incurred in

the performance of eligible work, that

the approved work was completed,

and that the mitigation measure

follows the provisions of the FEMA-

State Agreement/FEMA-Tribal

Agreement?

Were special EHP compliance

conditions identified as part of the

approved scope of work?

If yes, did the recipient document in

the closeout package that the project

was completed in compliance with all

EHP conditions identified in the

approval letter/attachments and/or

the electronic application system?

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Part 9. Award Monitoring and Closeout Requirements 193

Minimum Requirement Comments and Documentation Source

Did the recipient certify that the

entire project was completed in

accordance with all required permits

and building codes and standards (if

applicable)?

Did the recipient provide the latitude

and longitude to the nearest sixth

decimal place for each project site

(e.g., for each property, segment or

location) (excluding non-construction

activities identified in Part 11)?

Are there insurable structures

remaining in the Special Flood

Hazard Area after project

completion?

If yes, did the recipient provide proof

of insurance?

Cost Review

Were the final expenditures reported

consistent with the approved costs?

Did the actual reimbursements

match the reported sum of

expenditures?

Has the recipient met the cost share

requirement?

Were in-kind third-party contributions

identified under the subaward?

If yes, did the subrecipient obtain

prior approval?

If additional costs were incurred, was

prior approval obtained?

Was expendable and non-

expendable equipment purchased or

federally owned equipment

furnished?

If yes, Tangible Personal Property

Report (SF-428) must be provided.

Hazard Mitigation Assistance Program and Policy Guide

Part 9. Award Monitoring and Closeout Requirements 194

Minimum Requirement Comments and Documentation Source

Was program income generated

under the project?

If yes, did the recipient deduct

program income from the total

project costs?

Was interest earned on federal

advance payments?

If yes, was interest returned to the

Department of Treasury according to

the applicable regulation for the

disaster?

Additional closeout requirements for each mitigation activity/project type can be found in Part 11

and Part 12.

Award Monitoring and Closeout Resources

 SF-428, Tangible Personal Property Report:

https://www.grants.gov/web/grants/forms/post-award-reporting-forms.html

 Closeout Toolkit: Checklist for Hazard Mitigation Grant Program Subawards:

https://www.fema.gov/sites/default/files/2020-

09/fema_closeout_toolkit_checklist_hazard_mitigation_grant_program_subawards_02-

19-15.pdf

 Closeout Toolkit: Hazard Mitigation Grant Program Subaward Closeout FAQs:

https://www.fema.gov/sites/default/files/documents/fema_closeout-toolkit-hazard-

mitigation-grant-program-subaward-closeout-faqs.pdf

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Part 10. Program-Specific Guidance 195

Part 10. Program-Specific Guidance

This part provides additional information applicable to assistance available under each Hazard

Mitigation Assistance (HMA) program: Hazard Mitigation Grant Program (HMGP), Hazard Mitigation

Grant Program Post Fire (HMGP Post Fire), Building Resilient Infrastructure and Communities (BRIC)

and Flood Mitigation Assistance (FMA). This section supplements the grant application and

management information provided in Part 1 through Part 9

and the unique activity type guidance in

Part 11, Part 12 and Part 13. This part does not provide all necessary information to apply for

assistance through the HMA programs and must be read in conjunction with other relevant sections

of the guidance, as well as relevant Notices of Funding Opportunity (NOFO).

A. Hazard Mitigation Grant Program

This section contains supplemental guidance specific to HMGP and outlines the information

necessary for both the applicant and subapplicant to apply for and manage HMGP awards.

A.1. HMGP: Request for Assistance

HMGP is authorized through a major disaster declaration. A governor,

285

tribal chief executive, or

equivalent, may request that HMGP assistance be available throughout the state, local, tribal or

territorial area or only in specific jurisdictions. Federally recognized tribes, through their tribal chief

executive,

286

may also submit a request for a disaster declaration within their impacted areas and

request that HMGP funding be made available to them under that declaration. For more information

about the declaration process and authorization of HMGP, refer to

4 Code of Federal Regulations

(CFR) Part 206, Subpart B, visit the Federal Emergency Management Agency (FEMA) “How a Disaster

Gets Declared” webpage, or seek assistance from the appropriate FEMA regional office.

The governor’s authorized representative or tribal authorized representative serves as the grant

administrator for all assistance provided under HMGP.

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The governor’s authorized representative,

tribal authorized representative or an executive authorized signature authority’s responsibilities

include providing technical advice and assistance to eligible subapplicants and/or subrecipients and

ensuring all potential subapplicants are aware of available assistance for the submission of all

documents necessary for the award.

A signed FEMA-State Agreement or FEMA-Tribal Agreement is required to carry out HMGP under a

disaster declaration. After execution of the agreement, the applicant becomes the recipient.

285

42 United States Code (U.S.C.) § 5122(5)

286

42 U.S.C. § 5122(12)

287

44 CFR § 206.436(b)

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Part 10. Program-Specific Guidance 196

A.2. HMGP: Administrative Plan

The HMGP Administrative Plan (Administrative Plan) is a procedural guide that details how the

recipient will administer HMGP awards and subawards. Recipients must have a current

Administrative Plan approved by FEMA before receiving HMGP assistance. The Administrative Plan

may become an annex or chapter of the state’s or tribe’s overall emergency response and operations

plan or comprehensive mitigation program strategy. At a minimum, the Administrative Plan must:

 Designate the agency that will act as recipient.

 Identify the applicant’s hazard mitigation officer or designated representative.

 Identify staffing requirements and resources, including a procedure for expanding staff

temporarily following a disaster, if necessary.

 Establish procedures to guide implementation activities, including recipient management

costs and distribution of subrecipient management costs.

 Establish procedures for monitoring and reporting on subrecipient management costs.

