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Federal Register / Vol. 86, No. 173 / Friday, September 10, 2021 / Rules and Regulations c Failure to make award within 5
years. Any FMA application or subapplication that does not receive a Federal award within 5 years of the application/subapplication submission date is considered to be denied, and any funding amounts allocated for such applications/subapplications will be made available for other FMA awards and subawards.
77.5

Application process.

a Applicant. 1 Applicants will be notified of the availability of funding for the FMA program pursuant to 2 CFR
200.203 and 200.204.
2 The applicant is responsible for soliciting applications from eligible communities, or subapplicants, and for reviewing and prioritizing applications prior to forwarding them to FEMA for review and award.
b Subapplicant. Communities or other subapplicants who choose to apply must develop subapplications within the timeframes and requirements established by FEMA and must submit subapplications to the applicant.

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77.6

Eligibility.

a NFIP requirements. 1 States, Indian Tribal governments, and communities must be participating in the NFIP and may not be suspended or withdrawn under the program.
2 For projects that impact individual structures, for example, acquisitions and elevations, an NFIP policy for the structure must be in effect prior to the opening of the application period and be maintained for the life of the structure.
b Plan requirement1 Applicants.
States must have a FEMA-approved mitigation plan meeting the requirements of 201.4 of this chapter that provides for reduction of flood losses to structures for which NFIP
coverage is available. Indian Tribal governments must have a FEMAapproved mitigation plan meeting the requirements of 201.7 of this chapter that provides for reduction of flood losses to structures for which NFIP
coverage is available. The FEMAapproved mitigation plan is required at the time of application and award.
2 Subapplicants. To be eligible for FMA project grants, subapplicants must have an approved mitigation plan in accordance with part 201 of this chapter that provides for reduction of flood losses to structures for which NFIP
coverage is available. The FEMAapproved mitigation plan is required at the time of application and award.
c Eligible activities1 Planning.
FMA planning grants may be used to develop or update State, Indian Tribal
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and/or local mitigation plans that meet the planning criteria outlined in part 201 of this chapter and provide for reduction of flood losses to structures for which NFIP coverage is available.
2 Projects. Projects funded under the FMA program are limited to activities that reduce flood damages to properties insured under the NFIP. Applications involving any activities for which implementation has already been initiated or completed are not eligible for funding, and will not be considered.
Eligible activities are:
i Acquisition of real property from property owners, and demolition or relocation of buildings and/or structures to areas outside of the floodplain to convert the property to open space use in perpetuity, in accordance with part 80 of this subchapter;
ii Elevation of existing structures to at least base flood levels or higher, if required by FEMA or if required by any State or local ordinance, and in accordance with criteria established by the Administrator;
iii Floodproofing of existing nonresidential structures in accordance with the requirements of the NFIP or higher standards if required by FEMA or if required by any State or local ordinance, and in accordance with criteria established by the Administrator;
iv Floodproofing of historic structures as defined in 59.1 of this subchapter;
v Demolition and rebuilding of properties to at least base flood levels or higher, if required by FEMA or if required by any State or local ordinance, and in accordance with criteria established by the Administrator;
vi Localized flood risk reduction projects that lessen the frequency or severity of flooding and decrease predicted flood damages, and that do not duplicate the flood prevention activities of other Federal agencies.
Non-localized flood risk reduction projects such as dikes, levees, floodwalls, seawalls, groins, jetties, dams and large-scale waterway channelization projects are not eligible unless the Administrator specifically determines in approving a mitigation plan that such activities are the most cost-effective mitigation activities for the National Flood Mitigation Fund;
vii Elevation, relocation, or floodproofing of utilities; and viii Other mitigation activities not described or identified in c2i through vii of this section that are described in the State, Tribal or local mitigation plan.
3 Technical assistance. If a recipient applied for and was awarded at least $1

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million in the prior fiscal year, that recipient may be eligible to receive a technical assistance grant for up to $50,000.
4 Project Scoping. Activities that enable subapplicants to develop complete subapplications for eligible mitigation activities including but not limited to data development.
d Minimum project criteria. In addition to being an eligible project type, mitigation grant projects must also:
1 Be in conformance with State, Tribal and/or local mitigation plans approved under part 201 of this chapter for the jurisdiction where the project is located;
2 Be in conformance with applicable environmental and historic preservation laws, regulations, and agency policy, including parts 9 and 60 of this chapter, and other applicable Federal, State, Tribal, and local laws and regulations;
3 Be technically feasible and costeffective; or, eliminate future payments from the NFIF for severe repetitive loss structures through an acquisition or relocation activity;
4 Solve a problem independently, or constitute a functional portion of a longterm solution where there is assurance that the project as a whole will be completed. This assurance will include documentation identifying the remaining funds necessary to complete the project, and the timeframe for completing the project;
5 Consider long-term changes to the areas and entities it protects, and have manageable future maintenance and modification requirements. The subrecipient is responsible for the continued maintenance needed to preserve the hazard mitigation benefits of these measures; and 6 Not duplicate benefits available from another source for the same purpose or assistance that another Federal agency or program has more primary authority to provide.
77.7

Allowable costs.

a General. General policies for allowable costs for implementing awards and subawards are addressed in 2 CFR 200.101, 200.102, 200.400
200.476.
1 Eligible management costsi Recipient. Recipients are eligible to receive management costs direct and indirect administrative costs pursuant to 2 CFR part 200 Subpart E consisting of a maximum of 10 percent of the planning and project activities awarded to the recipient, each fiscal year under FMA. These costs must be included in the application to FEMA.

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