[Federal Register Volume 65, Number 29 (Friday, February 11, 2000)]
[Rules and Regulations]
[Pages 7270-7274]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-3235]



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Part VI





Federal Emergency Management Agency





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44 CFR Part 209



Hurricane Floyd Property Acquisition and Relocation Grants; Interim 
Final Rule

  Federal Register / Vol. 65, No. 29 / Friday, February 11, 2000 / 
Rules and Regulations  

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FEDERAL EMERGENCY MANAGEMENT AGENCY

44 CFR Part 209

RIN 3067-AD06


Hurricane Floyd Property Acquisition and Relocation Grants

AGENCY: Federal Emergency Management Agency (FEMA).

ACTION: Interim final rule with request for comments.

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SUMMARY: We, FEMA, announce the immediate availability of $215 million 
in grants provided under the Consolidated Appropriations Act for FY 
2000, for the acquisition and relocation of properties affected by 
Hurricane Floyd or surrounding events for hazard mitigation purposes.

DATES: Effective Date: This interim final rule is effective February 
11, 2000.
    Comments: We invite comments on this interim final rule, which 
should be received by April 11, 2000.

ADDRESSES: Please send any comments to the Rules Docket Clerk, Office 
of the General Counsel, Federal Emergency Management Agency, 500 C 
Street SW., room 840, Washington, DC 20472, (facsimile) (202) 646-4536, 
or (email) [email protected].

FOR FURTHER INFORMATION CONTACT: Robert F. Shea, Mitigation 
Directorate, Federal Emergency Management Agency, 500 C Street SW., 
Washington, DC 20472, (202) 646-3619, (facsimile) (202) 646-3104, or 
(email) [email protected].

SUPPLEMENTARY INFORMATION: This interim final rule provides guidance on 
the administration of grants made under title I, chapter 2 of the 
Consolidated Appropriations Act for FY 2000, (``Act''), Pub.L. 106-113. 
The Act provides $215 million for the acquisition and relocation of 
properties affected by Hurricane Floyd and surrounding events for 
hazard mitigation purposes.
    Recognizing that the overriding aim of the Hurricane Floyd 
supplemental funds is to clear the floodplain by helping occupants to 
move out of harm's way, we intend to use the funding to meet the needs 
of lower income households in the areas that are most affected by flood 
damage. We are allocating the $215 million among the States that 
received major disaster declarations due to Hurricane Floyd. The 
allocation will be based on the number and value of properties meeting 
the eligibility criteria whose owners express interest in participating 
in a buyout. We are requesting States by letter to provide this 
information to the Associate Director for Mitigation by January 31, 
2000. As stated in the Act, allocations to States under this authority 
have no impact on the calculation of available funding under the 
Stafford Act (42 U.S.C. 5170c), the Hazard Mitigation Grant Program.
    Separately, we will request States to provide feedback regarding 
several important issues related to the implementation of our grant 
programs that fund buyouts and relocations of floodprone property. We 
will use this feedback to evaluate the need for modifications to these 
grant programs.
    This rule explains the process for States and us to prioritize 
projects to ensure funds are used in a cost-effective manner. We 
describe the program eligibility criteria in the rule to ensure States 
target properties severely impacted by Hurricane Floyd or surrounding 
events that would likely flood again in the future.
    The rule and the program requirements are structured parallel to 
our Hazard Mitigation Grant Program (HMGP) program, which also has 
property acquisition authority. We expect to minimize the differences 
between the two programs and to simplify the administration of both 
programs in the field. The Act does contain several provisions that 
differ from the HMGP that States should note:
    (a) Funds are to be used for acquisition/relocation projects only;
    (b) To be eligible, projects may only include properties that:
    (1) Are located in the Special Flood Hazard Area;
    (2) Are the principal residence of the owner; and
    (3) Were made uninhabitable by Hurricane Floyd or surrounding 
natural hazard event.
    (c) Subgrantees may pay participating homeowners no more than the 
fair market value of the property before September 1, 1999.
    The HMGP does not have the limitations described above.
    We encourage States to implement this program in conjunction with 
the HMGP to the extent possible. States and applicants may use HMGP 
guidance materials for acquisition and relocation projects, including 
the HMGP Interim Desk Reference (FEMA-345) and the Property Acquisition 
Handbook (FEMA-317) to the extent that the guidance does not conflict 
with these regulations or the Act. For example, FEMA-345 and FEMA-317 
provide model deed restrictions and easements and detailed procedures 
for avoiding duplication of benefits provided by other programs or 
insurance. The model deed language and the duplication of benefits 
review process apply to this special buyout authority as well.
    Communities interested in participating should note that properties 
purchased with this grant funding must remain as open space in 
perpetuity and may receive no future disaster assistance from any 
Federal source. For example, public park facilities on purchased open 
space land are not eligible for our Public Assistance program funding 
if future flood disasters occur in the area.
    States are responsible for measuring both the expected benefits of 
funded projects and actual program effectiveness after future flood 
events. This process will assist the State and us in assessing program 
results and improving future mitigation program implementation.

