HMGP Potential Applicant Briefing

Hazard Mitigation Grant Program

Potential Applicant Briefing
FEMA-DR-4145-CO
12/13/2013

Colorado Office of Emergency Management

Housekeeping

 Please turn cell phones, pagers, or
Blackberries off or set to vibrate/silent.
 Restrooms
 Breaks
 Emergency Exits


Overview
 Introductions
 Hazard Mitigation
 Hazard Mitigation Grant Program
 Application Development
 Project Specifics
 Responsibilities
 Project/Grant Administration
 Extras
 Technical Assistance


Introductions

 Name
 State agency/Tribal government/Local
government/PNP you are authorized to
represent
 Types of projects your State
agency/Tribal government/Local
government/PNP is most interested in
pursuing


Hazard
Mitigation


Hazard Mitigation

What is Hazard Mitigation?

An action taken to reduce or
eliminate long-term risk to human
life and property from hazards.


Three Ways to
Promote Change
 Try to reduce the hazard – take an
action to affect the hazard itself
 Try to reduce the impact (physical or
economic) – take an action to mitigate
structural loss or financial loss
 Change behavior/people


Three Ways to Promote
Change (Flood)
 Try to reduce the hazard
 Divert or detain floodwaters (dams, levees, detention
ponds, diversion structures …)

economic)
 Floodproof structures; Elevate utilities; Flood insurance

 Designate high risk properties as open space;
Develop, adopt, and enforce floodplain regulations;
Train people to respond to flood watches and warnings

Three Ways to Promote
Change (Wildfire)
 Create fuel breaks, Do vegetation management

economic)
 Build using fire resistant materials, Create
defensible space, Homeowner’s insurance

 Use zoning restrictions to prevent building in highest
risk or limited access areas, Conduct evacuation
planning activities

Three Ways to Promote Change
(High Winds or Tornados)
 ???

economic)
 While building, increase structural element ties;
Retrofit (strengthen) existing structures;
Add/incorporate safe rooms; Trim unhealthy tree
limbs near homes; Remove items that could become
dangerous debris; Homeowner’s insurance

 Utilize warning systems and safe rooms, Train on how
and where to shelter in place; Develop and enforce
building codes for high winds and/or tornados

Mitigation
Programs


Mitigation Programs
 FEMA Hazard Mitigation Grant Program – 404
Mitigation
 HUD Community Development Block Grants –
Disaster Recovery
 FEMA Public Assistance Program – 406 Mitigation
 FEMA National Flood Insurance Program –
Increased Cost of Compliance
 FEMA Flood Mitigation Assistance Program
 SBA Disaster Loans
 FEMA Pre-Disaster Mitigation Program (unknown)

Community Development Block Grants – Disaster
Recovery

On 12/5/2013 HUD Secretary Shaun Donovan announced
an initial allocation of $62.8 million.
“…The Disaster Relief Appropriations Act of 2013, signed into law
by President Obama on January 29th, included $16 billion in
CDBG-Disaster Recovery funding. The legislation specifies these
funds are to be used "for necessary expenses related to disaster
relief, long-term recovery, restoration of infrastructure and housing,
and economic revitalization in the most impacted and distressed
areas resulting from a major disaster.
…HUD's CDBG-Disaster Recovery grants are intended to confront
housing, business and infrastructure needs beyond those
addressed by other forms of public and private assistance.”
http://portal.hud.gov/hudportal/HUD?src=/press/press_releases_media_advisories/2013/HUDNo.13-182


Community Development Block Grants – DR

The State is currently in the process of identifying damages and Unmet
Needs. To that end, some communities received surveys requesting
damage and unmet needs information.
The State can use that information to follow up with a request for
supplemental funds and an Action Plan.
**Bottom line – If your community has unmet needs, let us know. We
can gather information from FEMA, SBA, and other state and federal
agencies, but we need that grass roots, boots on the ground kind of
information. You know people we don’t know. Housing needs, economic
losses, infrastructure needs, mitigation projects …


 The Robert T. Stafford Disaster Relief and Emergency
Assistance Act provides FEMA the authority to fund the
restoration of eligible facilities that have sustained
damage due to a presidentially declared disaster.

