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Private Nonprofit Eligibility

Appeal Brief Appeal Letter

Appeal Brief

Disaster1604-DR-MS
ApplicantHope Academy
Appeal TypeSecond
PA ID#047-05B1D-00
PW ID#9724
Date Signed2011-03-14T04:00:00

Citation:          FEMA-1604-DR-MS; Hope Academy (Applicant)

Cross -            Private Nonprofit Eligibility
Reference:

Summary:        Hurricane Katrina caused severe damage to the Hope Academy School facility in August 2005.  The school building was eligible for replacement because 65% of the structure was damaged as outlined in Disaster Assistance Policy 9524.4, Repair vs. Replacement of a Facility under 44 CFR §206.226(f) (The 50% Rule).  FEMA prepared PW 9724 for $991,250 for the replacement costs of the facility.  Following a review, FEMA determined the PW was ineligible because Hope Academy was not an accredited education institution.  In the first appeal, the Applicant stated that the facility was eligible because Hope Academy provided educational requirements as defined by Mississippi State law.  The Regional Administrator partially approved the first appeal for $655,519 because it fit the eligibility criteria for elementary and secondary schools as defined in FEMA Public Assistance Guide (FEMA 322).  The remaining $335,731 on PW 9724 was for the Applicant’s auditorium, which was deemed ineligible for public assistance because it was established as a chapel used for religious purposes.  In the second appeal, the Applicant claims that their auditorium is actually an eligible educational facility, and included a schedule of weekly activities as evidence.

Issue:               Is the applicant’s auditorium used primarily for eligible purposes?

Finding:            Yes.  The Applicant provided sufficient additional information to prove that the auditorium is used primarily for educational purposes.

Rationale:          FEMA Policy 9521.3, Private Nonprofit Facility Eligibility, dated May 23, 2003.

Appeal Letter

March 14, 2011

 

Thomas M. “Mike” Womack

Executive Director

Mississippi Emergency Management Agency

P.O. Box 5644

Pearl, MS  39208-5644

Re:  Second Appeal – Hope Academy, PA ID 047-05B1D-00, Private Nonprofit Facility Eligibility, FEMA-1604-DR-MS, Project Worksheet (PW) 9724

Dear Mr. Womack:

This is in response to your letter dated June 16, 2010, which transmitted the referenced second appeal for Hope Academy (Applicant).  The Applicant appeals the Department of Homeland Security’s Federal Emergency Management Agency’s (FEMA) decision to deny its first appeal based on the auditorium portion of Hope Academy being ineligible for replacement costs because it was established as a chapel for religious purposes.

Hurricane Katrina caused severe damage to the Hope Academy School facility in August 2005.  The Applicant applied for assistance in October 2005 as a private nonprofit educational facility.  FEMA prepared several Project Worksheets (PWs) in May 2006 to replace the school building because it was 65% damaged and eligible for replacement as outlined in Disaster Assistance Policy 9524.4, Repair vs. Replacement of a Facility under 44 CFR §206.226(f) (The 50% Rule).  FEMA prepared PW 9724 for $991,250 to replace the facility.  Upon further review, FEMA determined PW 9724 was ineligible because Hope Academy was not an accredited educational institution. 

The Applicant submitted its first appeal February 3, 2009, requesting facility eligibility.  The Applicant demonstrated that its facility met the eligibility criteria for elementary and secondary schools.  The FEMA Regional Administrator partially approved the first appeal for $655,519 on February 22, 2009.  The remaining $335,731 on PW 9724 was not approved because it was allocated to replace the Applicant’s auditorium, which was deemed ineligible for Public Assistance funding because it was established as a chapel used for religious purposes. 

The Applicant submitted a second appeal April 21, 2010, to the State;  FEMA Region IV received a letter from the State of Mississippi’s Emergency Management Agency dated June 16, 2010.  The second appeal requests eligibility for the Applicant’s auditorium, claiming it is an eligible educational facility, and includes a schedule of weekly activities as evidence.  The Applicant further states that the auditorium was first constructed in 1990 as a chapel, but when Hope Academy opened in 1995 the auditorium was primarily used for educational activities in support of the school up until the time of the disaster. 

The schedule for the Applicant’s auditorium shows educational classes five days a week, from 8:00am to 2:00pm or 3:00pm Monday through Friday.  In addition, before and after school care takes place in the facility from 6:30am to 8:00am and 3:00pm to 6:30pm.  Educational activities take place 11.5 hours per day, five days a week, for a total of 57.5 hours per week.  Religious services are held in the auditorium twice a week, on Wednesday evenings for 1 hour and on Sunday mornings for 1.5 hours, for a total of 2.5 hours per week.   

FEMA Disaster Assistance Policy 9521.3, Private Nonprofit Facility Eligibility, dated May 23, 2003, states that, “When space is not dedicated to specific activities, or used for eligible and ineligible purposes, primary use is determined by the amount of time used for eligible services.”  The Applicant’s facility is used for 57.5 hours per week for eligible purposes as an eligible educational facility, and 2.5 hours per week for religious purposes, which are not eligible for FEMA Public Assistance funding.

I have reviewed all information the Applicant submitted with the appeal and determined that the auditorium is eligible for assistance.  Accordingly, I am granting the second appeal for the replacement costs of the entire facility, including $335,731 for the auditorium. 

Please inform the Applicant of my decision.  This determination constitutes the final decision on this matter as set forth in 44 CFR §206.206, Appeals.

Sincerely,

/s/

Deborah Ingram

Assistant Administrator

Recovery Directorate

cc:     Major P. May

Regional Administrator

FEMA Region IV