Frequently Asked Questions

On Sept. 30, 2022, President Joseph R. Biden signed the Hermit’s Peak Fire Assistance Act that provided $2.5 billion to compensate New Mexicans and Tribal Nations impacted by the Hermit’s Peak/Calf Canyon Fire. An additional $1.45 billion was included in the Consolidated Appropriations Act, 2023, that passed Dec. 29, 2022, providing a total of $3.95 billion to fund expected costs under the Act. Funding may cover eligible loss including personal injury, loss of property, business loss or financial loss.

The Consolidated Appropriations Act also included funding to replace water treatment facilities damaged by the fire to ensure communities have access to clean drinking water.

This historic fire, and subsequent flooding, had devastating impacts and this funding will provide much needed resources to help individuals and communities jumpstart their recovery.

Frequently Asked Questions

What is the Hermit’s Peak/Calf Canyon Claims Office?

FEMA established the Hermit’s Peak/Calf Canyon Claims Office to disperse the $2.5 billion in additional relief funds included in the Hermit’s Peak/Calf Canyon Fire Assistance Act.

My property lost value as a result of the fire. Is that compensable?

Yes. The Claims Office may award compensatory damages for a documented decreased value of real property that an individual owned before the fire. You may receive compensation if you 1) sell your real property in a good faith transaction that is closed no later than November 14, 2024, and you realize a loss in the pre-fire value, or 2) if you can establish that the value of the real property was significantly diminished long-term as a result of the fire.  

The Claims Office may also compensate you for increases in homeowners’ insurance premiums with documentation showing that the increase in the premium is the direct result of the fire and associated impacts. 

*The Claims Office is currently undertaking a study to determine the impacts of the fire on real property values and is expected to release results in early 2024. 

If a claimant chooses to hire an attorney, will the Hermit’s Peak/Calf Canyon Fire Claims Office pay the attorney fees?

No. The Hermit’s Peak/Calf Canyon claims process is designed so that claimants do not need the services of an attorney or claims professional. If a claimant chooses to hire an attorney, the claimant is responsible for paying the attorney’s fees. 

The Hermit’s Peak/Calf Canyon Fire Assistance Act does cap the attorney’s fees at 20 percent of the claim payment. 

Do I need to hire an attorney to help navigate this process?

No. The claims process is designed so that claimants do not need the services of an attorney, third party representation, or claims professional. However, the Claims Office recognizes that claimants have the right to hire a third-party representative and will work with third party representatives to best support the claimant through the process.

Is compensation from the Hermit’s Peak/Calf Canyon Claims Office taxable?

No. Compensation through the Hermit’s Peak/Calf Canyon Claims Office is not taxable. The Hermit’s Peak/Calf Canyon Fire Claims Assistance Act states generally that compensation is not considered income or resources under Federal State or local tax laws. If you have specific questions, you should contact a tax professional for assistance.

Displaying 1 - 5 of 57
Last updated
Return to top