Applicants performing restoration work on a  damaged facility may use the opportunity to make additional improvements  while still restoring the facility to its pre-disaster function and capacity.  For example, an applicant might propose laying asphalt on a gravel road or  replacing a firehouse that originally had two bays with one that has three.  Projects that incorporate such improvements are called Improved Projects. For the most  part, these are projects in which the funding for approved work cannot be  tracked within the improved project because of physical changes or  contracting arrangements.
   An improved project may be requested for both  small and large projects, but must be approved by the grantee prior to  construction. Any project that results in a significant change from the  pre-disaster configuration (that is, different location, footprint, or size)  must be reviewed by FEMA prior to construction to ensure completion of the  appropriate environmental and/ or historical review. Grantee approval must be  held pending such review. If an applicant opts to use a code or standard that  does not meet FEMA requirements, the project becomes an improved project.  Federal funding for improved projects is limited to the Federal share of the  estimated costs of the original project or to the Federal share of the actual  costs of completing the improved project, whichever is less, and to the time  limits that would be associated with repairing the damaged facility to its  pre-disaster design. Justified time extensions may be approved. The balance  of the funds is a non-Federal responsibility. Funds to construct the improved  project also can be combined with a grant from another Federal agency and/or  a FEMA- approved alternate project; however, Federal grants cannot be used to  meet the grantee or local cost-share requirement unless the legislation for  the other grant allows such use, e.g., the Community Development Block Grant  (CDBG) program.
   If the original facility is being repaired and  improvements are being added, Section 406 Hazard Mitigation funding may be  applied to the original facility. If the improved project involves a new  facility on the same site or on a different site, Section 406 Hazard  Mitigation funding will not be applied to that project.
   References:   44 CFR §206.203(d)(1)
   Public Assistance Guide, FEMA 322, pages 79,  110-111