A Guide of Federal Funding Disaster Relief for those affected by Super Storm Sandy. Monmouth County Division of Planning. Overlap in Funding Eligibility. Disaster Relief Matrix - Individual. Example of Available Assistance for a Homeowner. Same funding. Temporary Housing. Debris Removal
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A Guide of Federal Funding Disaster Relief for those affected by Super Storm Sandy
Monmouth County Division of Planning
Repairs/ Replacement/ Rehabilitation
Can be used as non-Federal match funds
Hazard Mitigation Planning
You are located in a federally declared disaster area.
You have filed your insurance claim or your property is not covered by insurance
It is your primary residence, where you live most of the year
You are not able to live in your home
Your or someone you live with is a US citizen, non-citizen national or qualified alien
The home is not a primary residence (i.e. it is a second home or vacation home)
You have refused assistance from your insurance provider
Your losses are business–related
Your expense resulted from precautionary evacuation activities – you were able to return home immediately after the incident
You have adequate rent-free housing that you can use
The damaged home is located in a community that does not participate in the NFIP – in this case the flood damage would not be covered, however you may qualify for rental assistance or other needs not covered by flood insurance (all Monmouth Co. towns participate except for Shrewsbury Twp.)
Eligible Costs/Uses – to help with critical expenses that cannot be covered in other ways
Temporary Housing (e.g. rental assistance or government provided housing unit)
Repair damages not covered by insurance & to make the damaged home safe, sanitary & functional.
To help homeowner with the cost of replacing their destroyed home
Other Need for necessary & serious expenses (e.g. medical, dental, funeral, personal property, transportation, moving/storage)
IHP will not cover all of your losses from damage to your property.
IHP is not intended to restore your damaged property to pre-disaster condition – it is to return to a functional structure.
By law, IHP cannot provide you for losses that are covered by your insurance.
IHP does not cover business-related losses
You may appeal any decision (e.g. eligibility, amount or type of aid provided late applications, request to return money or questions regarding continuing help) postmarked within 60 days of FEMA decision letter date.
If you do not use the money as explained by FEMA, you may not be eligible for any additional help & may have to give the money back
Disaster help is usually limited to up to 18 months from the date of the Presidentially-declared disaster
This is a grant which does not have to be repaid pending proper use of funds
The funds are tax-free
The funds are not counted as income or a resource for determining eligibility for welfare, income assistance or income-tested benefit programs funded by the Federal government
The funds may not be reassigned or transferred to another person
You must keep receipts or bills for 3 years to demonstrate how all of the money was used in meeting your disaster-related need
IHP and Flood Insurance
If your insurance claim is delayed 30+ days from the time you filed, FEMA may find you eligible to award you funds as an advance which would be paid back upon receiving your insurance settlement
If your maximum insurance settlement is insufficient to meet your disaster-related needs & you still have unmet disaster-related needs – you may write FEMA and request additional assistance
If you have exhausted your insurance settlement’s maximum Additional Living Expenses (ALE) & you still have unmet disaster-related needs – you may write to FEMA and request additional assistance
The FEMA Helpline is available to help you locate an available rental resources in the disaster area. 1-800-621-FEMA
Online housing resources:
FEMA Housing Portal
New Jersey Housing Resource Center
All owners of eligible property (a building and/or its contents) located in a community participating in the NFIP
Standard Dwelling (Single Family House)
General Property (5 or more family residential building & non-residential buildings)
Residential Condominium Building Association
Owners and Renters
Standard Flood Insurance Policies (SFIP)
2 types of Coverage
Ten percent of a dwelling’s building coverage may be applied to a detached garage.
Residential detached garages used, or held in use, for residential business or farming are not covered under the dwelling policy. These detached garages and other accessory structures must be insured under a separate policy.
The National Flood Insurance Reform act of 1994 requires individual in Special Flood Hazard Zones (SFHZ) who receive disaster assistance for losses to real or personal property to purchase & maintain flood insurance coverage for as long as the live in the dwelling
Identify the flood zone the structure is located in using Flood Rate Insurance Maps (FIRM)
Find out if your community participates in the NFIP
To determine if your property is in a SFHZ visit your local community planning or building permit department. Digital maps can be views on FEMA’s Region 2 website or FEMA’s Map Information Exchange.
