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

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

                           Subpart A--General

Sec.
206.1  Purpose.
206.2  Definitions.

[[Page 415]]

206.3  Policy.
206.4  State emergency plans.
206.5  Assistance by other Federal agencies.
206.6  Donation or loan of Federal equipment and supplies.
206.7  Implementation of assistance from other Federal agencies.
206.8  Reimbursement of other Federal agencies.
206.9  Nonliability.
206.10  Use of local firms and individuals.
206.11  Nondiscrimination in disaster assistance.
206.12  Use and coordination of relief organizations.
206.13  Standards and reviews.
206.14  Criminal and civil penalties.
206.15  Recovery of assistance.
206.16  Audit and investigations.
206.17  Effective date.
206.18-206.30  [Reserved]

                   Subpart B--The Declaration Process

206.31  Purpose.
206.32  Definitions.
206.33  Preliminary damage assessment.
206.34  Request for utilization of Department of Defense (DOD) 
          resources.
206.35  Requests for emergency declarations.
206.36  Requests for major disaster declarations.
206.37  Processing requests for declarations of a major disaster or 
          emergency.
206.38  Presidential determination.
206.39  Notification.
206.40  Designation of affected areas and eligible assistance.
206.41  Appointment of disaster officials.
206.42  Responsibilities of coordinating officers.
206.43  Emergency support teams.
206.44  FEMA-State Agreements.
206.45  Loans of non-Federal share.
206.46  Appeals.
206.47  Cost-share adjustments.
206.48  Factors considered when evaluating a Governor's request for 
          major disaster declaration.
206.49-206.60  [Reserved]

                     Subpart C--Emergency Assistance

206.61  Purpose.
206.62  Available assistance.
206.63  Provision of assistance.
206.64  Coordination of assistance.
206.65  Cost sharing.
206.66  Limitation on expenditures.
206.67  Requirement when limitation is exceeded.
206.68-206.100  [Reserved]

       Subpart D--Federal Assistance to Individuals and Households

206.101  Temporary housing assistance for emergencies and major 
          disasters declared on or before October 14, 2002.
206.102-206.109  [Reserved]
206.110  Federal assistance to individuals and households.
206.111  Definitions.
206.112  Registration period.
206.113  Eligibility factors.
206.114  Criteria for continued assistance.
206.115  Appeals.
206.116  Recovery of funds.
206.117  Housing assistance.
206.118  Disposal of housing units.
206.119  Financial assistance to address other needs.
206.120  State administration of other needs assistance.
206.121-206.130  [Reserved]

             Subpart E--Individual and Family Grant Programs

206.131  Individual and Family Grant Program for major disasters 
          declared on or before October 14, 2002.
206.132-206.140  [Reserved]

                 Subpart F--Other Individual Assistance

206.141  Disaster unemployment assistance.
206.142-206.150  [Reserved]
206.151  Food commodities.
206.152-206.160  [Reserved]
206.161  Relocation assistance.
206.162-206.163  [Reserved]
206.164  Disaster legal services.
206.165-206.170  [Reserved]
206.171  Crisis counseling assistance and training.
206.172-206.180  [Reserved]
206.181  Use of gifts and bequests for disaster assistance purposes.
206.182-206.190  [Reserved]
206.191  Duplication of benefits.
206.192-206.199  [Reserved]

           Subpart G--Public Assistance Project Administration

206.200  General.
206.201  Definitions used in this subpart.
206.202  Application procedures.
206.203  Federal grant assistance.
206.204  Project performance.
206.205  Payment of claims.
206.206  Appeals.
206.207  Administrative and audit requirements.
206.208  Direct Federal assistance.
206.209-206.219  [Reserved]

                Subpart H--Public Assistance Eligibility

206.220  General.

[[Page 416]]

206.221  Definitions.
206.222  Applicant eligibility.
206.223  General work eligibility.
206.224  Debris removal.
206.225  Emergency work.
206.226  Restoration of damaged facilities.
206.227  Snow assistance.
206.228  Allowable costs.
206.229-206.249  [Reserved]

           Subpart I--Public Assistance Insurance Requirements

206.250  General.
206.251  Definitions.
206.252  Insurance requirements for facilities damaged by flood.
206.253  Insurance requirements for facilities damaged by disasters 
          other than flood.
206.254-206.339  [Reserved]

                Subpart J--Coastal Barrier Resources Act

206.340  Purpose of subpart.
206.341  Policy.
206.342  Definitions.
206.343  Scope.
206.344  Limitations on Federal expenditures.
206.345  Exceptions.
206.346  Applicability to disaster assistance.
206.347  Requirements.
206.348  Consultation.
206.349  Consistency determinations.
206.350-206.359  [Reserved]

                   Subpart K--Community Disaster Loans

206.360  Purpose.
206.361  Loan program.
206.362  Responsibilities.
206.363  Eligibility criteria.
206.364  Loan application.
206.365  Loan administration.
206.366  Loan cancellation.
206.367  Loan repayment.
206.368-206.389  [Reserved]

                 Subpart L--Fire Suppression Assistance

206.390  General.
206.391  FEMA-State Agreement.
206.392  Request for assistance.
206.393  Providing assistance.
206.394  Cost eligibility.
206.395  Grant administration.
206.396-206.399  [Reserved]

                      Subpart M--Minimum Standards

206.400  General.
206.401  Local standards.
206.402  Compliance.

               Subpart N--Hazard Mitigation Grant Program

206.430  General.
206.431  Definitions.
206.432  Federal grant assistance.
206.433  State responsibilities.
206.434  Eligibility.
206.435  Project identification and selection criteria.
206.436  Application procedures.
206.437  State administrative plan.
206.438  Project management.
206.439  Allowable costs.
206.440  Appeals.

    Authority: Robert T. Stafford Disaster Relief and Emergency 
Assistance Act, 42 U.S.C. 5121-5206; Reorganization Plan No. 3 of 1978, 
43 FR 41943, 3 CFR, 1978 Comp., p. 329; E.O. 12127, 44 FR 19367, 3 CFR, 
1979 Comp., p. 376; E.O. 12148, 44 FR 43239, 3 CFR, 1979 Comp., p. 412; 
and E.O. 12673, 54 FR 12571, 3 CFR, 1989 Comp., p. 214.

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

                           Subpart A--General

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

Sec. 206.1  Purpose.

    (a) Purpose. The purpose of this subpart is to prescribe the 
policies and procedures to be followed in implementing those sections of 
Public Law 93-288, as amended, delegated to the Director, Federal 
Emergency Management Agency (FEMA). The rules in this subpart apply to 
major disasters and emergencies declared by the President on or after 
November 23, 1988, the date of enactment of the Robert T. Stafford 
Disaster Relief and Emergency Assistance Act, 42 U.S.C. 5121 et seq.
    (b) Prior regulations. Prior regulations relating to major disasters 
and emergencies declared by the President before November 23, 1988 were 
published in 44 CFR part 205 (see 44 CFR part 205 as contained in the 
CFR edition revised as of October 1, 1994).

[59 FR 53363, Oct. 24, 1994]

Sec. 206.2  Definitions.

    (a) General. The following definitions have general applicability 
throughout this part:
    (1) The Stafford Act: The Robert T. Stafford Disaster Relief and 
Emergency Assistance Act, Public Law 93-288, as amended.

[[Page 417]]

    (2) Applicant: Individuals, families, States and local governments, 
or private nonprofit organizations who apply for assistance as a result 
of a declaration of a major disaster or emergency.
    (3) Associate Director or Executive Associate Director:
    (i) Unless otherwise specified in subparts A through K of this part, 
the Associate Director or Assistant Director of the Readiness, Response 
and Recovery Directorate, or his/her designated representative.
    (ii) Unless otherwise specified in subparts M and N of this part, 
the Associate Director or Executive Associate Director of the Mitigation 
Directorate, or his/her designated representative.
    (4) Concurrent, multiple major disasters: In considering a request 
for an advance, the term concurrent multiple major disasters means major 
disasters which occur within a 12-month period immediately preceding the 
major disaster for which an advance of the non-Federal share is 
requested pursuant to section 319 of the Stafford Act.
    (5) Contractor: Any individual, partnership, corporation, agency, or 
other entity (other than an organization engaged in the business of 
insurance) performing work by contract for the Federal Government or a 
State or local agency.
    (6) Designated area: Any emergency or major disaster-affected 
portion of a State which has been determined eligible for Federal 
assistance.
    (7) Director: The Director, FEMA.
    (8) Disaster Recovery Manager (DRM): The person appointed to 
exercise the authority of a Regional Director for a particular emergency 
or major disaster.
    (9) Emergency: Any occasion or instance for which, in the 
determination of the President, Federal assistance is needed to 
supplement State and local efforts and capabilities to save lives and to 
protect property and public health and safety, or to lessen or avert the 
threat of a catastrophe in any part of the United States.
    (10) Federal agency: Any department, independent establishment, 
Government corporation, or other agency of the executive branch of the 
Federal Government, including the United States Postal Service, but 
shall not include the American National Red Cross.
    (11) Federal Coordinating Officer (FCO): The person appointed by the 
Director, or in his absence, the Deputy Director, or alternatively the 
Associate Director, to coordinate Federal assistance in an emergency or 
a major disaster.
    (12) Governor: The chief executive of any State or the Acting 
Governor.
    (13) Governor's Authorized Representative (GAR): The person 
empowered by the Governor to execute, on behalf of the State, all 
necessary documents for disaster assistance.
    (14) Hazard mitigation: Any cost effective measure which will reduce 
the potential for damage to a facility from a disaster event.
    (15) Individual assistance: Supplementary Federal assistance 
provided under the Stafford Act to individuals and families adversely 
affected by a major disaster or an emergency. Such assistance may be 
provided directly by the Federal Government or through State or local 
governments or disaster relief organizations. For further information, 
see subparts D, E, and F of these regulations.
    (16) Local government: Any county, city, village, town, district, or 
other political subdivision of any State; any Indian tribe or authorized 
tribal organization; any Alaska Native village or organization; and 
includes any rural community, unincorporated town or village, or other 
public entity for which an application for assistance is made by a State 
or political subdivision thereof.
    (17) Major disaster: Any natural catastrophe (including any 
hurricane, tornado, storm, high water, winddriven water, tidal wave, 
tsunami, earthquake, volcanic eruption, landslide, mudslide, snowstorm, 
or drought), or, regardless of cause, any fire, flood, or explosion, in 
any part of the United States, which in the determination of the 
President causes damage of sufficient severity and magnitude to warrant 
major disaster assistance under this Act to supplement the efforts and 
available resources of States, local governments, and disaster relief 
organizations in alleviating the damage,

[[Page 418]]

loss, hardship, or suffering caused thereby.
    (18) Mission assignment: Work order issued to a Federal agency by 
the Regional Director, Associate Director, or Director, directing 
completion by that agency of a specified task and citing funding, other 
managerial controls, and guidance.
    (19) Private nonprofit organization: Any nongovernmental agency or 
entity that currently has:
    (i) An effective ruling letter from the U.S. Internal Revenue 
Service granting tax exemption under section 501 (c), (d), or (e) of the 
Internal Revenue Code of 1954; or
    (ii) Satisfactory evidence from the State that the organization or 
entity is a nonprofit one organized or doing business under State law.
    (20) Public Assistance: Supplementary Federal assistance provided 
under the Stafford Act to State and local governments or certain 
private, nonprofit organizations other than assistance for the direct 
benefit of individuals and families. For further information, see 
subparts G and H of this part. Fire Management Assistance Grants under 
section 420 of the Stafford Act are also considered Public Assistance. 
See subpart K of this part and part 204 of this chapter.
    (21) Regional Director: A director of a regional office of FEMA, or 
his/her designated representative. As used in these regulations, 
Regional Director also means the Disaster Recovery Manager who has been 
appointed to exercise the authority of the Regional Director for a 
particular emergency or major disaster.
    (22) State: Any State of the United States, the District of 
Columbia, Puerto Rico, the Virgin Islands, Guam, American Samoa, the 
Trust Territory of the Pacific Islands, the Commonwealth of the Northern 
Mariana Islands, the Federated States of Micronesia, or the Republic of 
the Marshall Islands.
    (23) State Coordinating Officer (SCO): The person appointed by the 
Governor to act in cooperation with the Federal Coordinating Officer to 
administer disaster recovery efforts.
    (24) State emergency plan: As used in section 401 or section 501 of 
the Stafford Act means that State plan which is designated specifically 
for State-level response to emergencies or major disasters and which 
sets forth actions to be taken by the State and local governments, 
including those for implementing Federal disaster assistance.
    (25) Temporary housing: Temporary accommodations provided by the 
Federal Government to individuals or families whose homes are made 
unlivable by an emergency or a major disaster.
    (26) United States: The 50 States, the District of Columbia, Puerto 
Rico, the Virgin Islands, Guam, American Samoa, the Trust Territory of 
the Pacific Islands, and the Northern Mariana Islands.
    (27) Voluntary organization: Any chartered or otherwise duly 
recognized tax-exempt local, State, or national organization or group 
which has provided or may provide needed services to the States, local 
governments, or individuals in coping with an emergency or a major 
disaster.
    (b) Additional definitions. Definitions which apply to individual 
subparts are found in those subparts.

