RESPONSE AND RECOVERY DIRECTORATE, FEDERAL EMERGENCY MANAGEMENT AGENCY

AUTHORIZATION:

Robert T. Stafford Disaster Relief and Emergency Assistance Act, Section 411, Public Law 93-288, as amended.

OBJECTIVES:

To provide funds for the necessary expenses and serious needs of disaster victims which cannot be met through other forms of disaster assistance or through other means such as insurance.

TYPES OF ASSISTANCE:

Project Grants.

USES AND USE RESTRICTIONS:

For fiscal year 2000, each eligible individual or family may receive up to $13,900 from the IFG program in each major disaster. The maximum grant amount is adjusted annually in accordance with changes in the Consumer Price Index for All Urban Consumers published by the U.S. Department of Labor. IFG eligible categories include: real property, personal property, medical, dental, funeral, and transportation. Costs which are ineligible include: improvements or additions to real or personal property, recreational property, cosmetic repair, business expenses, and debts incurred before the disaster.

ELIGIBILITY REQUIREMENTS:

Applicant Eligibility:   Counties, parishes and municipios in designated Federal major disaster areas.

Beneficiary Eligibility:   Disaster victims in designated Federal major disaster areas.

Credentials/Documentation:   FEMA Disaster Assistance Regulations 44 CFR Part 206.131. State administrative costs will be determined in accordance with OMB Circular No. A-87 for State and Local governments. Grant awards will be determined in accordance with OMB Circulars No. A- 102, No. A-87, No. A-110, and No. A-133 for State and local governments.

APPLICATION AND AWARD PROCESS:

Preapplication Coordination:   The State Governor makes a request for a Presidential declaration of a major disaster through the FEMA Regional Director. Requests for assistance must be made by the Governor in accordance with FEMA Disaster Assistance Regulations, 44 CFR 206. This program is eligible for coverage under E.O. 12372, "Intergovernmental Review of Federal Program". An applicant should consult the office or official designated as the single point of contact in his or her State for more information on the process the State requires to be followed in applying for assistance, if the State has selected the program for review.

Application Procedure:   Upon declaration of a major disaster, applicants may register for assistance with FEMA via a toll-free number. To obtain assistance under the real property, personal property and transportation (vehicle) categories, applicants may be required to first apply to the Small Business Administration (SBA) for a disaster loan. If SBA rules applicants ineligible for an SBA loan, SBA automatically refers most applications to the IFG program for consideration. FEMA's contract inspection firms perform inspections and provide government estimates to the States for real property, personal property, and in certain cases, transportation (vehicle) costs. Families do not have to provide real or personal property estimates or receipts, but are asked to document expenditures for medical, dental, funeral, or transportation needs. To comply with section 582 of the National Flood Insurance Reform Act (NFIRA) of 1994, all individuals who live in a Special Flood Hazard Area and who receive an IFG grant for any flood damage to real and/or personal property must have flood insurance and maintain coverage at the maximum IFG award level to become eligible to receive IFG assistance for real and/or personal property losses due to flooding in subsequent disasters. This means that the award recipient must maintain coverage for as long as she/he lives at that damaged property address; and IFG award recipients who own dwellings damaged by flooding after September 23, 1994--the date NFIRA was enacted--must ensure that dwelling coverage is maintained at the maximum IFG grant award amount forever. On May 1, 1996, FEMA established a Group Flood Insurance Policy in which States could purchase 3-year certificates of flood insurance coverage for IFG award recipients who live in special flood hazard areas to assist them in complying with the NFIRA requirements. The cost of each certificate is $200 and the coverage amount equals the maximum IFG grant award amount for that respective fiscal year.

Award Procedure:   The 75 percent Federal share of funds is allocated from the President's Disaster Relief Fund for use in a designated major disaster area. The State must provide the 25 percent share of funds. Applicants receive assistance directly from the State.

Deadlines:   Generally, applications for IFG must be filed within 60 days of the disaster declaration, by calling the FEMA toll-free disaster assistance registration number.

Range of Approval/Disapproval Time:   From 1 to 3 weeks.

Appeals:   Appeals must be submitted in writing within 60 days of the date of the notification letter.

Renewals:   Not applicable.

ASSISTANCE CONSIDERATIONS:

Formula and Matching Requirements:   States administer the program and provide 25 percent of the funds for the total number of grants disbursed on each major disaster recovery. The Federal Government provides the remaining 75 percent of the costs for grant awards as well as the regulations, policies and procedures which govern the program. States also receive up to 5 percent of the Federal share of the program for administrative costs. The Governor may request a loan of the State's 25 percent share.

Length and Time Phasing of Assistance:   Generally, assistance is provided on a one-time basis unless the applicant files an appeal and is reconsidered for additional assistance.

POST ASSISTANCE REQUIREMENTS:

Reports:   Quarterly and final financial reports are required.

Audits:   In accordance with the provisions of OMB Circular No. A- 133 (Revised, June 24, 1997), "Audits of States, Local Governments, and Non-Profit Organizations," nonfederal entities that receive financial assistance of $300,000 or more in Federal awards will have a single or a program-specific audit conducted for that year. Nonfederal entities that expend less than $300,000 a year in Federal awards are exempt from Federal audit requirements for that year, except as noted in Circular No. A-133.

Records:   Expenditure records and related documents should be retained by the recipient for 3 years from the date of grant award.

FINANCIAL INFORMATION:

Account Identification:   58-0104-0-1-453.

Obligations:   (Grants) Not separately identifiable.

Range and Average of Financial Assistance:   Not available.

PROGAM ACCOMPLISHMENTS:

As of August 15, 2000, the program responded to sixteen (16) major disaster declarations in sixteen (16) States during fiscal year 2000. The program received 33,926 requests for assistance and approved 19,885 of these requests. The total amount approved for the program in fiscal year 2000 was $49,958,279($37,468,710 Federal Share) with an average grant amount of $2,512 per applicant.

REGULATIONS, GUIDELINES, AND LITERATURE:

Federal Disaster Assistance Regulations, 44 CFR 206.131. IFG Program Handbook, FEMA 207, October 1995.

INFORMATION CONTACTS: