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?

FEMA term

PNP eligibility examples: leased portions and support facilities

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 practitioner 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.

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.