FEMA A Primer on How to Obtain Disaster

FEMA: A Primer on How to Obtain Disaster Assistance Alison Everett, Staff Attorney, LANC-Helpline July 31, 2018

FEMA Overview � � � FEMA is the Federal Emergency Management Agency. It was established in 1978 and is an agency of the Department of Homeland Security Its primary purpose is to coordinate the federal response to a disaster within the United States and its territories when local and state resources are insufficient For individuals and household units affected by the disaster, FEMA provides assistance for uninsured losses ◦ Emergency grants are available for short term recovery � Grant Assistance is intended for necessities and to make a home habitable � Maximum grant is $33, 000. 00 ◦ Loans, through the Small Business Administration, are available for long term recovery � Loans are intended to restore a home to pre-disaster condition � Home loan limit is $200, 000. 00 � Personal property loan limit is $40, 000. 00 � There are 10 FEMA regions within the United States. North Carolina is part of Region 4, which is based in Atlanta

Available Assistance Through Individuals and Households Program � Funds, in the forms of grants and loans, are available for uninsured, disaster-related expenses and losses, including: ◦ Housing: � Repair, or replacement of permanent housing � Temporary housing � Rent Money for temporary or new housing � Reimbursement of hotel expenses ◦ Other Needs Assistance � Repair or replacement of household items or vehicles � Tools, clothing or equipment used for employment � Computers, supplies, clothing necessary for education � Moving expenses � Fuel � Storage costs � Medical and Dental Expenses � Funeral expenses � Other essential expenses related to recovery from the disaster

Eligibility Requirements for Emergency Grant Assistance � The applicant must have an uninsured, disaster related loss � Must be a US citizen, non-citizen national, or qualified alien � The home must be located in a designated disaster area � The home must be the applicant’s primary residence � The home must be inaccessible or uninhabitable due to the disaster ◦ FEMA defines habitable as: Safe, Sanitary, and Functional

Ineligibility for Grant Assistance � The applicant has other, adequate rent-free housing available � The applicant’s absence from the home was temporary and he or she was able to return immediately after the disaster � The applicant refused assistance from his or her insurance � The applicant’s losses are business and not personal applicant’s residence is located in a designated flood zone and the community does not participate in the National Flood Insurance Program

How to Apply � Individuals or households seeking assistance must register with FEMA � Online: www. disasterassistance. gov � By phone: 1 -800 -621 -3362 or TDD-800 -462 -7585 � In person at any FEMA Disaster Recovery Center � Individual also encouraged to complete a loan application with the Small Business Administration for assistance with losses not covered by a FEMA grant � There is a filing deadline for every disaster declaration but it is typically extended � Applicants should file as soon as possible even if they are waiting for an insurance settlements

Information Necessary for Application � Social Security Number � Address of the damaged home or apartment � Description of the damage � Information about insurance coverage � Current contact telephone number and mailing address � Bank account and routing numbers for direct deposit of funds � Supporting documentation ◦ Documents may be submitted on a continuing basis as they become available

Types of Supporting Documentation ◦ Proof of identity ◦ Copy of Deed. If deed is not available, copies of mortgage statement or real estate tax bill ◦ Copy of Lease. If there is no lease, copies of rent receipts, utility or other bills, tax forms, written statement from owner, school enrollment records, etc. ◦ Copy of Homeowners, Flood, or renters policy ◦ Any correspondence received from the insurance company regarding settlement or denial of claim ◦ Rent receipts or proof of payment for alternative housing ◦ Contractor repair estimates, proof of payment of any home repairs ◦ Proof of moving or storage costs ◦ Proof of medical or dental treatment ◦ Inspection reports, photos or any other proof that the home is uninhabitable

Processing an Application � After application is complete, FEMA schedules an appointment with a home inspector � The applicant will receive a written decision within 10 days of the inspection � If the applicant qualifies for a grant, FEMA sends the applicant a check by mail or through direct deposit accompanied simultaneously by a letter explaining how the funds are to be used ◦ The applicant must use the funds as specified and should keep receipts � If the applicant does not qualify for a grant, FEMA sends a dated letter explaining the reasons why the grant request was rejected and notifying the applicant of his or her appeal rights

Common Reasons why an Application May be Delayed or Denied � Insufficient proof of the applicant’s identity � Insufficient verification of ownership or � Insufficient proof that damage was disaster occupancy related ◦ pre-existing damage

Common Reasons why an Application May be Delayed or Denied (continued) � Insufficient damage ◦ property not uninhabitable ◦ Habitability is defined as safe, sanitary, and functional Factors that FEMA Considers in Determining Habitability: Determination by private insurance adjustor FEMA inspector’s report Assessments by contractors Whether the damage affects essential living areas (bedroom, bathroom, kitchen) ◦ Whether the home has running power, gas, water, etc. ◦ Whether the home is occupied, either partially or fully ◦ How quickly the applicant was able to return to the home ◦ ◦

Common Reasons why an Application May be Delayed or Denied (continued) � Insufficient proof that loss is uninsured ◦ Insurance claim is still pending ◦ If an insurance settlement is delayed, the applicant may write a letter to FEMA explaining the circumstance, attaching proof of the claim ◦ FEMA may approve a grant, but the grant would be considered an advance and would need to be repaid from the insurance settlement ◦ The applicant would still be entitled to additional funds for any uninsured loss �An applicant has 12 months to submit insurance information for review

How to Appeal a FEMA Decision � The deadline to appeal is 60 days from the date of FEMA’s decision letter � The appeal must be in writing, signed, dated, and postmarked within the 60 day deadline The appeal must contain: ◦ Full name, date of birth and place of birth, and current address of the applicant ◦ FEMA application and disaster number (contained in the decision letter) ◦ Statement of why the decision is incorrect ◦ Additional documentation substantiating the loss

How to Appeal a FEMA Decision (continued) � The appeal must be: ◦ Notarized ◦ Include a copy of a state ID or driver’s license �OR ◦ Include the statement “I hereby declare under penalty of perjury that the foregoing is true and correct”

How to Appeal a FEMA Decision (continued) � Documents to submit with the appeal: ◦ Copy of the FEMA decision letter ◦ Proof of identity ◦ Copy of Deed. If deed is not available, copies of mortgage statement or real estate tax bill ◦ Copy of Lease. If there is no lease, copies of rent receipts, utility or other bills, tax forms, written statement from owner, school enrollment records, etc. ◦ Copy of Homeowners, Flood, or renters policy ◦ Any correspondence received from the insurance company regarding settlement or denial of claim ◦ Rent receipts or proof of payment for alternative housing ◦ Contractor repair estimates, proof of payment of any home repairs ◦ Proof of moving or storage costs ◦ Proof of medical or dental treatment ◦ Inspection reports, photos or any other proof that the home is uninhabitable

Submitting the Appeal � By mail: ◦ FEMA- Individuals and Households Program National Processing Service Center P. O. Box 10055 Hyattsville, Maryland 20782 -7055 By Fax: ◦ 1 -888 -827 -8112 -Attention: FEMA

Late Appeals � An applicant may file a late appeal (after 60 days) ◦ In addition to the other required information, a late appeal must include a statement of why it is late ◦ Acceptable reasons include: �Illness, hospitalization, or disability of the applicant or a family member �Death of an immediate family member �Personal or business travel that kept the applicant out of the area for full 60 day appeal period �Unavailability of contractors Unacceptable reasons: � Applicant forgot about the deadline � Applicant claims he or she didn’t know about the deadline Acceptance of a late appeal is discretionary

After the Appeal is Filed � FEMA reviews the letter and applicant’s file to determine whethere is sufficient documentation to grant the appeal � If necessary FEMA will contact the applicant and request additional documentation or contact a third party, such as an insurance company or contractor � FEMA � To may re-inspect check on the status of the appeal go to: ◦ www. disasterassistance. gov ◦ Click: “Check Your Application Status” ◦ Or call FEMA at 1 -800 -621 -3362

The Appeal Decision � FEMA must issue a written decision on the appeal within 90 days � There is no right to a further appeal � However, the applicant may file a written request for reconsideration ◦ If there is a change in circumstances ◦ If there is additional documentation available

� � � Practice Tips The more documentation an applicant submits with his or her initial application, the more likely their claim will be approved ◦ Submit additional documentation as it becomes available If an application is denied because the insurance claim is still pending, the applicant should still appeal within the 60 day deadline and submit the insurance settlement when received FEMA decision letters are not specific. In preparing an appeal, the applicant (or attorney) should request a copy of the FEMA file to determine the specific reason for the denial ◦ FEMA Records Management National Processing Service Center P. O. Box 10055 Hyattsville, MD 20782 -8055 � If an application is denied because FEMA determines a home is habitable because it is occupied, explain why its occupied: ◦ Lack of available affordable or alternative housing � If FEMA is relying on its initial inspection report to deny a claim, the applicant can request a re-inspection

Practice Tips (continued) � After submitting the application, FEMA may send the applicant a request for more information or documentation ◦ An applicant may misinterpret this request as a formal denial of their claim and file an appeal ◦ FEMA then sends the applicant the formal decision letter denying the claim, but the applicant misinterpret this letter as a denial of their appeal and fails to appeal the decision Applicants should keep copies of all letter and documents sent to FEMA

Other Considerations � � Grant Assistance does not have to be repaid unless FEMA later determines that the recipient was ineligible Grant Assistance does not affect eligibility for other need based assistance (SNAP, SSI, Medicaid, etc. ) If one member of a household is a US citizen or qualified immigrant, the entire household may be eligible for the Individuals and Households program assistance All immigrants, regardless of status, are eligible for short term, non cash, in kind, emergency relief (emergency medical care, shelter, food, water, etc. )

Links Catalog of Federal Domestic Assistance Federal Disaster Assistance https: //cfda. symplicity. com/index? s=program&mode=form&ta b=step 1&id=1 dc 6 a 2308 ff 5 a 2 ec 345 b 6485 f 4 e 4 f 9 ce 44 CFR Part 206 https: //www. gpo. gov/fdsys/pkg/CFR-2017 -title 44 FEMA www. fema. gov National Immigration Law Center—Disaster Resources for non citizens https: //www. nilc. org/issues/economic-support/disaster-help/

Disaster Loans Through the Small Business Administration � Qualifying applicants may receive loans through the SBA for uninsured losses not covered by FEMA grant assistance � SBA loans are intended to assist with long term recovery, as opposed to FEMA grants which cover immediate needs � Insurance proceeds and FEMA grants are deducted from the total loss to determine the loan amount

Eligibility � SBA must be able to determine the amount of the uncompensated loss � Have some assurance that the borrower has the financial ability to repay the loan � Have some assurance that the loan can be repaid in the event of default or subsequent loss (proper collateral, appropriate insurance, etc. )

Homeowners ◦ Homeowners may apply for SBA loans to cover the costs of restoring the home to its pre-disaster condition or to bring the home in compliance with local building codes ◦ In some cases, additional loan amounts are available for improvements designed to prevent future property damage

Homeowners (continued) � Refinancing: In some cases, SBA can refinance all or part of a previous mortgage for qualified homeowners A qualified homeowner is one who: �Cannot obtain credit elsewhere �Has incurred substantial uncompensated disaster damage �Intends to repair the damage

For Renters and Homeowners � Personal Property: ◦ Renters and homeowners may apply for loans up to $40, 000. 00 to repair of replace clothing, furniture, cars, appliances, and other personal property damaged or destroyed by the disaster and not otherwise compensated Relocation: Renters and homeowners may use SBA disaster loan proceeds to relocate. The amount of the relocation loan depends on whether the borrower is moving voluntarily or involuntarily

Loan Terms � Interest: ◦ SBA sets the rate of interest based on whether the borrower has the ability to obtain credit elsewhere ◦ Interest is fixed and shall not exceed 4% for borrowers with no available credit or 8% for borrowers with available credit ◦ The current rate of interest for home loans �For borrowers with no available credit is 1. 7% �For borrowers with available credit is 3. 5%

Loan Terms (continued) � Collateral: ◦ Any loan exceeding $25, 000. 00 must be secured to the extent possible. However, no loan will be denied for lack of available collateral ◦ Insurance: ◦ SBA will require borrowers to obtain and maintain appropriate insurance, including flood insurance ◦ Term: ◦ Determined on case by case basis depending on each borrower’s ability to pay ◦ May be as long as 30 years

Ineligibility � Applicants who have not complied with terms of previous SBA loans may not be eligible � An applicant can be disqualified for failure to maintain flood or hazard insurance required by a previous SBA loan

For Small Business Owners � Disaster Assistance Loans: ◦ SBA provides low income loans to businesses of all sizes to repair or replace: � Real Estate � Personal Property � Machinery and Equipment � Inventory � Fixtures and, leasehold improvements � Business assets that have been damaged or destroyed by a disaster Economic Injury Disaster Loans: ◦ If a small business located in a declare disaster area suffered substantial economic injury and is unable to meet its obligations to pay ordinary and necessary operating expenses, the business may be entitled to additional loans from SBA to provide working capital ◦ Physical damage is not a requirement

How to Apply � Apply online with FEMA at www. disasterloan. sba. gov � Or by telephone at 1 -800 -621 -3362 � � The borrower must submit a complete loan application and a signed and dated IRS Form 4506 -T, giving permission for the IRS to provide SBA with the borrowers tax return information Borrowers should apply immediately, even if an insurance claim is still pending ◦ If a loan is approved for damages that ultimately are covered by an insurance settlement, the insurance settlement is applied to the SBA loan balance, to avoid a duplication of benefits. ◦ SBA issues a written decision on each application within two to three weeks ◦ The decision is a loan authorization letter which contains the loans terms and specifies what the loan proceeds may be used for

Denial of an SBA Disaster Relief Loan � SBA disaster relief loans are typically denied due to: ◦ Incomplete application ◦ Poor credit history ◦ Inability to repay based on other obligations ◦ The SBA should not consider any medical debt in determining a borrower’s ability to repay

Appealing the Denial of an SBA Disaster Relief Loan � There are two levels of Reconsideration ◦ First Level: The borrower must file a request for reconsideration: � Disaster Assistance Processing and Disbursement Center (DAPDC) 14925 Kingsport Road Fort Worth, Texas, 76155 1 -817 -868 -2300 Fax 1 -817 -684 -5616 � Request must be filed within 6 months of the date of the denial letter � SBA re-assigns the application to a different loan processor who approves the loan or denies the reconsideration Second Level: If the first reconsideration is denied, the applicant appeals to the DAPDC Director (same address as above) � Request must be filed with 30 days of the date of the first reconsideration denial � SBA reassigns the application to a third loan processor who approves the loan or denies the second reconsideration � There is no further level of appeal; However, the borrower may seek an increase in his or her FEMA grant

Links SBA—Disaster Assistance https: //www. sba. gov/fundingprograms/disaster-assistance SBA Disaster Assistance Program SOP: https: //www. sba. gov/sites/default/files/SOP %2050%2030%207. pdf