Severe Repetitive Loss (SRL) Pilot Program Guidance January 14, 2008 LIST OF ACRONYMS vi SRL PROGRAM OVERVIEW vii 1. SECTION 1 GRANT APPLICATION GUIDANCE 1 1.1 Purpose 1 1.2 SRL Program 1 1.3 Authorization and Appropriation 2 1.3.1. Authorization and Appropriation 2 1.3.2. SRL Target Allocations and Ten Percent Set-Aside 2 1.3.3. Redistribution of Funds 3 1.4 SRL Program Eligibility 3 1.4.1. Eligible Applicants 3 1.4.2. Eligible Subapplicants 4 1.4.3. Eligible Properties 4 1.5 Application Process 4 1.5.1. Mitigation Plan Requirement 5 1.5.2. Privacy of Repetitive Loss Data 8 1.5.3. Privacy of the Property Owner 8 1.5.4. National Flood Insurance Program Participation 8 1.5.5. Non-Discrimination 8 1.5.6. Demonstrating Cost Effectiveness of Mitigation Projects 9 1.5.7. Geocoding Requirements 9 1.5.8. Access to Repetitive Loss Data 9 1.6 SRL Program Restrictions 10 1.6.1. Duplication of Programs 10 1.6.2. Duplication of Benefits 10 1.6.3. Conflict of Interest 11 1.6.4. Cost Overruns and Cost Underuns 11 1.7 FEMA Electronic Grants System 11 1.7.1. Applicant Review of Subapplications 12 1.8 Grant Application Checklist 13 1.9 Cost Share Requirements 13 1.9.1. Non-Federal Cost Share 14 1.9.2. Cost Share Documentation 15 1.10 Procedures for Review, Selection, and Award of SRL Subapplications 15 1.10.1. Applicant Review 15 1.10.2. Regional Office Eligibility, Completeness, and Technical Review 15 1.10.3. SRL Target Allocation Application Selection 16 1.10.4. SRL 10 Percent Set-Aside Application Selection 16 1.10.5. FEMA Pre-Award Activities 16 1.10.6. Awards 17 1.10.7. Notification of Unsuccessful Subapplications 17 1.11 Performance Period 17 1.12 Extensions of Grant Performance Periods 17 1.13 Reporting Requirements 18 1.13.1. Federal Cash Transaction Reports 19 1.13.2. Financial Status Reports 19 1.13.3. Performance Reports 19 1.13.4. Final Reports 20 1.14 Closeout 20 1.15 Regional Contact Information 20 1.16 Referenced Statutes, Regulations, and Guidance 21 2. SECTION 2 Applicant Management Costs 22 2.1 Eligible Management Cost Activities 22 2.2 Limitations on Management Costs 22 2.2.1. Pre-Award Management Costs 23 2.3 Cost Share 23 2.4 Applicant Management Cost Subapplication Checklist 23 3. SECTION 3 Mitigation Project Subapplication Guidance 25 3.1 Eligible Mitigation Project Activities and Associated Costs 25 3.1.1. Criteria for Subapplicant Consideration of Project Type 26 3.1.2. SUBGRANTEE MANAGEMENT COSTS 28 3.1.3. Pre-Award Project Costs 29 3.2 Ineligible Project Activities and Costs 29 3.3 Mitigation Project Requirements 31 3.3.1. Mitigation Plan Requirement 31 3.3.2. Feasibility and Effectiveness Requirement 31 3.3.3. Eligibility Criteria 31 3.4 Special Flood Hazard Area Requirements 32 3.5 Flood Elevation Data 33 3.6 Geocoding Requirements 33 3.7 Project Maintenance 34 3.8 Scope of Work 34 3.9 Scope of Work Changes 35 3.10 Cost Estimate 35 3.10.1. Cost Estimate Requirements: 36 3.10.2. Cost-Estimate Documentation 36 3.10.3. Changes to Cost Estimates 37 3.11 Cost-Effectiveness 37 3.11.1. Benefit-Cost Analysis 38 3.11.2. Methodology 39 3.11.3. Benefit-Cost Documentation 40 3.12 Environmental/Historic Preservation Review 40 3.12.1. Overview 40 3.12.2. Environmental/Historic Preservation Documentation 41 3.12.3. Conditions for the Award of Funds 43 3.13 Project Subapplication Checklist 44 3.14 FEMA Reviews 46 3.14.1. Eligibility and Completeness Review 46 3.14.2. Benefit-Cost Technical Review 47 3.14.3. Feasibility and Effectiveness Technical Review 47 3.15 FEMA Pre-Award Activities 47 3.16 Updating Repetitive Loss Database for Mitigated Properties 48 3.17 Federal Income Tax and Mitigation Project Funds 48 4. SECTION 4 ACQUISITION AND MITIGATION RECONSTRUCTION 49 4.1 Property Acquisition 49 4.1.1. Eligibility for Property Acquisition Projects 49 4.1.2. Eligible costs 49 4.1.3. Ineligible costs 50 4.1.4. Requirement to Maintain as Open Space 50 4.1.4.1. Allowable Land Use Requirements 50 4.1.5. Subapplications for Property Acquisition 51 4.1.5.1. Assurances 51 4.1.5.2. Property Information for Each Property in the Statement of Work 52 4.1.6. Pre-Award ACTIVITIES 54 4.1.7. Post-Award Requirements for Acquisition and Relocation 54 4.1.7.1. Property Eligibility Requirements 54 4.1.7.2. Post Award Purchase Offer Requirements 55 4.1.7.3. Property Transfer Requirements 58 4.1.7.4. Tenants 58 4.1.7.5. Property Close-out and Documentation 58 4.1.8. Future Responsibilities and Oversight 59 4.2 Mitigation Reconstruction 60 4.2.1. Summary of Mitigation Project Requirements 60 4.2.2. Compliance with Local Standards 61 4.2.3. Eligible Mitigation Reconstruction Activities and Costs 61 4.2.4. Eligible Demolition/Removal Activities 65 4.2.5. Ineligible Mitigation Reconstruction Activities and Costs 66 4.2.6. Feasibility/Effectiveness Requirement 66 4.2.7. Mitigation Reconstruction Project Scoping 67 4.2.8. Certificate of Occupancy 69 4.2.9. Approximation of Original Square Footage 70 4.2.10. Codes and Standards 70 4.2.11. Plan Review and Inspections 71 4.2.12. Builder Certification 71 4.2.13. Additional Design and Construction Guidance 72 4.2.14. Scope of Work for Mitigation Reconstruction Projects 72 4.2.15. General Requirements 73 4.2.16. Pre-Construction 73 4.2.17. Site Preparation 74 4.2.18. Foundation Construction 74 4.2.19. Structural Shell Construction 74 4.2.20. Interior Finishes 75 4.2.21. Construction Completion 75 4.2.22. Scope of Work Changes for Mitigation Reconstruction Projects 75 4.2.23. Cost Estimate 75 4.2.24. Cost Estimate Documentation 77 4.2.25. Cost-Effectiveness 77 4.2.26. Methodology 78 4.2.27. Data Requirements for Mitigation Reconstruction Projects 78 4.2.28. Closeouts 79 5. SECTION 5 CONSULTATION, OFFER, AND APPEALS PROCESS 80 5.1 The SRL Consultation Process 80 5.1.1. Subapplicant Responsibilities During the Consultation Process 81 5.1.1.1. Preparation for Consulting 81 5.1.1.2. Consultation with the Property Owner 81 5.1.1.3. Criteria for Subapplicant Consideration of Project Type 82 5.1.1.4. Consultation Meetings 82 5.1.2. Consultation Process Required Information 85 5.1.3. Documentation of the Consultation Process 87 5.1.4. Possible Outcomes of the Consultation Process 87 5.1.5. Reimbursement for Consultation Costs 88 5.2 Mitigation Offer Process 88 5.2.1. Subgrantee’s Responsibilities during the Mitigation Offer Process 88 5.2.2. Content of Mitigation Offer 89 5.2.3. Personal Representative for the SRL Property Owner 91 5.2.4. Possible Outcomes of the Mitigation Offer Process 92 5.3 Increased Insurance Premiums and Subsequent Claims Payments 92 5.3.1. Implementation of Insurance Premium Rate Increases 92 5.3.2. Actuarial Risk Premium Rate Limitation 93 5.4 Requirements to Appeal an Insurance Premium Rate Increase 97 5.4.1. Request for Appeal 97 5.4.2. Stay of Increased Insurance Premium Rate Pending Appeal 97 5.4.3. Regional Administrator Review of Appeal 97 5.4.4. Appeal to Independent Third Party 98 5.4.5. Six Grounds for Appeal 101 5.4.5.1. Appeals Relating to Inability to Purchase Replacement Property (Acquisition projects only) 101 5.4.5.2. Appeals Relating to Insufficient Funding for Acquisition, Relocation, Elevation, Mitigation Reconstruction, and Floodproofing 102 5.4.5.3. Appeals Relating to Diminishing Integrity of Historic Properties 103 5.4.5.4. Appeals Relating to Third Party Violations Affecting Multifamily Properties 104 5.4.5.5. Appeals Relating to Reliance on FIRM Current at the Time of Purchase 105 5.4.5.6. Appeals Relating to Cost Effectiveness of Alternative Project 106 6. SECTION 6 TECHNICAL ASSISTANCE RESOURCES 108 6.1 Technical Assistance 108 6.2 eGRANTS HELPDESK 108 6.3 Engineering Feasibility Technical Assistance 108 6.4 Benefit-Cost Analysis Technical Assistance 109 6.5 Environmental/Historic Preservation Technical Assistance 109 6.6 Project Technical Assistance Helplines 110 TABLES Table 4-1 Eligible Mitigation Reconstruction Activities 62 TABLE A 95 TABLE B 96 LIST OF ACRONYMS ACRONYM DEFINITION ABFE Advisory Base Flood Elevation ADR Alternative Dispute Resolution ASCE American Society of Civil Engineers BCA Benefit-Cost Analysis BCR Benefit-Cost Ratio BFE Base Flood Elevation CBRA Coastal Barrier Resource Act CDBG Community Development Block Grant CFDA Catalog of Federal Domestic Assistance CFR Code of Federal Regulations CRS Community Rating System DHHS Department of Health and Human Services DHS Department of Homeland Security DUNS Data Universal Numbering System eGrants Electronic Grants System E.O. Executive Order FEMA Federal Emergency Management Agency FIRM Flood Insurance Rate Map FIS Flood Insurance Study FMA Flood Mitigation Assistance Program FY Fiscal Year HVAC ITP Heating, Ventilation, and Air Conditioning Independent Third Party IBC International Building Code ICC Increased Cost of Compliance IRS Internal Revenue Service NEMIS National Emergency Management Information System NFIF National Flood Insurance Fund NFIP National Flood Insurance Program NFPA National Fire Protection Association NHPA National Historic Preservation Act NOAA National Oceanic and Atmospheric Administration OMB Office of Management and Budget PDM Pre-Disaster Mitigation Program PNP Private Non Profit SEI Structural Engineering Institute SFHA Special Flood Hazard Area SRL Severe Repetitive Loss SOW Scope of Work SQANet Simple and Quick Access Net URA Uniform Relocation Assistance and Real Property Acquisition Act of 1970 U.S.C. United States Code USPAP Uniform Standards of Professional Appraisal Practice FY OVERVIEW BACKGROUND The Severe Repetitive Loss (SRL) Pilot Program, hereafter referred to as the SRL program, provides funding to reduce or eliminate the long-term risk of flood damage to severe repetitive loss residential structures insured under the National Flood Insurance Program (NFIP). The definition of severe repetitive loss as applied to this program was established in section 1361A of the National Flood Insurance Act, as amended (NFIA), 42 U.S.C. 4102a. An SRL property is defined as a residential property that is covered under an NFIP flood insurance policy and: (a) That has at least four NFIP claim payments (including building and contents) over $5,000 each, and the cumulative amount of such claims payments exceeds $20,000; or (b) For which at least two separate claims payments (building payments only) have been made with the cumulative amount of the building portion of such claims exceeding the market value of the building. For both (a) and (b) above, at least two of the referenced claims must have occurred within any ten-year period, and must be greater than 10 days apart. The long-term goal of the SRL program is to reduce or eliminate claims under the NFIP. The SRL program will fund mitigation projects, which will result in the greatest savings to the National Flood Insurance Fund (NFIF) in the shortest period of time, based on a Benefit-Cost Ratio (BCR) using Federal Emergency Management Agency (FEMA)-approved methodology to conduct the Benefit-Cost Analysis (BCA). Participation in this program is voluntary. The SRL program differs from other FEMA mitigation grant programs in that those property owners who decline offers of mitigation assistance will be subject to increases in their insurance premium rates. The SRL program was created pursuant to Section 1361A of the National Flood Insurance Act of 1968 (or “the Act”), 42 U.S.C. 4102A, as amended by the Bunning-Bereuter-Blumenauer Flood Insurance Reform Act of 2004, Public Law 108-264, with the goal of reducing flood damages to SRL properties. The Catalog of Federal Domestic Assistance (CFDA) number for the SRL program is 97.110. FEMA published the interim final rule for the SRL program in the Federal Register at 72 FR 61720 on October 31, 2007. The regulations are codified at 44 C.F.R. Part 79. SRL PROGRAM KEY POINTS The SRL program funds projects that directly mitigate residential SRL properties. Eligible project activity types include: Acquisition and relocation of at risk structures and conversion of the property to open space; Elevation of existing structures to at least the Base Flood Elevation (BFE) or an Advisory Base Flood Elevation (ABFE) or higher. Mitigation reconstruction is permitted when traditional elevation cannot be implemented; Minor physical localized flood reduction projects; and Dry floodproofing (historic properties only). SRL program Applicants shall give priority to eligible project subapplications that demonstrate the greatest savings to the NFIF based on a BCR. The BCA must be completed using a FEMA-approved methodology. SRL GUIDANCE: The SRL guidance document is available from the FEMA Regional Office or at: http://www.fema.gov/government/grant/srl/index.shtm. AVAILABILITY OF FUNDS KEY POINTS The SRL program is subject to the availability of appropriation funding, as well as any directive or restriction made with respect to such funds. Cost share: FEMA may contribute up to 75 percent Federal funding for the amount approved under the grant award to implement approved activities. Any State or federally recognized Indian Tribal government that has taken actions to reduce the number of repetitive loss properties, including severe repetitive loss properties, and has a FEMA-approved State Mitigation Plan that specifies how it has and how it intends to reduce the number of such repetitive loss properties is eligible to receive an increased Federal cost share of up to 90 percent of the Federal funding for SRL grants. For mitigation reconstruction projects, the percentage of Federal funds may be lower than 75 percent, since there is a cap on the Federal contribution for such projects. Funding Allocations: An Applicant’s target allocation is based on the national percentage of SRL properties present within the jurisdiction. The Applicant may apply for funding up to or exceeding its target allocation. States, Territories, and federally recognized Indian Tribal governments that do not meet the minimum threshold to receive a target allocation will be eligible to apply for a 10 percent set-aside of the SRL funds. Federally recognized Indian Tribal governments may receive funds through the 10 percent set-aside as a Grantee. Grant amounts allocated for Indian Tribal governments serving as the Grantee will not count against a State’s assigned target allocation. Availability of Funds: Interested Applicants should monitor the FEMA Web site at http://www.fema.gov/government/grant/srl/index.shtm for details regarding program funding availability. ELIGIBILITY REQUIREMENTS KEY POINTS Eligible Applicants: State emergency management agencies or a similar office of the State (i.e., the office that has primary emergency management or floodplain management responsibility); the District of Columbia; the U.S. Virgin Islands; the Commonwealth of Puerto Rico; American Samoa; Guam; the Commonwealth of the Northern Mariana Islands; and federally recognized Indian Tribal governments. Eligible Subapplicants: State-level agencies, federally recognized Indian Tribal governments participating in the NFIP (including State-recognized Indian Tribes, authorized Indian Tribal organizations, and Alaska Native villages), and local communities that are participating in the NFIP. NFIP Participation: All subapplicants must be participating in the NFIP, and must not be suspended or withdrawn from the NFIP, to be eligible to apply for SRL funds. Property owners who participate in the SRL program must have a flood insurance policy on the structure to be mitigated that is current at the time of application and maintained through award, or until property transfer is complete. Mitigation Plan Requirement: All Applicants must have a FEMA-approved State Mitigation Plan (Standard or Enhanced) or Tribal Mitigation Plan by the application deadline to be eligible to receive project grant funding under the SRL program, in accordance with 44 CFR Part 201. In addition, all subapplicants must have a FEMA-approved hazard mitigation plan by the application deadline to be eligible to receive project grant funding under the SRL program. In order to be eligible for an increased cost