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Section 1215 | Management Costs

On October 5, 2018, the President signed the Disaster Recovery Reform Act of 2018 (DRRA) into law as part of the Federal Aviation Administration Reauthorization Act of 2018.

The Section 1215 of the DRRA changed Section 324 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act, as Amended (Stafford Act). As a result of the amendment to Section 324, Title 44 Code of Federal Regulations (CFR) Part 207 is no longer effective.

SizePublication Date
Icon for file of type application/pdfSection 1215 | Public Assistance Management Costs Interim Policy (FP 104-11-2)

The PA Management Costs Interim Policy implements Section 1215 of the DRRA and provides greater flexibility to state, tribal, territorial and local governments to manage the PA Program. FEMA will evaluate this Interim Policy as it is implemented and will update the management costs policy in the Public Assistance Program and Policy Guide.

0.52MNovember 14, 2018
Icon for file of type application/pdfPublic Assistance Management Costs – Clarification to Retroactive Implementation Options

The Interim Policy stated that if direct administrative costs (DAC) had not yet been obligated, Recipients and Subrecipients would receive management cost funding under the new Interim Policy. In order to accommodate situations where direct administrative costs may have been requested but not yet obligated and to provide maximum flexibility, FEMA will allow Recipients and Subrecipients that do not have DAC obligated and had not chosen to utilize the DAC Pilot a choice for receiving management cost funding for emergencies and major disasters declared from August 1, 2017 to October 4, 2018.  For such declarations, FEMA will allow any Recipient or Subrecipient to select whether to receive management cost contributions pursuant to the interim policy or receive such funding under management cost and direct administrative cost policies in effect at the time the emergency or major disaster was declared. FEMA will not, however, allow Recipients or Subrecipients to choose to participate in the DAC pilot after October 5, 2018. In cases where FEMA does not receive written notification by February 12, 2019, and the Recipient or Subrecipient did not have DAC obligated or previously opt into the DAC pilot, the respective Recipient or Subrecipient will receive management cost contributions pursuant to the interim policy.

0.17MDecember 19, 2018
Icon for file of type application/pdfFact Sheet | Public Assistance Management Costs
0.28MNovember 23, 2018
Icon for file of type application/pdfSection 1215 | Hazard Mitigation Grant Program Management Costs Interim Policy (FP 104-11-1)

Section 324 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act, as
amended (Stafford Act) authorizes the Federal Emergency Management Agency (FEMA) to
provide funding under the Hazard Mitigation Grant Program (HMGP) for management costs
incurred in the administration of HMGP. The Disaster Recovery Reform Act (DRRA) amends
Section 324 of the Stafford Act and requires FEMA to provide HMGP funding for management
costs at the following percentage rates: “A grantee [recipient] under section 404 may be
reimbursed not more than 15 percent of the total amount of the grant award under such
section of which not more than 10 percent may be used by the grantee and 5 percent by the
subgrantee [subrecipient] for such costs.”

0.23MNovember 14, 2018