 Comply with any other requirements outlined in 44 CFR § 206.437

Recipients must complete the HMGP Administrative Plan Checklist and submit for FEMA’s review as

part of the review of the plan.

A.2.1. HMGP: ADMINISTRATIVE PLAN DESIGNATION OF RECIPIENT AND HAZARD

MITIGATION OFFICER

Typically, the agency designated to act as the recipient (i.e., state, tribe or territory) manages the

responsibilities for federal and state/tribal/territorial disaster assistance and is responsible for

meeting the mitigation planning requirement. Although a single agency may administer the

assistance, the governor may establish an interagency mitigation team to manage the

state/tribal/territorial mitigation program.

The recipient’s hazard mitigation officer, or designated representative, is typically responsible for

managing the recipient’s mitigation program, coordinating the mitigation team and developing and

implementing the hazard mitigation plan. The recipient’s hazard mitigation officer must also make

funds available for planning and provide assistance and training to local governments applying for

funds and developing mitigation plans.

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Recipients often rely on staff from the emergency

management agency or other state or tribal agencies to be the hazard mitigation officer’s staff

following a disaster.

288

44 CFR § 201.3

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Part 10. Program-Specific Guidance 197

A.2.2. HMGP: ADMINISTRATIVE PLAN STAFFING REQUIREMENTS AND THE MITIGATION

TEAM

The Administrative Plan must identify the positions and the minimum number of personnel needed

to implement HMGP. Key positions may include clerical, administrative and financial managers;

grants managers; engineers and/or architects; and mitigation, community and environmental

planners. These positions support mitigation planning and administration and the implementation of

mitigation activities. However, the staff organizational structure should remain flexible as it may be

augmented as needed with emergency management agency staff, staff from other agencies or

temporary staff or contractors hired to administer HMGP effectively. The hazard mitigation officer

should build capacity and resilience by using both community and mitigation planners. The

Administrative Plan should include a procedure for expanding staff resources and using HMGP

management costs.

The mitigation team may include representatives of agencies involved with emergency management,

natural resources, floodplain management, environmental issues, historic preservation and

archaeology, soil conservation, transportation, planning and zoning, housing and economic

development, building regulations, infrastructure regulations or construction, public information,

insurance, regional and local government, academia, businesses and nonprofit organizations. With

the varied backgrounds and specialized expertise of members, the team creates interagency,

interdisciplinary insight regarding risks and potential solutions. The interagency aspect of the team

can diffuse political pressure on the recipient agency and increase the availability of resources.

The mitigation team may support the recipient agency by:

 Developing a comprehensive mitigation implementation strategy based on the

FEMA-approved mitigation plan.

 Supporting development and implementation of state, local, tribal and territorial mitigation

plans.

 Communicating with local governments regarding mitigation priorities found in mitigation

plans and updates based on the disaster activity.

 Coordinating with community planning and capacity-building, recovery planning, HMGP and

Public Assistance mitigation.

 Building public and business/industry support for mitigation initiatives.

 Reviewing, assigning priority and recommending mitigation actions for implementation.

 Seeking assistance for implementation of mitigation measures using a wide range of public

and private resources in accordance with the National Mitigation Investment Strategy.

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Part 10. Program-Specific Guidance 198

A.2.3. HMGP: ADMINISTRATIVE PLAN PROCEDURES TO GUIDE IMPLEMENTATION

ACTIVITIES

The Administrative Plan must establish procedures to:

 Identify and notify potential subapplicants of the availability of HMGP assistance.

 Provide potential subapplicants with information on the application process, management

costs, program eligibility and deadlines.

 Determine subapplicant eligibility.

 Provide information, training and technical assistance on mitigation planning requirements.

 Provide information for environmental and historic preservation (EHP) and floodplain

management reviews in conformance with FEMA Directive 108-1

, Environmental Planning

and Historic Preservation Responsibilities and Program Requirements (Oct. 10, 2018).

 Process requests for advances of assistance and reimbursements.

 Monitor and evaluate the progress and completion of mitigation activities.

 Monitor subrecipient management costs.

 Review and approve cost overruns.

 Process appeals.

 Provide technical assistance as required to subrecipients.

 Comply with the administrative requirements of 44 CFR § 206.437 and 2 CFR Part 200

 Comply with audit requirements of 2 CFR Part 200, Subpart F.

 Provide Quarterly Progress Reports to FEMA on mitigation activities.

A.2.4. HMGP: ADMINISTRATIVE PLAN SUBMISSION AND APPROVAL DEADLINE

A recipient may forward a new or updated Administrative Plan to FEMA for approval at any time. A

recipient should review and update their plan annually and must review and update the plan

following a major disaster declaration if required to meet current policy guidance or changes to the

administration of the program. If a review indicates there will be no changes to the current

Administrative Plan, the recipient should notify FEMA within 90 calendar days of the major disaster

declaration.

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Part 10. Program-Specific Guidance 199

A.3. HMGP: Eligibility

Refer to Part 4 for details regarding HMGP eligible applicants, eligible subapplicants and eligible

activities.

As described in Part 4, private nonprofit organizations may act as the subapplicant for HMGP if they

own or operate a private nonprofit facility.

289

A qualified conservation organization as defined in 44

CFR § 80.3(i), is the only private nonprofit organization (that does not own or operate a nonprofit

facility) that is eligible to apply for acquisition or relocations for open space projects.

290

A.4. HMGP: Assistance Estimates

The amount of HMGP funding available to the applicant is based on the estimated total federal

assistance, subject to the sliding scale formula that FEMA provides for disaster recovery for each

disaster declaration.

291

FEMA will determine the assistance it will make available for HMGP by a “lock-in,” which will act as a

ceiling for assistance available to a recipient, including its subrecipients. The level of HMGP

assistance available for a given disaster is based on a percentage of the estimated total federal

assistance under the Robert T. Stafford Disaster Relief and Emergency Assistance Act

(Stafford

Act),

292

excluding administrative costs for each major disaster declaration.

