HANDBOOK FOR DISASTER ASSISTANCE
V. FEDERAL ASSISTANCE PROGRAMS AND PROCESSES
When the request for a Presidential Disaster Declaration is approved by the President, a variety of federal programs are made available to the public and private entities and individuals. The following is a brief explanation of the disaster assistance process and programs.
A. Public Assistance
Public Assistance is a disaster relief program through which the federal government supplements the efforts of state and local governments and eligible private non-profit organizations to return their property and service capability to pre-disaster condition. These efforts primarily address the repair and restoration of public facilities, infrastructure, or services which have been damaged or destroyed.
There are two types of Public Assistance authorized: "emergency" and "permanent" work. Emergency work includes efforts to save lives, protect property, remove debris, and maintain operation of essential facilities. Permanent work involves actions necessary to repair, restore, reconstruct or replace public and certain private non-profit facilities and infrastructure damaged or destroyed by the disaster. The seven eligible categories of work are the same as shown in Chapter IV.
1. Method of Funding
Public Law 93-288, as amended, has streamlined the funding methods for Public Assistance projects. Currently, there are two types of grants (funding methods) available based on the cost of the project:
a. Large Project Grant
A Large Project Grant is approved when the total project cost to repair or replace eligible public damage is $47,800* or more. The grants must be used to restore public or private non-profit facilities to their pre-disaster condition. Funds are authorized based on the FEMA Project Worksheets and paid on a cost reimbursement basis. these projects are monitored and subject to a final inspection before the final payment is made.
b. Small Project Grant
A Small Project Grant is approved when the total project cost to repair or replace eligible public damage is less than $47,800*. The Project Worksheets for small projects provide funds based on estimated costs. The Federal share of approved small projects are paid to the applicant as soon as the Federal Funds are obligated to the state. The state share is paid upon completion of the projects.
*The large project/small project break-point was raised to $47,800 on October 1, 1998, and is adjusted annually to reflect changes in the Consumer Price Index For All Urban Consumers (CPI) published by the US Department of Labor.
2. Funding Options
The following funding options can be used by applicants if they feel it will benefit their situation. They are designed to give the applicant a greater degree of flexibility. Both options can be used under large or small projects grants, and are voluntary.
a. Alternate Projects
If a community receives a large or small grant, and it determines that he public welfare would not be best served by repairing, restoring, reconstructing, or replacing a damaged facility, an "alternate project" may be requested. Under the "alternate project" option, the amount of the original damage estimate would be reduced by 10 percent and approved for use on other public facilities; constructing new facilities; or funding hazard mitigation activities. Funds necessary for completing the alternate project that exceed the federal share would come from local sources.
b. Improved Projects
When the applicant decides to exceed the original design and value of a damaged facility instead of simply restoring it to its pre-disaster condition, the "improved projects" option can be approved. The applicant will be responsible for all funding that exceeds the approved estimate of eligible cost to complete the scope of work.
3. Public Assistance Process
The process for securing public assistance for a community site once a Presidential Disaster Declaration has been declared is described as follows. The process involves all levels of government at various stages.
Public Assistance Flow Chart
(Click on each step to view)
B. Mutual Aid Agreements
Mutual Aid Agreements are made between jurisdictions or agencies to facilitate the provision of aid in the event of an emergency or a disaster. Agreements can cover reciprocal services or direct payment for services. Under a major Presidential disaster declaration which includes Public Assistance, FEMA will reimburse most mutual aid costs which meet the following conditions:
- The assistance was requested by the applicant and was provided in accordance with a written agreement in effect prior to the disaster;
- The work performed was directly related to the disaster and eligible under the PA Program;
- The work was charged to the applicant, who can provide documentation of payment if requested; and
- Payment was not contingent upon reimbursement by FEMA.
C. Individual Assistance
After the President signs the disaster declaration, it is important to inform affected individuals and businesses through press releases and community relations efforts that programs are available to them and to assist them in obtaining any entitled aid.
To make it easy for affected individuals and businesses to apply for assistance, FEMA has set-up a Teleregistration process using a toll-free telephone number (1-800-462-9029 or TDD 1-800-462-7585) to the National Information Processing Center. Once applicants have registered through Teleregistration, they are automatically referred to certain programs and notified by mail on the availability of other programs. In order to provide additional information on the disaster assistance programs, Disaster Recovery Centers may be set-up in each of the declared counties. These centers are staffed by representatives from federal, state, local and volunteer organizations, who can provide technical information on the disaster programs and in certain cases assist in applying for programs not handled automatically through Teleregistration. There is a wide range of individual disaster assistance programs including the following:
1. Community Relations - Community Relations (CR) is an information dissemination, collection and public relations activity used to assist disaster affected communities in receiving the assistance to which they are entitled.
This is accomplished primarily through joint FEMA/state/ local CR Teams; the teams contact victims directly and meet with local officials and the leaders of the community based organizations to establish networks that can assist in providing and distributing information and assistance throughout the affected area.
