Tidal Basin Homeowner Reimbursement

Homeowner Reimbursement (cont’d.) Considerations for effective program design When establishing a CDBG-DR reimbursement program, grantees should consider the following:

• Property / Structure LMI • Property is 1–4 Units • Not an LLC / Corporation • Not In Lis Pendens / Foreclosure Reimbursable costs Reimbursable costs must be permanent construction work completed by the applicant. Acceptable expenses would generally include costs incurred to pay for: • Architects and/or engineers • Soil boring/soil testing • Building permits • Surveys • Purchase and placement of a modular home • Demolition of the damaged home • Demolition debris disposal/removal • Environmental remediation or hazardous materials disposal • Site preparation including, but not limited to, site grading, fill, and leveling • Rebuild activities such as payments to general contractors, subcontractors, material suppliers, labor, etc. which were incurred by the applicant Additional reimbursable costs to consider: • Temporary rental assistance • Move out / move in costs • Storage of furniture during construction

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• Federal Cross-Cutting requirements, including Environmental Review, Davis Bacon, Civil Rights, Lead-Based Paint, and URA, must be contemplated. Exemptions or alternative requirements may exist for pre-award expenses • Inclusion of reimbursement activities into CDBG-DR Action Plan • Establishing policies for handling self-performed repairs and permitting compliance • Reimbursement Calculation method (see example below) • Utilizing Xactimate in lieu of receipts for expediency • Designing an effective and organized appeals process • Duplication of Benefits (Insurance, FEMA, SBA, Charitable Grants, etc.) • Compliance with Section 504 accessibility requirements • Other documentation requirements Eligible applicants Typically, applicants for a reimbursement program will meet the following eligibility requirements: • Owner Occupied Property • Owner meets program requirements for low- to moderate-income (LMI) household

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Example reimbursement calculation policy The program will reimburse the lesser of: • The actual cost to reconstruct as demonstrated by documentation provided by the applicant, or • The cost the program would have incurred had it rebuilt the applicant’s property to the lesser of the home’s pre-disaster square footage or the square footage which was actually rebuilt. The reimbursement amount is determined after the amount of disaster recovery funding intended for home reconstruction and not used for other eligible purposes is deducted from the amount spent on reconstruction reimbursable expenses. The program will reimburse 60% of the final amount.