293

FEMA will provide an initial 30-day estimate within 35 calendar days of the major disaster

declaration or soon thereafter, in conjunction with calculation of the preliminary amount(s) for

management costs. FEMA will provide a revised estimate approximately six months after the major

disaster declaration.

FEMA will establish the HMGP assistance ceiling for each disaster 12 months after the major

disaster declaration. This amount, also known as the lock-in value for HMGP, is the maximum FEMA

can obligate for eligible HMGP activities. The Office of the Chief Financial Officer (OCFO) will continue

to provide HMGP estimates before 12 months; however, these estimates will not represent a

minimum or floor amount.

Prior to 12 months, total obligations are limited to no more than 75% of any current estimate. Any

obligations above 75% of the current estimate prior to 12 months will require concurrence from the

FEMA regional administrator (or federal coordination officer with disaster recovery manager

authority) and the FEMA OCFO.

289

44 CFR § 206.434

290

44 CFR § 206.434(a)(2)

291

44 CFR § 206.432(b)

292

Public Law 100-707 (Nov. 23, 1988); amending the Disaster Relief Act of 1974, Public Law 93-288 (May 22, 1974)

293

44 CFR § 206.432(b)

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Part 10. Program-Specific Guidance 200

In circumstances when a major disaster declaration has resulted in significant fluctuations of

projected or actual disaster costs, FEMA, at the request of the recipient, may conduct an additional

review after the 12-month lock-in. The recipient must justify in writing to the FEMA regional

administrator any requests to change the amount of the lock-in or perform subsequent reviews. The

regional administrator will recommend to the OCFO whether to approve the change.

Changes to the lock-in will not be made without the approval of the OCFO. The OCFO may change the

amount of the lock-in if they determine that the projections or actuals used to determine the lock-in

were inaccurate enough that the change to the lock-in would be material, or for other reasons in their

discretion that may reasonably warrant such changes. The OCFO will not make such changes without

consultation with the recipient and the regional administrator.

FEMA cannot reopen the application period after it has closed even if there is an increase to the

ceiling amount. Any assistance for mitigation activities approved and obligated before the 12-month

lock-in will not be de-obligated when the lock-in is less than the previous estimate. Figure 7

outlines

the HMGP ceiling review process. For more information on extension requests, refer to Part 6.

Hazard Mitigation Assistance Program and Policy Guide

Part 10. Program-Specific Guidance 201

igure 7. HMGP Ceiling Review Process

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Part 10. Program-Specific Guidance 202

A.5. HMGP: Assistance Sliding Scale

The maximum amount of HMGP assistance available is calculated using a sliding scale formula

based on a percentage of the estimated total federal assistance under the Stafford Act, excluding

administrative costs for each major disaster declaration.

Applicants with a FEMA-approved state or tribal mitigation plan may receive:

 Up to 15% of the first $2 billion of the estimated aggregate amount of disaster assistance.

 Up to 10% for the next portion of the estimated aggregate amount more than $2 billion and

up to $10 billion.

 Up to 7.5% for the next portion of the estimated aggregate amount more than $10 billion

and up to $35.333 billion.

Applicants with a FEMA-approved state or tribal enhanced mitigation plan are eligible for HMGP

assistance not to exceed 20% of the estimated total federal assistance under the Stafford Act, up to

$35.333 billion of such assistance, excluding administrative costs authorized for the disaster.

Figure

8 highlights how the HMGP funding ceiling is generally calculated.

Figure 8. Standard Versus Enhanced Mitigation Plans Under HMGP

A.6. HMGP: Apportionment

The amount of HMGP assistance available under the disaster declaration will be apportioned among

the applicants if there is more than one applicant. For example, if a state and a federally recognized

tribe are applicants under the same disaster declaration, then the available HMGP assistance will be

Hazard Mitigation Assistance Program and Policy Guide

Part 10. Program-Specific Guidance 203

apportioned among the state and the federally recognized tribe. The apportionment is based on the

damage the tribe sustained on tribal land from the disaster.

A.7. HMGP: Timing of Obligation of Assistance

HMGP funds may be obligated for subawards submitted during the open application period and, in

limited circumstances, when the application period is closed and the period of performance is open

for cost overruns, budget changes, some project modifications or schedule changes. HMGP funds

must not, however, be obligated to fund new projects or scope expansions of the original projects

that may result in a new project. HMGP funds cannot be obligated for mitigation activities after the

application period and the period of performance have closed (i.e., during closeout and after

closeout of the award).

A.8. HMGP: Assistance Restrictions

Assistance restrictions are caps or restrictions on the amount of assistance that applicants may use

for specific activities under the HMGP ceiling amount. HMGP assistance restrictions include the

following:

 Advance assistance: Advance assistance is authorized by Section 404(e) of the Stafford

Act,

294

which allows advancing up to 25% of the HMGP ceiling or $10 million, whichever is

less. For more detail, refer to Part 11.B.

 5 Percent Initiative: Up to 5% of the recipient’s HMGP ceiling may be used for mitigation

measures that are difficult to evaluate against traditional program cost-effectiveness. For

more detail, refer to

Part 10.A.8.1.

 7 Percent planning: Up to 7% of the recipient’s HMGP ceiling may be used for mitigation

planning activities in compliance with

44 CFR 201.3(c)(4). For more detail, refer to Part

11.A.3.3.1.

 5 Percent Codes and Standards: Up to 5% of the recipient’s HMGP ceiling may be used for

codes and standards mitigation activities. For more detail, refer to

Part 11.E.2.4.1.

Figure 9 highlights how HMGP is broken down.

