‍Chapter 2: Coordination and Appeal Rights

FEMA and recipients work in partnership to administer the Public Assistance (PA) Program and provide customer service to each applicant. This chapter defines how FEMA documents its eligibility determinations and explains applicants' rights to appeal decisions by FEMA.

I. PA Eligibility

The four basic components of PA eligibility are applicant, facility, work, and cost. FEMA refers to these components as the building blocks of the eligibility pyramid. FEMA evaluates each building block to determine eligibility, starting at the foundation (applicant) and working up to cost at the top of the pyramid.

Comprehensive Review Process

FEMA follows a comprehensive process based on specific information and documentation submitted by applicants to verify the "who, what, when, where, why, and how much" needed to support each claim. If an applicant cannot demonstrate eligibility for any of the four components, FEMA will not be able to approve PA funding.

Pyramid Evaluation Exceptions

There are two exceptions to the standard eligibility pyramid review process:

• SLTT Government Applicants: Evaluating facility eligibility is not a necessary step for debris removal or most emergency protective measures.
• Private Nonprofit Organizations: FEMA must determine whether the PNP owns or operates a facility that provides an eligible service to determine whether the applicant itself is eligible.

Application Streamlining Methods

Simplified Procedures

Section 422 of the Robert T. Stafford Act allows simplified procedures for small projects to speed up recovery and lower administrative burdens. Applicants can submit summary documentation and self-certify rather than providing a burdensome amount of records prior to funding obligation.

Record Retention Window

Audit Notice: Applicants must retain all source documentation, including project eligibility records and financial records, for 3 years after the date the recipient submits the certification of completion for the applicant's last small project to FEMA.

Sampling Procedures

FEMA uses the Government Accountability Office (GAO) approach to sampling to increase program efficiency. When applicants have a significant number of documents or damaged sites, they may submit a summary, and FEMA will select a representative sample to validate for document reviews or site inspections.

II. Dispute Resolution and RFIs

Most PA projects are free of eligibility disputes, but open communication is intended to resolve misconceptions quickly.

A. Facilitated Discussions

When discussions reach an impasse, PA staff may offer the opportunity to participate in a facilitated discussion led by a trained FEMA alternative dispute resolution specialist to find avenues for resolution.

B. Requests for Information

Regulatory Response Windows

During the PA process, FEMA requests missing data by submitting a Request for Information (RFI). FEMA establishes the deadline based on the nature of the request, providing a minimum of 15 days to respond.

Consequences of Non-Compliance

Denial Notice: If an applicant fails to meet the deadline and does not receive an approved time extension from FEMA, FEMA will deny assistance for the applicant, facility, work, or costs that cannot be verified due to the missing information.

III. Ineligibility Determinations and Appeals

A. Notification of Ineligibility

If FEMA determines that any eligibility component is missing, it provides electronic notice through a determination memorandum or letter containing the explanation of denied assistance, the specific regulatory basis for the denial, and details on appeal rights.

B. Appeal Rights and Requirements

Applicants may appeal any FEMA determination related to an application for assistance under the PA Program, including eligibility denials or time extension denials.

The Two-Tiered Appeal Structure

FEMA provides two opportunities for formal administrative appeal:

1. First Appeal: Submitted through the recipient to the FEMA Regional Administrator.
2. Second Appeal: If the first appeal is partially or fully denied, the applicant may submit a second appeal through the recipient to the Assistant Administrator for the Recovery Directorate at FEMA Headquarters.

Mandatory Written Elements

All appeals must be in writing and submitted electronically through the Grants Portal. The appeal must include documented justification, the specific funding amount in dispute, and specify the provisions of law, regulation, or policy with which the determination was inconsistent.

Appeal Deadlines

Submission and Forwarding Windows

• Applicant Deadline: Applicants must submit an appeal to the recipient within 60 days from the date FEMA transmits an eligibility determination or first appeal decision.
• Recipient Deadline: The recipient must forward the appeal with its written recommendation to FEMA within 120 days from the date FEMA transmits its determination or first appeal decision.

Holiday and Weekend Extensions

Timing Exception: If the 60th or 120th day falls on a Saturday, Sunday, or federal holiday, FEMA accepts it as timely if received by the first business day after the deadline. Missing either deadline results in a denial of the appeal as untimely.

Appeal Decisions

FEMA must provide its appeal decision simultaneously to the recipient and applicant within 90 days of receiving the appeal. If FEMA requests more information via an RFI or technical expert review, it will issue the decision within 90 days of receiving the data or the technical recommendations. Second appeal decisions represent the Agency's final administrative decision.

IV. Arbitration

A. Arbitration Criteria

Applicants have the option to submit a request for arbitration to the Civilian Board of Contract Appeals (CBCA) if all the following conditions apply:

• The amount in dispute is greater than $500,000, or greater than $100,000 for an applicant requesting assistance in a rural area.
• The applicant and recipient submitted a first appeal to FEMA by the first appeal deadline.
• FEMA denied the first appeal or failed to issue a decision within 180 days of receiving it.

B. Execution Timelines

Applicants must file a request for arbitration within 60 calendar days from the date FEMA transmits its first appeal decision. If choosing arbitration due to a missing 180-day decision, applicants must withdraw their first appeal and submit the arbitration request within 30 days of that withdrawal. Applicants may submit a second appeal or arbitration request, but not both; the CBCA decision constitutes the final administrative decision.

Non-Reimbursable Arbitration Costs

Expense Notice: The CBCA arbitrates at no cost to the parties, but each party is directly responsible for its own expenses, including attorney's fees, representative fees, and copying costs. These costs are entirely ineligible for FEMA funding.

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