Article 73: Alternate Projects

(Category: facility-restore)

Article Summary

When restoring a damaged facility is no longer in the public interest, applicants may redirect funds to an Alternate Project (e.g., constructing a new facility, purchasing capital equipment, or demolition). Alternate projects must be within the declared disaster area, requested within 12 months of the Kickoff Meeting, and approved by FEMA prior to construction. Funding is capped at 90% of the federal share for governmental entities and 75% for PNPs.

Five Key Takeaways for CTA FEMA Compliance

1. Observe the 12-Month Submission Deadline: Submit all formal Alternate Project proposals within 12 months of your initial Kickoff Meeting; late submissions are automatically rejected.
2. Factor Statutory Funding Reductions Into Budgets: Align financial projections with the reduction to 90% (for public entities) or 75% (for PNPs) of the original project’s federal share.
3. Ban Alternate Projects from Regulatory Floodways: Ensure any newly proposed facility or equipment staging site is located entirely outside of designated regulatory floodways.
4. Maintain Flood Insurance for Floodplain Placements: Secure and maintain compliant flood insurance if your approved alternate project is constructed inside a 100-year floodplain.
5. Prohibit Usage for Local Matches or Operations: Establish accounting barriers ensuring alternate project funds are never spent on daily operating costs or utilized to satisfy the local matching share of other federal grants.

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