VFW Hall #968

Appeal Brief Appeal Letter

Appeal Brief

DisasterFEMA-1361-DR
ApplicantCity of Raymond
Appeal TypeSecond
PA ID#049-57430-00
PW ID#730 and 791
Date Signed2004-03-08T05:00:00
Citation: FEMA –1361-DR-WA; City of Raymond; Project Worksheets 730 and 791

Cross-reference: Duplication of Benefits

Summary: The City of Raymond received a Federal Disaster Declaration in which the Veterans of Foreign Wars (VFW) Hall sustained extensive structural damage from the Nisqually Earthquake. Although the VFW was not an eligible private non-profit applicant, the City had legal responsibility and was therefore an eligible applicant under 44 CFR 206.222 (a)(3). The City demolished the VFW Hall in July 2001, and as required by its building code, placed a lien on the VFW property to recover the costs of abatement. The lien and the requirement to reimburse the State and FEMA when the demolition costs were recovered was also recorded as part of the grant in order to note that the lien was in conformance with local codes and to avoid a duplication of benefits. On August 26, 2002, the City informed the State that it had rescinded the lien from the VFW property because it believed it did not follow public notification procedures and was therefore legally liable. FEMA notified the State it would deobligate funding because the City had violated the terms and conditions outlined in the grant, and because it failed to receive prior approval to change the terms and conditions of the grant. The City subsequently appealed, claiming that FEMA was informed about the removal of the lien, and also claimed that demolition of the VFW Hall was eligible for FEMA funding under Section 403, Essential Assistance, of the Stafford Act and that that Stafford Act did not address the recovery of funds through liens. FEMA denied the appeal because once the City rescinded the lien, which was a legal requirement of the local building code, it changed the nature of the work performed. What was the legal responsibility of the City now became a “gift” to the VFW. The City’s second appeal presented the same argument. Based on a meeting held on October 23, 2003, to discuss the City’s concerns, the State on October 24, 2003, requested a 60-day hold on the appeal, while the City developed “a new proposal to address the issues of concern.” FEMA granted the hold on the appeal. The State then notified FEMA that the City had reinstated the lien on the VFW property and followed up with a letter dated January 14, 2003, and a copy of the City’s recorded lien.

Issues: Did the City comply with provisions of its Dangerous Building Code?

Findings: Yes

Rationale: 44 CFR § 206.223 (a)(3), and Section 403 of the Stafford Act

Appeal Letter

March 8, 2004

Ms. Donna J. Voss
Deputy State Coordinating Officer
State of Washington Military Department
Emergency Management Division
MS: TA-20 Building 20
Camp Murray, Washington 98430-5122

Re: Second Appeal – City of Raymond, PA ID: 049-57430-00, VFW Hall #968,
FEMA 1361-DR-WA, Project Worksheets (PWs) 730 and 791

Dear Ms. Voss:
This is in response to your letter dated August 22, 2003, transmitting a second appeal dated
July 10, 2003, from the City of Raymond, which received a Federal Disaster Declaration for the Nisqually Earthquake on February 28, 2001. The City requested reobligation of $39,557.55 in Public Assistance funding for PWs 730 and 791 for the demolition of the Veterans of Foreign Wars (VFW) Hall #968, which sustained serious structural damage from the earthquake. Although the VFW was not an eligible private non-profit applicant, the City qualified as an eligible applicant under 44 CFR § 206.222 (a). The City also had the legal responsibility as per 44 CFR § 206.223 (a)(3), to abate the dangerous conditions at the VFW Hall under its 1997 Uniform Building Code for the Abatement of Dangerous Buildings (building code),. Demolition of the structure was eligible under Section 403, Essential Assistance, of the Stafford Act and 44 CFR § 206.225 (a).

The City passed a resolution declaring the VFW Hall a public safety emergency due to structural failure on June 4, 2001, and subsequently demolished the building in July 2001. As required by its building code, the City placed a lien on the VFW property to recover the costs of abatement. The placement of the lien and the City’s requirement to reimburse the State and FEMA when the demolition costs were recovered was also recorded as part of the grant in order to note that the lien was in conformity with local codes under Section 323 (a) of the Stafford Act, and to avoid a duplication of benefits under Section 312 of the Stafford Act.

However, in a letter dated August 26, 2002, the City formally informed the State that it had rescinded the lien from the VFW property because it believed it did not follow public notification procedures and was therefore possibly subject to a lawsuit by the VFW. FEMA notified the State in a letter dated November 15, 2002, that it would deobligate funding because the City had violated the terms and conditions outlined in the grant, and because it failed to receive prior approval to change the terms and conditions of the grant as specified in 44 CFR § 13.30 (d).

In a letter dated March 11, 2003, the State forwarded the City’s first appeal dated
January 31, 2003. The City claimed that the State and FEMA were informed and had guided the City through the demolition process, including the removal of the lien. The City also claimed that the demolition of the VFW Hall was eligible for FEMA funding under Section 403, Essential Assistance, of the Stafford Act and that the Stafford Act did not address the recovery of funds through liens. On April 25, 2003, FEMA denied the appeal because once the City rescinded the lien, which was a legal requirement of the local building code, it changed the nature of the work performed. What was previously the legal responsibility of the City now constituted a “gift” to the VFW. FEMA cannot fund work for an ineligible applicant.

On August 22, 2003, the State forwarded the City’s second appeal from July 9, 2003. Again, the City presented the same arguments. Subsequently, representatives for U.S. Senator Cantwell, State Senator Doumit, the City, State, and FEMA, held a meeting on October 23, 2003, to discuss the City’s concerns. Based on the outcome of the meeting, the State, on October 24, 2003, requested a 60-day hold on the appeal while the City developed “a new proposal to address the issues of concern.” FEMA granted the hold on the appeal in a letter dated November 6, 2003. The State then notified FEMA on January 8, 2003, that the City had reinstated the lien on the VFW property and followed up with a letter dated January 14, 2003, and a copy of the City’s recorded lien.

By reinstating the lien, the City is now in compliance with its building code. Based on this information, I conclude that the City is eligible for $39,557.55 of assistance. Therefore, I am approving the appeal. By copy of this letter, I am requesting the Regional Director to implement my decision.

Please inform the applicant of my decision. My determination constitutes the final decision on this matter pursuant to 44 CFR§ 206.206.

Sincerely,
/S/
Daniel A. Craig
Director
Recovery Division
Emergency Preparedness and Response

cc: John E. Pennington
Regional Director
FEMA Region X
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