STATE OF COLORADO
HAZARD MITIGATION GRANT PROGRAM
REAL PROPERTY ACQUISITION HANDBOOK
1. INTRODUCTION:
Hazard mitigation is any sustained action taken to reduce or eliminate long-term
risk to people and property from natural hazards and their effects. Therefore,
hazard mitigation actions are measured in terms of long-term hazard risk
reductions and, when possible, the goal of hazard mitigation should be the
permanent elimination of negative consequences resulting from a hazard. It is
important to differentiate hazard mitigation from other phases of emergency
management; chiefly because preparedness, response and recovery measures
address needs created by the occurrence of a disaster or emergency, rather than
interrupting or eliminating the cycle of disaster damage, recovery and re-damage.
For the reason outlined above, the State of Colorado Office of Emergency
Management encourages public and non-governmental agencies and organizations,
private business and industry, and all Colorado citizens, to integrate hazard
mitigation activities into their future development and sustainability plans.
On March 30, 2011, President Obama signed Presidential Policy Directive 8:
National Preparedness (PPD-8), and the National Mitigation Framework was
finalized in May 2013. The National Mitigation Framework comprises seven core
capabilities, including Threats and Hazard Identification, Risk and Disaster
Resilience Assessment, Planning, Community Resilience, Public Information and
Warning, Long-term Vulnerability Reduction, and Operational Coordination. The
Federal Emergency Management Agency’s (FEMA’s) Hazard Mitigation
Assistance (HMA) programs provide funding for eligible activities that are
consistent with the National Mitigation Framework’s Long-term Vulnerability
Reduction capability.
1.1.1. The Hazard Mitigation Grant Program (HMGP) is one of the HMA
grant programs that support implementation of the National Mitigation
Framework. The HMGP is authorized under Section 404 of the Robert
T. Stafford Disaster Relief and Emergency Assistance Act (Public Law
93-288, as amended), hereinafter referred to by the simplified title
“Stafford Act”, and implemented by Title 44, Code of Federal
Regulations, Sub-Part N, Part 206.431. Further, FEMA’s Hazard
Mitigation Assistance Unified Guidance, dated July 12, 2013, outlines
eligibility criteria and grant utilization methodologies for HMA grants.
This handbook supplements the laws, regulations, and guidance mentioned above
and focuses exclusively on the HMGP and its ability to fund acquisition of at-risk
real private property, and the demolition or relocation of the structural
improvements thereupon.
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2. PURPOSE OF HMGP FUNDED REAL PROPERTY ACQUISITION:
HMGP-funded property acquisition and structural demolition or relocation projects
are carefully considered mitigation measures, intended to remove people and
property from highly vulnerable locations. The acquisition of private real property
is undertaken on a voluntary basis by both the selling property owner and the
eligible acquiring entity. Any use of coercive methods, police powers, or eminent
domain condemnation is prohibited. Additionally, Section 308 of the Stafford Act
and Title VI of the Civil Rights Act of 1964 require administration of all HMA
programs in an equitable and impartial manner, without discrimination on the
grounds of race, color, religion, nationality, sex, age, disability, English
proficiency, or economic status.
2.1.
Minimum Criteria:
In order for an HMGP funded acquisition to be eligible the property under
consideration must:
a. Align with the goals, objectives, and actions outlined in the
community’s local Hazard Mitigation Plan.
b. Be acquired from a willing, voluntary seller, in a manner absent of
discrimination as outlined above;
c. In order to participate in the HMGP fully, the voluntary seller must be a
citizen of the United States of America or legally admitted alien. In the
event the seller is not a citizen or is an undocumented alien, the HMGP
authorizes the sub-grantee to offer the seller the property’s present
(post-disaster) fair market value only.
d. Contain a structure that may or may not have been damaged or
destroyed as a result of a hazard event;
e. Be cost effective as demonstrated by using FEMA’s Benefit Cost
Analysis software (version 4.8) or through eligibility under one of the
approved alternative methodologies (see Appendix for Memorandums).
f. May be a parcel of undeveloped at-risk land that is adjacent to a
property containing one or more structures proposed for acquisition, so
long as the project remains cost-effective;
g. Not be contaminated with hazardous materials at the time of acquisition
(incidental household waste and potentially hazardous materials in the
structure, such as asbestos or lead-based paint, are allowable);
h. Not have easements and/or encumbrances that are incompatible with
FEMA’s open-space deed requirements which cannot be extinguished
at the time of title transfer; and,
i. Not be part of an intended, planned, or designated project area for
which the land is to be acquired by a certain date and/or where there is
an intention to use the property for any public or private use that is
inconsistent with the FEMA’s open-space deed requirements or
acquisition requirements.
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2.2.
Demolition or Relocation:
When acquiring a property the buyer not only takes possession of the
property’s surface rights, it also gains title to most of the improvements
thereupon. In most HMGP acquisition projects these improvements must
be demolished and the surface restored to a natural condition. However, in
certain circumstances the HMGP allows the property’s improvements to be
relocated to a less risky location. In order for FEMA to consider relocation
as an eligible project activity, the following conditions must exist:
a. The structure must be structurally sound and able to withstand the
relocation;
b. The replacement location must be outside of the regulatory
floodplain (or if no floodplain is established, an area known to be
absent from flooding);
c. The cost of relocating the structure cannot exceed its pre-disaster
fair market value;
d. The project may reimburse costs for architectural design,
construction of the receiving foundation, utility connections at the
receiving location, the cost of moving the structure, and required
abatement of structural hazardous materials disturbed during
relocation (lead paint and asbestos);
e. The HMGP will not pay to purchase the receiving location, nor will
it pay for any non-essential landscaping or decorative additions.
f. The HMGP will fund the acquisition of the location being
abandoned so long as all open-space requirements are met.
2.3.
Open Space Deed Restriction:
Because risk reduction is a goal of the HMGP, any real property purchased
with HMGP funds must be deed restricted in a manner consistent with the
open-space requirements outlined in 44 CFR, Part II, Subpart N, 206.434
(e)(1). Once the acquired property has been dedicated to a consistent openspace use; meaning that its natural function has been restored, it is the
responsibility of the sub-grantee to conserve in perpetuity said property and
its natural function. The sub-grantee is required to report the status of all
acquired real property to the State of Colorado Hazard Mitigation Officer
no less often than once every three years (See sample deed restriction
document titled “Exhibit A” for Colorado specific language).
As a condition of receiving federal HMGP grant assistance the sub-grantee
promises that after the project is complete all future federal disaster
assistance, regardless of source, will be waived for the acquired property.
Additionally, no federal entity is authorized to provide such assistance to
correct any disaster caused defect upon the HMGP acquired real property.
This prohibition, as outlined in 44 CFR Part II, Subpart N, 206.434
(e)(1)(iii), is also to be included as part of the Deed restriction.
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2.4.
Demolition of Structures Prior to HMGP Project Approval:
There may be circumstances when a structure proposed for acquisition
under the HMGP will need to be demolished on an emergency or urgent
basis. When such a situation arises, the applicant must take reasonable
steps to gather the data necessary for future review of the structure’s
eligibility under the HMGP. The following outlines the types of data
usually required:
1. If safety permits, obtain exterior and interior photographic
evidence of the structure, to include any unique or unusual
fixtures or features;
2. Records indicating the structure’s date of construction, and the
year and specifics for any significant remodeling or renovations;
3. A narrative describing the use of the structure (i.e. full-time
dwelling, commercial, recreational, etc.); the square footage of
structure; and apportionment of square footage if more than one
type of use exists;
4. A narrative describing the emergency or urgent circumstances
that warrant the structure’s demolition; and,
5. Documentation of what temporary measures are currently in
place or proposed to preserve environmental integrity predemolition, or in the alternative, what environmental protection
measures were used during and after the structure’s demolition.
The applicant will provide the data outlined above as quickly as possible to
the Grantee in order for an Environmental & Historic Preservation (EHP)
Emergency Consolation to occur. If at all possible, the structure should not
be demolished until the EHP has reviewed the applicant’s narrative and
cleared the property.
3. REGULATIONS RELATING TO THE HMGP:
3.1. Grantee Regulations:
Fiscal responsibility and good project management are vital components of the
grant’s administration goals. Proper accounting will ensure proper fiscal practice.
The State of Colorado, Office of Emergency Management, as Grantee, has primary
responsibility for project management and accountability of funds as indicated in
44 CFR Part 13, Uniform Administrative and Requirements for Grants and
Cooperative Agreements to State and Local Governments.
3.1.1. Title 44, Part 13 addresses various administrative procedures,
including:

Use of standard application format;
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Requirement that a State plan be developed before grant money can
be received;
Financial management such as payment methods and allowable
costs;
Monitoring of Grantee and Sub-grantee activities through progress
reports; and
Recordkeeping.
3.1.2. Title 44, Parts 220, 225, and 230:
Depending on which entity has been awarded a grant, Title 2 CFR
provides additional guidance:


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Part 220 – Cost Principles for Educational Institutions
Part 225 – Cost Principles for State, Local, and Indian Tribal
Governments
Part 230 – Cost Principles for Non-Profit Organizations
3.1.3. Title 44 CFR Part 206:
Title 44 CFR, Part 206, titled “Federal Disaster Assistance for Disasters
Declared on or after November 23, 1988” prescribes the policies and
procedures to be followed in implementing Section 404 of the Stafford
Act, as amended, (Hazard Mitigation Grant Program and Pre-Disaster
Mitigation Programs). 44 CFR Part 78 prescribes the policies and
procedures to be followed for implementing the Flood Mitigation
Assistance program.
3.2. Sub-Grantee Regulations:
The sub-grantee is responsible for ensuring compliance with the various laws and
regulations issued in connection with the HMGP. The following gives a short
explanation of the laws and regulations most commonly necessary for
implementation of a HMGP grant. Additionally, specific relevant FEMA guidance
and Office of Management and Budget (OMB) circulars are also outlined.
3.2.1. The Disaster Mitigation Act of 2000, Public Law 106-390:
The purpose of this title is to establish a national disaster hazard
mitigation program- (1) to reduce the loss of life and property, human
suffering, economic disruption, and disaster assistance costs resulting
from natural disasters; and (2) to provide a source of pre-disaster hazard
mitigation funding that will assist States and local governments
(including Indian tribes) in implementing effective hazard mitigation
measures that are designed to ensure the continued functionality of
critical services and facilities after a natural disaster.
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3.2.2. The National Flood Insurance Act of 1968, 42 U.S.C.:
Authorizes a flood insurance program by means of which flood
insurance, over a period of time, can be made available on a nationwide
basis through the cooperative efforts of the Federal Government and the
private insurance industry, and provides flexibility in the program so
that such flood insurance may be based on workable methods of
pooling risks, minimizing costs, and distributing burdens equitably
among those who will be protected by flood insurance and the general
public.
3.2.3. Robert T. Stafford Disaster Relief and Emergency Assistance Act
(Public Law 93-288, as amended):
In 1988, Public Law 93-288 was amended by Public Law 100-707 and
retitled as the Robert T. Stafford Disaster Relief and Emergency
Assistance Act (Public Law 93-288, as amended). The Stafford Act
provides the authority for the Federal Government to respond to
disasters and emergencies in order to provide assistance to save lives
and protect public health, safety, and property.
3.2.4. Uniform Relocation Assistance and Real Property Acquisition Policies
Act of 1970 (Pub. L. 91-646, 84 Stat. 1894, 42 U.S.C. 4601):
This establishes a uniform policy for the fair and equitable treatment of
persons displaced as a direct result of programs or projects undertaken
by a Federal agency or with Federal financial assistance. The primary
purpose of this subchapter is to ensure that such persons shall not suffer
disproportionate injuries as a result of programs and projects designed
for the benefit of the public as a whole and to minimize the hardship of
displacement on such persons.
3.2.5. FEMA Hazard Mitigation Assistance Unified Guidance, July 12, 2013:
This document presents information about implementing and managing
hazard mitigation grants. Specifically, the Unified Guidance guides
implementation of the HMGP, Pre-Disaster Mitigation (PDM) program,
and the Flood Mitigation Assistance (FMA) program. An addendum to
the Unified Guidance was published to highlight the additional
requirements of specific project types.
3.2.6. Title 2 CFR – Grants and Agreements:
This title contains: (a) Office of Management and Budget (OMB)
guidance to Federal agencies on government-wide
policies
and
procedures for the award and administration of grants and agreements;
and (b) Federal agency regulations implementing that OMB guidance.
This CFR consolidates many of the individual OMB circulars that
formerly applied to federal grants management.
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3.2.7. OMB Circular A-89 – Catalog of Federal Domestic Assistance:
This revised circular provides the basis for a systematic and periodic
collection and uniform submission of information on all federally
financed domestic assistance programs to the Office of Management
and Budget (OMB) by Federal agencies. It also establishes Federal
policies related to the delivery of this information to the public,
including through the use of electronic media. The sub-grantee will be
required to cite compliance with this circular during audit of the grant
award.
3.2.8. OMB Circular A-94 – Guidelines and Discount Rates for Benefit-Cost
Analysis of Federal Programs:
The goal of this Circular is to promote efficient resource allocation
through well-informed decision-making by the Federal Government. It
provides general guidance for conducting benefit-cost and costeffectiveness analyses. It also provides specific guidance on the
discount rates to be used in evaluating Federal programs whose benefits
and costs are distributed over time. The general guidance will serve as a
checklist of whether an agency has considered and properly dealt with
all the elements for sound benefit-cost and cost-effectiveness analyses.
3.2.9. Hyperlinks to the documents cited above are provided in their titles. If
a paper copy is needed, please contact the State Hazard Mitigation
Officer and one can be provided to you.
3.3. Documentation and Financial Record Keeping:
The importance of both accurate and proper documentation cannot be
overemphasized.
Additionally, it is extremely important that local
governments initiate proper financial record keeping before, during, and
immediately after any project. You must know what records to keep and how
to keep them. Someone knowledgeable enough to start keeping these records
must be designated when performing any kind of mitigation grant work. It is
virtually impossible to accurately and properly complete the necessary
documentation after the work has been done and a lengthy period-of-time has
elapsed. Without proper record keeping local governments stand to lose
considerable sums of federal funds when claims for reimbursement cannot be
justified. The necessary supporting documentation must be completed if any
federal or State reimbursement is to be received.
Both the Grantee and sub-grantee must account for grant funds in accordance
with federal, State, and local laws and procedures. Fiscal control at the subgrant level must be sufficient to:
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Provide for accurate, current and complete disclosure of the financial status
of the grant award by budget line item.
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Have a ledger system that adequately identifies deposits and disbursements
of the grant award. Recipients must be able to trace every federal dollar
received, and prove where it went and for what it was used – an audit trail
must be established.

Provide effective control over and accountability of federal cash, real and
personal property, and other assets. Grant recipients must adequately
safeguard all property and must assure that it is used solely for authorized
purposes.
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Be able to compare actual expenditures with budgeted amounts as
identified on the approved scope of work budget line-items, grant
agreement, and any amendments.
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Have accounting records that are supported by source documentation.

Be able to document sources of funding to be counted as the required
match.
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Be able to show the approved scope of work was performed during the
approved period of performance.
4. KEY DEFINITIONS & CONCEPTS:
GRANTEE:
The State of Colorado enters into a FEMA-State agreement and in
doing so becomes designated as the Grantee. The Governor
designates an Authorized Representative (GAR); who may in turn
appoint alternates and subordinates to implement the various
assistance programs authorized by the President. The Grantee is
required to develop and maintain a current FEMA approved State
Standard Hazard Mitigation Plan in order to receive financial
assistance.
SUB-APPLICANT &
SUB-GRANTEE:
State agencies, local units of government, Tribal governments, and
certain non-profit organizations qualify as applicants, and those
with FEMA approved mitigation proposals are designated as SubGrantees. The Grantee, through the Colorado Office of Emergency
Management, enters into a grant agreement with Sub-grantees who
are authorized to acquire certain flood damaged real property.
These grant agreements contain provisions to ensure HMGP funded
acquisitions are undertaken in a manner that is consistent with the
requirements of 44CFR§206.434 and other federal and state
regulations.
FUNDING:
The State of Colorado will receive a HMGP award equal to15% of
the FEMA funds expended by the Individual and Public Assistance
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programs, certain Mission Assignments, and certain other direct
assistance programs. Because HMGP funding is formula based, it
is not unusual for the grant estimate to undergo change long after
the date of declaration.
FUNDS
AVAILABILITY:
Applicants should be aware that historically the funds requested
from the HMGP exceed the amount of money available. Therefore,
applicants should regard the HMGP as a competitive grant and rank
proposals in priority order; highest first, second next, and so on.
NOTICE OF INTENT:
Following a major disaster declaration, the Colorado Officer of
Emergency Management will notify potential HMGP applicants of
the program’s availability. In response to such a notification,
potential applicants should prepare and submit to the Grantee a
“Notice of Interest (NOI)” form (see Sample NOI form).
SUB-GRANT
APPLICATION:
Upon receipt of all NOI Forms, the Grantee evaluates the submitted
applicant’s proposed projects against the minimum eligibility
requirements established under FEMA and State guidelines. The
Grantee will send HMGP application packages to all eligible
applicants who have submitted an acceptable NOI. Additionally,
the Grantee will advise all eligible applicants of its priorities for
distributing HMGP funding.
COST SHARING:
The total project cost, once tabulated, is divided federal and nonfederal shares. The maximum federal share may not exceed 75% of
the project’s cost. The minimum non-federal share is no less than
25% and can be derived from multiple sources. Additionally, the
non-federal share may be a cash contribution, cash equivalent
contributions, or a combination of both.
ICC AS A COST
SHARE MATCH:
The National Flood Insurance Program (NFIP) provides Increased
Cost of Compliance coverage (ICC) to assist with mitigation
projects when ALL of the following are present:
a. The community is a participant in good-standing with the NFIP;
b. The structure to be mitigated is located in the regulatory Special
Flood Hazard Area;
c. The structure has a regular NFIP issued flood insurance policy
that contains Part D coverage;
d. The structure has been substantially damaged by flood, as
certified by a competent local official, and is required to come
into compliance with the jurisdiction’s Floodplain Management
/ Flood Damage Reduction Ordinance; and,
e. The ICC coverage will not cause the total insurance payout to
exceed the limits of liability of the policy.
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The amount of ICC coverage is limited to the actual cost of the
covered measure, not to exceed $30,000.00. Covered measures
include the following:
1. Demolition of the structure, any improvements on or to the
lot, to a depth of two feet, and disconnect of utilities
necessary to comply with local ordinance requirements (may
be used to demolish HMGP acquired structure); or, in the
alternative,
2. Elevation of the structure to the Base Flood Elevation (BFE)
plus and additional height requirement (freeboard) required
by local floodplain management / flood damage reduction
ordinance; or,
3. Relocation of the structure to a location outside of the
regulatory Special Flood Hazard Area; or,
4. Dry flood-proofing of a historic structure that is individually
listed on the National Register of Historic Places or is listed
as a contributing structure within a designated National
Historic District.
The insured property owner may assign the ICC benefits to the
applicant in order to allow Part D funds to cover a portion of the
non-federal match relating to any covered measure (see sample ICC
form & instructions).
PROPERTY
OWNER MATCH:
The property owner may contribute all or some of the non-federal
share by accepting an amount less than the full fair market value for
the sale of the property. In addition to the percentage withheld from
the purchase price, it may be necessary for the applicant to withhold
in escrow an amount equal to the estimated non-federal share of the
property’s incidental costs. Any unused escrow amount will be
returned to the seller at the completion of the project.
COMMUNITY
DEVELOPMENT
BLOCK GRANT
AS A MATCH:
When Community Development Block Grant funds are used to
match HMGP grants, both programs’ requirements apply to the
whole project. It is necessary to review the Action Plan for the
program being used; particularly if the funds come from Disaster
Relief (CDBG-DR); so that the approaches and schedules agreed to
between the programs involved are followed. The objective is to
make the process as simple and consistent as possible. In the case
of CDBG the funds are considered to have lost their federal identity
once awarded to the Grantee and can be used to provide all of part
of the required non-federal match. Additionally, the CDBG can
exceed the minimum match required by FEMA for grant awards.
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DUPLICATION
OF BENEFITS:
Benefits provided to disaster survivors can come in many forms and
from many sources. For the purpose of examining potential project
participants for Duplication of Benefit deductions, only grant
assistance received from federal government agencies or an
insurance payment for structural loss from the National Flood
Insurance Program apply (either direct or from a write your own
company). The method for performing a DOB evaluation is
described later in this handbook.
DUPLICATION
OF PROGRAMS:
Many federal grant programs prohibit duplication of program (DOP)
payments or co-mingling funds between different grants. However,
the Community Development Block Grant (CDBG) is a federal
appropriation to states and certain communities that can be used to
meet all or some of the non-federal match requirement under the
HMGP. If used, you will be required to identify this source because
the combination of FEMA HMGP and CDBG funds may trigger the
requirement for a Single Audit Act report.
5. GETTING THE APPLICANT’S PROPOSAL STARTED:
Once an applicant decides to pursue a HMGP grant a series of sequenced steps should
occur.
A. Applicant’s Authorized Agent:
The applicant must pick an individual to manage development of the proposal.
In many cases this individual will be an employee of the applicant who has
knowledge of the applicant’s organizational structure, local ordinances, and is
aware of the problem(s) to be addressed through hazard mitigation. The
selected individual is designated the “applicant’s agent”, and a resolution
appointing the agent must be forwarded to the Grantee with the applicant’s
NOI (see sample Designation of Agent Resolution form).
B. Duties Assigned to the Applicant’s Authorized Agent:
The applicant’s agent should become familiar with the laws, rules, regulations,
and guidance that pertain to the HMGP. Both the State of Colorado and
FEMA provide information to help guide the agent through this process and
much of the information necessary to manage the application’s development is
included in this handbook. The applicant’s agent will ultimately manage
development of the applicant’s HMGP proposal; to include assigning tasks to
others; while retaining overall responsibility for the work. In many cases the
applicant’s agent will become the Sub-grantee’s Project Officer if and when
the proposal is approved.
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C. Keeping Potential Project Participants Informed:
It is human nature that people impacted by unfamiliar and disruptive events
will take action to restore a normal station for themselves and their families as
quickly as possible. Regrettably, some people will take the wrong actions
following disaster, usually because factual information and awareness of better
options are not available. For this reason it is highly encouraged that the
applicant establishes a method of sharing accurate and timely information with
its citizens. With regard to the HMGP, a public meeting to explain how the
program might be utilized has been found to be useful. A public meeting
allows people to express how their individual recovery plans are progressing
and what assistance might be needed to complete same. This exchange of
information allows a comparison between individual and community-wide
goals to occur, and inconsistencies between the two to be recognized earlier
rather than later. Further, it can give public officials and community leader’s
insight into what mitigation priorities exist and how they should be ranked.
Lastly, a sign-in sheet can be used during the public meeting that will help
establish a tool for maintaining contact with people who might be eligible for
inclusion in your community’s HMGP application (see sample HMGP meeting
sign-in sheet).
D. Citizen and Non-Citizen (or Undocumented) Participants
Participants in FEMA funded HMGP projects must be citizens or non-citizen
nationals of The United States of America, or a qualified alien of the United
States, in order to receive full consideration under the program (see 8 U.S.C.
1101 – Definitions).
D.1.
Undocumented aliens (or anyone who refused to provide proof of
citizenship) who own real private property and wishes to participate in
an HMGP funded acquisition project may do so with the following
limitations:


