o The Subapplicant, Strong City, Kansas, submitted an HMGP application through Kansas Division of Emergency Management for funds to acquire residential structures. Funding through the Federal Individual and Family Grant Program had been awarded for the property at XXX Elm Street; and the acquisition of a mobile home located at XXX South Elm Street was determined to not be eligible. The project was not approved by Region VII, and a 1st level appeal was denied by Region VII.
• Reason for Denial
o The Duplication of Benefits (DOB) amount from previous advanced funding was not deducted from the purchase price of XXX Elm Street during the property closing transaction, and the resulting duplicated Federal funding was found to be ineligible for reimbursement.
o Region VII determined that the acquisition of a mobile home at XXX South Elm Street was ineligible for reimbursement, because the proposed acquisition did not include the land with the structure. The State requested reimbursement for costs to elevate the mobile home in lieu of the costs found ineligible for acquisition. The request for cost reimbursement associated with elevation was denied, because the costs were not part of the approved scope of work (SOW).
o 44 CFR 206.434 HMGP Eligibility; 44 CFR 206.440 Appeals
o The Applicant argued that the acquisitions were eligible under the HMGP regulations, and requested the 1st appeal denial by Region VII to be overturned, and the reimbursements to be granted.
• FEMA Findings
o The 2nd appeal decision upheld the 1st appeal, denying reimbursement of ineligible costs associated with acquisition of the two structures.
o The rationale for the decision was that the costs for acquisition for XXX Elm Street and XXX South Elm Street were ineligible, respectively, based on DOB, and costs outside of the approved SOW. In addition, the 2nd level appeal did not contain new or substantive information providing grounds for overturning the 1st level appeal denial.
o Reference(s): 44 CFR 206.434 HMGP Eligibility; 44 CFR 206.440 Appeals