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Federal Register / Vol. 86, No. 173 / Friday, September 10, 2021 / Rules and Regulations
ii Subrecipient. Subapplicants may include a maximum of 5 percent of the total funds requested for their subapplication for management costs to support the implementation of their planning or project activity. These costs must be included in the subapplication to the recipient.
2 Indirect costs. Indirect costs of administering the FMA program are eligible as part of the 10 percent management costs for the recipient or the 5 percent management costs of the subrecipient, but in no case do they make the recipient eligible for additional management costs that exceed the caps identified in paragraph a1 of this section. In addition, all costs must be in accordance with the provisions of 2 CFR parts 200 and 3002.
b Pre-award costs. FEMA may fund eligible pre-award costs related to developing the application or subapplication at its discretion and as funds are available. Recipients and subrecipients may be reimbursed for eligible pre-award costs for activities directly related to the development of the project or planning proposal. Costs associated with implementation of the activity but incurred prior to award are not eligible. Therefore, activities where implementation is initiated or completed prior to award are not eligible and will not be reimbursed.
c Duplication of benefits. Grant funds may not duplicate benefits received by or available to applicants, subapplicants and project participants from insurance, other assistance programs, legal awards, or any other source to address the same purpose.
Such individual or entity must notify the recipient and FEMA of all benefits that it receives or anticipates from other sources for the same purpose. FEMA
will reduce the subaward by the amounts available for the same purpose from another source.
d Negligence or other tortious conduct. FEMA grant funds are not available where an applicant, subapplicant, other project participant, or third partys negligence or intentional actions contributed to the conditions to be mitigated. If the applicant, subapplicant, or project participant suspects negligence or other tortious conduct by a third party for causing such condition, they are responsible for taking all reasonable steps to recover all costs attributable to the tortious conduct of the third party. FEMA generally considers such amounts to be duplicated benefits available for the same purpose, and will treat them consistent with paragraph c of this section.

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e Legal obligations. FEMA grant funds are not available to satisfy or reimburse for legal obligations, such as those imposed by a legal settlement, court order, or State law.
77.8

Grant administration.

a General. Recipients must comply with the requirements contained in 2
CFR parts 200 and 3002 and FEMA
award requirements, including submission of performance and financial status reports. Recipients must also ensure that subrecipients are aware of and comply with 2 CFR parts 200 and 3002.
b Cost overruns. 1 During the implementation of an approved grant, the recipient may find that actual costs are exceeding the approved award amount. While there is no guarantee of additional funding, FEMA will only consider requests made by the recipient to pay for such overruns if:
i Funds are available to meet the requested increase in funding; and ii The amended grant award meets the eligibility requirements, including cost share requirements, identified in this section.
2 Recipients may use cost underruns from ongoing subawards to offset overruns incurred by another subawards awarded under the same award. All costs for which funding is requested must have been included in the original subapplications cost estimate. In cases where an underrun is not available to cover an overrun, the Administrator may, with justification from the recipient and subrecipient, use other available FMA funds to cover the cost overrun.
3 For all cost overruns that exceed the amount approved under the award, and which require additional Federal funds, the recipient must submit a written request with a recommendation, including a justification for the additional funding to the Regional Administrator for a determination. If approved, the Regional Administrator will increase the award through an amendment to the original award document.
c Recapture. At the time of closeout, FEMA will recapture any funds provided to a State or a community under this part if the applicant has not provided the appropriate matching funds, the approved project has not been completed within the timeframes specified in the grant agreement, or the completed project does not meet the criteria specified in this part.
d Remedies for noncompliance.
FEMA may terminate an award or take other remedies for noncompliance in
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accordance with 2 CFR 200.339 through 200.343.
e Reconsideration. FEMA will reconsider determinations of noncompliance, additional award conditions, or its decision to terminate a Federal award. Requests for reconsideration must be made in writing to FEMA within 60 calendar days after receipt of a notice of the action, and in accordance with submission procedures set out in guidance. FEMA will notify the requester of the disposition of the request for reconsideration. If the decision is to grant the request for reconsideration, FEMA will take appropriate implementing action.
PART 79RESERVED

4. Add and reserve part 79.

PART 80PROPERTY ACQUISITION
AND RELOCATION FOR OPEN SPACE
5. Revise the authority citation for part 80 to read as follows:

Authority: Robert T. Stafford disaster relief and emergency assistance act, 42 U.S.C.
5121 through 5207; the National Flood Insurance Act of 1968, as amended, 42 U.S.C.
4001 et seq.; Homeland Security Act of 2002, 6 U.S.C. 101.

6. Revise 80.3 to read as follows:

80.3

Definitions.

a Except as noted in this part, the definitions applicable to the funding program apply to implementation of this part. In addition, for purposes of this part:
b Applicant means a State or Indian Tribal government applying to FEMA
for a Federal award that will be accountable for the use of funds. Once funds have been awarded, the applicant becomes the recipient and may also be a pass-through entity.
c Federal award means the Federal financial assistance that a recipient or subrecipient receives directly from FEMA or indirectly from a pass-through entity. The terms award and grant may also be used to describe a Federal award under this part.
d Market Value means the price that the seller is willing to accept and a buyer is willing to pay on the open market and in an arms length transaction.
e National of the United States means a person within the meaning of the term as defined in the Immigration and Nationality Act, 8 U.S.C.
1101a22.
f Pass-through entity means a recipient that provides a subaward to a subrecipient.
g Purchase offer is the initial value assigned to the property, which is later
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