share of up to 90 percent , the FEMA-approved State or Tribal Standard Mitigation Plan must be in effect at the time of grant award. If any plan is due to lapse soon after application, project award may be held pending approval of a new or updated plan. NFIP PARTICIPATION: All subapplicants must be actively participating in the NFIP (must not be suspended or withdrawn) to be eligible to apply for SRL funds. A flood insurance policy for the structure to be mitigated must be maintained through award, or until property transfer is complete. MITIGATION PLAN REQUIREMENT: Projects submitted for consideration must be consistent with the goals and objectives identified in the current FEMA-approved State/tribal hazard mitigation plan and the Tribal/local hazard mitigation plan for the jurisdiction in which the activity is located. CONSULTATION WITH THE PROPERTY OWNER KEY POINTS The Consultation Process: The consultation process is a required notification and information gathering process. The subapplicant will consult with the property owner prior to submitting the subgrant application on project activity types, estimated costs, and insurance implications, as well as, the right to appeal. The subapplicant will make the consultation process as simple and streamlined as possible for the property owner. The consultation does not represent a formal offer of mitigation assistance. CONSULTATION PROCESS: The goal of this process is for the Applicant/subapplicant to notify the property owner that his/her property will be included in an SRL subapplication, discuss pertinent program requirements, and identify appropriate mitigation activities. APPLICATION PROCESS KEY POINTS Application Submission: Following consultation, Applicants must submit the complete grant application, including subapplications and any supporting documentation, using the web-based, electronic grant (eGrants) management system. Only SRL grant applications submitted through eGrants will be accepted. If a subapplicant does not use the eGrants system, the Applicant must enter the subapplicant’s paper subapplications into eGrants on their behalf using the Paper Subapplication Intake function. Cost-Effectiveness Requirement: The SRL program funds cost-effective mitigation activities, demonstrated by a BCR of 1.0 or greater. A BCA is a well-established method for quantitatively comparing the benefits and costs of mitigation projects. Applicants are required to submit a BCA for each mitigation project and adequate documentation for a complete review and analysis of the project. Feasibility and Effectiveness Requirement: Mitigation projects funded by the SRL program must be both feasible and effective at mitigating the hazard(s) for which the project was designed. FEMA will use the information provided in the project subapplication and supporting documentation to review the engineering feasibility and effectiveness of the proposed project. Environmental/Historic Preservation: Applicants/subapplicants must answer a series of Environmental/Historic Preservation review questions in the project subapplication to provide information about environmental resources and/or historic properties in the project area and potential impacts to those resources. FEMA’s Environmental/Historic Preservation review is completed as part of pre-award activities. Project Technical Assistance: Technical assistance for Engineering Feasibility, BCA, and Environmental/Historic Preservation compliance is available through the FEMA Technical Assistance Helplines. eGRANTS TECHNICAL ASSISTANCE: FEMA will provide technical assistance regarding the eGrants system through the eGrants Helpdesk: 1-866-476-0544 or mtegrants@dhs.gov. COST-EFFECTIVENESS REQUIREMENT: Only FEMA-approved BCA methodologies may be used to meet this requirement. FEASIBILITY AND EFFECTIVENESS: Mitigation projects must be both feasible and effective at mitigating the hazards for which the project was designed. ENVIRONMENTAL/HISTORIC PRESERVATION REVIEW: FEMA coordinates with Applicants and subapplicants to complete the Environmental/ Historic Preservation compliance review for projects selected for further review as part of pre-award activities. Funds may not be awarded and the project can not be initiated until the review is complete. PROJECT TECHNICAL ASSISTANCE HELPLINE: Phone: (866) 222-3580 (toll free) E-mail: enghelpline@dhs.gov bchelpline@dhs.gov ehhelpline@dhs.gov MANAGEMENT COSTS KEY POINTS Applicant Management Costs: A separate management cost subapplication must be submitted for Applicant management costs. Applicants may include a maximum of 10 percent of the total funds requested in their SRL grant application budget (Federal and non-federal shares) to support the project subapplications. Subapplicant Management Costs: Subapplicants may include a maximum of 5 percent of the total funds requested in their project subapplication for management costs to support the project. Subapplicants requesting management costs should provide supporting documentation and include these costs as separate line items in the Cost Estimate. Subapplicant management costs must be included in the project’s BCA. APPLICANT MANAGEMENT COSTS: A separate management cost subapplication must be submitted for Applicant management costs. SUBAPPLICANT MANAGEMENT COSTS: Subapplicants may include a maximum of 5 percent of the total funds requested in their project subapplication for management costs to support the project. APPLICATION REVIEW Applicant Level Review: Project subapplications are reviewed by the Applicant to ensure all program requirements are met. Applicants should submit eligible mitigation project subapplications against their target allocation. FEMA Review: Project applications and subapplications are reviewed by the FEMA Regional Offices for Eligibility and Completeness, Cost Effectiveness, Engineering Feasibility and Effectiveness, and Environmental/Historic Preservation Compliance. Project subapplications that do not satisfy program requirements may be removed from consideration. RANKING AND SELECTION KEY POINTS Ranking: FEMA ranks eligible mitigation project subapplications on the basis of the greatest savings to the NFIF. Projects are ranked from highest to lowest according to the FEMA-validated BCR for the project. SRL Target Allocation Application Selection: Subapplications from Applicants receiving an SRL target allocation will be selected for further review up to their target allocation based on the greatest savings to the NFIF, as demonstrated by the FEMA-validated BCR. SRL Set-aside Application Selection: Subapplications from Applicants without an SRL target allocation will be selected for further review on a national basis based on the greatest savings to the NFIF, as demonstrated by the FEMA-validated BCR. Ranking and Selection: FEMA will utilize the validated BCR to rank and prioritize projects for further review. MITIGATION OFFER PROCESS KEY POINTS Mitigation Offer: The mitigation offer process begins once FEMA has awarded the grant funds to the Grantee and the Grantee has provided the grant funds to the subgrantee. The subgrantee will extend the formal Mitigation Offer to each property owner through a Mitigation Offer Letter. Insurance Implications for Declining the Mitigation Offer: SRL property owners who decline a formal offer of mitigation under the SRL program will be subject to an increase in their insurance premium rates under the NFIP. SRL property owners may appeal insurance premium rate increases as outlined in the SRL program guidance. Mitigation Offer: Subgrantees are responsible for extending the formal Mitigation Offer to property owners following grant award. 1. SECTION 1 GRANT APPLICATION GUIDANCE 1.1 PURPOSE The Severe Repetitive Loss (SRL) Pilot Program, hereafter referred to as the SRL program, provides funding to reduce or eliminate the long-term risk of flood damage to severe repetitive loss residential structures insured under the National Flood Insurance Program (NFIP). The definition of severe repetitive loss as applied to this program was established in section 1361A of the NFIA, 42 U.S.C. 4102a. An SRL property is a residential property that is covered under an NFIP flood insurance policy and: (a) That has at least four NFIP claim payments (including building and contents) over $5,000 each, and the cumulative amount of such claims payments exceeds $20,000; or (b) For which at least two separate claims payments (building payments only) have been made with the cumulative amount of the building portion of such claims exceeding the market value of the building. For both (a) and (b) above, at least two of the referenced claims must have occurred within any ten-year period, and must be greater than 10 days apart. The long-term goal of the SRL program is to reduce or eliminate claims under the NFIP through project activities that will result in the greatest savings to the National Flood Insurance Fund (NFIF) in the shortest period of time. Individual property owners who decline offers of mitigation assistance under the SRL program will be subject to insurance premium rate increases; however, such increases may be appealed under certain conditions. FEMA may contribute up to 75 percent Federal funding for the amount approved under the grant award to implement approved activities. Any State or federally recognized Indian Tribal government that has taken actions to reduce the number of repetitive loss properties, including severe repetitive loss properties, and has a FEMA-approved State Mitigation Plan that specifies how it has and how it intends to reduce the number of such repetitive loss properties is eligible to receive an increased Federal cost share of up to 90 percent Federal funding for SRL grants. 1.2 SRL PROGRAM The SRL program will provide funding for projects that directly mitigate the flood risk to SRL properties. Eligible activities are: a) Acquisition and relocation of at risk structures and conversion of the property to open space; b) Elevation of existing structures to at least the Base Flood Elevation (BFE) or an Advisory Base Flood Elevation (ABFE) or higher. For the SRL program only, mitigation reconstruction is permitted only when traditional elevation cannot be implemented; c) Minor physical localized flood reduction projects; and d) Dry floodproofing (historic properties only). Applicants shall give priority to applications that demonstrate the greatest savings to the NFIF based on a Benefit-Cost Ratio (BCR) using a FEMA-approved methodology. FEMA’s list of prioritized properties based on insurance history can be a useful tool in this process. For the NFIF to realize the greatest savings in the shortest period of time from SRL projects, Applicants shall submit project subapplications that can be obligated 1 year from the close of the application deadline and completed within 3 years from the date of award. Extensions of grant performance periods may be approved as described in section 1.12, Extensions of Grant Performance Periods. Subapplications from Applicants receiving an SRL target allocation will be selected for further review up to their target allocation based on the greatest savings to the NFIF, as demonstrated by the FEMA-validated BCR. Subapplications from Applicants without an SRL target allocation will be selected for further review on a national basis, based on the greatest savings to the NFIF, as demonstrated by the FEMA-validated BCR. 1.3 AUTHORIZATION AND APPROPRIATION The SRL program is subject to the availability of appropriation funding, as well as any directive or restriction made with respect to such funds. 1.3.1. AUTHORIZATION AND APPROPRIATION The SRL program was created pursuant to Section 1361A of the National Flood Insurance Act of 1968 (or “the Act”), 42 U.S.C. 4102a, as amended by the Bunning-Bereuter-Blumenauer Flood Insurance Reform Act of 2004, Public Law 108-264, with the goal of reducing flood damages to SRL properties. The Catalog of Federal Domestic Assistance (CFDA) number for the SRL program is 97.110. FEMA published the interim final rule for the SRL program in the Federal Register at 72 FR 61720 on October 31, 2007. The regulations are codified at Title 44 of the Code of Federal Regulations (CFR) Part 79 (44 C.F.R. Part 79). 1.3.2. SRL TARGET ALLOCATIONS AND TEN PERCENT SET-ASIDE An Applicant’s target allocation is based on the national percentage of SRL properties present within the jurisdiction. States, Territories, and federally recognized Indian Tribal governments that do not meet the minimum threshold to receive a target allocation will be eligible to apply for a 10 percent set-aside of the SRL funds. In addition, federally recognized Indian Tribal governments may receive SRL funds through this set-aside as either a Grantee or subgrantee. The funds awarded to Indian Tribal governments serving as the Grantee will not count against a State’s assigned target allocation. 1.3.3. REDISTRIBUTION OF FUNDS For any of the following cases, FEMA may redistribute funds in any given fiscal year: * An Applicant with a target allocation chooses not to participate in the SRL program; * An Applicant’s target allocation exceeds the amount of eligible subapplications submitted; or * Applicants included in the 10 percent set-aside have not submitted subapplications up to the set-aside amount. FEMA may redistribute funds to Applicants with eligible subapplications that exceed either of the following: * Their target allocations; or * The amount of the 10 percent set-aside. In all cases, FEMA will give priority to subapplications based on the FEMA-validated BCR. This will provide opportunities for other Applicants and subapplicants to carry-out eligible activities in accordance with program goals. 1.4 SRL PROGRAM ELIGIBILITY 1.4.1. ELIGIBLE APPLICANTS Entities eligible to apply to FEMA for SRL grants include State emergency management agencies or a similar office of the State (i.e., the office that has primary emergency management or floodplain management responsibility); the District of Columbia; the U.S. Virgin Islands; the Commonwealth of Puerto Rico; American Samoa; Guam; the Commonwealth of the Northern Mariana Islands; and federally recognized Indian Tribal governments. Each State, Territory, or federally recognized Indian Tribal government shall designate one agency to serve as the Applicant for the SRL program. In accordance with 44 CFR Part 79 and FEMA policy “Government-to-Government Relations with American Indian and Alaska Native Tribal governments,” published in the January 12, 1999, issue of the Federal Register, federally recognized Indian Tribal governments may choose to apply for SRL grants either through the State as a subapplicant or directly to FEMA as an Applicant. This choice is independent of a designation under other FEMA grants and programs. Some State regulations prohibit the State from acting as an Applicant for an Indian Tribe. In such cases, or if the federally recognized Indian Tribal government chooses, the Tribal government may act as an Applicant. If awarded funding, the Indian Tribal government assumes the full responsibilities of a Grantee for the purposes of administering the grant. FEMA has determined that the unique status of Indian Tribal governments justifies providing this option to apply directly to FEMA. However, when legally permitted, Indian Tribal governments are encouraged to continue existing relationships with the State. 1.4.2. ELIGIBLE SUBAPPLICANTS Only the following entities are eligible to apply to the applicant for assistance: a) State-level agencies; b) Federally recognized Indian Tribal governments participating in NFIP, including State-recognized Indian Tribes, authorized Indian Tribal organizations, and Alaska Native villages; and c) Local communities that are participating in the NFIP. Certain non-participating political subdivisions (e.g., Councils of Governments, Regional Planning Commissions, or County governments) may apply and act as subgrantee on behalf of the NFIP-participating community in areas where the political subdivision provides zoning and building code enforcement, or planning and community development professional services for that community. Only those NFIP-participating communities or federally recognized Indian Tribal governments that are not suspended or withdrawn from the NFIP are eligible to receive SRL grant funds. Private non profit (PNP) organizations and individuals are not eligible subapplicants; however, a relevant State agency or local community may apply to the Applicant for assistance to mitigate privately owned or PNP-owned SRL properties. 