Category Archives: Recovery

County Mismanagement Leads to Staggering FEMA Debt

County Mismanagement Leads to Staggering FEMA Debt

Henderson County, Ill. failed to comply with all federal regulations during management of Public Assistance projects and is now faced with a staggering $471,791 debt to FEMA.

In 2008, Illinois was hit with historic flooding. One of the counties impacted–Henderson County, Ill.–received federal funding through the Public Assistance program. [1] However, a Department of Homeland Security audit in 2011 revealed that the county received $3.7 million in ineligible funds from FEMA due to its failure to comply with the federal laws and regulations in completing the work (not 1ahendmapnecessarily that the work itself was ineligible for funding). [2] The county was able appeal and reduce the debt significantly to $471,791; however, that is still a sizable debt for the County of approximately 7,000 residents and a $49,612 to repay. [3] In an effort to try and buy the county time, the County’s Board decided to deplete two emergency reserve funds, bringing the debt down to $316,791.

What is unclear is exactly why, but if the County does not pay the debt back by June 2017, the county faces the loss of several vital agencies such as the Health Department, Sheriff’s Office, and Transportation Services. What concerns the board is that after making this “good faith payment”, the county may not have the funds to respond to the next looming flood.

Whats Happening?

This case looks like a great example of a successful 1st Appeal–despite what it looks–reducing the County’s debt to FEMA 89%. The County is trying to use it’s elected representatives to find ways to further reduce the struggling community’s debt, find sources to pay the debt, and keep vital services open. What else could the County do? They could possibly work out a payment plan or do a 2nd Appeal to FEMA. A 2nd Appeal may or may not yield better results though. Additionally, counties can actually file for bankruptcy under Chapter 9 of the U.S. Bankruptcy code. If they do so, it would likely just be a reorganization of the debt, rather than a charge-off. [4]

No matter how this case pans out, it will be one to follow and watch the outcome of.

References:

[1] Elizabeth Meyer, County Depletes Two Emergency Reserve Funds as Good-Faith Effort at Denting FEMA Debt, The Hawk Eye (Sept. 28, 2016). See generally Fed. Emergency Mgmt. Agency, Disaster Declarations for Illinois, (Sept. 29, 2016) https://www.fema.gov/disasters/grid/state-tribal-government/55?field_disaster_type_term_tid_1=All (Three major disaster declarations were declared in 2008 for Illinois for Severe Storms and Flooding: 1800 in Oct. 3, 2008; 1771 in Jun. 24, 2008; and 1747 in Mar. 7, 2008).

[2] Elizabeth Meyer, County Depletes Two Emergency Reserve Funds as Good-Faith Effort at Denting FEMA Debt, The Hawk Eye (Sept. 28, 2016).

[3] Henderson Cty., Henderson County EDC Demographics, (2008) http://www.hendersoncountyedc.com/About-Henderson/Demographics.

[4] See 11 USCA §901 et seq; U.S. Courts, Chapter 9 – Bankruptcy Basics, (2016), http://www.uscourts.gov/services-forms/bankruptcy/bankruptcy-basics/chapter-9-bankruptcy-basics (noting that the definition of a municipality under Chapter 9 of the Bankruptcy code is broad enough to include a County Government).

United Methodist Church Disaster Response

United Methodist Church Disaster Response

The United Methodist Church does a lot with disaster response and long term recovery operations. So much, you would wonder why we don’t  know more about them.

On Monday night I had the pleasure of listening to Rev. Laraine Waughtal speak about the projects that the Central Texas Conference of the United Methodist Church is doing following so many disasters. To be brief, the presentation was enlightening. I had the opportunity to get a better idea of what the United Methodist Church is doing in response to disasters.

Background

umns12_222_1_lightboxb-555x388Rev. Laraine Waughtal is the Coordinator of Disaster Response for the Central Texas Conference of the United Methodist Church. The Conference covers a vast area that generally stretches from
Waco, North to Fort Worth, West towards (but not including Abilene), East towards Corsicana, and South into Round Rock. To date, this is one of the more active conferences when it comes to disaster relief efforts (only rivaled by Oklahoma with its frequent tornados and Louisiana with the frequent flooding). The organization is funded by donations from members of and donors to the United Methodist Church. The CTCUMC’s Disaster Relief efforts are receive additional funding and support from the national level United Methodist Committee On Relief (“UMCOR”). Learn more about what UMCOR does on the national and international stage by clicking here.