National Environmental Policy Act

    This rule is excluded from the preparation of an environmental 
assessment or environmental impact statement under 44 CFR 
10.8(d)(2)(ii), where the rule is related to actions that qualify for 
categorical exclusion under 44 CFR 10.8(d)(2)(vii). In addition, we 
will perform an environmental review under 44 CFR Part 10, 
Environmental Considerations, on each proposed acquisition project 
before funding and implementation.

Executive Order 12898, Environmental Justice

    This rule will have no disproportionate, adverse impact on low-
income or minority populations within the meaning of E.O. 12898. 
Properties in Special Flood Hazard Areas that have a high risk of 
flooding are frequently associated with depressed property values and 
inhabited by low-income residents. This is the case in many communities 
that were affected by Hurricane Floyd and that this rule targets for 
buyouts. The rule's effect of offering such populations more than post-
event, current fair market value for their damaged residences to 
relocate voluntarily outside the flood hazard area helps give low-
income homeowners the means to move to safer ground, which might not 
otherwise be available to them. In some cases, where very low-priced 
residences are acquired, the buyout offer may not be enough to pay for 
available housing outside the hazard area because the law caps the 
offer at pre-event value. In such cases we will coordinate with the 
State to help identify alternative funding sources for those buyouts or 
to cover the relocation differential.

[[Page 7271]]

Executive Order 12866, Regulatory Planning and Review

    The rule sets out our administrative procedures for making grants 
available for acquiring and relocating houses damaged by Hurricane 
Floyd. Most of the $215,000,000 appropriation will be obligated within 
one year. As such the rule will have an effect on the economy of more 
than $100,000,000, the impact of which will promote public health and 
safety by providing low-income homeowners with the financial means to 
move voluntarily out of high-risk flood hazard areas. Therefore, this 
rule is a major rule as defined in 5 U.S.C. 804(2) and is an 
economically significant rule under Executive Order 12866. The Office 
of Management and Budget has reviewed this rule under Executive Order 
12866.

