Private Nonprofit
Appeal Brief
| Disaster | 4615 |
| Applicant | Kingsway Jewish Center |
| Appeal Type | Second |
| PA ID# | 047-01C76-00 |
| PW ID# | GMP 665876 |
| Date Signed | 2023-09-08T16:00:00 |
Discussion: In September 2021, Hurricane Ida caused extensive damage throughout New York State. The Kingsway Jewish Center (Applicant), a Private Nonprofit organization (PNP), owns and operates the Kingsway Jewish Center (Facility), a house of worship (HOW) that provides a noncritical essential social service, and requested $30,760.29 in PA funding to repair damage to the Facility and for hazard mitigation (HM). FEMA denied the request because the Applicant failed to demonstrate that it had timely applied for a Small Business Administration (SBA) disaster loan, a prerequisite to eligibility for PA funding for permanent work, and because eligibility for HM was tied to and dependent upon eligible permanent work, HM funding was also ineligible. The Applicant appealed, stating it was not aware of the SBA requirement for FEMA assistance and provided a signed SBA application dated October 13, 2022. The New York State Division of Homeland Security and Emergency Services (Recipient) supported the appeal. FEMA denied the appeal, noting the deadline to apply for SBA loans was January 4, 2022, the Applicant did not apply for the SBA loan in a timely manner and was therefore not eligible for PA funding for permanent work. On second appeal, the Applicant reiterates first appeal arguments. The Recipient supports the second appeal and argues that while FEMA policy requires an SBA loan application to be on time, federal regulations do not.
Authorities and Second Appeals
- Stafford Act § 406.
- 44 C.F.R. §§ 206.220, 206.226(c).
- PAPPG at 46, 51, 57 - 58.
- N. Miami Beach Med. Ctr., FEMA-4337-DR-FL, at 3-4.
Headnotes
- For PNPs with facilities that provide noncritical, essential social services, such as an HOW, FEMA only provides PA funding for eligible permanent work costs that an SBA loan will not cover for those facilities. To receive assistance for the repair, restoration, reconstruction, or replacement of damaged facilities, PNP applicants that operate such facilities must apply for SBA disaster loans. If the PNP misses the SBA application deadline, including any SBA approved extension, the work is ineligible for FEMA PA funding.
- The Applicant is a PNP with a facility that provides essential but noncritical services. The Applicant did not apply for an SBA disaster loan until October 13, 2022, approximately nine months after the January 4, 2022 deadline. The SBA did not extend the deadline. The SBA loan application requirement was not satisfied. Therefore, the permanent work is ineligible for FEMA PA funding.
Conclusion
FEMA finds that because the Applicant missed the deadline to apply for a disaster loan from the SBA, the permanent work is ineligible for PA. Therefore, the appeal is denied.
Appeal Letter
SENT VIA EMAIL
Rayana Gonzales Jeffrey Grodko
Deputy Commissioner for Recovery Programs President
Alternate Governor’s Authorized Representative Kingsway Jewish Center
New York State Division of Homeland Security and 2810 Nostrand Avenue
Emergency Services Brooklyn, NY 11229
1220 Washington Avenue, Building 7A, Floor 4
Albany, New York 12242
Re: Second Appeal – Kingsway Jewish Center, PA ID: 047-01C76-00, FEMA-4615-DR-NY, Grants Manager Project 665876 – Private Nonprofit
Dear Rayana Gonzales and Jeffrey Grodko:
This is in response to a letter from the New York State Division of Homeland Security and Emergency Services (Recipient) dated June 27, 2023, which transmitted the referenced second appeal on behalf of Kingsway Jewish Center (Applicant). The Applicant is appealing the U.S. Department of Homeland Security’s Federal Emergency Management Agency’s (FEMA) denial of $30,760.29 in Public Assistance (PA) funding.
As explained in the enclosed analysis, I have determined that because the Applicant missed the deadline to apply for a disaster loan from the Small Business Administration (SBA), the permanent work is ineligible for PA. Therefore, the appeal is denied.
Please inform the Applicant of my decision. This determination is the final decision on this matter pursuant to 44 C.F.R. § 206.206, Appeals.