D.2.
The property owner will not receive pre-disaster fair market value
for the sale of their real private property. Only current (postdisaster) appraised property value can be offered.
The property owner will not receive any comparable housing
assistance supplemental payments.
Undocumented tenant of real property being acquired are not eligible to
receive
Uniform Relocation Assistance and Real Property Acquisition Policies
Act of 1970 relocation assistance payments or relocation advisory
services.
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FEMA may approve exceptions if unusual hardship to the alien’s
spouse, parent, or child, who is a U.S. Citizen or an alien admitted for
permanent residence, would otherwise result.
D.3. FEMA Form 90-69B (Aug 2010) titled “Declaration and Release” is
used to record citizenship status. Each property proposed for acquisition
should have in its file a Declaration and Release from the property
owner. Each tenant head-of-household should also be asked to complete
a Declaration and Release form if they have claimed or plan to claim
displaced person status under the Uniform Relocation Assistance Act.
E. Developing Property Primary and Stand-by Lists:
The applicant must carefully consider which properties it intends to acquire
and which ones it will not acquire. The need for such consideration is simple;
many property owners may desire an acquisition for different reasons, but only
those properties that are at significant risk, and for which acquisition is the
most prudent mitigation measure possible, should comprise the acquisition
proposal. These high risk structures usually comprise the proposal’s Primary
Acquisition List. However, since it is possible that a significant number of
structures will fit the Primary Acquisition List criteria, other factors may need
to be considered to keep the proposed project a manageable size and to avoid
causing other ripple effect problems in the community.
Therefore,
development of a Secondary Acquisition List is encouraged.
All of the properties under consideration would be reviewed for risk severity
using a uniform methodology that employs a “worst goes first” ranking system.
The highest ranked properties would comprise the Primary Acquisition List,
and those with lower rankings but still eligible would comprise the
“Alternative Properties” list. Using a uniform methodology ensures that
everyone is treated fairly in the prioritization process; and that property owners
not selected for the primary list understand why and where they stand in case
property substitutions become possible (see Acquisition Application for
“Alternative Properties” form).
F. Hazardous Materials Certification:
Because property purchased through FEMA mitigation programs must be
returned to its natural state, it must be free of any hazardous materials.
Properties that have been used as a dry cleaners or gas station, for example,
would most likely have hazardous deposits. This certification ensures that the
property owner has disclosed any known or suspected contamination to
programmatic eligibility reviewers (see Hazardous Materials Property Survey
– Individual Property Survey Form).
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G. Collecting Required Individual Property Data:
The applicant’s agent should provide property data packets to owners of
properties that have been identified for potential acquisition. These packets
should include the following forms (samples for A through F of the below are
included):
a.
b.
c.
d.
e.
f.
g.
h.
i.
j.
Individual Property Worksheet;
Voluntary Participation Agreement – Part I;
Homeowner Affidavit (DOB);
Hazardous Materials Property Survey – Individual Property Survey
Form;
Uniform Relocation Assistance Tenant Worksheet for each rental
family;
Comparable Housing Assistance / 180-Day Homeowner Application (if
applicable);
Copy of property’s Warranty Deed / Deed of Trust;
Copy of Quit Claim Deed for mineral rights (if applicable);
Photos of the front and rear of the subject property, and a street scene
photo showing the area where the structure is located (this data
collection step may be performed by the applicant to better control
quality or may be required of the property owner, whichever the
applicant’s agent wishes); and,
FEMA Form 90-69B – Declaration and Release.
A method for property owners to ask questions or obtain help with completing
their packets should be established. Also, a deadline for property owners to
return their packets needs to be set. The applicant should make clear any
consequence the property owner may face if they do not return the packet by
the deadline (e.g. moved from the primary list to a stand-by list, dropped from
the proposal).
H. Property Acquisition Case Files:
As soon as property owners start returning their packets, the applicant’s agent
(or persons designated by the agent) should begin a completeness review of the
documents. The completed packets should be assigned a sequence number for
ease of tracking. A master tracking sheet showing the sequential number of
each property should be developed (see sample HMGP Acquisition Case
Files). Incomplete property owner packets should be worked toward
completion as soon as deficiencies are detected. FEMA will not be able to
accept a HMGP proposal that has incomplete property site inventory data.
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I. Additions to the Property Acquisition Case File:
The applicant should also develop a packet of supporting documents for each
sequenced property site inventory packet it has reviewed. The supporting
documents should include the following:
a. Tax ticket (most recent full assessment report);
b. Flood Insurance Rate Map (FIRM) or location specific flood map
(FIRMette) that shows the location of the structure(s) to be acquired;
c. Topographical map (1:24,000 scale);
d. Geographic map for the property showing coordinates;
e. Copies of all Deeds and easements (unless provided by property
owner); and,
f. Photographs of the property and a street scape.
J. Benefit Cost Analysis (BCA):
HMGP projects are required by statute and regulation to be demonstrated as
cost-effective or presumed to be cost-effective using one of the FEMA
approved alternative methodologies. The minimum benefit cost ratio (BCR)
required to fund an HMGP project is 1.0; meaning the anticipated future
disaster recovery cost savings will at least equal the proposal’s costs.
The applicant, in order to fulfill this requirement, may undertake to use
FEMA’s BCA software tool (version 4.8). The FEMA tool will require the
user to enter a variety of data sets to include: property site information; past
damage data; location specific data; and, estimated project costs (pro-rated per
property). The FEMA tool also calculates environmental benefits once the
proposal reaches a ratio of 0.75 or higher. The applicant may request approval
to use an alternate benefit cost analysis method / software with approval from
the FEMA Regional Administrator.
Alternatively, the applicant may also use one of the following alternative
methodologies:
1. The subject property is located in a FEMA identified Special Flood
Hazard Area and:
a. Is “substantially damaged” * as a result of one or more perils for
which the Major Disaster Declaration was granted; or,
b. Has a total acquisition / demolition (or relocation) cost of
$276,000 or less.
2. The subject property in located in an area designated to be at “imminent
risk” ** due to wildfire damage by another federal agency (e.g. Natural
Resource Conservation Service (NRCS), U.S. Forestry Service (USFS),
etc.).
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Substantially damaged in this context means, “The cost to repair
damages suffered by the structure equals or exceeds 50% of its predisaster fair market value.”
** Imminent risk in this context means, “A property likely to be
substantially damaged within three years of the wildfire
containment date.”
*
The applicant may wish to conduct a BCA before completing the remainder of
the HMGP proposal since cost-effective proposals are the only type of regular
measures that can be approved by FEMA.
K. Developing a Problem Statement:
Once the property packets have been organized and the expected number of
participating properties is fixed; the next step for the applicant’s agent is to
develop a narrative statement of what problem the proposed project is expected
to solve. Summarize the applicant community’s disaster history and how the
selected properties were impacted by the hazard that the applicant hopes to
mitigate. Also outline how the hazard impacts people, both in terms of the
number of people directly impacted as well as the “ripple” effect the disaster
has had on employment, small business viability, child & adult mental health,
and any other human or societal impact worth noting.
L. Weighing Possible Alternatives to Solve the Problem:
Once the problem has been outlined, the applicant’s agent must consider
whether or not a mitigation measure is the appropriate means for addressing
the problem. The applicant must first consider the impact of doing nothing. In
some cases the “no action” alternative may be the least popular alternative (as
far as private citizens are concerned) but the best for the community as a
whole. It is also important to understand that people might take action even if
the community doesn’t. There are many communities that are now dealing
with abandoned structures that the owners simply walked away from because it
was better than staying. These factors should also be considered when
developing the “no action” alternative.
The next step is to develop at least two “action” alternatives. These
alternatives may employ different techniques and features, and the applicant
may combine as few or as many of these in order to develop a workable
alternative. Some examples include:
1. Acquire flood-prone structures based on geographic location (i.e.
structures within the regulatory floodplain/floodway);
2. Address hazard risk reduction through structural elevation;
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3. Rank structures for mitigation based severity of damages (i.e.
repetitive loss properties, substantially damaged structures);
4. Undertake roadway mitigation in areas historically inaccessible
during or after flood events.
The “no action” and both “action” alternatives are then compared and the best
alternative is selected (since this is an acquisition manual – acquisition should
be the selected alternative). If the “no action” alternative is selected, the
applicant should notify the Grantee that it intends to withdraw its NOI and decertify its Applicant’s Authorized Agent. If the selected “action” alternative is
not acquisition, the applicant’s agent should notify the Grantee in order to
obtain specific guidance for the type of project selected. Applicants who elect
acquisition should continue with developing their proposal using this handbook
as a reference tool.
M. Budget Development:
Next, the applicant’s agent should develop a budget for the proposal. In doing
so the applicant can determine if the proposed project is likely to be costeffective, and if the resources needed to fulfill the non-federal share of the
project’s cost are within the means of the applicant.
a. This begins with calculating an estimated cost for each property it
intends to acquire. The applicant may choose to appraise each
property, but the cost to do so may not be covered unless pre-award
costs are authorized. Even if pre-award costs are authorized, that is not
a guarantee that the applicant’s HMGP proposal will be approved; and
the pre-award costs associated with developing the application might be
considered “sunk costs” and cannot be reimbursed. A less costly
approach to estimating property values is to use the Tax Tickets for
each property and assign a multiplication factor that is likely to bring
the property to its expected fair market value.
Note the following example:
Property Owner(s)
Doe, John & Jane
Kane, Citizen
Ready, I.M.
Address
P.O. Box 21
123 A Street
Align Alley
Map Data Base Value Factor Initial Offer
44.2.3
$25,000.00
1.67 $41,750.00
44.3.8 - 3.9 $20,000.00
1.67 $33,400.00
2 - 3.5
$31,000.00
1.67 $51,770.00
In this example the community’s rate of assessment is 60% of fair
market value (Base Value). The Base Value includes all improvements
thereupon and a separate value for land. A multiplication factor of 1.67
is needed to bring the full assessment to approximately 100% (Initial
Offer Value). So for property #1 a straight calculation is used. In
example #2 property’s base value is the tax assessment for the structure
and the land, but an adjoining undeveloped parcel is also included on
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Final Price
$41,750.00
$35,000.00
$51,770.00
the Deed. This vacant lot has a separate index value of $1,600.00. In
the case of property #2 only the Base Value is multiplied and the vacant
lot is then added since it is already indexed to be at full value. In
example #3 a series of lots make up the property’s deed and the
improvements may cross lot boundaries. Rather than trying to figure
out what improvement exists on which lot, the total of all land and
improvements is multiplied, just like the straight run example (see
sample & worksheet).
b. The next step is to develop the incidental costs of the project. Usually,
this step is also done by estimating a fixed per unit item cost (i.e.
appraisal of each property) multiplied by the number of units needed
then multiplied by the number of properties to be acquired.
Example: $350.00 per appraisal x two appraisals per structure x 10
structures = $7,000.00
The following are typical incidental costs:
1.
2.
3.
4.
Appraisal fees (2 units per property)
Title Search & Title Insurance fees (1 unit per property)
Legal service & recording fees (1 unit per property)
Relocation Assistance fees (1 for each renter entitled to Uniform
Relocation Assistance (URA) – see “Section K” and 1 for each
primary residential owner entitled to Comparable Housing
Assistance (CHA) – see “Section L”)
5. Property survey fees (1 unit per property – if required)
6. NESHAP / Hazardous Materials Inspection fee (1 unit per property)
7. Asbestos lab testing (approximately 10 units per structure)
8. Asbestos abatement fee (approximately 4 units per structure – but
generally any structure built after 1977 should be free of asbestos)
9. Demolition - to include Construction & Demolition (C&D)
materials landfill tipping fees (1 unit per property)
10. Erosion control and land stabilization - not to include landscaping
(1 unit per property)
11. Management costs (lump sum amount per project)
12. Advertising costs (lump sum amount per project)
13. Single Audit Act report – if required (lump sum amount per project)
N. Factors That Affect the Budget - Duplication of Benefits:
It is illegal for a property owner to be paid twice for the same loss at taxpayer’s
expense. Therefore, the applicant must subtract from the purchase price the
total value of disaster-related government repair assistance and/or NFIP real
property repair and replacement payments provided to the owner. This lawful
requirement is known as Duplication of Benefits (DOB) deductions. The DOB
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requirement only applies to real property repair assistance and does not apply
to any personal property or medical, funeral, commodities, or counseling
assistance or insurance payments that may have been provided to the property
owner.
1.
Method for calculating DOB:








Using the DOB Homeowner Affidavit, determine the total amount of
benefits paid to the property owner (see DOB Homeowner Affidavit).
Only grant assistance from a government agency or the NFIP should be
included.
Assistance received from family members, private
individuals, non-governmental agencies or organizations, or State or
local units of government, are excluded from DOB tabulation.
Only grants to repair real property or NFIP insurance payments to
indemnify structural loss are considered under the DOB review. Grants
for personal property repair or replacement, medical services or
devices, funeral costs, transportation, occupational supplies and
equipment, and/or temporary housing are not subject to DOB
deductions.
The applicant will, in most cases, use a pre-flood valuation method.
Regardless of the valuation methodology selected, it should be applied
consistently throughout the project. Any deviation from the method
selected needs to be explained.
If the pre-disaster method is used, the grant assistance and exclusions
outlined in Items 1 & 2 are subject to DOB review.
If the applicant is using a post-disaster valuation method to determine
the property’s fair market value, DOB deductions do not apply.
The post-disaster method is required when the seller is a non-citizen of
the U.S. (and no dependent of the seller qualifies as a U.S. Citizen or
has legal alien status). Further, it is possible that post-disaster repairs
will have made the property more valuable than it was pre-disaster. If
that is the case, the applicant should use the post-disaster value and not
perform the DOB review.
Itemized receipts (or other valid proof of payment – such as paid
contractor invoices) are used to offset the benefit. Materials purchased
and work done without receipt or invoice may not be counted as the
expense cannot be factually proven.
Additionally, the value of any work performed by the following may
not be claimed as an offset to DOB deductions:
a. The property owner and/or the owner’s family;
b. Any person performing work without compensation;
c. Uncompensated voluntary agency or organized group (i.e.
Mennonite Disaster Services, Habitat for Humanity, Church of
the Brethren, etc.);
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
Once all DOB deductions and offsets have been calculated, the amount
of unused benefits is deducted from the purchase offer (see example
below).
Example:
FEMA provides $1,000.00 to replace front steps:
Property owner has $900.00 in receipts for repair
of front steps:
Potential DOB deduction:
$1,000.00
($900.00)
$100.00
In some cases a repair/replacement cost will exceed the benefit
provided. In such cases a carry-over of up to 10% of the grant amount
is allowed.
Example – continued from above:
FEMA also provided $400.00 for a railing:
Property owner has $450.00 in receipts for
a new railing.
Overage amount
Allowed carry-over amount ($400 x 0.10)
New potential DOB deduction
$400.00
($450.00)
($50.00)
($40.00)
$60.00
O. Factors That Affect the Budget – Uniform Relocation Assistance:
Tenants in legal status occupying rental property acquired with HMGP funds
are entitled to relocation assistance under the Uniform Relocation Assistance
and Real Property Acquisition Act of 1970 (42 U.S.C. §4601 et seq.) as
implemented by 49 CFR, Part 24, (simply referred to as URA or the Act) when
the following conditions exist:
1. URA Eligibility:



A “tenant” may be an individual, family, small privately owned
business, partnership, corporation or association who legally occupies
real property on a rental basis at least 90-days before the start of
acquisition negotiations;
The tenant, or a household dependent of the tenant, must be a U.S.
citizen or lawful alien to qualify for assistance under URA;
The tenant qualifies as a “displaced person” under URA when a
federally funded HMGP project causes the tenant to relocate as a result
of acquisition of their rented property;
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

A displaced person may also be a tenant who owns a mobile home but
pays rent to another person to occupy the home-pad; and,
The displaced person must have rented (or purchased) and occupied a
decent, safe and sanitary replacement dwelling within one year after the
date he/she moves out of the displacement dwelling.
The actual amount of URA assistance can vary, but will not generally not
exceed the amount prescribed in the Act (presently the maximum grant is
$5,250.00). The cost for providing relocation advisory assistance to authorized
tenants is paid from project funds using the 75% federal and 25% non-federal
cost sharing ratio. Tenant relocation assistance includes one-time expenses,
such as moving and temporary storage, utility transfer fees, security deposits
(less those due to be reimbursed by the landlord or utility provider), and up to
42 months of on-going expenses, such as increased rents and utilities.
2. URA Procedure:







The applicant should complete a Uniform Relocation Act Tenant
Application for each family occupying a rental unit (see sample URA
form);
Since it is possible for more than one family to legally occupy a single
rental unit (a property with a single address, but tenant in-common living
space), each family will have separate eligibility for URA assistance;
The individuals that make up a family are not separately eligible for URA
and only one Tenant Application should be prepared per family;
If the individuals that make up a family decide to go their separate ways as
a result of being displaced, the URA allowance, as calculated on the
Tenant Worksheet portion of the Tenant application, should be divided
based on each individual in the family and what percentage of the total
URA allowance their need generates;
Regardless of the cumulative needs of the displaced family, the total
compensation for all URA assistance to a single family cannot exceed the
maximum assistance amount specified by the URA;
The property owner, as landlord, is responsible for notifying the tenant of
possible displacement. The property owner should also notify the tenant to
contact the applicant’s agent for possible rental relocation assistance; and,
If the property owner fails to notify the tenant, the applicant’s agent must
take steps to protect the rights of any eligible displaced person (people).
At a minimum the applicant’s agent must make an effort to contact the
tenant of the property proposed for acquisition and explain that he/she/they
may be eligible for possible rental relocation assistance.
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3. Tenant Case Files:
A tenant case file should be set up for each eligible tenant, and a Case File
Status Chart and a Communications Log should also be maintained. By
closing, each tenant case file should contain the following required
documentation for any URA disbursements:

Letter of Notification: As soon as you notify property owners that their
properties are eligible for acquisition, notify any tenants of those properties
that the property might be sold and advise them of their rights,
responsibilities, and options. Keep a copy of the letter and proof of
delivery in the case file.

Notice of Relocation Eligibility: This notice informs tenants that their
landlord has accepted an offer to sell their home and, consequently, they
are now eligible for relocation assistance benefits. Keep a copy of the
letter and proof of delivery in the case file.

90-day notice to vacate: Send a 90-day notice to vacate to any tenant
still residing in a property being acquired immediately after the property
owner accepts the community’s offer to purchase. Keep a copy of the
letter and proof of delivery in the case file.

30-day notice to vacate: Send a 30-day notice to vacate to tenants as
applicable. Keep a copy of the letter and proof of delivery in the case file.

Tenant Relocation Assistance Application and Worksheet: This
application and worksheet, to be completed at the tenant’s individual
appointment, determines whether the tenant is eligible for relocation
benefits and, if so, how much. Give the tenant a copy and keep a copy of
the completed application/worksheet in the tenant case file.

Receipts: Tenants should submit proof of moving expenses and decent,
safe, and sanitary replacement housing. Proof can take the form of
receipts from a moving company, copies of paid utility bills, copies of
leases, copies of canceled checks for rent payments or utility bills, copies
of other documents for verification of income, etc.

Copies of checks issued: Keep a copy of each check written for
relocation or moving assistance.

Other Items: Also include other items, such as questionnaires, copies of
correspondence, appeals, special approvals, and other specific
documentation.
The URA costs for all displaced individuals, families, small privately owned small
business, partnerships, and corporations is added to the applicant’s estimated
budget.
Special Note: Even if a tenant otherwise qualifies for URA assistance, no actual
relocation assistance can be paid to the tenant until the property owner closes on
the property.
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P. Factors That Affect the Budget – Comparable Housing Assistance:
URA does not apply to owners of real residential property voluntarily
participating in a HMGP funded acquisition project. However, in some cases,
Comparable Housing Assistance (CHA) authorized under the Uniform
Relocation Assistance and Real Property Acquisition Act of 1970 may be
provided to help the seller secure decent, safe, and sanitary replacement
housing.
1. Comparable Housing Assistance Eligibility:






CHA only applies when purchasing the seller’s primary dwelling;
An “eligible seller” may be an individual or family who legally
occupies the demised real property at least 90-days before the start of
acquisition negotiations;
The eligible seller, or a household dependent of the eligible seller, must
be a U.S. citizen or lawful alien to qualify for assistance under CHA;
The eligible seller must have purchased and occupied a decent, safe and
sanitary replacement dwelling within one year after the date he/she
moves out of the demised dwelling.
The applicant’s agent must certify that comparable replacement
housing is expected to be more expensive than the housing being
purchased under the HMGP. (The reason(s) for the increased cost
should be provided (i.e. homes outside of regulatory floodplains are
generally more costly than those with a flood risk, or it may be that
only larger homes comprise the available housing market, etc.); and,
For the purpose of defining the available housing market, the applicant
is limited to comparing structures within a 50-mile radius from the
property proposed for acquisition.
The actual amount of CHA assistance can vary, but will not generally not
exceed the amount prescribed in the Act (presently the maximum grant is
$22,500.00). The cost for providing relocation advisory assistance to eligible
sellers is paid from project funds using the 75% federal and 25% non-federal
cost sharing ratio.
2. CHA Procedure

The applicant must examine if the proposed acquisition would have a
highly disproportionate negative effect on persons of low-income or
minority populations that could be alleviated if CHA was available to
secure decent, safe and sanitary housing. If either condition is certified,
CHA must be made available to those families who qualify.
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


The pre-disaster valuation method must be used to determine the
difference in price between the displaced structure and the replacement
structure, even if the actual purchase price of the damaged structure is
based on its post-disaster value.
It is particularly important to examine the proposed purchase of mobile
homes for the possibility of CHA since purchase prices trend lower
than comparable replacement costs. Additionally, the owner of the
mobile home may rent the home-pad, in which case the acquisition of
the home-pad may trigger secondary eligibility for rental assistance
under URA.
A written, descriptive process of how comparable housing was
determined is to be used. This should include, at a minimum, the
following information on the property being sold:
o Number of bedrooms
o Number of full and ¾ bathrooms (½ baths are not counted)
o Total square footage of primary structure (do not include
appurtenant structures)
o Yard size
o Other special conditions, such as bus route accessibility,
handicapped accessibility, etc.

Once the applicant’s agent has determined that CHA may be needed,
the property owners who are likely to be eligible should have a
Comparable House Assistance Worksheet prepared on their behalf (see
CHA form). This form will outline how much assistance the family will
qualify to receive. The maximum amount of CHA available per family
is $22,500.00.
3. CHA Case Files:
A CHA case file should be set up for each eligible seller, and a Case File
Status Chart and a Communications Log should also be maintained. By
closing, each eligible seller case file should contain the following required
documentation for any CHA disbursements:



Comparable Housing Assistance/180-Day Homeowner Application:
This application and worksheet determines whether the seller is eligible
for comparable housing assistance benefits and, if so, how much. The
applicant’s agent (or relocation advisor) and the seller jointly prepare
the worksheet. Give the seller a copy and keep a copy of the completed
application/worksheet in the CHA case file
MLS or other listing service: Legible copies of real property printouts
of at least three properties considered, including listing price.
MLS or other listing service: Legible copy of realty property printout
of property chosen, including purchase price.
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
HUD-1 Settlement Statement: Legible copy of signed settlement
statement for the chosen property.
CHA will only cover the difference between the property sold and the
replacement property, up to $22,500.00. If the replacement housing costs
less than the demised dwelling, no payment is eligible. If the difference is
$10,000.00, only $10,000.00 will be provided. If the difference is
$50,000.00, only $22,500.00 will be provided.
CHA payments may not be provided for moving expenses, utility transfer
or utility deposit costs, personal property storage fees, or any other
relocation related expense.
Q. Factors that Affect the Budget - Handicapped Sellers and/or Dependents:
In compliance with Section 504 of the Rehabilitation Act of 1973 (P.L. 93112) and codified at 29 U.S.C. §701, payments of certain costs necessary
for a qualified individual to accomplish “Major Life Activities” (also
known as Activities of Daily Living (ADLs)) may be made under the CHA,
even if there are no differences in price between the demised and
replacement dwelling. Examples of eligible costs include:





Installation of handicapped access ramps
Relocation of electrical and plumbing fixtures to needed height
Renovation of kitchen and bathroom spaces to handicapped
accessible standards, to include any handrails needed for safety
Installation of hearing impaired fire/smoke warning systems
Other systems or devises deemed necessary by a licensed medical
professional or certified rehabilitation specialist.
Although CHA may be available for all sellers who meet eligibility
requirements, qualified disabled sellers or their dependents are
automatically eligible for Section 504 compliance assistance equal to their
demonstrated need. The procedure for tabulating assistance is as follows:
1. Determine if the seller qualifies for a CHA payment;
2. Advise all sellers that Section 504 compliance assistance is
available. Do not assume a person has or does not have a
qualifying disability, but rather offer the seller an opportunity to
“self-report” their condition or that of a dependent:
3. If the seller self-reports a disability, ask the seller to provide
written certification; which may include:
Page | 25
a. A letter outlining the individual’s limitations from a
licensed medical professional, licensed social worker, or
certified rehabilitation specialist.
b. A letter outlining disability from the State’s Disability
Determination Service (DDS).
c. A letter outlining disability from an appropriate federal
agency (e.g. Social Security Administration, Veteran’s
Administration, U.S. Department of Labor).
d. With concurrence from the Grantee, a letter from a credible
source certifying total or partial permanent disability.
4. Ask the seller to provide a HIPAA release of confidential
information so that the applicant’s agent (or relocation specialist
if one is assigned) can discuss the seller’s and/or dependent’s
needs with the reporting entity;
5. Determine the cost of meeting the ADL requirements of the
disabled person and/or his/her disabled dependents;
6. The applicant’s agent should determine if any outside assistance
(such as VA benefits, medical insurance, voluntary agencies,
church groups etc.) is available, and if so, have seller apply for
same (the applicant’s agent or relocation specialist may assist
the seller with this step, but should not undertake this work
without the seller (or seller’s authorized representative) because
of Privacy Act requirements; and,
7. Determine final cost for all ADL requirements and advise the
seller of the amount of assistance to be provided and the method
for distributing same (reimbursement to seller or payment to
contractor after seller has attested to work satisfaction are most
common).
The costs for all Section 504 compliance assistance are added to the
applicant’s proposal on the estimated CHA budget line.
R. URA, CHA, and Section 504 payments are not to be reported to the IRS:
CFR 24.208 states: “No relocation payment received by a displaced person
under this part shall be considered as income for the purpose of the Internal
Revenue Code of 1954, which has been re-designated as the Internal Revenue
Code of 1986 or for the purpose of determining the eligibility or the extent of
eligibility of any person for assistance under the Social Security Act or any
other federal law, except for any federal law providing low-income housing
assistance.”
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S. Factors That Affect the Budget – Post-Disaster Transfer of Title:
If the owner of the property the applicant proposes to acquire obtained title to
the property after the disaster event precipitating the mitigation action, the new
owner will only be entitled compensation equal to the amount that the original
owner was entitled to or the amount paid by the new owner, whichever is less.
T. Factors That Affect the Budget – Program Income:
Program income may be used to help defray approved project costs. Some
examples of where program income may be collected include: Salvage of
building materials, credits, discounts, rebates, and refunds, interest payments,
and rental income. The applicant’s agent probably won’t be able to accurately
predict program income until after project’s approval, but should develop a
tracking system to offset and report same. Any income earned after the grant
has been closed-out may reside with the sub-grantee and does not have to be
reported as program income.
U. Scope of Work Statement:
The Scope of Work (SOW) identifies the preferred alternative. The extent to
which the alternative solves the problem, the location(s) where the alternative
will be applied, the alternative’s estimated cost, and what factors were
considered when the selecting the proposed alternative are all included in the
statement. The following is a sample SOW:
The Applicant proposes to acquire and demolish six repetitively damaged primary
residential structures along River Road. The estimated total cost for this action is
$750,000. Several factors influenced this decision (which is thought to be the best
possible alternative to solving the problem of flooding along River Road). These
factors include the following: (a) the structures are located in the regulatory
floodway; (b) they are primary residential homes for families and individuals;(c)
each home has suffered substantial damage; (d)this area is subject to repetitive
flooding; and (e) acquiring these structures will help restore the natural function
of the area’s floodplain.
V. Period of Performance (POP):
The amount of time necessary to undertake and complete the applicant’s
proposal should be documented in terms of months necessary to complete the
project. The HMGP requires projects to be complete within three-years from
the end of the application period. Additionally, any structure acquired with
HMGP funds must be demolished within 90-days of the acquisition date.
While it is not necessary to outline each and every step the applicant will take,
key activities should be assigned an expected completion period in order to
monitor the progress of the project.
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The following is an example of POP:
Upon notice of project approval, enter into Grant Agreement
with the Grantee, establish necessary record keeping systems,
and notify all stake-holders of the project’s approval.
1 Month
Activate required financial bookkeeping and accounting
systems, open checking account, and advertise for and enter
into service agreements.
1 Month
Update property packets, Voluntary Participation Agreements,
receive title opinions, and appraisals.
2 Months
Advertise for remaining incidental services, activate and
manage incidental service agreements, negotiate with
property owners for the acquisition of approved properties.
3 Months
Initiate property acquisition, prepare and record all
necessary documentation, provide any tenants notice to
vacate, safely secure properties.
3 Months
Complete NESHAP and hazardous materials testing,
perform any necessary remediation of the acquired site,
demolish the structure, terminate all utilities, and grade
the acquired lot.
3 months
Ensure the acquired land is properly stabilized, that it is
compliant with open-scape requirements, and all legal
documents have been properly recorded.
3 Months
Conduct audit of the completed project. Provide the Grantee
with project closeout notice; include the audit report.
2 Months
Grantee notifies sub-grantee of the closure of project,
completion of the Cooperative Grant Agreement, and
perpetual maintenance and reporting requirements
attached to the acquired property. Grantee will advise
the Sub-grantee of how to dispose of any project acquired
equipment, project income of remaining project funds.
3 Months
Sub-grantee closes all accounts, returns all funds in
accordance with Grantee instructions, and establishes a
record retention schedule.
3 Months
Total Period of Performance:
24 Months
W. Completing the HMGP Application:
The final step for this phase is to complete the HMGP application. The
Grantee will provide the format for the application and will also provide
federal and state assurance documents required at the time of submission.
Page | 28
The applicant will need to secure and submit a Voluntary Participation
Agreement – Part II from each participating property owner (see sample).
The applicant should pay particular attention to the deadline established by the
Grantee for submission of the HMGP application. At the time of submission
the applications will be designated a “proposal” and assigned a unique
identification number.
6. MANAGING HMGP PROPOSALS – PRE-APPROVAL:
The Grantee will conduct a completeness review of all HMGP proposals submitted
by the deadline and may, based upon its findings, notify the applicant’s agent that
additional information or clarification of certain data may be necessary. The
Grantee may also ask FEMA to begin early review of environmental and
floodplain management programmatic requirements in order to expedite the
awarding of grants.
6.1. Environmental and Historic Property Review:
Once the proposal is recommended by the Grantee for funding FEMA must
determine whether or not a National Environmental Policies Act (NEPA)
environmental review is necessary and if so, to what extent one is necessary.
Generally, actions that are repetitive in nature and that have been studied in
the past (sometimes extensively) may qualify for statutory or categorical
exclusion (STATEX or CATEX), which would preclude the need for an
Environmental Assessment (EA). The NEPA review will also ensure that the
proposal is compliant with other federal and state laws and regulations, as
well as Presidential Executive Orders pertaining to floodplain management,
protection of the environment, and social justice. The applicant should be
prepared to respond to requests from FEMA, sent via the Grantee, for
additional information that may be needed to complete the NEPA review.
Federal law requires FEMA to undertake and complete an environmental and
historic property review for all HMGP funded projects. This requirement
cannot be waived or delegated. The table below (see Table 6.1) provides
examples of some common project types and the degree of complexity
expected for each.
Table 6.1
Project Type
Property
Acquisition &
Structure
Demolition /
Relocation
Primary
Applicable
CATEX (44
CFR Part
10.8)
(vii*)
Resources Typically
Encountered that
Affect the Complexity
of EHP Compliance
Historic Properties;
Above Ground
(Standing
Structures)
Low Complexity
Moderate Complexity
High Complexity
Demolition/ Relocation
of a building less than
fifty years of age that
does not possess
exceptional historic
importance
Demolition of noncontributing buildings
within/adjacent to
historic district
Demolition of
individual historic
building, or within
larger historic property
(e.g. plantation,
historic district)
Page | 29
Historic Properties:
Archaeology
Demolition within
existing limits of ground
disturbance (i.e.
building footprint and
envelope)
No wetlands or WOUS
present; encroachment
limited to wetland
buffer; encroachment on
less than 1/10-acre
wetland disturbance
(USACE Nationwide
Permit threshold)
No expected effect on
flood elevations; No
expected effect on
upstream / downstream
velocities; Does not
promote floodplain
occupancy in the future
No vegetation removal
within 200 feet of
wetlands/WOUS; Forest
community in urban
environment with no
threatened / endangered
species; No impacts to
migratory birds listed by
U.S. Fish and Wildlife
Service (USFWS)
Demolition requiring
removal of
piers/pilings,
underground systems
(e.g. septic)
Temporary wetland
impact; Less than ½acre wetland
disturbance; Marginal
wetland value
Demolition within the
boundaries of known/
suspected
archeological site
May promote
floodplain occupancy
in the future
Increases flood
elevations; increases
velocities upstream /
downstream; Promotes
floodplain occupancy
in the future
Vegetation removed
within 200 feet of
wetlands / WOUS;
Forest community
within/adjacent to
larger natural
contiguous forest;
Potential impacts to
migratory birds listed
by USFWS
Threatened/
endangered species (or
critical habitat)
know/suspected in the
project area with
potential for impact;
Impacts on migratory
birds listed by USFWS
Other: Environmental
Justice
Less than 5 residences
acquired
More than 20
residences acquired.
Other: Soil
No equipment operation
/ soil disruption /
vegetation removal
within 200 feet of
wetlands / WOUS
Residential properties;
Presence of lead /
asbestos
Between 5 and 20
residences acquired:
Acquisition of
essential community
services (e.g., school,
police station, fire
house, etc.)
Equipment operation /
soil disruption /
vegetation removal
within 200 feet of
wetlands / WOUS
Commercial /
agricultural / industrial
properties
Waters of the US
(WOUS/
Wetlands)
Floodplains
Protected Species and
Habitat
Other: Hazardous
Materials
6.2.
Permanent wetland
impact; Greater than
1/2 –acre wetland
disturbance; High
wetland value
Not likely
Commercial /
industrial properties;
Recognized
environmental
conditions per ASTM
1527
Grantee’s Review and Requests for Follow-Up Information or Action:
After the HMGP proposal is reviewed by the Grantee, the applicant may be
asked to perform any or all of the following actions:
a.
b.
c.
Rank list the properties included in the proposal, highest first.
Gather and provide additional data about the loss history and future
vulnerability of the structure proposed for acquisition; this data would support
a benefit cost analysis (BCA) for the structure (if needed), and ultimately for
the entire project.
Structures older than fifty years or age, or that hold historic or cultural
significance regardless of age, may require additional documentation prior to
acquisition and demolition/relocation. This additional data may include
Page | 30
d.
e.
f.
recordation of the physical condition of the structure, photographic
documentation of the interior of the structure, a plan for retention of certain
structural elements or features considered worth preserving, or other action
that is intended to lessen the impact demolition might have on historic or
cultural resources.
Conduct a site visit to ensure conditions remain relatively unchanged –
particularly if the property owners have begun to repair their damaged
structures.
Refine the proposal (i.e. expand the Problem Statement to elaborate on some
“ripple effect” issue, clarify some detail included in the Proposed Solution,
revise the budget to keep estimated costs close to the proposal’s anticipated
benefits, etc.).
In the event the proposal is recommended for funding, review with each
property owner their case file to ensure no changes have occurred (i.e.
Duplications of Benefits, structure has had repair work done, property owner
wishes to withdraw, etc.).
While waiting for notification from FEMA on the Grantee’s Application for
HMGP Award, the applicant may wish to get ready to manage the grant. Some
recommended steps include:
a.
b.
c.
d.
e.
Ensure record and book-keeping systems are ready;
Draft contracts, purchase orders, grant management procedures, etc.;
Keep participants informed about the status of the proposal;
Keep stakeholders & members of the media on your side; and,
Keep in contact with the Grantee and notify the office of any change.
In anticipation of approval of the proposal the applicant may wish to begin
tracking of its in-kind contract work and force account contributions. Specifically,
FEMA Form 90-126 can be used to track personnel costs and contractor fees by
date, invoice, and activity. FEMA Form 127 can be used to track equipment and
use of non-expendable supplies. Agents using these forms may disregard the PA
ID No. and Category boxes (see samples).
7.
MANAGING AN APPROVED HMGP PROJECT:
A. The Grantee will notify the applicant of the HMGP proposal’s approval by
FEMA.
Included in the FEMA approval will be a letter indicating the following:
1.
2.
3.
4.
5.
6.
Name of Project and NEMIS Project ID Number
Date of Approval
Approved Scope of Work
Approved Period of Performance
Approved Budget Amount
Quarterly Reporting Requirement
Page | 31
Also included will be a federal financial allocation advice form that shows the
total funds approved for the project and the federal share amount deposited in the
Grantee’s Smart-Link account.
At time of approval the applicant will be designated as the “sub-grantee” and the
proposal will be deemed a “project.”
B. Implementing the Grant and Executing the Grant Agreement:
The Grantee will contact the sub-grantee and arrange to implement the HMGP
project though a kick-off meeting. This meeting may be in person or conducted
remotely. The sub-grantee will be asked to execute the Grant Agreement.
C. Pay Requests:
Federal HMGP funds are awarded to cover the federal share of all direct project
costs. A portion of the project’s non-federal required matching funds may be
awarded by the State of Colorado or provided under the CDBG if so approved.
The remaining non-federal share must be matched from the source(s) indicated
in the applicant’s proposal. Generally, funds are provided on a reimbursement
basis. Although the Grantee reserves the right to waive the reimbursement rule
for extraordinary circumstances, in most cases this action will be reserved to
advancing funds necessary to acquire those real properties scheduled for closing
within thirty days of the request for funds. Therefore, if your community does
not have the financial resources to cover payments before receiving grant funds,
you may want to plan ahead when it comes to scheduling closings or paying
invoices.
Access to these funds will be through a Letter of Credit Pay Request (format to
be supplied by the Grantee during the kick-off meeting). The Letter of Credit
Pay Request must be accompanied by supporting documentation showing
expense(s) for which reimbursement is being sought. The State Hazard
Mitigation Officer reviews all pay requests and documentation before processing
the request. From that point each request generally takes 10-15 days before
funds are deposited electronically into the applicant’s account. In the event the
sub-grantee does not have electronic funds transfer (EFT) capabilities, a paper
check (State Warrant) will be issued and mailed first-class to the sub-grantee’s
business address.
The following are the procedures for completing and submitting a Letter of
Credit Pay Request:
1. The community’s Applicant’s Agent prepares and submits a full or partial
payment request for allowable costs outlined in the Grant Agreement and the
FEMA approved scope-of-work.
Page | 32
2. The Letter of Credit Pay Request will specify the FEMA and COEM project
numbers; the name of the sub-grantee; requester’s name; the project’s title;
and date of the request.
3. Additionally, the Letter of Credit Pay Request will outline the funds being
requested based on both the budget line item and the cost share for each
expense. The following is an example of the fund request format (see
example below):
Itemized Costs and Supporting Documentation
Grant Object
(FEMA Approved Budget Line
Item)
Eligible
Expenditure
Federal
Share
(75%)
Non-Federal
Share
(25%)
Appraisal – 123 Anywhere St
(Property #1)
$500.00
$375.00
$125.00
Closing Cost/Legal Fees – #1
$365.00
$275.00
$90.00
Acquisition – #1
$95,000.00
$71,250.00
$23,750.00
Demolition – 125 Anywhere St
(Property #2)
$5,875.00
$4,406.00
$1469.00
Uniform Relocation Assistance – #2
$4,993.00
$3,745.00
$1248.00
Comparable Housing – 127
Anywhere St (Property #3)
$19,500.00
$14,625.00
$4,875.00
$126,233.00
$94,675.00
$31,558.00
TOTAL COSTS
Attached Supporting Documentation
Copy of Appraisal, bid for services, Invoice
from John Doe Appraisal Services, Check
9876 to John Doe Appraisal Services for
$500.00.
(1) Bid for services, Invoice from Lexus,
Title Search Inc., for title search, Check 8765
to Lexus, Title Search, Inc., for $300.00.
(2) Register Fee as shown on Settlement
Statement, Check 6543 for $15.00.
(3) Owner’s Coverage as shown on Statement,
Check 5432 for $50.00
Signed Settlement Statement with the
following supporting checks:
Ck # 1112 to Buy-Me Mortgage Co. for
$68,927.59
Ck # 1113 to Once-Again Mortgage Co. for
$12,443.08 (2nd mortgage)
Ck # 1114 to Mary Getaway (seller) for
$13,629.33
(1) Daily Activity Report for Labor and
Materials for demolition of structure
$4,875.00.
(2) Asbestos and Lead Paint Removal
Invoice from Greenway Environmental
Services, Check showing payment made for
$1,000.00
Ck # 2223 for $2,900.00 and Ck # 2224 for
$2,000.00 to Ura B. Enefit.
Ck # 2225 for $93.00 and Invoice for Move
You Now, Inc. on moving expenses.
Narrative on how comparable housing was
determined, Letter of Notification, Notice of
relocation eligibility, 90-day notice to vacate,
Tenant Relocation Assistance Application,
and Worksheet. (30-Day Notice to Vacate
unnecessary as moving occurred prior to that
date).
Ck # 3333 to Homer Seller for $19,500.00,
Signed Settlement Statement of new
property, NFIP map showing location of
property not in a flood zone, narrative of
process used to determine comparability, 3
realty property printouts of property
considered realty property printout of
property chosen.
Page | 33
4. Rounding to Whole Dollars:
The federal government uses only whole dollar amounts when awarding and
reconciling project awards. Therefore, the Letter of Credit Pay Request
should also be prepared using a whole dollar amount system. Under this
system each claimed expense is listed by approved budget line item and
divided according to the authorized federal and non-federal cost shares.
Tabulations are done line-by-line rather than by the total. Any line amount
division resulting in fractional federal or state cost share will be rounded
down if 49₵ or less and rounded up if 50₵ or more.
5. Certification & Authorization
This part of the Form is self-explanatory; however, if the Letter of Credit
Payment Request is not signed by the sub-grantee’s authorized agent or the
Chief Executive or Fiscal Officer, the request cannot be processed and will
be returned.
D. Scope of Work:
The approved Scope of Work (SOW) represents what information has been
submitted, reviewed, and approved in the project. FEMA’s approval letter will
identify specific properties that are approved for acquisition and demolition or
relocation. Only the properties on the approved list may be acquired. The SOW
will also include details on budget line items and if conditions may affect
continuance of the work.
A change to the scope of an approved project is defined as any revision of the
objectives (line items) of an approved project (regardless of budget
implications). If you can answer “Yes” to any of these questions, a scope change
may be necessary and a call to the State Hazard Mitigation Officer should be
made immediately.