Paperwork Reduction Act

    The Federal Emergency Management Agency is submitting a request for 
review and approval of a new collection of information, which is 
contained in this interim rule. The request is submitted under the 
emergency processing procedures in Office of Management and Budget 
(OMB) regulations 5 CFR 1320.13. FEMA is requesting that this 
information collection be approved by February 11, 2000, for use 
through July 2000.
    FEMA expects to follow this emergency request with a request for a 
3-year approval. The request will be processed under OMB's normal 
clearance procedures in accordance with the provisions of OMB 
regulation 5 CFR 1320.10. To help us with the timely processing of the 
emergency and normal clearance submissions to OMB, FEMA invites the 
general public to comment on the proposed collection of information. 
This notice and request for comments is in accordance with the 
provisions of the Paperwork Reduction Act of 1995 (44 U.S.C. 
3506(c)(2)(A)). It also seeks comments concerning the collection of 
information, which is necessary for State and local officials to apply 
for the Hurricane Floyd Special Buyout Authority. The forms or 
formats--SF-424, Application for Federal Assistance; FEMA form 20-15, 
Budget Instructions--Construction Programs; Project Narrative (section 
209.8(b)); FEMA form 20-16, 20-16c Assurances and Certifications; 
Standard Form LLL, Disclosure of Lobbying Activities; FEMA form 20-10, 
Financial Status Report; and the Performance/Progress Report format--
serve as basic screening and referral documents and may be used in 
determining whether applicants meet the basic eligibility requirements 
of this Authority.
    Supplementary Information. This collection is in accordance with 
FEMA's responsibilities under 44 CFR section 206.3 to provide an 
orderly and continuing means of assistance by the Federal Government to 
State and local governments. The assistance provided helps to alleviate 
the suffering and damage that result from major disasters and 
emergencies. Under the Consolidated Appropriations Act of FY2000, FEMA 
may provide assistance for the acquisition and relocation of properties 
affected by Hurrricane Floyd or surrounding events for hazard 
mitigation purposes.
    Collection of Information.
    Title. Hurricane Floyd Property Acquisition and Relocation Grants.
    Type of Information Collection. New.
    Form Numbers. SF-424, Application for Federal Assistance; FEMA form 
20-15, Budget Information-Construction Programs; FEMA form 20-16, 20-
16c Assurances and Certifications; Standard Form LLL, Disclosure of 
Lobbying Activities; FEMA form 20-10, Financial Status Report; and the 
Performance report format.
    Abstract.
    (1) SF-424 facesheet. This is a standard form used by applicants to 
accompany applications for Federal assistance. It provides the agency 
summary information about applicant organization and the type of 
assistance requested. Local governments may use the SF-424 to provide 
pertinent applicant profile information with their application. States 
may submit amendments to their original application by submitting an 
additional SF-424 that requests a revision to the original.
    (2) Budget forms. This is a standard form which applicants submit 
with the application detailing the proposed budget for the grant. For 
construction projects, applicants complete FEMA form 20-15. FEMA will 
use this information to determine if the requested funding is 
reasonable and to perform a benefit-cost analysis on the proposed 
project (construction projects only).
    (3) Project Narrative. The narrative statement, more commonly 
referred to as the project application, identifies the proposed measure 
to be funded and provides information supporting the projects 
eligibility. The narrative will contain nine essential elements: the 
description of the hazard/problem, proposed measures, location of 
project, proposed work schedule, an itemized list of expected benefits 
and estimated dollar values, alternative approaches considered to meet 
the objective, the surrounding environment and possible environmental 
impacts, existing resources in the project area, provide an analysis of 
the environmental effects of the proposed project and alternatives on 
the resources discussed above, provide environmental studies/reviews, 
if possible.
    (4) Assurances and certifications. These are standard forms that 
are completed by the State. FEMA form 20-16 summarizes all assurances 
and certifications that the State must sign in order to receive grant 
assistance. FEMA forms 20-16 and 20-16(c) list assurances that the 
State must provide in order to receive assistance for construction 
programs. FEMA form 20-16c lists three certifications that the State 
must make in order to receive Federal assistance: lobbying; debarment, 
suspension, and other responsibility matters; and drug free workplace 
requirements.
    (5) Disclosure of Lobbying Activities. The SF-LLL is a standard 
form disclosing lobbying activity on the part of grant recipients. 
These assurances are an integral element of the grant agreement between 
FEMA and the State, ensuring compliance with all applicable Federal 
statutes, executive orders, and regulations.
    (6) Financial Status Report. The FEMA Form 20-10--Financial Status 
Report Form is used by Grantees, to give an accurate, current and 
complete disclosure, on a quarterly basis the financial results of 
financially assisted activities. Reporting must be made in accordance 
with the financial reporting requirements of the grant or subgrant. 
Form 20-10 is due thirty (30) days after the expiration or termination 
of grant support. Grantees are required to submit an original and two 
copies to the Regional Office. Grantees may use this form in dealing 
with their subgrantees.
    (7) Performance Report. The State will use this format to report on 
the implementation schedule, any delays, projected overruns, and 
problems encountered.
    Affected Public: State, local and tribal governments and 
Individuals and households. The forms are used to allow State and local 
officials to apply for the Hurricane Floyd Special Buyout Authority on 
behalf of their communities and citizens.
    Estimated Total Annual Burden Hours.

