We determined that FEMA has not identified and recovered Federal funds that New York City spent, more than three years ago, on repairs to commercial residential properties. These repairs included short-term measures such as temporary boilers and power generators. FEMA recognizes that commercial landlords may have received an incidental benefit from the Federal assistance provided to New York City and used it for repairs to multifamily dwellings to ensure tenants could shelter in their homes. However, it is the responsibility of New York State Division of Homeland Security and Emergency Services (the grantee) to ensure that the money that FEMA provides is spent in accordance with Federal laws and regulations. Under FEMA rules, for-profit organizations are ineligible for Public Assistance grant funds. We recommended that FEMA review and improve, as necessary, policies and procedures that protect government resources used to support disaster response and recovery activities. We made three recommendations and FEMA concurred with all of them.
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