Will the number of properties involved in the project change?
Would the change add a new property to the project?
Would the action cause an addition or in the approved budget line items?
Would the action cause a change in the quantity of a line item?
Will the approved cost in a budget line item(s) increase or decrease?
Will the project take longer than the timeline and an extension needed?
Any change to the scope of an approved HMGP project must be approved from
FEMA before implementation. For this reason, if it is determined your project
requires a change in scope contact the State Hazard Mitigation Officer
immediately.
The Uniform Administrative Requirements for Grants and Cooperative
Agreements to State and Local Governments stipulate:
Page | 34



For construction projects, the sub-grantee must “obtain prior written
approval for any budget revision which would result in a need for
additional funds” (44CFR 13(c));
A change in the scope of work must be approved by FEMA, through the
Grantee, in advance regardless of the budget implications; and,
The sub-grantee must notify the State Hazard Mitigation Officer as soon as
significant developments become known, such as delays or adverse
conditions or conditions allowing for reduced cost or time schedule.
The following cover the most common issues or types of changes in scope.

ALTERING BUDGET LINE ITEMS
A. Substitutions:
Exchanging one budget line item for another in an approved acquisition
project cannot happen without prior approval. For example, if one of the
properties was approved for comparable housing, yet after the project
began, you learned that the property was actually rental property and a
tenant had been living there for several years and qualifies for uniform
relocation assistance. In order to make this change you would need State
and FEMA approval.
B. Information needed for State and Federal Review:
A revised budget (usually to expand the number of line items to more fully
account for costs), explanations and additions of technical information
(including any supporting documentation), and a revised timeline (if
applicable) are examples.
C. Line Item Additions:
New budget line-items must also be approved. For example, if a tenant of
rental property qualifies for uniform relocation assistance but this was not a
part of the approved budget, a request must be submitted for State and
FEMA approval prior to providing this service.
D. Subtractions:
If a property owner opted not to sell their property after the appraisals and
title search was completed, in some cases approval of the scope change
(withdrawal) may also present an opportunity to request approval for a
property substitution; which can only be made from the sub-grantee’s
FEMA approved stand-by list.
NOTE: If the property’s cost was estimated to be a large dollar amount, or if the
property held an extremely high benefit-cost ratio, there may be steps that need to
occur immediately. The best thing to do is contact the State Hazard Mitigation
Officer.
Page | 35

QUANTITY OF A LINE ITEM CHANGES
A. Additions:
Scenario: An acquisition project included ten properties. The demolition
for five of the properties consisted of septic tank removal. During the
demolition phase, you learn two other properties need septic tank removal
as well.
Regardless of whether or not the removal could be funded using underruns
from other budget line-items, you need to contact the State Hazard
Mitigation Officer. In most instances, these types of issues can be resolved
without FEMA approval. However, state approval must be obtained before
the removal takes place.
B. Subtractions:
Continuing the Scenario above, at the conclusion of the demolition phase it
is determined only two properties actually needed septic tank removal.
In most cases, the change can be made during the State’s Compliance
Review at the project’s end. This is because the overall grant funding
would be a reduction.
NOTE: If the quantity reductions cause a large change to the overall grant
dollars awarded, there may be steps that need to occur immediately. The
best thing to do is contact the State Hazard Mitigation Officer.

INCREASE/DECREASE IN COST FOR A SPECIFIC BUDGET LINE
ITEM
A cost overrun is an unanticipated increase in the cost of performing the
specified objectives of the project/grant. Likewise, a cost underrun is an
unanticipated decrease in the cost of performing the specified objectives of
the project/grant.
A. Increase
If it is determined that project costs are exceeding the approved cost
estimates, contact your State Hazard Mitigation Officer immediately.
Cost overruns that fall within 10 percent of the awarded line-item cost and
which can be met without requesting additional federal funds, usually
because of a cost savings from some other line item, do not need to be
submitted for approval. The full scope of work on the overall project must
still be met.
If the estimated costs exceed 10 percent, the sub-grantee must notify the
State Hazard Mitigation Officer about the additional expense. Under the
HMGP additional federal funds to cover the added expense can be added
(if unobligated funding remains). The sub-grantee will need to provide a
revised budget, explanation of the cause for the requested increase
Page | 36
(including any supporting documentation), and a revised timeline (if
applicable).
B. Decrease
Unless the amount of decrease is more than 10% of a major cost line item
amount, the difference will be de-obligated at the project’s closing. If a
significant cost decrease is necessary, the sub-grantee must contact the
State Hazard Mitigation Officer for instructions.

TIME EXTENSION
By regulation, when grants are awarded, they are given – at a maximum - a
three-year timeframe for the performance period. The timeframe is based
on the applicant’s estimation in the application for how long each phase
will take to complete the scope of work and close the grant. However,
sometimes extenuating circumstances or unusual project conditions exist
that cause delays in the progress of a project, and a time extension is
needed. If this occurs, contact the State Hazard Mitigation Officer. If
justifiable, up to two “one-year” extensions may be requested from FEMA
through the Grantee. The first request would be approved/disapproved at
FEMA’s regional office; the second would be approved/disapproved by
FEMA Headquarters. All requests are processed through the State Hazard
Mitigation Officer and must be approved at the state level prior to
forwarding to FEMA.
In the event the sub-grantee discovers that the approved SOW needs to be
modified, the sub-grantee will notify the Grantee of the need for a change in
writing. A change of scope is not guaranteed and the sub-grantee should take all
reasonable and necessary steps to limit or stop further project work until
approval of the change has been granted by FEMA.
If an approved property is withdrawn from the approved project, the sub-grantee
may request in writing a property to be substituted from the project’s stand-by
list. Because of environmental review requirements only those properties on the
stand-by list may be substituted. When such a substitution does not cause an
increase in the project’s budget the Grantee may ask for expedited approval from
FEMA of the substitution. However, when a cost increase is necessary, the
Grantee must identify where the additional money will come from and whether
or not the approved action remains cost-beneficial.
In the event an acquisition / relocation project must be re-scoped to acquisition /
demolition, and the cost for the implementing the new action is less than the
original approved action, the sub-grantee may make the change without
concurrence from the Grantee. The sub-grantee will notify the Grantee of the
change in its next quarterly report and indicate if a project cost under-run might
exist.
Page | 37
However, in the event an acquisition / demolition project is proposed for Change
of Scope to an acquisition / relocation action, the sub-grantee must seek preacquisition approval from the Grantee. In making the re-scope request the subgrantee must identify the exact location where the structure will be relocated to;
what will be the cost difference between the original and proposed actions, and if
the new action will affect the project’s period of performance. The regulations
previously outlined regarding relocation of structures must also be observed.
Although the Grantee reserves the right to deny the request as part of its
management responsibilities, only FEMA has the authority to approve the
requested action.
E. Activation of Support Systems:
The sub-grantee should next activate all of its systems that were developed for
support of the project. This includes drawing cash from the designated general
or special account to open the project account; releasing advertisements for bid
of appraisal services, legal services, and relocation specialist services; and,
notifying the project participants that the project is approved (see Sample
newspaper ads and sample contracts for appraisers, review appraiser, real
estate attorney, and relocation specialist).
F. Bidding Out Work:
The sub-grantee must have written procedures that cover all procurement actions
which must, at a minimum, comply with Federal requirements as stated by CFR
44 part 13.36. When procuring goods and/or services, the sub-grantee’s agent
must use a fair and competitive process conducted pursuant to the applicable
regulations and procedures outlined below:
1. In arranging for professional services, buyers are required to follow the
procurement standards established by the Colorado Department of Personnel
and Administration, State Purchasing Office.
2. All purchases are required to be made as prescribed in the appropriate state
laws and the Federal Uniform Administrative Requirements for Grants and
Agreements (2 CFR, Chapter II, Part 225 – formerly OMB Circular A-87).
3. “Cost-plus-percentage-of-cost” or “percentage of construction cost”
contracting is prohibited and contract methodologies using same are not
allowed.
4. In order to avoid awarding a contract to barred contractors, the sub-grantee
must conduct reasonable research into the background of bidders and subcontractors before entering into a purchase agreement or contract.
(This handbook provides sample bid advertisements and sample service
contracts for most of the professional services required to manage a HMGP
project).
Page | 38
G. Davis-Bacon Act:
The Davis-Bacon Act is a law that requires federal construction contractors to
pay their workers the “prevailing wage” based on the local union wage scale
defined by the Department of Labor. The provisions of the Davis Bacon Act do
not apply to State or local contracts using federal assistance funds under the
Stafford Act. However, if HUD-CDBG funds comprise any portion of the
project’s funding, the Davis-Bacon Act provisions will apply. Additionally,
contracts let by other federal agencies, such as the U.S. Army Corps of
Engineers, even if said contracts were mission assigned by FEMA under the
Stafford Act, are likely to require application of the Davis-Bacon Act provisions.
Lastly, the State of Colorado purchasing guidelines should be examined to
determine if the scope or size of the sub-grantee’s work will require compliance
with state prevailing wage laws. Demolition of one or two single family
structures generally cost less than the activation threshold for prevailing wage.
The sub-grantee must examine larger and more costly work to ensure compliance
(sometimes even one structure with large amounts of friable asbestos can trigger
a prevailing wage compliance requirement).
H. Cost Over-Runs and Under-Runs:
It is understood that the project’s budget was based on best available
information, but it was still developed through an estimation process. Therefore,
it is important for the sub-grantee to identify when the project’s budget has too
little or too much money. The funds needed to cover cost over-runs should come
from the approved project first.
When the approved project is able to restructure its budget to meet the
requirement, the sub-grantee can wait until its next quarterly report filing to
notify the Grantee of the change. However, when the sub-grantee is unable to
restructure its obligations to accommodate the cost over-run, the sub-grantee
must immediately notify the Grantee of the situation and not incur any additional
financial obligations. The Grantee may have a small amount of reserve funds
available to deal with over-runs or not. If no reserve funds are available, the
Grantee can examine other approved projects to determine if a cost under-run
might exist, and if so, it can request from FEMA a de-obligation of funds from
the donor project and a supplemental obligation of funds to the deficient project.
The obligation of funds to cover cost over-runs cannot be guaranteed since the
HMGP is formula based and federal subscriptions may not exceed the Grantee’s
total award.
I. Special Actions – Preparing to Acquire Rental Units:
Examine the current state of rental units to determine which residents are still in
properties approved for acquisition. Check with the owners of the rental
Page | 39
properties to ensure that they intend to remain in the project. If so, work with the
rental property owner to issue 30-day notices to vacate to the rental residents and
instruct the head of household to schedule an appointment with the applicant’s
agent to discuss URA. Set a response deadline for the tenant to reply.
J. Special Actions – Tenant Eviction:
In the event the tenant of a rental property does not acknowledge the 30-day
notice to vacate, begin eviction proceedings at once. Remember, the structure
must be demolished within 90 days from the date of acquisition. In many cases
it will take 90 days to pursue an eviction through the courts, so it may be
necessary to postpone the acquisition of the property until it is clear what date
the tenants will vacate the property (see sample notice).
K. Special Actions – Extraordinary Circumstances, Property Owners/Sellers:
It will also be necessary to check for extraordinary circumstances among the
property owners that could impact the acquisition and/or demolition of the
acquired structure. Some possible bumps to keep an eye out for include:
divorce, death of the property owner, a new owner taking title to the property and
expecting to sell for the pre-disaster assessed value, a new disaster event affects
the property (watch out for arson), the property is stripped of its salvage before
demolition begins, and the seller(s) have poor coping skills and might cash their
settlement checks – lose the money or spend it on something other than
replacement housing – and be unable to move. If any problems of the type
outlined above begins to appear, notify the Grantee and ask for technical
assistance to deal with the problem.
L. Establishing Title for the Property & Obtaining Title Insurance:
The sub-grantee shall arrange for and have conducted a title search for each
property it plans to acquire using HMGP funds. The purpose of the title search is
to ensure that the owner(s) are the actual titleholder(s) to the property, to identify
other persons with a property interest if the owner is not the sole and actual
titleholder, and to ensure that the title is clear (i.e., there are no mortgages or liens
outstanding upon sale of the property) and marketable. In addition, there may not
be easements or other encumbrances incompatible with open space to the
property that would make the property either ineligible for acquisition or
noncompliant with FEMA’s open space land use restrictions.
All known encumbrances that are incompatible with open space use must be
revised or extinguished to ensure that the property use is consistent with the
open space requirements as outlined in 44 CFR Part 80 and the current
version of FEMA’s HMA Unified Guidance. Inconsistent encumbrances
include any encumbrance providing an interest in subsurface resource rights
Page | 40
(mineral, oil, gas, etc.) that may also involve an implicit right for surface
access to the subsurface resource.
The Sub-applicant will obtain a title insurance policy reflecting that all
incompatible easements or other encumbrances to the title have been
extinguished, to demonstrate clear fee title in conformance with 44 CFR
Section 80.17(b).
If evidence obtained during the review indicates long-dormant subsurface rights
(usually in excess of 50 years or beyond the reach of a standard title search) and
the identity of the subsurface owner is unknown or otherwise not reasonably
ascertainable, FEMA may approve the eligibility of the acquisition on a case-bycase basis. If a right to access a subsurface resource is discovered and asserted
after the acquisition, the Grantee and sub-grantee are required to take all
appropriate action to enforce the open space restrictions required by 44 CFR
Section 80.19.
Other title-related requirements are as follows:





