Rebuilding Under the FEMA Public Assistance Program

6 D I SAS T E R R ECOVE RY TODAY.COM “…the BFE will be used to calculate the replacement cost. However, if replacement is thereby indicated, the Advisory Base Flood Elevation will be used to design the replacement facility and to determine eligible costs. If the calculation indicates repair, and the cost to repair disaster- related damages to the structure plus the cost to elevate or flood- proof the structure equal or exceed the cost of a new structure, we will cap total eligible project cost at the replacement cost.” 4 In short, if a facility does not meet the 50 Percent Rule, in cases of substantial damage, replacement might still be the most cost-effective option. Also, in those instances when a facility cannot be adequately flood-proofed or elevated, replacement becomes the only option. It is important to understand that substantial damage determinations are not made by you, the state or FEMA. They are made by the local floodplain management official; thus, it is important to coordinate with him/her as quickly in your recovery as possible. Who determines which structures are“substantially damaged”? Local building official or floodplain manager make “substantial damage” determinations based on the data that is collected. 5 To assist in the determination of substantial damage, it may be necessary to prepare a comprehensive damage estimate as described above. How About Relocation? If your facility is eligible for replacement, the next step is determining if it can be replaced at the same location. FEMA funds the permanent relocation 6 of a facility when: • An applicable federal, state or local standard, such as a floodplain management regulation, requires that a damaged facility be relocated away from a hazardous area; • The original facility is and will be subject to repetitive heavy damage; • The approval is not barred by other provisions of policy; and • The overall project, including all costs, is cost-effective. If relocation is required, eligible work includes land acquisition and the construction of ancillary facilities such as roads and utilities 7 , in addition to work normally eligible as part of a facility reconstruction. For relocation to be cost- effective, the eligible costs associated with relocating the damaged facility must not exceed the cost of replacing the facility at its original location. Further guidance for relocations can be found in FEMA’s Public Assistance Program and Policy Guide, Version 4, June 1, 2020, VI, Relocation, page 160. When relocation is required by the Regional Administrator, no future funding for repair or replacement of a facility at the original site will be approved, except those facilities which facilitate an open space use outlined in 44CFR part 9. 8