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Appendix E: Private Nonprofit Facility Eligibility Examples

Below are examples of private nonprofit (PNP) facility eligibility determinations that illustrate how the Public Assistance (PA) Program applies primary-use, shared-space, and structural evaluation criteria.

I. Medical Support Facility Shared-Space Allocations

A. PNP Leases Portion of Facility to For-Profit Service

Parkland Hospital is an eligible PNP that owns a medical office building and leases a portion of it to doctors and laboratories that are providing for-profit services. The for-profit leases are for 70 percent of the floor space, excluding the common area floor space, as defined in this policy.

Financial Ingestion Analysis

  • Eligibility Determination: The building is completely ineligible for PA funding.
  • Regulatory Trigger: Ineligibility occurs because more than 50 percent of the total building space is leased to an ineligible for-profit entity.

B. Support Facility Owned by PNP Hospital

A parking garage is owned by an eligible PNP hospital to support its nearby hospital facility. The ground floor is leased to retail businesses and totals 15 percent of the total space of the garage.

Primary-Use Proration Analysis

  • Eligibility Determination: The facility is eligible based on primary use. Title 44 of the Code of Federal Regulations (C.F.R.) § 206.221(e) authorizes assistance for administrative and support facilities essential to the operation of medical and emergency facilities.
  • Proration Mandate: Because the hospital utilizes more than 50 percent of the parking garage, the structure is eligible strictly due to its functional association with the hospital. However, FEMA assistance must be prorated based on the exact 85 percent of physical space used for the eligible medical parking purpose.

II. Homeowners' Association Multi-Utility Infrastructure

A. Facilities Owned by PNP Homeowners' Association

The Woodlands Homeowners' Association is a PNP organization responsible for providing certain localized community services for a 200-home development. The Homeowners' Association is responsible for the neighborhood streets, a water system, a sewage system, a fire station, a medical clinic, a neighborhood park, a community center, and a recreational lake and dam.

Segregated Component Analysis

The Homeowners' Association provides eligible critical services and therefore operates as an eligible PNP applicant, but the eligibility of each individual asset must be evaluated separately:

Eligible Utility and Emergency Components
  • Utilities: The water and sewage systems meet the definition of an eligible utility and are eligible for assistance.
  • Emergency & Medical Facilities: The fire station and medical clinic are fully eligible as emergency and medical facilities.
  • Neighborhood Access Streets: Streets that directly support the provision of critical services by the PNP are eligible facilities. However, street work eligibility depends on whether the streets have restricted access and the exact type of work involved.
Recreational and Public Access Inclusions
Community Center General Public Rule

Public Access Prerequisite: The community center must be examined closely. If it is primarily used as a gathering place for a variety of social, educational enrichment, and community service activities, it is eligible as a noncritical but essential social service. To preserve eligibility, the facility must serve the general public outside the immediate Homeowners' Association development.

Explicit Component Ineligibility

Recreation Exclusion: The neighborhood lake, dam, and park are completely ineligible PNP facilities because they provide primarily athletic or recreational services.

III. Community Centers vs. Recreational Centers

A. PNP Recreational Center Providing Eligible Services

The PNP Springtown Recreation Center claims that it provides eligible essential social services in addition to its recreation activities. The organization notes that its services now include day care for elderly adults, senior citizen center programs, programs for families of domestic abuse, and shelter workshops. These programs are provided by the recreation center staff and offered 5 days a week. Recreational activities are limited to evenings and weekends, though the entire center is used for the eligible services.

Time-Allocation Analysis

  • Eligibility Determination: The organization would not appear eligible based upon its name and presumed mission alone, necessitating a detailed examination.
  • Operational Time Tracking: In shared cases where space is not permanently dedicated to a single activity, the amount of time dedicated to eligible purposes in those spaces determines eligibility. Therefore, even though the entire facility is utilized, FEMA prorates PA funding based on the exact proportion of total operating time the shared space is dedicated to eligible social services.

