F.1. Program and Policy Changes

Substantial program and policy changes included in the HMA Guide are outlined in this section.

• Building Resilient Infrastructure and Communities (BRIC) Program: The HMA Guide supersedes FEMA Policy #104-008-05, Building Resilient Infrastructure and Communities (Feb. 14, 2022), into Part 10. Section 1234 of the Disaster Recovery Reform Act created BRIC, amending Section 203 of the Stafford Act. Its first award cycle was in fiscal year 2020.
• Pre-Disaster Mitigation (PDM) Grant Program: Specific guidance for PDM was removed and language was added to clarify that FEMA may use the PDM program when administering grant funding as directed by Congress. For more information and guidance regarding the PDM program, refer to the relevant fiscal year’s PDM Notice of Funding Opportunity, the 2015 HMA Guidance and Addendum or earlier versions, and other programmatic guidance relating to PDM.
• HMGP Houses of Worship Eligibility: In Part 4, FEMA does not include houses of worship in the list of  eligible private nonprofit (PNPs) subapplicants for HMGP as indicated in the policy clarification, Project Eligibility for Private Nonprofit Houses of Worship under Hazard Mitigation Assistance, which FEMA issued after passage of the Bipartisan Budget Act of 2018. Changes in the Bipartisan Budget Act for houses of worship are applicable to the Public Assistance Program but not to HMGP. Any changes to HMGP’s subapplicant eligibility criteria for PNPs must be done separately through regulation. As such, the applicable HMGP eligibility criteria for PNPs is established in 44 C.F.R. §§ 206.221(e) and 206.434(a)(2)(ii).
• HMGP Post Fire Application Period: The application submission time limit under 44 CFR § 206.436(d) was deemed non-applicable to the HMGP Post Fire program. Therefore, the HMGP Post Fire program has its own application period, which is clarified in Part 10.
• HMGP Post Fire Policy: The HMA Guide supersedes FEMA Policy #207-088-2, Hazard Mitigation Grant Program—Post Fire (April 29, 2019), by incorporating the information in Part 10. This policy applied to FMAG declarations issued or published on or after Oct. 5, 2018.
• Ecosystem Services Benefits Policy: The HMA Guide supersedes FEMA Policy # 108-024-02, Ecosystem Service Benefits in Benefit-Cost Analysis for FEMA’s Mitigation Programs, and any FEMA materials or content relating to it. Information regarding ecosystem services benefits is incorporated into Part 5 and Part 12. FP-108-024-02 eliminated the 0.75 Benefit-Cost Analysis (BCA) threshold and permitted the consideration of ecosystem service benefits for a project regardless of BCR value. Therefore, ecosystem services benefits can be used in the BCA for all eligible HMA activities that demonstrate the restoration or enhancement of the natural environment. FP-108-024-02 superseded two previous policies:
  • FEMA Policy #108-024-01: Considerations of Environmental Benefits in the Evaluation of Acquisition Projects under the Hazard Mitigation Assistance Programs (June 18, 2013), which introduced the allowance of ecosystem service benefits if the Benefit-Cost Ratio (BCR) of an acquisition/open-space project was 0.75 or greater using traditional risk reduction benefits.
  • FEMA policy clarification: Benefit-Cost Analysis Tools for Drought, Ecosystem Services, and Post-Wildfire Mitigation for Hazard Mitigation Assistance (May 27, 2016), which stated that the inclusion of ecosystem service benefits in the BCA was no longer limited to only acquisition/open-space mitigation activities. The clarification authorized the use of ecosystem service benefits for all mitigation project types when the mitigation project was calculated to have a BCR of 0.75 or greater using traditional risk-reduction benefits.
• Program Administration by States (PAS) Pilot Policy: The HMA Guide supersedes the Addendum to the Hazard Mitigation Assistance Guidance: Program Administration by States Pilot, Hazard Mitigation Grant Program (Oct. 16, 2017) and any FEMA materials or content relating to it. The HMA Guide incorporates the PAS guidance into Part 14.
  • Additionally, FEMA updated the Minimum Eligibility Criteria Checklists, previously contained in Appendices F and G in the 2015 HMA Guidance and Addendum, and made them applicable to HMGP only and for purposes of PAS. For mitigation projects, refer to Appendix Part 16.D, and for mitigation planning activities, refer to Appendix Part 16.E.
• National Flood Insurance Program Eligibility Requirements and Structures in the Special Flood Hazard Area (SFHA): The 2015 HMA Guidance and Addendum indicated that for structures that remain in the SFHA after the implementation of the mitigation project, flood insurance must be maintained for the life of the structure up to an amount at least equal to the project cost or to the maximum limit of coverage made available with respect to the particular property, whichever is less.
  • In Part 4, and based on the statutory language, FEMA clarified that for structures in the SFHA at the time of project completion and for all structures receiving assistance through FMA, flood insurance must be maintained for the life of the structure and after the completion of the mitigation project. Insurance must also be maintained regardless of whether the structure is subsequently removed from the SFHA. In addition, FEMA updated language in the notice of flood insurance requirements to correct the statutory reference and clarify that failure to obtain and maintain flood insurance for these structures will result in the property being ineligible for future HMA awards.
• HMGP Period of Performance Updates: In Part 8, FEMA extended the award period of performance from 36 to 48 months for HMGP to allow more time for activity completion and closeout activities. This change is made in conjunction with updates to closeout deadlines in 2 CFR Part 200. FEMA also expanded authority to regional administrators to grant up to two 12-month extensions to the HMGP period of performance. This change will alleviate the administrative burden by reducing the number of period of performance extension requests and the amount of time needed by FEMA to process them. Additionally, FEMA updated the deadline for the recipient to request an extension of the award period of performance from 60 days to 90 days before the period of performance expires.
• HMGP Application Period Extension: In Part 10, FEMA clarified recipient application period extension requirements and included aspects of the Policy Memo: Hazard Mitigation Grant Program (HMGP) Application Period Extensions to Support Effective and Expedient Program Delivery.
• HMGP Ceiling: In Part 10, FEMA provided additional guidance regarding HMGP assistance estimates and included aspects of the Policy Memo: Hazard Mitigation Grant Program Ceiling Update. The HMA Guide supersedes the policy memo and any FEMA materials or content relating to it.
• HMGP Obligation: In Part 10, FEMA clarified that HMGP can only be obligated for new activities when the application period and the period of performance are open.
• HMGP 12-Month Lock-in and De-obligation: In Part 10, FEMA clarified that assistance for 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.
• Closeout Requirements: FEMA added general closeout requirements in Part 9 and activity-specific closeout requirements in Part 11, Part 12 and Part 13.
  • FEMA included procedures for requesting additional information when closeout reports are deficient and information on when FEMA will administratively close out an award.
  • FEMA included a definition for 100 percent work completion.
• Extraordinary Circumstances for Mitigation Plans: In Part 4 and Part 9, FEMA included clarifying information about remedies of non-compliance when mitigation plans are not completed within 12 months. If FEMA grants an extraordinary circumstances exception, a local or tribal mitigation plan must be approved by FEMA within 12 months of the award of the project subaward to that community.
  • FEMA clarified that if a plan is not provided within this time frame, the project subaward will be terminated, and any costs incurred after notice of subaward termination will not be reimbursed by FEMA.
  • Additionally, FEMA clarified that if the mitigation plan is not approved by FEMA within 12 months of the award and if the subaward also involved a mitigation planning award, FEMA should notify the recipient of its failure to meet the additional specific award or subaward conditions. FEMA also should request that the issue be corrected following remedies for non-compliance procedures, which is described in Part 8. If compliance cannot be achieved, FEMA will apply a remedy action to the subaward (and planning subaward, if applicable) to address the non-compliance and may, as a result, withhold assistance, recoup assistance, or suspend or terminate the planning subaward.
• Greatest Savings to the Fund Methodology: Because of the changes enacted by the Biggert-Waters Flood Insurance Reform Act of 2012 FEMA discontinued the use of Greatest Savings to the Fund methodology to demonstrate cost-effectiveness and removed reference to it from the updated HMA Guide.^[21]
• Apportionment of HMGP Between Two Recipients: In Part 2 and Part 10, FEMA clarified that the amount of HMGP assistance available under the disaster declaration will be apportioned among applicants if there is more than one applicant under that disaster declaration. That is, if a state and a federally recognized tribe are applicants under the same disaster declaration, then the available HMGP assistance will be apportioned among the state and the federally recognized tribe. The apportionment is based on the disaster assistance provided within tribal lands.