 Title 44 CFR §206.226 Restoration of damaged
facilities contains a provision for the consideration of
funding additional measures that will enhance a
facility's ability to resist similar damage in future
events.
 If you are developing project worksheets for
permanent work in categories C-G, you should be
discussing mitigation options with the FEMA PACs,
Project Specialists, and the State PACs.



 9526.1 Hazard Mitigation Funding Under Section
406 (Stafford Act) (3/30/10),
 Appendix A: Potential Mitigation Measures That Are PreDetermined To Be Cost Effective
 Mitigation is not just limited to those mitigation measures
listed as cost effective. You can go through benefit-cost
analysis to determine cost effectiveness.

http://www.fema.gov/public-assistance-local-state-tribal-and-nonprofit/hazard-mitigation-funding-under-section-406-0

Bottom line – explore the opportunities to use 406 mitigation
under FEMA Public Assistance. Also explore improved and
alternate project options.

FEMA National Flood Insurance Program – Increased
Cost of Compliance
 If your home or business is damaged by a flood,
you may be required to meet certain building
requirements in your community to reduce future
flood damage before you repair or rebuild. To help
you cover the costs of meeting those requirements,
the National Flood Insurance Program (NFIP)
includes Increased Cost of Compliance (ICC)
coverage for all new and renewed Standard Flood
Insurance Policies.
 Flood insurance policyholders in high-risk areas, also
known as special flood hazard areas, can get up to
$30,000 to help pay the costs to bring their home or
business into compliance with their community's
floodplain ordinance.


FEMA National Flood Insurance Program – ICC
 There are four options you can take to comply with your
community's floodplain management ordinance and help you
reduce future flood damage...
 Elevation, Relocation, Demolition, and
 Floodproofing (primarily for non-residential buildings)
 You may file a claim for your Increased Cost of Compliance
coverage (ICC) in two instances:
 If your community determines that your home or business is
damaged by flood to the point that repairs will cost 50 percent or
more of the building's pre-damage market value. This is called
substantial damage.
 If your community has a repetitive loss provision in its floodplain
management ordinance and determines that your home or
business was damaged by a flood two times in the past 10 years,
where the cost of repairing the flood damage, on the average,
equaled or exceeded 25 percent of its market value at the time of
each flood. This is called repetitive damage. Additionally, there
must have been flood insurance claim payments for each of the
two flood losses.

Flood Mitigation Assistance Program
 The FMA program is authorized by Section 1366 of the
National Flood Insurance Act of 1968 as amended
(NFIA), 42 U.S.C. 4104c.
 Annual flood mitigation program
 Competitive in nature
 Tied to flood insurance policies
 BCA and EHP requirements apply
 When it’s announced, we put out a call for Notices of
Interest
 Bottom line – We want to maximize our use of this
program for flood mitigation projects.


SBA Disaster Loans
Title 13 – Business Credit and Assistance
Part 123 Disaster Loan Program
13 CFR §123.107 What is mitigation?
Mitigation means specific measures taken by you to protect
against recurring damage in similar future disasters.
Examples include retaining walls, sea walls, grading and
contouring land, relocating utilities and modifying structures.
The money that you can borrow for mitigation is limited to the
lesser of the cost of mitigation, or 20 percent of your loan to
repair or replace your damaged primary residence and
personal property…


Hazard
Mitigation
Grant
Program
(HMGP)

HMGP
 HMGP is authorized by Section 404 of the Robert
T. Stafford Disaster Relief and Emergency
Assistance Act, as amended (the Stafford Act),
Title 42, U.S. Code (U.S.C.) 5170c.
 The key purpose of HMGP is to ensure that the
opportunity to take critical mitigation measures to
reduce the risk of loss of life and property from
future disasters is not lost during the
reconstruction process following a disaster.