294

42 U.S.C. § 5170c

Hazard Mitigation Assistance Program and Policy Guide

Part 10. Program-Specific Guidance 204

Figure 9. HMGP Funding Breakdown

A.8.1. HMGP: THE 5 PERCENT INITIATIVE

Some mitigation activities are difficult to evaluate using FEMA-approved cost-effectiveness

methodologies. Up to 5% of the recipient’s HMGP ceiling may be set aside by the recipient to pay for

such activities. The 5 Percent Initiative funds cannot be used in situations where mitigation activities

can be evaluated under FEMA-approved cost-effectiveness methods but do not meet the required

Benefit-Cost Ratio.

A.8.1.1. HMGP: 5 Percent Initiative Eligibility

To be eligible for the 5 Percent Initiative, activities must:

 Be difficult to evaluate against traditional program cost-effectiveness criteria.

 Comply with all applicable HMGP eligibility criteria as well as with federal, state, and local

laws and ordinances.

 Be consistent with the goals and objectives of the relevant state, tribal or territorial (standard

or enhanced) mitigation plans and local mitigation plans.

 Be submitted for review with a narrative that indicates that there is a reasonable expectation

that future damage or loss of life or injury will be reduced or prevented by the activity.

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Part 10. Program-Specific Guidance 205

Activities that may be eligible under the 5 Percent Initiative include:

 The use, evaluation and application of new, unproven mitigation techniques, technologies,

methods, procedures or products.

 Purchase of equipment and systems for the purpose of warning residents of impending

hazards.

 Purchase of secondary power sources or related equipment, such as generator hookups.

 Hazard identification or mapping and related equipment for the implementation of mitigation

activities; however, mapping for the sole purpose of updating a Flood Insurance Rate Map

remains ineligible.

 Acquisition of geographic information system software, hardware and data used for

mitigation.

 Public awareness or education campaigns about mitigation.

 Evaluation of model building codes in support of future adoption and/or implementation.

A.8.1.2. HMGP: 5 Percent Initiative Closeout

The recipient will follow the closeout requirements for the mitigation activity that was funded under

the 5 Percent Initiative. For public outreach, hazard identification and hazard mapping activities, the

recipient should provide copies of the deliverables identified in the scope of work, including items

such as printed materials, course videos and presentations.

A.8.2. HMGP: 5 PERCENT CODES AND STANDARDS

Applicants may apply for up to 5% of the HMGP ceiling amount for codes and standards activities.

The 5 Percent Codes and Standards offers expanded eligibility for a variety of codes and standards

activities. This funding source must be used for codes and standards activities and may be paired

with the 5 Percent Initiative for a total of up to 10% of the HMGP ceiling amount.

A.9. HMGP: Management Costs

Management costs are indirect costs, direct administrative costs or other administrative expenses

associated with a specific project or mitigation activity. The amounts, allowable uses, and

procedures for HMGP management costs are established in Section 324 of the Stafford Act,

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42 U.S.C. § 5165b

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Part 10. Program-Specific Guidance 206

amended by Section 1215 of the Disaster Recovery Reform Act of 2018.

296

For more information on

eligible management costs activities, refer to Part 13.

Management costs are provided outside of, and separate from, the HMGP ceiling amount. The total

allowable management costs are up to 15%, of which up to 10% may be used by the recipient and

up to 5% by the subrecipient. The subrecipient cannot request more than 5% of the total amount of

the grant subaward. FEMA will obligate management cost assistance applied for by recipients and

subrecipients in accordance with strategic funds management. There is no additional cost share

requirement for HMGP management costs. For the recipient management cost calculation, the “total

amount of the HMGP award” means the total amount of contributions based on applications

submitted when the HMGP application period closes or when the total HMGP ceiling is determined,

whichever is later. The total amount of the HMGP award includes the 75% federal share plus the

required 25% non-federal share. In cases where the recipient submits subapplications totaling more

than the HMGP ceiling, FEMA will only calculate management costs on subapplications up to the

final HMGP ceiling amount. Figure 10

highlights h

ow HMGP management costs are calculated.

The recipient and subrecipients will be reimbursed for actual management costs incurred. All

assistance exceeding the incurred costs will be returned to FEMA.

Figure 10. HMGP Management Costs Breakdown

296

Public Law 115-254 (Oct. 5, 2018)

Hazard Mitigation Assistance Program and Policy Guide

Part 10. Program-Specific Guidance 207

FEMA will establish the amount of assistance that it will initially make available for management

costs based on point-in-time HMGP assistance projections. FEMA will provide preliminary

management costs—the 30-day estimate—no sooner than 35 calendar days after the date of the

major disaster declaration. This estimate is developed from the Disaster Projection Report and is

based on the HMGP ceiling amount. FEMA will revise the estimated amount at six months. FEMA will

determine the total management costs estimate 12 months after the date of the major disaster

declaration or after determination of the total HMGP grant award, whichever is later.

Recipients cannot receive an additional 5% for management costs if also acting as a subrecipient.

Management costs cannot be duplicated. However, other state and territorial agencies (other than

the agency designated in the award agreement) who submit subapplications may apply for

subrecipient management costs.

Additional information regarding specific management costs activities can be found in Part 13

A.9.1. HMGP: 30-DAY ESTIMATE

Upon receipt of the initial 30-day management costs estimate, recipients with a FEMA-approved

enhanced mitigation plan and who also have a Program Administration by States (PAS) designation

may apply to FEMA for 35% of the estimated amount(s). Other recipients may apply to FEMA for 25%

of the estimated amount(s).

A.9.2. HMGP: SIX-MONTH ESTIMATE

If the six-month management costs estimate increases beyond the 30-day estimate, and if the

recipient can justify a need for additional management costs before the HMGP ceiling is established,

the recipient may apply for available assistance. A recipient with an enhanced mitigation plan who

also has a PAS designation may apply for 75% of the available or remaining recipient management

costs. Other recipients may apply for 50% of the available or remaining recipient management costs.

