An Applicant may determine that the public welfare is not best served by restoring the function of the damaged facility. When this occurs, the Applicant may request approval from FEMA to apply Public Assistance funding toward a different project(s). 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. 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