Timeliness – PNP Facility Eligibility - Legal Responsibility - SBA Loan

Private Nonprofit

HEADNOTES

44 C.F.R. § 206.206 requires appeals to be filed within 60 daysafter the applicant received notice. The Applicant filed its second appeal almost 4 years after the Grantee mailed the first Appeal decision to the Applicant’s last known address. FEMA’s PA Guide states that “facilities established or primarily used for religious… [or] recreational activities are not eligible” for PA. The Applicant was unable to demonstrate its Facilities’ primary use was for an eligible purpose. The record indicates the primary use was for religious services and community recreation. Per 44 C.F.R. § 206.223, an eligible applicant must be legally responsible for the repairs caused by the disaster. FEMA’s PA Guide states, “if the PNP were located in a rented facility, repairs to the facility would not be eligible unless the written lease placed such responsibility on the PNP.” The Applicant’s lease assigns legal responsibility to the owner for repairs resulting from circumstances beyond the tenant’s control. 44 C.F.R. § 206.226(c)(2) states that PNPs that provide other essential services of a governmental nature must first seek a loan from the SBA before requesting PA. Only losses exceeding the SBA loan amount are eligible for PA. The Applicant applied for and received a loan from the SBA, but did not demonstrate its losses exceeded the loan amount.

CONCLUSION

: The Bethel Missionary Outreach Ministries, Inc.’s (Applicant) leased facility is not eligible for Public Assistance (PA) because the Applicant failed to demonstrate: 1) the primary use for the facility was an eligible activity, 2) it was legally responsible for repairs to the facility; and 3) that its losses exceeded the loan amount received from the Small Business Administration (SBA).

AUTHORITIES

Stafford Act § 406(a)(2). 44 C.F.R. §§ 206.206, 206.221(e), 206.222(b), 206.223(a)-(b), 206.226(c)(2). PA Guide, at 10, 11, 14, 25, 32-33 (Oct. 1999). DAP 9521.3, Private Nonprofit Facility Eligibility, at 2 (May 23, 2003).

44 C.F.R. §§ 206.206, 206.221(e), 206.222(b), 206.223(a)-(b), 206.226(c)(2)
Timeliness – PNP Facility Eligibility - Legal Responsibility - SBA Loan