2. Temporary Housing - In the event of a Presidential declared disaster, the FEMA managed Temporary Housing Program may be authorized in order to meet the housing needs of victims. The program has several components including:
a. Rental Assistance
This program provides rental assistance to homeowners or renters whose dwellings are uninhabitable as a direct result of the disaster.
b. Minimal Repair Program
This program provides repair funds for owner occupied, primary residences which have sustained damage as a direct result of the disaster, but can be made habitable with only minor repairs.
c. Mobile Homes or Other Readily fabricated Dwellings
When no suitable rental housing is available, FEMA may authorize an applicant to rent a travel trailer. In an extreme situation, FEMA may initiate the mobile home program, and set up a temporary mobile home park at or near the disaster site.
d. Mortgage and Rental Assistance Program
When an individual or family receives a written notice of eviction or foreclosure due to financial hardship caused by the disaster, this program provides assistance with the rent or mortgage payment.
3. Small Business Administration (SBA) - Once implemented, the SBA program offers low interest loans to individuals and businesses for refinancing, repair, rehabilitation, or replacement of damaged property (real and personal). Loans may be available to businesses that have suffered an economic impact as the result of the disaster. A SBA declaration can be made independently or in concert with a Presidential Disaster Declaration. An independent or "agency" declaration requires a minimum of twenty-five homes or businesses with 40 percent or more uninsured losses or five businesses with substantial economic losses.
4. Individual and Family Grant Program
The Individual and Family Grant Program provides grants of up to $13,600 (as of October 1, 1998; adjusted annually with the CPI) to help families meet serious needs and necessary expenses that are not covered by other governmental assistance programs, insurance, or other conventional forms of assistance. Financial aid can be provided under the following categories:
- Medical expenses
- Transportation costs
- Home repairs
- Replacement of essential property
- Protective measures
- Funeral expenses
75 percent of the costs are funded by FEMA and 25 percent by the state.
5. Disaster Unemployment Assistance
Individuals unemployed as a result of a major disaster, and not covered by regular state or private unemployment insurance programs, or who have exhausted their benefits, will be eligible for disaster unemployment benefits. The weekly compensation received will not exceed the maximum amount of payment under Florida's Unemployment Compensation Program, and may be provided until an individual is re-employed or up to twenty-six weeks after the major disaster is declared, whichever is the shorter period.
6. Crisis Counseling
This program provides immediate and long-term services to meet the mental health needs of those affected by a major disaster, including screening, diagnostic and counseling techniques, outreach, education services, and public information.
7. Farm Service Agency (FSA)
FSA provides low-interest disaster loans to farmers, ranchers and agricultural operators for physical or production losses. Loans of up to 80 percent of production loss or 100 percent of the physical loss or $500,000 (whichever is less) may be made to either the tenant or owner of the agricultural business.
8. Income Tax Service
The Internal Revenue Service helps victims identify ways in which the disaster affects their federal income tax. Casualty loss credits, early tax refunds, and information on lost documentation are some services available to disaster victims.
9. Food Coupons
This program provides emergency food coupons to disaster victims through the U.S. Department of Agriculture and through the Florida Department of Children and Families. The President will determine length of eligibility for receiving food coupons.
10. Legal Assistance
This program provides free legal assistance to low-income victims of a major disaster through the Young Lawyers Division of the American Bar Association. The assistance typically includes advice on insurance claims, counseling on landlord/tenant or foreclosure problems, assistance with home repair contracts, consumer protection matters and replacement of important legal documents destroyed in the disaster.
11. Unmet Needs Committees
Unmet Needs Committees, made up of local churches and private, non-profit organizations, provide assistance to disaster victims whose needs have not and will not be met by the federal, state and local disaster assistance programs.
12. Cora Brown Fund
This fund provides last-resort assistance to the victims of a major disaster for needs stemming from the disaster that will not be met by governmental agencies or other organizations (such as the local Unmet Needs Committees).
13. The Florida Reservist Program
The Reservist Program enlists and trains individuals having special expertise for use in staffing various recovery operations in the aftermath of a disaster. The operations include Community Relations, Preliminary Damage Assessment, Disaster Recovery Centers, the Disaster Field Office, shelters and Crisis Counseling. In the periods between disasters, Reservists are provided training and have access to informational materials in order to maintain readiness for the next major event.
D. Flood Insurance Requirements
One very important element for receiving public assistance is the flood insurance requirement. Public Law 100-707 specifies that all applicants for public assistance should have flood insurance. For those public facilities without flood insurance, eligible costs will be reduced by the maximum amount of flood insurance proceeds the applicant could have received had the facility been fully covered by flood insurance. Applicants will be required to commit to maintaining insurance coverage for the total eligible amount as a condition of receiving public assistance. No assistance for any facility will be available in future disasters, unless the required insurance has been obtained and maintained.
Individuals in Special Flood Hazard Areas who received an Individual and Family Grant for flood disaster losses to property must purchase and maintain flood insurance. If flood insurance is not purchased and maintained, future assistance will be denied. The requirement to maintain flood insurance stays with the structure that received disaster assistance as a result of flood damage. If the structure is sold, the current owner is required to notify the buyer of the house of the need to purchase and maintain flood insurance. If the buyer is not notified, suffers uninsured flood losses and receives disaster assistance, the seller may be required to repay the government for the assistance the buyer received.
