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US. Department of Homeland Security FEMA Region 6 800 Noeth Le Denton, TX FEMA October 17, 2018 James Waskom, Director Governor's Office of Homeland Security and Emergency Preparedness 7667 Independence Blvd. Baton Rouge, LA 70806 Re: DR-1603/1607-LA Office of Community Development Unit Cost Guidance, Request for Guidance Dear Mr. Waskom: Per the Governor's Office of Homeland Security and Emergency Preparedness (GOHSEP) letter to the Federal Emergency Management Agency (FEMA) dated July 12, 2018, and titled, “Request for Guidance,” the State requested specific guidance regarding cost eligibility of the 27 homes that were attached to the letter. The State requested information on whether Hazard Mitigation Grant Program (HMGP) grant funds should be used to reimburse these homeowners the full amount of the grant or should HMGP grant funds have not been expended and the funds should be deobligated, which would necessitate being recouped from the homeowners. Our guidance is as follows: If a property was approved to be part of the pilot after the issuance of the Unit Cost Guidance (UCG) on January 8, 2007, then the UCG should be utilized. Ifa property was approved by FEMA for the pilot before the issuance of the UCG then the full cost of the reconstruction should be examined for cost eligibility and cost reasonableness and reimbursed as appropriate minus any duplication of benefits. For reference, on January 8, 2007, FEMA issued a document in support of the HMGP Reconstruction Grant Pilot for Hurricanes Katrina, Rita and Wilma guidance that was introduced June 23, 2006. The document, Unit Cost Guidance (UCG) and Instructions for Developing Unit Cost Estimates, established guidance and instructions for developing unit cost estimates for projects submitted under FEMA’s HMGP Reconstruction Grant Pilot activities for Hurricanes Katrina, Rita, and Wilma. The unit costs developed in this document are based on foundation type and required elevation height, as well as for one and two-story structures. The square foot cost data developed in this document are based on “R. S. Means Square Foot Costs (2006)” for “an average quality of construction as defined by the guidance.” This document was developed to ensure that HMGP funds were sufficient to provide for a structure based on standard grade and standard quality materials. Mr. Waskom October 17, 2018 Page 2 ‘The UCG became the instrument that was used by FEMA and the State to determine cost eligibility and the maximum amount allowed for properties involved in the Pilot Reconstruction Program. FEMA has stated in the past, and reiterates in this letter, that GOHSEP should not reimburse a homeowner for expenditures above the UCG as part of the Pilot Reconstruction Program. To reiterate our guidance: If property was approved to be part of the pilot after the issuance of the UCG on January 8, 2007, then the UCG should be utilized. Please find the March 1, 2013, letter to Mr. Stanley Cohn, signed by then FEMA Region 6 External Affairs Director Philip Beasley, attached for reference. That 2013 letter is replaced by this letter, which should be used in its place. If you have any further questions, please contact Sandra Keefe, Mitigation Division Director, at (040) 898-5127 or sandra, keefe@fema.dhs.gov. George A. Robinson Regional Administrator Attachment

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