For all Public Assistance funded projects, Applicants must be sure to use Public Assistance funding only for eligible work. As discussed in the last lesson, any additional work that is needed outside of the scope of work requires a change to the scope of work. This notification of additional damage or costs applies only to projects already identified and approved by FEMA.

Changes in Scope of Work due to one of the following reasons are generally eligible:

• Alternate repair method is more cost-effective than the original proposed repair method
• Original repair method is not technically feasible
• There is an increase in previously approved quantities due to errors and omissions
• Hidden, disaster-related damage is discovered during construction

Change in scope of work requests should be submitted to FEMA through the State prior to the approved project deadline and include detailed changes to the scope of work and cost estimate. The change in scope of work request must also clearly explain the reason for the scope change, including:

• Supporting documentation such as technical reports, if the original scope of work is not feasible
  
• Construction timeline/project schedule

If hidden damage is found during the performance of eligible work, the change in scope of work request must also include:

• Documentation which identifies the damage, as well as documentation which substantiates that the damage is related to the declared incident; as well as proposed scope of work to address repair of these new damages, if available
  
• Photographs documenting damage
  
• Change orders, if available

FEMA provides three options for an Applicant to use Public Assistance grant funds differently for restoring a facility to its pre-disaster design and function. These options are called Capped Projects, since FEMA caps the amount of Public Assistance funding based on the estimated amount needed to restore the damaged facility to its pre-disaster design and function.

The three capped project options are:

• Improved Project
• Alternate Project
• Alternative Procedures

The funding limit for a capped project may include some Direct Administrative Costs and indirect administrative costs based on the scope of work to restore the facility to its pre-disaster design and function. However, the capped amount does not include costs that are only related to, or only triggered by, changes to the pre-disaster design or function of the damaged facility.

These include, but are not limited to, costs related to additional:

• Engineering and design
• Environmental and Historic Preservation compliance requirements
• Work required by applicable and federally required triggered codes and standards upgrades

Each type of capped project is subject to different eligibility and process requirements, which will be discussed throughout this lesson.

An Improved Project is a capped project that restores a facility to pre-disaster function of at least the same capacity and incorporates improvements or changes to the facility's pre-disaster design that are not required by applicable codes and standards.

• Federal share of the approved estimated cost to restore the damaged facility to pre-disaster design and function
• Federal share of the actual costs of completing the Improved Project

FEMA only increases eligible funding for an Improved Project if the Applicant identifies an error or omission in the original scope of work or cost estimate related to restoring the facility to its pre-disaster design and function.

Improved facilities must serve the same pre-disaster building functions and operations to receive Public Assistance grant funding on an improved project. The Applicant is replacing rather than repairing a facility.

• Laying asphalt on a gravel road
• Repairing a firehouse that originally had two bays with a firehouse that has three bays
• Incorporating requirements dictated by a code or standard that does not meet Public Assistance eligibility criteria
• Relocating a facility when the relocation is not required by FEMA

An Alternate Project is a project that does not restore a facility to its pre-disaster function. If the Applicant determines that public welfare would not be best served by restoring a damaged facility, the Applicant may request approval from FEMA to apply Public Assistance funding toward a different facility that benefits the same community. The Alternate Project must be a permanent project that benefits the public and serves the same general area that was being served by the original facility.

• Ninety percent (75 percent for private nonprofit organizations) of the Federal share of the estimate to restore the original facility
• The Federal share of the actual cost of completing the Alternate Project

The Applicant may use Alternate Project funds to:

• Repair, expand, mitigate, or construct a facility that would otherwise be an eligible facility under the Public Assistance Program
  
• Demolish facilities
  
• Purchase capital equipment that has a useful life of at least 1 year and is equal to, or greater than, $5,000 per unit
  
• Fund project shortfalls due to mandatory flood insurance reductions taken from Public Assistance Program funding for repairs to buildings in Special Flood Hazard Areas
  
• Supplement funds for an Improved Project
  
• Conduct cost-effective hazard mitigation measures, regardless of whether the facility was damaged by the incident and whether the measures reduce the risk of future damage from the same type of incident or of the same type of damage caused by the incident