Coverage Limitations of Standard Flood Insurance Policies (SFIP)
Any building with 2 or more outside rigid walls & fully secured roof affixed to a permanent site. Must resist flotation, collapse & lateral movement. Must be located in a community that participates in the NFIP
Items such as artwork, collectibles, jewelry & similar articles are limited to $2,500 of the total coverage limits
Buildings entirely over water or principally below ground, gas & liquid storage tanks, animals, birds, fish, aircraft, wharves, piers, bulkheads, growing corps, shrubbery, land, livestock, roads, machinery or equipment in the open & most motor vehicles
Basements – coverage is available for certain mechanical equipment necessary for the habitability of a building. Finished elements are not covered.
Important Facts about Standard Flood Insurance Policies (SFIP)
Contents coverage must be purchased separately
It is not a valued policy – flood insurance plays the actual cash value (ACV) or replacement cost of actual damages up to the policy limit
It is not a guaranteed replacement cost policy – it does not pay more than the policy limit regardless of the limit or liability
For a complete list of coverages refer to any SFIP form, Section 3, Property Covered, Part A. Building Property – 8.a. (1) - (17) and b., for building items covered. For Personal Property, refer to Section 3,. Property Covered, Part B. Personal Property – 4. a., b., & c.
SFIP Policyholders who’s insured building meets 1 of 2 conditions:
1) Determined to be substantially damaged (damage exceeds more than 50% of the value of the building prior to damage occurring);
2) Meets the criteria of a repetitive loss structure
ICC coverage only applies to flood-related damage
Helps pay toward the cost to elevate, floodproof (non-residential only), demolish or relocate the building
Basements can be floodproofed using ICC payments ONLY if the building is located in a community approved for residential basement exceptions by FEMA
FEMA allows NFIP policyholders to assign their ICC claim benefits to the community when they are participating in a FEMA-funded mitigation program. Coordination must be done through the community and the property owner. The ICC payment can be used to match a FEMA mitigation grant to cover the remaining costs.
The $30,000 maximum amount collected through ICC is in addition to the amount the policy holder receive for physical damages by flood.
The total amount the policyholder receives for combined structural damage & ICC is always capped by the maximum limit of coverage established by Congress
Helps pay for the cost to comply with state or community floodplain management laws or ordinances from a flood even in which a building has been declared substantially damaged or repetitively damaged
ICC coverage is included in all Standard Flood Insurance Policies, however not all buildings are eligible (i.e. substantially damaged declaration). ICC is Coverage D in every SFIP.
ICC is only available for accessory buildings only when a separate flood insurance policy is written on that building (i.e. detached garage)
ICC does not extend to other remodeling or construction improvements that are not required to meet minimum floodplain management requirements
SBA LOANS ARE NOT JUST FOR BUSINESSES or BUSINESS OWNERS
SBA provides loans to homeowners, renters, businesses and most private, non-profit organizations to repair or replace real estate, personal property, equipment and business assets that have been damaged in a disaster.
Individuals with reasonable assurance that he or she can repay the loan out of personal or business cash flow, and must have satisfactory credit & character
Immediate Disaster Assistance Program (IDAP)
Available for small business that have suffered physical damage or economic injury due to a declared disaster.
This is an interim loan not to exceed $25,000 to meet immediate business needs while long-term financing is from a disaster loan is pending with SBA
Other eligibility requirements apply per SBA policies
Types of Disaster Loans
Home & Personal Property Loans
Up to $40,000 for personal items
Up to $200,000 for repair/replacement of primary residence
Business Physical Disaster Loans
Up to $2Million to repair or replace damaged real estate, equipment, inventory & fixtures
Economic Injury Disaster Loans
Up to $2Million to meet necessary financial obligations
Military Reservists Economic Injury Loan
Up to $2Million to provide needed working capital to a small business if an essential employee is called up to active duty
Homeowner Association Unit Owner
Up to $40,000 for personal items
Up to $200,000 for repair/replacement of primary residence
HOAs, PUD, Co-ops, condominium & other common interest developments
Up to $2Million to repair or replace disaster-damaged common elements not fully covered by insurance or other disaster recoveries
MOST DISASTER AID FROM THE FEDERAL GOVERNMENT IS IN THE FORM OF LOANS FROM THE SMALL BUSINESS ADMINISTRATION (SBA)
ELIGIBILITY FOR OTHER DISASTER RELIEF FUNDS MAY BE AFFECTED IF YOU DO NOT FILL OUT AN APPLICATION FOR AN SBA LOAN
SBA loans can be used as non-federal matching cost share for hazard mitigation projects that individuals collaborate with local community on
Applying for a SBA loan does not require you to accept the funds, however not accepting the funds that you are eligible for may have an affect on other disaster relief funding
DO NOT miss the filing deadline by waiting for an insurance settlement
Under the Flood Disaster Protection Act of 1973 – a loan recipient must obtain flood insurance if the proceeds of SBA financial assistance are used for property located in a special flood hazard area. This also applies to the business loan program regarding inventory, etc. contained in the building located in the special flood hazard zone.