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                                                                                                        Annual
           Type of collection/forms                No. of              Hours per  response              burden
                                                respondents                                             hours
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SF-424 (Application facesheet)................          213  .75                                             160
20-15 Budget--Construction....................          213  17.2                                          3,664
Project Narrative (section 209.8(b)...........          213  15                                            3,195
20-16 (Summary of assurances & certifications)          213  1.7                                             362
20-16b (Assurances, non-construction).........  ...........  included in 20-16                       ...........
20-16c (lobbying certification)...............  ...........  included in 20-16                       ...........
SF-LLL (lobbying disclosure)..................          213  .5                                              107
Form 20-10--Financial Status Report 213 x               852  8                                             6,816
 quarterly = 852.
Performance Report 213  x  quarterly = 852....          852  4.2                                           3,578
Duplication of benefits review................          213  12.62                                         2,688
Communities Individual homeowners.............        5,375  1                                             5,375
Agreement--Settlement/Deeds/Easement..........          213  6.31                                          1,344
Communities Individual homeowners.............        5,375  1                                             5,375
Individual Homeowners--Initial Meeting/Letters        5,375  2                                            10,750
Individual Homeowners--Appraisal/Inspection           5,375  1                                             5,375
 Visit, Review, Offer.
                                                                                                    ------------
    Total Burden..............................  ...........  ......................................       48,789
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    Estimated Cost. We have not calculated the costs associated with 
this collection due to the emergency nature of the funding availability 
and grant approval process. However, we believe there are few 
additional costs associated with this authority. States may use 
existing systems for submitting grant applications and reporting.
    Comments: Written comments are solicited to (a) evaluate whether 
the proposed data collection is necessary for the proper performance of 
the agency, including whether the information shall have practical 
utility; (b) evaluate the accuracy of the agency's estimate of the 
burden of the proposed collection of information, including the 
validity of the methodology and assumptions used; (c) enhance the 
quality, utility, and clarity of the information to be collected; and 
(d) minimize the burden of the collection of information on those who 
are to respond, including through the use of appropriate automated, 
electronic, mechanical, or other technological collection techniques or 
other forms of information technology, e.g., permitting electronic 
submission of responses. Comments should be received within 60 days of 
the date of this notice.
    ADDRESSEE:
    Interested persons should submit written comments to the Desk 
Officer for the Federal Emergency Management Agency, Office of 
Management and Budget, Office of Information and Regulatory Affairs, 
725 17th Street, NW, Washington, DC 20503 within 30 days of this 
notice. FEMA will continue to accept comments for an additional 30 
days. Send written comments on the collection of information, including 
the burden estimate to Muriel B. Anderson, FEMA Information Collections 
Officer, Federal Emergency Management Agency, 500 C Street, SW, Room 
316, Washington, DC 20472. Telephone number (202) 646-2625. FAX number 
(202) 646-3524 or e-mail [email protected].

FOR FURTHER INFORMATION CONTACT:

     Ms. Anderson at (202) 646-2625 for copies of the proposed 
collection of information.

Executive Order 12612, Federalism

    We have reviewed this rule under the threshold criteria of 
Executive Order 13132, Federalism. We have determined that the rule 
does not significantly affect the rights, roles, and responsibilities 
of States, and involves no preemption of State law nor does it limit 
State policymaking discretion.

