In the wake of a hurricane, construction companies are often eager to seek opportunities with the Federal Emergency Management Agency (FEMA). FEMA is responsible for helping communities recover in the aftermath of a hurricane by installing temporary blue tarps on roofs to keep families dry, funding restoration efforts, and more. You might be interested in seeking a contract with FEMA to find work rebuilding homes or commercial properties, but your efforts would be futile. FEMA does not contract construction companies directly to rebuild these types of structures, they only contract for federal projects.
However, FEMA oversight will affect your private contracts during the time after a natural disaster. If you want to ensure your contracts are airtight, consult a Greensboro construction lawyer from Cotney Construction Law. In this two-part series, our Greensboro construction law firm will tell you everything you need to know about FEMA contracting after a hurricane.
The Role of FEMA
In the aftermath of a hurricane, FEMA provides monetary relief to communities through grants and loans. Homeowners and businesses are responsible for acquiring these funds, seeking out a contractor, and compensating them with the appropriated funds. Under no circumstances does FEMA draft or support contracts for homeowners and commercial businesses that need the assistance of building firms.
FEMA’s Individuals and Households Program (IHP) provides up to $33,000 in disaster assistance to homeowners and business owners for damages including those insurance doesn’t cover. This money can be used for any necessary home repairs after a natural disaster. Homeowners and business owners can also apply for Small Business Administration loans if they need additional funding for repairs.
Although these grants are extremely beneficial to those in need, they are not intended to fund a complete restoration. FEMA grants and loans are intended to reaffirm safe and sanitary conditions inside a home or business. And finally, any projects funded by FEMA money, whether through a direct contract or a grant, is dictated by FEMA rules. As a contractor, failing to observe this fact can cost you dearly.
An Introduction to FEMA Grants
As we mentioned in the last section, the intent of FEMA grants is to make a home livable again. When you enter a contract with a homeowner who is using a FEMA grant to pay for their home repairs, it’s imperative that you understand what type of repairs are covered in the homeowner’s FEMA contract. They may only be willing to pay for the repairs that FEMA has agreed to reimburse them for, which could then require the lien services of a skilled Greensboro construction attorney.
In part two, we will continue to explore all of the important things you should know about FEMA contracting after a hurricane.
Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.