[Code of Federal Regulations]
[Title 44, Volume 1]
[Revised as of October 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 44CFR209.10]

[Page 519-521]
 
              TITLE 44--EMERGENCY MANAGEMENT AND ASSISTANCE
 
 CHAPTER I--FEDERAL EMERGENCY MANAGEMENT AGENCY, DEPARTMENT OF HOMELAND 
                                SECURITY
 
PART 209--SUPPLEMENTAL PROPERTY ACQUISITION AND ELEVATION ASSISTANCE--Table 
of Contents
 
Sec. 209.10  Project implementation requirements.

    Subgrantees must enter into an agreement with the State, with the 
written concurrence of the Regional Director, that provides the 
following assurances:
    (a) The subgrantee will administer the grant and implement the 
project in accordance with program requirements, 44 CFR parts 13 and 14, 
the grant agreement, and with applicable Federal, State, and local laws 
and regulations.
    (b) The State and subgrantee will administer the grant in an 
equitable and impartial manner, without discrimination on the grounds or 
race, color, religion nationality, sex, age, or economic status in 
compliance with section 308 of the Stafford Act (42 U.S.C. 5151) and 
Title VI of the Civil Rights Act. In implementing the grant, the State 
and the subgrantee will ensure that no discrimination is practiced.
    (c) The State and subgrantee will ensure that projects involving 
alterations to existing structures comply with all applicable State and 
local codes.
    (d) The State and subgrantee will ensure that projects comply with 
applicable State and local floodplain management requirements. 
Structures will be elevated to the Base Flood Elevation.
    (e) Property owners participating in acquisition projects may 
receive assistance up to the pre-event fair market value of their real 
property, except as limited by the eligibility criteria.
    (f) The subgrantee will establish a process, which we must approve, 
whereby property owners participating in acquisition projects may 
request a review of the appraisal for their property, or request a 
second appraisal.
    (g) The State will reduce buyout assistance by any duplication of 
benefits from other sources. Such benefits include, but are not limited 
to, payments

[[Page 520]]

made to the homeowner for repair assistance; insurance settlements; 
legal settlements; Small Business Administration loans; and any other 
payments made by any source to address the property loss unless the 
property owner can provide receipts showing that the benefits were used 
for their intended purpose to make repairs to the property.
    (h) Increased Cost of Compliance coverage benefits under the 
National Flood Insurance Program (NFIP) may be used to match elevation 
or acquisition and relocation projects. Increased Cost of Compliance 
claims can only be used for NFIP-approved costs; these can then be 
applied to the project grant match. This coverage does not pay for 
property acquisition, but can pay demolition or structure relocation.
    (i) The following restrictive covenants must be conveyed in the deed 
to any property acquired, accepted, or from which structures are removed 
(``the property''):
    (1) The property must be dedicated and maintained in perpetuity for 
uses compatible with open space, recreational, or wetlands management 
practices; and
    (2) No new structure(s) will be built on the property except as 
indicated in this paragraph:
    (A) A public facility that is open on all sides and functionally 
related to a designated open space or recreational use;
    (B) A public rest room; or
    (C) A structure that is compatible with open space, recreational, or 
wetlands management usage and proper floodplain management policies and 
practices, which the Director approves in writing before the 
construction of the structure begins.
    (D) In general, allowable open space, recreational, and wetland 
management uses include parks for outdoor recreational activities, 
nature reserves, cultivation, grazing, camping (except where adequate 
warning time is not available to allow evacuation), temporary storage in 
the open of wheeled vehicles that are easily movable (except mobile 
homes), unimproved, permeable parking lots and buffer zones. Allowable 
uses generally do not include walled buildings, flood reduction levees, 
highways or other uses that obstruct the natural and beneficial 
functions of the floodplain.
    (3) After completing the acquisition project, no application for 
future disaster assistance will be made for any purpose with respect to 
the property to any Federal entity or source, and no Federal entity or 
source will provide such assistance, even for the allowable uses of the 
property described above.
    (4) Any structures built on the property according to paragraph 
(i)(2) of this section, must be: Located to minimize the potential for 
flood damage; floodproofed; or elevated to the Base Flood Elevation plus 
one foot of freeboard.
    (5) The subgrantee or other public property owner will seek the 
approval of the State grantee agency and our Regional Director before 
conveying any interest in the property to any other party. The 
subgrantee or other public entity or qualified private nonprofit 
organization must retain all development rights to the property. Our 
Regional Director will only approve the transfer of properties that meet 
the criteria identified in this paragraph.
    (6) In order to carry out tasks associated with monitoring, we, the 
subgrantee, or the State have the right to enter the parcel, with notice 
to the parcel owner, to ensure compliance with land use restrictions. 
Subgrantees may identify the open space nature of the property on local 
tax maps to assist with monitoring. Whether the subgrantee obtains full 
title or a conservation easement on the parcel, the State must work with 
subgrantees to ensure that the parcel owner maintains the property in 
accordance with land use restrictions. Specifically, the State may:
    (i) Monitor and inspect the parcel every two years and certify that 
the owner continues to use the inspected parcel for open space or 
agricultural purposes; and
    (ii) Take measures to bring a non-compliant parcel back into 
compliance within 60 days of notice.
    (7) Only as a last resort, we reserve the right to require the 
subgrantee to

[[Page 521]]

bring the property back into compliance and transfer the title and 
easement to a qualified third party for future maintenance.
    (8) Every 2 years on October 1st, the subgrantee will report to the 
State, certifying that the property continues to be maintained 
consistent with the provisions of the agreement. The State will report 
the certification to us.