Eligible Applicants
*State Agencies
*Local Governments
*Indian Tribal Governments
*Certain private non-profit organizations
 PNP organizations or institutions that own or operate
a PNP facility are defined in 44 CFR Section
206.221(e). Each subapplication from a PNP must
include either: An effective ruling letter from the IRS
granting tax exemption under Section 501(c), (d), or
(e) of the Internal Revenue Code of 1954, as
amended; or State certification, under State law, of
non-profit status.
 A qualified conservation organization, as defined at
44 CFR Section 80.3(h), is the only PNP organization
eligible to apply for property acquisition and
demolition or relocation projects.

Expectation Management
 There is a cost share. For local government applicants,
the State will cost share 12.5% of the required 25%
nonfederal match.
 For most projects, there is a benefit-cost analysis
component.
 There is an EHP component (environmental and
historic preservation).
 The applications are time consuming and you’re going
to want subject matter experts.

Expectation Management
 For local and Tribal governments: Usually FEMAapproved, locally adopted hazard mitigation
plans are required. For HMGP project subgrants,
the Regional Administrator may grant an
exception to the local or Indian Tribal mitigation
plan requirement in extraordinary circumstances,
when justification is provided. If this exception is
granted, a local or Indian Tribal mitigation plan
must be approved by FEMA within 12 months of
the award of the project subgrant to that
community.


Examples of HMGP Projects
Hazard Mitigation
Assistance Unified
Guidance
Hazard Mitigation Grant
Program, Pre-Disaster
Mitigation Program, and
Flood Mitigation Assistance
Program July 12, 2013
HMA Guidance pg. 22–9,
30-1, 79-80
(Describes Eligible and
Ineligible Activities)

Examples of HMGP Projects
 Property Acquisition and Structure
Demolition (Voluntary Acquisition)
 Property Acquisition and Structure
Relocation (Voluntary Acquisition)
 Structure Elevation
 Dry Floodproofing of Historic
Residential Structures
 Dry Floodproofing of Nonresidential Structures
 Minor Localized Flood Reduction
Projects (Detention ponds, Culverts…)
 Structural Retrofitting of Existing
Buildings
 Non-structural Retrofitting of
Existing Buildings and Facilities

(Sewer Backup Protection, Bracing Building
Contents, Utilities Elevation…)

 Safe Room Construction
 Wind Retrofit for One- and
Two-Family Residences
 Infrastructure Retrofit
 Soil Stabilization (Erosion and
Landslide Mitigation…)

 Wildfire Mitigation (Defensible
Space, Ignition-Resistant
Construction, Hazardous Fuels
Reduction)

 Post-Disaster Code
Enforcement (Extraordinary Costs)
 Generators (Stand alone that
protects a critical facility or part of a
larger mitigation project)

 5 Percent Initiative Projects
(Warning systems, public
awareness…)

 Hazard Mitigation Planning


Project Eligibility
 If applicable:
 Community must be in good standing with NFIP
 Community must have adopted the new State floodplain
regulations
 Compliant with your FEMA-approved State/Local HM Plan
(Extraordinary Circumstances might apply)
 Does not duplicate other funding sources
 Independent solution to a problem
 Can be packaged with other programs (use most restrictive
requirements)
 Cost effective
 Environmentally sound
Colorado Office of Emergency Management(

Non-Federal Share
 Cash
 Local Government Revenues
 Non-Government Cash
 Community Development Block Grants
Supplies
Materials
Equipment
Paid Personnel

 3rd Party In-Kind
Volunteer Services
Donated Supplies and Materials
Loaned Equipment or Space

Non-Federal Share
 If you are thinking of using matching funds from
another federal or state agency, please discuss with
us at the beginning of the application process to
ensure compliance. Some funds can’t be matched
against each other.
 If requesting funds from another state agency, determine if
those funds are from a federal source.

 Incorporate the match funding source into the Notice
of Interest and application.
 Some federal funding sources or local governments
require Davis-Bacon wages. The Federal and State
governments do not require Davis-Bacon wages for
HMGP however, other sources might require it. Be
very cognizant of requirements!

Application Process
 HMGP is open statewide so eligible applicants
are invited to submit Notices of Interest (NOIs).
 NOIs cannot be vague placeholders.
 We will post the NOI forms on
www.coemergency.com on January 3, 2014.
 The current estimate for HMGP is $30 million.
That’s going to change.


Application Process
 Percentages of funds are being set side for:
 ≤15% Wildfire mitigation (higher priority-communities
that have adopted wildfire codes)
 ≤2.5% 5% projects
 ≤2.5% Generators
 ≤2.5% Safe rooms
 ≤5.0% Mitigation Plans (higher priority are efforts that
combine plans, comprehensive/mitigation plan, land
use/mitigation plan…)

 Two rounds of notices of interest and applications.
 First round of NOIs due COB January 31, 2014.
 First round of complete applications due by COB July
14, 2014.
 Second round of NOIs due COB March 14, 2014.
 Complete applications due by COB August 15, 2014.

Application Process

 State receives NOI
 Eligibility and viability review
 Notify results for application development

 Cursory reviews during application development
 Final review upon receipt
 Submission to FEMA / FEMA Review
 Award Package / Project Begins
 Grant Agreement Process


Appeals
 State
Only one appeal allowed within 60 days of
denial
Must be in writing and contain sufficient
documentation to support community’s
position

 FEMA
Two appeals allowed
Via the State using the same guidelines as
above


Application
Development


Scope of Work

 Clear statement of
the problem.
 Who is affected.
 What’s happening
or what’s at risk.
 How often does this
occur or how much
damage can be
expected.

SOW

Budget

Timeframe

 Where the risk or
problem is located.

 Clear statement of
what it is you are
going to accomplish.

SOW, Budget, and Timeframe must make sense with respect to each other.

 Reasonable
Estimates

Budget

 Breakdown of Costs
 No Contingency
Costs
 Management Costs
(up to 1.34%)

SOW

Budget

Timeframe

 Pre-Award Costs
(starts with the
date of the
declaration, for
developing the
application,
separate line items
in the budget, can
use them as match
or not, not for
implementing the
project)

SOW, Budget, and Timeframe must make sense with respect to each other.

Timeframe
 Measurable tasks
 Realistic timeline
 Establishes period of
performance
 Quarterly reporting
SOW

Budget

Timeframe


Benefit-Cost Analysis
Guidelines and Discount Rates
for Benefit-Cost Analysis of Federal Programs

 OMB Circular A-94:

 Compares benefits to cost
 Based on historic or engineered data
 Requires hazard intervals
 Ensures acceptable use of tax $$
 Must be at least 1:1
 Activity determines data type; there are different modules
 If necessary, we can hold a training on BCA


Environmental Review
 Considers natural and historic/cultural
resources located in the project area
 Air and water quality
 Wetlands and floodplains
 Endangered species and their habitats
 Historic properties
 Archeological sites
 Agricultural areas
 Environmental justice

Engineering Review
 Required for most construction
activities
 Part of Environmental requirements
 Impact on project area, neighboring area,
downstream
 Activity selected as best solution from a
range of possibilities
 Will the activity solve the problem?

