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Second Appeal Brief
PA ID# 071-U8M7N-00; Hosuing Authroity of New Orleans
PW ID# Multiple PWs; Duplication of Benefits
Citation: FEMA-1603-DR-LA, Housing Authority of New Orleans, Duplication of Benefits, Multiple Project Worksheets (PWs)
Duplication of Benefits, Insurance
FEMA prepared 241 Project Worksheets (PWs) for emergency work costs, including costs associated with the demolition and removal of interior materials containing mold at multiple facilities operated by the Housing Authority of New Orleans (Applicant). FEMA reduced funding for eligible work by the amount of anticipated insurance proceeds per requirements in Section 312 of the Stafford Act and FEMAs Response and Recovery Policy, 9525.3, Duplication of Benefits Non-Government Funds
. The Applicant argued in its first appeal that the Stafford Act does not explicitly authorize insurance reductions for emergency work under Section 403. The Applicant also stated that insurance monies received would not cover all losses and that any proceeds would be applied towards permanent work activities, resulting in no duplication of benefits. The Regional Administrator denied the first appeal, stating that interpretation that Section 312(a) of the Stafford Act requires FEMA to reduce insurance proceeds from eligible assistance for both emergency and permanent work. The Applicant also claims in its second appeal that FEMA has not demonstrated how it determined reduction amounts or how the insurance policy covers the type of emergency work included in the PWs.
1) Does Section 312 of the Stafford Act require FEMA to prevent duplication of benefits and reduce eligible assistance by the amount of other sources, including insurance, for work funded under Section 403?
2) Does the Applicants insurance policy cover the emergency work in question?
2) Yes. FEMA will adjust insurance reductions as necessary at project closeout.
Robert T. Stafford Disaster and Emergency Assistance Act, Sec. 312(a), Duplication of Benefits
; Response and Recovery Policy 9525.3, Duplication of Benefits Non-Government Funds