Private Nonprofit

Appeal Brief Appeal Letter Appeal Analysis

Appeal Brief

Disaster	4399
Applicant	First United Methodist Church of Port St. Joe
Appeal Type	Second
PA ID#	045-12767-00
PW ID#	GMP 141595
Date Signed	2022-02-17T17:00:00

Summary Paragraph

On October 10, 2018, Hurricane Michael made landfall, resulting in extensive damage throughout Florida.  The First United Methodist Church of Port St. Joe (Applicant), a Private Nonprofit (PNP), sustained damage to its thrift store, Care Closet.  The Applicant applied for PA reimbursement for repairs for interior and exterior damages to Care Closet resulting from the declared incident.  On its PNP Facility Eligibility Evaluation Form, the Applicant stated it used Care Closet to provide low-cost clothing to community residents.  FEMA documented the project in Grants Manager Project 141595, but issued a Determination Memorandum on April 2, 2021, denying all costs related to Care Closet, concluding it was a for-profit enterprise that the Applicant used for fundraising purposes.  As such, FEMA found that the Care Closet did not provide an eligible PNP service as fundraising activities most closely resemble advocacy, and advocacy services are ineligible for Public Assistance (PA).  The Applicant submitted a first appeal, asserting it operated an eligible facility that provided non-critical essential social-type services, and therefore was eligible for PA funding.  The Florida Division of Emergency Management (Grantee) supported the appeal.  FEMA Region IV denied the first appeal, finding Care Closet was a stand-alone retail establishment rather than an eligible PNP facility providing an eligible service.  The Applicant submitted a second appeal, reiterating earlier arguments.  The Grantee supports the appeal.

Authorities and Second Appeals

• Stafford Act §§ 102(11).
• 44 C.F.R. §§ 206.221(e)(7).
• PAPPG, at 10-14, 15-16.

Headnotes

• Eligible PNPs must own or operate a facility that provides an eligible service, which is limited to certain functions.  For PNPs, facilities may be eligible for PA funding if the PNP owns or operates a facility that provides a non-critical, but essential social service and provides those services to the general public. 
  • Here, the Applicant’s facility (a retail store) does not provide an eligible service.

Conclusion

The Applicant has not demonstrated its PNP facility provided an eligible service.  Therefore, this appeal is denied.

Appeal Letter

Appeal Analysis

Background

Hurricane Michael made landfall on October 10, 2018, resulting in extensive damage throughout Florida.  The First United Methodist Church of Port St. Joe (Applicant), a Private Nonprofit (PNP) organization, sustained damage to its thrift store, Care Closet.  The Applicant applied for Public Assistance (PA) to reimburse costs to repair interior and exterior damages to Care Closet resulting from the declared incident.  On its PNP Facility Eligibility Evaluation Form, the Applicant stated it used Care Closet to provide low-cost clothing to community residents.  FEMA issued a Determination Memorandum on April 2, 2021, denying all costs related to Care Closet, concluding it was a for-profit enterprise that the Applicant used for fundraising purposes.  As such, FEMA found that the Care Closet did not provide an eligible PNP service as fundraising activities most closely resemble advocacy, and advocacy services are ineligible for PA. 

First Appeal

The Applicant submitted a first appeal, asserting it operated an eligible facility that provided non-critical essential social-type services, and therefore was eligible for PA funding.  The Applicant contended that FEMA misconstrued the Care Closet’s purpose, and argued that: (1) its Care Closet ministry exists primarily to give people in need access to clothing and that it frequently gives away clothing in disaster situations; (2) donated funds go toward supporting Care Closet and are reinvested in the community, and no funds go to the Applicant’s house of worship general fund; (3) it adopted a charity model in which clients provide nominal donations in order to empower clients, but it does not turn away clients due to lack of funds; (4) it is a 501(c)(3) nonprofit and none of its activities could be considered for-profit; (5) the Care Closet is not fundraising for the house of worship; and (6) it has provided food assistance out of this facility. To further support its claim, the Applicant provided Care Closet’s 2017 and 2018 bank statements and account activity records. The Florida Division of Emergency Management (Grantee) supported the appeal in a June 30, 2021 letter.  The FEMA Regional Administrator for Region IV denied the appeal in a decision dated August 30, 2021, finding Care Closet was a retail enterprise and was not eligible for PA funding.

Second Appeal

The Applicant submits a second appeal in which it resubmits/reincorporates its first appeal attachments, disputes FEMA’s conclusion that the Facility is a for-profit retail store and asserts the Facility’s clothing services are an eligible service.

 

Discussion

To be eligible for PA funding, an eligible PNP applicant must own or operate an eligible facility.[1]  An eligible PNP facility is one that provides educational, utility, emergency, medical, or custodial care services, or other essential governmental-type services to the general public.[2]  If a PNP operates multiple facilities, or a single facility composed of more than one building, FEMA must evaluate each building independently, even if all are located on the same grounds.[3] 

Here, the Applicant operates the Care Closet to provide used clothing at a reduced cost (or in some cases, free) to community residents.  The Care Closet is located in a stand-alone facility dedicated to this service.  However, providing clothing, whether for free or at reduced prices, is not an eligible PNP service enumerated in applicable law, regulation or FEMA policy.  For example, regulation defines “other essential governmental service” to mean museums, zoos, community centers, libraries, homeless shelters, senior citizen centers, rehabilitation facilities, shelter workshops and facilities that provide health and safety services of a governmental nature.  FEMA policy further explains services that fall within this definition. A facility offering clothing does not provide an eligible service.  Accordingly, the Applicant has not demonstrated that Care Closet is an eligible PNP facility primarily used to provide eligible PNP services.  Thus, Care Closet is ineligible for PA funding.         

 

Conclusion

The Applicant has not demonstrated its PNP facility provided an eligible service.  Therefore, this appeal is denied.

 

 

 

 

[1] Title 44 Code of Federal Regulations (44 C.F.R.) §§ 206.221(e)(f), 206.222(b), 206.223 (b) (2018); Public Assistance Program and Policy Guide, FP 104-009-2, at 11 (April 1, 2018) [hereinafter PAPPG].

[2] Robert T. Stafford Disaster Relief and Emergency Assistance (Stafford) Act § 102(11) (2018), Title 42 United States Code § 5122(11) (2018); 44 C.F.R. § 206.221(e); PAPPG at 11, 13, 15.

[3] PAPPG, at 15.