1. FEMA: A Primer on How to Obtain Disaster Assistance
Alison Everett, Staff Attorney, LANC-Helpline
July 31, 2018

2. FEMA Overview
FEMA is the Federal Emergency Management Agency. It was established in 1978 and is an agency of the Department of Homeland Security
Its primary purpose is to coordinate the federal response to a disaster within the United States and its territories when local and state resources are insufficient
For individuals and household units affected by the disaster, FEMA provides assistance for uninsured losses
Emergency grants are available for short term recovery
Grant Assistance is intended for necessities and to make a home habitable
Maximum grant is $33,000.00
Loans, through the Small Business Administration, are available for long term recovery
Loans are intended to restore a home to pre-disaster condition
Home loan limit is $200,000.00
Personal property loan limit is $40,000.00
There are 10 FEMA regions within the United States. North Carolina is part of Region 4, which is based in Atlanta
Familiar with process—The state and local government provides the initial response to a disaster, but if the Governor determines that state and local resources are insufficient to address the needs of those affected by the disaster and request the President to make a disaster declaration which allows the federal government to provide assistance
2017 average grant was $7300

3. Available Assistance Through Individuals and Households Program
Funds, in the forms of grants and loans, are available for uninsured, disaster-related expenses and losses, including:
Housing:
Repair, or replacement of permanent housing
Temporary housing
Rent Money for temporary or new housing
Reimbursement of hotel expenses
Other Needs Assistance
Repair or replacement of household items or vehicles
Tools, clothing or equipment used for employment
Computers, supplies, clothing necessary for education
Moving expenses
Fuel
Storage costs
Medical and Dental Expenses
Funeral expenses
Other essential expenses related to recovery from the disaster
First, we’ll talk about grants. Later in the presentation, we’ll talk about SBA loans process and how they intersect
In 2016, which included Matthew response, the average grant was appx $11,300

4. Eligibility Requirements for Emergency Grant Assistance
The applicant must have an uninsured, disaster related loss
Must be a US citizen, non-citizen national, or qualified alien
The home must be located in a designated disaster area
The home must be the applicant’s primary residence
The home must be inaccessible or uninhabitable due to the disaster
FEMA defines habitable as: Safe, Sanitary, and Functional
Talk first about grant assistance.
SBA loans are available to restore homes to pre-disaster condition

5. Ineligibility for Grant Assistance
The applicant has other, adequate rent-free housing available
The applicant’s absence from the home was temporary and he or she was able to return immediately after the disaster
The applicant refused assistance from his or her insurance
The applicant’s losses are business and not personal
The applicant’s residence is located in a designated flood zone and the community does not participate in the National Flood Insurance Program

6. How to Apply
Individuals or households seeking assistance must register with FEMA
Online:
By phone: or TDD
In person at any FEMA Disaster Recovery Center
Individual also encouraged to complete a loan application with the Small Business Administration for assistance with losses not covered by a FEMA grant
There is a filing deadline for every disaster declaration but it is typically extended
Applicants should file as soon as possible even if they are waiting for an insurance settlements
SBA application process longer
Filing deadline extended depending on severity of the disaster.
FEMA won’t act on application until it receives notification of insurance settlement

7. Information Necessary for Application
Social Security Number
Address of the damaged home or apartment
Description of the damage
Information about insurance coverage
Current contact telephone number and mailing address
Bank account and routing numbers for direct deposit of funds
Supporting documentation
Documents may be submitted on a continuing basis as they become available

8. Types of Supporting Documentation
Proof of identity
Copy of Deed. If deed is not available, copies of mortgage statement or real estate tax bill
Copy of Lease. If there is no lease, copies of rent receipts, utility or other bills, tax forms, written statement from owner, school enrollment records, etc.
Copy of Homeowners, Flood, or renters policy
Any correspondence received from the insurance company regarding settlement or denial of claim
Rent receipts or proof of payment for alternative housing
Contractor repair estimates, proof of payment of any home repairs
Proof of moving or storage costs
Proof of medical or dental treatment
Inspection reports, photos or any other proof that the home is uninhabitable