Congressional Review of Agency Rulemaking

    We have sent this final rule to the Congress and to the General 
Accounting Office under the Congressional Review of Agency Rulemaking 
Act, Pub. L. 104-121. The rule is a ``major rule'' within the meaning 
of that Act. It is an administrative action in support of normal day-
to-day grant activities required by Pub. L. 106-113, which prescribes 
how the $215,000,000 appropriation will be transferred through grants 
to certain States.
    The rule will not result in a major increase in costs or prices for 
consumers, individual industries, Federal, State, or local government 
agencies, or geographic regions. It will not have ``significant adverse 
effects'' on competition, employment, investment, productivity, 
innovation, or on the ability of United States-based enterprises to 
compete with foreign-based enterprises. This final rule is subject to 
the information collection requirements of the Paperwork Reduction Act 
and OMB has assigned Control No. 3067-0279. The rule is not an unfunded 
Federal mandate within the meaning of the Unfunded Mandates Reform Act 
of 1995, Pub. L. 104-4, and any enforceable duties that we impose are a 
condition of Federal assistance or a duty arising from participation in 
a voluntary Federal program.

List of Subjects in 44 CFR Part 209

    Administrative practice and procedure, Disaster assistance, Grant 
programs, Reporting and recordkeeping requirements.

    Accordingly, we amend Chapter I, Subchapter D, by adding Part 209 
to read as follows:

PART 209-- HURRICANE FLOYD PROPERTY ACQUISITION AND RELOCATION 
GRANTS

Sec.
209.1   Purpose.
209.2   Definitions.
209.3   Roles and responsibilities.
209.4   Allocation and availability of funds.
209.5   Applicant eligibility.
209.6   Project eligibility.
209.7   Priorities for project selection.
209.8   Application and review process.
209.9   Appeals.
209.10   Project implementation requirements.
209.11   Grant administration.
209.12   Oversight and results.

    Authority: Pub. L. 106-113, Appendix E--H.R. 3425; Robert T. 
Stafford Disaster Relief and Emergency Assistance Act, 42 U.S.C. 
5121 et seq., Reorganization Plan No. 3 of 1978, 43 FR 41943, 3 CFR, 
1978 Comp., p. 329; E.O. 12127, 44 FR 19367, 3 CFR, 1979

[[Page 7273]]

Comp., p. 376; E.O. 12148, 44 FR 43239, 3 CFR, 1979 Comp., p. 412.


Sec. 209.1  Purpose.

    This part provides guidance on the administration of grants made 
under the Consolidated Appropriations Act for FY 2000, Pub. L. 106-113, 
which provides $215 million for the acquisition and relocation of 
properties affected by Hurricane Floyd or surrounding events for hazard 
mitigation purposes.


Sec. 209.2  Definitions.

    Except as noted in this part, the definitions listed at 44 CFR 
206.2 apply to the implementation of this part.


Sec. 209.3  Roles and responsibilities.

    We describe specific responsibilities of program participants 
throughout this part. The following materials describe the general 
roles of FEMA, the State, and communities or other organizations that 
receive grant assistance.
    (a) Federal. The Director will allocate available funding to States 
that received major disaster declarations resulting from Hurricane 
Floyd and surrounding events. The Regional Directors will provide 
technical assistance to States upon request, make grant awards, and 
oversee program implementation.
    (b) State. The State will be the Grantee to which FEMA awards funds 
and will be accountable for the use of those funds. The State will 
determine priorities for funding within the State and provide technical 
assistance and oversight to subgrantees for project development and 
implementation. The State will report program progress and results to 
us. Native American tribes will be the grantee and carry out ``state'' 
roles when they apply directly to FEMA.
    (c) Subgrantee. The subgrantee (a State agency, local government, 
or private non-profit organization) will coordinate with interested 
homeowners to complete an application to the State and implement all 
approved projects. The subgrantee generally takes title to all property 
and manages it as open space. The subgrantee is accountable to the 
State for the use of funds.


Sec. 209.4  Allocation and availability of funds.

    (a) The Director will allocate available funds based on the number 
and value of properties meeting the eligibility criteria whose owners 
have expressed interest in participating in a buyout.
    (b) The Director may reallocate funds for which we do not receive 
and approve adequate applications. We will obligate all available funds 
by January 1, 2002, unless extenuating circumstances exists.


