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...possible grant funding. The improvements that go beyond this baseline are considered the responsibility of the Subrecipient and need to be accounted for in your recovery plan. In most cases where changes are to take place, Subrecipients will have their funding capped using the following logic: FEMA will fund the repair or replacement costs for the “as it was” condition, plus the amount necessary to comply with the “how it has to be” requirements, and this total becomes the baseline of eligible funding, or the “cap.”
When that baseline estimate is determined to the Subrecipient’s satisfaction, they can decide to pursue the goal of “as we want it to be.”
FEMA provides three options that provide fexibility for Subrecipients to use funding diferently than restoring the pre-disaster design and function of the facility. For these options, FEMA “caps” the amount of funding based on the estimated amount to restore the damaged facility to its pre- disaster design and function, including applicable and federally required codes and standards. The three capped project options are: