FEMA encourages recipients/subrecipients to generate program income to help defray program costs. Program income is gross income received by the recipient/subrecipient directly generated by an award-supported activity or earned only because of the award during the award period of performance.[228] Program income may be derived from the use or rental of real or personal property acquired with award assistance as well as the sale of commodities or items fabricated under the award. Subrecipients must deduct this income from total activity costs.[229] The recipient/subrecipient must report their program income to FEMA for the proper treatment of the program income under the award. The recipient should report program income earned under the award on its next quarterly SF-425: Federal Financial Report.
After the period of performance, the recipient and subrecipient may generate income but are no longer required to report the income to FEMA.[230] For example, a community may rent parcels acquired under 44 CFR Part 80 to community members to use as garden space as long as the open space requirements and FEMA deed restrictions are followed.