We continue our series on dealing with Federal grants in the aftermath of a Federal disaster declaration Disaster Strikes.

In my last article, I shared an interview with Thad Leugemors, a Program Execution Manager for Tetra Tech on how to navigate the maze of Federal grants for disaster recovery and hazard mitigation.

Listen to the whole interview below:

Thad’s extensive background working with Federal agencies and individual municipalities provides rare insights into the world of disaster recovery and hazard mitigation grants.

Recently Thad was in Colorado working with over $200 million in Federal grants that were awarded to assist in the 2013 Front Range floods that really devastated Colorado.

Who Gets Involved In Federal Disaster Recovery Work?

Certainly most of us are familiar with FEMA response to disasters, and the individual assistance (IA) and public assistance (PA) components, but other Federal Agencies also have a role to play in helping communities heal after disaster strikes.

Let’s look at some of the key types of public assistance grants for disaster recovery and hazard mitigation:

FEMA:

Infrastructure Repair Grants

Grants to fund repairs of infrastructure-Generally, no limit after disaster declaration.

FEMA must fund grants to fund the uninsured portion of the losses at 75% with the municipality and state picking up the tab for the remaining costs.

There are also provisions for FEMA grants to support as much as 100% of the cost of the uninsured losses depending on the circumstances.

Hazard Mitigation Grant Program (HMGP)

This program is competitively awarded based on the amount of damage.

HMGP grants can cover 15% of costs to mitigate future losses and further harden against the next disaster.

Examples include things like:

• Buying properties located in the flood plain
• Other mitigation infrastructure projects.

U.S. Department of Housing and Urban Development (HUD) Grants

Community Development Block Grants

Though not obligated to provide disaster relief (that’s FEMA’s role) HUD often plays a part in disaster recovery and hazard mitigation by funding public community development block grants.

These types of grants are set aside for unmet disaster recovery needs.

In other words, these types of HUD grants will typically fund things that all the other federal agencies or FEMA don’t cover.

Federal Highway Administration (FHWA)

Emergency Relief and Resiliency Grants

Like HUD, the FHWA can provide disaster relief, though they are not obligated to fill this role.

FHWA grants provide Federal funds for the repair or rebuilding of federal-aid roads and bridges damaged by natural disasters or catastrophes.

These grants can typically cover a wide variety of roads that run through communities, not just interstates.

What Gets The Federal Grant Funds Flowing?

You may be wondering what happens after the disasters?

When do the communities and organizations start to receive some of those disaster recovery funds?

The process generally works like this with the public assistance grant program:

First FEMA comes to town and begins writing the project worksheets to infrastructure projects and also can include pay for overtime for first responders and police time.

• FEMA will set up a relationship directly with what is called the “applicant” or the municipality.
• The state plays a liaison role to assist and help communities understand the public assistance program.
• For the most part, FEMA works directly with the municipalities.

Next, after the project worksheets are written, FEMA will obligate the Federal funds.

Finally, once obligated, the Federal funds become available for reimbursement of eligible costs.

Do The Federal Grant Regulations Still Apply In A Disaster?

It’s worth noting that even though it’s a disaster, the rules for Federal awards still apply.

If you aren’t familiar with the new grant regulations in 2 CFR Part 200 Uniform Guidance, you’ll want to learn more about it.

Also remember that even after a disaster, you need to follow your normal rules of procurement.

(This requirement typically kicks in after the emergency period of saving lives ends-generally after the first 72 hours of the disaster.)

If you don’t follow Federal procurement standards (and other grant management requirements) you can jeopardize all of the funding for these types of projects.

Check out When Disaster Strikes Part I

Check out When Disaster Strikes Part III

Ready to Improve Your Grant Management?

How about you?

Would you like to be a better grant manager?

We have another grant management training seminar coming soon.

Click here to get all the details!

Hope to see you there!

Author:

Lucy Morgan CPA, MBA

CEO, Compliance Warrior

Author of “Decoding Grant Management-The Ultimate Success Guide to the Federal Grant Regulations in 2 CFR Part 200” The 2nd Edition is now available on Amazon in Paperback and Kindle versions.