A title insurance policy demonstrating that clear title conveys must be
obtained for each approved property that will be acquired;
A physical site inspection for each property must be conducted to verify
that there are no physical encumbrances to the property. A site survey may
be necessary to clearly establish property boundaries. A signed Certificate
of Acceptance is required naming the certifying inspector and sub-applicant
official.
The property title must be transferred by Warranty Deed or Deed of Trust;
All incompatible easements or encumbrances must be extinguished;
A copy of the title insurance policy must be sent to the Grantee. The actual
title insurance packet may not be complete until the closing of the
property, in which case the documents may be sent to the Grantee with
the sub-grantee’s filing of its quarterly report.
M. Property Valuation Method and Purchase Offer:
The approved method for valuation of the property is a certified real property
appraisal, conducted by a licensed appraiser in accordance with the Uniform
Standards of Professional Appraisal Practice. At a minimum, the following
actions must be observed:


The appraiser must comply with relevant State of Colorado laws and
requirements and have the appropriate certification, qualifications, and
competencies based on the type of property being appraised;
The sub-grantee must coordinate with the Grantee to determine the
assumptions that will be used in the appraisal (i.e., current or pre-event
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






market value), and the assumptions must be applied consistently throughout
the project area for all similar properties to be acquired;
The sub-grantee will arrange for two independent certified real property
appraisals for each structure proposed for acquisition. The two appraisals
will be averaged to arrive at a fair market value. The cost of each appraisal
is eligible for HMGP project reimbursement;
When determining the value for a large number of structures, the Subgrantee may conduct random appraisals to establish a statistical sampling of
property values and develop an adjustment factor to apply to tax-assessed
values so that they reasonably reflect each property’s market value. This
methodology is particularly useful when the structure proposed for
acquisition has been destroyed by the disaster event or it has been so badly
damaged that an appraisal is unlikely to produce a reliable fair market value
instrument;
Ordinarily, appraisals performed in support of HMGP projects are required
to determine the pre-disaster value of the property and its improvements,
and use the resulting valuation as the basis for an offer to buy. However, in
certain cases the Sub-grantee may wish to determine the post-disaster value
of the property to be acquired. One such example is when disaster repairs
and post-disaster improvements cause the present day value of the property
to be greater than its calculated pre-disaster value;
Additionally, the Sub-grantee is required to offer only post-disaster values if
the current property owner purchased or took possession of the disasterdamaged property after the disaster event or is not a national of the United
States or qualified alien. The resulting fair market value (either pre or postdisaster) shall serve as the initial purchase offer made to the owner by the
sub-grantee;
If the property owner agrees to the initial purchase offer a formal Voluntary
Participation Agreement (VPA) will be executed between the seller and
buyer (see sample).
If the seller disagrees with the purchase offer the seller may, at his/her own
expense, obtain a Certified Real Property Appraisal and submit the same as
the seller’s counter-offer. If the difference between the seller’s appraisal
and the initial purchase offer is less than five percent (5%) the seller and
buyer are authorized to negotiate an agreeable value within the difference
range.
If the difference is five percent (5%) or more, all three appraisals must be
scheduled for a “desk top” review by an independent certified appraiser;
who must take into consideration the methods and opinions of the appraisers
and produce a summary appraisal that represents the property’s fair market
value within an acceptable degree of professional certainty. The resulting
summary appraisal will be the final purchase offer.
At the time the property owner accepts the final purchase offer, a formal
FEMA Voluntary Participation Agreement (FEMA Form 81-112, OCT 08)
must be executed. Part 3 of this form identifies the date upon which the
final purchase price was determined and the amount of the purchase offer.
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This form is necessary to request funds from the Grantee in order to conduct
property closing.
In the event negotiations that between the sub-grantee and the property
owner fail, the property owner should be asked to withdraw from the project
in writing (see Property Owner’s Affidavit to Withdraw from the Hazard
Mitigation Grant Program). In the event the property owner does not
execute the withdraw form, but it is clear that the owner has withdrawn from
negotiations, the sub-grantee must send a Certified Letter outlining that the
sub-grantee is withdrawing the property from the approved project And that
there may be future negative consequences faced by the withdrawn property
owner. The letter must also indicate the last day which the owner and subgrantee may resume negotiations before the owner’s withdraw becomes
final.
N. Closing on the Property:
At the closing the property owner will execute a Warranty Deed in favor of the
acquiring sub-grantee using a format that is acceptable to the State of Colorado
in general and specifically approved by the Colorado Office of Emergency
Management. The Colorado Office of Emergency Management approved openscape restrictive covenant, (see Exhibit A) must be attached to the Deed and must
be recorded as part of the Deed document.
The preferred method of documenting the property’s financial status is for the
closing lawyer to prepare a Settlement Statement using a HUD-1 form (see
sample). The property owner will be required to pay any and all liens against the
property (i.e. mortgage, mechanic’s lien, line of credit secured by real property,
tax liens, etc.) at the time of closing. Ordinarily, the closing lawyer will request
an advance of the settlement proceeds and will in-turn have settlement checks
prepared in advance for each debt that must be paid from the settlement, with the
balance being paid by check to the seller.
Usually the property owner will have moved to the replacement structure before
reaching settlement and the sub-grantee can take possession of the property at
settlement. This is the preferred method for acquiring property since leaving the
seller or the property’s tenants can create a legal liability for the sub-grantee,
who would be viewed as a landlord once the closing is complete. In special
circumstances the seller or a tenant might be required to remain in the structure
past the closing date. If this happens, the applicant’s agent must notify the
Grantee immediately to coordinate general liability and hold-harmless
requirements.
The sub-grantee must also treat the seller or any tenants as renters and begin
eviction proceedings at once. The sub-grantee must remember that the acquired
structure must be demolished within 90-days from the date of acquisition. In
most cases it will take up to 90 days to effect an eviction through the Courts, so
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care should be exercised when allowing people to remain in the demised
property.
In the event the seller is entitled to CHA compensation, the relocation specialist
should request a separate advance from the sub-grantee, payable to the property
owner directly (or through an approved distribution method established for the
property before closing), and present same at the closing ceremony. The CHA
award should not be provided until the property has undergone closing and the
Warranty Deed is signed.
All persons eligible to receive URA should be provided their assistance package
as soon after the property closing as possible. If the URA recipient has moved
from the demised property before settlement, payment of assistance should be
withheld until the property settlement is closed. This is necessary to ensure that
the project is responsible for the displacement, and not some other ineligible
action. If the property owner were to withdraw from the project and URA
assistance was given, the sub-grantee would need to recoup the money awarded
from the tenant (which would be difficult). Otherwise, the sub-grantee would be
responsible for refunding the ineligible URA’s federal share and any portion of
the non-federal share provided by another entity (i.e. state match, CDBG, etc.).
The sub-grantee must record with the appropriate County Clerk the Deed within
the state’s statutory timeframe (usually 14 days after settlement) along with the
open-space deed restrictions.
O. Demolition – Asbestos Inspection & Abatement:
The demolition of structures may not take place until the structure is examined
for the presence of asbestos containing materials (ACMs), and the abatement of
same should any materials be discovered to contain greater than 1% Asbestos as
determined by laboratory analysis.
In order to comply with the National Emissions Standards for Hazardous Air
Pollutants Act (NESHAP) each homogenous surface of the demised structure
must be tested for the presence of ACMs. This usually means one sample for all
interior walls (including ceiling) so long as each wall is similar in age and
composition to each other. Additional samples are commonly required for
kitchen and bathroom floor and wall tiles; carpets, padding and linoleum;
exterior siding and roofs; furnaces; pipe insulation; fireplace inserts and flues;
and certain building materials such as window calking. Structural items such as
wooden doors, cabinets, windows and frames (excluding calking), metal fixtures
and valves, and brick, block or poured cement foundations, walkways, and drives
generally do not require testing. The average medium sized structure will usually
require between 10 and 12 samples to meet the testing requirement of NESHAP.
The cost for inspecting the structure and obtaining the required samples is an
eligible project expense.
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P. Demolition – Raising the Structure:
Usually, all personal property belonging to the seller will be removed before
settlement. However, if the seller needs to recover personal property after the
closing the seller should be advised that they may not remove anything from the
demised structure after closing without permission of the sub-grantee. In no
instance may the seller be permitted to remove items that constitute a permanent
portion of the structure’s value (i.e. kitchen cabinets, furnace or central air
conditioning, windows, fixtures, doors, copper wire or pipes, paneling, built-in
shelving, etc.). If the seller is interested in retaining ownership in any permanent
items, the seller should be given the contact information for the demolition
contractor assigned to raise the structure to coordinate a salvage price for the
desired item.
FEMA presumes that the demolition bidders will have examined the properties
for potential salvage opportunities and will reduce their bids in anticipation of
profits realized from the existing salvage. Therefore, the sub-grantee must take
action immediately after closing to secure the acquired property against looting.
Reasonable actions such as pad-locking entryways, boarding windows, and
fencing-off property are all eligible for project reimbursement under the
demolition budget line item. In addition, since general liability now rests with
the sub-grantee, posting signs warning against trespassing and installing
temporary lighting to discourage same, are encouraged.
Q. Surface Restoration of Acquired Land:
The sub-grantee is authorized to restore the surface of the acquired property once
demolition has been completed. The purpose of land restoration is to ensure that
the vacated lot does not pose a hazard to the public that might be in proximity to
the acquisition site and to prevent land wasting or erosion. The HMGP will pay
the costs of leveling the lot to ensure proper drainage, seeding and mulching the
surface, planting indigenous species of vegetation (if needed to control erosion),
and placement of small amounts of loose gravel to allow for pedestrian walking.
Approved project funds may not be used to undertake building of any new
structure even if the proposed structure would be compliant with FEMA’s open
space requirements and was approved as part of the sub-grantee’s postacquisition land-use plan.
Concrete drives and walkways, boat launches, erecting open pole picnic shelters,
building rest-room facilities, and installing playground equipment are generally
permitted if approved by the FEMA Regional Administrator (either at the time of
original project approval or through a later request made by the Grantee).
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R. Allowable Uses of Open Space Land Acquired Under the HMGP:
In addition to the uses outlined in Section N (above), the sub-grantee is permitted
to use the land acquired under the HMGP for agricultural, minor flood control,
and/or recreational purposes. These uses include storm-water detention/retention
and restoration of the natural floodplain and its storage capacity. Additionally,
the sub-grantee may install sewer, water and power to serve the approved
structure so long as these utilities do not create a floodwater obstruction and
placement in other locations is impractical.
S. Prohibited Uses of Open Space Land Acquired Under the HMGP:
The sub-grantee is not allowed to use HMGP acquired land for any of the
following activities:
1. Construction of flood damage reduction levees, dikes, berms, or
floodwalls;
2. Walled buildings or manufactured homes (except public restrooms).
