9524.4 Eligibility of Facilities for Replacement Under 44 CFR 206.226(d)(1) (The 50% Rule)

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  1. Date Signed: June 1, 1995

  2. Response and Recovery Policy Number: 9524.4

  3. Title: Eligibility of Facilities for Replacement under 44 CFR 206.226(d)(1) (The 50% Rule)

  4. Purpose: This guidance covers the interpretation of the provision in the FEMA Public Assistance regulations which provides for when a damaged facility is eligible for the full cost of replacement.

  5. Scope and Audience: This policy shall be applicable to all projects in all regions for which a demolition DSR for the damaged building, or a full replacement construction cost DSR for the replacement building has not yet been approved (papped.)

  6. Description: The term "disaster damage" in 44 CPR 206.226(d)(1) (see "Authorities" below) has in certain cases in the past erroneously been interpreted as including all FEMA eligible costs, rather than just the costs related to the repair of the disaster damage only. The purpose of this policy guidance is to provide clarification of the application of this provision of the regulations.


  8. Key Words: Public Assistance Policy, 50% rule, building replacement cost, FEMA regulations.

  9. Supersession: Any draft guidance or manual of practice contrary to this document that precedes the date of this document is hereby revoked and no longer valid.

  10. Authorities: 44 CFR 206.226(d)(1): "A facility is considered repairable when disaster damages do not exceed 50 % of the cost of replacing a facility to its pre-disaster condition, and it is feasible to repair the facility so that it can perform the function for which it was being used as wells as it did immediately prior to the disaster."

  11. Originating Office: Infrastructure Division, Response and Recovery Directorate

  12. Review Date: June 1997

  13. Signature:

Richard W. Krimm
Associate Director
Response and Recovery Directorate

  1. Distribution: All Regional Directors, Regional R & R Division Directors, and FCO's

Last Updated: 
07/24/2014 - 16:00
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