FEMA Public Assistance: Leasing Equipment - Eligibility and Documentation

FEMA's Public Assistance program offers reimbursement for equipment leasing costs under specific circumstances. Here's a breakdown of the eligibility criteria and required documentation:

Cost Analysis: Lease vs. Purchase

Before leasing equipment, you, the Applicant, must conduct a cost analysis comparing:

• Total Leasing Costs: The entire cost of leasing the equipment for the project duration.
• Purchase and Maintenance Costs: The combined cost of purchasing the equipment and maintaining it throughout the project's life.

This analysis helps determine if leasing is the most cost-effective option.

Reasonableness and Necessity

The total leasing cost must be reasonable and considered necessary compared to purchasing. FEMA assesses this by evaluating:

• Financial Prudence: Whether your decision to lease was prudent considering the circumstances at the time.
• Cost Comparability: If the leasing cost is comparable to the projected purchase and maintenance costs.

Lease-Purchase Agreements

There are two scenarios for lease-purchase agreements where the Applicant acquires ownership eventually:

• Ownership During Project: If you gain ownership by project completion, FEMA reimburses based on an hourly equipment rate.
• No Ownership During Project: If you don't own the equipment by project completion, FEMA reimburses based on the lease cost.

Required Documentation for Reimbursement

To ensure proper reimbursement for leasing costs, provide FEMA with the following documentation:

• Lease Agreements: Copies of the lease agreements for the equipment.
• Invoices or Receipts: Proof of payments made for the equipment lease.
• Equipment Usage Details:
  • Location(s) where the equipment was used.
  • Number of days the equipment was used.
  • Total hours of operation (if applicable).
• Other Relevant Documentation: Any additional documents supporting the leasing costs and their justification.

By fulfilling these criteria and providing the necessary documentation, you can maximize your chances of receiving reimbursement for eligible equipment leasing costs associated with your Public Assistance project.

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