What is important to note, is that all of the contributions to Disaster Relief efforts made to umcorCTCUMC go directly to those causes. There is only one full-time staff member (Rev. Waughtal) and her salary is paid by the church. All others are volunteers. This means all the donations go straight into running disaster relief operations. This is very important because in many non-profit organizations, there is such an expensive administrative overhead cost that sometimes a good portion of the money ends up going to pay the salaries of the managers or full-time staff to keep the organization running. Sometimes, once an organization gets so large, it becomes a necessary evil. However, some organizations–which have made news headlines–almost spend too much money and time building the organization and lose sight of the mission that started them. Not with CTCUMC’s Disaster Relief mission.

Bringing it Back to the Law

So how does this relate to the law? Easy. Non-profits (including churches) have to deal with the legal aspects of training, liability, insurance coverage, and taxation (yes, they still have to file paperwork to maintain tax-free status). Now how does this apply to emergency management law? If the Church (besides the United Methodist Church) run a clinic, hospital, homeless shelter, food pantry, or other community based operation that is damaged during a disaster; they could be eligible for help from FEMA through the Public Assistance Programs. There are some very stringent qualifications for Public Assistance Projects; however despite these qualifications, having the ability to help get the community program back on track after a disaster can lend a sigh of relief to a non-profit’s leadership facing the prospect of closure.

One of the interesting things is that FEMA does help provide some case management services after a presidential disaster declaration (learn more about FEMA Case Management Grants and Programs here). However, if there is no presidential disaster declaration, it can be left up to the state to take care of the unmet needs of the disaster survivors. An interesting note–not really reported elsewhere–CTCUMC has managed over 600 long term recovery cases (i.e. connecting people with resources) after the West, Texas explosion in 2013. If that is not all the cases that came out of the incident, it is a substantial majority of them. If and when FEMA makes Case Management Grants available to states, the fact that non-profits like the United Methodist Church are providing case management services, means they could possibly be eligible for the grants. Though it would not be much, it would help offset some of the costs associated with caring for volunteers caring for disaster survivors (yes–for those of you who never realized it– volunteers actually come with their own costs).

Take a look at CTCUMC’s Disaster Relief website and some of what they do here.

Do City Codes Still Apply After a Disaster?

Do City Codes Still Apply After a Disaster?

Rowlett, TX Residents are getting notices to clean up their yards during recovery.

This is a good piece by WFAA in Dallas, Texas. The City of Rowlett Northeast of Dallas was hit by a tornado just after Christmas this past year and an interesting move by the City. In summary, the City began putting out notices of violations for yards being neglected per City Ordinances (i.e. grass too tall). The interesting part about this is, the city isn’t trying to crack down on anything. They’re just trying to find out who’s not working on recovering from the devastation so they can provide attention as necessary.

Personally from my experience with warning notices and such, I would have recommended that the city use different styled and colored notices of violation. One that is more tailored to the situation. When I was an Military Policemen we handed out what we called “Got-ya” tickets to let people know that they had let their personal property unattended and susceptible to theft (one of our largest problems on the installation). The ticket was designed in a way that it would alert people that they did something and we were trying to help; without shocking them that they were in trouble and become defensive. I liken the “got-ya” tickets to this situation since the city is really trying to identify problem properties; more than crack down on people.

Though the standard code compliance warning does the job of shocking the owner into either calling the city or cleaning up their yard; it also might do some damage for community relations between the constituency and the municipality. I would be interested to see if there is any political/bureaucratic fallout from this well intentioned move.

See the WFAA Report Here

City of Rowlett Press Release on Abandoned or Destroyed Structures Here

City of Rowlett “Code Compliance and the Remediation and Demolition of Substandard and Dangerous Structures” available Here

Visit the City of Rowlett’s Code Enforcement Department Web page Here

 

Reefer & Recovery: Possible SBA Disaster Loan Issues

Reefer & Recovery: Possible SBA Disaster Loan Issues

As states and tribes legalize marijuana, are there any problems that emergency managers face? Regardless of personal/political opinions, are there tertiary impacts we in the profession should be thinking and advising our political leaders about?

As states and tribes legalize marijuana, emergency managers are faced problem of controlling the impact of a disaster without the assistance of federal programs that are heavily relied upon. The Emergency Management Cycle is the standardized method emergency managers use to understand how to approach their job. Each of the cycle’s four phases present a unique problem for consideration concerning marijuana legalization. This article is second in a series of four articles related to marijuana legalization and potential issues related to Emergency Management. This article asks whether or not legalized marijuana grow operations and dispensaries are eligible for Disaster Loans from the U.S. Small Business Administration.

Note: This article does not state a position on the legalization of marijuana and merely identifies potential issues for emergency management as it is legalized at state and tribal levels. This article is not legal advice! Consult with a licensed attorney in your jurisdiction!

Background: After the President issues a federal disaster declaration, the U.S. Small Business Administration (“SBA”) can offer low-interest loans to businesses and individuals. Businesses can qualify for up to $2 million in low-interest physical disaster loans to cover damage to their business. Further, small businesses, and agricultural operations who suffer an economic impact from a disaster can apply for the Economic Injury and Disaster Loan program (“EIDL”).

Hypothetical: California just experienced its first tsunami from a 8.7 magnitude earthquake centered around the Cascadia subduction zone (predicted to be the most dangerous part of the San Andreas fault). You represent a legalized medical marijuana grower in Northern California. The grow operation lost everything to the tsunami, including: plants, equipment, inventories, and facilities. The owner wants to know if she can qualify for either a Physical or EIDL SBA loan to get everything started again. What do you advise her?

Answer: Apply, but don’t expect to get a yes. Under 13 CFR § 123.201(d), illegal activities are generally ineligible for both disaster loan programs. However, the SBA encourages everyone to apply for a disaster loan simply because things can change depending on the disaster. Upon receiving the denial letter from the SBA, the owner will have six months to submit a written request for reconsideration of the application by a different SBA loan officer. If the request is denied for a second time, the owner will have at a minimum 30 days to appeal to the SBA’s Office of Hearings and Appeals. An additional 60 days may be granted if the second denial letter states new reasons for denying the application. At any one of these points the argument could be made that the grow operation was legal. There are no general cases on point regarding what “concerns” are illegal and the statute is vague enough, making the approval of a grow operation’s application subject to the discretion of an SBA loan officer or Administrative Judge.

Next Step: Though immediate reaction might be to lobby for some sort of policy change, doing so might create more hurdles for marijuana businesses. Currently a single sentence in both statute and operating procedure guide loan officers on marijuana businesses. Advocating for policy reform independent of rescheduling efforts may lead to more barriers. Lack of formal guidance enables owners to make better arguments during reviews and hearings.

Paramedics in Body Armor?

Paramedics in Body Armor?

Cleveland EMS units will now need to wear body armor during calls for service in the field.

Effective December 21, 2015 the Cleveland EMS Director ordered her employees to begin wearing their issued bullet-proof vests while on calls in the field. For example, Paramedics would be required to wear the personal protective equipment while responding to a medical emergency at an apartment complex but not at court or at the hospital. Though the EMS Director stated that no specific threats have been made against the department, she did cite incidents in other jurisdictions (such as Detroit) where Paramedics had been attacked. In the public safety community we have always known that first responders (i.e. police, fire, ems) are potential secondary targets of attacks; however, we don’t always see them as potential targets at rather routine call for service–such as the infamous “difficulty breathing” call that always seemed to come about the time I was scheduled to go home.

This is the first EMS service I could find that has started requiring body armor during all calls for service. One of the big questions is what happens if someone takes their body armor off to better perform their duties during a medical response? Are they still able to receive workman compensation benefits? This will be a muddy area that may find precedent from the law enforcement community.

Texans Needed for FEMA Jobs

Texans Needed for FEMA Jobs

FEMA is looking to hire short-term help to get communities back on their feet from this summer’s severe weather throughout Texas.

The Corsicana Daily Sun reported that the Federal Emergency Management Agency (FEMA) has partnered with the Texas Workforce Commission to hire a slew of Temporary-Workers to help the state recover from the severe weather and flooding we experienced in May and early June of this year. Applications will be accepted through July 24th, 2015 or until all the positions are filled. Positions are available in various areas including: Administrative/Clerical, Customer Service, Logistics, Report Writing, Switchboard/Help Desk, and Technical/Architecutre/Engineering.