Re-use of pre-existing structures is not allowed unless all walls are
removed;
3. Fences and all other obstructions in the floodway. Fences outside the
floodway (regulatory floodplain / floodway fringe) must be designed to
minimize trapping of debris;
4. Storage of inventory supporting a commercial operation or
governmental facility, including wheeled vehicles or movable
equipment;
5. Cemeteries, landfills, storage of any hazardous or toxic materials, or
other uses that are considered environmentally contaminating,
dangerous, or a safety hazard;
6. Pumping and switching stations;
7. Above or below-ground storage tanks;
8. Paved roads, highways, bridges, and paved parking areas. Paved
parking areas include asphalt, concrete, oil-treated soil, or other
material that inhibits floodplain functions; and,
9. Installation of septic systems or reuse of pre-existing septic systems
except to service a permissible restroom.
T. Enforcement:
As a condition of receiving grant assistance, FEMA requires the sub-grantee to
maintain the acquired property in accordance with the approved restrictive open
space covenant attached to the Deed. The sub-grantee is required to undertake
periodic inspections of the acquired property to ensure that compliance is being
maintained. If the sub-grantee discovers that the property is out of compliance
(or is informed of same at any time), the sub-grantee shall notify the Grantee of
the violation and indicate what steps are being taken to remedy the situation. The
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sub-grantee will then have 60-days to bring the property back into compliance.
If compliance cannot be achieved within the 60-day timeframe, the Grantee will
notify the FEMA Regional Administrator of the violation and must also outline
how the matter will be resolved. The Grantee may indicate any of the following
as possible remedies:
1. The sub-grantee is working to remedy the situation, but needs
additional time (specify length) to complete the action. No enforcement
action is needed.
2. The sub-grantee is working to remedy the situation, but lacks the
resources necessary to compel a solution. Enforcement action is
needed.
3. The sub-grantee has failed to demonstrate good faith and is not working
to resolve the problem. Enforcement action is needed.
4. The Grantee lack the authority to remedy the situation and asks the
FEMA Regional Administrator to intervene.
If enforcement action is needed, the FEMA Regional Administrator may direct
that future FEMA grant funds be withheld pending corrective action; that the
sub-grantee reimburse FEMA and the State a prorated portion of the expended
project funds equal to all of the costs necessary to acquire the violated property;
and/or require the transfer of Title to another eligible entity. If none of these
actions brings the property back into compliance, the FEMA Regional
Administrator may refer the matter to the Office of Chief Counsel for criminal
and civil prosecutions in a court of competent jurisdiction (see 44 CFR §80.19).
U. Transfer of Property Ownership:
The sub-grantee may transfer a property interest to another eligible public entity
or a qualified conservation organization only with the prior approval of the
appropriate FEMA Regional Administrator, through the Grantee, and only in
accordance with 44 CFR Section 80.19(b) and the current version of FEMA’s
HMA Unified Guidance. An eligible public entity is a state agency, Indian Tribal
government, or municipal local government/community.
A qualified
conservation organization is an entity designated by a conservation organization
under IRS Section 170(h)(3) and (4) of the Internal Revenue Code of 1954, as
amended, and who has held such designation for at least two years before the
grant’s approval by FEMA.
The sub-grantee must document the transferee’s status as an eligible public entity
or qualified conservation organization when requesting to convey an interest in
the property and must include a signed statement that contains the following:
1. Assurance that the proposed transferee acknowledges and agrees to be bound by the
terms of the original mitigation grant/sub-grant conveyance according to 44 CFR
Part 80; and,
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2. Written assurance that the deed restrictions originally recorded as part of the subgrant will be recorded in total, and without diminishment or alteration of content
upon the conveyance Deed; and,
3. A statement included in the transfer agreement that incorporates a provision for the
property interest to revert to the sub-grantee in the event the transferee ceases to
exist or looses its eligibility status.
V. Property Lease:
The sub-grantee may convey an easement or lease to a private individual or
entity for purposes that are compatible with the uses described in 44 CFR
Section 80.19 and the current FEMA HMA Unified Guidance, with prior
approval of the appropriate FEMA Regional Administrator. Said conveyance
may not transfer, extinguish, or diminish the sub-grantee’s authority to control
and enforce the open-space terms and conditions identified in the recorded Deed
and/or included any subsequent transferee’s assurances. Any easement or lease
must be for uses that are compatible with open space purposes and that do not
violate any provisions of the National Environmental Policies Act (NEPA) or
Executive Orders 11988 or 11990.
No future NFIP flood insurance payments will be made for any losses occurring
on the eased or leased property; nor will real or personal property, tangible asset,
or loss-of-use / economic injury disaster assistance be paid for losses of any type
arising from use of said property.
W. Quarterly Reporting Requirements:
Quarterly Reports are required for all awarded grants. They are due not later
than the 10th of the month following the end of the quarter as shown below.
Quarter Timeframe
1st- October - December
2nd- January - March
3rd- April - June
4th- July - September
Submittal Due Date
January 10
April 10
July 10
October 10
These progress reports must be signed by the Applicant Agent – not the project’s
Point-of-Contact (POC) – unless we have received notice from the Applicant’s
Agent stating the POC’s signature is acceptable for the duration of the project.
NOTE: Letter of Credit Pay Requests will be withheld if quarterly reports are
delinquent.
7.
PROJECT CLOSEOUT:
A. Closeout Request:
Once all approved properties have been acquired and demolished/relocated (or
withdrawn), and all issues connected with same are extinguished, the sub-grantee
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may request formal project closeout from the Grantee. The closeout request
must be in writing and the following supporting documentation must be attached:
1. Copy of the recorded Warranty Deed / Deed of Trust with the required
open-space Deed restrictions attached for each acquired property; and,
2. At least one photograph demonstrating that the acquired structure (if
any) has been removed, and the land surface is properly restored; and,
3. Latitude and Longitude coordinates for the property (preferably
recorded at the center of the acquired lot);
4. Any equipment purchase, leased, or rented to support the project need
to be returned (for credit if possible), or disposed of under the terms of
the General Services Administration’s (GSAs) surplus property
program. Tracking of government property may be accomplished using
FEMA Form 20-18 (OCT 04 Version).
5. A final budget for the project and a reconciliation of surplus funds on
hand. The applicant is required to complete a Budget Information-NonConstruction Programs form (FEMA Form 20-20: OCT 04 version).
6. If the acquired property is included in FEMA’s Repetitive Loss
database, the sub-grantee should update the property’s status using
FEMA Form AW-501. This form is available from the FEMA web site
at:
https://www.fema.gov/national-flood-insurance-program1/mitigated-properties-updates
B. Future Federal Benefits:
The sub-grantee is not permitted to receive disaster relief assistance from any
federal entity for any future losses incurred on the acquired property. The NFIP
will not distribute flood insurance benefits for any real property loss occurring at
the acquired property immediately upon property settlement or any time
subsequent to the closing. The NFIP policy holder does retain certain rights to
personal property coverage for items left at the acquired property if the subgrantee agreed to allow the seller / occupant to store said items post-acquisition.
Any agricultural use of the acquired property is done at the risk of the farmer.
No USDA Crop Insurance will be paid for losses on the acquired property and
the provisions of the Non-Insured Crop Disaster Assistance Program (7 U.S.C.
7333) are extinguished upon acquisition of the property under the HMGP.
C. Record Retention:
The sub-grantee is required to maintain project documentation for at least three
years after the project’s “official” completion. In this case “official” means after
all work is complete, all bills are paid and any non-expendable property is
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reconciled, all acquired lands have been successfully dedicated to open-space, all
audit requirements (including Single Audit Act reporting) have been satisfied,
and the Grantee and FEMA agree that the project is complete. Project files with
records that contain personally identifiable information (PII) are covered under
the Privacy Act of 1975 (5 U.S.C. §522A, as amended). The sub-grantee must
maintain confidentially of all PII records and can only release said records in
accordance with the disclosure rules outlined in the Act. Further, the sub-grantee
must document of all disclosures of PII information and re-set the three year
record retention schedule to reflect the day of disclosure as the first day. These
records are usually retained at the local level in accordance with local
requirements.
D. Single Audit Act:
Any time a non-federal entity expends $500,000 in federal grant awards in a
single fiscal year it is required to obtain an annual audit in accordance with the
Single Audit Act Amendments of 1996. The Single Audit Act review will
incorporate review elements included in Office of Management and Budget
(OMB) Circulars A-87, A-102, A-110, and A-133 (to include the current year’s
compliance supplement). Additional information about the Single Audit Act may
be found online at:
http://www.whitehouse.gov/omb/financial_fin_single_audit
The cost of conducting an audit in compliance with the Single Audit Act is
eligible for project reimbursement so long as the project award alone is $500,000
or more and no other federal grant is in excess of the reporting threshold; or if
the project award contributes 50% or more of the combined federal grants that
equal or exceed $500,000.00. If another federal award greater than the HMGP
award exists, the cost for a Single Audit Act report will not be eligible.
E. General Audits
State and local governments that receive grant funds must also comply with the
general audit requirements under OMB Circular A-128, “Audit of State and
Local Governments.” If during the reporting period an audit was conducted that
involved the project or an associated activity, the results of the audit must be
provided. If corrective actions were required, documented completion of same
must also be provided to the State.
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ADDITIONAL PROGRAM INFORMATION
GRANTEE
RECOMMENDATION:
The Grantee will convene a team of hazard mitigation subject
matter experts to review and rank the submitted applications.
Ranking factors may include any of the following:
a.
b.
c.
d.
e.
How completely does the proposed action solve the identified problem;
How closely does the proposed action match the Grantee’s priorities;
What is the benefit versus cost ratio of the proposed action;
What is the total cost of the proposal and what percentage does that cost
represent out of the total funds available; and,
Does the application identify a post-project use for the acquired land?
The project ranking team’s recommendations are then submitted to the GAR
for the final assessment of those projects to be included in the Grantee’s
HMGP application to FEMA.
FEMA APPROVAL:
FEMA will review the State’s application and award HMGP funds
to the Grantee for those projects that meet all eligibility
requirements. FEMA will follow the Grantee’s ranking structure
when reviewing applications. The Grantee will then execute a
cooperative agreement with the sub-grantee in order to release
funding to the sub-grantee for project execution.
The application’s format will be created by the Grantee to ensure
that opportunities to enter all data required by FEMA are included.
Applications submitted in formats not approved by the Grantee will
be returned to the applicant without consideration. Applicants will
be advised of the Grantee’s deadline for applicants to submit
completed mitigation proposals. Interim deadlines may be required
based upon project.
APPLICANT’S
BRIEFING:
The Grantee may conduct an HMGP applicant’s briefing, either at
its office in Centennial, CO, or in various locations throughout the
impacted area, or both. The applicant’s agent, the agent’s back-up
(if one exists), and any individual that has special responsibilities
for assisting or participating in the development of the community’s
HMGP application should plan to attend the applicant’s briefing.
The briefing will outline general information about the HMGP, the
disaster event and the Grantee’s mitigation priorities; provide
updates on any recent changes to rules, regulations or guidance;
allow an opportunity for applicants to ask questions and receive
answers; and, allow the Grantee to distribute HMGP materials such
as forms, guidance documents, and brochures. This briefing is not
intended for the general public and the applicant should not invite
its citizens. While the public will not be barred from observing the
briefing, no disruptive behavior or personal commentary will be
allowed.
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