FEMA Basics
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You should not expect FEMA to keep you financially whole.
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You must apply for a Small Business Administration (SBA) loan. You must either be denied or accept the loan before FEMA will provide any assistance.
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If you are offered a loan and do not accept it, you will not be eligible for and FEMA assistance.
Where can you get more FEMA Information?
FEMA has an extensive website and many publications. This discussion is not meant to replicate what FEMA has produced; it is intended to help survivors understand some key points. Refer to the Individual Assistance Policy and Program Guide 2019 for specifics. FEMA also has an extensive library of FEMA FACT Sheets. Many are updated for each declared disaster.
What does FEMA cover?
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The Individuals and Households Program (IHP) grants provide relief for disaster survivors who do not have insurance or have insurance coverage that is not adequate. The scope of these grants is very narrow. They are intended to address basic needs and serious issues. The program is not intended to replace insurance.
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If you do not qualify for a grant, or your needs exceed the grant maximum, a Small Business Administrations loan is an option.
How much money can you receive from FEMA?
FEMA, by law, can provide only a set amount of grant assistance. Each fiscal year the amount is increased to reflect inflation. The amount for disasters that occurred after October 1, 2021, is $37,900 for housing assistance and $37,900 for other needs assistance (ONA).
Individuals and Households Program
We were not eligible for Housing Assistance or ONA because we had insurance coverage and our income exceeded the threshold.
What does Housing Assistance cover?
Assistance can include the following:
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Lodging expense reimbursement
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Rent
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Repairs
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Home replacement to the maximum amount of the grant
The housing assisatnce grants are not based on income but on safety and habitability.
What does Other Needs Assistance (ONA) cover?
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ONA is for necessary expenses and serious needs directly caused by the disaster.
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Survivors must apply for an SBA loan for all other ONA expenses. You may be eligible if you are denied by the SBA or if the SBA loan only partially covers your needs.
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ONA is income based.
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ONA includes these needs:
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Temporary housing
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Emergency home repairs for the primary residence
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Home heating
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Personal property, moving, and storage
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Transportation assistance
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Funeral, medical, dental, child care, critical needs assistance, cleaning a removal assistance, and miscellaneous items do not require an SBA loan application.
What is Critical Needs Assistance (CNA) ?
Critical needs are lifesaving and life-sustaining items.
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Water, food
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First aid
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Prescriptions, consumable medical supplies, durable medical equipment
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Infant formula and diapers
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Personal hygiene items
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Fuel for transportation
CNA is only authorized if most applicants from the declared area will be displaced from their primary residence for seven days or more. For disasters declared after October 1, 2021, CNA in eligible areas included a one-time $700 payment per household. This counts toward the ONA maximum.
FEMA Questions
The 2018 Alaska earthquake resulted in widespread foundation damage. FEMA did not consider foundation repairs to be a serious need. The Alaska Congressional Delegation worked with FEMA to make an exception specific to the 2018 Alaska Earthquake to include foundation repairs.
What if you need long-term housing?
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FEMA will provide Direct Housing Assistance (DHA) when there is not enough housing available for disaster survivors. This funding does not count toward your maximum grant amount.
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Funding is for 18 months after the disaster declaration, unless FEMA grants an extension.
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FEMA administers the leases and contracts. Money is not provided directly to the individual. Housing options include apartment or multifamily housing leases, mobile homes, trailers, modular homes, and permanent housing construction.
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Permanent housing construction has very limited application and only applies to remote communities that are not part of the continental US, such as in rural Alaska and US Island Territories.
Why won’t FEMA cover your repair?
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What you consider critical may not meet FEMA criteria. A broken exterior door, water damage, and utility repairs would likely be covered. Dry wall repair, minor siding damage, and broken furniture would not be covered.
FEMA and Insurance
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In my case, the earthquake deductible was $43,000 and the SBA offered us a loan for that amount. We received a payout from insurance, but it did not cover the costs related to building a new foundation.
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Even though FEMA covered foundation work, we were not eligible because the amount we received from insurance exceeded the IHP max.
What if your insurance payment is more than the available grant?
If your payment from insurance exceeds the maximum grant, you are not eligible for assistance. Assistance does not cover the deductible. SBA will loan money for the deductible.
What if you don’t have flood insurance? Will FEMA help?
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If this is your first flood, you are eligible for assistance.
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If this is your second flood, you are not eligible for Individuals and Housing Program (IHP) or Other Needs Assistance (ONA) grants. By law, a homeowner who lives in a flood zone and previously received FEMA assistance must purchase insurance to be eligible for FEMA assistance in the future.
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You still may be eligible for Direct Temporary Housing assistance. This applies for the time immediately after the event but does not include long-term housing.
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Some water damage may still be covered by your homeowners insurance.