9. Processing an Application
After application is complete, FEMA schedules an appointment with a home inspector
The applicant will receive a written decision within 10 days of the inspection
If the applicant qualifies for a grant, FEMA sends the applicant a check by mail or through direct deposit accompanied simultaneously by a letter explaining how the funds are to be used
The applicant must use the funds as specified and should keep receipts
If the applicant does not qualify for a grant, FEMA sends a dated letter explaining the reasons why the grant request was rejected and notifying the applicant of his or her appeal rights
Failure to use funds as specified is a violation. Applicant may be required to repay any funds used improperly

10. Common Reasons why an Application May be Delayed or Denied
Insufficient proof of the applicant’s identity
Insufficient verification of ownership or occupancy
Insufficient proof that damage was disaster related
pre-existing damage

11. Common Reasons why an Application May be Delayed or Denied (continued)
Insufficient damage
property not uninhabitable
Habitability is defined as safe, sanitary, and functional
Factors that FEMA Considers in Determining Habitability:
Determination by private insurance adjustor
FEMA inspector’s report
Assessments by contractors
Whether the damage affects essential living areas (bedroom, bathroom, kitchen)
Whether the home has running power, gas, water, etc.
Whether the home is occupied, either partially or fully
How quickly the applicant was able to return to the home
We’ll talk about how to challenge some of those findings a bit later

12. Common Reasons why an Application May be Delayed or Denied (continued)
Insufficient proof that loss is uninsured
Insurance claim is still pending
If an insurance settlement is delayed, the applicant may write a letter to FEMA explaining the circumstance, attaching proof of the claim
FEMA may approve a grant, but the grant would be
considered an advance and would need to be repaid
from the insurance settlement
The applicant would still be entitled to additional funds for any uninsured loss
An applicant has 12 months to submit insurance information for review

13. How to Appeal a FEMA Decision
The deadline to appeal is 60 days from the date of FEMA’s decision letter
The appeal must be in writing, signed, dated, and postmarked within the 60 day deadline
The appeal must contain:
Full name, date of birth and place of birth, and current address of the applicant
FEMA application and disaster number (contained in the decision letter)
Statement of why the decision is incorrect
Additional documentation substantiating the loss

14. How to Appeal a FEMA Decision (continued)
The appeal must be:
Notarized
Include a copy of a state ID or driver’s license OR
Include the statement “I hereby declare under penalty of perjury that the foregoing is true and correct”

15. How to Appeal a FEMA Decision (continued)
Documents to submit with the appeal:
Copy of the FEMA decision letter
Proof of identity
Copy of Deed. If deed is not available, copies of mortgage statement or real estate tax bill
Copy of Lease. If there is no lease, copies of rent receipts, utility or other bills, tax forms, written statement from owner, school enrollment records, etc.
Copy of Homeowners, Flood, or renters policy
Any correspondence received from the insurance company regarding settlement or denial of claim
Rent receipts or proof of payment for alternative housing
Contractor repair estimates, proof of payment of any home repairs
Proof of moving or storage costs
Proof of medical or dental treatment
Inspection reports, photos or any other proof that the home is uninhabitable
Same as slide 8 Ideally this is information that should have been submitted with application, but it may not have been available

16. Submitting the Appeal By mail:
FEMA- Individuals and Households Program
National Processing Service Center
P.O. Box 10055
Hyattsville, Maryland
By Fax:
Attention: FEMA

17. Late Appeals An applicant may file a late appeal (after 60 days)
In addition to the other required information, a late appeal must include a statement of why it is late
Acceptable reasons include:
Illness, hospitalization, or disability of the applicant or a family member
Death of an immediate family member
Personal or business travel that kept the applicant out of the area for full 60 day appeal period
Unavailability of contractors
Unacceptable reasons:
Applicant forgot about the deadline
Applicant claims he or she didn’t know about the deadline
Acceptance of a late appeal is discretionary
Beyond the control of the applicant