[54 FR 11615, Mar. 21, 1989, as amended at 63 FR 17110, Apr. 8, 1998; 66 
FR 57352, 57353, Nov. 14, 2001]

Sec. 206.3  Policy.

    It is the policy of FEMA to provide an orderly and continuing means 
of assistance by the Federal Government to State and local governments 
in carrying out their responsibilities to alleviate the suffering and 
damage that result from major disasters and emergencies by:
    (a) Providing Federal assistance programs for public and private 
losses and needs sustained in disasters;
    (b) Encouraging the development of comprehensive disaster 
preparedness and assistance plans, programs, capabilities, and 
organizations by the States and local governments;
    (c) Achieving greater coordination and responsiveness of disaster 
preparedness and relief programs;
    (d) Encouraging individuals, States, and local governments to obtain 
insurance coverage and thereby reduce their dependence on governmental 
assistance; and

[[Page 419]]

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

Sec. 206.4  State emergency plans.

    The State shall set forth in its emergency plan all responsibilities 
and actions specified in the Stafford Act and these regulations that are 
required of the State and its political subdivisions to prepare for and 
respond to major disasters and emergencies and to facilitate the 
delivery of Federal disaster assistance. Although not mandatory, prior 
to the adoption of the final plan, the State is encouraged to circulate 
the plan to local governments for review and comment.

[55 FR 2288, Jan. 23, 1990, 55 FR 5458, Feb. 15, 1990]

Sec. 206.5  Assistance by other Federal agencies.

    (a) In any declared major disaster, the Associate Director or the 
Regional Director may direct any Federal agency to utilize its 
authorities and the resources granted to it under Federal law (including 
personnel, equipment, supplies, facilities, and managerial, technical, 
and advisory services) to support State and local assistance efforts.
    (b) In any declared emergency, the Associate Director or the 
Regional Director may direct any Federal agency to utilize its 
authorities and the resources granted to it under Federal law (including 
personnel, equipment, supplies, facilities, and managerial, technical, 
and advisory services) to support emergency efforts by State and local 
governments to save lives; protect property, public health and safety; 
and lessen or avert the threat of a catastrophe.
    (c) In any declared major disaster or emergency, the Associate 
Director or the Regional Director may direct any Federal agency to 
provide emergency assistance necessary to save lives and to protect 
property, public health, and safety by:
    (1) Utilizing, lending, or donating to State and local governments 
Federal equipment, supplies, facilities, personnel, and other resources, 
other than the extension of credit, for use or distribution by such 
governments in accordance with the purposes of this Act;
    (2) Distributing medicine, food, and other consumable supplies; or
    (3) Performing work or services to provide emergency assistance 
authorized in the Stafford Act.
    (d) Disaster assistance by other Federal agencies is subject to the 
coordination of the FCO. Federal agencies shall provide any reports or 
information about disaster assistance rendered under the provisions of 
these regulations or authorities independent of the Stafford Act, that 
the FCO or Regional Director considers necessary and requests from the 
agencies.
    (e) Assistance furnished by any Federal agency under paragraphs (a), 
(b), or (c) of this section is subject to the criteria provided by the 
Associate Director under these regulations.
    (f) Assistance under paragraphs (a), (b), or (c) of this section, 
when directed by the Associate Director or Regional Director, does not 
apply to nor shall it affect the authority of any Federal agency to 
provide disaster assistance independent of the Stafford Act.
    (g) In carrying out the purposes of the Stafford Act, any Federal 
agency may accept and utilize, with the consent of the State or local 
government, the services, personnel, materials, and facilities of any 
State or local government, agency, office, or employee. Such utilization 
shall not make such services, materials, or facilities Federal in nature 
nor make the State or local government or agency an arm or agent of the 
Federal Government.
    (h) Any Federal agency charged with the administration of a Federal 
assistance program may, if so requested by the applicant State or local 
authorities, modify or waive, for a major disaster, such administrative 
conditions for assistance as would otherwise prevent the giving of 
assistance under such programs if the inability to meet such conditions 
is a result of the major disaster.

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

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

[[Page 420]]

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

Sec. 206.7  Implementation of assistance from other Federal agencies.

    All directives, known as mission assignments, to other Federal 
agencies shall be in writing, or shall be confirmed in writing if made 
orally, and shall identify the specific task to be performed and the 
requirements or criteria to be followed. If the Federal agency is to be 
reimbursed, the letter will also contain a dollar amount which is not to 
be exceeded in accomplishing the task without prior approval of the 
issuing official.

Sec. 206.8  Reimbursement of other Federal agencies.

    (a) Assistance furnished under Sec. 206.5 (a) or (b) of this subpart 
may be provided with or without compensation as considered appropriate 
by the Associate Director or Regional Director.
    (b) The Associate Director or the Regional Director may not approve 
reimbursement of costs incurred while performing work pursuant to 
disaster assistance authorities independent of the Stafford Act.
    (c) Expenditures eligible for reimbursement. The Associate Director 
or the Regional Director may approve reimbursement of the following 
costs which are incurred in providing requested assistance.
    (1) Overtime, travel, and per diem of permanent Federal agency 
personnel.
    (2) Wages, travel, and per diem of temporary Federal agency 
personnel assigned solely to performance of services directed by the 
Associate Director or the Regional Director in the major disaster or 
emergency area designated by the Regional Director.
    (3) Travel and per diem of Federal military personnel assigned 
solely to the performance of services directed by the Associate Director 
or the Regional Director in the major disaster or emergency area 
designated by the Regional Director.
    (4) Cost of work, services, and materials procured under contract 
for the purposes of providing assistance directed by the Associate 
Director or the Regional Director.
    (5) Cost of materials, equipment, and supplies (including 
transportation, repair, and maintenance) from regular stocks used in 
providing directed assistance.
    (6) All costs incurred which are paid from trust, revolving, or 
other funds, and whose reimbursement is required by law.
    (7) Other costs submitted by an agency with written justification or 
otherwise agreed to in writing by the Associate Director or the Regional 
Director and the agency.
    (d) Procedures for reimbursement. Federal agencies performing work 
under a mission assignment will submit requests for reimbursement, as 
follows:
    (1) Federal agencies may submit requests for reimbursement of 
amounts greater than $1,000 at any time. Requests for lesser amounts may 
be submitted only quarterly. An agency shall submit a final accounting 
of expenditures after completion of the agency's work under each 
directive for assistance. The time limit and method for submission of 
reimbursement requests will be stipulated in the mission assignment 
letter.
    (2) An agency shall document its request for reimbursement with 
specific details on personnel services, travel, and all other expenses 
by object class as specified in OMB Circular A-12 and by any other 
subobject class used in the agency's accounting system. Where contracts 
constitute a significant portion of the billings, the agency shall 
provide a listing of individual contracts and their associated costs.
    (3) Reimbursement requests shall cite the specific mission 
assignment under which the work was performed, and the

[[Page 421]]

major disaster or emergency identification number. Requests for 
reimbursement of costs incurred under more than one mission assignment 
may not be combined for billing purposes.
    (4) Unless otherwise agreed, an agency shall direct all requests for 
reimbursement to the Regional Director of the region in which the costs 
were incurred.
    (5) A Federal agency requesting reimbursement shall retain all 
financial records, supporting documents, statistical records, and other 
records pertinent to the provision of services or use of resources by 
that agency. These materials shall be accessible to duly authorized 
representatives of FEMA and the U.S. Comptroller General, for the 
purpose of making audits, excerpts, and transcripts, for a period of 3 
years starting from the date of submission of the final billing.

Sec. 206.9  Nonliability.

    The Federal Government shall not be liable for any claim based upon 
the exercise or performance of, or the failure to exercise or perform a 
discretionary function or duty on the part of a Federal agency or an 
employee of the Federal Government in carrying out the provisions of the 
Stafford Act.

Sec. 206.10  Use of local firms and individuals.

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

Sec. 206.11  Nondiscrimination in disaster assistance.

    (a) Federal financial assistance to the States or their political 
subdivisions is conditioned on full compliance with 44 CFR part 7, 
Nondiscrimination in Federally-Assisted Programs.
    (b) All personnel carrying out Federal major disaster or emergency 
assistance functions, including the distribution of supplies, the 
processing of the applications, and other relief and assistance 
activities, shall perform their work in an equitable and impartial 
manner, without discrimination on the grounds of race, color, religion, 
nationality, sex, age, or economic status.
    (c) As a condition of participation in the distribution of 
assistance or supplies under the Stafford Act, or of receiving 
assistance under the Stafford Act, government bodies and other 
organizations shall provide a written assurance of their intent to 
comply with regulations relating to nondiscrimination.
    (d) The agency shall make available to employees, applicants, 
participants, beneficiaries, and other interested parties such 
information regarding the provisions of this regulation and its 
applicability to the programs or activities conducted by the agency, and 
make such information available to them in such manner as the head of 
the agency finds necessary to apprise such persons of the protections 
against discrimination assured them by the Act and this regulation.

Sec. 206.12  Use and coordination of relief organizations.

    (a) In providing relief and assistance under the Stafford Act, the 
FCO or Regional Director may utilize, with their consent, the personnel 
and facilities of the American National Red Cross, the Salvation Army, 
the Mennonite Disaster Service, and other voluntary organizations in the 
distribution of medicine, food, supplies, or other items, and in the 
restoration, rehabilitation, or reconstruction of community services and 
essential facilities, whenever the FCO or Regional Director finds that 
such utilization is necessary.
    (b) The Associate Director is authorized to enter into agreements 
with the American Red Cross, The Salvation Army, the Mennonite Disaster 
Service, and other voluntary organizations engaged in providing relief 
during and after a major disaster or emergency. Any agreement shall 
include provisions

[[Page 422]]

assuring that use of Federal facilities, supplies, and services will be 
in compliance with Sec. 206.11, Nondiscrimination in Disaster 
Assistance, and Sec. 206.191, Duplication of Benefits, of these 
regulations and such other regulations as the Associate Director may 
issue. The FCO may coordinate the disaster relief activities of the 
voluntary organizations which agree to operate under his/her direction.
    (c) Nothing contained in this section shall be construed to limit or 
in any way affect the responsibilities of the American National Red 
Cross as stated in Public Law 58-4.

Sec. 206.13  Standards and reviews.

    (a) The Associate Director shall establish program standards and 
assess the efficiency and effectiveness of programs administered under 
the Stafford Act by conducting annual reviews of the activities of 
Federal agencies and State and local governments involved in major 
disaster or emergency response efforts.
    (b) In carrying out this provision, the Associate Director or 
Regional Director may direct Federal agencies to submit reports relating 
to their disaster assistance activities. The Associate Director or the 
Regional Director may request similar reports from the States relating 
to these activities on the part of State and local governments. 
Additionally, the Associate Director or Regional Director may conduct 
independent investigations, studies, and evaluations as necessary to 
complete the reviews.

[55 FR 2288, Jan. 23, 1990; 55 FR 5458, Feb. 15, 1990]

Sec. 206.14  Criminal and civil penalties.

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

Sec. 206.15  Recovery of assistance.

    (a) Party liable. Any person who intentionally causes a condition 
for which Federal assistance is provided under this Act or under any 
other Federal law as a result of a declaration of a major disaster or 
emergency under this Act shall be liable to the United States for the 
reasonable costs incurred by the United States in responding to such 
disaster or emergency to the extent that such costs are attributable to 
the intentional act or omission of such person which caused such 
condition. Such action shall be brought in an appropriate United States 
District Court.
    (b) Rendering of care. A person shall not be liable under this 
section for costs incurred by the United States as a result of actions 
taken or omitted by such person in the course of rendering care or 
assistance in response to a major disaster or emergency.