 Studies/Designs must have Engineer
stamp

Engineering & Design
Basic Services

Special Services

Preliminary
Analysis
Preliminary
Design
Final Design
Inspections

Approved on a
case-by-case
basis by FEMA

Bids
Contracts
Site visits

Feasibility studies
Soil tests
Surveys
Resident engineer


Project Specifics


Community Safe Room
 FEMA Publication 361, Design and Construction Guidance
for Community Safe Rooms
 PE stamp on engineering designs
 HMA Guidance provides table for determining building
systems and components eligibility
 Use 0.5 mile circumference of site for population for BCA
 Peer Review
 Operations and Maintenance Plan
 Also could develop a program for safe rooms for
residences


Flood Control

 Phased Project
 Phase I: Engineering and Design
 Phase II: Construction

 NO-NOs
 Problem caused by lack of maintenance
 Inability to commit to maintenance once complete
 No major flood control projects related to the construction,
demolition, or repair of dams, dikes, levees, floodwalls,
seawalls, groins, jetties, breakwaters, and erosion projects
related to beach nourishment or re-nourishment;


Wildfire Mitigation

 The following provides examples of activities that are not
eligible for HMA funding:
 Projects for the purpose of:
 Projects that primarily address ecological or agricultural issues
 Forest management
 Prescribed burning or clear-cutting
 Projects for hazardous fuels reduction in excess of 2 miles from
structures


Acquisitions

 Slides later in the briefing


Responsibilities


Applicant
Responsibilities
 Designate point-of-contact (Applicant’s Agent)
 Work with homeowners/public as necessary for
project application/implementation
 Coordinate and manage proposed/approved
project
 Request technical assistance from state, as needed
 Account for appropriate use of grant funds
 Submit Quarterly Reports that provide detailed and
up-to-date information to the state


State Responsibilities
 Develop mitigation strategy
 Set priorities for use of funds
 Identify potential applicants
 Assist with environmental and
floodplain management reviews
 Rank and recommend projects to FEMA
for approval
 Provide technical assistance


State Responsibilities
Continued
 Monitor approved projects
 Ensure compliance with audit and
administrative requirements
 Submit quarterly reports to FEMA
 Review and approve cost overruns
 Review and approve or deny
extension requests

FEMA Responsibilities
 Approve or deny applications
 Project oversight
 Tracking/analysis - problem indicators
 Conduct environmental review
 Review and approve or deny
extensions
 Closeout projects at federal level


Project/Grant
Administration


Wait for the approval!
 Do not start on the project before approval

Any community who begins
construction or demolition
prior to FEMA approval will
cause that application to be
disqualified

Contracting/Procurement

 Ensure:
 Reasonable cost
 Competitive bidding
 Comply with local procurement standards
 44 CFR 13 & OMB Circular A-87
 Comply with all applicable state and local codes

 Avoid:
 Debarred contractors/non-legal appraisal agencies
 Cost plus a percent of cost contracts
 Contingency costs
 Discrimination (Title VI)


STOP – Call the state if…
 Scope of Work Changes/Amendments
 Must be approved prior to implementation
 If additional funding is needed, a revised BCA may be
required

 Overruns
 10% ruling
 Additional funding

 Time Extensions
 At least 4 months BEFORE
grant expires
 FEMA will not pay for work
after time limit expires if a time
extension was not approved

Any of these
areas require
a grant
amendment

Closeout
 Submit a letter to the state stating
the project is complete and the
community requests closeout
 State will work with community to
reconcile all documentation
 Site visit
 State and local concurrence
 FEMA review and concurrence
 Final payment

Last But Certainly Not Least

Audit Requirements
Single Audit Act of 1984,
P.L. 98-502
Implemented by OMB
Circular A-128
Three-year requirement on
documentation from final
payment and date of closure
(You will get a closeout letter)

Remember

Let us know how things
are going
We can’t help if we don’t
know there’s a problem

Extras


Common Setbacks
 An unauthorized person signed the contract
 Narrative detail is confusing
 Unrealistic budget and/or timeline
 No maps or photographs
 No environmental consultations
 Forgot to get the required permits
 Incomplete application
 Acquisitions weren’t voluntary/used eminent domain
 Reimbursement requests don’t have adequate documentation
 Quarterly reports are always late or incomplete
 The project never ends
 Procurement rules were violated
 Started before the project was approved
 Work was done during a period when work should have stopped

Tips and Tricks
 Start early, work hard!
Everyone underestimates
the time the application
takes to complete.
 Applicant Handbook
 Weblinks

