PAPPG Appendix E: Private Nonprofit Facility Eligibility Examples

Appendix E › IV, VII, VIII Homeowners’ Association; Religious School; Religious Campus

How does FEMA treat a homeowners’ association, or a church with a school, chapel and residence?

PNP eligibility examples: homeowners’ associations and religious institutions

pp. 283–285

Short answer

FEMA evaluates each structure separately. A homeowners’ association providing critical services is an eligible nonprofit: its water, sewer, fire station and clinic qualify, but its lake, dam and park don’t. On a church campus, school buildings qualify as education, the church or chapel as a house of worship (with an SBA loan application), while a recreational dock and the pastor’s residence don’t.

What FEMA requires

Each facility or building is evaluated separately, even on the same campus.
A homeowners’ association that provides eligible critical services is an eligible nonprofit; each of its services is then judged on its own. Street work eligibility depends on whether streets have restricted access and the type of work. A community center must serve the general public outside the association.
Buildings used for secular or religious education at a state-certified private school are eligible educational facilities providing critical services, so no SBA loan application is needed for their permanent work.
Houses of worship are eligible but provide noncritical services, so an SBA loan application is required for permanent work.
Under Stafford Act Section 102(11)(B), no nonprofit facility is excluded because leadership or membership is limited to people who share a religious faith or practice.
Recreational structures and private residences are not eligible.

<table class="pt-table"><thead><tr><th>Facility</th><th>FEMA’s result</th><th>SBA loan needed for permanent work?</th></tr></thead><tbody><tr><td>HOA water and sewer systems</td><td>Eligible (utility)</td><td>No (critical service)</td></tr><tr><td>HOA fire station and medical clinic</td><td>Eligible (emergency and medical)</td><td>No (critical service)</td></tr><tr><td>HOA streets supporting its critical services</td><td>Eligible facility; work eligibility depends on access restrictions and type of work</td><td>Not addressed in the example</td></tr><tr><td>HOA community center</td><td>Eligible only if primarily a varied community gathering place that serves the public beyond the HOA</td><td>Yes (noncritical service)</td></tr><tr><td>HOA lake, dam and park</td><td>Not eligible (primarily recreational)</td><td>Not applicable</td></tr><tr><td>Church school buildings (secular and religious instruction)</td><td>Eligible (education)</td><td>No (critical service)</td></tr><tr><td>Chapel or church</td><td>Eligible (house of worship)</td><td>Yes (noncritical service)</td></tr><tr><td>Recreational dock</td><td>Not eligible</td><td>Not applicable</td></tr><tr><td>Pastor’s residence</td><td>Not eligible (private residence)</td><td>Not applicable</td></tr></tbody></table>

Documentation

A list of each structure and the service it provides, state certification for private schools, evidence of public access for community centers, and SBA loan applications for noncritical facilities such as houses of worship.

Watch out · Govstar advice

Limiting admission or membership to members of a faith does not disqualify a religious school or house of worship. But each building is judged on its own use, so map every structure on the campus to its primary service.

PAPPG v5.0 pp. 283–285 · Appendix E examples IV, VII and VIII · Stafford Act § 102(11)(B)

Read this in the PAPPG

Appendix E › II, V, VI Recreation and Community Centers

When does FEMA treat a nonprofit center as an eligible community center rather than an ineligible recreation center?

PNP eligibility examples: recreation and community centers

pp. 282–284

Short answer

It depends on what the center was established for and how it is actually used, not its name. A “recreation center” running senior, day care and family programs most of the week can qualify, prorated by eligible use time. A center built around pools, courts and a gym is ineligible even with some senior activities. A broad community center with minimal recreation and a nominal fee is eligible.

What FEMA requires

Facilities established or primarily used for athletic or recreational activities are ineligible community centers.
An eligible community center is established and primarily used as a gathering place for a variety of social, educational enrichment and community service activities.
Where space isn’t dedicated to one activity, the share of time used for eligible purposes decides eligibility and the level of assistance, so funding may be prorated even when the whole facility is used for eligible services.
FEMA looks at the organization’s founding documents, such as articles of incorporation filed with the state, and at routine use.
A nominal membership fee does not stop a facility from being open to the public.

<table class="pt-table"><thead><tr><th>Example</th><th>Facts</th><th>FEMA’s result</th></tr></thead><tbody><tr><td>Springtown Recreation Center</td><td>Despite its name, runs elder day care, senior programs, domestic abuse family programs and sheltered workshops five days a week; recreation only evenings and weekends</td><td>Can be eligible after detailed review; funding prorated by the share of time used for eligible services</td></tr><tr><td>Westover Recreation Center</td><td>Large pool, courts, weight room and gym; rented for parties and conferences; some senior card games and art workshops; incorporated for recreation</td><td>Not eligible: on its face overwhelmingly athletic and recreational, so no time or space calculation is needed</td></tr><tr><td>Somerset Community Center</td><td>Library, social and health services, senior lunches, classes, health screenings, transport; some exercise; nominal membership fee</td><td>Eligible community center: recreation is minimal, and the nominal fee keeps it open to the public</td></tr></tbody></table>

Documentation

Articles of incorporation and bylaws, a calendar of activities showing day-to-day use, schedules showing time spent on eligible services in shared spaces, floor plans by use, and the membership fee and waiver policy.

Watch out · Govstar advice

Articles of incorporation carry real weight. If your organization was founded for recreation but now mainly provides social services, document the change with board actions, program calendars and attendance before a disaster, not after.

PAPPG v5.0 pp. 282–284 · Appendix E examples II, V and VI

Read this in the PAPPG

Appendix E › I, III Leased Space; Support Facility

How does FEMA treat a nonprofit building that is partly leased out, or a support facility like a parking garage?

PNP eligibility examples: leased portions and support facilities

pp. 282–283

Short answer

Primary use decides it. In FEMA’s examples, a nonprofit hospital’s medical office building leased 70 percent to for-profit doctors and labs is ineligible, because more than half the space serves an ineligible use. A hospital parking garage with 15 percent retail is eligible as a support facility, with funding prorated to the share used for hospital parking.

What FEMA requires

Leased portion: if a nonprofit owns a facility and leases 50 percent or more to an ineligible applicant or for ineligible services, the facility is ineligible. Common areas are excluded from the calculation.
Support facilities: 44 CFR 206.221(e) covers administrative and support facilities essential to the operation of medical and emergency facilities. A support facility used more than 50 percent for the eligible purpose is eligible, with funding prorated to that share.
See Chapter 3, sections V.D–I, for the mixed-use and multiple-entity rules these examples apply.

<table class="pt-table"><thead><tr><th>Example</th><th>Facts</th><th>FEMA’s result</th></tr></thead><tbody><tr><td>Hospital medical office building</td><td>PNP hospital owns it; 70% of floor space (excluding common areas) leased to for-profit doctors and labs</td><td>Not eligible: more than 50% leased to an ineligible use</td></tr><tr><td>Hospital parking garage</td><td>PNP hospital owns it to support its hospital; 15% of space leased to retail</td><td>Eligible as a support facility, because over 50% serves the hospital; funding prorated to the parking share</td></tr></tbody></table>

Documentation

Floor plans with square footage by use and tenant (excluding common areas), leases, and documentation showing how a support facility serves the eligible primary facility.

Watch out · Govstar advice

A support facility is only eligible because of the critical facility it serves. The parking garage qualifies because of the hospital; the same garage owned by a nonprofit with only noncritical services would not.

PAPPG v5.0 pp. 282–283 · Appendix E examples I and III · 44 CFR 206.221(e)

Read this in the PAPPG