The Stafford Act grants FEMA discretionary authority to fund disaster related projects.Per prior second appeal decisions; FEMA does not obligate funding for projects which were located on USACE property where the Applicant had notice of the flooding risk; and then assumed that risk.According to FEMA Recovery Policy FP 205-081-2; FEMA is only barred from recovering obligated funds under Section 705(c) when all three elements of the Section test are met.FEMA obligated funds to the Grantee but the Grantee never drew down on those funds; thus; the first element of the test was not satisfied and FEMA was not barred from recovering the funds. (Appeal decision issued 5/31/2019)

HeadnotesThe Stafford Act grants FEMA discretionary authority to fund disaster related projects.Per prior second appeal decisions; FEMA does not obligate funding for projects which were located on USACE property where the Applicant had notice of the flooding risk; and then assumed that risk.According to FEMA Recovery Policy FP 205-081-2; FEMA is only barred from recovering obligated funds under Section 705(c) when all three elements of the Section’s test are met.FEMA obligated funds to the Grantee but the Grantee never drew down on those funds; thus; the first element of the test was not satisfied and FEMA was not barred from recovering the funds.Conclusion (Appeal decision issued 5/31/2019)