States and non-federal entities are subject to the procurement requirements addressed in 2 CFR Part 200. However, in providing financial assistance under the HMA programs, FEMA may approve a subrecipient’s request to use federal assistance to reimburse individual property owners who contract for the performance of eligible mitigation work on their own homes.
Subrecipients may allow property owners to secure contractors to implement the project and then reimburse the property owner with federal assistance. However, the recipient and subrecipient will retain their legal obligations for oversight of the assistance under all applicable program regulations, program guidance, and requirements of 2 CFR Part 200. Program regulations and guidance require the recipient and subrecipient to properly monitor, report on and account for the use of assistance with documentation showing costs are reasonable, necessary, allowable and allocable, and at closeout, all approved projects were completed consistent with award and subaward terms, program requirements and applicable law.[175]