o The Subapplicant, Halstead, Kansas, submitted an HMGP application through Kansas Division of Emergency Management as Applicant for funds to acquire/relocate and elevate eighteen residential structures. The project was approved, except that FEMA withdrew funding of a portion of the approved funding specific to a relocation and elevation that included addition of a basement. A request by the Applicant for reimbursement of the disapproved expenses was denied by FEMA Region VII. The Applicant appealed and the Region denied the appeal.
• Reason for Denial
o Construction of the basement as a component of the relocation and elevation did not comply with the provisions of the Harvey County floodplain management ordinance nor the minimum National Flood Insurance Program (NFIP) standards under 44 CFR §206.407, and therefore the relocation and elevation were not eligible.
o 44 CFR §206.407 NFIP Minimum Standards; 44 CFR 13.22 Allowable Costs; Harvey County Floodplain Management Ordinance
o The Applicant argued that the elevation with basement addition was eligible under the NFIP and HMGP regulations, and requested that the 1st appeal denial be overturned, and the request for reimbursement be granted.
• FEMA Findings
o The 2nd appeal decision partially upheld the 1st appeal denial, denying funding of the ineligible basement construction, but conditionally approved the request for reimbursement of “legitimate” expenses for relocating and elevating the structure. The partial approval required certification from the State and Harvey County that the basement of the structure has been filled with appropriate material.
o The rationale for the decision was that the relocation and elevation were eligible activities under the HMGP, but the new basement with the floor “well” below the base flood elevation jeopardized the structure, posed a safety hazard under flood conditions, and therefore was not eligible for HMGP reimbursement.
o Reference(s): 44 CFR §206.407 NFIP Minimum Standards; 44 CFR 13.22 Allowable Costs; Harvey County Floodplain Management Ordinance