1.4.3. ELIGIBLE PROPERTIES Only residential properties meeting the definition of SRL properties are eligible for flood mitigation grant funding through the SRL program. Property owners who participate in an SRL mitigation project must have a flood insurance policy on the structure to be mitigated that is current at the time of application and maintained through completion of the project, or for acquisition projects, until the transfer of ownership. 1.5 APPLICATION PROCESS All applicants must submit the complete grant application, including each subapplication and any supporting documentation, through the web-based, electronic grants (eGrants) management system. Subapplicants should consult the designated SRL Point of Contact in their State, Territory, or federally recognized Indian Tribal government for more information regarding the application process. Applicants are strongly encouraged to establish an earlier deadline for subapplicants to submit project subapplications in order to allow time to review and give priority to project subapplications prior to submission to FEMA. Application instructions are also available at: http://www.fema.gov/government/grant/srl/index.shtm. Application Procedures for States, Territories, and federally recognized Indian Tribal governments: * Applicants with target allocations can submit SRL projects up to or in excess of their allocation. Applicants are encouraged to submit subapplications in excess of their target allocation in the event that some subapplications are determined ineligible. * Applicants not meeting the minimum threshold for a target allocation can submit SRL projects to the 10 percent set-aside. The FEMA Regional Office may forward these applications to FEMA headquarters for review and national ranking according to the FEMA-validated BCR. * Federally recognized Indian Tribal governments are encouraged to request SRL assistance through their State emergency management office or floodplain management agency (i.e., State agencies normally responsible for other FEMA mitigation programs). The State agency will contact the FEMA Regional Office when serving as a Grantee on behalf of an Indian Tribal government. Funds awarded to an Indian Tribal government applying as a subapplicant through the State will be considered part of the State’s target allocation. * A federally recognized Indian Tribal government serving as the applicant can submit SRL projects to the 10 percent set-aside and therefore apply directly to FEMA if: o The State does not meet the minimum threshold for receiving an SRL target allocation; o The State will not or cannot serve as Grantee for the federally recognized Indian Tribal government; or o The federally recognized Indian Tribal government prefers to act as an applicant/Grantee. Funds awarded to a federally recognized Indian Tribal government applying as an Applicant will not count against a State’s target allocation. 1.5.1. MITIGATION PLAN REQUIREMENT To be eligible to apply for a SRL grant, Applicants must have a FEMA-approved State Mitigation Plan (Standard or Enhanced) or Tribal Mitigation Plan in compliance with 44 CFR Part 201 by the application deadline. Similarly, subapplicants must have a FEMA-approved local mitigation plan or Tribal mitigation plan in compliance with 44 CFR Part 201 that addresses flood hazards by the application deadline to be eligible to receive project grant funding under the SRL program. The jurisdiction in which the project is physically located must also have a FEMA-approved local mitigation plan. A State, Indian Tribal government, territory, or local government with a hazard mitigation plan that expires prior to the award of a grant or subgrant must have a FEMA-approved hazard mitigation plan in accordance with 44 CFR Part 201 in order to receive grant funding. All activities submitted for consideration must be consistent with the Applicant’s State Mitigation Plan (Standard or Enhanced) or Tribal Mitigation Plan and the subapplicant’s local or Tribal mitigation plan for the local jurisdiction in which the activity is located. Please See FEMA’s planning Web site at: http://www.fema.gov/plan/mitplanning/index.shtm. Applicants are encouraged to amend their plans to include a strategy for mitigating repetitive loss properties. To be eligible to receive an increased Federal cost share of up to 90 percent for SRL project grants, mitigation plans must include severe repetitive loss properties. States may address the repetitive loss strategy through an amendment to their existing FEMA-approved State Mitigation Plan. Amendments must be submitted to the respective FEMA Regional Office at least 45 days prior to the application deadline to allow time for review and, if necessary, revisions by the State. The amendments must be approved by the respective FEMA Regional Office no later than the application deadline in order to be eligible for the increased cost share for SRL program grants. Further, in order to maintain eligibility, States are required to incorporate any amendments, including their severe repetitive loss strategy, into their State Mitigation Plan at the next required 3-year review and update. In order to be eligible for an increased Federal cost share of up to 90 percent under the SRL program, the FEMA-approved State or Tribal Standard Mitigation Plan must be in effect at grant award and also meet all of the requirements described below: a) Repetitive Loss Strategy - 44 CFR § 201.4(c)(3)(v): A State may request the reduced cost share authorized under § 79.4(c)(2) of this chapter for the FMA and SRL programs, if it has an approved State Mitigation Plan meeting the requirements of this section that also identifies specific actions the State has taken to reduce the number of repetitive loss properties (which must include severe repetitive loss properties), and specifies how the State intends to reduce the number of such repetitive loss properties… This requirement supplements the risk assessment and mitigation strategy portions of the plan required under §§ 201.4(c)(2) and (3) by specifically identifying goals, capabilities, and actions that will reduce the number of repetitive loss properties, including severe repetitive loss properties. The mitigation strategy is based on the State’s Risk Assessment as required under § 201.4(c)(3)(ii). Therefore, the State must address repetitive loss structures in its risk assessment, where applicable. For example, in its overview of Estimating Potential Losses by Jurisdiction under § 201.4(c)(2)(iii), the State may analyze potential losses to identified repetitive loss properties based on estimates provided in local risk assessments. The Plan should refer generally to geographic areas where concentrations of repetitive loss properties are located for the purpose of identifying and prioritizing areas for mitigation projects, or the plan may list the number of repetitive loss properties with aggregate repetitive loss data. The State Hazard Mitigation Goals under § 201.4(c)(3)(i) must support the selection of activities to mitigate and reduce potential losses to structures susceptible to flood damage, including repetitive loss properties. In addition, the State and Local Capability Assessments required under § 201.4(c)(3)(ii) must include an evaluation of policies, programs, and capabilities that allow the mitigation of repetitive losses from flood damage. The State must describe specific actions that it has implemented to mitigate repetitive loss properties, and specifically actions taken to reduce the number of severe repetitive loss properties as a subset of all repetitive loss properties in the State. If the State cannot show that any action has ever been taken to reduce the number of such properties, this criteria cannot be met. Based on the findings of the risk assessment, the State must identify actions in the statewide mitigation strategy that specifically address repetitive loss properties, including those that are severe repetitive loss properties. This supplements the mitigation actions requirement under § 201.4(c)(3)(iii). Mitigation actions should be tied to goals and objectives and provide the means to achieve them. Actions should have been identified in the planning process, and local plans should be consistent with state-wide actions. As part of the mitigation strategy, the plan must also describe the current funding sources as well as potential sources that will be pursued to fund proposed mitigation actions for repetitive loss properties. This supplements the identification of funding requirement under § 201.4(c)(3)(iv). b) Coordination With Repetitive Loss Jurisdictions - 44 CFR § 201.4(c)(3)(v): …In addition, the plan must describe the strategy the State has to ensure that local jurisdictions with severe repetitive loss properties take actions to reduce the number of these properties, including the development of local mitigation plans. The State is required to identify strategies that encourage local communities to mitigate severe repetitive loss properties, including the development of local mitigation plans. This supplements the Coordination of Local Mitigation Planning portion of the plan under § 201.4(c)(4). At a minimum, the State must include severe repetitive loss in the description of its process for providing funding and technical assistance to prepare mitigation plans (§ 201.4(c)(4)(i)), and in its criteria for prioritizing communities that have such properties for planning and project grant assistance (§201.4(c)(4)(iii)). Other strategies for encouraging local communities to mitigate severe repetitive loss properties should be demonstrated through specific actions identified in the Mitigation Strategy. 1.5.2. PRIVACY OF REPETITIVE LOSS DATA The State should check with its Attorney General about applicable State public records acts or privacy laws that may affect the disclosure and use of severe repetitive loss or other categories of repetitive loss data. The records are protected pursuant to the Privacy Act of 1974 (5 U.S.C. 552a) and must not be publicly disclosed. FEMA shares this information at its discretion and may choose not to provide this information in the future to States or communities if it finds unauthorized use of this information has occurred. Individuals may seek access to information about their own property from States and communities, such as whether their property address is on the severe repetitive loss list or other repetitive loss list, the number of claims filed, and amounts paid to previous owners. 1.5.3. PRIVACY OF THE PROPERTY OWNER All information related to the individual property owner and/or individual property that is collected during the consultation process, as detailed in section 5.1, The SRL Consultation Process, shall be protected in accordance with the Privacy Act of 1974 and similar State and local laws and ordinances. 1.5.4. NATIONAL FLOOD INSURANCE PROGRAM PARTICIPATION All subapplicants must be participating in the NFIP, and must not be suspended or have withdrawn from the NFIP, to be eligible to apply for SRL funds and to act as subgrantee. Certain non-participating political subdivisions (e.g., Councils of Governments, Regional Planning Commissions, or County governments) may apply and act as subgrantee on behalf of the NFIP-participating community in areas where the political subdivision provides zoning and building code enforcement or planning and community development professional services for that community. In addition, federally recognized Indian Tribal governments applying directly to FEMA for SRL grants must also be participating in the NFIP. SRL funds shall not be used to support project activities in communities that are not participating in the NFIP. 1.5.5. NON-DISCRIMINATION Like other FEMA mitigation programs, the SRL program must be administered in an equitable and impartial manner, without discrimination on the grounds of race, color, religion, nationality, sex, age, disability, English proficiency, or economic status. The SRL program, including State and local governments distributing Federal assistance, is to be implemented in compliance with Title VI of the 1964 Civil Rights Act and other applicable laws. All applicants/Grantees must comply with Title VI, including State and local governments distributing Federal assistance. In implementing the SRL program, Applicants/Grantees and subapplicants/subgrantees will ensure that no discrimination is practiced. Applicants must consider fairness, equity, and equal access when prioritizing and selecting project subapplications to submit with their SRL application. Subapplicants and subgrantees must ensure fairness, equity, and equal access when consulting and making offers of mitigation to property owners that benefit from mitigation activities. 1.5.6. DEMONSTRATING COST EFFECTIVENESS OF MITIGATION PROJECTS The SRL program must fund cost-effective mitigation activities. To ensure this objective is met, a FEMA-approved Benefit-Cost Analysis (BCA) is required for all mitigation projects. Applicants shall evaluate subapplicant projects based on their cost-effectiveness as demonstrated through a FEMA-approved benefit-cost methodology. A BCA is a well-established method for quantitatively comparing the benefits and costs of mitigation projects. The end result is a BCR, which is derived from a project's total net present value of benefits (i.e., the value of benefits today versus the value of future benefits after taking inflation and rate of return into account) divided by the total project cost to include all documented project and maintenance costs. Project subapplications must demonstrate cost-effectiveness through a BCR of 1.0 or greater. Applicants and subapplicants must use the guidelines in section 3.11, Cost-Effectiveness, for conducting a BCA for mitigation reconstruction projects. Applicants and subapplicants may be required to submit BCA data on individual properties to the Regional Administrator or an Independent Third Party (ITP) in the event of an appeal. 1.5.7. GEOCODING REQUIREMENTS The location of all approved mitigation projects funded by the SRL program must be geo-coded using standard datum. Geospatial coordinates, in the form of latitude and longitude with an accuracy of +/- 20 meters (64 feet), must be provided as follows: * Property specific information on individual properties in the project ; and * Project sites for mitigation activities such as minor, localized flood reduction. The guidance for Geocoding Mitigation Data is available online from the FEMA Information Resources Library:  http://www.fema.gov/library/viewRecord.do?id=1849 and from FEMA Regional Offices. FEMA will work with Applicants to ensure this information is provided prior to award. 