Capped Projects

FEMA provides three options that provide flexibility for the Applicant to use Public Assistance funding differently than restoring the pre-disaster design and function of the facility. For these options, FEMA caps the amount of Public Assistance funding based on the estimated amount to restore the damaged facility to its pre-disaster design and function, including current eligible codes and standards as defined in the Public Assistance Policy and Procedures Guide, Codes and Standards.

The three capped project options are:

  • Improved Project
    • The Applicant may wish to make improvements to a damaged facility that are not required by eligible codes or standards. A project that restores the pre-disaster function of a facility and incorporates improvements or changes to the pre-disaster design is an Improved Project
  • Alternate Project
    • The Applicant may determine that the public welfare is not best served by restoring the function of the damaged facility. When this occurs, the Applicant must obtain FEMA’s approval to apply PA funding toward a different facility (or facilities). FEMA refers to this as an Alternate Project. The Alternate Project must be a permanent project that benefits the general public, serving the same general area that was being served by the original facility.
  • Alternative Procedures Project under Section 428 (Large Projects only)
    • This type of project offers the maximum amount of flexibility with how the Applicant may use PA funding, including use of excess funds which are not eligible under the Improved or Alternate Project options. The Applicant may use funds across all Permanent Work Alternative Procedures Projects with no requirement to rebuild communities back to what existed prior to the disaster. Alternative Procedures Projects are subject to acceptance of a fixed-cost offer within the deadlines described in the Public Assistance Program and Policy Guide, Fixed Cost Offer Deadlines.

Capped projects may involve significant changes to the pre-disaster configuration of a facility (e.g., location, footprint, or size). FEMA conducts EHP compliance reviews on the actual proposed statement of work to be performed, prior to approving the project.

See the Public Assistance Program and Policy Guide for additional information regarding Fixed Cost Offer Deadlines.