In general SBA will not require collateral to secure a disaster home loan or physical disaster business loan of less than $14,000 or an economic injury loan of $5,000 or less. Even if you do not have the collateral, you will not be declined as long as the SBA is reasonably sure you can repay your loan
Misuse of SBA funds may result in criminal, civil or administrative action.
Loan Use Restrictions
Restore or replace your primary home & your personal or business property as nearly as possible to their pre-disaster condition, & within certain limits, to protect damaged or destroyed real property from possible future similar disasters
Secondary homes or vacation properties are not eligible for these loans
SBA cannot cover agriculture losses – contact USDA for recovery assistance
Eligible Applicant (Grantee)
Emergency management agency or a similar office
Eligible Subapplicant (Subgrantee)
Private Non-Profit organizations (PNPs) – only eligible for HMGP funds
Hazard Mitigation Grant Program (HMGP)
Pre-Disaster Mitigation (PDM)
Flood Mitigation (FMA)
Repetitive Flood Claim (RFC)
Severe Repetitive Loss (SRL)
Used to provide protection to the undamaged parts of a facility (Section 404)
Cost Sharing program
Generally a 75% Federal funds/ 25% non-federal matching funds
3 Major Categories
Hazard Mitigation Planning
Individuals may not apply on directly to FEMA for this type of funding, however individuals may partner up with their local government to participate in a hazard mitigation program, if available.
There are certain activities that are NOT eligible for HMA funds as stand along projects but are eligible when included as a functional component of eligible mitigation activities such as:
Real property or easement purchase required for completion of a project;
Studies integral to the development & implementation of a mitigation project (e.g. hydrologic, hydraulic, engineering, drainage).
There are federal funds that ARE allowed to be used as non-federal cost share which include:
1) ICC payments
2) SBA loans
3) CDBG-DR grants
4) USDA farm service agency loan
*Although individual homeowners and businesses may not apply directly to the Hazard Mitigation Grant Program, a community may apply on their behalf. Check with your municipality about sponsoring an application.
Can be used as non-Federal match funds
Home & Personal Property
Hazard Mitigation Grant Program
Business Physical Disaster
* In addition to the approved loan, assistance can be increased by the lesser of the cost of the mitigation measure or up to 20% of the total amount of disaster damage up to $200,000.
Flood Mitigation Assistance
Repetitive Flood Claims
Severe Repetitive Loss
Hazard Mitigation Grant Program
Projects fall into 3 basic categories: 1) Mitigation Projects, 2)Hazard Mitigation Planning & 3) Administrative Costs
States/local governments located in Presidentially-declared disaster areas. These communities must have significant unmet recovery needs and the capacity to carry out a disaster recovery program
Funds must be used for: “…necessary expenses related to disaster relief, long-term recovery & restoration of infrastructure, housing & economic revitalization…”
Each Activity must:
Address a disaster-related impact (direct or indirect) in a Presidentially-declared county for the covered disaster
Be a CDBG eligible activity (according to regulations and waivers)
Meet a National Objective
1. Benefit persons of low & moderate income,
2. aid in the prevention or elimination of slums or blight
3. or meet other urgent community development needs because existing conditions pose a serious & immediate threat to the health & welfare of the community where other financial resources are not available.
Funds can be used as the non-federal match for FEMA Public Assistance Projects, FEMA Hazard Mitigation Grant Program & USACE projects where not all funding has been fully appropriated to USACE or requires USACE to pay for the entire project.
Funds must supplement, NOT REPLACE, other sources of federal disaster recovery assistance.