1.5.8. ACCESS TO REPETITIVE LOSS DATA State NFIP Coordinators may access an internet-based version of BureauNet, called Data Exchange. State NFIP Coordinators, State Hazard Mitigation Officers, and other approved State staff may access an internet portal called Simple and Quick Access Net (SQANet), developed as part of the FEMA NextGen project. Data Exchange allows the users to access and download current claims, policy, and repetitive loss data. SQANet allows users to download repetitive loss data and SRL data validated by FEMA, aiding in the identification of SRL properties eligible for mitigation under the program. Currently, local governments cannot access Data Exchange or SQANet and it is the responsibility of the State or FEMA Regional Office to provide SRL property information and if necessary claims, policy, and repetitive loss data to interested local governments. States may access this sensitive data and may provide it directly to local governments on the basis of their status as approved users. The approved users are limited to those engaging in floodplain management, improved real property acquisitions, and relocation projects that are consistent with the NFIP. State staff wishing to gain access to sensitive NFIP data may request a login ID and password for SQANet by visiting the NFIP Bureau and Statistical Agent Pilot Portal: http://www.nfipnextgen.com/help.html. States accessing BureauNet and SQANet records are advised of and must acknowledge the sensitive nature of the information and the need to protect the release of the data to unauthorized users. When the data are released to a local government by either the State or the FEMA Regional Office, the recipient must be notified in writing that the records relating to individuals and individual properties are: “being made available through the FEMA routine use policy for the specific purposes of mitigation planning, research, analysis, and feasibility studies consistent with the NFIP and for uses that further the floodplain management and hazard mitigation goals of the States and FEMA.” 1.6 SRL PROGRAM RESTRICTIONS 1.6.1. DUPLICATION OF PROGRAMS FEMA will not provide assistance under the SRL program for activities that it determines another Federal program has a more specific or primary authority to provide. FEMA also will not provide assistance for the Applicant or subapplicant’s legal obligations. FEMA may disallow or recoup amounts that duplicate other authorities. 1.6.2. DUPLICATION OF BENEFITS FEMA will not provide assistance under the SRL program for activities that duplicate benefits received by or available to Applicants, subapplicants, and other project participants from insurance, other assistance programs, legal awards, or any other source to address the same purpose. Such individuals or entities must notify the Grantee and FEMA of all benefits that they receive or anticipate from other sources for the same purpose, and must seek all such benefits available to them. FEMA will reduce the SRL grant by the amounts available for the same purpose from another source. If FEMA provides assistance under the SRL program when other benefits are available, the Grantee will be liable to FEMA for any duplicative amounts that are received from other sources, and must reimburse FEMA for such amounts. FEMA also will not provide assistance for the Applicant or subapplicant’s legal obligations, such as those imposed by a legal settlement, court order, or State law. FEMA funds cannot duplicate amounts available to the property owner from other sources. The property owner must identify any other sources of funds that may be reasonably available to the property owner for the mitigation activity such as: * Funds to compensate in whole or part for the value of the property; * Funds to address any property damage, such as applicable insurance policies; and/or * Other assistance, legal claims, or third party legal obligations. If such amounts become available to the property owner even after the offer of mitigation is made, for example after the acquisition of a property, the amounts received from FEMA will then be considered a duplication of benefits, and the property owner must inform the subapplicant and repay such duplicated amounts. 1.6.3. CONFLICT OF INTEREST Applicants and subapplicants must avoid conflict of interest. Subapplicants must comply with the procurement guidelines at 44 CFR § 13.36, which urges subapplicants to avoid situations where local officials with oversight authority might benefit financially from the grant disbursement. In addition, 44 CFR § 13.36 requires the subgrantee to ensure that their procurements are subject to full and open competition and undergo a cost or price analysis before award. Applicants must comply with guidelines for awarding and administering subgrants as stated in 44 CFR § 13.37. 1.6.4. COST OVERRUNS AND COST UNDERUNS If cost overruns are anticipated for obligated project activities, the Grantee shall inform the Regional Administrator who will verify the circumstances, including costs incurred and activities completed, and either approve or disapprove requests for funding. For SRL project grants, overruns may only be considered if the Project grant, including the overrun amount, would continue to meet programmatic eligibility requirements, including cost-effectiveness and cost-share. Cost under-runs (i.e., unexpended funds) remaining after the expiration of the performance period must be reported to FEMA for deobligation. Cost under-runs from one subapplication cannot be used to meet the cost overrun associated with another subapplication. 1.7 FEMA ELECTRONIC GRANTS SYSTEM FEMA requires applicants to use eGrants for the SRL program as it facilitates the application process and simplifies the selection and award process. FEMA has developed the eGrants system to meet the intent of the eGovernment initiative authorized by the Federal Financial Assistance Management Improvement Act of 1999, Public Law 106–107, passed on November 20, 1999. This initiative requires that all government agencies both streamline the grant application processes and provide the means to electronically create, review, and submit a grant application via the Internet. Applicants must use eGrants: https://portal.fema.gov/famsVuWeb/home to submit an SRL grant application for project and management cost subapplications. Only SRL grant applications submitted through the eGrants system will be accepted. If a subapplicant does not use the eGrants system, the Applicant must enter the subapplicant’s paper subapplication(s) into the eGrants system on their behalf using the Paper Subapplication Intake function. Paper project subapplications that follow the eGrants format are available in the eGrants system for subapplicants to use. Applicants must submit an original and two copies of any supporting documentation that cannot be electronically attached to the eGrants application (e.g., engineering drawings, photos, maps) to the appropriate FEMA Regional Office. The entire application, including all paper documentation, must be received by the appropriate FEMA Regional Office by the application deadline. Paper duplicates of attachments submitted with subapplications in eGrants are not necessary. FEMA’s eGrants system incorporates all elements of the SRL application in a user-friendly format for both Applicant and subapplicant use. The electronic process replaces the paper-based process in that subapplicants’ project subapplications may be electronically submitted to the Applicant for review and approval in eGrants. Then, the Applicant must attach the subapplications of the subapplicants to a grant application along with the Applicant’s own project and management cost subapplications, if any, for submission to FEMA. FEMA uses the eGrants system to monitor ongoing performance, manage the flow of Federal funds, and close out the grant award when all work is completed. In addition to the online help available within the eGrants system and the Grantee and subgrantee Quick Reference Guides available at http://www.fema.gov/government/grant/egrants.shtm, FEMA has established an eGrants Helpdesk to provide technical assistance to Applicants and subapplicants completing subapplications and grant applications in the eGrants system. The eGrants Helpdesk can be reached via telephone: 1 (866) 476-0544 or e-mail: mtegrants@dhs.gov. Standard hours of operation are 9 a.m. to 5 p.m. Eastern Time. Hours may be extended during the application period. 1.7.1. APPLICANT REVIEW OF SUBAPPLICATIONS Applicants must review and approve all subapplications in eGrants before they can be attached to a grant application. Applicants should review all project subapplications for eligibility, completeness, and consistency with the Applicant’s Standard or Enhanced Hazard Mitigation Plan and the goals and objectives of the applicable local hazard mitigation plan prior to inclusion in the Grant application. Applicants may return subapplications to subapplicants for revisions in eGrants as necessary. Applicants must certify that they have evaluated the activities included in each subapplication to address all program requirements and that they will be implemented in accordance with 44 CFR Part 13, Uniform Administrative Requirements for Grants and Cooperative Agreements to State and Local Governments. 1.8 GRANT APPLICATION CHECKLIST Applicants must provide the following in their SRL grant application in order to be eligible for consideration: a) Applicant Information: Provide name, Grant type, and State of the Applicant, State and Federal tax numbers, Federal Employer Identification Number, and Data Universal Numbering System (DUNS) number. Indicate whether the Applicant has a Smartlink account, whether the application is subject to review by the Executive Order (E.O.) 12372 process (select “Program is not covered by E.O. 12372” in eGrants, if applicable), and whether the applicant is delinquent on any Federal debt. b) Contact Information: Provide the name, agency, and address for the point of contact for the grant application. c) Subgrant applications: Include the total number of subapplications for eligible project activities that the Applicant has reviewed and approved in eGrants. A separate management cost subapplication must be submitted for Applicant management costs. d) Schedule: Provide the title of the grant application and the overall projected performance period for the grant, and ensure that the work schedule for each subapplication included with the grant application is appropriate, see section 3.8, Scope of Work. e) Budget: Ensure that the requested Cost Estimate for each subapplication is acceptable and provide the grant budget class for each item. Provide documentation to support a non-Federal cost share of up to 25 percent if applicable. Provide an Approved Indirect Cost Agreement, if applicable. f) Properties: Ensure that all of the properties in each project subapplication are included and eligible for funding, if applicable. g) Assurance and Certifications: Complete the assurances, including Non-Construction Programs, FEMA Form 20-16A, if applicable; Assurances-Construction Programs, FEMA Form 20-16B; Certification Regarding Lobbying, Debarment, Suspension, and Other Responsible Matters; Drug-Free Workplace Requirements, FEMA Form 20-16C; and Disclosure of Lobbying Activities, Standard Form LLL, if applicable. 1.9 COST SHARE REQUIREMENTS FEMA may contribute up to 75 percent Federal funding for the amount approved under the grant award to implement approved activities. Any State or federally recognized Indian Tribal government that has taken actions to reduce the number of repetitive loss properties, including severe repetitive loss properties, and has a FEMA-approved State Mitigation Plan that specifies how it has and how it intends to reduce the number of such repetitive loss properties (See section 1.5.1., Mitigation Plan Requirement) in compliance with 44 C.F.R. 201.4(c)(3)(v), as determined by FEMA, is eligible to receive an increased Federal cost share of up to 90 percent Federal funding for SRL grants. For mitigation reconstruction projects, the percentage of Federal funds may be lower than 75 percent, since there is a cap on the Federal contribution for such projects. Detailed guidance on mitigation reconstruction projects is located in Section 4.2, Mitigation Reconstruction. 1.9.1. NON-FEDERAL COST SHARE The non-Federal cost share is at least 25 percent of eligible project costs, or 10% if the State meets the SRL requirement of the State Mitigation Plan. The non-Federal cost share must be in direct support of the approved activities and must be an allowable cost for SRL funding. The amount of all contributions, cash, in-kind, or any combination thereof, may be accepted as part of the non-Federal cost share. For mitigation reconstruction projects, the Federal share is capped; therefore, the non-Federal cost share may be greater than 25 percent of the total project costs necessary to fund the mitigation reconstruction project. In lieu of requesting pre-award costs, applicants and subapplicants may submit eligible costs incurred prior to award but after the SRL application period has opened as their non-Federal cost share (See section 3.1.3, Pre-award Project Costs. Indirect costs may be included as part of the total project cost. Indirect costs in excess of the 10 percent management costs limit may not be used as part of the cost share, See section 2.1, Eligible Management Cost Activities. SRL funds generally cannot be used as cost share for another Federally funded activity. In addition, costs contributing to the non-Federal cost share for the SRL program cannot be used as cost share for other Federal grant programs. In general, the non-Federal cost share for SRL may not include funds from other Federal agencies, except for Federal funds that have authorizing statutes that explicitly allow the funds to be used as a cost share for other Federal grants. Such exceptions include: * Department of Housing and Urban Development Community Development Block Grant (CDBG) monies may be used as cost share for property acquisition projects as long as the projects are eligible under the CDBG program. * The U.S. Small Business Administration loan funds and the U.S. Department of Agriculture’s Farm Service Agency loan funds, which lose their Federal identity once the loan is approved, may be used as a cost share. * Tribal Health Services funds may be used as cost share for SRL funds, as long as the mitigation activity “contributes to the purposes for which grants…are made” under the Tribal Health Services statute. * Bureau of Tribal Affairs funds may be used as cost share. * Appalachian Regional Commission funds may be used as cost share, per 40 U.S.C. 14321(a)(3). * Funds derived from Title III of the Secure Rural Schools and Community Self-Determination Act of 2000, 16 U.S.C. 500, may be used as cost share, so long as the use is also consistent with the purposes of that Act. * The NFIP Increased Cost of Compliance (ICC) claim payment from previous flood events may be used to meet the non-Federal cost share requirements, as long as the period for making such a claim remains open. 1.9.2. COST SHARE DOCUMENTATION Requirements for in-kind contributions can be found in 44 CFR § 13.24. In-kind contributions must be comprised of eligible program costs. The following documentation is required for third-party cash and in-kind contributions: a) Record of donor; b) Dates of donation; c) Rates for staffing, equipment or usage, supplies, etc.; d) Amounts of donation; and e) Deposit slips for cash contributions. According to 44 CFR § 13.24, this documentation is to be held at the Applicant and subapplicant level. 1.10 PROCEDURES FOR REVIEW, SELECTION, AND AWARD OF SRL SUBAPPLICATIONS 1.10.1. APPLICANT REVIEW Applicants should review project subapplications for Eligibility and Completeness, Cost Effectiveness, Engineering Feasibility and Effectiveness, and Environmental/Historic Preservation Compliance. Project subapplications that do not satisfy program requirements may be removed from consideration. 1.10.2. REGIONAL OFFICE ELIGIBILITY, COMPLETENESS, AND TECHNICAL REVIEW FEMA Regional Offices will review all project subapplications to ensure eligibility and completeness. In addition, the FEMA Regional Office will verify cost-effectiveness and technical feasibility and effectiveness of the proposed project. Project subapplications that do not satisfy these requirements will be removed from consideration, See section 3.14.1., Eligibility and Completeness Review. 