Sec. 209.5  Applicant eligibility.

    The following are eligible to apply to the State for a grant:
    (a) State and local governments;
    (b) Indian tribes or authorized tribal organizations. A tribe may 
apply either to the State or directly to FEMA.
    (c) Private nonprofit organizations with a conservation purpose as 
qualified under section 170(h) of the Internal Revenue Code of 1954, as 
amended, 26 U.S.C. 170(h), and applicable regulations promulgated 
thereunder.


Sec. 209.6  Project eligibility

    (a) Eligible types of project activities. This grant authority is 
for projects to acquire and demolish or relocate floodprone properties. 
Approved projects will meet the following criteria and comply with 
program requirements.
    (b) Eligibility criteria. To be eligible, projects must:
    (1) Be cost effective. The State will complete a benefit-cost 
analysis, using a FEMA-approved methodology. We will review the State's 
analysis.
    (2) Include only properties that:
    (i) The owner agrees to sell voluntarily;
    (ii) Are located in the Special Flood Hazard Area;
    (iii) Served as the principal residence for the owner (i.e., meets 
criteria for owner-occupied, primary residence under our Individual 
Assistance program); and
    (iv) Were made uninhabitable (as certified by an appropriate State 
or local official) by the effects of Hurricane Floyd or surrounding 
natural hazard events.
    (3) Conform with 44 CFR Part 9, Floodplain Management and 
Protection of Wetlands; 44 CFR Part 10, Environmental Considerations; 
and any applicable environmental and historic preservation laws and 
regulations.


Sec. 209.7  Priorities for project selection.

    States will set priorities in their State Hazard Mitigation Plan 
(State buyout plan) to use as the basis for selecting projects for 
funding. The State's priorities will address, at a minimum, 
substantially damaged properties, repetitive loss target properties, 
and such other criteria that the State deems necessary to comply with 
the law. States may update their Hazard Mitigation Grant Program 
administrative plan to incorporate administration and project selection 
under this authority.


Sec. 209.8  Application and review process.

    (a) Timeframes. States will set local application deadlines. States 
must forward all applications by April 30, 2000. We will fund projects 
as we receive and approve them. The Regional Director may extend the 
deadline by up to 60 days, upon a State's request, if extenuating 
circumstances prevent the State from meeting the deadline.
    (b) Format. The State will forward its application to the Regional 
Director. The Application will include a Standard Form (SF) 424, 
Application for Federal Assistance, FEMA Form 20-16B, Assurances for 
Construction Programs, attached community project applications (buyout 
plans) selected by the State, and the State's certification that the 
State has reviewed all applications and that they meet program 
eligibility criteria. Community project applications will include:
    (1) Community applicant information, including contact names and 
numbers;
    (2) Summary project information;
    (3) Description of the problem addressed by the proposed project;
    (4) Description of the applicant's decision-making process, 
including alternatives considered;
    (5) Project description, including property locations and scope of 
activities;
    (6) Project cost estimate and match source;
    (7) Open space use description and maintenance assurance;
    (8) Cost-effectiveness information, or State's benefit-cost 
analysis;
    (9) Environmental and historic preservation information; and
    (10) Attachments as necessary (property site inventory, location 
map, FIRM, etc);
    (c) FEMA review. FEMA will review the State's eligibility 
determination and either approve, deny, or request additional 
information within 60 days. The Regional Director may extend this 
timeframe if complicated issues arise.


Sec. 209.9  Appeals.

    The State may appeal decisions by FEMA regarding the eligibility of 
submitted applications within 60 days of receipt of the decision. The 
format and timelines for the appeal must conform to 44 CFR 206.440.


Sec. 209.10  Project implementation requirements.