Alternate Project funds may also be used for hazard mitigation under the following conditions/criteria:

• Funding does not duplicate other FEMA mitigation funding
  
• Projects reduce the risk of future damage to a facility that is otherwise eligible either under the Public Assistance or Hazard Mitigation Assistance programs

The Applicant may NOT use Alternate Project funds to:

• Meet budget shortfalls
  
• Create a new community plan
  
• Landscape
  
• Pay for operating expenses
  
• Purchase supplies, furniture, or equipment costing less than $5,000 per unit
  
• Pay the non-Federal share of any Public Assistance project
  
• Fund buyouts for mitigation, such as acquisition of flood-prone property to create open space
  
• Supplement funds on projects that utilize other Federal agency grants
  
• Fund a project located in a FEMA-designated floodway

An Alternative Procedure is an option Applicants may use for Large Projects toward restoring a facility to its pre-disaster design and function; or toward a project that would otherwise be an Improved or Alternate Project; or for other projects, including a combination of projects.

FEMA and the Applicant must reach an agreement on the alternate procedures project within 12 months of the declaration, unless an extension is approved by the Public Assistance Director.

When the Applicant agrees to a capped project under Alternative Procedures, the Applicant may utilize any one or more of the following:

• Consolidation of multiple capped projects
  
• Elimination of reduced funding for an Alternate Project
  
• Retention of excess funds for approved purposes
  
• Third-party expert panel review for estimates with a Federal share of $5 million or greater (FEMA requires this review for estimates that exceed $25 million)

The Applicant may NOT use Alternative Procedures funds for the following:

• Facilities or equipment that are not eligible for Public Assistance funding
  
• To meet the local cost share for other Federal projects
  
• To pay down debts, cover budget shortfalls, or meet operating expenses
  
• To conduct planning and design that go beyond the work related to the project, such as communitywide planning

A Permanent Relocation Project is another option available to Applicants who need to move a facility to a new location. FEMA may approve funding for and require restoration and relocation of an Applicant's destroyed facility at a new location, when all the following conditions apply:

• The facility is subject to repetitive heavy damage because of its location
• For example, facilities located in a Special Flood Hazard Area (SFHA) are subject to repetitive heavy damage
  
• Project approval is not barred by other regulations
  
• The overall project, including all costs, is cost-effective

Eligible work and funding associated with relocation includes land acquisition and construction of necessary support facilities, such as roads, parking lots, and utilities. Demolition and removal of the original facility are also eligible if deemed necessary.

FEMA limits Public Assistance funding to the amount necessary to make the relocated facility and its associated components operational. FEMA considers the proximity of the new site to utilities (water, sewer, and electric) and approves the least costly solution. Construction of an off-site support facility is only eligible if it is a utility that would serve the relocated facility exclusively.

For land acquisition, if the facility was located on 10 acres of land at the time of the incident, and FEMA determines that 10 acres is not necessary for the operation of the facility, FEMA limits Public Assistance funding to the necessary amount of land. In situations where the Applicant owns the facility, but not the land or the support facilities at the original location, the cost to purchase the land or build support facilities is not eligible.

When FEMA requires relocation, FEMA does not provide future Public Assistance funding for repair or replacement of the original facility or for other facilities at the original site unless the facility enables an open space use.

For example, if the Applicant converts the original site to a park, FEMA may provide Public Assistance funding in the future for park components, such as benches, tables, restrooms, or gravel roads.

The Applicant may sell or lease the original facility or the land on which a relocated facility was originally located. The Applicant must inform the purchaser of the property that FEMA will not provide future Public Assistance funding for repair or replacement of the original facility or for other facilities at the original site unless the facility enables an open space use.

The property which the facility is relocated to, and the relocated facility itself, are subject to the real property provisions of 2 CFR part 200, including disposition and reporting requirements under 2 CFR 200.311 and 329, respectively. If the Applicant takes an action, such as demolition, using Public Assistance funds at the original site, FEMA must complete an Environmental and Historic Preservation review before the action occurs.