Private Nonprofit Museum

Appeal Brief Appeal Letter Appeal Analysis

Appeal Brief

Disaster1975-DR-AR
ApplicantGood Earth Association
Appeal TypeSecond
PA ID#121-UZ4E2-00
PW ID#Multiple PWs
Date Signed2013-08-14T00:00:00

Citation:  FEMA-1975-DR-AR, Good Earth Association, Private Nonprofit Museum

Cross- Reference: Private Nonprofit, Facility Eligibility

Summary:  Flooding during the declared event damaged six buildings located at the Living Farm Museum of the Ozarks, a facility which is owned and operated by the Good Earth Association (Applicant).  The museum consists of a collection of antique farm equipment displayed on the grounds.  The buildings on the grounds include six cabins, an office, and kitchen and bathroom facilities.  FEMA prepared seven PWs for the repairs and/or replacement of the six damaged buildings and for damaged contents from the six buildings.  The buildings are located in a Special Flood Hazard Area and the Applicant did not have National Flood Insurance Program coverage on the buildings at the time of the event; therefore, FEMA applied a mandatory flood insurance reduction to the cost estimate for five of the seven PWs.  Further, FEMA reduced the total estimated cost to $46,061, because the Applicant received a $14,000 loan from the Small Business Administration for that amount.  During review, FEMA determined that the damaged facilities do not meet the eligibility criteria for a private nonprofit museum in accordance with Disaster Assistance Policy DAP 9521.2 Private Nonprofit Museum Eligibility.  FEMA denied funding for all seven PWs, stating that “the cabins for which damage is claimed are occupied by members of the Association as living quarters and do not have a primary purpose of preserving a documented collection of artistic, historic, scientific or other objects per the policy.”  The Applicant claimed, in a first appeal of FEMA’s denial, that the Living Farm Museum of the Ozarks is an outdoor display and live demonstration museum, and the entire site has the primary purpose of preserving and exhibiting the documented collection to the general public and that “the cabins occupied by museum staff provide custodial, maintenance, security, and administrative support necessary to an outdoor museum collection.”  The Regional Administrator determined that the damaged buildings are used primarily as residences and that does not qualify them as “displaying or supporting the antique equipment.”  The Applicant submitted a second appeal reiterating its position that all of the damaged facilities support the daily operation of the museum.

Issues:  Were the damaged facilities primarily used for the preservation or exhibition of artistic, historic, scientific or other objects at the time of the declared event?

Findings:  No.

Rationale:  Disaster Assistance Policy DAP 9521.2 Private Nonprofit Museum Eligibility;
44 CFR §206.226 Restoration of damaged facilities

Appeal Letter

August 14, 2013

David Maxwell
Director
Arkansas Department of Emergency Management
Camp Joseph T. Robinson, Building 9501
North Little Rock, Arkansas 72199-9600

Re: Second Appeal – Good Earth Association, PA ID 121-UZ4E2-00, Private Nonprofit Museum, FEMA-1975-DR-AR, Multiple Project Worksheets (PWs)

Dear Mr. Maxwell:

This is in response to a letter from your office dated March 12, 2013, which transmitted the referenced second appeal on behalf of the Good Earth Association (Applicant).  The Applicant is appealing the U.S. Department of Homeland Security’s Federal Emergency Management Agency’s (FEMA) denial of $46,061 for the repair and/or replacement of various buildings located at its Living Farm Museum of the Ozarks.

As explained in the enclosed analysis, I have determined that the damaged buildings addressed in the Applicant’s PWs were primarily used as residences at the time of the event, and were not primarily employed to preserve or exhibit the historic objects displayed at the museum.  The buildings are not eligible private nonprofit museum facilities; therefore, I am denying the appeal.

Please inform the Applicant of my decision.  This determination constitutes the final decision on this matter pursuant to 44 CFR §206.206, Appeals.

Sincerely,

/s/

Deborah Ingram
Assistant Administrator
Recovery Directorate

Enclosure

cc:  George A. Robinson
       Regional Administrator
       FEMA Region VI

Appeal Analysis

Background

Flooding due to severe storms between April 14 and June 3, 2011, damaged six buildings located at the Living Farm Museum of the Ozarks, a facility which is woned and operated by the Good Earth Association (Applicant). The museum consists of a collection of antique farm equipment displayed on the grounds.  The buildings on the grounds include six cabins, an office, and kitchen and bathroom facilities.  FEMA prepared seven PWs (summarized in Table 1 below) for the repairs and/or replacement of the six damaged buildings and associated damaged contents. The buildings are located in a Special Flood Hazard Area , and the Applicant did not have National Flood Insurance Program (NFIP) coverage on the buildings at the time of the event; therefore, FEMA applied a mandatory flood insurance reduction to the cost estimate in five of the seven PWs.  Further, FEMA reduced the total estimated cost by $14,000, because the Applicant received a loan from the Small Business Administration (SBA) for that amount.  The initial FEMA cost estimate for each PW is summarized in Table 1.

