FEMA, New York State & New York City Sign Off on 78 Hurricane Sandy Public Assistance Recovery Agreements

Agreements Total $9.9 Billion in Recovery Funding Since 2013; Funding Provided Under New Public Assistance Pilot Program

NEW YORK – Today, the Federal Emergency Management Agency, New York State, and New York City announced they have reached final agreements for 78 Public Assistance projects in New York City and Long Island since 2013. The agreements, known as Letters of Undertaking (LOUs), support repair and restoration work totaling $9.9 billion. This includes 33 LOUs for the New York City Housing Authority (NYCHA) which support $2.9 billion of work at more than 250 buildings.

The funding for these projects was made possible by FEMA’s Public Assistance Alternative Procedures Pilot Program for Permanent Work (Section 428) – a new authority provided by the Sandy Recovery Improvement Act of 2013. The pilot program allows FEMA to improve the delivery of public assistance funds by providing financial incentives for timely and cost effective completion of projects. The pilot program also provides FEMA with increased flexibility in the administration of public assistance while streamlining support to state, local, tribal governments or nonprofit groups.

“These agreements are a major step forward in helping our region recover from the devastating effects of Hurricane Sandy,” said Region II Administrator, Jerome Hatfield. “This new authority has improved FEMA’s ability to support our state, local and tribal partners as we work together to not only help New York recover from this disaster but also build back safer and stronger than ever before. Our working relationship with New York State and New York City has been invaluable.”

“The vital support provided to New York City through the 428 program is allowing us to rebuild stronger and more resiliently across the five boroughs — from our public housing and hospitals to our boardwalks and open spaces,” said Bill Goldstein, Senior Advisor to Mayor de Blasio for Recovery, Resiliency, and Infrastructure. “The flexibility provided by the program has been a huge help to the City and the New Yorkers who rely on this critical infrastructure. Thank you to FEMA for their continued partnership.”

Some key highlights:

·         The 78 LOUs represent an estimated $9.9 billion, with an anticipated $8.9 billion in federal share funding. To date, FEMA has obligated $5.7 billion of its federal share.

·         Of the 78 LOUs, 63 represent New York City projects for an estimated $5.9 billion with an anticipated $5.3 billion federal share funding. To date, FEMA has obligated $2.2 billion of the federal share for these NYC projects.

·         33 LOUs pertain to New York City Housing Authority developments and represent an estimated $2.9 billion with an anticipated $2.6 billion in federal share funding. To date, FEMA has obligated $10.2 million of the federal share.

A significant portion of eligible FEMA funding for NYCHA projects will be applied toward mitigation measures to help disaster-damaged buildings better withstand future disasters, including dry flood-proofing of structures and certain utilities, elevating equipment and providing backup power generators to certain damaged facilities.

Traditionally, Public Assistance funding is provided based on estimates and reimbursed at actual cost of completed projects. Under the Alternative Procedures Pilot Program for Permanent Work, eligible applicants may request this fixed cap grant funding for repair, restoration, reconstruction, or replacement of the disaster-damaged facility.  The grant amount is capped once FEMA, the State and the applicant agree on the damage, scope of work and estimated cost. Work must be finished within the established time period, including approved time extensions, and managed by the applicant to ensure it is completed for the capped amount.  Additional funding is not available if an applicant spends more than the fixed estimate. If the completed project is finished for less than the capped amount, the applicant may use the excess funds for other eligible Public Assistance projects.

The Alternative Procedures Pilot Program for Permanent Work is just one of several Public Assistance initiatives authorized by the Sandy Recovery Improvement Act; more information can be found at FEMA.gov.

FEMA’s mission is to support our citizens and first responders to ensure that as a nation we work together to build, sustain, and improve our capability to prepare for, protect against, respond to, recover from, and mitigate all hazards.

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