18. After the Appeal is Filed
FEMA reviews the letter and applicant’s file to determine whether there is sufficient documentation to grant the appeal
If necessary FEMA will contact the applicant and request additional documentation or contact a third party, such as an insurance company or contractor
FEMA may re-inspect
To check on the status of the appeal go to:
Click: “Check Your Application Status”
Or call FEMA at
Re: re-inspection- Initial FEMA inspections tend to be cursory. Often the damage is not accessible or readily apparent in the days immediately after the disaster. The applicant can request a more thorough inspections

19. The Appeal Decision
FEMA must issue a written decision on the appeal within 90 days
There is no right to a further appeal
However, the applicant may file a written request for reconsideration
If there is a change in circumstances
If there is additional documentation available
While appeal is under consideration, applicant can continue to submit documentation

20. Practice Tips
The more documentation an applicant submits with his or her initial application, the more likely their claim will be approved
Submit additional documentation as it becomes available
If an application is denied because the insurance claim is still pending, the applicant should still appeal within the 60 day deadline and submit the insurance settlement when received
FEMA decision letters are not specific. In preparing an appeal, the applicant (or attorney) should request a copy of the FEMA file to determine the specific reason for the denial
FEMA Records Management
National Processing Service Center
P.O. Box 10055
Hyattsville, MD
If an application is denied because FEMA determines a home is habitable because it is occupied, explain why its occupied:
Lack of available affordable or alternative housing
If FEMA is relying on its initial inspection report to deny a claim, the applicant can request a re-inspection
If you’re helping an applicant with an appeal
Request a copy of the file- give you an idea of what information was missing
Our clients don’t always have other housing options. If that’s the case explain that in the appeal
Remember– one of the facts is whether the applicant is able to use essential living areas (bedrooms, kitchen, bathroom) If a client is only sleeping in the home because he or she has no other option but has no use of the kitchen or bathroom, explain that
Initial inspects are often cursory. The home may be inaccessible immediately after the disaster or damage was not initially apparent

21. Practice Tips (continued)
After submitting the application, FEMA may send the applicant a request for more information or documentation
An applicant may misinterpret this request as a formal denial of their claim and file an appeal
FEMA then sends the applicant the formal decision letter denying the claim, but the applicant misinterpret this letter as a denial of their appeal and fails to appeal the decision
Applicants should keep copies of all letter and documents sent to FEMA
Very important to carefully read any correspondence received by FEMA so as not to miss any deadlines
Advise Cl to keep copies of anything they send FEMA

22. Other Considerations
Grant Assistance does not have to be repaid unless FEMA later determines that the recipient was ineligible
Grant Assistance does not affect eligibility for other need based assistance (SNAP, SSI, Medicaid, etc.)
If one member of a household is a US citizen or qualified immigrant, the entire household may be eligible for the Individuals and Households program assistance
All immigrants, regardless of status, are eligible for short term, non cash, in kind, emergency relief (emergency medical care, shelter, food, water, etc.)
Discuss the circumstance under which FEMA may approve a grant prior to insurance settlement later in presentation

23. Links
Catalog of Federal Domestic Assistance Federal Disaster Assistance b=step1&id=1dc6a2308ff5a2ec345b6485f4e4f9ce 44 CFR Part FEMA National Immigration Law Center—Disaster Resources for non citizens

24. Disaster Loans Through the Small Business Administration
Qualifying applicants may receive loans through the SBA for uninsured losses not covered by FEMA grant assistance
SBA loans are intended to assist with long term recovery, as opposed to FEMA grants which cover immediate needs
Insurance proceeds and FEMA grants are deducted from the total loss to determine the loan amount

25. Eligibility
SBA must be able to determine the amount of the uncompensated loss
Have some assurance that the borrower has the financial ability to repay the loan
Have some assurance that the loan can be repaid in the event of default or subsequent loss (proper collateral, appropriate insurance, etc.)