1.10.3. SRL TARGET ALLOCATION APPLICATION SELECTION Subapplications from Applicants receiving an SRL target allocation will be selected for further review up to their target allocation based on the greatest savings to the NFIF, as demonstrated by the FEMA-validated BCR. FEMA Regional Offices shall give priority to eligible project subapplications up to the Applicant’s target allocation from highest BCR to lowest BCR. Eligible project subapplications not selected for further review may be forwarded for consideration under the 10 percent set-aside. The Regional Offices will notify Applicants if subapplications have been selected for further review, determined eligible but unfunded, or determined ineligible. Applicants may resubmit unfunded project subapplications for consideration in the next fiscal year. 1.10.4. SRL 10 PERCENT SET-ASIDE APPLICATION SELECTION Subapplications from Applicants without an SRL target allocation, and those forwarded from the Target Allocation Application Selection Process (Applicants with excess subapplications), will be selected for further review on a national basis based on the greatest savings to the NFIF, as demonstrated by the FEMA-validated BCR. Project subapplications will be ranked nationally from highest BCR to lowest BCR and selected for further review in that order, until funds are exhausted. The FEMA Regional Offices will notify Applicants if subapplications have been selected for further review, determined eligible but unfunded, or determined ineligible. Applicants may resubmit unfunded project subapplications for consideration in the next fiscal year. 1.10.5. FEMA PRE-AWARD ACTIVITIES FEMA will notify and work with Applicants who have subapplications selected for further review to implement required pre-award activities. These activities may include but are not limited to Environmental/Historic Preservation review, verification of Applicant and subapplicant commitments, verification of mitigation plan status, and an understanding of grant terms. In addition, FEMA will ensure that the Applicant has met all reporting requirements for FEMA-State grant awards currently in progress. FEMA may, at its discretion, request information or documentation from Applicants to support certain project subapplications as part of pre-award activities. Applicants must respond to requests for information from the FEMA Regional Office within the timeframe specified by the region. Applicants with project subapplications selected for further review will be notified of the date by which all pre-award activities must be completed. FEMA will complete the Environmental/Historic Preservation review for projects selected for further review as part of pre-award activities. Funds will NOT be awarded and the Applicant/subapplicant may NOT initiate the project until FEMA has completed its review. Additional compliance information for the Environmental/Historic Preservation review is available at: http://www.fema.gov/plan/ehp/ehp-applicant-help.shtm. 1.10.6. AWARDS FEMA will provide an award package to Applicants for approved subapplications once pre-award activities are completed. The award package must be signed by the Applicant and returned to FEMA before funds can be awarded. The Applicant must agree to abide by the grant award terms and conditions as set forth in this Guidance and in the SRL Agreement Articles available at: http://www.fema.gov/government/grant/srl/index.shtm or from the FEMA Regional Office. 1.10.7. NOTIFICATION OF UNSUCCESSFUL SUBAPPLICATIONS FEMA Regional Office will notify Applicants of subapplications that do not satisfy Eligibility and Completeness requirements, project subapplications that do not meet cost-effectiveness or feasibility requirements, and project subapplications that are not selected for award. These subapplications may be resubmitted for consideration under the SRL program in future fiscal years if funds are available. 1.11 PERFORMANCE PERIOD The performance period is the period of time during which the Grantee is expected to complete the grant activities and to incur and expend funds approved for the SRL grant. The grant performance period is specified in the draft SRL Agreement Articles available at: http://www.fema.gov/government/grant/srl/index.shtm or from the FEMA Regional Office. The performance period for the grant shall begin on the date that the grant is awarded and end on the last day of the performance period of the subgrant with the longest performance period awarded to the Grantee. The performance period for subgrant awards shall not exceed 3 years from date of award. Project subapplications that propose a work schedule in excess of 3 years will not be accepted. The Grantee is responsible for monitoring the progress of each subgrant to ensure timely progress and closeout. A Mitigation Offer made under the SRL program remains open and available to the property owner subject to the availability of funds. When a property owner declines an offer of mitigation, the Applicant may use its accounting system to retain the funds for the duration of the performance period. 1.12 EXTENSIONS OF GRANT PERFORMANCE PERIODS Requests for extensions to the performance period will be evaluated by FEMA and will not be approved automatically. In accordance with FEMA’s Financial and Acquisition Management Division’s Extension Policy, the Regional Office may extend the performance period up to 1 year. Requests for performance period extension must be submitted in writing to the Regional Administrator and must be supported by adequate justification in order to be processed. First extension requests shall not extend the original performance period of the grant more than 1 year. An adequate justification is a written explanation of the reason or reasons for an extension and must demonstrate that work is in progress and will be completed within the extended period of performance. The justification must address the following areas to enable the review of extension request: a) Submission Date: The request must be submitted at least 60 days prior to the expiration date of the performance period. b) Reason for Delay: Identify the status of the activity, including the original approved performance period, and give a brief description for the delay. c) Budget: Identify the remaining funds, both FEMA-share and cost-share match, available for the extended period and outline how the funds will be used. Identify sources of additional funding, if remaining FEMA funds and cost share will not support the extension request. d) Plan for Completion: Identify the objectives necessary to complete the activity, completion date for each objective, and list the position/person responsible for oversight of completion of the activity. e) Completion Date: Identify the projected completion date (new performance period end date) for the activity. f) No change of scope: Provide a certification that the activity will be completed within the extended period without any modification to the original Scope of Work (SOW) approved by FEMA. If a second performance period extension becomes necessary, then the Grantee must submit an additional formal written request to the Regional Administrator. Second extensions shall not extend the original performance period of the grant beyond 2 years. As with the first request, the second extension request must be made at least 60 days prior to the expiration of the performance period and must include a justification for the extension that addresses the items noted above. Per FEMA policy, the second extension request is sent from the FEMA Regional Office to FEMA headquarters for review and approval. Should any subgrant performance period be extended, the grant performance period will be extended as well; however, the extension should be conditioned so that all completed subgrants are closed out within their individual performance periods. The total performance period (including all extensions) for project subgrants shall not exceed 5 years. 1.13 REPORTING REQUIREMENTS The following reports are required from Grantees: 1.13.1. FEDERAL CASH TRANSACTION REPORTS If the Grantee uses the Department of Health and Human Services (DHHS), Division of Payment Management, Payment Management System-SMARTLINK, the Grantee shall submit to FEMA a copy of the Standard Form 272, Federal Cash Transaction Report, submitted to DHHS. 1.13.2. FINANCIAL STATUS REPORTS The Grantee shall submit Financial Status Reports, FEMA Form 20-10, to the FEMA Regional Office within 30 days of the end of the first Federal quarter following the initial grant award. The Regional Administrator may waive the initial report. The Grantee shall submit quarterly financial status reports thereafter until the grant ends. Reports are due on January 30, April 30, July 30, and October 30. See 44 CFR § 13.40, Monitoring and Reporting Program Performance, for additional information. The Regional Administrator may suspend drawdowns from the DHHS/Payment Management System-SMARTLINK if quarterly financial reports are not submitted on time. 1.13.3. PERFORMANCE REPORTS The Grantee shall submit performance reports for each grant award to the FEMA Regional Office within 30 days of the end of the first Federal quarter following the initial grant award. The Regional Administrator may waive the initial report. The Grantee shall submit quarterly performance reports thereafter until the grant ends. Reports are due on January 30, April 30, July 30, and October 30. Performance reports must include the activity name or other identification as well as information to: i) Describe significant activities and developments that have occurred and show progress during the quarter, including a comparison of actual accomplishments to the work schedule objectives established in the subapplication. ii) Indicate the status of Mitigation Offers made to property owners including which offers have been extended or are pending, and whether property owners have accepted or declined such offers. Grantees shall forward information on property owners who decline Mitigation Offers to the Assistant Administrator for the Mitigation Directorate to begin implementation of insurance premium rate increases. iii) Indicate whether completion of work is anticipated within the performance period. If not, describe any problems, delays, or adverse conditions that will impair the ability to meet the stated objectives in the subapplication. iv) Indicate whether cost underruns, cost overruns, change of scope requests, or requests for extension of performance period are anticipated. 1.13.4. FINAL REPORTS The Grantee shall submit a Final Financial Status Report and Performance Report within 90 days of the grant performance period expiration date, per 44 CFR § 13.50. 1.14 CLOSEOUT The Grantee has up to 90 days following the expiration of the grant performance period to liquidate valid expenditures incurred during the performance period. Cost underruns remaining after the performance period expiration date must be reported to FEMA for de-obligation. 1.15 REGIONAL CONTACT INFORMATION Contact information for FEMA Regional Offices is provided at: http://www.fema.gov/about/contact/regions.shtm and is listed here for your information. FEMA Region I - Serving Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, and Vermont: 99 High Street, 6th Floor, Boston, MA 02110-2356. (617) 956-7568. FEMA Region II - Serving New York, New Jersey, the Commonwealth of Puerto Rico, and the U.S. Virgin Islands: 26 Federal Plaza, Suite 1337, New York, NY 10278-0002. (212) 680-3600. FEMA Region III - Serving the District of Columbia, Delaware, Maryland Pennsylvania, Virginia, and West Virginia: 615 Chestnut Street, One Independence Mall, Sixth Floor, Philadelphia, PA 19106-4404. (215) 931-5608. FEMA Region IV - Serving Alabama, Florida, Georgia, Kentucky, Mississippi, North Carolina, South Carolina, and Tennessee: 3003 Chamblee Tucker Road, Atlanta, GA 30341-4112. (770) 220-5200. FEMA Region V - Serving Illinois, Indiana, Michigan, Minnesota, Ohio, and Wisconsin: 536 South Clark Street, 6th Floor, Chicago, IL 60605-1523. (312) 408-5500. FEMA Region VI - Serving Arkansas, Louisiana, New Mexico, Oklahoma, and Texas: 800 North Loop 288, Denton, TX 76209-3698. (940) 898-5399. FEMA Region VII - Serving Iowa, Kansas, Missouri, and Nebraska: 9221 Ward Parkway, Suite 300, Kansas City, MO 64114-3372. (816) 283-7002. FEMA Region VIII - Serving Colorado, Montana, North Dakota, South Dakota, Utah, and Wyoming: Denver Federal Center, Building 710, Box 25267, Denver, CO 80255-0267. (303) 235-4800. FEMA Region IX - Serving Arizona, California, Hawaii, Nevada, the Territory of American Samoa, Guam, and the Commonwealth of the Northern Mariana Islands: 1111 Broadway Street, Suite 1200, Oakland CA 94607-4052. (510) 627-7100. FEMA Region X - Serving Alaska, Idaho, Oregon, and Washington: Federal Regional Center, 130 228th Street, SW, Bothell, WA 98021-9796. (425) 487-4600. 1.16 REFERENCED STATUTES, REGULATIONS, AND GUIDANCE * 44 CFR Part 13, Uniform Administrative Requirements for Grants and Cooperative Agreements to State and Local Governments * 44 CFR Part 201, Mitigation Planning * Appalachian Regional Commission Funds, 40 U.S.C. 14321(a)(3) * Section 102 of Bunning-Bereuter-Blumenauer Flood Insurance Reform Act of 2004 (Public Law 108-264) * Civil Rights Act of 1964, 42 U.S.C. 2000A * Federal Financial Assistance Management Improvement Act of 1999, 31 U.S.C. 6101 * Guidance for Geocoding Mitigation Data (http://www.fema.gov/library/viewRecord.do?id=1849) * Intergovernmental Review of Federal Programs, E.O. 12372, July 14, 1982; Intergovernmental Review of Federal Programs, E.O. 12416, April 8, 1983; and Federalism, E.O. 13132, August 4, 1999. * Mitigation eGrants System (http://www.fema.gov/government/grant/egrants.shtm) * National Flood Insurance Act of 1968, as amended, 42 U.S.C. 4001 et seq. * National Flood Insurance Reform Act of 1994 (Public Law 103-325) * Privacy Act of 1974, 5 U.S.C. 552A * Robert T. Stafford Disaster Relief and Emergency Assistance Act, 42 U.S.C. 5121 et seq. * Secure Rural Schools and Community Self-Determination Act of 2000, 16 U.S.C. 500 APPLICANT MANAGEMENT COSTS 2. SECTION 2 APPLICANT MANAGEMENT COSTS Applicants may apply for a maximum of 10 percent of the total funds requested in their SRL grant application budget (Federal and non-federal shares) for management costs to support the project subapplications included as part of their SRL grant application. Applicants requesting management costs must submit a separate management cost subgrant application in eGrants and include the management cost subgrant application with their SRL grant application or the request for funds will not be considered. 2.1 ELIGIBLE MANAGEMENT COST ACTIVITIES Eligible management costs may include: * Solicitation, review, and processing of SRL project subapplications and subgrant awards * Obtaining Pre-Award Consultation Agreements from SRL property owners if performed by the Applicant * Technical assistance to subapplicants regarding BCA, technical feasibility, and Environmental/Historic Preservation documentation * Geocoding mitigation projects selected for further review * Delivery of technical assistance intended to support project activities * Managing grants (e.g., quarterly reporting and close-out) * Technical monitoring (e.g., site visits, technical meetings, hearings) * Staff salary costs directly related to performing the activities listed above Management cost activities must be consistent with Office of Management and Budget (OMB) Circular A-87, Cost Principles for State, Local, and Indian Tribal Governments. Indirect costs, if requested, must be included as part of the cost estimate for the Applicant management costs subapplication, not to exceed 10 percent of the total cost of the grant application. Indirect costs are included as part of the total project cost; however, indirect costs in excess of the 10 percent management costs limit may not be used as part of the non-Federal cost share. Indirect costs must be supported with a current Indirect Cost Rate approved by a Federal Cognizant Agency. 