Immediate Threat

Appeal Brief

Summary Paragraph

The coronavirus (COVID-19) pandemic resulted in a major disaster declaration for the State of Washington, with an incident period of January 20, 2020, to May 11, 2023. The Applicant requested Public Assistance (PA) funding for non-congregate sheltering (NCS). FEMA created Grants Manager Project 692720 for $34,978,468.94 in claimed costs. FEMA issued a Request for Information seeking an explanation on how certain costs were related to COVID-19. The Applicant explained that these costs were part of its Care Connect program, which was established to help socially vulnerable community members who tested positive for COVID-19 successfully isolate at home. FEMA issued a Determination Memorandum denying $500,230.24 for costs related to financial assistance paid to individuals and households. FEMA found the Applicant did not demonstrate that it had the legal responsibility to provide financial assistance and that it did not demonstrate the claimed costs were associated with eligible emergency protective measures. The Applicant appealed, stating the costs were compliant with federal and state laws and policies and asserting that it had the legal responsibility for these items. The FEMA Region 10 Regional Administrator denied the appeal. FEMA found the Applicant did not demonstrate the claimed costs were eligible as NCS or as emergency work resulting from the declared incident. The Applicant appealed, reiterating its first appeal assertions. 

Authorities

• Stafford Act § 403(a)(3).
• 44 C.F.R. §§ 206.223 (a)(1), 206.225(a)(1) and (a)(3)(i).
• PAPPG, at 19, 57, 66.
• FEMA Fact Sheet, Non-Congregate Sheltering; Non-Congregate Sheltering FAQ, at 1-2; Memorandum on Update to Non-Congregate Sheltering Delegation of Authority Public Assistance Program and Policy Guide Waiver, at 2.
• New York City Housing Authority, FEMA-4480-DR-NY, at 3.

Headnotes

• Under the COVID-19 declarations, FEMA will consider requests for reimbursement of NCS for health and medical-related needs, such as isolation and quarantine resulting from the public health emergency.
  • The direct payment of funds to individuals and households does not support an eligible NCS operation and is ineligible for PA funding.

Conclusion

The Applicant’s claimed costs for direct payments provided to individuals and households are not associated with eligible NCS.

Appeal Letter

Appeal Analysis

Background

The coronavirus (COVID-19) pandemic resulted in a major disaster declaration on March 22, 2020, for the State of Washington, with an incident period of January 20, 2020, to May 11, 2023. The Washington State Department of Health (Applicant) requested Public Assistance (PA) funding for emergency Non-Congregate Sheltering (NCS) conducted from June 24, 2020, to July 1, 2022. FEMA created Grants Manager Project 692720 for $34,978,468.94 in claimed costs.

FEMA issued a Request for Information on July 18, 2023, seeking an explanation on how certain claimed NCS costs were related to COVID-19. The Applicant explained that these costs were part of its Care Connect program, which was established to help socially vulnerable community members who tested positive for COVID-19 to successfully isolate at home. The Applicant stated the Care Connect program provided mortgage, rent, or utility bill assistance up to a maximum of $1,500.00 per household. The Applicant claimed its Care Connect program was cost-effective, alleviated pressure on the healthcare system, effectively utilized NCS when necessary, and followed state law and federal executive orders to save lives.[1]

FEMA issued a Determination Memorandum on January 4, 2024, denying $500,230.24 in claimed costs related to financial assistance paid to individuals and households.[2] FEMA found the Applicant did not demonstrate that it had the legal responsibility to provide financial assistance to individuals and households, and further did not demonstrate that these costs were associated with eligible emergency protective measures.[3]

First Appeal

The Applicant appealed the $500,230.24 in costs related to financial assistance for individuals and households in a letter on March 14, 2024. The Applicant claimed the costs were compliant with federal and state laws and policies. The Applicant asserted that, during emergencies involving the protection and safety of the public from communicable diseases, it had the legal responsibility for paying rent, utilities, and communication services. The Applicant referenced Washington Administrative Code (WAC) 246-100-036, which it asserted granted the responsibility for enforcing isolation and quarantine measures. The Applicant also referenced WAC 246-100-045, which the Applicant said mandated that such measures be implemented using the least restrictive means necessary to prevent the spread of a communicable or potentially communicable disease. The Applicant stated these measures may include, but are not limited to, confinement to private residences or other public or private premises. 

Additionally, the Applicant argued that its costs were associated with eligible emergency protective measures. It stated that covering these expenses allowed financially vulnerable individuals to isolate and quarantine, rather than go to work or earn money to cover these costs, which directly contributed to protecting public health. The Applicant also claimed it undertook the Care Connect program to provide an equitable response to COVID-19 and to comply with FEMA policy 104-21-0004Coronavirus (COVID-19) Pandemic: Medical Care Eligible for Public Assistance (Interim) (Version 2), which requires applicants to “…focus the use of FEMA funding on the highest-risk communities and underserved populations…”.[4] The State of Washington Military Department, Emergency Management Division (Recipient) transmitted the appeal to FEMA with a letter in support of the Applicant on May 9, 2024.

The FEMA Region 10 Regional Administrator denied the appeal on July 19, 2024. FEMA found the Applicant did not demonstrate the claimed costs of $500,230.24 for direct payments to individuals and households was NCS or eligible emergency work resulting from the declared incident.

Second Appeal

The Applicant appealed FEMA’s denial of $500,230.24 on September 17, 2024. The Applicant reiterates its first appeal assertions that it has the legal responsibility for the claimed costs and that these costs were emergency protective measures taken to limit the spread of COVID-19. The Applicant further explains that these individuals tested positive for COVID-19, did not require hospitalization, and had specific targeted social vulnerabilities or co-morbidities requiring a higher level of monitoring. It argues that covering these expenses allowed the individuals to stay home and quarantine, which they otherwise would not have been able to do. The Recipient transmitted the appeal to FEMA on November 15, 2024, with a letter expressing its support.

Discussion

FEMA is authorized to provide emergency protective measures to save lives and protect public health and safety.^[5]For emergency protective measures to be eligible, work must be required due to an immediate threat resulting from the declared incident.^[6]Generally, FEMA does not provide PA funding for emergency sheltering in non-congregate environments, which are locations where each individual or household has living space that offers some level of privacy (e.g., hotels, motels, casinos, dormitories, retreat camps, etc.).[7]In limited circumstances, FEMA may reimburse costs related to NCS.^[8] Under the COVID-19 declarations, FEMA will consider requests for reimbursement of NCS for health and medical-related needs, such as isolation and quarantine resulting from the public health emergency.^[9] Any approval of funding is limited to that which is reasonable and necessary to address the public health needs of the event.^[10]

The Applicant created the Care Connect program, which provided individuals and households with funding for mortgage, rent, utility, and cell phone payments. The Applicant asserts that this allowed individuals to isolate and quarantine at home which was necessary to limit the spread of COVID-19 and included it in the NCS claim. However, individuals sheltering at home is not a form of NCS and subsidies for rent, mortgage, utilities, and phone bills are not eligible costs under PA policy.[11] Although an eligible jurisdiction may elect to implement any number of measures that it determines to be in the best interest of the community during a public health emergency, not all costs incurred during an emergency are reimbursable under the PA program. Here, the direct payment of funds to individuals and households are ineligible for PA funding.

Conclusion

The Applicant’s claimed costs for direct payments provided to individuals and households are not associated with eligible NCS.