...used for capital projects such as facilities or equipment. Alternate Project funds may also be used for project shortfalls due to mandatory food insurance reductions taken from PA Program funding for repairs to buildings in Special Flood Hazard Areas, supplement funds for an Improved Project, and to conduct cost-efective hazard mitigation measures regardless of whether the facility was damaged by the incident and whether the measures reduce the risk of future damage from the same type of incident or of the same type of damage caused by the incident.
This type of capped project ofers the maximum amount of funding options that allow for more fexibility with how the Subrecipient may use Public Assistance grant funds. For Alternative Procedures Projects, FEMA, the state and the Subrecipient must reach agreement on the capped amount within 12 months of the declaration date. Subrecipients can, however, request an extension and FEMA may approve such on a project-by-project basis.
FEMA, along with the state and Subrecipient, document the agreed upon capped amount with either a Fixed Cost Agreement Letter or a Letter of Undertaking, as appropriate. Once the letter is signed by the Subrecipient, they are locked in and may not revert back to a project funded based on actual costs. If all parties cannot agree on the fxed estimate by the deadline, the project will not be eligible for the Alternative Procedures and FEMA will process it using standard procedures.