D.1. FMA: Eligibility

FMA is a competitive program. For specific eligibility criteria to receive assistance under FMA, refer to the “Flood Mitigation Assistance Grant” webpage and the FMA NOFO for the year funding is sought. In addition, general eligibility and requirements are detailed in Part 4.

Properties included in a project subapplication for FMA must be insured by the National Flood Insurance Program (NFIP) prior to the opening of the application period and be maintained for the life of the structure. ^[333] For projects where structures remain (elevation, reconstruction, floodproofing, etc.) flood insurance must be maintained through the completion date of the mitigation activity and for the life of the structure. For projects where no structures remain (acquisition and demolition, relocation, etc.), flood insurance must be maintained until the property is purchased by the subrecipient; the structure must be demolished and removed within 90 days of settlement.^[334] Absence of flood insurance where required may be grounds for ineligibility of the project and denial of reimbursement or recoupment of grant funds.

Under certain circumstances, properties may be eligible for a federal cost share greater than 75%. Properties must meet one of the two definitions below to receive an increased federal cost share:^[335]

• The property is a severe repetitive loss structure. ^[336] In this case, the property is eligible for a 100% federal cost share. A severe repetitive loss structure is a structure that is covered under an NFIP policy and has incurred flood-related damage:
  • For which four or more separate claims payments have been made under flood insurance coverage with the amount of each claim (including building and contents payments) exceeding $5,000 and with the cumulative amount of such claims payments exceeding $20,000, or
  • For which at least two separate flood insurance claims payments (building payments only) have been made, with the cumulative amount of such claims exceeding the value of the insured structure.

• The property is a repetitive loss structure. ^[337] In this case, the structure is eligible for a 90% cost share. A repetitive loss structure is a structure covered under an NFIP policy that:
  • Has incurred flood-related damage on two occasions, in which the cost of repair, on average, equaled or exceeded 25% of the value of the structure at the time of each such flood event; and
  • At the time of the second incidence of flood-related damage, the contract for flood insurance contains increased cost of compliance coverage.

There have been multiple statutory definitions for repetitive loss structures over time. For a structure to be eligible for the increased federal cost share for FMA assistance, a property must meet either the FMA repetitive loss or severe repetitive loss definition in 42 U.S.C. § 4104c(h)(2), as amended.

FEMA may provide financial technical assistance to any applicant awarded at least $1 million (federal share) in FMA grants in the prior fiscal year.^[338] A technical assistance award cannot exceed $50,000 (federal share) to any single applicant in any fiscal year.

Eligible technical assistance activities may include:

• Promoting FMA to communities.
• Visiting sites with communities/applicants.
• Delivering technical assistance to support mitigation planning.
• Developing and reviewing project applications.
• Participating in planning meetings.
• Providing planning workshops/materials.
• Performing Benefit-Cost Analysis and providing grants management workshops/materials.
• Funding, in part, salaries and expenses of staff working to develop, review, monitor and close FMA awards and subawards.

Essentially, a technical assistance award and a management costs award can achieve many of the same objectives. A technical assistance award is meant to allow recipients to maintain a viable FMA program over time. Applicants must ensure activities are not duplicated between the two awards. For instance, duplication would exist if a technical assistance award provided assistance for project development that the applicant seeks reimbursement for under management costs. Proper record-keeping is important to ensure activities are not duplicated.

For additional information regarding FMA technical assistance, refer to the most recent NOFO.