The content of this factsheet was shared with permission and can be found in its original format on Disaster Aid: Resources for Other States, Sea Grant Louisiana.

On January 22, 2024, the Federal Emergency Management Agency (FEMA) published a new rule changing the Individual Assistance Program. These changes aim to make the Individual Assistance program more equitable by expanding eligibility for some types of assistance, removing procedural barriers to entry, and simplifying certain processes overall.

In the past, individuals have been required to apply for a Small Business Administration (SBA) loan before being considered for other FEMA aid. Under the new rule, this is no longer required. Tis means that individuals can still apply for an SBA loan but will no longer be directed to fll out an SBA loan application before being considered for other types of assistance from FEMA.

Under the former regulations, insured applicants who received a net insurance settlement of $42,500 (the current cap for FEMA IHP assistance) or more were ineligible to receive any assistance from FEMA, regardless of whether the insurance settlement covered the full cost of repairs or if there were losses not covered by insurance. Under the new regulations, applicants may now receive up to $42,500 in assistance for unmet needs, regardless of their net insurance settlement.

EXAMPLE: X sustains $75,000 in damages and receives an insurance settlement of $45,000. Tis means that X has an unmet need of $30,000. Under the former regulations, X would be ineligible for assistance because the insurance settlement exceeded $42,500. Under the new regulations, X can receive assistance for unmet needs up to the $45,200 cap, regardless of the insurance settlement amount. Tis means that X may be eligible for $30,000 in assistance.

Under the new rule, FEMA will now provide assistance to self-employed applicants for the replacement of essential tools. Essential tools might include specialized/protective clothing, computers, and other equipment required for self-employment. Self-employed applicants will be required to provide a written statement with an itemized list of essential tools required for self-employment and verify their need for replacement. Tax return documentation must be used to establish self-employment (such as Form 1040, 1040-SR, Schedule C, etc.).

The terms safe, sanitary, and functional have been amended to expand eligibility for home repair assistance. It now may include threats not caused by the disaster.

• “Safe” has been revised to mean secure from hazards or threats to occupants. FEMA has removed “disaster-related” from the defnition.
• “Sanitary” has been revised to mean free of health hazards. Like above, FEMA has removed “disaster-related” from the defnition.
• “Functional” has been revised to “functioning.” Te defnition itself remains the same: an item or home capable of being used for its intended purpose.

Under the old rule, if someone’s residence had existing health hazards prior to a major disaster, then the applicant would not be eligible for assistance to repair those hazards. Tis is no longer the case. Te removal of the term “disaster-related” from the defnitions of safe and sanitary will now permit FEMA to help repair hazards that predated the disaster.

EXAMPLE: If a person’s house had a leak in the roof prior to a disaster, the leak in the roof is eligible for repair if the house was damaged in some way by the disaster and repair of the roof is necessary to make the home safe and sanitary.

FEMA funding may now be used to install accessibility-related items, such as exterior ramps and grab bars, even if the home did not have those items installed before the disaster. To qualify, the applicant must be an individual with a disability that existed before the disaster and whose primary residence was damaged by the disaster or an individual with a disability that was caused by the disaster and whose primary residence was damaged by the disaster.

Takeaway: FEMA disaster assistance will now pay for wheelchair ramps and similar items at the primary residence if the individual has a qualifying disability and the home was damaged by the storm.

Displacement Assistance is a new program that ofers funding to help people fnd short-term living arrangements afer a major disaster. Tis money is meant to help people who cannot aford to pay out-of-pocket for new housing afer their homes were damaged by a disaster. To get this assistance, a person must be unable to live in their home. Tis type of assistance is only meant to give people money to pay for short-term living arrangements while they make repairs to their homes or look for longer-term living arrangements. Tis money could also be used to cover costs associated with staying with family and friends until a rental option can be secured.

FEMA is reducing the documentation requirements for Continued Temporary Housing Assistance (CTHA) by splitting the recertifcation process into several timeframes. Tis allows people to gradually submit documentation throughout the recovery process. For example, applicants will only be required to identify their plans for permanent housing within the frst two payments of CTHA. Following the third and fourth payments of CTHA, applicants will be asked to submit documentation showing their progress toward achieving permanent housing.

Documentation showing household income and household costs will not be required for subsequent requests for CTHA if the household’s income or housing costs have remained the same.

FEMA has established a new program that replaced the Critical Needs Assistance program on March 22, 2024. Unlike Critical Needs Assistance, Serious Needs Assistance is available across a wider span of disasters. Tis new program is designed to provide more immediate fnancial assistance for applicants with serious needs or expenses afer a disaster. Serious needs might include food, water, fuel, infant formula, and other immediate expenses. Serious Needs Assistance may also address needs relating to sheltering and evacuation. To qualify for this program, applicants must be displaced from their homes because of the disaster or must report a need to shelter elsewhere if they are currently sheltering in their homes. Applicants must also express that they have serious needs when registering for assistance and request fnancial assistance to help meet those needs. Households that qualify will receive a payment of $750 to help cover those needs.

To streamline the appeal process, FEMA will no longer require applicants to submit a signed appeal letter explaining the reason(s) for the appeal when justifcation has already been provided through supporting documents. Additionally, FEMA has created an optional Appeal Request Form that applicants can use to assist with their appeal. FEMA will accept this form as sufcient written explanation.

Te optional Appeal Request Form can be accessed at www.DisasterAssistance.gov.

To simplify the late application process, FEMA will no longer require late registrants to provide documentation that justifes their late application. Going forward, late registrants will only be asked to explain the cause of the delay.

When the registration period for a major disaster has closed, FEMA may now reopen the registration period for an additional 60 days when the President’s major disaster declaration has been amended to include new counties. Te extended registration period will apply only to the newly included counties.

Visit the Louisiana Sea Grant Federal Disaster Aid project website

This research was conducted by Louisiana Sea Grant Law & Policy Program with support from the Coastal Response Research Center and the NOAA Disaster Response Center.

All information current as of May 2024. Information reflects new rule issued by FEMA on January 22, 2024.

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