• Reasonable Costs: FEMA added information about cost eligibility and cost reasonableness principles under 2 CFR Part 200 to align with PA procedures. Generally, the HMA Guide refers to the reasonable cost principles under 2 CFR Part 200. FEMA issued the Public Assistance: Reasonable Cost Evaluation job aid (Oct. 13, 2018) on reasonable cost evaluation. In 2018, HMA adopted PA guidance on the reasonable cost evaluation as part of the implementation of Section 1215 of the Disaster Recovery Reform Act on Management Costs. FEMA has incorporated information from the Public Assistance Reasonable Cost Evaluation Job Aid – Hazard Mitigation Grant Program Crosswalk FEMA job aid (March 23, 2020) in Part 4.
• Real Property Disposition Requirements: To comply with 2 CFR § 200.311, FEMA added information concerning the disposition of real property that was acquired or improved under HMA when the property is no longer needed for the intended purpose. FEMA included procedures for how and when the recipient must obtain disposition instructions from FEMA. In addition, FEMA added that recipients must provide a completed SF-429, “Real Property Status Report,” at closeout for all property acquired and for certain project types that improve real property.
• Clarification of Effective Date of Other Publications: In Part 1, FEMA clarified the effective date of other government and professional publications when the HMA Guide references requirements detailed in these publications.
• Uniform Relocation Assistance and Real Property Acquisition Policies Act: In Part 4, FEMA clarified that projects involving acquisition, rehabilitation or demolition may be subject to the requirements of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (URA).^[22] Additionally, FEMA clarified that costs incurred to meet URA requirements are eligible and should be included in the subapplication budget. The 2015 HMA Guidance and Addendum included URA requirements only under the acquisition project type.
• Insular Areas: In Part 4, FEMA updated the list of insular areas eligible for waiver of cost share requirements. The 2015 HMA Guidance mistakenly listed Puerto Rico as an insular area although it was not included as an insular area in the applicable statute.
• Build America, Buy America: In Part 4, FEMA included information from FEMA Interim Policy #207-22-0001, Buy America Preference in FEMA Financial Assistance Programs for Infrastructure (Nov. 16, 2022), which establishes new procurement requirements for BRIC and FMA awards.
• Phased Projects: FEMA added information indicating that phased projects are eligible under BRIC and FMA.
• Federal Flood Risk Management Standard: FEMA incorporated the requirements from FEMA Policy #206-21-003-0001, Partial Implementation of the Federal Flood Risk Management Standard for Hazard Mitigation Assistance Programs (Dec. 7, 2022) in Part 4 and Part 12.
• Pre-Award Costs: In Part 3, FEMA provided additional information about the eligibility of pre-award costs.
• HMGP and HMGP Post Fire 5 Percent Codes and Standards: In Part 10 and Part 11, FEMA removed the “Additional 5 Percent Initiative” and established “5 Percent Codes and Standards.” The name and requirements have been updated to provide dedicated funding to strengthen the use of building codes and standards. This funding source must be used for codes and standards activities and may be paired with the 5 Percent Initiative for a total of up to 10% of the HMGP ceiling amount or HMGP Post Fire available assistance amount.

• Changes to Title 2 Code of Federal Regulations (CFR) Part 200: The HMA Guide includes regulatory changes made in 2 CFR Part 200, published in the Federal Register on Aug. 13, 2020, that expand information on grants management requirements and procedures. The effective date of the changes was Nov. 12, 2020, except for two provisions, 2 CFR § 200.216 and 2 CFR § 200.340 that were effective on August 13, 2020.
  • FEMA updated information about subaward and award deadlines in relation to the period of performance and clarified that all costs, including management costs, must be spent within the subaward or award period of performance.
  • FEMA updated the recipient closeout liquidation period from 90 to 120 calendar days and updated the deadline for recipients to submit final reports to 120 calendar days after the end of the award period of performance.
  • FEMA added information about procurement and contracting requirements under 2 CFR Part 200, including 2 CFR § 200.320 and 2 CFR § 200.321 and related documentation requirements, including the following:
    • New requirements for states to follow socioeconomic contracting steps and to encourage the use of domestic preferences.
    • Prohibition on procuring certain types of covered telecommunications equipment from Huawei and ZTE Technologies, as published in FEMA Policy #405-143-1, Prohibitions on Expending FEMA Award Funds for Covered Telecommunications Equipment or Services (May 10, 2022).
    • Allowability of non-competitive procurement methods for purchases below the micro-purchase threshold.
