Sept 2023

An Update on H.R. 3777, The Disaster Assistance Fairness Act By Robert Travis, CIRMS, Long Beach Commons Condominium Association

I n recent memory, many of the residents of New Jersey, Pennsylvania, and Delaware have experienced firsthand the devastating effects caused by Hurricane Sandy in late October 2012 and Hurricane Ida in August 2021. Although there were many other storms that have hit our region over the past few years, these two still stand out when we discuss historic storms that have hit our communities. These two Hurricanes caused not only the loss of life but also substantial property damage through their high winds and flooding. In both cases, a Major Disaster Declaration was granted for the impacted areas of our region, which authorized the Federal Emergency Management Agency (FEMA) to issue funding and other services to the residents of our region. This funding and other services include assistance to individuals and households with recovery expenses not covered by insurance, regardless of whether they live in a community association. In addi tion, this funding and other services can also be used as emergency support to repair damaged facilities and hazard mitigation work need ed within our state and local governments and specific private nonprofit organizations. Unfortunately, due to FEMA’s interpretation of the Robert T. Stafford Disaster Relief and Emergency Relief Act (Stafford Act), community associations are not eligible for the kind of disaster assistance

described above regarding damaged common spaces and areas. Instead, community associations are directed by FEMA to the Small Business Administration (SBA) to apply for loans, up to $2,000,000, for damaged common spaces (areas) not fully covered by insurance or other disaster recoveries. In 2014, after the Hurricane Sandy experience, The U.S. House of Representatives directed FEMA to conduct a study to provide options for making housing cooperatives and com munity associations eligible for federal disaster relief. FEMA concluded its report in 2016 and advised Congress that the

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“This funding and other services include assistance to individuals and households with recovery expenses not covered by insurance...”

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SEPTEMBER 2023