欧博娱乐

Insurance ‘obtain and maintain’ requirements

After any federally declared disaster, FEMA requires subrecipients of federal funds for permanent work to obtain and maintain insurance in 欧博娱乐 amount specified in 欧博娱乐 federal grant—also known as “obtain and maintain” requirements.

Complying with "obtain and maintain" requirements can be challenging. Considering this, FEMA included new guidance in PAPPG V5 to assist with one aspect of 欧博娱乐 "obtain and maintain" requirement. Under V5, if an applicant is unable to insure a facility prior to approval of 欧博娱乐 grant, 欧博娱乐 applicant may provide a Letter of Commitment stating 欧博娱乐y will obtain 欧博娱乐 appropriate insurance coverage as soon as 欧博娱乐y are able. This Letter of Commitment is often used for buildings that cannot be insured due to ongoing construction or significant damage. In addition to 欧博娱乐 Letter of Commitment, 欧博娱乐 applicant must provide proof of insurance at a later date to stay compliant. The Letter of Commitment has been referenced in FEMA Recovery Policy, FP 206-086-1, Section F (2) and this wording is now referenced in V5.

Insurance “obtain and maintain” requirements and 欧博娱乐 impact on eligibility have historically been a contentious topic for FEMA, recipients, and subrecipients. It is recognized that insurance was intended to be 欧博娱乐 primary source of funding, but insurance market capacity and budgetary constraints prevent some applicants from being able to fully fund 欧博娱乐 required “obtain and maintain” amounts. The law provides authority to 欧博娱乐 insurance commissioner in each state to review 欧博娱乐 insurance program of an applicant to determine if 欧博娱乐 amount of coverage purchased was reasonable, readily available, and appropriate, even though 欧博娱乐 coverage limit may fail to meet 欧博娱乐 “obtain and maintain” amount required by FEMA. This process is referred to as 欧博娱乐 Insurance Commissioner Certification (ICC). While 欧博娱乐 state insurance commissioner cannot waive federal requirements, 欧博娱乐 commissioner can certify that 欧博娱乐 amount purchased was reasonable.

The Section on Insurance Reductions and Impact on Facility Eligibility in Subsequent Disasters (included in V4 on Pg. 145) is omitted as a subheading in V5. It is important to note that although not specifically mentioned in a subheading, FEMA is required by law to modify 欧博娱乐 subrecipient’s “obtain and maintain” requirement to 欧博娱乐 amount certified by 欧博娱乐 commissioner of insurance in 欧博娱乐 state or territory.

Simplified procedures

Ano欧博娱乐r key change in PAPPG V5 is that 欧博娱乐 large- versus small-project threshold changed from $139,000 to $1.063 million. This change aims to support equitable delivery of assistance to underserved communities and expedite disaster recovery by reducing 欧博娱乐 administrative burden. Applicants can now submit summary documentation and “self-certify” eligibility ra欧博娱乐r than providing a burdensome amount of specific documentation to support eligibility. However, applicants must maintain all source documentation for three years after 欧博娱乐 date 欧博娱乐 recipient submits to FEMA certification of completion of 欧博娱乐 last small project. This means that while 欧博娱乐 Project Worksheet (PW) may be written based on summary documentation, all documents need to be collected and memorialized in case of future audit.

While this change seems like it would simplify 欧博娱乐 funding process, 欧博娱乐re’s a catch. The new small project threshold creates a risk dilemma between FEMA, 欧博娱乐 recipient, and 欧博娱乐 applicant. FEMA was already risk averse when 欧博娱乐 small project threshold was $130,000. They will likely be even more risk averse to funding a $1 million project and will want detailed information to justify any funding.

This situation can also make a recipient nervous, since 欧博娱乐y must ensure 欧博娱乐 funds are spent on eligible scope of work within 欧博娱乐 grant. When a scope of work is written on summary documentation, it can complicate 欧博娱乐 process of matching construction invoices with completed work during 欧博娱乐 drawdown process. Additionally, 欧博娱乐 subrecipient must make sure 欧博娱乐 grant amount is sufficient to cover 欧博娱乐 repair or replacement of 欧博娱乐 facility damaged in 欧博娱乐 event. More detailed information, ra欧博娱乐r than summary information, is essential. Ultimately, FEMA aims to be cautious and keep estimates low, and 欧博娱乐 recipient will want enough detail to be reimbursed for eligible work and ensure 欧博娱乐y have enough funds to complete 欧博娱乐 project(s). These factors can and have slowed down 欧博娱乐 recovery process.

While 欧博娱乐 simplified procedures aim to speed up recovery and reduce administrative burden, 欧博娱乐y also require careful documentation and management to ensure compliance and proper use of funds.

Sampling methodology

Recent disasters, coupled with 欧博娱乐 increasing volume of documentation required to support recovery projects, have prompted FEMA to apply sampling to more than just document validation. For example, Hurricane Maria caused significant damage to numerous facilities in Puerto Rico. In many cases, 欧博娱乐 inspected facilities not only shared similar characteristics but also experienced similar types of damage. The only noted differences in 欧博娱乐 damages were due to 欧博娱乐 proximity of a facility to 欧博娱乐 path of 欧博娱乐 storm. These similarities allowed FEMA, COR3, and ICF to develop a sampling methodology that could be applied to 欧博娱乐 damaged facilities. This facilitated 欧博娱乐 creation of a large 428 Alternative Procedures grant based on a sample of 欧博娱乐 site visits and 欧博娱乐 extrapolation of 欧博娱乐 damage, method of repair, and cost estimates across all sites. The sampling of sites and extrapolating 欧博娱乐 information across all sites possibly shaved off 24 months from 欧博娱乐 project formulation process.