• FEMA updated budget and scope change requirements to align with 2 CFR § 200.308 and FEMA’s Standard Terms and Conditions.
• Updated Regulations that Impact HMA Programs: FEMA incorporated the changes made to the HMA regulations with the final rule published on Sept. 10, 2021, and effective Oct. 1, 2021.^[23]

• Advancing Racial Equity and Support for Underserved Communities Through the Federal Government: On Jan. 20, 2021, President Biden issued EO 13985 on Advancing Racial Equity and Support for Underserved Communities Through the Federal Government, which requires the federal government to “pursue a comprehensive approach to advancing equity for all, including people of color and others who have been historically underserved, marginalized, and adversely affected by persistent poverty and inequality.” As a priority for FEMA and HMA, FEMA included reference to EO 13985 in Part 1.
• Protecting Public Health and the Environment and Restoring Science to Tackle the Climate Crisis: On Jan. 20, 2021, President Biden issued EO 13990 on Protecting Public Health and the Environment and Restoring Science to Tackle the Climate Crisis, which requires that the federal government “promote and protect our public health and the environment; and conserve our national treasures and monuments, places that secure our national memory.” As a priority for FEMA and HMA, FEMA included reference to EO 13990 in Part 1.
• Tackling the Climate Crisis at Home and Abroad: On Jan. 27, 2021, President Biden Issued EO 14008 on Tackling the Climate Crisis at Home and Abroad, which requires the federal government to “put the climate crisis at the center of United States foreign policy and national security, while taking a government-wide approach to the climate crisis.” As a priority for FEMA and HMA, FEMA included reference to EO 14008 in Part 1.
• Climate-Related Financial Risk: On May 20, 2021, President Biden issued EO 14030 on Climate-Related Financial Risk, which reinstates EO 13690 on Establishing a Federal Flood Risk Management Standard and a Process for Further Soliciting and Considering Stakeholder Input (Jan. 30, 2015). Through the reinstatement of EO 13690, President Biden reestablished the Federal Flood Risk Management Standard to address current and future flood risk and ensure that projects funded with taxpayer dollars last as long as intended. As a priority for FEMA and HMA, FEMA included reference to EO 14030 in Part 1.

• Cost-Effectiveness: FEMA consolidated information about cost-effectiveness and principles governing the BCA into Part 5. Additionally, certain guidance issued since the 2015 HMA Guidance and Addendum has been incorporated. FEMA provided additional BCA resources to support evaluating the cost-effectiveness of various mitigation activities including aquifer recharge, storage and recovery, floodplain and stream restoration, floodwater diversion and storage, ecosystem services benefits, and post-wildfire mitigation actions.
• Benefit Cost Analysis and Management Costs: In Part 5, FEMA clarified that management costs may be excluded from project costs for the purpose of the BCA.
• Benefit Cost Analysis and Social Benefits: In Part 5, FEMA eliminated the requirement to meet a 0.75 BCR threshold before social benefits can be incorporated in a BCA.
• Cost-Effectiveness Determinations for Acquisitions and Elevations in the SFHA Using Pre-Calculated Benefits Memorandum: In Part 12, FEMA updated the pre-calculated benefits for acquisitions, elevations and mitigation reconstruction projects in the Special Flood Hazard Area based on an updated pre-calculated benefits memorandum published on Sept. 30, 2021, that is available on the FEMA “Benefit-Cost Analysis” webpage.
• Pre-Calculated Benefits for Certain Hospital Generators to Demonstrate Cost-Effectiveness: In Part 5 and Part 12, FEMA updated content by referring to pre-calculated benefits for certain hospital generators based on a memorandum published on Sept. 30, 2021, that is available on the FEMA “Benefit-Cost Analysis” webpage.
• Benefit-Cost Analysis Efficiencies for Repetitive Loss and Severe Repetitive Loss Acquisition Projects Located Outside the Designated Special Flood Hazard Area (SFHA): In Part 5 and Part 12, FEMA updated content to include the use of pre-calculated benefits to demonstrate cost effectiveness for Repetitive Loss and Severe Repetitive Loss acquisition projects located outside the designated SFHA based on a memorandum published on Feb. 15, 2022, that is available on the FEMA “Benefit-Cost Analysis” webpage.