Non-competitive, non-recurring Disaster Recover grants that consider unmet needs by other Federal Disaster assistance programs
Examples of Eligible Costs/Uses
Rebuild homes & infrastructure (i.e. [emergency] reconstruction of essential water, sewer, electrical and telephone facilities) damaged by the disaster
Provide assistance to affected business owners (i.e. retain/create jobs)
Residential or commercial property buyouts/Buying damaged properties in a flood plain & relocating residents to safer areas
Floodplain mapping & landuse planning
Elevating, floodproofing, outfitting with roof straps, storm shutters, stronger materials
Debris removal not covered by FEMA
homeownership activities such as down payment assistance, interest rate subsidies & loan guarantees for disaster victims;
Public services (generally limited to no more than 15 percent of the grant);
Planning & administration costs (limited to no more than 20 percent of the grant)
Visit DisasterAssistance.gov to take the Questionnaire and get a personalized list of possible assistance, apply for assistance or check your application status
National Flood Insurance Program
Visit Floodsmart.gov or call 1-888-379-9531
Prepare. Plan. Stay Informed.
Visit Ready.gov (FEMA) or ready.nj.gov (NJ Office of Emergency Management)
Visit the CDC for tips on Emergency Preparedness and Response
At DisasterAssistance.gov, there are over 70 forms of disaster assistance from 17 Federal Agencies available. Click the hyperlinks to certain relief programs:
US Dept of Agriculture
USDA Food and Nutrition Service
USDA Farm Service Agency
USDA NRCS Emergency Watershed Protection Program
US Dept of Labor - Disaster Unemployment Assistance
US Dept of Health & Human Services
Disaster Assistance for Older Americans
Disaster Assistance & Emergency Relief Program (tax counseling & assistance)
Savings Bond Redemption & Replacement
4 Building Blocks of Eligibility - Applicant, Facility, Work, & Cost
Grantee is typically the State
Subgrantees: State agency, local government, American/Native American Indian Tribes, Certain Private Nonprofit organizations or other legal entity to which public assistance funds are awarded.
Public : Roads (non Federal), Sewage Treatment Plants, Airports, Irrigation Channels, Schools Buildings Bridges & Culverts Utilities
Private non-profit Facilities: Educational facilities, Gas, water & power systems, Emergency facilities, Medical facilities, Custodial car facilities, Other essential government services
Work must fit into 1 of the 7 categories defined as Public Assistance
Category A: Debris Removal
Category B: Emergency Protective Measures
Category C: Roads & Bridges
Category D: Water Control Facilities
Category E: Buildings & Equipment
Category F: Utilities
Category G: Parks, Recreational Facilities & Other Facilities
Reasonable costs can be established through historical documentation of similar work, average costs of similar work in the area, published unit costs from national cost estimating database or FEMA cost codes
50% Rule: If the repair cost divided by the replacement cost is less than0.5, then only the repair cost is eligible. If the repair cost divided by the replacement cost is more than or equal to 0.5, then the replacement cost is eligible.
This is a grant program and not simply a reimbursement of funds
Individual Private Property is not generally included in this type of assistance.
Debris on private property rarely meets the public interest standard because it does not affect the public-at-large & often is not the legal responsibility of a State or local government. Debris removal from private property is usually the responsibility of the individual property owner.
Demolition and removal of a private building or structure may qualify if it poses an immediate threat to the safety of the general public
Damage that results from a cause other than the designated event, such as a pre-disaster damaging event, post-disaster damaging event, or work to correct inadequacies that existed prior to the disaster, is not eligible. Damage caused during the performance of eligible work may be eligible
Alternate use – restoration only to the extent necessary to restore the immediate pre-disaster alternative purpose
Inactive – any facility not in active use at time of disaster is in eligible unless applicant to demonstrate otherwise.
Special consideration (i.e. insurance claims, Hazard Mitigation, Historic Preservation, Environmental Compliance)
April 1, 2013 APPLICATION DEADLINE!!!
For FEMA and SBA Assistance
Not filling out an SBA loan application may affect your
eligibility for other Federal disaster relief programs
*REMEMBER TO UPDATE YOUR CONTACT INFORMATION WITH FEMA AS NEEDED*
IF YOU QUALIFY, YOU DO NOT HAVE TO ACCEPT THE LOAN
Some Federal Agencies use SBA information to determine your Community’s Disaster Needs