If the project included approved hazard mitigation measures, FEMA does not re-evaluate the cost-effectiveness of the Hazard Mitigation Program based on the final actual cost. If during the review, FEMA determines that the Applicant performed work that was not included in the approved scope of work, FEMA will designate the project as an Improved Project, cap the funding at the original estimated amount, and review the additional scope of work for Environmental and Historic Preservation compliance.
For Capped Projects, the Applicant must provide documentation to support that it used the funds in accordance with the eligibility criteria described in Chapter 2:VII.G and guidance provided on the Alternative Procedures site. If the amount expended is less than the Capped Project amount, FEMA reduces the funding. Once FEMA completes the necessary review and funding adjustments, FEMA closes the project.