Sec. 206.16  Audit and investigations.

    (a) Subject to the provisions of chapter 75 of title 31, United 
States Code, and 44 CFR part 14, relating to requirements for single 
audits, the Associate Director or Regional Director shall conduct audits 
and investigations as necessary to assure compliance with the Stafford 
Act, and in connection therewith may question such persons as may be 
necessary to carry out such audits and investigations.
    (b) For purposes of audits and investigations under this section, 
FEMA or State auditors, the Governor's Authorized Representative, the 
Regional Director, the Associate Director, and the Comptroller General 
of the United

[[Page 423]]

States, or their duly authorized representatives, may inspect any books, 
documents, papers, and records of any person relating to any activity 
undertaken or funded under the Stafford Act.

Sec. 206.17  Effective date.

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

Secs. 206.18-206.30  [Reserved]

                   Subpart B--The Declaration Process

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

Sec. 206.31  Purpose.

    The purpose of this subpart is to describe the process leading to a 
Presidential declaration of a major disaster or an emergency and the 
actions triggered by such a declaration.

Sec. 206.32  Definitions.

    All definitions in the Stafford Act and in Sec. 206.2 apply. In 
addition, the following definitions apply:
    (a) Appeal: A request for reconsideration of a determination on any 
action related to Federal assistance under the Stafford Act and these 
regulations. Specific procedures for appeals are contained in the 
relevant subparts of these regulations.
    (b) Commitment: A certification by the Governor that the State and 
local governments will expend a reasonable amount of funds to alleviate 
the effects of the major disaster or emergency, for which no Federal 
reimbursement will be requested.
    (c) Disaster Application Center: A center established in a 
centralized location within the disaster area for individuals, families, 
or businesses to apply for disaster aid.
    (d) FEMA-State Agreement: A formal legal document stating the 
understandings, commitments, and binding conditions for assistance 
applicable as the result of the major disaster or emergency declared by 
the President.
    (e) Incident: Any condition which meets the definition of major 
disaster or emergency as set forth in Sec. 206.2 which causes damage or 
hardship that may result in a Presidential declaration of a major 
disaster or an emergency.
    (f) Incident period: The time interval during which the disaster-
causing incident occurs. No Federal assistance under the Act shall be 
approved unless the damage or hardship to be alleviated resulted from 
the disaster-causing incident which took place during the incident 
period or was in anticipation of that incident. The incident period will 
be established by FEMA in the FEMA-State Agreement and published in the 
Federal Register.

Sec. 206.33  Preliminary damage assessment.

    The preliminary damage assessment (PDA) process is a mechanism used 
to determine the impact and magnitude of damage and the resulting unmet 
needs of individuals, businesses, the public sector, and the community 
as a whole. Informtion collected is used by the State as a basis for the 
Governor's request, and by FEMA to document the recommendation made to 
the President in response to the Governor's request. It is in the best 
interest of all parties to combine State and Federal personnel resources 
by performing a joint PDA prior to the initiation of a Governor's 
request, as follows.
    (a) Preassessment by the State. When an incident occurs, or is 
imminent, which the State official responsible for disaster operations 
determines may be beyond the State and local government capabilities to 
respond, the State will request the Regional Director to perform a joint 
FEMA-State preliminary damage assessment. It is not anticipated that all 
occurrences will result in the requirement for assistance; therefore, 
the State will be expected to verify their initial information, in some 
manner, before requesting this support.
    (b) Damage assessment teams. Damage assessment teams will be 
composed of at least one representative of the Federal Government and 
one representative of the State. A local government representative, 
familiar with the extent and location of damage in his/her community, 
should also be included, if

[[Page 424]]

possible. Other State and Federal agencies, and voluntary relief 
organizations may also be asked to participate, as needed. It is the 
State's responsibility to coordinate State and local participation in 
the PDA and to ensure that the participants receive timely notification 
concerning the schedule. A FEMA official will brief team members on 
damage criteria, the kind of information to be collected for the 
particular incident, and reporting requirements.
    (c) Review of findings. At the close of the PDA, FEMA will consult 
with State officials to discuss findings and reconcile any differences.
    (d) Exceptions. The requirement for a joint PDA may be waived for 
those incidents of unusual severity and magnitude that do not require 
field damage assessments to determine the need for supplemental Federal 
assistance under the Act, or in such other instances determined by the 
Regional Director upon consultation with the State. It may be necessary, 
however, to conduct an assessment to determine unmet needs for 
managerial response purposes.

Sec. 206.34  Request for utilization of Department of Defense (DOD) 
          resources.

    (a) General. During the immediate aftermath of an incident which may 
ultimately qualify for a Presidential declaration of a major disaster or 
emergency, when threats to life and property are present which cannot be 
effectively dealt with by the State or local governments, the Associate 
Director may direct DOD to utilize DOD personnel and equipment for 
removal of debris and wreckage and temporary restoration of essential 
public facilities and services.
    (b) Request process. The Governor of a State, or the Acting Governor 
in his/her absence, may request such DOD assistance. The Governor should 
submit the request to the Associate Director through the appropriate 
Regional Director to ensure prompt acknowledgment and processing. The 
request must be submitted within 48 hours of the occurrence of the 
incident. Requests made after that time may still be considered if 
information is submitted indicating why the request for assistance could 
not be made during the initial 48 hours. The request shall include:
    (1) Information describing the types and amount of DOD emergency 
assistance being requested;
    (2) Confirmation that the Governor has taken appropriate action 
under State law and directed the execution of the State emergency plan;
    (3) A finding that the situation is of such severity and magnitude 
that effective response is beyond the capabilities of the State and 
affected local governments and that Federal assistance is necessary for 
the preservation of life and property;
    (4) A certification by the Governor that the State and local 
government will reimburse FEMA for the non-Federal share of the cost of 
such work; and
    (5) An agreement:
    (i) To provide all lands, easements and rights-of-way necessary to 
accomplish the approved work without cost to the United States;
    (ii) To hold and save the United States free from damages due to the 
requested work, and to indemnify the Federal government against any 
claims arising from such work; and
    (iii) To assist DOD in all support and local jurisdictional matters.
    (c) Processing the request. Upon receipt of the request, the 
Regional Director shall gather adequate information to support a 
recommendation and forward it to the Associate Director. If the 
Associate Director determines that such work is essential to save lives 
and protect property, he/she will issue a mission assignment to DOD 
authorizing direct Federal assistance to the extent deemed appropriate.
    (d) Implementation of assistance. The performance of emergency work 
may not exceed a period of 10 days from the date of the mission 
assignment.
    (e) Limits. Generally, no work shall be approved under this section 
which falls within the statutory authority of DOD or another Federal 
agency. However, where there are significant unmet needs of sufficient 
severity and magnitude, not addressed by other assistance, which could 
appropriately be addressed under this section of the Stafford Act, the 
involvement of other Federal agencies would not preclude the

[[Page 425]]

authorization of DOD assistance by the Associate Director.
    (f) Federal share. The Federal share of assistance under this 
section shall be not less than 75 percent of the cost of eligible work.
    (g) Project management. DOD shall ensure that the work is completed 
in accordance with the approved scope of work, costs, and time 
limitations in the mission assignment. DOD shall also keep the Regional 
Director and the State advised of work progress and other project 
developments. It is the responsibility of DOD to ensure compliance with 
applicable Federal, State and local legal requirements. A final report 
will be submitted to the Regional Director upon termination of all 
direct Federal assistance work. Final reports shall be signed by a 
representative of DOD and the State. Once the final eligible cost is 
determined, DOD will request reimbursement from FEMA and FEMA will 
submit a bill to the State for the non-Federal share of the mission 
assignment.
    (h) Reimbursement of DOD. Reimbursement will be made in accordance 
with Sec. 206.8 of these regulations.

Sec. 206.35  Requests for emergency declarations.

    (a) When an incident occurs or threatens to occur in a State, which 
would not qualify under the definition of a major disaster, the Governor 
of a State, or the Acting Governor in his/her absence, may request that 
the President declare an emergency. The Governor should submit the 
request to the President through the appropriate Regional Director to 
ensure prompt acknowledgment and processing. The request must be 
submitted within 5 days after the need for assistance under title V 
becomes apparent, but no longer than 30 days after the occurrence of the 
incident, in order to be considered. The period may be extended by the 
Associate Director provided that a written request for such extension is 
made by the Governor, or Acting Governor, during the 30-day period 
immediately following the incident. The extension request must stipulate 
the reason for the delay.
    (b) The basis for the Governor's request must be the finding that 
the situation:
    (1) Is of such severity and magnitude that effective response is 
beyond the capability of the State and the affected local government(s); 
and
    (2) Requires supplementary Federal emergency assistance to save 
lives and to protect property, public health and safety, or to lessen or 
avert the threat of a disaster.
    (c) In addition to the above findings, the complete request shall 
include:
    (1) Confirmation that the Governor has taken appropriate action 
under State law and directed the execution of the State emergency plan;
    (2) Information describing the State and local efforts and resources 
which have been or will be used to alleviate the emergency;
    (3) Information describing other Federal agency efforts and 
resources which have been or will be used in responding to this 
incident; and
    (4) Identification of the type and extent of additional Federal aid 
required.
    (d) Modified declaration for Federal emergencies. The requirement 
for a Governor's request under paragraph (a) of this section can be 
waived when an emergency exists for which the primary responsibility 
rests in the Federal government because the emergency involves a subject 
area for which, under the Constitution or laws of the United States, the 
Federal government exercises exclusive or preeminent responsibility and 
authority. Any party may bring the existence of such a situation to the 
attention of the FEMA Regional Director. Any recommendation for a 
Presidential declaration of emergency in the absence of a Governor's 
request must be initiated by the Regional Director or transmitted 
through the Regional Director by another Federal agency. In determining 
that such an emergency exists, the Associate Director or Regional 
Director shall consult the Governor of the affected State, if 
practicable.
    (e) Other authorities. It is not intended for an emergency 
declaration to preempt other Federal agency authorities and/or 
established plans and response mechanisms in place prior to the 
enactment of the Stafford Act.

[[Page 426]]

Sec. 206.36  Requests for major disaster declarations.

    (a) When a catastrophe occurs in a State, the Governor of a State, 
or the Acting Governor in his/her absence, may request a major disaster 
declaration. The Governor should submit the request to the President 
through the appropriate Regional Director to ensure prompt 
acknowledgment and processing. The request must be submitted within 30 
days of the occurrence of the incident in order to be considered. The 
30-day period may be extended by the Associate Director, provided that a 
written request for an extension is submitted by the Governor, or Acting 
Governor, during this 30-day period. The extension request will 
stipulate reasons for the delay.
    (b) The basis for the request shall be a finding that:
    (1) The situation is of such severity and magnitude that effective 
response is beyond the capabilities of the State and affected local 
governments; and
    (2) Federal assistance under the Act is necessary to supplement the 
efforts and available resources of the State, local governments, 
disaster relief organizations, and compensation by insurance for 
disaster-related losses.
    (c) In addition to the above findings, the complete request shall 
include:
    (1) Confirmation that the Governor has taken appropriate action 
under State law and directed the execution of the State emergency plan;
    (2) An estimate of the amount and severity of damages and losses 
stating the impact of the disaster on the public and private sector;
    (3) Information describing the nature and amount of State and local 
resources which have been or will be committed to alleviate the results 
of the disaster;
    (4) Preliminary estimates of the types and amount of supplementary 
Federal disaster assistance needed under the Stafford Act; and
    (5) Certification by the Governor that State and local government 
obligations and expenditures for the current disaster will comply with 
all applicable cost sharing requirements of the Stafford Act.
    (d) For those catastrophes of unusual severity and magnitude when 
field damage assessments are not necessary to determine the requirement 
for supplemental Federal assistance, the Governor or Acting Governor may 
send an abbreviated written request through the Regional Director for a 
declaration of a major disaster. This may be transmitted in the most 
expeditious manner available. In the event the FEMA Regional Office is 
severely impacted by the catastrophe, the request may be addressed to 
the Director of FEMA. The request must indicate a finding in accordance 
with Sec. 206.36(b), and must include as a minimum the information 
requested by Sec. 206.36 (c)(1), (c)(3), and (c)(5). Upon receipt of the 
request, FEMA shall expedite the processing of reports and 
recommendations to the President. Notification to the Governor of the 
Presidential declaration shall be in accordance with 44 CFR 206.39. The 
Associate Director shall assure that documentation of the declaration is 
later assembled to comply fully with these regulations.