TABLE 1

PW

Approved Scope of Work

Approved Funding

3849

Replace Cabin 2

$ 4,736*1

3850

Replace various contents from 6 damaged buildings (appliances and furniture)

$12,678

3852

Repair office and Cabins 4-7 (one building)

$ 7,450*2

3853

Repair Cook House

$ 1,455*2

3878

Replace Cabin 3

$16,164*2

3902

Repair Cook House 3

$ 1,260

3903

Repair Bath House

$ 2,318*2

 

TOTAL

$46,061

            *1: After SBA loan and mandatory NFIP reductions

            *2: After mandatory NFIP reduction

During review of the Applicant’s projects, FEMA determined the damaged facilities do not meet the eligibility criteria for a private nonprofit (PNP) museum in accordance with Disaster Assistance Policy DAP 9521.2 Private Nonprofit Museum Eligibility.   FEMA denied funding for all seven PWs stating that “the cabins for which damage is claimed are occupied by members of the Association as living quarters and do not have a primary purpose of preserving a documented collection of artistic, historic, scientific or other objects per the policy.”                                                                 

First Appeal

The Applicant submitted a first appeal of FEMA’s denial, stating that the Living Farm Museum of the Ozarks is an outdoor display and live demonstration museum, and the entire site has the primary purpose of preserving and exhibiting the documented collection to the general public.  The Applicant stated that “the cabins occupied by museum staff provide custodial, maintenance, security, and administrative support necessary to an outdoor museum collection.  This includes the care of the many animals and beehives on site, the necessary garden work and the planting/harvesting of sorghum and corn fields.”

On September 25, 2012, the FEMA Region VI Regional Administrator denied the appeal citing Disaster Assistance Policy DAP 9521.2 Private Nonprofit Museum Eligibility.  The Regional Administrator determined that the damaged buildings are used primarily as residences and that use does not qualify them as “displaying or supporting the antique equipment.”  Further, the Regional Administrator stated that the damage to the facilities is predominantly due to lack of proper maintenance and not due to the declared event.

Second Appeal

On November 12, 2012, the Applicant submitted a second appeal of the denial of the seven PWs.  The Arkansas Department of Emergency Management (Grantee) worked with the Applicant for approximately five months after the receipt of the second appeal to gather additional information to support the appeal. The Grantee forwarded the initial appeal letter and supporting documentation to FEMA on March 13, 2013.

The Applicant states that at the time of the disaster some cabins and the office were being repaired and/or upgraded by volunteers, and the volunteers were only temporarily living in the cabins.  The Applicant’s intent is to eventually furnish the cabins with antiques and open the cabins to the general public for weekend stays as part of the museum.  The Applicant states that at the time of the disaster Cabins 2 and 6 were used to store artifacts, including historic tools, beds, and kitchen equipment.  The Cook Houses were used, and still are, to prepare meals for workers, volunteers, and guests.  The Bath House provides restroom facilities to workers, volunteers, and guests.  The Applicant reiterates its position that all of the damaged facilities support the daily operation of the museum.  The Applicant also asserts that FEMA’s statements regarding the lack of proper maintenance are not  correct and that all damage described in the PWs was caused by the flooding. 

Discussion

According to Disaster Assistance Policy DAP 9521.2 Private Nonprofit Museum Eligibility, buildings and other assets that are not primarily used for the preservation or exhibition of artistic, historic, scientific or other objects are ineligible facilities.

While the Applicant claims that all damaged facilities support the daily operation of the museum, the Applicant also states that volunteers working on repair of the facilities prior to the event were living in three of the six damaged cabins.  The Applicant stated that the remaining damaged cabins were used to store various items including artifacts; however, the Applicant did not provide details regarding the specific items stored in each cabin.  The cook and bath houses are used by museum guests, but at the time of the event, they were also used by those residing in the cabins.  Regardless of the Applicant’s intent for future use of the facilities, at the time of the event, the damaged buildings were not primarily used for the preservation or exhibition of artistic, historic, scientific, or other objects.  The buildings were used primarily by the temporary residents of the museum at that time and as temporary storage of artifacts and other items.

In accordance with Title 44 of the Code of Federal Regulations (44 CFR) §206.226, Restoration of damaged facilities, work to restore eligible facilities is eligible for funding.  The Applicant’s damaged facilities are not eligible; therefore, the repair of the facilities is not eligible for funding.  Further, as the eligibility of replacing damaged equipment and furnishings is addressed in the same section of 44 CFR, only damaged equipment and furnishings housed in eligible facilities are eligible for repair or replacement. 

The Applicant provided documentation supporting that it performed maintenance on its facilities prior to the event; however, because the buildings are not eligible PNP museum facilities, the issue regarding the cause of damage is not relevant to the outcome of this appeal.

Conclusion

The damaged facilities addressed in the Applicant’s PWs were primarily used by the residents of the museum at the time of the event, not to preserve or exhibit the historic objects displayed at the museum.  Therefore, the facilities and the contents are not eligible for repair or replacement.

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