B. Recreational Center with Primarily Athletic Services

Westover Recreation Center sponsors a variety of activities and is available for rental on Friday, Saturday, and Sunday evenings to companies, religious groups, clubs, and civic organizations for league parties, office parties, seminars, conferences, and holiday celebrations. The center has rooms set aside for seniors' bridge and occasional workshops for photography, pottery, ceramics, and art. However, the center is primarily oriented to athletics, featuring a large indoor pool, locker rooms, six squash/racquetball courts, a weight/exercise room, and a 9,200-square-foot gymnasium.

Mission Intent Analysis

  • Eligibility Determination: The facility is completely ineligible for PA funding.
  • Typological Exclusion: Although it offers some eligible essential social services, it is first and foremost an athletic facility. It was neither established nor primarily used as a community gathering place for social or educational enrichment. The Articles of Incorporation filed with the state verify it was established for recreational purposes. Because the center is on its face overwhelmingly athletic, it is ineligible, and it is unnecessary to calculate specific time or space percentages.

C. Mixed-Use Community Center with Nominal Fee

Somerset Community Center consists of several meeting rooms, a lending library, a social services room, a health services room, a dining room, an activity area with games and a wide-screen TV, a darkroom, pianos for practice, a ceramics lab, a woodshop, a computer room, sewing machines, an exercise room, and a large foyer. Outside are a fitness trail, garden plots, an outdoor basketball court, a softball field, a gazebo, and a picnic area. A nominal membership fee is charged, and classes are offered alongside numerous seniors' activities, a senior lunch program, health screenings, immunizations, and door-to-door transportation.

Community-Gathering Analysis

  • Eligibility Determination: The facility is an eligible community center.
  • Access Validation: By virtue of the wide range of eligible community center activities, it qualifies as an eligible noncritical structure. While it offers athletic and recreational features, these are minimal in the overall time and space allocated to them, preventing it from being classified as an ineligible recreational center. Because the membership fee is nominal, it meets the standard of serving the general public.

IV. Religious Institution Campuses

A. School Operated by a Religious Institution

The Community Church operates a state-certified private school offering first through eighth grades. The teaching curriculum includes math, science, English, history, physical education, and religious doctrine. The school has an average attendance of 500 students. The campus consists of three distinct buildings: one used primarily for the secular curriculum, one used primarily for religious instruction, and a chapel primarily used for religious worship. Admissions to the school are restricted to members of Community Church.

Separated Building Analysis

FEMA evaluates the three campus structures independently:

  • Secular and Religious Education Buildings: Both buildings are fully eligible as educational facilities. Because educational facilities are classified as providing critical services, the church is not required to apply for an SBA disaster loan before receiving PA funding for permanent work on these structures.
  • The Chapel Facility: The chapel is eligible strictly as a house of worship.
SBA Loan and Admissions Rules

SBA Permanent Requirement: Because houses of worship provide noncritical services, the applicant is required to apply for an SBA disaster loan and receive a determination for permanent work on the chapel before PA funding can be obligated.

Restricted Faith Admissions Exception

Nondiscrimination Rule: The school's restricted admissions process does not affect its eligibility. Pursuant to Stafford Act Section 102(11)(B), no PNP facility is excluded from eligibility because leadership or membership in the organization is limited to people who share a religious faith or practice.

B. Religious Campus with a Dock, Church, and Pastor's Residence

A religious institution owns multiple structures within its campus plot. One of the structures is a dock primarily used for recreation. The buildings include a church that provides routine worship services and a separate pastoral residence.

Component Structure Analysis

FEMA evaluates the campus elements as independent structures:

  • The Church Building: Eligible as a house of worship. Because it provides a noncritical service, the applicant must apply for an SBA loan for permanent work repairs.
  • The Dock Structure: Completely ineligible because its primary use is recreational, which is an ineligible service category.
  • The Pastoral Residence: Completely ineligible for PA grant funding because a private residence does not constitute an eligible PNP service or facility.

FEDERAL REGULATIONS & LAWS CITED

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