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Federal Register / Vol. 86, No. 173 / Friday, September 10, 2021 / Rules and Regulations
mitigation plans to meet the planning criteria outlined in 44 CFR part 201.

e Property acquisitions and relocation requirements. Property acquisitions and relocation projects for open space proposed for funding pursuant to a major disaster declared on or after December 3, 2007 must be implemented in accordance with part 80
of this chapter.

206.435

Amended
26. Amend 206.435 by removing the word shall and adding in its place the word will in the last sentence of paragraph a.
27. Amend 206.436 by revising paragraphs a, b, c introductory text, c1, e, and g to read as follows:

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206.436

Application procedures.

a General. This section describes the procedures to be used by the recipient in submitting an application for HMGP
funding. Under the HMGP, the State or Indian Tribal government is the recipient and is responsible for processing subawards to applicants in accordance with 2 CFR parts 200 and 3002. Subrecipients are accountable to the recipient.
b Governors Authorized Representative. The Governors Authorized Representative serves as the grant administrator for all funds provided under the Hazard Mitigation Grant Program. The Governors Authorized Representatives responsibilities as they pertain to procedures outlined in this section include providing technical advice and assistance to eligible subrecipients, and ensuring that all potential applicants are aware of assistance available and submission of those documents necessary for grant award.
c Hazard mitigation application.
Upon identification of mitigation measures, the State Governors Authorized Representative will submit its Hazard Mitigation Grant Program application to the FEMA Regional Administrator. The application will identify one or more mitigation measures for which funding is requested. The application must include a Standard Form SF 424, Application for Federal Assistance, SF 424D, Assurances for Construction Programs, if appropriate, and a narrative statement. The narrative statement will contain any pertinent project management information not included in the States administrative plan for Hazard Mitigation. The narrative statement will also serve to identify the
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specific mitigation measures for which funding is requested. Information required for each mitigation measure must include the following:
1 Name of the subrecipient, if any;

e Extensions. The State may request the Regional Administrator to extend the application time limit by 30 to 90
day increments, not to exceed a total of 180 days. The recipient must include a justification in its request.

g Indian Tribal recipients. Indian Tribal governments may submit a SF
424 directly to the Regional Administrator.
28. Amend 206.437 by revising paragraphs a, b4i, x, and xiii, and d to read as follows:
206.437

State administrative plan.

a General. The State must develop a plan for the administration of the Hazard Mitigation Grant Program.
b
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i Identify and notify potential applicants subrecipients of the availability of the program;

x Provide technical assistance as required to subrecipients;

xiii Determine the percentage or amount of pass-through funds for management costs provided under 44
CFR part 207 that the recipient will make available to subrecipients, and the basis, criteria, or formula for determining the subrecipient percentage or amount.

d Approval. The State must submit the administrative plan to the Regional Administrator for approval. Following each major disaster declaration, the State must prepare any updates, amendments, or plan revisions required to meet current policy guidance or changes in the administration of the Hazard Mitigation Grant Program.
Funds will not be awarded until the State Administrative Plan is approved by the FEMA Regional Administrator.
29. Revise 206.438 to read as follows:
206.438

Project management.

a General. The State serving as recipient has primary responsibility for project management and accountability of funds as indicated in 2 CFR parts 200
and 3002 and 44 CFR part 206. The State is responsible for ensuring that subrecipients meet all program and administrative requirements.

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b Cost overruns. During the execution of work on an approved mitigation measure the Governors Authorized Representative may find that actual project costs are exceeding the approved estimates. Cost overruns which can be met without additional Federal funds, or which can be met by offsetting cost underruns on other projects, need not be submitted to the Regional Administrator for approval, so long as the full scope of work on all affected projects can still be met. For cost overruns which exceed Federal obligated funds and which require additional Federal funds, the Governors Authorized Representative will evaluate each cost overrun and submit a request with a recommendation to the Regional Administrator for a determination. The applicants justification for additional costs and other pertinent material must accompany the request. The Regional Administrator will notify the Governors Authorized Representative in writing of the determination and process a supplement, if necessary. All requests that are not justified must be denied by the Governors Authorized Representative. In no case will the total amount obligated to the State exceed the funding limits set forth in 206.432b.
Any such problems or circumstances affecting project costs must be identified through the quarterly progress reports required in paragraph c of this section.
c Progress reports. The recipient must submit a quarterly progress report to FEMA indicating the status and completion date for each measure funded. Any problems or circumstances affecting completion dates, scope of work, or project costs which are expected to result in noncompliance with the approved grant conditions must be described in the report.
d Payment of claims. The Governors Authorized Representative will make a claim to the Regional Administrator for reimbursement of allowable costs for each approved measure. In submitting such claims the Governors Authorized Representative must certify that reported costs were incurred in the performance of eligible work, that the approved work was completed and that the mitigation measure is in compliance with the provisions of the FEMA-State Agreement. The Regional Administrator will determine the eligible amount of reimbursement for each claim and approve payment. If a mitigation measure is not completed, and there is not adequate justification for noncompletion, no Federal funding will be provided for that measure.
e Audit requirements. Uniform audit requirements as set forth in 2 CFR parts 200 and 3002 and 44 CFR part 206

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