There are several different types of federal government employment: (i) Full-Time, Permanent, (ii) Part-Time, Permanent, (iii) Full-Time, Temporary, (iv) Part-Time, Temporary. These positions will fall in to the 3rd and 4th categories as previously mentioned. What that means for job seekers is that this will be a good gig, until the job is done. Not that this is a bad thing, but it is important to know that going into it.

What are the details and the process? Candidates must go online to www.workintexas.com and fill out an applications. Qualified candidates will then be forwarded onto FEMA staff in either Austin, Denton, or Houston for selection and interview. Candidates must meet the following qualifications for their applications to be considered must be at least 18 years of age or older and a U.S. Citizen. Be aware, candidates will be required to have valid government identification cards such as a military ID or drivers license and be able to pass a background check that includes fingerprinting.

Though it sounds like a lot to take in, if you’ve ever desired to find out what its like to work with FEMA, it could be an awesome once in a lifetime experience. For college students out on break this summer and looking for a job, this just might be the thing you need to help bolster that resume of yours!

– Will

Read the Article here.

Texas Adds 20 Counties to the Presidential Disaster Declaration

Texas Adds 20 Counties to the Presidential Disaster Declaration

FEMA released the Presidential Disaster Declaration for 20 more counties Texas impacted by severe weather, tornados, and flooding the state has experienced since May 4th.

The Federal Emergency Management Agency released a statement regarding the Presidential Disaster Declaration for the State of Texas, adding twenty counties. The additional counties include: Bastrop, Blanco, Caldwell, Denton, Eastland, Fort Bend, Gaines, Guadalupe, Henderson, Hidalgo, Johnson, Milam, Montague, Navarro, Rusk, Smith, Travis, Wichita, Williamson and Wise. (This is in addition to Harris, Hays, and Van Zandt counties which received a disaster declaration late last month). As many may know the State has experienced severe storms, tornados, straight-line winds, and flooding since May 4th, and is still ongoing. The declaration makes grants available for temporary housing and home repairs, low-cost loans to cover uninsured property losses and other programs individuals and business owners can use to recover from the disaster’s impacts.

Individual Assistance (Households and Businesses)

The declaration makes grants available for temporary housing and home repairs, low-cost loans to cover uninsured property losses and other programs individuals and business owners can use to recover from the disaster’s impacts. For specifics on what you may qualify for it is important to visit www.disasterassistance.gov or call 1-800621-FEMA (3362). The toll-free number will operate between 7AM and 9PM seven days a week until further notice. Below are summaries of the programs available, it is important to note though, you must apply to FEMA for the assistance, it is not an automatically applied for you.

Rental Assistance for Temporary Housing: Initial assistance may be provided for up to three months for homeowners and at least one month for renters.  Assistance may be extended if requested after the initial period based on a review of individual applicant requirements.

Home Repair/Fixture Replacement Grants: Grants for home repairs and replacement of essential household items not covered by insurance to make damaged dwellings safe, sanitary and functional.

Immediate Personal Property Replacement Grants: Grants to replace personal property and help meet medical, dental, funeral, transportation and other serious disaster-related needs not covered by insurance or other federal, state and charitable aid programs.

Unemployment Compensation: Unemployment payments up to 26 weeks for workers who temporarily lost jobs because of the disaster and who do not qualify for state benefits, such as self-employed individuals.

Low Interest Loans for Uninsured Losses: Low-interest loans to cover residential losses not fully compensated by insurance.  Loans available up to $200,000 for primary residence; $40,000 for personal property, including renter losses.  Loans available up to $2 million for business property losses not fully compensated by insurance.

Low Interest Small Business, Non-Profit & Agricultural Loans: Loans up to $2 million for small businesses, small agricultural cooperatives and most private, non-profit organizations of all sizes that have suffered disaster-related cash flow problems and need funds for working capital to recover from the disaster’s adverse economic impact.  This loan in combination with a property loss loan cannot exceed a total of $2 million.

Low Interest Agricultural Property Loss Loans: Loans up to $500,000 for farmers, ranchers and aquaculture operators to cover production and property losses, excluding primary residence.

Other Miscellaneous Assistance: Crisis counseling, income tax assistance for filing casualty losses, legal advice assistance, veteran’s benefits, and social security matters.

