Under 44 C.F.R. § 13.30(d)(1), applicants or grantees must obtain prior approval from FEMA whenever there is a revision of the scope of a project. The PA Guide provides that prior approval is necessary for FEMA to conduct historic preservation reviews. FEMA approved funding for a culvert replacement and the Applicant instead built a bridge without receiving prior approval from FEMA. This prevented FEMA from conducting necessary historic preservation reviews. Stafford Act section 705(c) bars FEMA from deobligating previously awarded funding if: 1) the payment was authorized by an approved agreement specifying the costs; 2) the costs were reasonable; and 3) the purpose of the grant was accomplished. If any Applicant does not comply with a term of the award, then section 705(c) does not apply. FEMA typically determines if the applicant accomplished the grant’s purpose during closeout. In this case, the Region deobligated all funding at closeout because the Applicant did not comply with PW 3076 when it built a bridge without getting prior approval from FEMA.

The Applicant changed the SOW without prior approval from FEMA, preventing FEMA from conducting necessary EHP reviews. At closeout, FEMA determined the purpose of the grant was not accomplished and deobligated all funding. In this case, section 705(c) does not bar FEMA from recovering funding, and the second appeal is denied.

Stafford Act § 705(c). 44 C.F.R. § 13.30(c)(2), 13.43(a)(2)-(3). PA Guide, 139-40. FEMA Recovery Policy, FP-205-081-2, Stafford Act Section 705(c), Disaster Grant Closeout Procedures, at 4-6.