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

    (a) Acknowledgment. The Regional Director shall provide written 
acknowledgment of the Governor's request.
    (b) Regional summary. Based on information obtained by FEMA/State 
preliminary damage assessments of the affected area(s) and consultations 
with appropriate State and Federal officials and other interested 
parties, the Regional Director shall promptly prepare a summary of the 
PDA findings. The data will be analyzed and submitted with a 
recommendation to the Associate Director. The Regional Analysis shall 
include a discussion of State and local resources and capabilities, and 
other assistance available to meet the major disaster or emergency-
related needs.
    (c) FEMA recommendation. Based on all available information, the 
Director shall formulate a recommendation which shall be forwarded to 
the President with the Governor's request.
    (1) Major disaster recommendation. The recommendation will be based 
on a finding that the situation is or is not of such severity and 
magnitude as to be beyond the capabilities of the State

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and its local governments. It will also contain a determination of 
whether or not supplemental Federal assistance under the Stafford Act is 
necessary and appropriate. In developing a recommendation, FEMA will 
consider such factors as the amount and type of damages; the impact of 
damages on affected individuals, the State, and local governments; the 
available resources of the State and local governments, and other 
disaster relief organizations; the extent and type of insurance in 
effect to cover losses; assistance available from other Federal programs 
and other sources; imminent threats to public health and safety; recent 
disaster history in the State; hazard mitigation measures taken by the 
State or local governments, especially implementation of measures 
required as a result of previous major disaster declarations; and other 
factors pertinent to a given incident.
    (2) Emergency recommendation. The recommendation will be based on a 
report which will indicate whether or not Federal emergency assistance 
under section 502 of the Stafford Act is necessary to supplement State 
and local efforts to save lives, protect property and public health and 
safety, or to lessen or avert the threat of a catastrophe. Only after it 
has been determined that all other resources and authorities available 
to meet the crisis are inadequate, and that assistance provided in 
section 502 of the Stafford Act would be appropriate, will FEMA 
recommend an emergency declaration to the President.
    (d) Modified Federal emergency recommendation. The recommendation 
will be based on a report which will indicate that an emergency does or 
does not exist for which assistance under section 502 of the Stafford 
Act would be appropriate. An emergency declaration will not be 
recommended in situations where the authority to respond or coordinate 
is within the jurisdiction of one or more Federal agencies without a 
Presidential declaration. However, where there are significant unmet 
needs of sufficient severity and magnitude, not addressed by other 
assistance, which could appropriately be addressed under the Stafford 
Act, the involvement of other Federal agencies would not preclude a 
declaration of an emergency under the Act.

Sec. 206.38  Presidential determination.

    (a) The Governor's request for a major disaster declaration may 
result in either a Presidential declaration of a major disaster or an 
emergency, or denial of the Governor's request.
    (b) The Governor's request for an emergency declaration may result 
only in a Presidential declaration of an emergency, or denial of the 
Governor's request.

[55 FR 2292, Jan. 23, 1990; 55 FR 5458, Feb. 15, 1990]

Sec. 206.39  Notification.

    (a) The Governor will be promptly notified by the Director or his/
her designee of a declaration by the President that an emergency or a 
major disaster exists. FEMA also will notify other Federal agencies and 
other interested parties.
    (b) The Governor will be promptly notified by the Director or his/
her designee of a determination that the Governor's request does not 
justify the use of the authorities of the Stafford Act.
    (c) Following a major disaster or emergency declaration, the 
Regional Director or Associate Director will promptly notify the 
Governor of the designations of assistance and areas eligible for such 
assistance.

Sec. 206.40  Designation of affected areas and eligible assistance.

    (a) Eligible assistance. The Associate Director has been delegated 
authority to determine and designate the types of assistance to be made 
available. The initial designations will usually be announced in the 
declaration. Determinations by the Associate Director of the types and 
extent of FEMA disaster assistance to be provided are based upon 
findings whether the damage involved and its effects are of such 
severity and magnitude as to be beyond the response capabilities of the 
State, the affected local governments, and other potential recipients of 
supplementary Federal assistance. The Associate Director may authorize 
all, or only particular types of, supplementary Federal assistance 
requested by the Governor.

[[Page 428]]

    (b) Areas eligible to receive assistance. The Associate Director 
also has been delegated authority to designate the disaster-affected 
areas eligible for supplementary Federal assistance under the Stafford 
Act. These designations shall be published in the Federal Register. A 
disaster-affected area designated by the Associate Director includes all 
local government jurisdictions within its boundaries. The Associate 
Director may, based upon damage assessments in any given area, designate 
all or only some of the areas requested by the Governor for 
supplementary Federal assistance.
    (c) Requests for additional designations after a declaration. After 
a declaration by the President, the Governor, or the GAR, may request 
that additional areas or types of supplementary Federal assistance be 
authorized by the Associate Director. Such requests shall be accompanied 
by appropriate verified assessments and commitments by State and local 
governments to demonstrate that the requested designations are justified 
and that the unmet needs are beyond State and local capabilities without 
supplementary Federal assistance. Additional assistance or areas added 
to the declaration will be published in the Federal Register.
    (d) Time limits to request. In order to be considered, all 
supplemental requests under paragraph (c) of this section must be 
submitted within 30 days from the termination date of the incident, or 
30 days after the declaration, whichever is later. The 30-day period may 
be extended by the Associate Director provided that a written request is 
made by the appropriate State official during this 30-day period. The 
request must include justification of the State's inability to meet the 
deadline.

Sec. 206.41  Appointment of disaster officials.

    (a) Federal Coordinating Officer. Upon a declaration of a major 
disaster or of an emergency by the President, the Director, or in his 
absence, the Deputy Director, or alternately, the Associate Director 
shall appoint an FCO who shall initiate action immediately to assure 
that Federal assistance is provided in accordance with the declaration, 
applicable laws, regulations, and the FEMA-State Agreement.
    (b) Disaster Recovery Manager. The Regional Director shall designate 
a DRM to exercise all the authority of the Regional Director in a major 
disaster or an emergency.
    (c) State Coordinating Officer. Upon a declaration of a major 
disaster or of an emergency, the Governor of the affected State shall 
designate an SCO who shall coordinate State and local disaster 
assistance efforts with those of the Federal Government.
    (d) Governor's Authorized Representative. In the FEMA-State 
Agreement, the Governor shall designate the GAR, who shall administer 
Federal disaster assistance programs on behalf of the State and local 
governments and other grant or loan recipients. The GAR is responsible 
for the State compliance with the FEMA-State Agreement.

Sec. 206.42  Responsibilities of coordinating officers.

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

[[Page 429]]

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

Sec. 206.43  Emergency support teams.

    The Federal Coordinating Officer may activate emergency support 
teams, composed of Federal program and support personnel, to be deployed 
into an area affected by a major disaster or emergency. These emergency 
support teams assist the FCO in carrying out his/her responsibilities 
under the Stafford Act and these regulations. Any Federal agency can be 
directed to detail personnel within the agency's administrative 
jurisdiction to temporary duty with the FCO. Each detail shall be 
without loss of seniority, pay, or other employee status.

Sec. 206.44  FEMA-State Agreements.

    (a) General. Upon the declaration of a major disaster or an 
emergency, the Governor, acting for the State, and the FEMA Regional 
Director or his/her designee, acting for the Federal Government, shall 
execute a FEMA-State Agreement. The FEMA-State Agreement states the 
understandings, commitments, and conditions for assistance under which 
FEMA disaster assistance shall be provided. This Agreement imposes 
binding obligations on FEMA, States, their local governments, and 
private nonprofit organizations within the States in the form of 
conditions for assistance which are legally enforceable. No FEMA funding 
will be authorized or provided to any grantees or other recipients, nor 
will direct Federal assistance be authorized by mission assignment, 
until such time as this Agreement for the Presidential declaration has 
been signed, except where it is deemed necessary by the Regional 
Director to begin the process of providing essential emergency services 
or housing assistance under the Individuals and Households Program.
    (b) Terms and conditions. This Agreement describes the incident and 
the incident period for which assistance will be made available, the 
type and extent of the Federal assistance to be made available, and 
contains the commitment of the State and local government(s) with 
respect to the amount of funds to be expended in alleviating damage and 
suffering caused by the major disaster or emergency. The Agreement also 
contains such other terms and conditions consistent with the declaration 
and the provisions of applicable laws, Executive Order and regulations.
    (c) Provisions for modification. In the event that the conditions 
stipulated in the original Agreement are changed or modified, such 
changes will be reflected in properly executed amendments to the 
Agreement, which may be signed by the GAR and the Regional Director or 
his/her designee for the specified major disaster or emergency. 
Amendments most often occur to close or amend the incident period, to 
add forms of assistance not originally authorized, or to designate 
additional areas eligible for assistance.
    (d) In a modified declaration for a Federal emergency, a FEMA-State 
Agreement may or may not be required based on the type of assistance 
being provided.

[55 FR 2292, Jan. 23, 1990, as amended at 67 FR 61460, Sept. 30, 2002]

Sec. 206.45  Loans of non-Federal share.

    (a) Conditions for making loans. At the request of the Governor, the 
Associate Director may lend or advance to a State, either for its own 
use or for the use of public or private nonprofit applicants for 
disaster assistance under the Stafford Act, the portion of assistance 
for which the State or other eligible disaster assistance applicant is 
responsible under the cost-sharing provisions of the Stafford Act in any 
case in which:

[[Page 430]]

    (1) The State or other eligible disaster assistance applicant is 
unable to assume their financial responsibility under such cost sharing 
provisions:
    (i) As a result of concurrent, multiple major disasters in a 
jurisdiction, or
    (ii) After incurring extraordinary costs as a result of a particular 
disaster;
    (2) The damages caused by such disasters or disaster are so 
overwhelming and severe that it is not possible for the State or other 
eligible disaster assistance applicant to immediately assume their 
financial responsibility under the Act; and
    (3) The State and the other eligible disaster applicants are not 
delinquent in payment of any debts to FEMA incurred as a result of 
Presidentially declared major disasters or emergencies.
    (b) Repayment of loans. Any loan made to a State under paragraph (a) 
of this section must be repaid to the United States. The Governor must 
include a repayment schedule as part of the request for advance.
    (1) The State shall repay the loan (the principal disbursed plus 
interest) in accordance with the repayment schedule approved by the 
Associate Director.
    (2) If the State fails to make payments in accordance with the 
approved repayment schedule, FEMA will offset delinquent amounts against 
the current, prior, or any subsequent disasters, or monies due the State 
under other FEMA programs, in accordance with the established Claims 
Collection procedures.
    (c) Interest. Loans or advances under paragraph (a) of this section 
shall bear interest at a rate determined by the Secretary of the 
Treasury, taking into consideration the current market yields on 
outstanding marketable obligations of the United States with remaining 
periods to maturity comparable to the reimbursement period of the loan 
or advance. Simple interest will be computed from the date of the 
disbursement of each drawdown of the loan/advance by the State based on 
365 days/year.

Sec. 206.46  Appeals.

    (a) Denial of declaration request. When a request for a major 
disaster declaration or for any emergency declaration is denied, the 
Governor may appeal the decision. An appeal must be made within 30 days 
after the date of the letter denying the request. This one-time request 
for reconsideration, along with appropriate additional information, is 
submitted to the President through the appropriate Regional Director. 
The processing of this request is similar to the initial request.
    (b) Denial of types of assistance or areas. In those instances when 
the type of assistance or certain areas requested by the Governor are 
not designated or authorized, the Governor, or the GAR, may appeal the 
decision. An appeal must be submitted in writing within 30 days of the 
date of the letter denying the request. This one-time request for 
reconsideration, along with justification and/or additional information, 
is sent to the Associate Director through the appropriate Regional 
Director.
    (c) Denial of advance of non-Federal share. In those instances where 
the Governor's request for an advance is denied, the Governor may appeal 
the decision. An appeal must be submitted in writing within 30 days of 
the date of the letter denying the request. This one-time request for 
reconsideration, along with justification and/or additional information, 
is sent to the Associate Director through the appropriate Regional 
Director.
    (d) Extension of time to appeal. The 30-day period referred to in 
paragraphs (a), (b), or (c) of this section may be extended by the 
Associate Director provided that a written request for such an 
extension, citing reasons for the delay, is made during this 30-day 
period, and if the Associate Director agrees that there is a legitimate 
basis for extension of the 30-day period. Only the Governor may request 
a time extension for appeals covered in paragraphs (a) and (c) of this 
section. The Governor, or the GAR if one has been named, may submit the 
time extension request for appeals covered in paragraph (b) of this 
section.

