Pursuant to the Stafford Act 406 and 44 C.F.R. 206.226; FEMA may fund the cost of repairing a facility on the basis of the design of the facility as it existed immediately prior to the disaster. Per 44 C.F.R. 206.203(d)(1); FEMA may also reimburse costs when an applicant makes improvements; but still restores the predisaster function of a damaged facility; Federal funding is capped at the approved estimate of eligible costs.The repair method used by the Applicant went beyond repairing the Facility to its predisaster design. It is an improved project and; as such; was capped at the approved estimate of eligible costs.Pursuant to 44 C.F.R. § 13.30; 206.204(e) and 206.205(b); and the PA Guide; applicants must obtain approval from FEMA prior to incurring costs in excess of the approved amount. Where the SOW has not changed; the RA has discretion in approving such costs.The Applicant submitted the cost overrun at closeout after changing the SOW and completing construction.

PA Guide at 79; 101; 110-11; 139-140 (Jun. 2007).HeadnotesPursuant to the Stafford Act § 406 and 44 C.F.R. § 206.226; FEMA may fund the cost of repairing a facility on the basis of the design of the facility as it existed immediately prior to the disaster. Per 44 C.F.R. § 206.203(d)(1); FEMA may also reimburse costs when an applicant makes improvements; but still restores the predisaster function of a damaged facility; Federal funding is capped at the approved estimate of eligible costs.The repair method used by the Applicant went beyond repairing the Facility to its predisaster design. It is an improved project and; as such; was capped at the approved estimate of eligible costs.Pursuant to 44 C.F.R. §§ 13.30; 206.204(e) and 206.205(b); and the PA Guide; applicants must obtain approval from FEMA prior to incurring costs in excess of the approved amount. Where the SOW has not changed; the RA has discretion in approving such costs.The Applicant submitted the cost overrun at closeout after changing the SOW and completing construction.