Lawyers Alliance for New York

Transcription

1 Lawyers Alliance for New York Rebuilding After Hurricane Sandy: Government Aid available to Nonprofits Linda S. Manley, Legal Director (212) ext. 239 Resource Call Hotline: (212) ext. 224 Ximena Rua-Merkin, Community Resource Exchange (212) Executive Director Hotline at (917)

2 Lawyers Alliance for New York In the aftermath of Hurricane Sandy New York s nonprofit sector is mobilizing to assist victims. Launched Disaster Relief Initiative in the aftermath of September 11, Lawyers Alliance continues to represent and provide legal information to New York nonprofits assisting disaster victims. We have helped nonprofits with disaster relief legal matters related to fundraising and grant-making, expansion and downsizing, real estate contingencies, and compliance with tax-exempt organizations law. Lawyers Alliance is ready to support organizations as they rebuild their operations and their neighborhoods. 2

3 Community Resource Exchange For over 30 years, Community Resource Exchange (CRE) has worked to create a more just, equitable and livable city for ALL New Yorkers. We provide strategic advice and technical services every year to more than 300 community-based nonprofit organizations confronting social issues such as poverty and HIV/AIDS in low and moderate income neighborhoods. As one of the most established nonprofit management consulting providers of its kind, CRE provides its clients with information, guidance, resources for nonprofits, skill building and leadership training for community based organizations to make New York City stronger - one community group at a time. 3

4 Overview Today will focus on practical considerations related to: Obtaining financial assistance through government aid programs. The different types of aid available Eligibility requirements for different types of aid. How to apply for aid. 4

5 Types of Aid Nonprofit Organizations are eligible for 3 types of government aid: 1. FEMA Public Assistance Grants 2. Small Business Administration Loans 3. New York City Emergency Business Loans 5

6 FEMA Public Assistance Grants: Overview Federal Emergency Management Agency (FEMA) provides supplemental reimbursements in the form of Public Assistance grants to certain eligible private, nonprofit organizations for: Debris Removal and Emergency Protective Measures including: efforts taken to save lives, protect public health and safety, and protect. Permanent work such as repair or replacement of buildings and/or their contents, heavy equipment, vehicles or recreational facilities such as parks, playgrounds or beaches. 6

7 Public Assistance Process 1. Official Disaster Declaration 2. FEMA hosts Applicant s Briefings 3. Applicants submit the Request for Public Assistance to officially apply for funding 4. Each Applicant is assigned to a Public Assistance Coordinator (PAC) 5. The PAC holds a Kickoff Meeting with the applicant to begin the process of documenting disaster recovery projects 6. The PAC assists the applicant in completing Project Worksheets for all projects 7. Project Worksheets are approved after validation 8. Funding is made available to the State 9. The State then disburses the funding to the applicant according to State regulations. 7

8 Important Deadlines Request for Public Assistance 30 days after declaration for submission DEC 2, 2012 Project Worksheets Identified Within 60 days of Kickoff Meeting 8

9 APPLICANT Eligibility Criteria FACILITY WORK COST 9

10 Applicant Organization must be eligible private, nonprofit organization. Will need: Exempt under sections 501(c) (d) or (e) of the Internal Revenue Evidence from NYS that organization is a non-revenue producing business. Organizational charter or by-laws. Material describing the organization and its services, purposes and functions. Description of membership policies or fee structures. Federal Tax Identification Number 10

11 Eligible Nonprofits Critical Fire/Emergency Rescue Hospital and Emergency Medical Care Utility- Power, Water, Sewer, Wastewater Treatment Plant, Communications Educational Institutions (primary, secondary, and higher education) Essential Services Senior Citizen Day Centers Daycare Centers Homeless Shelters Shelter workshops Libraries Rehabilitation and long term care facilities Community Centers Museums, zoos 11

12 Avenues of Assistance 12

13 Facility Damage as a result of the event located within the area declared a disaster Legal responsibility of eligible applicant In active use at the time of the disaster Not under authority of another federal agency (ex. US Army Corp. of Engineer Water Treatment Facilities) 13

14 Emergency Work Category A: Debris Removal Work Clearance, removal, storage, disposal of trees, debris, building wreckage, sand mud, silt and gravel; vehicles and other disaster related materials deposited on public (nonprofit) property. Category B: Emergency Protective Measures Measures taken before, during and after a disaster to save lives, protect public health and safety, and protect improved public and private property. Both Critical and Essential Organizations are eligible for 100% reimbursement for emergency work. 14

15 Work Continued Permanent Work: Category C: Road and Bridge Systems Category D: Water Control Facilities Category E: Public Buildings/Equipment Category F: Public Utilities Category G: Parks, Recreational Facilities and other Only Critical Organizations may apply directly to FEMA for Permanent work. Essential Service Organizations must apply to SBA for a loan for permanent work. If they are denied or if SBA will not cover full expense may apply to FEMA. 15

16 Costs Must be reasonable and necessary to complete the work. The cost must be reduced by insurance proceeds. Cash or resource donations received must reduce the eligible cost, but the applicant may decide whether to reduce the federal or the non-federal share. Complies with federal, state and local laws & regulations Types of eligible expenses: equipment, labor, debris removal, transportation, materials In most cases FEMA provides 75% of the funding 16

