PA ID# 087-91034; Pajaro Valley Unified School District
DSR ID# Multiple; Implementation of Flood Insurance Policy
Citation: FEMA-1046-DR-CA; Pajaro Valley Unified School District; Multiple DSRs
Cross Reference: National Flood Insurance Program, Standard Flood Insurance Policy
Summary: Flooding from the winter storms of 1995 damaged a number of buildings that comprise the Pajaro Valley Middle School, which is located in a special flood hazard area. Costs to repair damages originally estimated in damage survey reports (DSRs) 16017, 16021, 16043, 16066, 16077, and 16078 totaled $221,658. Based on the provisions of the Stafford Act and 44 CFR 206.250 and 206.252, FEMA reduced Federal assistance to $750 per loss location (6 facilities), the value of a standard flood insurance policy deductible available through the NFIP. FEMA and NFIP-insurance adjusters conducted a review of all facilities to ensure that the subgrantee received the maximum amount of FEMA funding available for all losses which would not be covered by a standard flood insurance policy and prepared supplemental DSRs accordingly ($117,803 of supplemental funding). The subgrantee appealed FEMA's decision to reduce funding on the basis that they were unaware that flood insurance was available through the NFIP, and that such insurance was unaffordable. Therefore, the subgrantee believed that they were entitled to reimbursement for the full $221,658 originally identified in the DSRs. The Region denied this appeal in a letter dated October 4, 1996. The Regional Director stated that FEMA had already granted the subgrantee the maximum funding that they were eligible for in accordance with the mandatory statutory reduction established by section 406(d) of the Stafford Act. The subgrantee submitted a second appeal dated July 30, 1997, forwarded by the State on September 10, 1997, in which they reiterated their first appeal claims.
Is the subgrantee eligible for the full reimbursement of damages totaling $221,658?
Is the subgrantee eligible for additional funding because they were unaware that insurance was available through the NFIP?
No. The maximum amount of funding available is the SFIP deductible of $750 per facility.
No. Reductions in assistance are mandatory and uniformly applied regardless of insurance policy.
Rationale: In accordance with section 406(d) of the Stafford Act and 44 CFR 206.252, the eligible amount of funding available to a facility in a special flood hazard area shall be reduced by the maximum amount of the insurance proceeds which would have been received had the building and its contents been fully covered by a standard flood insurance policy.