Sec. 206.47  Cost-share adjustments.

    (a) We pay seventy-five percent (75%) of the eligible cost of 
permanent restorative work under section 406 of the Stafford Act and for 
emergency work

[[Page 431]]

under section 403 and section 407 of the Stafford Act, unless the 
Federal share is increased under this section.
    (b) We recommend an increase in the Federal cost share from seventy-
five percent (75%) to not more than ninety percent (90%) of the eligible 
cost of permanent work under section 406 and of emergency work under 
section 403 and section 407 whenever a disaster is so extraordinary that 
actual Federal obligations under the Stafford Act, excluding FEMA 
administrative cost, meet or exceed a qualifying threshold of:
    (1) Beginning in 1999 and effective for disasters declared on or 
after May 21, 1999, $75 per capita of State population;
    (2) Effective for disasters declared after January 1, 2000, and 
through December 31, 2000, $85 per capita of State population;
    (3) Effective for disasters declared after January 1, 2001, $100 per 
capita of State population; and,
    (4) Effective for disasters declared after January 1, 2002 and for 
later years, $100 per capita of State population, adjusted annually for 
inflation using the Consumer Price Index for All Urban Consumers 
published annually by the Department of Labor.
    (c) When we determine whether to recommend a cost-share adjustment 
we consider the impact of major disaster declarations in the State 
during the preceding twelve-month period.
    (d) If warranted by the needs of the disaster, we recommend up to 
one hundred percent (100%) Federal funding for emergency work under 
section 403 and section 407, including direct Federal assistance, for a 
limited period in the initial days of the disaster irrespective of the 
per capita impact.

[64 FR 19498, Apr. 21, 1999]

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

    When we review a Governor's request for major disaster assistance 
under the Stafford Act, these are the primary factors in making a 
recommendation to the President whether assistance is warranted. We 
consider other relevant information as well.
    (a) Public Assistance Program. We evaluate the following factors to 
evaluate the need for assistance under the Public Assistance Program.
    (1) Estimated cost of the assistance. We evaluate the estimated cost 
of Federal and nonfederal public assistance against the statewide 
population to give some measure of the per capita impact within the 
State. We use a figure of $1 per capita as an indicator that the 
disaster is of such size that it might warrant Federal assistance, and 
adjust this figure annually based on the Consumer Price Index for all 
Urban Consumers. We are establishing a minimum threshold of $1 million 
in public assistance damages per disaster in the belief that we can 
reasonably expect even the lowest population States to cover this level 
of public assistance damage.
    (2) Localized impacts. We evaluate the impact of the disaster at the 
county and local government level, as well as impacts at the American 
Indian and Alaskan Native Tribal Government levels, because at times 
there are extraordinary concentrations of damages that might warrant 
Federal assistance even if the statewide per capita is not met. This is 
particularly true where critical facilities are involved or where 
localized per capita impacts might be extremely high. For example, we 
have at times seen localized damages in the tens or even hundreds of 
dollars per capita though the statewide per capita impact was low.
    (3) Insurance coverage in force. We consider the amount of insurance 
coverage that is in force or should have been in force as required by 
law and regulation at the time of the disaster, and reduce the amount of 
anticipated assistance by that amount.
    (4) Hazard mitigation. To recognize and encourage mitigation, we 
consider the extent to which State and local government measures 
contributed to the reduction of disaster damages for the disaster under 
consideration. For example, if a State can demonstrate in its disaster 
request that a Statewide building code or other mitigation measures are 
likely to have reduced the damages from a particular disaster, we 
consider that in the evaluation of the request. This could be especially

[[Page 432]]

significant in those disasters where, because of mitigation, the 
estimated public assistance damages fell below the per capita indicator.
    (5) Recent multiple disasters. We look at the disaster history 
within the last twelve-month period to evaluate better the overall 
impact on the State or locality. We consider declarations under the 
Stafford Act as well as declarations by the Governor and the extent to 
which the State has spent its own funds.
    (6) Programs of other Federal assistance. We also consider programs 
of other Federal agencies because at times their programs of assistance 
might more appropriately meet the needs created by the disaster.
    (b) Factors for the Individual Assistance Program. We consider the 
following factors to measure the severity, magnitude and impact of the 
disaster and to evaluate the need for assistance to individuals under 
the Stafford Act.
    (1) Concentration of damages. We evaluate the concentrations of 
damages to individuals. High concentrations of damages generally 
indicate a greater need for Federal assistance than widespread and 
scattered damages throughout a State.
    (2) Trauma. We consider the degree of trauma to a State and to 
communities. Some of the conditions that might cause trauma are:
    (i) Large numbers of injuries and deaths;
    (ii) Large scale disruption of normal community functions and 
services; and
    (iii) Emergency needs such as extended or widespread loss of power 
or water.
    (3) Special populations. We consider whether special populations, 
such as low-income, the elderly, or the unemployed are affected, and 
whether they may have a greater need for assistance. We also consider 
the effect on American Indian and Alaskan Native Tribal populations in 
the event that there are any unique needs for people in these 
governmental entities.
    (4) Voluntary agency assistance. We consider the extent to which 
voluntary agencies and State or local programs can meet the needs of the 
disaster victims.
    (5) Insurance. We consider the amount of insurance coverage because, 
by law, Federal disaster assistance cannot duplicate insurance coverage.
    (6) Average amount of individual assistance by State. There is no 
set threshold for recommending Individual Assistance, but the following 
averages may prove useful to States and voluntary agencies as they 
develop plans and programs to meet the needs of disaster victims.

                                    Average Amount of Assistance per Disaster
                                            [July 1994 to July 1999]
----------------------------------------------------------------------------------------------------------------
                                       Small states  (under 2     Medium states  (2-10    Large states  (over 10
                                            million pop.)            million pop.)            million pop.)
----------------------------------------------------------------------------------------------------------------
Average Population (1990 census       1,000,057...............  4,713,548..............  15,522,791
 data).
Number of Disaster Housing            1,507...................  2,747..................  4,679
 Applications Approved.
Number of Homes Estimated Major       173.....................  582....................  801
 Damage/Destroyed.
Dollar Amount of Housing Assistance.  $2.8 million              $4.6 million             $9.5 million
Number of Individual and Family       495.....................  1,377..................  2,071
 Grant Applications Approved.
Dollar Amount of Individual and       1.1 million.............  2.9 million............  4.6 million
 Family Grant Assistance.
Disaster Housing/IFG Combined         3.9 million.............  7.5 million............  14.1 million
 Assistance.
----------------------------------------------------------------------------------------------------------------

    Note: The high 3 and low 3 disasters, based on Disaster Housing 
Applications, are not considered in the averages. Number of Damaged/
Destroyed Homes is estimated based on the number of owner-occupants who 
qualify for Eligible Emergency Rental Resources. Data source is FEMA's 
National Processing Service Centers. Data are only available from July 
1994 to the present.
    Small Size States (under 2 million population, listed in order of 
1990 population): Wyoming, Alaska, Vermont, District of Columbia, North 
Dakota, Delaware, South Dakota, Montana, Rhode Island, Idaho, Hawaii, 
New Hampshire, Nevada, Maine, New Mexico, Nebraska, Utah, West Virginia. 
U.S. Virgin Islands and all Pacific Island dependencies.
    Medium Size States (2-10 million population, listed in order of 1990 
population): Arkansas,

[[Page 433]]

Kansas, Mississippi, Iowa, Oregon, Oklahoma, Connecticut, Colorado, 
South Carolina, Arizona, Kentucky, Alabama, Louisiana, Minnesota, 
Maryland, Washington, Tennessee, Wisconsin, Missouri, Indiana, 
Massachusetts, Virginia, Georgia, North Carolina, New Jersey, Michigan. 
Puerto Rico.
    Large Size States (over 10 million population, listed in order of 
1990 population): Ohio, Illinois, Pennsylvania, Florida, Texas, New 
York, California.

[64 FR 47698, Sept. 1, 1999]

Secs. 206.49-206.60  [Reserved]

                     Subpart C--Emergency Assistance

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

Sec. 206.61  Purpose.

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

Sec. 206.62  Available assistance.

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

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

Sec. 206.63  Provision of assistance.

    Assistance authorized by an emergency declaration is limited to 
immediate and short-term assistance, essential to save lives, to protect 
property and public health and safety, or to lessen or avert the threat 
of a catastrophe.

Sec. 206.64  Coordination of assistance.

    After an emergency declaration by the President, all Federal 
agencies, voluntary organizations, and State and local governments 
providing assistance shall operate under the coordination of the Federal 
Coordinating Officer.

Sec. 206.65  Cost sharing.

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

Sec. 206.66  Limitation on expenditures.

    Total assistance provided in any given emergency declaration may not 
exceed $5,000,000, except when it is determined by the Associate 
Director that:
    (a) Continued emergency assistance is immediately required;
    (b) There is a continuing and immediate risk to lives, property, 
public health and safety; and
    (c) Necessary assistance will not otherwise be provided on a timely 
basis.

Sec. 206.67  Requirement when limitation is exceeded.

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

[[Page 434]]

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

Secs. 206.68-206.100  [Reserved]

       Subpart D--Federal Assistance to Individuals and Households

Sec. 206.101  Temporary housing assistance for emergencies and major 
          disasters declared on or before October 14, 2002.

    (a) Purpose. This section prescribes the policy to be followed by 
the Federal Government or any other organization when implementing 
section 408 of the Stafford Act for Presidentially-declared emergencies 
and major disasters declared on or before October 14, 2002 (Note that 
the reference to section 408 of the Stafford Act refers to prior 
legislation amended by the Disaster Mitigation Act 2000).
    (b) Program intent. Assistance under this program is made available 
to applicants who require temporary housing as a result of a major 
disaster or emergency that is declared by the President. Eligibility for 
assistance is based on need created by disaster-related unlivability of 
a primary residence or other disaster-related displacement, combined 
with a lack of adequate insurance coverage. Eligible applicants may be 
paid for authorized accommodations and/or repairs. In the interest of 
assisting the greatest number of people in the shortest possible time, 
applicants who are able to do so will be encouraged to make their own 
arrangements for temporary housing. Although numerous instances of minor 
damage may cause some inconvenience to the applicant, the determining 
eligibility factor must be the livability of the primary residence. FEMA 
has also determined that it is reasonable to expect applicants or their 
landlords to make some repairs of a minor nature. Temporary housing will 
normally consist of a check to cover housing-related costs wherever 
possible.
    (c) Definitions.
    (1) Adequate alternate housing means housing that:
    (i) Accommodates the needs of the occupants.
    (ii) Is within reasonable commuting distance of work, school, or 
agricultural activities which provide over 25% of the household income.
    (iii) Is within the financial ability of the occupant in the 
realization of a permanent housing plan.
    (2) Effective date of assistance means the date the eligible 
applicant received temporary housing assistance but, where applicable, 
only after appropriate insurance benefits are exhausted.
    (3) Essential living area means that area of the residence essential 
to normal living, i.e., kitchen, one bathroom, dining area, living room, 
entrances and exits, and essential sleeping areas. It does not include 
family rooms, guest rooms, garages, or other nonessential areas, unless 
hazards exist in these areas which impact the safety of the essential 
living area.
    (4) Fair market rent means a reasonable amount to pay in the local 
area for the size and type of accommodations which meets the applicant's 
needs.
    (5) Financial ability is the determination of the occupant's ability 
to pay housing costs. The determination is based upon the amount paid 
for housing before the disaster, provided the household income has not 
changed subsequent to or as a result of the disaster or 25 percent of 
gross post disaster income if the household income changed as a result 
of the disaster. When computing financial ability, extreme or unusual 
financial circumstances may be considered by the Regional Director.
    (6) Household means all residents of the predisaster residence who 
request temporary housing assistance, plus any additions during the 
temporary housing period, such as infants, spouses, or part-time 
residents who were not present at the time of the disaster but who are 
expected to return during the temporary housing period.
    (7) Housing costs means shelter rent and mortgage payments including 
principal, interest, real estate taxes, real property insurance, and 
utility costs, where appropriate.
    (8) Occupant means an eligible applicant residing in temporary 
housing provided under this section.

