Request for Public Assistance –Private Nonprofit

Appeal Brief

Appeal Letter

Appeal Analysis

Background

Severe storms, straight-line winds, and tornadoes impacted various areas of Tennessee during the incident period of December 10-11, 2021.^[1] The Dresden Cumberland Presbyterian Church (Applicant) submitted a Request for Public Assistance (RPA) as a Private Nonprofit (PNP), seeking Public Assistance (PA) funding for repair of its church (Facility), which was damaged during the disaster. FEMA found conflicting information regarding the address of the Facility, along with information that indicated the Facility was owned by the Cumberland Presbyterian Church (CPC), rather than the Applicant.

FEMA sent the Applicant a Request for Information (RFI) asking for: (1) the name, location, and primary purpose of the Facility; (2) a copy of articles of incorporation or bylaws; and (3) proof of ownership/operation of the Facility. The Applicant responded to FEMA’s RFI and clarified the address of the Facility and provided its articles of incorporation and bylaws. However, FEMA found that neither of the addresses listed in these documents matched the address of the Facility as provided by the Applicant in its RFI response.

On August 3, 2022, FEMA issued a Determination Memorandum denying the Applicant’s RPA. FEMA acknowledged that worship services were conducted at the Facility and determined the Applicant demonstrated it is a PNP based on its tax-exempt status, but stated that the Applicant had not demonstrated that it owned or operated the Facility and provided no documentation (i.e., lease, deed, etc.) to indicate that it was legally responsible to repair the Facility. In addition, the Applicant had not applied for a Small Business Administration (SBA) loan.  

First Appeal

In a letter dated September 27, 2022, the Applicant appealed FEMA’s denial of its RPA^[2] and provided documentation that included: (1) A copy of its SBA loan approval letter; (2) a Certificate of Survey that recorded the Applicant as the owner of the Facility;^[3] and, (3) a letter from CPC, which stated that the Applicant had operated the Facility since its inception in 1889 and was responsible for all expenses and repairs.^[4] The Tennessee Emergency Management Agency (Recipient) supported the appeal in its October 4, 2022 transmittal to FEMA.

The FEMA Region 4 Regional Administrator denied the appeal on February 9, 2023, finding that while the SBA loan requirement had been met, the Applicant had not established that it legally owned or operated the Facility at the time of the disaster. FEMA acknowledged the land survey and letter from CPC but noted other contradictory documentation, such as an insurance policy listing CPC as the insured entity for the Facility, and a 2022 state property record card listing CPC as the property owner.

Second Appeal

On March 28, 2023, the Applicant submitted its second appeal, providing additional documentation, including: (1) a letter from CPC stating that the Applicant is a connectional church, and as such, is legally responsible for all expenses related to the repair and upkeep of the Facility;^[5] (2) a letter from an insurance carrier stating the Applicant has had property coverage for the Facility since 2012;^[6] (3) the property insurance declarations page for the Facility, in the Applicant’s name, with a policy period of May 20, 2021, to May 20, 2024;^[7] and, (4) the Applicant’s 2021 financial statement showing income from offerings, and operational expenditures, such as pulpit supplies, personnel costs for a church pianist, church utilities, church repairs and maintenance, and church insurance premiums.^[8] The Applicant states that it has been operating as a PNP religious institution under the connectional legal authority of CPC since 1889, and claims that the letter from CPC authenticates the legal operation of the church, as well as the Applicant’s responsibility for repair of the Facility. The Recipient transmitted the Applicant’s appeal on March 28, 2023, expressing its support.

Discussion

FEMA may provide funding for the repair, restoration, reconstruction, or replacement of eligible PNP facilities damaged or destroyed by a disaster.^[9] To be eligible for PA funding, a PNP applicant must own or operate an eligible PNP facility.^[10] An eligible PNP facility includes facilities that provide noncritical, but essential social services to the general public, such as a house of worship (HOW).^[11] To be eligible for PA, an item of work must also be the legal responsibility of the applicant requesting assistance.[12] To determine legal responsibility for permanent work, FEMA evaluates whether the Applicant claiming the costs had legal responsibility for disaster-related restoration of the facility at the time of the incident based on ownership and the terms of any written agreements.[13] Ownership of a facility is usually sufficient to establish the applicant’s legal responsibility to restore the facility, provided it is not under construction by a contractor or leased to another entity at the time of the incident.[14]

Here, the Applicant is a PNP, and the Facility is an eligible PNP facility that provides eligible noncritical, but essential social services.[15] The Applicant’s documentation submitted on second appeal demonstrates ownership of and legal responsibility for the Facility. The Certificate of Survey outlines the property boundaries of the lot where the Facility is located, as shown on the tax map in the County Property Accessor’s Office.[16] The survey includes the specific deed book and page number located in the County Register’s Office and states the lot is the property of the Applicant.^[17] CPC confirms that the Applicant has been operating the Facility since its inception in 1889 and is legally responsible for all expenses and repairs. The Applicant’s 2021 financial statement shows income and expenditures associated with operating the Facility, including repairs and maintenance. The Applicant carries property insurance for the Facility, which was in effect at the time of the disaster. The statements from CPC, supported by the insurance documents, deed, and financial statement, demonstrate that the Applicant owns and operates the eligible PNP Facility. Accordingly, the Applicant is legally responsible for the repairs.

Conclusion

The Applicant owns and operates the eligible PNP Facility. Additionally, the Applicant is legally responsible for the repairs. Therefore, this appeal is granted.