A.9.3. HMGP: REQUESTING ADJUSTMENTS

Recipients may apply to FEMA for an adjustment in available assistance based on the 30-day or six-

month estimates—that is, if they need management costs more than the 30-day (35/25%) and six-

month (75/50%) percentage estimates. This option is intended for recipients that either do not have

sufficient capacity because of lack of assistance, staffing or other necessary expertise to satisfy

HMGP requirements or that have experienced significant disruption from a declared disaster or other

event that impacts their ability to complete HMGP activities.

Recipients must apply to FEMA for an adjustment, provide justification that they need an exception,

and complete one of the following:

 Provide a management plan that outlines how they will build state or tribal workforce

proficiency and experience in grants management, mitigation planning or application review.

This option is only available to recipients for whom FEMA has determined the degree of risk

Hazard Mitigation Assistance Program and Policy Guide

Part 10. Program-Specific Guidance 208

in making a federal award to and requires that special conditions be attached to the award

according to 2 CFR § 200.206.

 Enter into a PAS agreement if they meet program requirements.

A.9.4. HMGP: 12-MONTH ADJUSTMENT

The recipient is eligible to apply for the total management costs award subject to certain

withholdings 12 months after the major disaster declaration.

FEMA will provide management costs for subrecipients (through the recipient) upon the agency’s

approval of each subaward, up to 5% of each project cost. Subrecipients must meet application and

submission requirements.

A.9.5. HMGP: CLOSE OF APPLICATION PERIOD

If the recipient does not fully apply for the HMGP ceiling, FEMA must adjust the amount of available

or obligated management costs based on the total amount of subapplications submitted by the end

of the application period. If the HMGP ceiling is adjusted after the application period has closed,

FEMA may provide additional management costs based on budget amendments applied to existing

subapplications.

Regardless of when subawards are obligated, if the total amount of the award is adjusted for any

reason, FEMA will de-obligate management costs that exceed the 15% cap (10% for recipient and

5% for subrecipient) based on updated calculations at the end of the application period or if the

HMGP ceiling is adjusted, whichever is later.

A.10. HMGP: Application Period

The applicant must submit all HMGP subapplications (including recipient and subrecipient

management costs requests) to FEMA within 12 months of the date of the major disaster

declaration. Upon written request and justification from the recipient, FEMA may extend the

application submission timeline in 30- to 90-day increments not to exceed a total extension of 180

calendar days, for a total possible application period of 18 months, in the event of extraordinary

conditions.

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FEMA may extend the application period beyond 180 calendar days based on meeting the criteria of

Section 301 of the Stafford Act,

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which provides relief for the rare and extraordinary circumstance

when the magnitude of the event for which the extension is requested prevents the recipient from

meeting program administrative requirements. These requests will be considered on a case-by-case

basis.

297

44 CFR § 206.436

298

42 U.S.C. § 5141

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Part 10. Program-Specific Guidance 209

Extension requests must be submitted while the application period is still open. All extension

requests submitted by the recipient must:

 Demonstrate that the recipient has made substantial progress in implementing the

mitigation strategy and has submitted complete, eligible applications for a significant portion

of HMGP assistance. FEMA will not accept incomplete or placeholder applications.

 Include a detailed narrative justification for the extension request that must:

o Describe how the disaster created the conditions that prevented the recipient from

meeting the application period deadline.

o Document how HMGP was implemented consistent with the Administrative Plan

including successes, challenges and failures.

o Provide an implementation strategy and goals to use the remaining assistance including

a reasonable assessment of the additional time requested and an updated

Administrative Plan.

o Identify any technical assistance that can assist in addressing resource gaps and/or is

needed by the recipient to successfully implement the program.

 Provide a schedule of 30-day milestones and the associated goals for successful application

submission up to the HMGP ceiling. FEMA will require the recipient to provide monthly

updates to measure progress in implementing HMGP.

 Explain why any program support resources, including project scoping/advance assistance,

technical assistance or training that FEMA provided during the application period were

insufficient to successfully meet the application deadline.

If the HMGP ceiling amount is recalculated after the application period has closed, FEMA cannot

reopen the application period. If the application period is open, the recipient can submit a request to

extend the application period in accordance with Part 6

. The recipient must submit the request to

the FEMA associate administrator through the regional administrator or, if there is a joint field office,

through the federal coordinating officer. The regional administrator or federal coordinating officer will

provide their comments or concurrence and forward the request. To be considered, the applicant’s

inability to meet the HMGP application period deadline must have resulted from the event leading to

the major disaster declaration.

FEMA will not accept lack of capacity as a valid justification for an extension if the recipient has not

equested program support. For example, recipients must report problems, delays or adverse

conditions that weaken their ability to meet the timeline for the request for extension to be justified.

In addition, recipients must make efforts to address problems, delays or adverse conditions to have

adequate justification for FEMA to approve a request.

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A.11. HMGP: Cost Share and Global Match

HMGP awards are required to have at least a 25% non-federal cost share (excluding management

costs). The recipient may choose to meet the cost share requirement by ensuring a minimum 25%

non-federal share for the overall HMGP award rather than on an individual subaward basis. This

strategy is referred to as global match.

Global match allows flexibility in which the non-federal cost share does not need to be 25% for each

individual subaward. Instead, under the global match, the non-federal cost share for all the

recipient’s submitted subawards combined must equal 25% for the overall disaster. Global match

allows the recipient to use any cost share match that exceeds the minimum requirement (referred to

as overmatch) from certain subawards to alleviate the financial burden on other activities.

Recipients choosing this option must develop a cost share strategy as part of their Administrative

Plan for FEMA review and approval.

The Administrative Plan must include a cost share strategy that explains how the applicant will:

 Apply this approach fairly and impartially to all subapplicants.

