Capped Projects

FEMA provides three options that provide flexibility for the Applicant to use Public Assistance funding differently than restoring the pre-disaster design and function of the facility. FEMA caps the amount of Public Assistance funding based on the estimated amount to restore the damaged facility to its pre-disaster design and function, including applicable and federally required codes and standards.

The three capped project options are:

• Improved Project

• A project that restores the pre-disaster function, and at least the same capacity, of the damaged facility and incorporates improvements or changes to its pre-disaster design not required by eligible codes or standards.

• Alternate Project

• The use of funds toward a project that does not restore the pre-disaster function of the damaged facility. If the Applicant determines the public welfare would not be best served by restoring a damaged facility or its function, it may use the funds toward a different facility that benefit the same community.

• Alternative Procedures Pilot Program for Permanent Work Project

• The use of Large Project funds toward a project(s) that restores the facility to its pre-disaster design and function or toward a project that would otherwise be an Improved or Alternate Project.

FEMA caps the amount of Public Assistance funding based on the estimated amount to restore the damaged facility to its pre-disaster design and function, including applicable and federally required codes and standards.

The capped amount may include a reasonable amount of Direct Administrative Costs and soft costs based on the scope of work to restore the facility to its pre-disaster design and function. However, the capped amount does not include costs that are only related to, or only triggered by, changes to the pre-disaster design or function of the damaged facility. These include, but are not limited to, costs related to:

• Additional engineering and design
• Environmental and historic preservation compliance
• Work required by applicable and federally required codes and standards

For Alternative Procedures Projects specifically, FEMA does not adjust the capped amount even if the Applicant discovers hidden damage during the course of completing previously approved work.

If the Applicant's actual costs exceed the capped amount, FEMA does not approve additional funds. More detailed information is available in the IS-1005: Public Assistance Alternative Procedures course.

Capped Project Approval

Improved Project:

For Improved Projects, the Applicant must obtain approval from the Recipient. If the Improved Project significantly changes the pre-disaster configuration of the facility, the Recipient must forward the request to FEMA to ensure that the Improved Project complies with appropriate environmental and historic preservation laws, regulations, and executive orders.

Alternate Project:

For Alternative Procedures Projects, FEMA, Recipient, and the Applicant must obtain approval from FEMA. If the Alternate Project involves construction, the Applicant must obtain FEMA approval prior to the start of construction.

Alternative Procedures Project:

For Alternative Procedures Projects, FEMA, the Recipient, and the Applicant must reach agreement on the capped amount within 12 months of the declaration date. Upon request from the Applicant, FEMA may approve a time extension on a project-by-project basis. The Applicant's request must include the circumstances that justify the extension and demonstrate progress on reaching an agreement. In complex or catastrophic incidents, upon request from the Recipient, FEMA may approve an extension for all Applicants.

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