Public Assistance

Federal funding has also been made available for some local governments and select non-profits (on a cost sharing basis) for emergency work and repair/replacement of facilities damaged by the severe weather and flooding. Local governments and select non-profits can find out more about application procedures at the federal and state applicant briefings hosted by recovery officials in the near future. Local governments can apply for assistance in:

Cost Sharing of Expenses from Lifesaving Measures Taken: Payment of not less than 75 percent of the eligible costs for emergency protective measures, including direct federal assistance, taken to save lives and protect property and public health. Emergency protective measures assistance is available to state and eligible local governments on a cost-sharing basis.

Cost Sharing of Repair/Replacement of Public Infrastructure: Payment of not less than 75 percent of the eligible costs for repairing or replacing damaged public facilities, such as roads, bridges, utilities, buildings, schools, recreational areas and similar publicly owned property, as well as certain private non-profit organizations engaged in community service activities.

Cost Sharing of Hazard Mitigation Projects During Recovery: Payment of not more than 75 percent of the approved costs for hazard mitigation projects undertaken by state and local governments to prevent or reduce long-term risk to life and property from natural or technological disasters.

Texas Receives Presidential Disaster Declaration

Texas Receives Presidential Disaster Declaration

FEMA released the Presidential Disaster Declaration for Texas early this morning due to the severe weather, tornados, and flooding the state has experienced since May 4th.

Early this morning, the Federal Emergency Management Agency released a statement regarding the Presidential Disaster Declaration for the State of Texas (which includes Harris, Hays, and Van Zandt counties). As many may know the State has experienced severe storms, tornados, straight-line winds, and flooding since May 4th, and is still ongoing. The declaration makes grants available for temporary housing and home repairs, low-cost loans to cover uninsured property losses and other programs individuals and business owners can use to recover from the disaster’s impacts.

Individual Assistance (Households and Businesses)

Though damage assessments are ongoing (which may cause more counties to be added to the disaster declaration) the federal assistance programs have been made available for individuals in: (i) Harris, (ii) Hays, and (iii) Van Zandt counties. The declaration makes grants available for temporary housing and home repairs, low-cost loans to cover uninsured property losses and other programs individuals and business owners can use to recover from the disaster’s impacts. For specifics on what you may qualify for it is important to visit www.disasterassistance.gov or call 1-800621-FEMA (3362). The toll-free number will operate between 7AM and 9PM seven days a week until further notice. Below are summaries of the programs available, it is important to note though, you must apply to FEMA for the assistance, it is not an automatically applied for you.

Rental Assistance for Temporary Housing: Initial assistance may be provided for up to three months for homeowners and at least one month for renters.  Assistance may be extended if requested after the initial period based on a review of individual applicant requirements.

Home Repair/Fixture Replacement Grants: Grants for home repairs and replacement of essential household items not covered by insurance to make damaged dwellings safe, sanitary and functional.

Immediate Personal Property Replacement Grants: Grants to replace personal property and help meet medical, dental, funeral, transportation and other serious disaster-related needs not covered by insurance or other federal, state and charitable aid programs.

Unemployment Compensation: Unemployment payments up to 26 weeks for workers who temporarily lost jobs because of the disaster and who do not qualify for state benefits, such as self-employed individuals.

Low Interest Loans for Uninsured Losses: Low-interest loans to cover residential losses not fully compensated by insurance.  Loans available up to $200,000 for primary residence; $40,000 for personal property, including renter losses.  Loans available up to $2 million for business property losses not fully compensated by insurance.

Low Interest Small Business, Non-Profit & Agricultural Loans: Loans up to $2 million for small businesses, small agricultural cooperatives and most private, non-profit organizations of all sizes that have suffered disaster-related cash flow problems and need funds for working capital to recover from the disaster’s adverse economic impact.  This loan in combination with a property loss loan cannot exceed a total of $2 million.

Low Interest Agricultural Property Loss Loans: Loans up to $500,000 for farmers, ranchers and aquaculture operators to cover production and property losses, excluding primary residence.

Other Miscellaneous Assistance: Crisis counseling, income tax assistance for filing casualty losses, legal advice assistance, veteran’s benefits, and social security matters.