[[Page 435]]

    (9) Owner-occupied means that the residence is occupied by: the 
legal owner; a person who does not hold formal title to the residence 
and pays no rent but is responsible for the payment of taxes, or 
maintenance of the residence; or a person who has lifetime occupancy 
rights with formal title vested in another.
    (10) Primary residence means the dwelling where the applicant 
normally lives during the major portion of the calendar year, a dwelling 
which is required because of proximity to employment, or to agricultural 
activities as referenced in paragraph (c)(1)(ii) of this section.
    (d) Duplication of benefits--(1) Requirement to avoid duplication. 
Temporary housing assistance shall not be provided to an applicant if 
such assistance has been provided by any other source. If any State or 
local government or voluntary agency has provided temporary housing, the 
assistance under this section begins at the expiration of such 
assistance, and may continue for a period not to exceed l8 months from 
the date of declaration, provided the criteria for continued assistance 
in paragraph (k)(3) of this section are met. If it is determined that 
temporary housing assistance will be provided under this section, 
notification shall be given those agencies which have the potential for 
duplicating such assistance. In the instance of insured applicants, 
temporary housing assistance shall be provided only when:
    (i) Payment of the applicable benefits has been significantly 
delayed;
    (ii) Applicable benefits have been exhausted;
    (iii) Applicable benefits are insufficient to cover the temporary 
housing need; or
    (iv) Housing is not available on the private market.
    (2) Recovery of funds. Prior to provision of assistance, the 
applicant must agree to repay to FEMA from insurance proceeds or 
recoveries from any other source an amount equivalent to the value of 
the temporary housing assistance provided. In no event shall the amount 
repaid to FEMA exceed the amount recovered by the applicant. All claims 
shall be collected in accordance with agency procedures for debt 
collection.
    (e) Applications-- (1) Application period. The standard FEMA 
application period is the 60 days following the date the President 
declares an incident a major disaster or an emergency. The Regional 
Director may, however, extend the application period, when we anticipate 
that we need more time to collect applications from the affected 
population or to establish the same application deadline for contiguous 
Counties or States. After the application period has ended, FEMA will 
accept and process applications for an additional 60 days only from 
persons who can provide an acceptable explanation (and documentation to 
substantiate their explanation) for why they were not able to contact 
FEMA before the application period ended.
    (2) Household composition. Members of a household shall be included 
on a single application and be provided one temporary housing residence 
unless it is determined by the Regional Director that the size of the 
household requires that more than one residence be provided.
    (f) General eligibility guidelines. Temporary housing assistance may 
be made available to those applicants who, as a result of a major 
disaster or emergency declared by the President, are qualified for such 
assistance.
    (1) Conditions of eligibility. Temporary housing assistance may be 
provided only when both of the following conditions are met:
    (i) The applicant's primary residence has been made unlivable or the 
applicant has been displaced as the result of a major disaster or 
emergency because:
    (A) The residence has been destroyed, essential utility service has 
been interrupted, or the essential living area has been damaged as a 
result of the disaster to such an extent as to constitute a serious 
health or safety hazard which did not exist prior to the disaster. The 
Regional Director shall prepare additional guidelines when necessary to 
respond to a particular disaster;
    (B) The residence has been made inaccessible as a result of the 
incident to the extent that the applicant cannot reasonably be expected 
to gain entry due to the disruption or destruction of

[[Page 436]]

transportation routes, other impediments to access, or restrictions 
placed on movement by a responsible official due to continued health and 
safety problems;
    (C) The owner of the applicant's residence requires the residence to 
meet their personal needs because the owner's predisaster residence was 
made unlivable as a result of the disaster;
    (D) Financial hardship resulting from the disaster has led to 
eviction or dispossession; or
    (E) Other circumstances resulting from the disaster, as determined 
by the Regional Director, prevent the applicant from occupying their 
predisaster primary residence.
    (ii) Insured applicants have made every reasonable effort to secure 
insurance benefits, and the insured has agreed to repay FEMA from 
whatever insurance proceeds are later received, pursuant to paragraph 
(d)(2) of this section.
    (2) Conditions of ineligibility. Except as provided for in section 
408(b), Temporary Housing Assistance shall not be provided:
    (i) To an applicant who is displaced from other than their primary 
residence; or
    (ii) When the residence in question is livable, i.e., only minor 
damage exists and it can reasonably be expected to be repaired by the 
applicant/owner or the landlord; or
    (iii) When the applicant owns a secondary or vacation residence, or 
unoccupied rental property which meets their temporary housing needs; or
    (iv) To an applicant who has adequate rent-free housing 
accommodations; or
    (v) To an applicant who has adequate insurance coverage and there is 
no indication that benefits will be delayed; or
    (vi) When a late application is not approved for processing by the 
Regional Director; or
    (vii) To an applicant who evacuated the residence in response to 
official warnings solely as a precautionary measure, and who is able to 
return to the residence immediately after the incident (i.e., the 
applicant is not otherwise eligible for temporary housing assistance).
    (g) Forms of Temporary Housing Assistance. All proceeds received or 
receivable by the applicant under Sec. 206.101 shall be exempt from 
garnishment, seizure, encumbrance, levy, execution, pledge, attachment, 
release, or waiver. No rights under this provision are assignable or 
transferable.
    (1) Temporary Housing Assistance is normally provided in the form of 
a check to cover the cost of rent or essential home repairs. The 
exceptions to this are when existing rental resources are not available 
and repairs to the home will not make it livable in a reasonable period 
of time, or when the eligible applicant is unable to physically leave 
the home due to the need to tend crops or livestock.
    (i) Government-owned, private, and commercial properties. When an 
eligible applicant is unable to obtain an available temporary housing 
unit, FEMA may enter into a leasing agreement for the eligible 
applicant. Rent payments shall be in accordance with the fair market 
rent (FMR) rates established for each operation for the type and size 
residence.
    (ii) Transient accommodations. Immediately following a 
Presidentially declared major disaster or emergency, disaster victims 
are expected to stay with family or friends without FEMA assistance, or 
to make use of mass shelters to the fullest extent possible for short-
term housing. Transient accommodations may be provided when individual 
circumstances warrant such assistance for only a short period of time or 
pending provision of other temporary housing resources. Transient 
accommodations may be provided for up to 30 days unless this period is 
extended by the Regional Director. Authorized expenditures for transient 
accommodations shall be restricted to the rental cost including 
utilities except for those which are separately metered. Payment for 
food, telephone, or other similar services is not authorized under this 
section.
    (2) Mobile homes, travel trailers, and other manufactured housing 
units. Government-owned or privately owned mobile homes, travel 
trailers, and other manufactured housing units may be placed on 
commercial, private, or

[[Page 437]]

group sites. The placement must comply with applicable State and local 
codes and ordinances as well as FEMA'S regulations at 44 CFR part 9, 
Floodplain Management and Protection of Wetlands, and the regulations at 
44 CFR part 10, Environmental Considerations.
    (i) A commercial site is a site customarily leased for a fee because 
it is fully equipped to accommodate a housing unit. In accordance with 
section 408(a)(2)(B), the Associate Director has determined that leasing 
commercial sites at Federal expense is in the public interest. When the 
Regional Director determines that upgrading of commercial sites or 
installation of utilities on such sites will provide more cost-
effective, timely, and suitable temporary housing than other types of 
resources, they may authorize such action at Federal expense.
    (ii) A private site is a site provided or obtained by the applicant 
at no cost to the Federal Government. Also in accordance with section 
408(a)(2)(B), the Associate Director has determined that the cost of 
installation or repairs of essential utilities on private sites is 
authorized at Federal expense when such actions will provide more cost-
effective, timely, and suitable temporary housing than other types of 
resources.
    (iii) A group site is a site which accommodates two or more units. 
In accordance with section 408(a)(2)(A), locations for group sites shall 
be provided by State or local government complete with utilities. 
However, the Associate Director may authorize development of group 
sites, including installation of essential utilities, by the Federal 
Government, based on a recommendation from the Regional Director; 
provided, however, that the Federal expense is limited to 75 percent of 
the cost of construction and development (including installation of 
utilities). In accordance with section 408(a)(4) of the Stafford Act, 
the State or local government shall pay any cost which is not paid for 
from the Federal share, including long-term site maintenance such as 
snow removal, street repairs and other services of a governmental 
nature.
    (3) Temporary mortgage and rental payments. Assistance in the form 
of mortgage or rental payments may be paid to or be provided on behalf 
of eligible applicants who, as a result of a major disaster or 
emergency, have received written notice of dispossession or eviction 
from their primary residence by foreclosure of any mortgage or lien, 
cancellation of any contract of sale, or termination of any lease 
entered into prior to the disaster. Written notice, for the purpose of 
this paragraph, means a communication in writing by a landlord, mortgage 
holder, or other party authorized under State law to file such notice. 
The purpose of such notice is to notify a person of impending 
termination of a lease, foreclosure of a mortgage or lien, or 
cancellation of any contract of sale, which would result in the person's 
dispossession or eviction. Applications for this type of assistance may 
be filed for up to 6 months following the date of declaration. This 
assistance may be provided for a period not to exceed 18 months or for 
the duration of the period of financial hardship, as determined by the 
Regional Director, whichever is less. The location of the residence of 
an applicant for assistance under this section shall not be a 
consideration of eligibility.
    (4) Home repairs. Repairs may be authorized to quickly repair or 
restore to a livable condition that portion of or areas affecting the 
essential living area of, or private access to, an owner-occupied 
primary residence which was damaged as a result of the disaster. 
Installation of utilities or conveniences not available in the residence 
prior to the disaster shall not be provided. However, repairs which are 
authorized shall conform to applicable local and/or State building 
codes; upgrading of existing damaged utilities may be authorized when 
required by these codes.
    (i) Options for repairs. Eligible applicants approved for repairs 
may be assisted through one or a combination of the following methods:
    (A) Cash payment. Payment shall be limited to the reasonable costs 
for the repairs and replacements in the locality, as determined by the 
Regional Director. This will be the method normally used, unless unusual 
circumstances warrant the methods listed under paragraph (g)(4), (i) (B) 
or (C) of this section.

[[Page 438]]

    (B) Provision of materials and replacement items.
    (C) Government awarded repair contracts when authorized by the 
Associate Director.
    (ii) Feasibility. Repairs may be provided to those eligible 
applicants:
    (A) Who are owner-occupants of the residence to be made livable;
    (B) Whose residence can be made livable by repairs to the essential 
living area within 30 days following the feasibility determination. The 
Regional Director may extend this period for extenuating circumstances 
by determining that this type of assistance is still more cost 
effective, timely and otherwise suitable than other forms for temporary 
housing; and
    (C) Whose residence can be made livable by repairs to the essential 
living area, the cost of which do not exceed the dollar limitations 
established by the Associate Director. The Regional Director may, on a 
case-by-case basis, waive the dollar limitations when repairs are more 
cost effective and appropriate than other forms of housing assistance or 
when extenuating circumstances warrant.
    (iii) Scope of work. The type of repair or replacement authorized 
may vary depending upon the nature of the disaster. Items will be 
repaired where feasible or replaced only when necessary to insure the 
safety or health of the occupant. Replacement items shall be of average 
quality, size, and capacity taking into consideration the needs of the 
occupant. Repairs shall be disaster related and shall be limited to:
    (A) Repairs to the plumbing system, including repairs to or 
replacement of fixtures, providing service to the kitchen and one 
bathroom;
    (B) Repairs to the electrical system providing service to essential 
living areas, including repairs to or replacement of essential fixtures;
    (C) Repairs to the heating unit, including repairs to duct work, 
vents, and integral fuel and electrical systems. If repair or 
replacement through other forms of assistance cannot be accomplished 
before the start of the season requiring heat, home repairs may be 
authorized by the Regional Director when an inspection shows that the 
unit has been damaged beyond repair, or when the availability of 
necessary parts or components makes repair impossible;
    (D) Repairs to or replacement of essential components of the fuel 
system to provide for cooking;
    (E) Pumping and cleaning of the septic system, repairs to or 
replacement of the tank, drainfield, or repairs to sewer lines;
    (F) Flushing and/or purifying the water well, and repairs to or 
replacement of the pump, controls, tank, and pipes;
    (G) Repairs to or replacement of exterior doors, repair of windows 
and/or screens needed for health purposes;
    (H) Repairs to the roof, when the damages affect the essential 
living area;
    (I) Repairs to interior floors, when severe buckling or 
deterioration creates a serious safety hazard;
    (J) Blocking, leveling, and anchoring of a mobile home; and 
reconnecting and/or resetting mobile home sewer, water, electrical and 
fuel lines, and tanks;
    (K) Emergency repairs to private access routes, limited to those 
repairs that meet the minimum safety standards and using the most 
economical materials available. Such repairs are provided on a one-time 
basis when no alternative access facilities are immediately available 
and when the repairs are more cost effective, timely or otherwise 
suitable than other forms of temporary housing.
    (L) Repairs to the foundation piers, walls or footings when the 
damages affect the structural integrity of the essential living area;
    (M) Repairs to the stove and refrigerator, when feasible; and
    (N) Elimination of other health and safety hazards or performance of 
essential repairs which are authorized by the Regional Director as not 
available through emergency services provided by voluntary or community 
agencies, and cannot reasonably be expected to be completed on a timely 
basis by the occupant without FEMA assistance.
    (iv) Requirements of the Flood Disaster Protection Act. FEMA has 
determined that flood insurance purchase requirements need not be 
imposed as a condition of receiving assistance under

