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Second Appeal Letter
PA ID# 037-90654-00; Los Angeles Brotherhood Crusade
DSR ID# DSR 08962; Los Angeles Brotherhood Crusade
August 13, 2009
Governors Authorized Representative
California Emergency Management Agency
State of California
3650 Schriever Avenue
Mather, CA 95655
Re: Second AppealLos Angeles Brotherhood Crusade, PA ID 037-90654-00, African American Unity Center
, FEMA-1008-DR-CA, Damage Survey Report (DSR) 08962
Dear Mr. McCarton:
This letter is in response to your letter dated October 6, 2008, which transmitted the referenced second appeal on behalf of the Los Angeles Brotherhood Crusade (Applicant). The Applicant is requesting that the Department of Homeland Securitys Federal Emergency Management Agency (FEMA) reinstate funding for the African American Unity Center (AAUC).Following the Northridge earthquake on January 17, 1994, FEMA approved Damage Survey Report (DSR) 92020 to provide $5,252,167 in funding for repair and mitigation of the AAUC. FEMA later designated the DSR an improved project to allow for an alternate mitigation scheme. FEMA granted the Applicant a time extension to November 7, 2003, to complete the project. By early 2006, the Applicant had drawn down approximately $4,500,000 toward the improved scope of work, but the FEMA eligible scope of work had not begun. FEMA granted the Applicant two interim time extensions. The last interim extension was until May 31, 2006, and was conditioned upon the Applicant providing a detailed construction timeline and evidence of the projects financial viability. FEMA advised the Applicant that additional time extensions would require evidence that funds were available to complete the FEMA scope of work. In August 2006, the Applicant terminated its contract with its general contractor due to mishandling of funds. On
September 20, 2007, FEMA determined that the Applicant did not meet the conditions of the interim time extension and concluded that the project was not financially viable. FEMA
de-obligated all funding for the project under DSR 08962.
The Applicant submitted its first appeal to the Governors Office of Emergency Services (OES) on December 13, 2007. The Applicant requested reinstatement of FEMA funding and asserted that steps were being taken to secure additional funding, including: seeking $530,195 in damages from its contractor; pursuing a $1,500,000 grant from Senator Feinsteins office; submitting a $1,400,000 grant proposal to the City of Los Angeles; and requesting $1,000,000 from the State of California Historical Fund. In its transmittal, OES did not support the Applicants appeal, but
requested that the Applicant be reimbursed for costs incurred up to the latest approved completion date. The Deputy Regional Administrator denied the appeal in a letter dated May 8, 2008, stating that there was no evidence that the project was financially viable. The Regional Administrator also cited 44 CFR §206.204(d)(2), Requests for time extensions
, which states that if the project is not completed, no Federal funding will be provided.
The Applicant submitted its second appeal to OES on August 6, 2008. The Applicant claims that project delays were due to extenuating circumstances beyond its control and compounded by contractor impropriety and litigation. The Applicant stated that it has raised $200,000 and is continuing to pursue various other funding sources for a total of $7,500,000. The Applicant provided a cost estimate of $6,000,000 to complete the remainder of work and a construction schedule reflecting project completion on December 30, 2011. OES supports the Applicants second appeal.
Over fifteen years have passed since the disaster event and over five years have passed since the last approved extension date to complete the project. The Applicant has pursued multiple sources of funding, but only $200,000 has been secured towards project completion. Additionally, the Applicant has not begun the FEMA eligible scope of work. The Applicant has not sufficiently demonstrated that the project is financially viable or that the FEMA eligible scope of work will be completed to justify an additional time extension and reinstatement of funding. Pursuant to 44 CFR §206.204(d)(2), if a request for time extension is denied, no Federal funding will be provided for a project if the work is not completed. However, pursuant to 44 CFR §206.204(d)(2), if the Applicant completes the project, the applicant may be reimbursed for eligible project costs incurred up to the last FEMA-approved project completion date, November 7, 2003.
I have reviewed the information submitted with the appeal and have determined that the Deputy Regional Administrators decision in the first appeal is consistent with Public Assistance regulations and policy. Accordingly, I am denying the second appeal.
Please inform the Applicant of my decision. This determination constitutes the final decision on this matter pursuant to 44 CFR §206.206, Appeals
Disaster Assistance Directorate
cc: Nancy Ward
FEMA Region IX