FEMA finds that the Applicant has provided documentation that directly ties its claim for $208,959.06 in FAL overtime costs to the performance of eligible work. Therefore, this appeal is granted. Appeal Letter SENT VIA EMAIL Manuel Laboy Governor's Authorized Representative Government of Puerto Rico P.O. Box 42001 San Juan, PR 00940-2001 Alejandro E. Salgado-Colón Administrator Puerto Rico Public Housing Administration P.O. Box 363188 San Juan, PR 00936-3188 Re: Second Appeal – Puerto Rico Public Housing Administration., PA ID: 000-U94BL-00, FEMA-4473-DR-PR, Grants Manager Project 144849 – Force Account Labor & Equipment Costs Dear Manuel Laboy and Alejandro E. Salgado-Colón: This is in response to the Central Office for Recovery, Reconstruction, and Resiliency’s (Recipient) letter dated July 21, 2023, which transmitted the referenced second appeal on behalf of the Puerto Rico Public Housing Administration (Applicant). The Applicant is appealing the U.S. Department of Homeland Security’s Federal Emergency Management Agency’s denial of funding in the amount of $208,959.06 for force account labor (FAL) costs associated with operating 34 emergency shelters. As explained in the enclosed analysis, I have determined that the Applicant has provided documentation that directly ties its claim for $208,959.06 in FAL overtime costs to the performance of eligible work. Therefore, this appeal is granted. By copy of this letter, I am requesting the Regional Administrator to take appropriate action to implement this determination. Additionally, because the Applicant’s appeal related to a newly submitted vendor invoice is not ripe for a second appeal determination at this time, I am requesting FEMA Region 2 issue a determination adjudicating the substantive merits of the additional requested $370,331.41. This determination is the final decision on this matter pursuant to 44 C.F.R. § 206.206, Appeals. Sincerely, /S/ Robert Pesapane Division Director Public Assistance Division Enclosure cc: David Warrington Regional Administrator FEMA Region 2 Appeal Analysis Background Earthquakes and aftershocks caused severe damage in the Commonwealth of Puerto Rico from December 28, 2019 through July 3, 2020.[1] The Puerto Rico Public Housing Administration (Applicant), a territorial agency, requested Public Assistance (PA) funding for costs associated with contract services it retained to manage 34 emergency shelters for disaster survivors. FEMA prepared Grants Manager Project 144849 to document the work performed and costs claimed. The Applicant provided procurement documents, including emergency services management contracts. FEMA notified the Applicant in September and October 2020 that it needed to work with FEMA on Essential Elements of Information (EEI) questions to continue project development. On July 22, 2021 FEMA notified the Applicant that it must upload the required documentation to the Project EEI section in Grants Portal by August 23, 2021. The Applicant took no action regarding the EEI. FEMA informed the Applicant by Determination Memorandum (DM) dated April 25, 2022 that the Applicant did not provide FEMA with adequate documentation to support its claim. First Appeal The Applicant appealed on June 24, 2022 for $1,123,041.27 and expanded the request to include force account labor (FAL) overtime costs in addition to the previously requested contract costs. The Applicant provided links to contractor invoices and proofs of payment totaling $914,082.21, and to employee timesheets and payroll data totaling $208,959.06. The Central Office for Recovery, Reconstruction and Resiliency (Recipient) submitted the appeal with its support on August 18, 2022. The Recipient noted the Applicant provided detailed Category B expenses which FEMA expected and which were required to support the claim. The Recipient recommended that the matter be remanded for review and eligibility determination. On January 25, 2023, FEMA issued a Request for Information (RFI), seeking timesheets and payroll records to support FAL overtime costs, descriptions of the work performed with samples of daily logs and/or activity reports, and the labor policy in effect during the disaster. The Applicant responded on February 23, 2023 with the predisaster labor policy and the previously provided FAL summary. On March 20, 2023, the FEMA Region 2 Regional Administrator partially granted the appeal, validating contract costs totaling $905,334.53,[2] but noting the Applicant did not substantiate its claimed FAL overtime costs by providing supporting documentation, such as timesheets, payroll records, or activity logs. Second Appeal The Applicant filed a second appeal, reiterating its request for $208,959.06 in FAL overtime costs.[3] The Applicant states that it included a link in its first appeal that contained the information FEMA requested on January 25, 2023, and that it intended, but then failed, to include the link in its RFI response. The Applicant provides a compressed file of documentation that it asserts substantiates the FAL overtime claim, including timesheets, daily logs, and activity reports. The Recipient transmitted the appeal to FEMA, expressing its support. Discussion FEMA is authorized to provide PA funding for costs related to emergency sheltering for disaster survivors, including eligible shelter services and shelter staff costs.[4] FAL overtime costs for budgeted employees performing emergency work may be eligible.[5] Documentation to support FAL costs includes a representative sample of timesheets and daily logs/activity reports.[6] To be eligible, costs must be directly tied to the performance of eligible work.[7] Here, the Applicant requests FAL overtime costs, stating that the employees performed work related to its emergency sheltering. On second appeal, the Applicant provides new documentation that includes timesheets, daily logs, and activity reports. These documents demonstrate that all the FAL costs are overtime and that the costs are directly tied to the performance of eligible work such as interviewing sheltered families to determine needs and processing housing applications for elderly survivors.[8] Conclusion