09/13/2024 | Press release | Distributed by Public on 09/13/2024 17:26
The Safeguarding Tomorrow through Ongoing Risk Mitigation Revolving Loan Fund (Safeguarding Tomorrow RLF) program provides capitalization grants to entities to establish a revolving loan fund. This document provides details about developing a Project Proposal List, allowable uses for funding, and loan recipient requirements.
An entity eligible for grant funding includes any state, the District of Columbia, American Somoa, Commonwealth of the Northern Mariana Islands, Guam, Puerto Rico and the U.S. Virgin Islands as well as federally recognized Tribal Nations having received a direct major disaster declaration under the Robert T. Stafford Disaster Relief and Emergency Assistance Act.
Each applying entity must submit a grant application package inclusive of a Standard Application for Federal Assistance (SF-424), program-specific capitalization grant application form, Intended Use Plan, and Project Proposal List. More information about entity eligibility and program requirements is available on the Safeguarding Tomorrow RLF program webpage.
An entity will determine its planned uses for Safeguarding Tomorrow RLF funding based on its unique mitigation needs and priorities and submit this list with its grant application package. The entity will work with its local governments to solicit and select project proposals and will determine which projects and activities will form the list of projects from which the entity will be able to award loans. This list will be submitted to FEMA with relevant information as a Project Proposal List. An entity should have one Project Proposal List for their program, which should cover planned uses of funding from the current grant application cycle, any open grants, and any revolved or additional funds in the revolving loan fund.
FEMA will review these lists for completeness and alignment with program priorities but will not be approving or denying individual projects. Additional requirements can be found in the program's Notice of Funding Opportunity.
After receiving a capitalization award, the entity will choose which projects to award loans for from its fund based on available funding and entity priorities. FEMA has developed a template Project Proposal List which is available on the Safeguarding Tomorrow RLF program webpage. . Although the use of this template is not required, Project Proposal Lists should include the following information:
An updated list should be submitted to FEMA on an annual basis with the entity's Intended Use Plan to ensure continued compliance.
FEMA will review the list for completeness, compliance and alignment with program priorities.
To meet the statutory public notice requirement, the entity must issue a public notice soliciting proposals from local governments for hazard mitigation projects and activities no less than six weeks prior to the submission of an application. Upon review of the submitted project proposals, the entity will determine which projects and activities it will include in its Project Proposal List.
The entity may use the public notice process that best reaches its local communities; however, they must be able to provide documentation to FEMA of having met this public notice requirement. Examples of notification could include a screenshot of an official entity agency social media post, a copy of or link to a press release, or a link to a webpage.
An entity can utilize their revolving loan fund to provide loans to local governments for projects and activities that mitigate the impacts of drought, intense heat, severe storms, wildfires, floods, earthquakes, and other natural hazards. The loans from the revolving loan funds are intended to reach local governments most in need of financing assistance, including low-income geographic areas and underserved communities.
Eligible project types under this program include activities that mitigate the impact of natural hazards, zoning and land use planning changes, and building code adoption and enforcement. FEMA will not require applicants to submit a benefit-cost analysis (BCA) for projects. Loans may also be used by local governments to satisfy a local government's non-federal cost-share requirement for other FEMA Hazard Mitigation Assistance grant programs.
To promote an entity-led program, FEMA will not limit or restrict project types beyond the limitations noted in the statute. These statutory project limitations direct that an entity:
The Environmental Planning and Historic Preservation (EHP) review of projects occurs after the award of the capitalization grant, but before the loan can be awarded. An entity will be asked to indicate in its Intended Use Plan their plan for implementing these compliance procedures for projects that require review. The entity may enter into a loan agreement with the local government for projects that require an EHP review before submitting an EHP Checklist and other information to FEMA. The EHP review process must be completed prior to the release of loan funds.
Not all project types require the submission of an EHP Checklist to FEMA for the review. The following project types do not require a checklist:
FEMA will also not require an EHP Checklist for loans which will be used as non-federal cost match for another Hazard Mitigation Assistance grant application. In this situation, FEMA will complete the EHP review following the procedures of the applicable Hazard Mitigation Assistance grant program.
FEMA will publish additional guidance on which projects will require EHP review, the process for review, and a checklist to assist with project compliance reviews on the Safeguarding Tomorrow RLF program web page on FEMA.gov.
The Safeguarding Tomorrow RLF program generally requires eligible entities receiving a capitalization grant to provide loans to local governments. For eligible tribal and territorial entities, this may mean providing a loan to any subcomponent within their respective governmental structures or to an authorized tribal organization.
The statute specifies several requirements for loan recipients which the entity will be responsible for ensuring are met:
Entities should incorporate any additional entity-specific requirements for their entity loan fund into the appropriate section of their Intended Use Plan.
Any Tribal Nation that does not satisfy the definition of an eligible entity and is ineligible to receive a capitalization grant but is located within a participating entity (e.g., any state or federally recognized tribe of the United States) may still receive funding in the form of a loan from the participating entity's revolving loan fund. To receive a loan, the tribe's project must be included in a participating entity's Project Proposal List. Applying entities are encouraged to coordinate with tribes during the public notice and project solicitation phase of the grant application process.
Pursuant to Section 205(m)(6) of the Stafford Act, a "low-income geographic area" is an area that meets one of the two following criteria: (1) "the area has a per capita income of 80% or less of the national average"; or (2) "the area has an unemployment rate that is, for the most recent 24-month period for which data are available, at least 1% greater than the national average unemployment rate."
The entity's Project Proposal List will be reviewed for how it demonstrates its entity loan fund will support local governments most in need of financing assistance, including low-income geographic areas and underserved communities, and promotes equity. FEMA will also monitor the percentage of loan funds distributed by the entity in low-income geographic areas and/or underserved communities. A goal of the Safeguarding Tomorrow RLF program is that 40% of the overall benefits generated by an entity loan funds flow to underserved communities.
The entity is expected to communicate the funding opportunity with local governments to identify local hazard mitigation projects and activities and incorporate them into their Project Proposal List. Entities will determine their planned uses for this funding based on their unique mitigation needs and priorities; FEMA will not be selecting projects or awarding loans.
Local governments or government subcomponents and authorized organizations for non-state entities interested in receiving a loan should coordinate with their state or tribal emergency management agency to determine if they will be applying for capitalization grant funding. If the state or tribe is applying, local governments should submit their proposed projects during the public notice and project solicitation phase of the capitalization grant application process.
Additional information and resources are available on the Safeguarding Tomorrow RLF web page. FEMA will update program resources and materials as needed.
Comments and questions may be sent by email to [email protected].