    Subgrantees must enter into an agreement with the State, with the 
concurrence of the Regional Director, that provides the following 
assurances:
    (a) The subgrantee will administer the grant and implement the 
project in accordance with program requirements, 44 CFR parts 13 and 
14, the grant agreement, and with applicable Federal, State, and local 
laws and regulations.
    (b) Participating property owners may receive assistance up to the 
fair market

[[Page 7274]]

value of their real property as of September 1, 1999 (reduced by any 
potential duplication of benefits from other sources).
    (c) The following restrictive covenants must be conveyed in the 
deed to any property acquired, accepted, or from which structures are 
removed (``the property''):
    (1) The property must be dedicated and maintained in perpetuity for 
uses compatible with open space, recreational, or wetlands management 
practices; and
    (2) No new structure(s) will be built on the property except for 
the following:
    (i) A public facility that is open on all sides and functionally 
related to a designated open space or recreational use;
    (ii) A public rest room; or
    (iii) A structure that is compatible with open space, recreational, 
or wetlands management usage and proper floodplain management policies 
and practices, which the Director approves in writing before the 
construction of the structure begins.
    (3) After completing the project, no application for additional 
disaster assistance will be made for any purpose with respect to the 
property to any Federal entity or source, and no Federal entity or 
source will provide such assistance.
    (4) Any structures built on the property according to paragraph 
(c)(2) of this section, must be located to minimize the potential for 
flood damage, be floodproofed, or be elevated to the Base Flood 
Elevation plus one foot of freeboard.
    (5) Every two years on October 1st, the subgrantee will report to 
the State, certifying that the property continues to be maintained 
consistent with the provisions of the agreement. The State will report 
the certification to us.
    (d) In general, allowable open space, recreational, and wetland 
management uses include parks for outdoor recreational activities, 
nature reserves, cultivation, grazing, camping (except where adequate 
warning time is not available to allow evacuation), temporary storage 
in the open of wheeled vehicles which are easily movable (except mobile 
homes), unimproved, permeable parking lots, and buffer zones. Allowable 
uses generally do not include walled buildings, flood reduction levees, 
or other uses that obstruct the natural and beneficial functions of the 
floodplain.


Sec. 209.11  Grant administration.

    Cost share. We may contribute up to 75 percent of the total 
eligible costs. The State must ensure that non-Federal sources 
contribute not less than 25 percent of the total eligible costs for the 
grant. The State or any subgrantee cannot use funds that we provide 
under this Act as the non-Federal match for other Federal funds nor can 
the State or any subgrantee use other Federal funds as the required 
non-Federal match for these funds, except as provided by statute.
    (b) Allowable costs. A State may find guidance on allowable costs 
for States and subgrantees in Office of Management and Budget (OMB) 
Circular A-87 and A-122 on the Cost Principles. States may use up to 7% 
of these funds for costs to manage the grant. The State should include 
management costs in its application. Subgrantees must include 
reasonable costs to administer the grant as a direct project cost in 
their budget.
    (c) Progress reports. The State must provide a quarterly progress 
report to us under 44 CFR 13.40, indicating the status and completion 
date for each project funded. The report will include any problems or 
circumstances affecting completion dates, scope of work, or project 
costs that may result in noncompliance with the approved grant 
conditions.
    (d) Financial reports. The State must provide a quarterly financial 
report to us under 44 CFR 13.41.


Sec. 209.12  Oversight and results.

    (a) FEMA oversight. Our Regional Directors are responsible for 
overseeing this grant authority and for ensuring that States and 
subgrantees meet all program requirements. Regional Directors will 
review program progress quarterly.
    (b) Monitoring and enforcement. Subgrantees, States, and FEMA will 
monitor the properties purchased under this authority and ensure they 
are maintained in open space use. FEMA and the State may enforce the 
agreement by taking any measures they deem appropriate.
    (c) Program results. The State will review the effectiveness of 
approved projects after each future flood event in the affected area to 
monitor whether projects are resulting in expected savings. The State 
will report to FEMA on program effectiveness after project completion 
and after each subsequent flood event.

    Dated: February 7, 2000.
James L. Witt,
Director.
[FR Doc. 00-3235 Filed 2-10-00; 8:45 am]
BILLING CODE 6718-04-P