• Water Resource Projects and the BCA Determination: In Part 5, FEMA clarified that water resource projects are not exempt from the HMA statutory requirement to demonstrate cost-effectiveness even though these projects are exempt under the Office of Management and Budget’s Circular A-94, Guidelines and Discount Rates for Benefit-Cost Analysis of Federal Programs. The cost-effectiveness determination should be supplemented by consideration of the White House Council on Environmental Quality’sUpdated Principles, Requirements and Guidelines for Water and Land Related Resources Implementation Studies criteria if applicable.
• BCA Guidance for Floodplain and Stream Restoration Projects: In Part 12, FEMA included more information on the cost-effectiveness of floodplain and stream restoration projects from the Supplemental BCA Guidance for Floodplain and Stream Restoration Projects.
• BCA Guidance for Floodwater Diversion and Storage Projects: In Part 12, FEMA included more information on the cost-effectiveness of floodwater diversion and storage projects from the Supplemental BCA Guidance for Floodwater Diversion and Storage Projects.
• Cost Effectiveness Determination for Non-Residential Hurricane Wind Retrofit Measures: In Part 12, FEMA included more information on the cost-effectiveness of non-residential hurricane wind retrofits from the Cost Effectiveness Determination for Non-Residential Hurricane Wind Retrofit Measures Funded by FEMA Memorandum.

• HMGP Management Cost Interim Policy: The HMA Guide supersedes FEMA Policy #104-11-1, Hazard Mitigation Grant Program Management Costs (Interim) (Nov. 14, 2018). The interim policy applied to all major disasters declared on or after Aug. 1, 2017. FEMA has also incorporated information from Hazard Mitigation Grant Program Management Costs Policy (Interim) (March 23, 2020) frequently asked questions document.
  • The HMA Guide supersedes the interim policy. Information regarding management costs for HMGP and HMGP Post Fireis included in Part 10 and Part 13. Any FEMA materials or content relating to the interim policy is hereby made final. The interim policy was developed to carry out amendments to Section 324 of the Stafford Act by Section 1215 of the Disaster Recovery Reform Act. As a result, 44 CFR Part 207, which implemented Section 324 prior to the amendment, and the chapters relating to HMGP management costs in the 2015 HMA Guidance and Addendum were no longer effective and were superseded.
  • FEMA has clarified how to calculate management costs based on the total amount of the award, subapplication requirements, and procedures for incremental obligation and closeout.
  • FEMA removed the provision from the interim policy requiring FEMA to develop an agreement with the recipient to outline the release of funding for management cost awards over $6 million. FEMA instead incorporated information from the Hazard Mitigation Grant Program Management Costs Policy (Interim) frequently asked questions document that set thresholds for incremental funding requirements.
  • To align the HMGP management cost policy with revisions to 2 CFR Part 200, FEMA simplified information regarding when a subrecipient or recipient can claim management costs. In Part 13, FEMA removed language that stated that management costs must be claimed within 180 days after work is completed; within 180 days after the latest period of performance of the last nonmanagement cost HMGP project; or eight years from the date of the disaster declaration. Removing this language means that there is no longer an eight-year period of availability. Instead, FEMA clarified that management costs must be incurred within the subaward or award period of performance.
• Management Costs and Total Amount of the HMGP Award: In Part 10, FEMA clarified that, for management cost calculation, the “total amount of the HMGP award” means the total amount of contributions based on applications submitted when the HMGP application period closes or when the total HMGP ceiling is determined, whichever is later.Similarly, the “total amount of the HMGP Post Fire award” means the total amount of contributions based on applications submitted when the HMGP Post Fire application period closes or when the total HMGP Post Fire available assistance amount is determined, whichever is later. FEMA also clarified that in cases where the recipient submits subapplications in excess of the HMGP ceiling (or for HMGP Post Fire, the available assistance amount), FEMA will only calculate management costs on subapplication amounts up to the final HMGP ceiling amount or HMGP Post Fire available assistance amount.
• Management Costs for Project Scoping/Advance Assistance: The 2015 HMA Guidance and Addendum indicated that FEMA does not provide management costs for purposes of project scoping/advance assistance and noted that management costs may only be awarded in conjunction with project or planning awards and subawards. FEMA has since removed the restriction that management costs may only be awarded in conjunction with a project or planning award or subaward and has specified that project scoping/advance assistance subawards are eligible for management costs. Refer to Part 13 for more information.
• HMGP and HMGP Post Fire Management Costs: For HMGP and HMGP Post Fire, FEMA clarified in Part 10 that recipients cannot receive an additional 5% for management costs if also acting as a subrecipient.