 Monitor the cost share for the overall award throughout the period of performance.

 Address any cost share shortfalls that may occur during the period of performance and at

closeout.

If the non-federal cost share of the award is less than 25% of the total amount at closeout, FEMA will

recoup the amount of federal assistance needed to bring the cost share into compliance.

Insular areas including American Samoa, Guam, the Northern Mariana Islands and the U.S. Virgin

Islands may have a portion of their cost share waived if program requirements allow.

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For more

information, please refer to Part 4.L.

A.12. HMGP: Disaster Spend Plan

The HMGP Disaster Spend Plan (Spend Plan) is a forecasting tool that FEMA uses to evaluate the

assistance needs of HMGP during a disaster. FEMA manages the timing of HMGP project awards and

ensures assistance is available for obligation of approved activities.

It is critical that the recipient is an active participant in the Spend Plan. The recipient identifies

assistance priorities for activities, forecasts assistance needs for future months and revises

projections each month in coordination with FEMA. This process induces a more collaborative

working relationship between FEMA and the recipient.

299

48 U.S.C. § 1469a

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A.13. HMGP: Quarterly Progress Reports

FEMA distributes spreadsheets to recipients each quarter. The spreadsheets are prepopulated with

information pulled from the electronic application system to indicate the open, obligated activities

that require Quarterly Progress Reports. The recipient coordinates with their subrecipients to collect

project information to update the fields in the spreadsheet. The recipient then returns the Quarterly

Progress Reports to their FEMA region by the due date.

The recipient shall submit a Quarterly Progress Report for each award no more than 30 calendar

days after the quarter end date. Table 11

describes the Q

uarterly Progress Report due dates.

Table 11: HMGP Quarterly Progress Report Timing

Quarter Quarter Dates Report Due Dates

1 Oct. 1 – Dec. 31 Jan. 30

2 Jan. 1 – March 31 April 30

3 April 1 – June 30 July 30

4 July 1 – Sept. 30 Oct. 30

rogress reports should include:

 Reporting period,

including fiscal year and quarter.

 Project identification information, including disaster number, FEMA application identification,

project number, subrecipient name and project title.

 Significant activities and developments that have occurred or have shown progress during

the quarter, including a comparison of actual accomplishments to the work schedule

objectives established in the subaward.

 Percent completion and whether completion of work is on schedule; a discussion of any

problems, delays or adverse conditions that will impair the ability to meet the timelines

stated in the subaward; and anticipated completion date.

 For phased projects, if Phase I of a Phase II project is complete, the percent complete noted

as a percentage of the entire project (e.g., 50% or whatever is deemed appropriate by the

recipient), not 100%.

o If Phase II is not eligible and will therefore not move forward, the project is considered

100% complete. However, if Phase II is eligible/obligated, the Quarterly Progress Report

should reflect 100% only once the approved scope of work is completed under Phase II.

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Part 10. Program-Specific Guidance 212

 Status of costs, including whether the costs are unchanged, overrun or underrun. If there is a

change in cost status, the report should include a description of the change in the comment

column. The amount disbursed to the subrecipient by project should also be included. If

there is a change in cost status, the report should include a description of the change in the

comment column. The amount disbursed to the subrecipient by project should also be

included.

 A statement of whether a request to extend the award period of performance is anticipated,

provided in the comment column.

 The total recipient drawdown amount and most recent drawdown date, the total amount of

federal assistance disbursed, the subrecipient expenditure to date and the date of final

payment to subrecipient.

 The total number of properties acquired and their corresponding property identification

numbers (for acquisition projects).

 Additional information as required by FEMA to assess the progress of an award.

FEMA may suspend drawdowns from federal financial systems (e.g., Payment Management System

[SMARTLINK] or Payment and Reporting System [PARS]) if Quarterly Progress Reports are not

submitted on time.

A.14. HMGP: Appeal Process

An eligible applicant, subapplicant, recipient or subrecipient may appeal any FEMA determination

regarding applications or subapplications submitted for assistance under HMGP.

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The subjects of

these appeals include but are not limited to FEMA’s denial of an applicant/subapplicant eligibility,

mitigation plan requirements, application period extensions, EHP considerations, project or plan

eligibility, technical feasibility, cost-effectiveness, open space compatibility and closeout

determinations and de-obligations. Applicants, subapplicants, recipients or subrecipients may also

appeal the placement of conditions on the award and any remedy of non-compliance that FEMA may

take, including termination or suspension of the award.

FEMA will only consider written appeals that justify the request for reconsideration.

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The appeal

must be submitted according to the procedures outlined below. At any point in the appeal process,

the recipient may withdraw their appeal by submitting a written request to FEMA and notifying the

subapplicant/subrecipient. All second appeal decisions represent FEMA’s final administrative

decision.

302

300

44 CFR § 206.440

301

44 CFR § 206.440(a)

302

44 CFR § 206.440(e)(3)

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Part 10. Program-Specific Guidance 213

A.14.1. HMGP: CONTENT FOR FIRST AND SECOND APPEALS

The applicant/recipient and/or subapplicant/subrecipient must include the following in an appeal

request:

 All relevant documentation supporting their position. Such documentation may include scope

of work, budgets, EHP review, technical testimony, purchase receipts, before and/or after

photographs and changes to the application or other relevant information that may help

FEMA make a final decision.

 The specific amount of assistance (or amounts if there are multiple issues on appeal) in

dispute, as applicable.

 Citations to the provisions of law, regulation or policy (applicable to the respective disaster)

with which the applicant believes FEMA’s determination was inconsistent.

 Recipient’s recommendation, based on their review of the appeal from the

subapplicant/subrecipient.

A.14.2. HMGP: APPEAL DEADLINE

An appellant is the applicant, subapplicant, recipient or subrecipient that is appealing a FEMA

determination. Appellants must submit documentation within 60 calendar days after receiving the

initial written notice of FEMA’s determination on the action that is being appealed.

