44 C.F.R. § 206.206(c)(1) requires applicants to submit appeals within 60 days of receiving notice of the appealable action. The record establishes that the Applicant did not receive notice of the appealable action until January 26, 2016. Thus, its February 5, 2016 first appeal was filed within the required 60-day timeframe. 44 C.F.R. § 206.253(b)(2) provides that if a facility insured under a blanket insurance policy is damaged in a future similar other than flood disaster, eligible costs will be reduced by the amount of eligible damage sustained in the previous disaster. The RA correctly determined that the Applicant used blanket coverage to meet its prior insurance requirements, thus FEMA was required to reduce eligible costs by the amount of prior eligible damage sustained in the previous similar other than flood disasters. Stafford Act § 705(c) bars FEMA from deobligating any payment to a State or local government if the payment was authorized in an approved agreement specifying the costs, the costs were reasonable, and the purpose of the grant was accomplished. FEMA Recovery Policy FP 205-081-2, Stafford Act Section 705, Disaster Grant Closeout Procedures, states FEMA will adjust and correct funding based on supported costs (e.g., insurance reductions applied to prevent duplicated benefits) prior to determining if Stafford Act § 705(c) applies. The Applicant correctly argues that prior loss reductions do not fall within the category of project cost adjustments that are excluded from the protections of Stafford Act § 705(c). In addition, FEMA is barred from recovering the funding at issue because all three conditions of Stafford Act § 705(c) are met.

The appeal is granted, and $14,865.66 in funds will be reinstated in PW 5548.

Stafford Act §§ 406(f)(1), 423, 705(c) 44 C.F.R. §§ 206.206(c)(1), 206.228(a)(2)(ii), 206.253(b)(2). FP 205-081-2, Stafford Act Section 705, Disaster Grant Closeout Procedures, at 4–5. PA Guide, at 97. 44 Fed. Reg. 64560. The Opportunity Ctr., Inc., FEMA-1539-DR-FL, at 3. Miami-Dade Cty., FEMA-1345-DR-FL, at 2. City of Pompano Beach, FEMA-1609-DR-FL, at 4–5. Terrebonne Par. Consol. Gov’t, FEMA-1786-DR-LA, at 3–4. Broward Cty. Sch. Bd. of Fla., FEMA-1609-DR-FL, at 6–7.