The amount of HMGP funding available to the applicant is based on the estimated total federal assistance, subject to the sliding scale formula that FEMA provides for disaster recovery for each disaster declaration. [289]
FEMA will determine the assistance it will make available for HMGP by a “lock-in,” which will act as a ceiling for assistance available to a recipient, including its subrecipients. The level of HMGP assistance available for a given disaster is based on a percentage of the estimated total federal assistance under the Robert T. Stafford Disaster Relief and Emergency Assistance Act (Stafford Act),[290] excluding administrative costs for each major disaster declaration.[291]
FEMA will provide an initial 30-day estimate within 35 calendar days of the major disaster declaration or soon thereafter, in conjunction with calculation of the preliminary amount(s) for management costs. FEMA will provide a revised estimate approximately six months after the major disaster declaration.
FEMA will establish the HMGP assistance ceiling for each disaster 12 months after the major disaster declaration. This amount, also known as the lock-in value for HMGP, is the maximum FEMA can obligate for eligible HMGP activities. The Office of the Chief Financial Officer (OCFO) will continue to provide HMGP estimates before 12 months; however, these estimates will not represent a minimum or floor amount.
Prior to 12 months, total obligations are limited to no more than 75% of any current estimate. Any obligations above 75% of the current estimate prior to 12 months will require concurrence from the FEMA regional administrator (or federal coordination officer with disaster recovery manager authority) and the FEMA OCFO.
In circumstances when a major disaster declaration has resulted in significant fluctuations of projected or actual disaster costs, FEMA, at the request of the recipient, may conduct an additional review after the 12-month lock-in. The recipient must justify in writing to the FEMA regional administrator any requests to change the amount of the lock-in or perform subsequent reviews. The regional administrator will recommend to the OCFO whether to approve the change.
Changes to the lock-in will not be made without the approval of the OCFO. The OCFO may change the amount of the lock-in if they determine that the projections or actuals used to determine the lock-in were inaccurate enough that the change to the lock-in would be material, or for other reasons in their discretion that may reasonably warrant such changes. The OCFO will not make such changes without consultation with the recipient and the regional administrator.
FEMA cannot reopen the application period after it has closed even if there is an increase to the ceiling amount. Any assistance for mitigation activities approved and obligated before the 12-month lock-in will not be de-obligated when the lock-in is less than the previous estimate. Figure 7 outlines the HMGP ceiling review process. For more information on extension requests, refer to Part 6.