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Whether the appeal originated with the applicant/recipient or with a subapplicant/subrecipient, the

appeal must be submitted in writing to the FEMA regional administrator by the recipient. The

recipient must forward all appeals from a subapplicant/subrecipient with a written recommendation

to the regional administrator within 60 calendar days of receipt of the appeal.

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If either the applicant or recipient submits the appeal after the 60-day deadline, FEMA will deny the

appeal as untimely.

A.14.3. HMGP: APPEAL REVIEW

Upon receipt of the appeal, FEMA reviews the appeal content and uses the administrative record and

the laws, regulations and policies applicable to each case to analyze the appeal. FEMA may request

additional information via a Request for Information (RFI) to adequately adjudicate the appeal or

make its decision based on the documentation and information provided at the time of appeal

submission. Within 90 calendar days of receiving the appeal, FEMA takes one of the following

actions:

305

303

44 CFR § 206.440(c)

304

44 CFR § 206.440(c)(2)

305

44 CFR § 200.440(c)(3)

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Part 10. Program-Specific Guidance 214

 Requests additional information specifying the date FEMA must receive information. Within

90 calendar days of receiving the information (or within 90 calendar days of the expiration of

the deadline to respond), FEMA provides the appeal decision to the recipient.

 Submits the appeal to an independent expert or experts for technical review and

recommendations. Within 90 calendar days of receiving the technical review

recommendations, FEMA provides its appeal decision to the recipient.

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In either case, FEMA provides a written decision to the recipient using a method that confirms

receipt (through electronic application systems, return receipt mail, email with read-receipt

acknowledgement or other methods that confirm receipt).

A.14.4. HMGP: REQUEST FOR INFORMATION FOR APPEALS

If FEMA needs additional information, the agency will determine a date by which the information

must be provided. Within 90 calendar days following the receipt of the requested additional

information (or 90 calendar days after the information was due), FEMA will notify the recipient in

writing of the disposition of the appeal.

FEMA generally issues a RFI when it identifies specific documentation or information that, if

provided, might impact the outcome of the appeal or assist the agency in responding adequately to

the appeal.

A.14.5. HMGP: FIRST APPEAL PROCESS

The FEMA regional administrator is the decision-maker on first appeals.

307

Within 90 calendar days

following the receipt of an appeal, FEMA will notify the recipient in writing of either the appeal

decision or the need for additional information.

A.14.6. HMGP: SECOND APPEAL PROCESS

The second appeal provides an opportunity for appellants to dispute the appeal decision made by

the regional administrator. The assistant administrator for the Mitigation Directorate is the decision-

maker on second appeals.

308

The assistant administrator’s decision will be the final administrative

decision of FEMA.

309

Figure 11 outlines the second appeal process for HMGP.

306

44 CFR § 206.440(d)

307

44 CFR § 206.440(b)

308

44 CFR § 206.440(b)(2)

309

44 CFR § 206.440(e)(3)

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Part 10. Program-Specific Guidance 215

Figure 11. HMGP Second Appeal Process Flowchart

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Part 10. Program-Specific Guidance 216

A.14.6.1. HMGP: Second Appeal Actions -- Appellant

To begin the second appeal process, appellants must submit documentation to FEMA within 60

calendar days after receiving the initial notice of the action on the first appeal. When the appellant is

the subapplicant/subrecipient, the appeal must be submitted to the recipient prior to the expiration

of the 60-day period.

A.14.6.2. HMGP: Second Appeal Actions – Recipient

The recipient reviews the appeal and prepares a recommendation to submit to the FEMA regional

administrator. The appeal and supporting documentation must be forwarded to the regional

administrator within 60 calendar days of receipt of the second appeal. When the appellant is the

recipient, no recommendation is needed because the appeal acts as its disposition. Otherwise, the

recipient acts as the reviewer.

A.14.6.3. HMGP: Second Appeal Actions -- Region

Upon receipt of the appeal package from the recipient, the FEMA regional administrator will review

the package for regulatory requirements. Once completed, the regional administrator will forward the

appeal, along with a recommendation, to the associate administrator for the Mitigation Directorate.

An appeal verification package confirms that the appellant is eligible for a second appeal. As part of

the verification package, the region should prepare the following items to submit to FEMA

headquarters:

 A decision letter that documents the initial action taken by the region or recovery office

regarding the HMGP application or subapplication precedes the first appeal and usually

outlines the basis for denial.

 The set of first appeal documents submitted by the appellant opposing the decision letter.

 The recipient recommendation for first appeal, which documents the recipient’s position on

the first appeal (if applicable).

 A notice of the action that documents the first appeal decision of the FEMA regional

administrator, which is typically the action disputed in the second appeal.

 The set of second appeal documents submitted by the appellant opposing the notice of the

action (first appeal decision).

 An appeal recommendation from the regional administrator and/or recovery office that

documents the region’s preliminary review of the second appeal. If the appellant submits

supplemental information, the region should note these changes. No matter which office

(region or recovery office) provides the second appeal, the recommendation must

accompany the appeal submission to FEMA headquarters.

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A.14.6.4. HMGP: Second Appeal Actions -- FEMA Headquarters

Upon receipt from the region, FEMA headquarters will make an independent assessment of the

appeal. If all documentation is included, the assistant administrator for the Mitigation Directorate

notifies the recipient in writing of the disposition of the appeal within 90 calendar days. If additional

information is needed, regardless of an internal or external request, FEMA headquarters determines

a date by which the RFI must be returned. In cases when the appeal requires a highly technical

analysis, FEMA headquarters will consult an independent scientific or technical expert on the

subject. Once FEMA headquarters has completed the RFI and technical review processes, FEMA

headquarters notifies the recipient in writing of the disposition within 90 calendar days. The

assistant administrator for the Mitigation Directorate makes the final decision.

