Chapter 12 › II. Stafford Act Section 705

Can FEMA take money back years after a project closes?

FEMA term

Stafford Act Section 705

Short answer

Section 705 limits that. Except for fraud, FEMA must give notice of intent to recover funds from a government recipient or subrecipient within 3 years of the recipient’s certification of project completion. Even within 3 years, FEMA can’t recover funds when the payment meets Section 705’s conditions. It doesn’t protect private nonprofits.

What FEMA requires

The 3-year clock runs from the date the recipient submitted the certification of project completion to FEMA.
Within 3 years, Section 705(c) bars recovery when the payment was authorized by an approved agreement, the costs were reasonable, and the purpose of the grant was accomplished.
Details are in FEMA Recovery Policy FP 205-081-2, Stafford Act Section 705, Disaster Grant Closeout Procedures.
Appeal deadlines still apply to Section 705 claims.

Documentation

The completion certification date, the approved project documents, and evidence costs were reasonable and the work achieved its purpose.

Watch out · Govstar practitioner advice

In second-appeal decisions, Section 705 claims most often fail on timeliness (including late recipient transmittals), nonprofit status, or noncompliance that means the purpose wasn’t accomplished, such as unapproved scope changes, work started before environmental review, or procurement violations.

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.