[[Page 439]]

paragraph (g)(4) of this section. Repair recipients will normally 
receive assistance for further repairs from other programs which will 
impose the purchase and maintenance requirements. Home repairs may not 
be provided in Zones A or V of a sanctioned or suspended community 
except for items that are not covered by flood insurance.
    (h) Appropriate form of temporary housing. The form of temporary 
housing provided should not exceed occupants' minimum requirements, 
taking into consideration items such as timely availability, cost 
effectiveness, permanent housing plans, special needs (handicaps, the 
location of crops and livestock, etc.) of the occupants, and the 
requirements of FEMA'S floodplain management regulations at 44 CFR part 
9. An eligible applicant shall receive one form of temporary housing, 
except for transient accommodations or when provision of an additional 
form is in the best interest of the Government. An eligible applicant is 
expected to accept the first offer of temporary housing; unwarranted 
refusal shall result in forfeiture of temporary housing assistance. 
Existing rental resources and home repairs shall be utilized to the 
fullest extent practicable prior to provision of government-owned mobile 
homes.
    (i) Utility costs and security deposits. All utility costs shall be 
the responsibility of the occupant except where utility services are not 
metered separately and are therefore a part of the rental charge. 
Utility use charges and deposits shall always be the occupants 
responsibility. When authorized by the Regional Director, the Federal 
Government may pay security deposits; however, the owner or occupant 
shall reimburse the full amount of the security deposit to the Federal 
Government before or at the time that the temporary housing assistance 
is terminated.
    (j) Furniture. An allowance for essential furniture may be provided 
to occupants when such assistance is required to occupy the primary or 
temporary housing residence. However, loss of furniture does not in and 
of itself constitute eligibility for temporary housing assistance. 
Luxury items shall not be provided.
    (k) Duration of assistance--(1) Commencement. Temporary housing 
assistance may be provided as of the date of the incident of the major 
disaster or emergency as specified in the Federal Register notice and 
may continue for 18 months from the date of declaration. An effective 
date of assistance shall be established for each applicant.
    (2) Continued assistance. Predisaster renters normally shall be 
provided no more than 1 month of assistance unless the Regional Director 
determines that continued assistance is warranted in accordance with 
paragraph (k)(3) of this section. All other occupants of temporary 
housing shall be certified eligible for continued assistance in 
increments not to exceed 3 months. Recertification of eligibility for 
continued assistance shall be in accordance with paragraph (k)(3) of 
this section, taking into consideration the occupant's permanent housing 
plan. A realistic permanent housing plan shall be established for each 
occupant requesting additional assistance no later than at the time of 
the first recertification.
    (3) Criteria for continued assistance. A temporary housing occupant 
shall make every effort to obtain and occupy permanent housing at the 
earliest possible time. A temporary housing occupant will be required to 
provide receipts documenting disaster related housing costs and shall be 
eligible for continued assistance when:
    (i) Adequate alternate housing is not available;
    (ii) The permanent housing plan has not been realized through no 
fault of the occupant; or
    (iii) In the case of FEMA-owner leases, the occupant is in 
compliance with the terms of the lease/rental agreement.
    (l) Period of assistance. Provided the occupant is eligible for 
continued assistance, assistance shall be provided for a period not to 
exceed 18 months from the declaration date.
    (m) Appeals. Occupants shall have the right to appeal a program 
determination in accordance with the following:
    (1) An applicant declared ineligible for temporary housing 
assistance, an applicant whose application has been cancelled for cause, 
an applicant whose application has been refused because of

[[Page 440]]

late filing, and an occupant who received a direct housing payment but 
is not eligible for continued assistance in accordance with paragraph 
(k) of this section, shall have the right to dispute such a 
determination within 60 calendar days following notification of such 
action. The Regional Director shall reconsider the original decision 
within 15 calendar days after its receipt. The appellant shall be given 
a written notice of the disposition of the dispute. The decision of the 
Regional Director is final.
    (2) An occupant who has been notified that his/her request to 
purchase a mobile home or manufactured housing unit or that a request 
for an adjustment to the sales price has been denied shall have the 
right to dispute such a determination within 60 business days after 
receipt of such notice. The Regional Director shall reconsider the 
original decision within 15 calendar days after receipt of the appeal. 
The appellant shall receive written notice of the disposition of the 
dispute. The decision of the Regional Director is final.
    (3) Termination of assistance provided through a FEMA lease 
agreement shall be initiated with a 15-day written notice after which 
the occupant shall be liable for such additional charges as are deemed 
appropriate by the Regional Director including, but not limited to, the 
fair market rental for the temporary housing residence.
    (i) Grounds for termination. Temporary housing assistance may be 
terminated for reasons including, but not limited to the following:
    (A) Adequate alternate housing is available to the occupant(s);
    (B) The temporary housing assistance was obtained either through 
misrepresentation or fraud; or
    (C) Failure to comply with any term of the lease/rental agreement.
    (ii) Termination procedures. These procedures shall be utilized in 
all instances except when a State is administering the Temporary Housing 
Assistance program. States shall be subject to their own procedures 
provided they afford the occupant(s) with due process safeguards 
described in paragraph (m)(2)(v)(B) of this section.
    (A) Notification to occupant. Written notice shall be given by FEMA 
to the occupant(s) at least 15 days prior to the proposed termination of 
assistance. This notice shall specify: the reasons for termination of 
assistance/occupancy; the date of termination, which shall be not less 
than 15 days after receipt of the notice; the administrative procedure 
available to the occupant if they wish to dispute the action; and the 
occupant's liability after the termination date for additional charges.
    (B) Filing of appeal. If the occupant desires to dispute the 
termination, upon receipt of the written notice specified in paragraph 
(m)(2)(i) of this section, he/she shall present an appeal in writing to 
the appropriate office in person or by mail within 60 days from the date 
of the termination notice. The appeal must be signed by the occupant and 
state the reasons why the assistance or occupancy should not be 
terminated. If a hearing is desired, the appeal should so state.
    (C) Response to appeal. If a hearing pursuant to paragraph 
(m)(2)(ii) of this section has not been requested, the occupant has 
waived the right to a hearing. The appropriate program official shall 
deliver or mail a written response to the occupant within 5 business 
days after the receipt of the appeal.
    (D) Request for hearing. If the occupant requests a hearing pursuant 
to paragraph (m)(2)(ii) of this section, FEMA shall schedule a hearing 
date within 10 business days from the receipt of the appeal, at a time 
and place reasonably convenient to the occupant, who shall be notified 
promptly thereof in writing. The notice of hearing shall specify the 
procedure governing the hearing.
    (E) Hearing--(1) Hearing officer. The hearing shall be conducted by 
a Hearing Officer, who shall be designated by the Regional Director, and 
who shall not have been involved with the decision to terminate the 
occupant's temporary housing assistance, nor be a subordinate of any 
individual who was so involved.
    (2) Due process. The occupant shall be afforded a fair hearing and 
provided the

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basic safeguards of due process, including cross-examination of the 
responsible official(s), access to the documents on which FEMA is 
relying, the right to counsel, the right to present evidence, and the 
right to a written decision.
    (3) Failure to appear. If an occupant fails to appear at a hearing, 
the Hearing Officer may make a determination that the occupant has 
waived the right to a hearing, or may, for good cause shown, postpone 
the hearing for no more than 5 business days.
    (4) Proof. At the hearing, the occupant must first attempt to 
establish that continued assistance is appropriate; thereafter, FEMA 
must sustain the burden of proof in justifying that termination of 
assistance is appropriate. The occupant shall have the right to present 
evidence and arguments in support of their complaint, to controvert 
evidence relied on by FEMA, and to cross examine all witnesses on whose 
testimony or information FEMA relies. The hearing shall be conducted by 
the Hearing Officer, and any evidence pertinent to the facts and issues 
raised may be received without regard to its admissibility under rules 
of evidence employed in formal judicial proceedings.
    (F) Decision. The decision of the Hearing Officer shall be based 
solely upon applicable Federal and State law, and FEMA regulations and 
requirements promulgated thereunder. The Hearing Officer shall prepare a 
written decision setting forth a statement of findings and conclusions 
together with the reasons therefor, concerning all material issues 
raised by the complainant within 5 business days after the hearing. The 
decision of the Hearing Officer shall be binding on FEMA, which shall 
take all actions necessary to carry out the decision or refrain from any 
actions prohibited by the decision.
    (1) The decision shall include a notice to the occupant that he/she 
must vacate the premises within 3 days of receipt of the written notice 
or on the termination date stated in the original notice of termination, 
as required in paragraph (m)(2)(i) of this section, whichever is later. 
If the occupant does not quit the premises, appropriate action shall be 
taken and, if suit is brought, the occupant may be required to pay court 
costs and attorney fees.
    (2) If the occupant is required to give a specific number of days' 
notice which exceeds the number of days in the termination notice, the 
Regional Director may approve the payment of rent for this period of 
time if requested by the occupant.
    (n) Disposition of temporary housing units--(1) Acquisition. The 
Associate Director may purchase mobile homes or other manufactured 
housing units for those who require temporary housing. After such 
temporary housing is vacated, it shall be returned to one of the FEMA-
operated Strategic Storage Centers for refurbishment and storage until 
needed in a subsequent major disaster or emergency. When returning the 
unit to a Strategic Storage Center is not feasible or cost effective, 
the Associate Director may prescribe a different method of disposition 
in accordance with applicable Federal statutes and regulations.
    (2) Sales--(i) Eligibility. When adequate alternate housing is not 
available, the Regional Director shall make available for sale directly 
to a temporary housing occupant(s) any mobile home or manufactured 
housing unit acquired by purchase, in accordance with the following:
    (A) The unit is to be used as a primary residence;
    (B) The purchaser has a site that complies with local codes and 
ordinances as well as FEMA's floodplain management regulations at 44 CFR 
part 9 (in particular Sec. 9.13(e)); and
    (C) The purchaser has sufficient funds to purchase and, if 
necessary, relocate the unit. The Associate Director may approve the 
sale of a mobile home or manufactured housing unit to a temporary 
housing occupant when adequate alternate housing is available but only 
when such sales are clearly in the best interest of the Government.
    (ii) Sales price. Units shall be sold at prices that are fair and 
equitable to the purchaser and to the Government, as determined by the 
Associate Director. The purchaser shall pay the total sales price at the 
time of sale.
    (iii) Adjustment to the sales price.