310

If the appeal deals

with a mitigation planning subaward, the assistant administrator will coordinate with the National

Mitigation Planning program.

A FEMA delay in issuing a decision beyond the applicable 90 or 180 calendar days does not compel

the FEMA regional administrator or associate administrator to decide in the appellant’s favor.

B. Hazard Mitigation Grant Program Post Fire

HMGP Post Fire assistance is available for areas that received a Fire Management Assistance Grant

(FMAG) declaration, even if no major disaster declaration was made. Section 420 of the Stafford Act

authorizes FEMA to provide assistance under its FMAG program for the mitigation, management and

control of any fire that threatens such destruction as would constitute a major disaster.

311

Whether

or not a major disaster is declared, the President may provide HMGP Post Fire assistance in

accordance with Section 404 of the Stafford Act in any area affected by a fire for which assistance

was provided under Section 420 of the Stafford Act.

312

Throughout the HMA Guide, unless specified otherwise in this section, activity development,

application, submission and grants management processes that apply to HMGP will also apply to

HMGP Post Fire. In addition, all eligible activities under HMGP are also eligible under HMGP Post

Fire.

B.1. HMGP Post Fire: Request for Assistance

Section 1204 of the Disaster Recovery Reform Act amended Section 404 of the Stafford Act to allow

FEMA to provide HMGP Post Fire assistance for hazard mitigation measures that substantially

reduce the risk of future damage, hardship, loss or suffering in any area affected by a fire for which

assistance was provided under Section 420 of the Stafford Act. Therefore, unlike HMGP, the

availability of HMGP Post Fire assistance is not contingent on a major disaster declaration and is

310

44 CFR § 206.440(e)(3)

311

42 U.S.C. § 5187

312

42 U.S.C. § 5170c

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Part 10. Program-Specific Guidance 218

instead triggered by an FMAG declaration.

313

Eligible activities may be outside of the declared area if

the risk reduction benefits include the declared county or counties (e.g., watershed mitigation). If

funding cannot be used in the declared areas, it may be made available statewide.

States, certain federally recognized tribes and territories that have received an FMAG declaration are

eligible to apply for assistance under HMGP Post Fire.

Federally recognized tribes have multiple options for applying for HMGP Post Fire. Under an FMAG

declaration made to a state or territory, federally recognized tribes with burned land from the FMAG

declared event may request an HMGP award as recipients. If a tribe chooses to be a recipient, the

tribe must notify FEMA of its intent to apply within 60 days of the state’s assistance notification as

noted in Part 10.B.4

. T

ribes (including federally recognized tribes) may also apply through the state

to FEMA as subapplicants. Subapplicants will follow the standard HMGP subapplicant procedures

consistent with program guidance including updates in effect at the time of the FMAG declaration.

A signed FEMA-

State Agreement or FEMA-Tribal Agreement is required to implement the HMGP Post

Fire program following FMAG declarations.

B.2. HMGP Post Fire: Administrative Plan

The HMGP Post Fire Administrative Plan (Administrative Plan) is a procedural guide that details how

the recipient will administer HMGP Post Fire awards and subawards. Recipients must have a current

Administrative Plan approved by FEMA before receiving HMGP Post Fire assistance. The

Administrative Plan may become an annex or chapter of the state’s or tribe’s overall emergency

response and operations plan or comprehensive mitigation program strategy.

At a minimum, the Administrative Plan must:

 Designate the agency that will act as recipient.

 Identify the applicant’s hazard mitigation officer or designated representative.

 Identify staffing requirements and resources, including a procedure for expanding staff

temporarily following a disaster, if necessary.

 Establish procedures to guide implementation activities, including recipient management

costs and distribution of subrecipient management costs.

 Establish procedures for monitoring and reporting on subrecipient management costs.

 Comply with any other requirements outlined in 44 CFR § 206.437

313

44 CFR § 204.21

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Part 10. Program-Specific Guidance 219

Recipients must complete the HMGP Administrative Plan Checklist as part of the review of the plan.

B.2.1. HMGP POST FIRE: ADMINISTRATIVE PLAN DESIGNATION OF RECIPIENT AND

HAZARD MITIGATION OFFICER

Typically, the agency designated to act as the recipient (i.e., state, tribe or territory) manages the

responsibilities for federal and state/tribal/territorial disaster assistance and is responsible for

meeting the mitigation planning requirement. Although a single agency may administer the

assistance, the governor may establish an interagency mitigation team to manage the

state/tribal/territorial mitigation program.

The recipient’s hazard mitigation officer, or designated representative, is typically responsible for

managing the recipient’s mitigation program, coordinating the mitigation team and developing and

implementing the hazard mitigation plan. The recipient’s hazard mitigation officer must also make

funds available for planning and provide assistance and training to local governments applying for

funds and developing mitigation plans.

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Recipients often rely on staff from the emergency

management agency or other state or tribal agencies to be the hazard mitigation officer’s staff

following a disaster.

B.2.2. HMGP POST FIRE: ADMINISTRATIVE PLAN STAFFING REQUIREMENTS AND THE

MITIGATION TEAM

The Administrative Plan must identify the positions and the minimum number of personnel needed

to implement HMGP Post Fire. Key positions may include clerical, administrative and financial

managers; grants managers; engineers and/or architects; and mitigation, community and

environmental planners. These positions support mitigation planning and administration and the

implementation of mitigation activities. However, the staff organizational structure should remain

flexible as it may be augmented as needed with emergency management agency staff, staff from

other agencies or temporary staff or contractors hired to administer HMGP Post Fire effectively. The

hazard mitigation officer should build capacity and resilience by using both community and

mitigation planners. The Administrative Plan should include a procedure for expanding staff

resources and using HMGP Post Fire management costs.