2.2 LIMITATIONS ON MANAGEMENT COSTS Applicant management costs may be approved for 10 percent of the total amount awarded for the Applicant’s project subgrants or the amount of management costs requested by the Applicant, whichever is less. If the Applicant is also the subapplicant, the Applicant shall not request subapplicant management costs in their own project subapplication, See section 3.1.2., Subgrantee Management Costs. Applicants who are not awarded SRL funds will not receive reimbursement for management costs. There may be limited exceptions made to permit an increase in Applicant management costs. If cost overruns are anticipated for obligated project activities, the Grantee shall inform the Regional Administrator who will verify the circumstances, including costs incurred and activities completed, and either approve or disapprove requests for funding. 2.2.1. PRE-AWARD MANAGEMENT COSTS Eligible management costs incurred prior to the grant award, but after the SRL application period has opened, are identified as pre-award management costs. FEMA may fund eligible pre-award management costs at its discretion at the time of the grant award and as funds are available. Eligible pre-award management costs must be included as separate line items in the Cost Estimate for the management cost subapplication. Costs incurred pre-award for activities associated with project implementation, project initiation, or projects completed prior to award are neither management costs, nor eligible pre-award costs, and will not be reimbursed. In lieu of requesting reimbursement of pre-award management costs, Applicants may submit eligible management costs incurred prior to award but after the SRL application period has opened as their non-Federal cost share, See section 1.9.1., Non-Federal Cost Share. 2.3 COST SHARE FEMA may contribute up to 75 percent Federal funding for management costs requested to support project subapplications included in an SRL grant application. Any State or federally recognized Indian Tribal government that has a FEMA-approved State Mitigation Plan that includes a repetitive loss strategy (See section 1.5.1., Mitigation Plan Requirement) is eligible to receive an increased Federal cost share of up to 90 percent Federal funding for management costs. 2.4 APPLICANT MANAGEMENT COST SUBAPPLICATION CHECKLIST Applicants must provide the following in their management cost subapplication in order to be eligible for consideration: a) Applicant Information: Provide name, Grant type, and State of the Applicant, State and Federal tax numbers, and Federal Employer Identification Number. b) Contact Information: Provide the name, agency, and address for the point of contact for the Management Cost subapplication. c) Community Information: Indicate the entity that will benefit from the subapplication (use “Statewide.”) d) Mitigation Plan Information: Indicate whether the Applicant has a FEMA-approved State Mitigation Plan (Standard or Enhanced) or Tribal Mitigation Plan. e) Mitigation Activity Information: Indicate the type, intent, and title of the proposed activity. f) Hazard Information: Describe the area to be covered and identify the source of the hazards to be addressed by the activity. g) Scope of Work: Describe the goals and objectives of the activity and how they will be implemented, including timeline/schedule/milestones. h) Cost Estimate: Provide all anticipated and potential costs for each activity, including Federal and non-Federal shares, including an Approved Indirect Cost Agreement, if applicable. Indicate all pre-award costs as separate line items. i) Match Sources: Provide the non-Federal cost share for the proposed activity, including documentation to support the non-Federal cost share, See section 1.9.2., Cost Share Documentation. j) Cost-Effectiveness Information: Applicant management costs are exempt from a BCA. k) Assurances and Certifications: Complete the Summary Sheet for Assurances and Certification, FEMA Form 20-16; Assurances-Non-Construction Programs, FEMA Form 20-16A; Assurances-Construction Programs, FEMA Form 20-16B; Certification Regarding Lobbying, Debarment, Suspension, and Other Responsible Matters; Drug-Free Workplace Requirements, FEMA Form 20-16C; and Disclosure of Lobbying Activities, Standard Form LLL, if applicable. 3. SECTION 3 MITIGATION PROJECT SUBAPPLICATION GUIDANCE 1. The SRL program differs from FEMA’s other mitigation grant programs in that those property owners who decline offers of mitigation assistance will be subject to increases to their insurance premium rates. SRL subapplications must provide sufficient information for FEMA to determine the eligibility of each proposed activity for SRL program funds, and to give priority to the mitigation of properties based on the project BCR that will result in the greatest savings to the NFIF in the shortest period of time, by reducing or eliminating future claims payments. Any proposed activity submitted without enough information for FEMA to determine eligibility and priority will not be considered for funding. 3.1 ELIGIBLE MITIGATION PROJECT ACTIVITIES AND ASSOCIATED COSTS To be eligible for funding, properties must be currently insured by the NFIP at the time of application and the insured property must be covered through the completion of the project. For acquisition projects, insurance must be maintained by the property owner until the transfer of ownership. For projects that mitigate existing structures remaining in the Special Flood Hazard Area (SFHA), insurance must be maintained for the life of the property. The SFHA is defined as the land in the floodplain within a community subject to a 1 percent or greater chance of flooding in any given year (See section 3.4, Special Flood Hazard Area Requirements.) Only the following mitigation activities are eligible for the SRL program: 1. Acquisitions/Relocations: The acquisition of the structure and underlying real property for the purpose of creating open space, demolition or relocation of the structure, and conversion of the property to deed restricted open space uses in perpetuity. Applicants and subapplicants must comply with 44 CFR Part 80 and this Guidance. The relocation of existing residential structures must be to areas outside of the SFHA or local regulatory floodplain, outside of any regulatory erosion zones, and in conformance with any other applicable State or local land-use regulations (See section 4.1, Property Acquisition). 2. Elevations: The elevation of existing structures to at least the BFE or an ABFE or higher if required by any State or local ordinance, and in accordance with criteria established in this Guidance. The techniques used for elevating structures in accordance with FEMA requirements can be found at: http://www.fema.gov/government/grant/mitmeasures/elevate.shtm. Mitigation reconstruction, which is the demolition and rebuilding of structures, is permitted when traditional elevation cannot be implemented. Mitigation reconstruction must be completed to at least the BFE or an ABFE or higher if required by any State or local ordinance, and in accordance with criteria established in this Guidance. Eligible costs for mitigation reconstruction are limited to $150,000 Federal share per property (excluding administrative allowances and permitting fees); thus, in some cases there may be a higher percentage of non-Federal share required to cover the total project costs. Mitigation reconstruction will not be eligible if the structure is located in a regulatory floodway or V Zone as identified on the effective Flood Insurance Rate Map (FIRM), or within the mapped limit of the 1.5-foot breaking wave zone. 3. Minor Localized Flood Reduction Projects: These projects may include the installation or modification of culverts and floodgates; the creation of small retention and detention basins; and upgrades of culverts to bridges. The purpose of this project type is to lessen the frequency or severity of flooding and decrease predicted flood damages. Minor localized flood reduction projects must not duplicate the flood prevention activities of other Federal agencies. At least 50 percent of the structures directly benefiting from this mitigation activity must be SRL properties. Documentation must be provided in the subapplication that identifies all properties that will benefit from this activity and specifically identifies the SRL properties. 4. Floodproofing: Dry floodproofing of a historic residential structure is permissible only when other techniques that would mitigate to the BFE would cause the structure to lose its status as listed or eligible for inclusion on the National Register of Historic Places. Structures to be dry floodproofed must meet the definition of Historic Structure in 44 CFR § 59.1. Floodproofing must be performed in accordance with NFIP Technical Bulletin 3-93, Non-Residential Floodproofing -- Requirements and Certification, and the requirements pertaining to floodproofing of non-residential structures found in 44 CFR §§ 60.3(b)(5) and (c)(4). 3.1.1. CRITERIA FOR SUBAPPLICANT CONSIDERATION OF PROJECT TYPE The subapplicant will consider the following information in examining potential project activity types. The subapplicant should determine the activity types that it does not typically implement for legal, cost effectiveness, contractual, land-use, or other policy reasons prior to consulting with the property owner. For example: * Subapplicants should provide similar treatment to all property owners regarding the use of pre-event or current market value for acquisition projects. * In order to maintain their tax base, some subapplicants will not elect to pursue an acquisition project. * Some subapplicants will not select a specific mitigation activity because that mitigation approach is not preferred, and thus is not integrated into their FEMA-approved mitigation plans. * Some subapplicants may not wish to implement elevation or acquisition projects requiring pass through of Federal funds to the SRL property owner. * Some subapplicants may experience a shortage of qualified contractors and/or structural engineers to implement relocation, elevation, mitigation reconstruction, acquisition projects, or floodproofing (for historic properties only). * Some subapplicants may select minor, physical localized flood reduction projects because property owners will not experience the risk of increased insurance premium rates. The subapplicant shall describe the process used to evaluate elevation mitigation measures. When mitigation reconstruction is selected, the following list of general criteria must be addressed in writing as appropriate to demonstrate why traditional elevation cannot be implemented: * Health considerations, such as asbestos, mold, etc., requiring demolition; * Structure and foundation type cannot be elevated due to high likelihood of collapse and or disintegration of structure during the process (this statement must be certified by a registered engineer or architect); * Local government is unable to support structural elevation for reasons such as the elevated structure would be non-compliant with minimum standards of the 2003 International Codes or other codes and ordinances as certified by local building official; and/or * Project costs are prohibitive and do not achieve a BCR of 1.0 or greater. Information regarding appropriate mitigation project types is available in FEMA 551, Selecting Appropriate Mitigation Measures for Floodprone Structures. In addition, the following diagrams illustrate a recommended sequence for considering the feasibility of project activity types. Mitigation reconstruction is permitted when traditional elevation cannot be implemented. 3.1.2. SUBGRANTEE MANAGEMENT COSTS Subapplicants may include a maximum of 5 percent of the total funds requested in their project subapplication for management costs to support the project. Subapplicant management cost activities must be consistent with OMB Circular A-87, Cost Principles for State, Local, and Indian Tribal Governments. Subapplicants requesting management costs should provide supporting documentation and include these costs as separate line items in the Cost Estimate for the project subapplication in order to be considered. Management costs must be included in the project’s BCA. Applicants may not request subapplicant management costs in their own project subapplications. Indirect costs, if requested, must be included as part of the subapplicant management costs, not to exceed 5 percent of the total cost of the project subapplication. Indirect costs should be supported with a current Indirect Cost Rate that is approved by a Federal Cognizant Agency. There may be limited exceptions made to permit an increase in subgrantee management costs. If cost overruns are anticipated for obligated project activities, the Grantee shall inform the Regional Administrator who will verify the circumstances, including costs incurred and activities completed, and either approve or disapprove requests for funding. 3.1.3. PRE-AWARD PROJECT COSTS Eligible costs incurred prior to the date of the grant award, but after the SRL application period has opened, are identified as pre-award costs. FEMA may fund eligible pre-award project costs at its discretion and as funds are available. Grantees and subgrantees may be reimbursed for eligible pre-award costs incurred after the publication of the SRL Guidance for activities directly related to the development of the project proposal. Activities may include, but are not limited to, development of the BCA and Environment and Historic Preservation data and documentation and engineering design. Pre-award project costs should be identified as separate line items in the Cost Estimate for the project subapplication. Pre-award project costs associated with project implementation, project initiation, or projects completed prior to award will not be eligible. Therefore, implementation activities initiated or completed prior to award will not be reimbursed. In lieu of requesting pre-award project costs, Applicants and subapplicants may submit eligible costs incurred prior to award but after the SRL application period has opened as their non-Federal cost share (See section 1.9.1., Non-Federal Cost Share). 3.2 INELIGIBLE PROJECT ACTIVITIES AND COSTS Certain project activities and their associated costs are not eligible. Ineligible project activities and costs include but are not limited to the following: * Mitigation plan development, update, or amendment * Major flood control projects related to the construction, demolition, or repair of dams, dikes, levees, floodwalls, seawalls, groins, jetties, breakwaters, and waterway channelization, and erosion projects related to beach nourishment or renourishment * Mitigation reconstruction located in a regulatory floodway or V Zone as identified on the effective FIRM, or within the mapped limit of the 1.5-foot breaking wave zone * Floodproofing of any residential structure that does not qualify as a historic residential property listed or eligible for inclusion on the National Register of Historic Places * Phased or partial project that is dependent on another phase or part to be effective and/or feasible * Studies not directly related to the design and implementation of the proposed mitigation project * Flood studies or flood mapping other than project designs and eligibility analyses * Projects that solely address operation, maintenance or repairs of existing structures, facilities, or infrastructure * Generators, and related equipment * Warning and alert notification systems (e.g., National Oceanic and Atmospheric Administration [NOAA] weather radios) * Response and communication equipment * Properties that are subject to pending litigation * Legal procedures related to litigation for an approved application or subapplication * Landscaping for ornamentation (trees, shrubs, etc.) * Site remediation of hazardous contaminants * Water quality infrastructure projects * Activities for which implementation has already been initiated or completed Project subapplications that propose ineligible activities will be removed from consideration. FEMA will not separate eligible activities from ineligible project subapplications for funding consideration (See section 1.5.1., Mitigation Plan Requirement). 