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    (A) Adjustments to the sales price may be provided only when both of 
the following conditions are met:
    (1) There is a need to purchase the unit for use as the purchaser's 
primary residence because other adequate alternate housing is 
unavailable. Adequate alternate housing must meet the criteria in 
paragraph (c)(1) of this section, and may consist of:
    (i) Existing housing;
    (ii) Additional resources such as disaster-damaged rental 
accommodations which can reasonably be expected to be repaired and 
become available in the near future;
    (iii) New housing construction or housing to be made available 
through Government subsidy which is included in the immediate recovery 
plans for the area; and
    (iv) Residences which can be repaired by the predisaster owner/
occupant through funds available from insurance, other disaster 
assistance programs, or through their own resources.
    (2) In addition to his/her resources, the purchaser cannot obtain 
sufficient funds through insurance proceeds, disaster loans, grants, and 
commercial lending institutions to cover the sales price.
    (B) To determine the adjusted sales price, the current available 
financial resources of the purchaser shall be calculated. If the 
financial resources are equal to or greater than the basic sales price, 
then no adjustment shall be approved. If the purchaser's financial 
resources are less than the basic sales price, the sales price shall be 
adjusted to take into consideration the financial resources available 
but shall include some consideration. Deviations from this rule may be 
reviewed on a case-by-case basis by the Associate Director.
    (C) The Regional Director must approve all adjustments to the sales 
price of a mobile home.
    (iv) Other conditions of sale.
    (A) A unit shall be sold ``as is, where is'' except for repairs 
necessary to protect health or safety, which are to be completed prior 
to sale. There shall be no implied warranties. In addition, the 
purchaser must be informed that he/she may have to bring the unit up to 
codes and standards which are applicable at the proposed site.
    (B) In accordance with the Flood Disaster Protection Act of 1973, 
Public Law 93-234, as amended, the sale of a unit for the purpose of 
meeting the permanent housing need of an individual or family may not be 
approved where the unit would be placed in a designated special flood 
hazard area which has been identified by the Director for at least 1 
year as floodprone unless the community in which the unit is to be 
located after the sale is, at the time of approval, participating in the 
National Flood Insurance Program. The purchaser must agree to buy and 
maintain an adequate flood insurance policy for as long as the unit is 
occupied by the purchaser. An adequate policy for purposes of this 
paragraph shall mean one which provides coverage for the basic sales 
price of the unit. The purchaser must provide proof of purchase of the 
initial flood insurance policy.
    (3) Transfer. The Associate Director may lend temporary housing 
units purchased under section 408(a) of the Act directly to States, 
other Governmental entities, or voluntary organizations. Such transfers 
may be made only in connection with a Presidential declaration of a 
major disaster or emergency. Donations may be made only when it is in 
the best interest of the Government, such as when future re-use by the 
Federal Government would not be economically feasible. As a condition of 
such transfers, the Associate Director shall require that the recipient:
    (i) Utilize the units for the purpose of providing temporary housing 
for victims of major disasters or emergencies in accordance with the 
written agreement; and
    (ii) Comply with the current applicable FEMA policies and 
regulations, including this section; 44 CFR part 9 (especially 
Secs. 9.13 and 9.14), Floodplain Management and Protection of Wetlands; 
44 CFR part 10, Environmental Considerations. The Associate Director may 
order returned any temporary housing unit made available under this 
section which is not used in accordance with the terms of transfer.
    (o) Reports. The Associate Director, Regional Director, or Federal 
Coordinating Officer may require from field operations such reports, 
plans, and evaluations as they deem necessary to

[[Page 443]]

carry out their responsibilities under the Act and these regulations.
    (p) Federal responsibility. The Federal financial and operational 
responsibility for the Temporary Housing Assistance program shall not 
exceed 18 months from the date of the declaration of the major disaster 
or emergency. This period may be extended in writing by the Associate 
Director, based on a determination that an extension is necessary and in 
the public interest. The Regional Director may authorize continued use 
on a non-reimbursable basis of Government property, office space, and 
equipment by a State, other Government entity, or voluntary organization 
after the 18 month period.
    (q) Applicant notification--(1) General. All applicants for 
temporary housing assistance will be notified regarding the type and 
amount of assistance for which they are qualified. Whenever practicable, 
such notification will be provided within 7 days of their application 
and will be in writing.
    (2) Eligible applicants for temporary housing assistance will be 
provided information regarding:
    (i) All forms of housing assistance available;
    (ii) The criteria which must be met to qualify for each type of 
assistance;
    (iii) Any limitations which apply to each type of assistance; and
    (iv) The address and telephone number of offices responsible for 
responding to appeals and requests for changes in the type or amount of 
assistance provided.
    (r) Location. In providing temporary housing assistance, 
consideration will be given to the location of:
    (1) The eligible applicants' home and place of business;
    (2) Schools which the eligible applicant or members of the household 
attend; and
    (3) Agricultural activities which provide 25 percent or more of the 
eligible applicants' annual income.
    (s) NonFederal administration of temporary housing assistance. A 
State may request authority to administer all or part of the temporary 
housing assistance program in the Governor's request for a declaration 
or in a subsequent written request to the Regional Director from the 
Governor or his/her authorized representative. The Associate Director 
shall approve such a request based on the Regional Director's 
recommendation and based on a finding that State administration is both 
in the interest of the Federal Government and those needing temporary 
housing assistance. The State must have an approved plan prior to the 
incident and an approved operational annex within 3 days of the 
declaration in order to administer the program. When administering the 
program the State must comply with FEMA program regulations and 
policies.
    (1) State temporary housing assistance plan. (i) States which have 
an interest in administering the Temporary Housing Assistance program 
shall be required to develop a plan that includes, at a minimum, the 
items listed below:
    (A) Assignment of temporary housing assistance responsibilities to 
State and/or local officials and agencies;
    (B) A description of the program, its functions, goals and 
objectives of the program, and proposed organization and staffing plan;
    (C) Procedures for:
    (1) Accepting applications at Disaster Application Centers and 
subsequently at a State established disaster housing office;
    (2) Determining eligibility utilizing FEMA's habitability contract 
and notifying applicants of the determination;
    (3) Preventing duplication of benefits between temporary housing 
assistance and assistance from other means, as well as a recoupment 
procedure when duplication occurs;
    (4) Providing the various types of assistance (home repairs, 
existing rental resources, transient accommodations, and mobile homes);
    (5) Providing furniture assistance;
    (6) Recertifying occupants for continued assistance;
    (7) Terminating assistance;
    (8) Contracting for services and/or supplies;
    (9) Quality control;
    (10) Maintaining a management information system;
    (11) Financial management;
    (12) Public information;
    (13) Processing appeals; and
    (14) Arranging for a program review.

[[Page 444]]

    (ii) The Governor or his/her designee may request the Regional 
Director to provide technical assistance in the preparation of an 
administrative plan.
    (iii) The Governor or designee shall submit the plan to the Regional 
Director for approval. Plans shall be revised, as necessary, and shall 
be reviewed at least annually by the Regional Director.
    (2) Operational annex. Prior to the State administering the program, 
the state must submit an operational annex which tailors the approved 
State plan to the particular disaster or emergency. The annex must be 
reviewed and approved by the Regional Director within 3 days of the 
declaration or the State shall not be permitted to administer the 
program. The operational annex shall include but not be limited to:
    (i) Organization and staffing specific to the major disaster or 
emergency;
    (ii) Pertinent goals and management objectives;
    (iii) A proposed budget; and
    (iv) A narrative which describes methods for orderly tracking and 
processing of applications; assuring timely delivery of assistance; 
identification of potential problem areas; and any deviations from the 
approved plan. The Regional Director may require additional annexes as 
necessary for subsequent phases of the operation.
    (3) Evaluation of capability. State and local government assumption 
of the temporary housing assistance program for a particular disaster 
shall be approved by the Associate Director based on an evaluation of 
the capabilities and commitment of the entity by the Regional Director. 
At a minimum, the evaluation shall include a review of the following:
    (i) The State temporary housing assistance plan which has been 
approved by the Regional Director prior to the incident, and the 
specific operational annex which has been approved in accordance with 
paragraph (s)(2) of this section.
    (ii) Past performance in administration of temporary housing 
assistance or other similar operations;
    (iii) Management and staff capabilities; and
    (iv) Demonstrated understanding of the tasks to be performed.
    (4) Grant application. Approval of funding shall be obtained through 
submission of a project application by the State or local government 
through the Governor's Authorized Representative. The State shall 
maintain adequate documentation according to the requirements of 44 CFR 
part 13, Uniform Administrative Requirements for Grants and Cooperative 
Agreements to State and Local Governments, to enable analysis of the 
program. Final reimbursement to the State, or final debt collection, 
shall be based on an examination of the voucher filed by the State.
    (5) Authorized costs. All expenditures associated with administering 
the program are authorized if in compliance with 44 CFR 13.22, Allowable 
Costs, and the associated OMB Circular A-87, Cost Principles for State 
and Local Governments. Examples of program costs allowable under the 
Temporary Housing Assistance program include home repairs, costs 
associated with rental payments, reimbursements for temporary housing 
including transient accommodations and commercial site rental, mobile 
home installation and maintenance, mobile home private site development, 
cost of supplemental assistance, mortgage and rental payments, other 
necessary costs, when approved by the Associate Director. All contracts 
require the review and approval of the Regional Director prior to award, 
in order to be considered as an authorized expenditure.
    (6) Federal monitoring and oversight. The Regional Director shall 
monitor State-administered activities since he/she remains responsible 
for the overall delivery of temporary housing assistance. In addition, 
policy guidance and interpretations to meet specific needs of a disaster 
shall be provided through the oversight function.
    (7) Technical assistance. The Regional Director shall provide 
technical assistance as necessary to support State-administered 
operations through training, procedural issuances, and by providing 
experienced personnel to assist the State and local staff.
    (8) Operational resources. The Regional Director shall make 
available

[[Page 445]]

for use in State or locally administered temporary housing programs 
Federal stand-by contracts, memoranda of understanding with Government 
and voluntary agencies, and Federal property, such as government-owned 
mobile homes and travel trailers.
    (9) Program reviews and audits. The State shall conduct program 
review of each operation. All operations are subject to Federal audit.

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

[55 FR 2296, Jan. 23, 1990, as amended at 61 FR 7224, Feb. 27, 1996; 64 
FR 46853, Aug. 27, 1999; 67 FR 61460, Sept. 30, 2002]

Secs. 206.102-206.109  [Reserved]

Sec. 206.110  Federal assistance to individuals and households.

    (a) Purpose. This section implements the policy and procedures set 
forth in section 408 of the Robert T. Stafford Disaster Relief and 
Emergency Assistance Act, 42 U.S.C. 5174, as amended by the Disaster 
Mitigation Act of 2000. This program provides financial assistance and, 
if necessary, direct assistance to eligible individuals and households 
who, as a direct result of a major disaster or emergency, have uninsured 
or under-insured, necessary expenses and serious needs and are unable to 
meet such expenses or needs through other means.
    (b) Maximum amount of assistance. No individual or household will 
receive financial assistance greater than $25,000 under this subpart 
with respect to a single major disaster or emergency. FEMA will adjust 
the $25,000 limit annually to reflect changes in the Consumer Price 
Index (CPI) for All Urban Consumers that the Department of Labor 
publishes.
    (c) Multiple types of assistance. One or more types of housing 
assistance may be made available under this section to meet the needs of 
individuals and households in the particular disaster situation. FEMA 
shall determine the appropriate types of housing assistance to be 
provided under this section based on considerations of cost 
effectiveness, convenience to the individuals and households and the 
suitability and availability of the types of assistance. An applicant is 
expected to accept the first offer of housing assistance; unwarranted 
refusal of assistance may result in the forfeiture of future housing 
assistance. Temporary housing and repair assistance shall be utilized to 
the fullest extent practicable before other types of housing assistance.
    (d) Date of eligibility. Eligibility for Federal assistance under 
this subpart will begin on the date of the incident that results in a 
presidential declaration that a major disaster or emergency exists, 
except that reasonable lodging expenses that are incurred in 
anticipation of and immediately preceding such event may be eligible for 
Federal assistance under this chapter.
    (e) Period of assistance. FEMA may provide assistance under this 
subpart for a period not to exceed 18 months from the date of 
declaration. The Associate Director (AD) may extend this period if he/
she determines that due to extraordinary circumstances an extension 
would be in the public interest.
    (f) Assistance not counted as income. Assistance under this subpart 
is not to be counted as income or a resource in the determination of 
eligibility for welfare, income assistance or income-tested benefit 
programs that the Federal Government funds.
    (g) Exemption from garnishment. All assistance provided under this 
subpart is exempt from garnishment, seizure, encumbrance, levy, 
execution, pledge, attachment, release or waiver. Recipients of rights 
under this provision may not reassign or transfer th