Overview of Federal Mitigation Assistance (FMA) Program:
The FMA Program is a competitive grant program that provides funding to states, local communities, federally recognized tribes and territories. Funds can be used for projects that reduce or eliminate the risk of repetitive flood damage to buildings insured by the National Flood Insurance Program (NFIP). The City’s application to this program would focus on home elevation. To be eligible, homeowners must have active flood insurance through the NFIP.
Private Property Adaptation (PPA) Program and FMA Program:
As part of the Private Property Adaptation (PPA) Program, the City will assist eligible homeowners with applications to the Federal Mitigation Assistance (FMA) program.
The City’s PPA program helps provide funds for private property owners to conduct a flood risk assessment and carry out flood mitigation improvement projects. Through a competitive grant process, grantees will be eligible for a 50/50 cost share of up to $20,000 for flood mitigation improvements. Home elevation is an eligible activity for the PPA program. The City is working with external consultants, ICF, to use this cost share to be able to leverage larger funds available through the Federal FMA Program. Program funds would also cover the consultant fees and other FMA application fees.
The PPA program is being structured so homeowners interested in the FMA Program can be identified through the PPA application process. Applicants who are interested and eligible will be separated into a parallel process where they will be grouped into one FMA application that will be coordinated by external consultants, ICF. The City has previously assisted one interested homeowner in applying for an FMA grant and was ultimately unsuccessful. By grouping together eligible properties, the consultants feel that chances of success are much higher.
The expected timeline would be as such:
· The application is due to Florida Department of Emergency Management (FDEM) in November 2022
· Notification of award would likely by Summer 2023
· Project implementation would begin 2024
· Grantees will be given 3 years to implement the project
The PPA application process is expected to launch this year. Currently, the City is working with ICF to structure the applications and the program to help funnel eligible homeowners into a separate FMA application. The first phase of the PPA program is a flood risk assessment that will analyze the risk faced by each property and suggest possible flood mitigation projects. The second phase of the PPA would encompass the design and construction of a project. The City is currently focused on the first phase of the PPA.
FMA Application Details:
The City is a sub-applicant and would submit the application to the State on behalf of homeowners. The applications must prove the cost-effectiveness of the project. A cost-share is required. This cost share is not required to be provided by the applying municipality. This is where the grant funds from the PPA program can be utilized. Any further expenses can be passed on the homeowner.
Generally, FEMA will cover eligible properties at 75%, but will contribute up to 100% federal cost share for severe repetitive loss properties and 90% for repetitive loss properties. The City has approximately 74 repetitive loss properties. A new feature of this program allows properties located within census tracts with a high Social Vulnerability Index (SVI) to be eligible for 90% federal cost share, regardless of repetitive loss status. The City has several census tracts that have a qualifying SVI score.
The FMA grant is reimbursement based. This means that the City would serve as a pass-through for funds administered by the State. The following graphic details the flow:
ICF recommends that the City have half of the entire project as a line item in the budget. As the project implementation wouldn’t be likely to begin until 2024, this does not need to be included in the upcoming budget cycle. Assuming that the application has an average project cost of $350,000 and 10 eligible projects, the recommendation would be to have $1M – 1.5M at the ready to facilitate cash flow. Project costs are variable, so this number is likely to change.
The FMA program requires that the property maintain NFIP insurance for the life of the property. It has no further deed restrictions for demolition. However, if it is the will of the body, deed restrictions can be incorporated as part of the grant agreement with the City.
Funding:
The PPA program is funded through the Resilience Fund. The total budget available for this program is $1,332,000.00 for FY2022. The program has subsequent funding through the Resilience Fund of $666,666.67 for each FY23, FY24, and FY25 for a total program funding of $3,331,999.98.