17 FEMA PA Grants Amounts $67,500 is FEMA s FY 13 threshold amount Small - Paid upon Project Worksheet approval Larger Paid based on percentage of work completed SMALL $67,500 LARGE 17

18 Documentation Requirements Document and Maintain copies FEMA has provided report forms for labor, equipment, materials and contracts. These forms are available in the FEMA Packet Fill out the forms and keep all invoices, receipts, work contracts, and any other substantiating information. Insurance FEMA Public Assistance grants are only available for uninsured loss. FEMA requires applicants to obtain and maintain insurance policies. Provide insurance policies, deductible information, proof of loss statement received from insurance carrier to FEMA. Reimbursable expenses for insured damage is deductible plus cost over and above insurance policy limits. 18

19 FEMA Contact Office of Emergency Management State of New York 1220 Washington Avenue Building 22, Suite 101 Albany, New York (518) **Fax: (518) ** (submit Chief of Public Assistance: Christopher Holmes Deputy Chief of Public Assistance: Heidi Dudek Disaster Assistance Officer: Linda Moreno Disaster Assistance Number: (518)

20 Small Business Administration Loans: Overview The Small Business Administration is offering low interest disaster loans to eligible Nonprofit Organizations. Eligible organizations may receive up to $2 million in loan proceeds at an interest rate of 4% to 8%. There are 2 types of loans available: Business Physical Disaster Loans Economic Injury Disaster Loans 20

21 SBA Loans: Types and Eligibility Business Physical Disaster Loans Businesses located within declared disaster area. Available for cost of replacing property or restoring property to predisaster condition. May be used to repair real property, machinery, equipment, fixtures, inventory and leasehold improvements. Economic Injury Disaster Loans Businesses that have suffered substantial economic injury. Economic Injury Loans are intended to allow the organization to maintain reasonable working capital during the period after the disaster. Only available to organizations unable to obtain credit from other sources. 21

22 SBA Loans: Types and Eligibility Continued Interest Rates Business Disaster Loans: 4% if the organization is unable to obtain credit from other sources. 8% if the organization has other credit sources available. Economic Injury Disaster Loans: Interest rate will not exceed a 4% rate. Repayment Period The repayment period for both types of loans is 30 years. FEMA Prerequisite A nonprofit organization that is categorized as an Essential Services organization and is seeking a grant for permanent work must first apply for a business disaster loan through SBA. Upon denial of the loan, the organization may be eligible for a FEMA Public Assistance grant. 22

23 SBA Loans: Application Process Submit a paper application by mail to: U.S. Small Business Administration Processing and Disbursement Center Kingsport Rd. Ft. Worth, TX Call for questions. The application for both loans can be found at: Submit an electronic submission on the SBA website. 23

24 New York City Business Emergency Loans: Overview The City of New York and Goldman Sachs have made emergency loans available to eligible nonprofit organizations. Administered by the New York City Business Solutions and New York Business Development Corporation. Each emergency loan will be the sum of costs for replacement and/or repairs to facilities or equipment, and/or the working capital needed to restart or continue business operations. If eligible, a nonprofit organization may obtain up to $25,000 with a 1% interest rate. The loan is interest free, with no payments required for the first 6 months. 24

25 New York City Business Emergency Loans: Eligibility To be eligible, nonprofits must have: Fewer than 100 employees Are located within New York City Filed 2011 tax returns, or form 990 Direct damage through flooding or power outages as a result of the disaster. 25

26 New York City Business Emergency Loans: Application Process Fill out Application form available at: Loan proceeds are available 5 to 7 days after submission of a complete application. 26

27 New York City Business Emergency Loans: Contacts For Questions, contact your local New York City Business Solutions Center: Bronx Center 400 East Fordham Rd., 7th Fl Bronx, NY Phone: Brooklyn Center 9 Bond St., 5th Fl Brooklyn, NY Phone: Lower Manhattan Center 79 John St. New York, NY Phone: Queens Center Jamaica Ave., 2nd Fl Jamaica, NY Phone: Staten Island Center 120 Stuyvesant Pl., 3rd Fl Staten Island, NY Phone: Upper Manhattan Center 215 West 125th St., 6th Fl New York, NY Phone: Washington Heights Center 560 W 181st S., 2nd Fl New York, NY Phone:

28 Resources for Nonprofits Grant Opportunities Brooklyn Community Foundation's Brooklyn Recovery Fund Citizens Committee for New York City Hurricane Relief Grants New York Women's Foundation Hurricane Sandy Response and Recovery Fund North Star Fund's Grassroots Hurricane Relief Fund Korean American Community Foundation Hurricane Sandy Relief Fund UJA-Federation Sandy Relief Fund United Way of New York City Hurricane Sandy Recovery Grants

29 Lawyers Alliance for New York Rebuilding After Hurricane Sandy: Government Aid available to Nonprofits Linda S. Manley, Legal Director (212) ext. 239 Resource Call Hotline: (212) ext. 224 Ximena Rua-Merkin, Community Resource Exchange (212) Executive Director Hotline at (917)