Prior to work commencing, the Applicant must receive approval of a capped project. Once FEMA caps the funding, the type of capped project impacts the maximum Federal funding the Applicant can receive.

Improved Project Funding:

FEMA limits Federal funding for an Improved Project to the lesser of the following:

• The Federal share of the approved estimated cost to restore the damaged facility to its pre-disaster design and function; or
• The 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 statement of work or cost estimate related to restoring the facility to its pre-disaster design and function

Alternate Project Funding:

FEMA limits Federal funding for an Alternate Project to the lesser of:

• The Federal share of the approved estimate to restore the damaged facility to its pre-disaster design and function; or
• The Federal share of the actual cost of completing the Alternate Project

Alternative Procedures Project Funding Under Section 428:

FEMA caps Federal funding for an Alternative Procedures Project based on the aggregate Federal share of the approved estimated cost:

• To restore the damaged facilities to pre-disaster design and function in accordance with eligible codes and standards; and
• For cost-effective PA mitigation measures associated with the actual restoration statement of work that the Applicant will perform.