 Use sample applications
 Paint a clear picture
 Applicant Agent
 Correct Signatures

 Lot of information
requested
 Determine BC first
 Request environmental
clearances immediately
following BC
 Know what’s in the
environmental document
 Have meeting with
stakeholders
 Coordinate with State


Technical
Assistance


Technical Assistance
 Publications
 Applicant Handbook
 Hazard Mitigation Assistance Unified
Guidance

 Websites
 www.coemergency.com
 www.fema.gov/hazard-mitigationassistance-grant-applicant-resources

Technical Assistance

 Available Assistance
 Benefit Cost
 Application Development
 Engineering/Design


Thank You


Acquisitions

67

12/13/13

Acquisition Responsibilities

 Pre- vs. Post-flood FMV (Fair Market Value)
 Ensure no Duplication of Benefits occur
 Statement of Voluntary Participation
 Clear title required at purchase
 Remove existing structure and asphalt/concrete
 Uniform Relocation Act for tenants
 Comparable Housing for owner-occupied
 Maintenance / Deed Restrictions


 Fair Market Value (FMV)
 Conducted by licensed appraiser
 Regulatory purchase price
 Community can provide more, but will not be reimbursed for purchase
above FMV

 Pre-Flood FMV
 Value of property one day before flooding
 Requires duplication of benefits check
 Option for legal residents of US

 Post-Flood FMV
 Value of property following flood



 Duplication of Benefits (DOB)
 Duplicate funding received for the same activity
 Insurance claim for repairing structure
 Individual Assistance for repair of structure
 Content not applicable

 Deducted from FMV at closing
 Listed on HUD-1 settlement statement
 Unless proof of repair is documented and provided



 Statement of Voluntary Participation
 Regulatory requirement
 Shows willingness to participate by the property owner
 No eminent domain or coercion allowed
 Does not apply to tenants
 Is not a binding commitment/contract
 May be collected individually or as a group



 Clear title required at purchase
 Title search
 Title insurance
 Liens against property
 Fee simple transaction



 Remove existing structure and asphalt/concrete
 Property must be returned to its natural state
 All essential demolition costs covered
 Asbestos and lead-based paint remediation
 Utility termination
 Permits
 Demolition
 Removal of demolished structure, driveway, sheds, etc., to
approved landfill
 Seed and hay



 Uniform Relocation Act (URA) for tenants
 Involuntary eviction due to Federally-funded activity
 Must be legal resident of the US
 Must have occupied the dwelling for at least 90 days
immediately prior to initiating negotiations with property
owner
 Entitled to reasonable moving expenses and a rental
assistance payment to cover reasonable increases in rent
and utility costs



 URA for tenants continued
 Includes mobile home owners who rent a pad
 Tenants must be notified in writing
 Rental benefits equal the lowest cost determined through
three comparable units
 Comparable housing is determined through lifestyle needs,
no. of bedrooms, utilities, transportation availability, etc.
 Comparables and selected housing must be decent, safe,
and sanitary



 Comparable Housing for owner-occupied residents
 Up to $22,500 over FMV to find replacement housing
 Uses comparable realty listings to justify new property
 Requires realty listing and settlement statement of purchase



 Maintenance / Deed Restrictions
 Deed restrictions ensure property shall be dedicated and maintained in
perpetuity as open space for the conservation of natural floodplain
functions
 No new structures or improvements, except:
 A public facility that has no walls and designated as open space or
recreational use;
 A public restroom; or
 Structure compatible with open space and conserves the floodplain
function…requires FEMA Administrator approval in writing.


Examples of Land Uses
 Agriculture cultivation
 Public picnic shelters, pavilions, etc., with associated
foundations, provided structures do not have walls
 Public restrooms
 Small-scale recreational courts, ball fields, golf courses,
and bike and walking paths
 Campgrounds if adequate warning will be provided to
allow for evacuation
 Unimproved, unpaved parking areas or access roads


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