Public Assistance

Federal funding has also been made available for local governments and select non-profits (on a cost sharing basis) for emergency work and repair/replacement of facilities damaged by the severe weather and flooding in: (i) Cooke, (ii) Gaines, (iii) Grimes, (iv) Harris, (v) Navarro, and (vi) Van Zandt counties. Local governments and select non-profits can find out more about application procedures at the federal and state applicant briefings hosted by recovery officials in the near future. Local governments can apply for assistance in:

Cost Sharing of Expenses from Lifesaving Measures Taken: Payment of not less than 75 percent of the eligible costs for emergency protective measures, including direct federal assistance, taken to save lives and protect property and public health. Emergency protective measures assistance is available to state and eligible local governments on a cost-sharing basis.

Cost Sharing of Repair/Replacement of Public Infrastructure: Payment of not less than 75 percent of the eligible costs for repairing or replacing damaged public facilities, such as roads, bridges, utilities, buildings, schools, recreational areas and similar publicly owned property, as well as certain private non-profit organizations engaged in community service activities.

Cost Sharing of Hazard Mitigation Projects During Recovery: Payment of not more than 75 percent of the approved costs for hazard mitigation projects undertaken by state and local governments to prevent or reduce long-term risk to life and property from natural or technological disasters.

Read the Press Release on the Disaster Declaration here.

Visit FEMA’s Disaster Assistance Website here.

Visit a list of all assistance available for application on diasterassistance.gov here.

Legislation to ensure SBA loans can build storm shelters

H.R. 2397: Authorizes use of SBA loans to build storm shelters

The Tornado Family Safety Act of 2015 helps clarify that SBA disaster loans may be used by homeowners to construct safe rooms in their rebuilt homes.

Representative Tom Cole (Oklahoma District 4 which includes Moore, OK) introduced the “Tornado Family Safety Act of 2015 on May 18th. The bill was then referred to the House Small Business Committee. The idea behind the bill would be to clearly allow for Small Business Administration Disaster Loans to be used to build storm safe room shelters as homeowners rebuild homes devastated by severe weather. Currently safe rooms meeting FEMA and ICC (International Code Council) standards cost anywhere between $3,000 and $12,000 to install.

Though as of May 21st, 2015 the text of the bill is not available, it will be interesting to note if businesses will also be eligible for these funds. Locally, many severe weather incidents occur in the late afternoon-evening timeframes and people tend to be away from their homes at that time. If these funds are made available to businesses re-building after a storm strikes, it would undoubtedly be beneficial to business owners given the scene experienced several years ago in Joplin, Missouri. (See our post asking whether safe rooms are now the new standard of care here.)

Read the Full Article here.

See the bill’s status in congress here.

Admit to Climate Change or Else…

Admit to Climate Change or Else…

Next year, FEMA will being approving state mitigation grant requests only if they include a governor’s approval of a mitigation plan that includes plans to address climate change. Though this sounds illegal to some people or an overreaching of the Federal Executive branch’s bower, it really is business as usual. This is all published in FEMA’s “State Mitigation Plan Review Guide” set to take effect March 1st, 2016.

As talked about in the 12-Step Program for Emergency Managers post, one way the federal government controls what state and local governments do and don’t do is by controlling the flow of money. For example, the only way at one point for states to get federal highway funds was to adopt the legal drinking age to 21 in their state.

States can also do this internally. One great example is a project I worked on as an Emergency Program Planner at my hometown fire department. the Texas Department of State Health Services Local Projects Grant program allowed for Fire Departments and EMS providers to request funding for projects within the departments that included up to a new ALS (Advanced Life Support) ambulance. The catch was that the municipality had to adopt the Incident Command System as a structure for managing emergencies and enroll the departments equipment/vehicles in the state’s mutual aid database.

The major thing about this mitigation action plan is that it begins bringing stricter requirements on states to improve the damaged infrastructure during recovery rather than just setting things back to the “way they were before”. This is also a resounding similarity with the Disaster Assistance Assistance Reform Act of 2015, which seeks to reduce the ever increasing costs of disasters in the United States. This sound very similar to some of the things I heard Dr. Kenda say at UNT in our Emergency Management classes in that Mitigation is conducted throughout the Emergency Management cycle, not just it’s own part of the process. If we’re doing it right, we’re saving money because if it breaks, we build it back better so it doesn’t break twice.

– Will

Read the original article: Here.

Get the State Mitigation Plan Review Guide: Here.

Read the White House Blog post: Here.