After Storms, Federal Money Can Help With Repairs

A series of pounding storms has disrupted life in Southern California this winter. Now comes the wrangling over who will pay for the cleanup. The federal government picks up a large portion of the tab if the president declares an event a federal disaster.

Question: How does a presidential disaster declaration come about?

Answer: First, a city or county must declare a local emergency, certifying that an event such as a flood, fire or epidemic has created conditions that imperil people and property, and that handling the problem is beyond the resources of local government.

The governor can then declare a state of emergency, which triggers a request to the Federal Emergency Management Agency for a presidential disaster declaration. The president’s signature triggers federal grants and loans.

Q: What is the status of California’s disaster aid request?

A: On Feb. 4, President Bush signed a disaster declaration covering $314.3 million in estimated damage from the storms that occurred in late December and early January.

A state of emergency had been proclaimed by the Los Angeles County Board of Supervisors on Jan. 11.

But the punishing storms of February aren’t covered in that presidential declaration, so last week, Schwarzenegger requested that an additional $85 million in damage caused by those storms also be covered in a federal disaster declaration. A FEMA official said the president’s approval could come within two weeks.

Q: Is there a threshold or list of standards that must be met to qualify for federal disaster aid?

A: No. There is no set dollar figure for damage. But the disruption has to overwhelm local resources and affect a wide area.

When a calamitous event occurs, the governor’s Office of Emergency Services and FEMA dispatch field personnel to evaluate whether disaster status is warranted.

Q: What do they consider?

A: The agencies take into account the number of deaths and injuries, the degree of destruction in relation to the county’s size and economic conditions, the amount of unexpected local expenses and whether the emergency is ongoing, such as the continued threat of mudslides.

Q: Is federal approval of the governor’s request for a disaster declaration automatic?

A: No. The state’s Office of Emergency Services must make a detailed case to FEMA. Although the president routinely accepts FEMA’s recommendation, there is no guarantee what the agency will recommend.

Schwarzenegger requested direct grants to help individual homeowners, renters and businesses throughout Southern California recover from the Dec. 27-Jan. 11 storms. FEMA determined only residents of Los Angeles and Ventura counties were eligible.

However, the governor’s office pressed FEMA to reconsider. On March 16, the president’s Feb. 4 disaster order was amended to include residents of Orange, Riverside, San Bernardino, San Diego, Santa Barbara and Kern counties.

Q: How is the money distributed for damage to public structures?

A: In federal disasters, FEMA reimburses local governments 75% of the cost of restoring such damaged infrastructure as bridges, roads, airports, schools, utilities and civic buildings. An additional 18.75% is picked up by the state, with the local entity required to absorb the remaining 6.25%. Sandbagging, debris removal and overtime pay for emergency workers are also covered.

Q: How much federal aid will Southern California public agencies potentially get as a result of the storms?

A: Using figures provided by cities and counties, Schwarzenegger’s office put the damage tally from all of the storms at $399.3 million. When the cost of federal assistance from the Army Corps of Engineers, the Federal Highway Administration and the Natural Resources Conservation Service is added in, the grand total comes to just over $670 million.

Public agencies were hit hardest, claiming $297 million worth of work to repair roads and facilities. About 65% of the money was used to make emergency repairs, remove debris and fix roads, officials with the Office of Emergency Services said.

Private property owners and businesses, meanwhile, requested $102.3 million in grants and loans to make minor repairs. More than half of the total, $62.8 million, went for Small Business Administration loans requested by individual homeowners, while businesses took out $5.8 million in loans, officials said.

FEMA pays only to return facilities to predisaster conditions. If a road was badly rutted before the rains, the agency won’t pick up the full tab to rebuild it like new.

Overall, Los Angeles County was hardest hit, with claims of $268.2 million in damage to public and private property, followed by Ventura County at $107.5 million, and San Bernardino County at $79 million.

For the eight counties covered by the declarations, the Office of Emergency Services found that more than 1,800 residences and at least 62 businesses suffered winter storm damage.

Q: How does FEMA reimburse local governments?

A: FEMA parcels out the money in stages as work progresses. Approval of money for repairs to save lives and protect property receives top priority.

For example, on March 15, FEMA approved $6.4 million for cleaning out storm-clogged debris basins in San Bernardino County. Under the 75-25 cost-sharing formula, $4.8 million will come from FEMA, with state and local governments putting up the other $1.6 million.

Q: What does the federal government do for private citizens with damage?

A: It offers grants and/or loans to individuals who had losses not covered by insurance.

FEMA makes grants for repairs to make a dwelling safe, secure and sanitary. They cannot be used for any work beyond making the home habitable.

For example, if a mudslide smashes a dwelling’s windows, throws the doors off their hinges, breaks water pipes and ruins carpeting, grant money would be allowed for the first three items but not the carpet, which isn’t essential to habitability.

FEMA also pays for disaster-related temporary housing, counseling and unemployment compensation.

The household cap for FEMA repair grants is $5,000 and $26,500 for all FEMA aid combined. In practice, many people get far less. The national average for household FEMA aid is $2,500.

Small Business Administration disaster loans pick up where FEMA aid stops. They can be used to restore residences and businesses to previous conditions. Borrowers can get up to $200,000 to fix a primary residence, $40,000 to replace personal possessions and $1.5 million to repair businesses.

As of Thursday, FEMA had received 17,962 requests for assistance from individuals for Southern California storm damage, and the agency had dispensed $10 million.

Q: How do homeowners, renters and business owners with storm-related damage obtain disaster aid?

A: First, call your insurance company. If some of the damage isn’t covered, notify your city’s emergency services office, which will then alert state and federal relief coordinators.

Document all damage by taking photographs, and save receipts if you begin repairs.

To register for FEMA aid, call (800) 621-FEMA, or go to www.fema.gov.

“People affected by a disaster don’t need to come someplace and stand in line,” said David Fukutomi, FEMA’s coordinator for the Southern California storms. “They can do everything by phone or online.”

Disaster information is also available at www.oes.ca.gov.

Times staff writer Catherine Saillant contributed to this report.