This is in response to a letter from your office dated April 27, 2016, which transmitted the referenced second appeal on behalf of the University of Texas Medical Branch (Applicant). The Applicant is appealing the Department of Homeland Security’s Federal Emergency Management Agency’s (FEMA) denial of funding in the amount of $12,248,641.00 for permanent modifications to the hot water system of the Healthcare Core Complex. As explained in the enclosed analysis, I have determined that the proposed items of work are not required as a direct result of the disaster but rather, are modifications to address pre-existing inadequacies in the system. The facility’s predisaster function of delivery of safe, usable hot water, was restored through the permanent installation of a Copper-Silver Ionization system. Accordingly, I am denying this appeal. Please inform the Applicant of my decision. This determination is the final decision on this matter pursuant to 44 C.F.R. § 206.206, Appeals.