o Gloucester County submitted grant closeout paperwork for a combined acquisition/elevation project. FEMA Region III requested additional documentation including NFIP insurance coverage and justification for disallowed costs including medical documentation for reasonable accommodations. Upon review of the additional data, Region III informed VDEM that nine properties had insufficient flood insurance and that costs related to changes in scope of work (SOW) for 13 properties and excessive management costs were ineligible. VDEM appealed the determination on behalf of Gloucester County.
• Reason for Denial
o Region III based the denial of the 1st appeal on a series issues, including insufficient flood insurance coverage of four properties, unapproved changes to SOW on 11 properties and management costs not commensurate with the final SOW.
o 44 CFR 206.434 Eligibility; 44 CFR 206.440 Appeals, 44 CFR 206.436(d) Application Procedures, 44 CFR Part 13.30 Changes
o The Grantee filed a second appeal stating that flood insurance levels were consistent with Regional Guidance, and provided justifications for the costs determined to be ineligible, including the management costs.
• FEMA Findings
o FEMA HQ granted the 2nd appeal, overturning Region III’s denial of the 1st appeal.
o Rationale: NFIP insurance was shown to be consistent with the Region’s guidance; modifications did not change the objective of the mitigation project and did not increase the total cost of the project, so there was no compelling reason for denying the costs associated with the modifications; and management costs were less than 10 percent of the total project cost and reasonable.
o Reference(s): 44 CFR 206.440 Appeals; 44 CFR 206.434 Eligibility; 44 CFR 206.436(d) Application Procedures, 44 CFR Part 13.30 and Hazard Mitigation Desk Reference on Changes