Sincerely,
/S/
Robert Pesapane
Director
Public Assistance Division
Enclosure
cc: David Warrington
Regional Administrator
FEMA Region 2
Appeal Analysis
Background
In September 2021, Hurricane Ida caused extensive damage throughout New York State. The Kingsway Jewish Center (Applicant), a Private Nonprofit organization (PNP), owns and operates the Kingsway Jewish Center (Facility), a house of worship (HOW) that provides a noncritical essential social service. The Applicant requested $30,760.29 in Public Assistance (PA) funding to repair damage to the Facility and for hazard mitigation (HM). However, FEMA issued a Determination Memorandum on August 12, 2022, finding that the Applicant failed to demonstrate that it had timely applied for a Small Business Administration (SBA) disaster loan, a prerequisite to its eligibility for PA funding for permanent work.[1] Therefore, FEMA found the permanent work was ineligible for PA and because HM was tied to and dependent upon eligible permanent work, the requested HM funding was similarly ineligible.
The Applicant appealed for $30,760.29 on October 14, 2022, stating it was not aware of the SBA requirement for FEMA assistance. The Applicant provided a signed SBA application dated October 13, 2022. The New York State Division of Homeland Security and Emergency Services (Recipient) supported the appeal on December 6, 2022.
The FEMA Region 2 Regional Administrator denied the appeal on February 28, 2023. FEMA noted the SBA Fact Sheet for the disaster established that the deadline to apply for SBA loans was January 4, 2022, and that the Applicant did not apply until October 13, 2022.[2] FEMA determined the Applicant did not apply for the SBA loan in a timely manner and was therefore not eligible for PA funding for permanent work.
Second Appeal
The Applicant’s May 2, 2023 second appeal reiterates first appeal arguments. The Recipient’s June 27, 2023 transmittal supports the second appeal and argues that while FEMA policy requires an SBA loan application to be on time, federal regulations do not.
FEMA may provide repair, restoration, reconstruction, or replacement of eligible PNP facilities damaged or destroyed by a disaster.[3] Permanent restoration of damaged facilities, including cost-effective hazard mitigation to protect the facilities from future damage is known as permanent work.[4] For PNPs with facilities that provide noncritical, essential social services, such as an HOW, FEMA only provides PA funding for eligible permanent work costs that an SBA loan will not cover for those facilities.[5] Therefore, noncritical PNPs must apply for a disaster loan from the SBA and receive a determination for permanent work on facilities that provide noncritical services.[6] If the PNP misses the SBA application deadline, including any SBA approved extension, the permanent work is ineligible for FEMA PA funding.[7]
The Applicant did not apply for an SBA disaster loan until October 13, 2022, approximately nine months after the January 4, 2022 deadline. The SBA did not extend the deadline. Therefore, the SBA loan application requirement was not satisfied. Notably, the Applicant does not dispute this. Rather, the Applicant relies on lack of knowledge concerning this requirement to support its request for PA. However, lack of knowledge and understanding of PA requirements does not justify submitting the SBA loan application after the required deadline.[8]
The Recipient asserts FEMA’s denial is erroneous by arguing that while FEMA policy requires the SBA loan application to be on time, federal regulations do not have the same requirement. However, federal regulation states that assistance provided under the Stafford Act must also conform to, among other things, Agency policy.[9] Pursuant to FEMA policy, because the Applicant did not apply for the SBA loan in a timely manner, PA funding is not eligible for permanent work. Therefore, both the requested repair work and HM, which constitute permanent work per the FEMA policy stated above, are not eligible for PA.
Conclusion
FEMA finds that because the Applicant missed the deadline to apply for a disaster loan from the SBA, the permanent work is ineligible for PA. Therefore, the appeal is denied.
[1] The Applicant received the Determination Memorandum on August 17, 2022.
[2] Small Business Administration, Fact Sheet - Disaster Loans, NY Declaration 17147 & 17148 (Dec. 6, 2021) (uploaded in Grants Manager as “NY 17147 Fact Sheet.pdf”).
[3] Robert T. Stafford Disaster Relief and Emergency Assistance (Stafford) Act § 406(a)(1)(B), Title 42, United States Code (U.S.C.) § 5172(a)(1)(B) (2018).
[4] Public Assistance Program and Policy Guide, FP 104-009-2, at 51 (June 1, 2020) [hereinafter PAPPG].
[5] Id. at 46, 57.
[6] Stafford Act § 406(a)(3)(A)(ii), 42 U. S. C. § 5172(a)(3)(A)(ii); Title 44, Code of Federal Regulations (CFR) § 206.226(c)(2) (2020); PAPPG, at 57.
[7] PAPPG, at 58.
[8] See FEMA Second Appeal Analysis, N. Miami Beach Med. Ctr., FEMA-4337-DR-FL, at 3-4 (Sept. 16, 2020) (finding that the Applicant’s assertions of misinformation, misdirection, and lack of knowledge and understanding of the Public Assistance program did not constitute extenuating circumstances to justify submitting the Request for Public Assistance after the required deadline).
[9] 44 C.F.R § 206.220.