Under the HMA programs, the total cost to implement approved mitigation activities is generally assisted by a combination of federal and non-federal sources. Cost share means the portion of activity costs not paid by federal assistance.[134] Both the federal and non-federal cost shares must be for eligible costs used in direct support of the approved activities in the HMA Guide and the award. Contributions of cash donated or third-party in-kind services, materials or any combination thereof may be accepted as part of the non-federal cost share.
FEMA administers cost share requirements consistent with 2 CFR § 200.1, 2 CFR § 200.306 and 2 CFR § 200.434. To meet cost share requirements, the non-federal contributions must be verifiable from the subrecipient’s records; reasonable, allowable, allocable and necessary under the federal program; and compliant with all federal requirements and regulations.
In general, HMA may be used to pay up to 75% of the eligible activity costs.[135] The remaining 25% of eligible activity costs are derived from non-federal sources. Exceptions to the 75% federal and 25% non-federal share are as follows:
- HMGP and HMGP Post Fire: FEMA provides 100% cost share for management costs.
- BRIC:
- Small impoverished communities may be eligible for up to a 90% federal cost share. For information about small impoverished communities, refer to Part 10.
- FEMA provides 100% cost share for management costs.
- FMA:
- FEMA may contribute up to 100% federal cost share for severe repetitive loss structures.[136]
- FEMA may contribute up to 90% federal cost share for repetitive loss structures.
For BRIC and FMA, the appropriate year’s NOFO may contain additional information about cost share availability.
Structures with different federal cost share can be submitted in a single project subapplication. The overall project federal cost share documented in the cost share section of the project subapplication must reflect the combined federal cost share of the structures.
For Insular areas, including American Samoa, Guam, the Northern Mariana Islands and the U.S. Virgin Islands:[139]
- FEMA automatically waives the non-federal cost share when the non-federal cost share for the entire award is less than $200,000 and not an individual subaward.
- Under HMGP, if the non-federal cost share for the entire award is $200,000 or greater, FEMA may waive all or part of the cost share; such a waiver is usually consistent with that provided for PA under the major disaster declaration. If FEMA does not waive the cost share, the insular area must pay the entire cost-share amount, not only the amount greater than $200,000.
- Under FMA and BRIC, if the non-federal cost share for the entire award is $200,000 or greater, FEMA may waive all or part of the non-federal cost share at the request of the recipient. The recipient may request 100% cost share in its application.
Management costs are any indirect costs, any direct administrative costs, and any other administrative expenses associated with the administration of HMA awards and subawards. Management costs are provided under HMGP, HMGP Post Fire, BRIC and FMA.