What is the
definition of Cost sharing or matching?
or matching means the value of the third party
contributions and portion of the costs of a federally
assisted project or program not borne by the Federal
Government. The match may be either cash or in-kind
measures approved under the State’s grant will subject
the cost sharing provisions established in the FEMA-State
Agreement. FEMA may contribute up to 75 percent of
total project costs for projects approved under the
Hazard Mitigation Grant Program (HMGP). (44 CFR 206.432
Non-Federal Cost Share?
source must contribute the remaining percentage of the
total eligible project costs. While the non-Federal
match for the HMGP must be at least 25 percent, it is
not necessary for the non-Federal match to be 25 percent
on each individual project. It is only necessary that
the cost-share ratio for all combined HMGP projects for
the disaster be at least 25 percent.
funds lose their Federal Identity?
HMGP funds do
not lose their Federal identity and may not be used as
match for another federally funded project, including
U.S. Army Corp of Engineer projects.
services which benefit a federally assisted project or
program and which are contributed by non-Federal third
parties without charge to grantee, or a cost-type
contractor under the grant agreement.
third party in-kind contributions include:
attorney affected by the flood donates her time to
review the real property acquisition contract
documents and conduct the settlements for the
sub-grantee. The normal cost of the attorney’s
professional time donated to the project (based on
her normal per hour or per settlement rate) is
allowable as local in-kind cost-share.
homeowner accepts 75 percent of the value of his
home in cash and donates the rest of the appraised
value to the project. The remaining 25 percent
donated value is allowable as a third party in-kind
contractors donate their services to complete
seismic retrofit work to residents’ homes. The
normal cost of their time is allowable as a third
party in-kind contribution.
hardware store donates construction materials for a
hurricane shuttering project. The retail value of
those materials is an allowable third party in-kind
funds be used as match?
may use their own funds (including loans received from
SBA, FHA, and Increased Cost of Compliance insurance
claim payments) to help a local community to match HMGP
of Compliance (ICC) coverage benefits under the National
Flood Insurance Program (NFIP) may be used to match
elevation and/or acquisition and relocate projects.
Increased Cost of Compliance Coverage provides for the
payment of a claim to help pay for the cost to comply
with a community floodplain management ordinance after a
direct physical loss by flood. When a structure is
covered by a Standard Flood Insurance Policy sustains a
flood loss and the State or community declares the
building to be substantially damaged or repetitively
damaged, ICC will help pay for the cost to elevate,
flood proof (non-residential buildings only) demolish,
or relocate the building. The maximum ICC is $30,000.
All NFIP Regular Program policies with building coverage
issued or renewed on or after June 1, 1997 will include