Chapter 8 › IV.C Alternate Project

Can we use the funds for a different facility instead of rebuilding the damaged one?

FEMA term

Alternate project (capped)

Short answer

Yes, with FEMA approval, if restoring the original function doesn’t serve the public welfare. Funds go to a permanent work project benefiting the public in the same general area, capped at the lesser of the federal share of the restoration estimate or of actual costs.

What FEMA requires

Allowed uses: repairing, expanding, mitigating or building other eligible facilities; demolition; capital equipment of $10,000 or more per unit; covering flood insurance reductions in flood hazard areas; supplementing an improved project; and cost-effective mitigation.
Not allowed: budget shortfalls, community plans, landscaping, operating expenses, items under $10,000, the non-federal share of any PA project, buyouts, projects using other federal grants, or projects in a floodway.
Construction needs FEMA approval before it starts, for environmental compliance.
Mitigation included in the original scope is dropped from the alternate project cap.
Temporary facility costs stop when you request an alternate project.

Documentation

Your request explaining why restoration doesn’t serve the public, the alternate project scope and location, and FEMA approval.

Watch out · Govstar practitioner advice

Requesting an alternate project ends temporary facility funding for that service. Time the request accordingly.

Govstar summarizes FEMA’s Public Assistance Program and Policy Guide in plain language and links to the official text. Govstar is independent and not affiliated with FEMA. This is general guidance, not legal advice.