HMA cannot duplicate assistance received by or available to applicants or subapplicants from other sources for the same purpose.[179] If the recipient or subrecipient receives assistance from another source for the same work that FEMA assisted, FEMA reduces the eligible cost or de-obligates assistance to prevent a duplication of benefits.
Recipients, subrecipients and individual property owners are responsible for accurately reporting the availability or receipt of duplicative grants, loans, insurance payments, legal claims, gifts or other payments pertaining to the property being mitigated using HMA. Reporting should occur at any point that such information becomes available, including:
- During application development, pre-award and approval.
- During the award period of performance.
- During closeout.
- After award closeout, if duplicative assistance is received later.
Examples of other sources include insurance claims, other assistance programs (including previous project or planning awards and subawards from other FEMA programs), legal awards or other benefits associated with properties or damage that are subject to litigation.
Duplication of Benefits
Duplication of benefits is used to describe assistance that is from more than one source and that is used for the same purpose or activity. The purpose may apply to the entire activity or only part of it.
Duplication of benefits may apply when assistance for the same purpose:
- Has been received.
- Will be received.
- Is reasonably available from another source, such as insurance or legal settlements due to the property owners.
Because the availability of other sources of mitigation award or loan assistance is subject to available information and the means of each individual applicant, HMA does not require that property owners seek assistance from other sources (except for insurance). However, it is the responsibility of the property owner to report other benefits received, any applications for other assistance, the availability of insurance proceeds, or the potential for other compensation, such as compensation from pending legal claims for damage relating to the property. If the property owner has an insurance policy that could potentially cover mitigation activities (including Increased Cost of Compliance coverage), FEMA will generally require that the property owner file a claim prior to the receipt of aid from HMA.
According to the Privacy Act of 1974,[180] information regarding other assistance received by properties in HMA activities may be shared under 5 U.S.C. § 552a(b). Uses may include sharing with custodians of property records, such as other federal or other governmental agencies, insurance companies, or any public or private entity, to ensure the property has not received money that is duplicative of any possible HMA awards received. When obtaining information from property owners about other sources of assistance, a Privacy Act statement must be distributed to each owner. For more information about the process of verifying potential duplication and Privacy Act requirements, access the Hazard Mitigation Assistance Tool for Identifying Duplication of Benefits. For a copy of the Privacy Act statement, refer to Appendix F of that document.