3.3 MITIGATION PROJECT REQUIREMENTS 3.3.1. MITIGATION PLAN REQUIREMENT All Applicants must have a FEMA-approved State Mitigation Plan (Standard or Enhanced) or Tribal Mitigation Plan by the application deadline to be eligible to receive project grant funding under the SRL program in accordance with 44 CFR Part 201 (See section 1.5.1., Mitigation Plan Requirement). In addition, all subapplicants must have a FEMA-approved hazard mitigation plan by the application deadline to be eligible to receive project grant funding under the SRL program. A local government with a hazard mitigation plan that expires prior to the award of a grant or subgrant must provide a FEMA-approved hazard mitigation plan in accordance with 44 CFR Part 201 in order to receive grant funding. Projects submitted for consideration must be consistent with the goals and objectives identified in the current FEMA-approved State Mitigation Plan or Tribal Mitigation Plan and local hazard mitigation plan for the jurisdiction in which the activity is located. 3.3.2. FEASIBILITY AND EFFECTIVENESS REQUIREMENT Mitigation projects funded by the SRL program must be both feasible and effective at mitigating the hazard(s) for which the project was designed. To determine both feasibility and effectiveness, FEMA will use the information provided in the project subapplication, including the SOW and Cost Estimate sections, as well as any supporting documentation to review the engineering feasibility of the proposed project. If applicable, proposed schematic or detailed engineering drawings, or engineering designs for projects that demonstrate the design parameters and how the project will achieve the stated objectives must be included to allow FEMA to assess the effectiveness and feasibility of the proposed project. Project subapplications must address the level of protection provided by the proposed project as well as any residual risk to the structure after project implementation. Upon request, FEMA will provide technical assistance regarding engineering documentation and cost estimation (See section 6.3, Engineering Feasibility Technical Assistance). Project subapplications that do not include appropriate documentation to support the determination of feasibility and effectiveness may be removed from consideration. 3.3.3. ELIGIBILITY CRITERIA Mitigation projects also must meet the following criteria in accordance with 44 CFR § 79.6 and this Guidance: a) Be cost-effective and able to substantially reduce the risk of future damage, hardship, loss, or suffering resulting from a major disaster, consistent with 44 CFR § 79.6 (d)(5) and related guidance, and have a BCA using a FEMA-approved methodology that results in a BCR of 1.0 or greater. Only mitigation projects with a BCR of 1.0 or greater will be considered for the SRL program. b) Solve a problem independently, consistent with 44 CFR § 79.6 (d)(4). c) Conform to 44 CFR Part 9, Floodplain management and protection of wetlands, and 44 CFR Part 10, Environmental considerations, consistent with 44 CFR § 79.6 (d)(2). d) Not duplicate benefits available from another source for the same purpose or assistance that another Federal agency or program has the primary authority to provide (See section 1.6.1., Duplication of Programs). e) Not be located in a coastal barrier area as defined by the Coastal Barrier Resource Act (CBRA). Restrictions in this Act prevent the use of SRL funds in any designated CBRA area. f) Be located in a community that is participating in the NFIP and is not suspended or has withdrawn, if the community has been identified as having a SFHA (i.e., a Flood Hazard Boundary Map or FIRM has been issued to the entity). g) Meet the requirements of applicable Federal, State, Tribal, territorial, and local laws, implementing regulations, and executive orders. 3.4 SPECIAL FLOOD HAZARD AREA REQUIREMENTS The following requirements apply to any project to alter existing structures, to include mitigation reconstruction projects that are sited within an SFHA: a) When the project is implemented, all structures that will not be demolished or relocated out of the SFHA must be covered by an NFIP flood insurance policy to an amount at least equal to the project cost or to the maximum limit of coverage made available with respect to the particular property, whichever is less. b) The subapplicant (or property owner) will legally record with the county or appropriate jurisdiction’s land records a notice that includes the name of the current property owner (including book/page reference to record of current title, if readily available), a legal description of the property, and the following notice of flood insurance requirements: “This property has received Federal hazard mitigation assistance. Federal law requires that flood insurance coverage on this property must be maintained during the life of the property regardless of transfer of ownership of such property. Pursuant to 42 U.S.C. §5154a, failure to maintain flood insurance on this property may prohibit the owner from receiving Federal disaster assistance with respect to this property in the event of a flood disaster. The Property Owner is also required to maintain this property in accordance with the floodplain management criteria of 44 CFR 60.3 and City/County Ordinance.” The status of flood insurance for properties included in project subapplications sited in an SFHA are subject to FEMA review prior to award. Applicants receiving assistance for projects sited in an SFHA will ensure that the flood insurance requirements are met by requesting the participating property owner(s) sign an Acknowledgement of Conditions for Mitigation of Property in an SFHA with FEMA Grant Funds document and providing the form to FEMA prior to award. This form is available on the SRL Web site at: http://www.fema.gov/government/grant/sfha_conditions.shtm or from FEMA Regional Offices. Properties that do not meet these requirements will not be eligible to receive assistance under the SRL program. 3.5 FLOOD ELEVATION DATA Flood elevation data applicable in a particular area is referenced as base flood elevation (BFE) or advisory base flood elevation (ABFE.) In the wake of a major flood event, FEMA may issue ABFEs that more closely reflect post-storm conditions than pre-existing BFEs. As outlined in the February 5, 2006 memo, Issuance and Use of Advisory Base Flood Elevations (ABFE) in the Implementation of FEMA Assistance, Applicants requesting FEMA program funds for elevation or mitigation reconstruction in areas where ABFEs have been issued will be required to use the ABFE. ABFEs developed following Hurricanes Katrina and Rita are currently available for several areas eligible for SRL activities. Applicants should check the status of this information during project scoping. ABFE information is available on the FEMA Web site for: * Coastal counties in Mississippi (http://www.fema.gov/hazard/flood/recoverydata/katrina/katrina_ms_index.shtm) * Parishes in Louisiana (http://www.fema.gov/hazard/flood/recoverydata/katrina/katrina_la_index.shtm) During the grant application development process, Applicants are encouraged to contact the office of the State NFIP coordinator to assess the potential for FIRM updates in potential project areas. 3.6 GEOCODING REQUIREMENTS The location of all approved mitigation projects funded by the SRL program must be geocoded using standard datum. Geospatial coordinates, in the form of latitude and longitude with an accuracy of +/- 20 meters (64 feet), must be provided as follows: * Property specific information on individual properties in the project ; and * Project sites for mitigation activities such as minor, localized flood reduction. The guidance for Geocoding Mitigation Data is available online from the FEMA Information Resources Library: http://www.fema.gov/library/viewRecord.do?id=1849 and from FEMA Regional Offices. FEMA will work with Applicants to ensure this information is provided prior to award. 3.7 PROJECT MAINTENANCE FEMA is not responsible for project maintenance. FEMA will not pay for any future maintenance, such as dredging, debris removal, or mowing of open space. Subapplicants must provide a maintenance plan prior to award that identifies the maintenance tasks, budget, and entity that will perform long-term maintenance, and include a description of maintenance agreements to be in place for long-term upkeep of the proposed project. Maintenance costs must not be included in the Cost Estimate. However, anticipated future maintenance costs must be included in the BCA. 3.8 SCOPE OF WORK The Scope of Work (SOW) describes the purpose, objectives, methodology, feasibility, outcomes, timeline, milestones, resources, deliverables, and benefits of the proposed project(s). The SOW must establish the who, what, where, when, why, and how of the project and timeline. The SOW should include applicable references and supporting documentation that provides: a) The purpose of the project b) A clear, concise description of the proposed project and the means to implement and construct it (i.e., How will the project be implemented and by whom?) c) Outcomes (i.e., What are the expected accomplishments, and how will SRL properties be mitigated?) d) Flooding hazards to be addressed e) Assurance that all post-FIRM SRL structures that will be mitigated were built in compliance with State or local laws or ordinances in effect at the time of construction f) Location within the community and/or geographical extent of the project (e.g., natural, built, and socioeconomic environments) g) Evidence of project feasibility and effectiveness. Relocation projects must include engineering design parameters and copies of or references to: * Proposed schematic or detailed engineering drawings, or engineering design * Applicable building code/edition or engineering standard used * Level of protection provided by the proposed project (i.e., building code/edition) * Any residual risk to the structure from all hazards after project implementation (i.e., adequacy of the structural systems, roof coverings, building envelope, or load path continuity) * A detailed and well documented description of the alternatives considered prior to deciding upon the project h) Description of the maintenance agreements required after project completion for long-term upkeep of the proposed project i) Work schedule for all project tasks (e.g., survey, appraisal, permitting, inspection requirements, site preparation) and significant milestones throughout the performance period Documentation provided will be used by FEMA to evaluate the SOW and to determine eligibility of the proposed subapplication. Examples of documentation, where applicable to the project, include: proposed schematic or detailed engineering drawings, photographs, maps, sketches and/or drawings (e.g., appropriate sections of FISs and FIRMs) to document elements of the project and project parameters, data sources, references, citations, and/or notations. 3.9 SCOPE OF WORK CHANGES FEMA will not consider changes to the SOW between the close of the application period and the completion of the selection process. Changes may be considered during the pre-award and post-award process, and only limited changes will be approved for cost overruns. Requests for changes to the SOW after award are permissible as long as they do not change the nature of the activity, change the total project cost of the activity, adversely affect eligibility, adversely affect the feasibility and effectiveness of the project, or bring the project BCR below 1.0. Requests must be supported by adequate justification from the Applicant in order to be processed. The justification must include a description of the proposed change, a written explanation of the reason or reasons for the change, an outline of remaining funds available to support the change, and a full description of the work necessary to complete the activity. All approvals will be at FEMA’s discretion and there is no guarantee that SOW changes will be approved. 3.10 COST ESTIMATE The Cost Estimate describes all estimated costs associated with the proposed project activity and represents the subapplicant’s best estimate of the total value of the proposed activity. Sufficient detail must be provided regarding various cost item categories such as labor, materials, equipment, subcontract costs, etc., and include anticipated cash and in-kind non-Federal match. In particular, the labor cost line item must estimate anticipated donated in-kind labor from various agencies and/or other participating jurisdictions that will count toward the non-Federal match. Documentation of all cost estimates provided, including the dates of estimates, as well as the anticipated date of construction, must be provided, if applicable. 3.10.1. COST ESTIMATE REQUIREMENTS: The Cost Estimate must include the following, as applicable: * All anticipated project costs, such as: o Anticipated environmental resource remediation or historic property treatment measures o Engineering designs/specifications to include Hydrologic and Hydraulic studies/analyses required as an integral part of the project design o Other related construction/demolition/relocation costs, such as survey, permitting, site preparation, and material disposal o Other related acquisition costs, such as appraisals, legal recordation, and displacement costs for renters * Costs associated with any information dissemination activities and/or subapplicant management costs: These must be identified as a separate line item to ensure cost thresholds for these activities are not exceeded. * Pre-award costs: Indicate all costs that may be incurred prior to grant receipt but subsequent to the SRL application period opening (e.g., conducting the BCA). These must be identified as separate line items. * Potential cost under runs: Indicate any item in which a cost has been over-estimated, which could result in a cost under-run (e.g., if a quotation received from a contractor will increase if the project is not awarded for up to 1 year after the date of the receipt of initial quotation, the cost must be over-estimated and noted as such). * Anticipated Future Funding: Describe identified sources of future funding once the initial grant has been implemented and no further funding is available from the SRL program. For example, will the local government be charged with supporting the project in the future, or will the Applicant agency be responsible? * Back-up documentation: Provide back-up documentation for all costs, including the basis for each (e.g., salary and fringe benefit rates for personnel involved in the project, bids from qualified professionals, and nationally published or local cost estimating guides). * Maintenance costs: Maintenance costs are not eligible and must not be included in the Cost Estimate but they must be included in the BCA. 3.10.2. COST-ESTIMATE DOCUMENTATION Documentation provided will be used by FEMA to evaluate the Cost Estimate in order to determine eligibility. Applicants/subapplicants shall submit detailed budgets, shall avoid lump sum items, and provide references for all sources of the Cost Estimate (i.e., RS Means). Identify sources of cost items (e.g., documented local cost, bids from qualified professionals, and published national or local cost estimating guides) and provide documentation supporting each source, as appropriate (e.g., salary and fringe benefit rates for personnel involved in the project, bids from qualified professionals, and published nationally or local cost estimating guides). If another project is used as the source of the Cost Estimate, detailed documentation showing the related project scope items must be provided. The project must be identified with enough details so that material, labor, and other costs associated with the project can be identified. The cost estimating tools used must be identified and a detailed Cost Estimate must be provided. Examples of cost estimating tools may include: national cost estimating guides, an Applicant’s own cost estimating guides, an estimate based on bids, or an estimate based on awarded contracts for similar work. As an example, consider a project proposing to replace a roof on an existing museum building. The roof is a low-slope roof with internal drainage only, in an area subject to snow and rainfall that may clog the drains. The project will completely remove the existing roof, install tapered insulation and place scuppers at the exterior wall locations. The Applicant and subapplicant have identified the size of the roof, have included a roof plan and roof sections, and have calculated the materials and labor needed to complete the job. The Applicant and subapplicant awarded a similar roofing job 2 years ago that they have used to estimate the costs of this project. The Applicant and subapplicant included a copy of the costs for the other job, compared the SOW for the completed job and the proposed job, and updated the costs for the proposed project based on a national cost estimating guide and adjusted for inflation. 