26. Homeowners
Homeowners may apply for SBA loans to cover the costs of restoring the home to its pre-disaster condition or to bring the home in compliance with local building codes
In some cases, additional loan amounts are available for improvements designed to prevent future property damage
Retaining wall to prevent future flood

27. Homeowners (continued)
Refinancing: In some cases, SBA can refinance all or part of a previous mortgage for qualified homeowners
A qualified homeowner is one who:
Cannot obtain credit elsewhere
Has incurred substantial uncompensated disaster damage
Intends to repair the damage

28. For Renters and Homeowners
Personal Property:
Renters and homeowners may apply for loans up to $40, to repair of replace clothing, furniture, cars, appliances, and other personal property damaged or destroyed by the disaster and not otherwise compensated
Relocation: Renters and homeowners may use SBA disaster loan proceeds to relocate. The amount of the relocation loan depends on whether the borrower is moving voluntarily or involuntarily

29. Loan Terms
Interest:
SBA sets the rate of interest based on whether the borrower has the ability to obtain credit elsewhere
Interest is fixed and shall not exceed 4% for borrowers with no available credit or 8% for borrowers with available credit
The current rate of interest for home loans
For borrowers with no available credit is 1.7%
For borrowers with available credit is 3.5%

30. Loan Terms (continued)
Collateral:
Any loan exceeding $25, must be secured to the extent possible. However, no loan will be denied for lack of available collateral
Insurance:
SBA will require borrowers to obtain and maintain appropriate insurance, including flood insurance
Term:
Determined on case by case basis depending on each borrower’s ability to pay
May be as long as 30 years

31. Ineligibility
Applicants who have not complied with terms of previous SBA loans may not be eligible
An applicant can be disqualified for failure to maintain flood or hazard insurance required by a previous SBA loan

32. For Small Business Owners
Disaster Assistance Loans:
SBA provides low income loans to businesses of all sizes to repair or replace:
Real Estate
Personal Property
Machinery and Equipment
Inventory
Fixtures and, leasehold improvements
Business assets that have been damaged or destroyed by a disaster
Economic Injury Disaster Loans:
If a small business located in a declare disaster area suffered substantial economic injury and is unable to meet its obligations to pay ordinary and necessary operating expenses, the business may be entitled to additional loans from SBA to provide working capital
Physical damage is not a requirement

33. How to Apply Apply online with FEMA at www.disasterloan.sba.gov
Or by telephone at
The borrower must submit a complete loan application and a signed and dated IRS Form 4506-T, giving permission for the IRS to provide SBA with the borrowers tax return information
Borrowers should apply immediately, even if an insurance claim is still pending
If a loan is approved for damages that ultimately are covered by an insurance settlement, the insurance settlement is applied to the SBA loan balance, to avoid a duplication of benefits.
SBA issues a written decision on each application within two to three weeks
The decision is a loan authorization letter which contains the loans terms and specifies what the loan proceeds may be used for

34. Denial of an SBA Disaster Relief Loan
SBA disaster relief loans are typically denied due to:
Incomplete application
Poor credit history
Inability to repay based on other obligations
The SBA should not consider any medical debt in determining a borrower’s ability to repay

35. Appealing the Denial of an SBA Disaster Relief Loan
There are two levels of Reconsideration
First Level: The borrower must file a request for reconsideration:
Disaster Assistance Processing and Disbursement Center (DAPDC)
14925 Kingsport Road
Fort Worth, Texas, 76155
Fax
Request must be filed within 6 months of the date of the denial letter
SBA re-assigns the application to a different loan processor who approves the loan or denies the reconsideration
Second Level: If the first reconsideration is denied, the applicant appeals to the DAPDC Director (same address as above)
Request must be filed with 30 days of the date of the first reconsideration denial
SBA reassigns the application to a third loan processor who approves the loan or denies the second reconsideration
There is no further level of appeal; However, the borrower may seek an increase in his or her FEMA grant

36. Links SBA—Disaster Assistance SBA Disaster Assistance Program SOP:
programs/disaster-assistance
SBA Disaster Assistance Program SOP:
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