Business Law 101 / FEMA

By Albert L. Kelley, Esq.

Wow. What a couple of weeks we have had. Now comes the cleanup and the realization that the road to recovery is long and unfortunately, complicated.   On a legal side, we will have claims to FEMA, insurance adjusters, SBA, and a host of other groups. So let’s get an understanding of what these groups are and how we can work with them.

FEMA or the Federal Emergency Management Agency was formed in April 1979.  After the 9/11 attacks, it was placed under the umbrella of the newly formed Homeland Security Department.  While the history of FEMA makes for interesting reading, most of it does not have any bearing on local emergencies.  Today the Agency is charged with coordinating the federal government’s response to natural and man-made disasters, on a state, local and individual level.   Their four key areas are preparation, response, recovery and risk reduction.

Preparation: While they are most visible after a disaster, they are also active behind the scenes during times of calm, assisting with things such as building codes, flood plain management and providing equipment to state and local governments in preparation for disaster planning.  They fund emergency management programs in every state and six US Territories.  They provide training to firefighters, emergency managers and elected officials. They also provide exercises for other federal agencies to ensure they are prepared when a disaster occurs.

Response: This is where they are most visible. Here they are tasked with bringing in emergency equipment, getting people out of dangerous situations, providing resources to individuals such as food, water, shelter and medical care, and restoring damaged services and systems.

Recovery:   This is the money portion. FEMA can facilitate loans and grants to states, counties, cities and individuals to rebuild houses, business and infrastructure.  While FEMA makes some direct payments, the majority of funds are funneled through the Small Business Administration in the manner of short term loans.

Risk Reduction: FEMA negotiates with flood insurers to keep the cost of flood insurance down.

FEMA Application Process: Unfortunately for those not computer literate, there is no paper application process for FEMA.  There is a telephone option, but for faster service, the online application provides a response usually in a matter of days.  There is a two step process: first is to register through disasterassistance.gov and second is to set up your account with a user name and PIN. You will need to provide your social security number, the address of your damaged property, your insurance information, and your checking account information (if you want your funds directly deposited into your account).  Generally, within a couple of days FEMA will make a determination as to what assistance you are entitled to.  Short term funds can be paid within a couple of days.

The other major issue is long-term housing during the rebuilding phase. Many of us recall the FEMA trailers that lined the Keys after Hurricane Wilma.  Do not expect to see those again.  FEMA only has 1,700 trailers available to cover Hurricane Harvey, Irma and Maria.  They will only be used as a last resort.  FEMA’s new game plan is to pay for extended stays in hotels and apartments while homes are being rebuilt.  That may prove difficult in the Lower Keys as we already a short o apartments and it could severely reduce the number of hotel rooms available for tourists, especially going into one of the busiest seasons of the year.

Al Kelley is a Florida business law attorney located in Key West and previously taught business law, personnel law and labor law at St. Leo University.  He is also the author of “Basics of Business Law” “Basics of Florida’s Small Claims Court” and “Basics of Florida’s Landlord-Tenant Law” (Absolutely Amazing e-Books). This article is being offered as a public service and is not intended to provide specific legal advice.  If you have any questions about legal issues, you should confer with a licensed Florida attorney.

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