3.10.3. CHANGES TO COST ESTIMATES FEMA will not consider changes to the Cost Estimate between the close of the application period and the completion of the selection process. Changes may be made during the pre-award and post-award process. Revisions to the approved Cost Estimate may be considered after the selection and award process so long as the approved deliverable is not adversely impacted. In accordance with 44 CFR Part 13, adjustments may be made among cost line items in the approved budget up to a cumulative threshold of 10 percent of the total budget without seeking formal approval from FEMA. Adjustments exceeding this threshold must be approved in advance by FEMA. As with SOW changes, requests for a Cost Estimate revision must be supported by adequate justification from the Applicant and subapplicant in order to be processed. In any case, the limitations on information dissemination and subapplicant management costs still apply, and the Federal share will not be increased. 3.11 COST-EFFECTIVENESS The SRL program only funds cost-effective mitigation activities, determined by a BCA, which is required for all SRL projects. A BCA is a well-established method for quantitatively comparing the benefits and costs of mitigation projects. The end result is a BCR, which is derived from a project's total net present value of benefits (i.e., the value of benefits today versus the value of future benefits after taking inflation and rate of return into account) divided by the total project cost to include all documented project and maintenance costs. Applicants are required to submit adequate documentation to support a complete review and analysis of the project. The Applicant or subapplicant is required to perform a BCA for each property included in the project subapplication. For projects that address multiple structures (e.g., acquisition or elevation), the BCR must be calculated by totaling the anticipated or net present value of benefits for each structure to obtain the project’s total net present value of benefits and dividing the total project benefits by the total project Cost Estimate. Applicants/subapplicants are encouraged to ensure that the BCA includes all benefits associated with the proposed mitigation project. Project subapplications with a BCR lower than 1.0 will be removed from consideration. FEMA shall give priority to subapplications, up to the State’s target allocation funds, based on the FEMA-validated BCR. Applicants and subapplicants should apply the guidelines in section 4.2.25., Cost-Effectiveness, for conducting a BCA for mitigation reconstruction projects. 3.11.1. BENEFIT-COST ANALYSIS FEMA BCA procedures are governed by the OMB Circular A-94, Guidelines and Discount Rates for Benefit-Cost Analysis of Federal Programs. Accordingly, the benefits of mitigation projects are avoided damages, disruptions, losses, and casualties. Examples of common benefits include avoided or reduced: * Damages to buildings, contents or infrastructure * Economic impacts of loss of function of buildings * Displacement costs for temporary quarters * Loss of public services * Loss of net business income * Economic impacts of loss of function of infrastructure * Road or bridge closures * Loss of utility services * Deaths and injuries The OMB circular excludes indirect benefits or “multiplier” effects, for example long-term changes in regional economic activity, future employment, and tourism, which are not directly linked to the project. For further details on categories of benefits that may or may not be counted see What is a Benefit? Guidance on Benefit-Cost Analysis of Hazard Mitigation Projects located on FEMA’s Mitigation BCA Toolkit CD. This document provides standardized benefit categories, approaches, and data inputs for many common mitigation projects and can be obtained by contacting the FEMA Regional Office or the BCA helpline via phone: (866) 222-3580, via e-mail: bchelpline@dhs.gov. The cost of performing the BCA and providing supporting documentation may be included by the subapplicant as part of the project Cost Estimate or by the Applicant as part of the Grantee management costs. If the Applicant and/or subapplicant are submitting a project for which FEMA performed the BCA in the past, the Applicant and/or subapplicant must certify that they accept the BCA as their own before submitting the BCA as part of their project subapplication. Applicants/subapplicants submitting projects prepared for other FEMA mitigation programs are strongly encouraged to revisit the BCA(s) to ensure complete documentation for mitigation project benefits and costs. 3.11.2. METHODOLOGY FEMA BCA Software: Applicants and subapplicants must use a FEMA-approved methodology to conduct the BCA. Using FEMA-approved software will ensure that all calculations are prepared in accordance with OMB and FEMA's standardized methodologies and approaches and will facilitate FEMA's review process. The Flood Very Limited Data Module must not be used to demonstrate cost-effectiveness for SRL subapplications, only to screen projects for cost-effectiveness. Projects that use the Very Limited Data Module will be removed from consideration. The OMB-mandated discount rate for the SRL program is 7 percent. This discount rate is incorporated into all FEMA software programs as a default and must not be modified. Use of Non-FEMA BCA Software: Non-FEMA BCA software may be used only when the proposed methodology either addresses a non-correctable flaw in FEMA's current BCA modules or proposes a new methodology that FEMA does not currently have available and cannot accommodate through the BCA modules. Alternative BCA methodologies will be considered only if the FEMA Regional Office and FEMA headquarters approve the software prior to the Applicant's submission of the grant application to FEMA. The Applicant must provide verification that FEMA has approved the alternative BCA software or methodologies. An e-mail or letter signed and dated by FEMA is considered appropriate verification. Applications that use BCAs conducted with non-FEMA software not approved in advance by FEMA will not be considered for the SRL program. FEMA Alternative BCA Approach: FEMA has developed a simplified, alternative approach to conduct the BCA, which may be used in lieu of a traditional BCA for certain properties insured under the NFIP and included in the Pilot NFIP Repetitive Loss Properties List. The list of properties and the guidance for using this alternative approach was provided to the FEMA Regional Offices under separate cover. Information on the alternative approach is available from the Regional Offices or the BCA helpline via telephone: (866) 222-3580 or via e-mail: bchelpline@dhs.gov. 3.11.3. BENEFIT-COST DOCUMENTATION FEMA will not consider a project subapplication without a legible and complete BCA. A project subapplication that does not include appropriate documentation to support the submitted BCA will be removed from consideration. The documentation must support figures, assumptions, data derivation, and calculation methods used in the BCA. Subapplications must include full and credible documentation, which: * Clearly explains the data used in the analysis, including the source; * Explains reasons and sources of information for the use of non-default values in the BCA; * Is well organized; and * Provides references to the appropriate parts of the analysis. Use of the FEMA Data Documentation Templates is strongly encouraged. Project subapplications should include surveys, copies of elevation certificates, copies of appropriate sections of FISs and FIRMs, copies of relevant supporting information from Engineering reports, and other documentation to support figures used in their BCAs. The credibility of data sources is also extremely important. FEMA recommends obtaining information from published technical sources, in particular engineering studies, such as FIS reports and technical Web sites operated by the U.S. Geological Survey, NOAA, State agencies, and academic organizations. Documentation of any and all data sources should be included with the project subapplication. Professional licensure is strongly preferred in all cases. In addition, data from FEMA software and default values from FEMA BCA guidance located on the Mitigation BCA Toolkit CD, section 6.3, Benefit-Cost Analysis Technical Assistance, will be accepted as completely credible, when software is used correctly and documentation is provided. 3.12 ENVIRONMENTAL/HISTORIC PRESERVATION REVIEW 3.12.1. OVERVIEW Pre-Award Requirement: Applicants and subapplicants are required to provide information to support FEMA’s Environmental/Historic Preservation compliance process. Funds will NOT be awarded and the Applicant/subapplicant may NOT initiate the project until FEMA has completed its review. Authorities: As part of this review process, FEMA will assess compliance with applicable requirements including the National Environmental Policy Act, the National Historic Preservation Act (NHPA), the Endangered Species Act, and the Executive Orders on Wetlands, Floodplains, and Environmental Justice. The purpose of the Environmental/Historic Preservation compliance review is threefold: a) It helps a subapplicant understand the compliance requirements for the proposed project and how in meeting some of those requirements, the overall design and cost of the project may be affected. b) It helps FEMA determine how well the Applicant/subapplicant understands these issues and has addressed them in the project design. In the case of historically significant structures, the owner has the option to use dry floodproofing when elevation and acquisition would adversely affect the historic characteristics of the property or area. c) It helps to expedite the actual Environmental/Historic Preservation compliance process that FEMA must complete before final approval of the project. Applicants and subapplicants are strongly encouraged to request technical assistance (See section 6.5, Environmental/Historic Preservation Technical Assistance) from FEMA with their environmental and historic preservation questions by contacting the FEMA helpline by telephone: (866) 222-3580 or by e-mail: ehhelpline@dhs.gov or by contacting the applicable FEMA Regional Office, See section 1.15, Regional Contact Information. Coordination with State and Federal Agencies: It is recommended that Applicants/subapplicants initiate coordination with relevant State or Federal agencies as soon as possible in order to identify any environmental or historic preservation compliance issues associated with the proposed projects. Applicants with project subapplications selected for further review will be notified of the date by which all pre-award activities (including environmental and historic preservation activities) that are considered a FEMA responsibility must be completed. The Applicant’s and subapplicant’s cooperation in the Environmental/Historic Preservation process will ensure timely completion of this review. 3.12.2. ENVIRONMENTAL/HISTORIC PRESERVATION DOCUMENTATION a) Scope of Work: An accurate and thorough SOW provides crucial information to FEMA when undertaking an Environmental/Historic Preservation review. In addition to the information provided in the SOW, Applicants/subapplicants must answer a series of Environmental/Historic Preservation review questions in the project subapplication to provide information about potential environmental resources and/or historic properties in the project area and potential impacts to those resources. If the environmental or historic resources are identified, the Applicant/subapplicant must provide the following information, including the source and date for all information provided, in order for the project subapplication to be considered complete: * The property address and original date of construction for any buildings or structures that are 50 years or more in age. Subgrantees must consult with property owners of structures older than 50 years, regarding the potential historic significance of their property, prior to extending a formal mitigation offer of assistance under the SRL program. Subgrantees must document that such a consultation has taken place through a signed Pre-Award Consultation Agreement, available at: http://www.fema.gov/government/grant/srl/index.shtm. Property owners offered mitigation under the SRL program have the right to appeal potential insurance premium rate increases, under the historic properties appeals, if they decline offers of mitigation. * Identification of any federally listed threatened or endangered species and its designated critical habitat in the project area. * Identification of vegetation, including amount (area), type, and extent to be removed or affected. * Identification of all surface waters in the project area regardless of drainage area, size, or perceived hazard level. Information about surface waters should include dimensions, proximity of the project activity to the water, and the expected and possible impacts of the project upon surface waters, if any. * Description of any adverse effects on low income or minority populations in the project area. b) Eligibility and Completeness Review: During the Eligibility and Completeness Review, FEMA will review the completeness of the responses to the questions in the Environmental/Historic Preservation review section of the project subapplication and supporting documentation. Project subapplications and individual properties that do NOT include the required information may delay the identification of outstanding environmental or historic preservation compliance measures and may prohibit FEMA from awarding SRL grants by the deadline. c) Review and Compliance Process: FEMA will use the information provided in the SOW, Cost Estimate, and Environmental/Historic Preservation sections of the project subapplication to perform the Environmental/Historic Preservation review of the proposed projects. To facilitate the required compliance process, FEMA strongly encourages the Applicant/subapplicant to: * Work with Federal and State resource agencies to begin collecting information about potential environmental or historic preservation impacts of the proposed project and include any documentation from the resource agency in the subapplication. The Applicant/subapplicant should also determine if the mitigation projects will affect historically significant properties. * Evaluate how identified environmental or historic preservation impacts could affect the overall project feasibility or whether project alternatives or changes to the design, scope, or location of the project may be required to minimize potential adverse impacts. * Determine whether potential environmental impact mitigation measures and historic preservation measures, or changes to the project to minimize adverse effects to environmental resources or historic properties, may affect the overall project costs. For ex