Chapter 4 › II.B.3.ii–iv Construction, Leased and Federal Facilities

Who is responsible if the facility was under construction, leased, or federally owned?

FEMA term

Facilities under contract for construction; leased facilities; federal facilities

Short answer

FEMA reads the agreement. For facilities under construction, it checks the contract for who handles disaster repairs, builder’s risk insurance, a force majeure clause, and when responsibility transfers back to the owner. For leased facilities, the lease decides; if it is silent, the owner is responsible. Facilities owned and maintained by federal agencies are ineligible.

What FEMA requires

Under construction: FEMA checks whether the contract makes the contractor or owner responsible for disaster-related repairs, requires a builder’s risk policy, has a force majeure clause relieving the contractor of responsibility for damage beyond its control, or says when responsibility transfers back to the owner.
Leased facilities: whether you own and lease out the facility or lease it from someone else, the lease decides who must repair disaster damage. If it doesn’t say, the owner is responsible.
Federal facilities: facilities owned and maintained by federal agencies are ineligible. If a federal agency built a facility and formally designated you as responsible for its operation, maintenance and repairs, FEMA reviews that agency’s authority and the agreement.

<table class="pt-table"><thead><tr><th>Situation</th><th>What FEMA reviews</th><th>Who is responsible</th></tr></thead><tbody><tr><td>Under construction</td><td>The construction contract</td><td>Whoever the contract makes responsible for disaster repairs</td></tr><tr><td>Leased, lease names a party</td><td>The lease agreement</td><td>The party the lease makes responsible</td></tr><tr><td>Leased, lease is silent</td><td>The lease agreement</td><td>The owner</td></tr><tr><td>Lease between two eligible applicants</td><td>The lease agreement</td><td>Funding goes to the one legally responsible</td></tr><tr><td>Federally owned and maintained</td><td>Ownership</td><td>Not eligible</td></tr><tr><td>Built by a federal agency, applicant formally designated responsible</td><td>The agency’s authority and the agreement</td><td>The entity the agreement designates</td></tr></tbody></table>

Documentation

The construction contract (required for facilities under construction), the lease agreement (required for leased facilities), and for facilities built by a federal agency, that agency’s authority and the agreement designating you as responsible for operation, maintenance and repair.

Watch out · Govstar practitioner advice

If the contractor carried builder’s risk insurance, or the contract puts disaster repairs on the contractor, FEMA will look there first. Read the risk, insurance and force majeure clauses before you claim the work.

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.