There are a number of potential pitfalls in the FEMA process. Requested payments can be disallowed for a number of reasons, including:
Once a payment is made, audits may discover problems that, if unresolved, could force applicants to return some or all of the FEMA funds received. Some common problems include:
In the case of a flood-related disaster, eligible facilities within a Special Flood HazardArea may be subject to a reduction in eligible costs. This reduction, which can be as much as $1 million, is a penalty for the failure to carry insurance with either NFIP or a commercial carrier.
It is important to keep in mind that, as with an insurance claim, the applicant is responsible for providing documentation and maintaining all information pertaining to the damage and the grant request. It is equally important for applicants to stay informed on the ever-changing rules and regulations governing these programs, including 44 CFR and the Robert T. Stafford Act.
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Ronald A. Cuccaro, SPPA
Sheila E. Salvatore
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