Stafford Act section 705(c) bars FEMA from deobligating previously awarded funding if: 1) the payment was authorized by an approved agreement specifying the costs; 2) the costs were reasonable; and 3) the purpose of the grant was accomplished. FEMA typically determines if the applicant accomplished the grant’s purpose during closeout. Under FEMA Recovery Policy FP-205-081-2, section 705(c)’s bar against recovery applies even if FEMA later determines it made an error in an eligibility determination. FEMA determined at closeout that there were no EHP concerns with the completed bridge and treated it as an improved project. FEMA later determined that there were EHP concerns with the completed bridge and deobligated all funding. Section 705(c) bars recovery in this case even though FEMA determined it made an error at closeout.

Stafford Act section 705(c) bars FEMA from recovering funding even if it made an incorrect eligibility determination at closeout. Therefore, FEMA is granting the second appeal and directs Region I to reinstate the capped funding amount of $193,071.00 and the $3,463.88 granted on a previous second appeal.

Stafford Act § 705(c). FEMA Recovery Policy FP-205-081-2, Stafford Act Section 705(c), Disaster Grant Closeout Procedures, at 4-6.