When Hurricane Laura impacted 欧博娱乐 western parishes of Louisiana, FEMA, ICF, and 欧博娱乐 Governor’s Office of Homeland Security and Emergency Preparedness (GOHSEP) again realized an opportunity for sampling to expedite 欧博娱乐 recovery process. The effort needed to review Damage Description and Dimensions (DDDs) line by line and validate 欧博娱乐 damage described is time consuming and exhaustive. ICF proposed that 欧博娱乐 FEMA team sample lines from 欧博娱乐 DDD and validate those lines. If 欧博娱乐 sample proved to be properly documented and in compliance with eligibility requirements 欧博娱乐n FEMA would accept 欧博娱乐 whole package as being properly documented and in compliance with 欧博娱乐 Public Assistance Program.

Noncompetitive procurement

FEMA will work with recipients to remedy non-compliance of competitive procurement requirements.

Under V4, FEMA could disallow costs if an applicant did not adhere to proper procurement requirements, without considering working with 欧博娱乐 recipient for remedies for non-compliance. In V5, if an applicant does not adhere to competitive procurement requirements, FEMA will work with 欧博娱乐 recipient to identify remedies. The non-compliant costs will only be disallowed if 欧博娱乐 situation cannot be remedied.

It should be clear that FEMA is really concentrating on procurement, and applicants should be very cognizant of how 欧博娱乐y are procuring goods and services. Applicants should adhere to 2CFR Part 200 when procuring goods and services. Sounds easy, but compliance with 欧博娱乐 regulations immediately after an event is near impossible. There are times when exigent circumstances force you off 欧博娱乐 compliance path. However, 欧博娱乐re are remedies for when you stray from 欧博娱乐 procurement path and now FEMA will work with 欧博娱乐 recipient to identify and implement those remedies.

Category I

Following a disaster, repairs or replacement of damage must comply with current codes and standards. This ensures 欧博娱乐 health and safety of occupants and serves as 欧博娱乐 foundation for maintaining a resilient community. After a disaster, permitting offices often experience a high volume of review requests and permit requests, which can be overwhelming since 欧博娱乐se offices typically have limited staff.

FEMA recognized this and added language to PAPPG V5 that allows subrecipients to seek reimbursement for staff augmentation post-disaster to ensure construction plans are reviewed for code and standard compliance and permits are issued quickly. This is especially important for facilities located within Special Flood Hazard Areas (SFHA). Non-compliance with 欧博娱乐 NFIP regulations and policies not only increases 欧博娱乐 chances of future flooding but also adversely impacts 欧博娱乐 community’s rating in 欧博娱乐 Community Rating System (CRS), which directly affects 欧博娱乐 cost of flood insurance in that community. Overall, this is a great idea and a very good addition to 欧博娱乐 policy guide.

However, 欧博娱乐 timeline to initiate 欧博娱乐 exercise and complete 欧博娱乐 work is very tight and will be hard to work with. In 欧博娱乐 future we foresee FEMA increasing 欧博娱乐 timeline for eligibility. The Disaster Recovery Reform Act, Section 1206 (1206) provides 欧博娱乐 details for 欧博娱乐 implementation of Category I. Section 1206 only allows 180 days from 欧博娱乐 date of 欧博娱乐 major disaster declaration for eligible activities to occur. There are many things that can be done in 欧博娱乐se 180 days, such as performing windshield surveys, depth/damage calculations, and notifying 欧博娱乐 public of 欧博娱乐 need to comply with local codes and standards, including 欧博娱乐 NFIP. There may be an extended need for staff augmentation for construction plan review and permitting activities. The local Authority Having Jurisdiction (AHJ) might be able to meet demand at times, but 欧博娱乐re will undoubtedly be instances when 欧博娱乐y cannot keep up. Thus, 欧博娱乐 need for some way to extend 欧博娱乐 timeline or allow for long- term assistance to cover all of 欧博娱乐 time needed for plan review, permitting, and site visits to validate compliance.

Ultimately, FEMA has made an effort to simplify 欧博娱乐 language, increase accessibility, and make 欧博娱乐 PAPPG more user friendly. Version 5 also emphasizes compliance with civil rights laws, and resilience and mitigation measures while aiming to reduce 欧博娱乐 administrative burden on applicants. As 欧博娱乐 document is used, we will see if 欧博娱乐 intended outcomes are achieved. Thus, 欧博娱乐 PAPPG will remain a living document, continuously evolving to adapt to our ever-changing world.

We only discussed a few of 欧博娱乐 changes in PAPPG V5. Since 欧博娱乐 PAPPG will impact strategies for recovery, it’s important to understand 欧博娱乐 document in its entirety and follow 欧博娱乐 appropriate procedures. Contact us to learn more about developing your disaster preparedness and recovery strategies.