Her
mit’s Peak/Calf Canyon
Claims Program and Policy
Guide
Version 1.1, Effective May 23, 2024
(FP-104-009-24-001)
Hermit’s Peak/Calf Canyon Claims Program and Policy Guide (Draft 1.0)
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TABLE OF CONTENTS
1. General ....................................................................................................................................... 7
1.1 Historical Context ................................................................................................................. 7
1.2 The Claims Office Way and FEMA Core Values .................................................................. 7
1.3 Authority ............................................................................................................................... 8
1.4 Election of Remedies ........................................................................................................... 8
1.5 Purpose of this Guide .......................................................................................................... 9
2. Overview of the Claims Process .............................................................................................. 10
Notice of Loss Submission and Acknowledgement ........................................................... 11
Loss Documentation ............................................................................................................ 11
Proof of Loss Submission ..................................................................................................... 12
Proof of Loss Review and Determination ............................................................................ 12
Compensation Determination .............................................................................................. 13
Roles and Responsibilities ................................................................................................... 13
Appeals .................................................................................................................................. 14
Claims Office Advocate ......................................................................................................... 14
Withdrawing from the Claims Process ................................................................................ 15
Translation Services ............................................................................................................. 15
Privacy Act ............................................................................................................................. 16
3. Notice of Loss .......................................................................................................................... 17
3.1 Who Can Submit a Notice of Loss .................................................................................... 17
Subrogation Claims .............................................................................................................. 18
3.2 How to Submit a Notice of Loss ........................................................................................ 19
NOL Information and Signature Requirements .................................................................. 19
Claims Office Locations and Hours of Operation ............................................................... 20
Deadline for Filing a Notice of Loss ..................................................................................... 20
3.3 Notice of Loss Acknowledgement ..................................................................................... 21
4. Proof of Loss ............................................................................................................................ 22
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4.1 Supporting a Proof of Loss ................................................................................................ 23
Eligibility Documentation ...................................................................................................... 23
Valuation Documentation .................................................................................................... 29
Declarations and Affidavits .................................................................................................. 30
4.2 How to Submit a Proof of Loss .......................................................................................... 30
Completing a Proof of Loss .................................................................................................. 30
Evaluating the Proof of Loss ................................................................................................ 31
4.3 Letter of Determination ..................................................................................................... 32
Release and Certification ..................................................................................................... 32
5. Loss Categories and Evaluation ............................................................................................. 34
5.1 General Requirements ...................................................................................................... 34
5.2 Property Losses ................................................................................................................. 34
Real Property ......................................................................................................................... 34
Homeowners Insurance Increases ...................................................................................... 37
Subsistence Resources ........................................................................................................ 38
Personal Property/Contents ................................................................................................ 38
5.3 Financial Losses ................................................................................................................ 40
Small Business Administration and Disaster Recovery Loans .......................................... 40
Flood Insurance .................................................................................................................... 41
Donations to Survivors of the Fire ....................................................................................... 44
Heightened Risk Reduction ................................................................................................. 45
Private Property Debris Removal ......................................................................................... 46
Relocation and Evacuation .................................................................................................. 46
Temporary Housing Expenses ............................................................................................. 48
Medical Expenses ................................................................................................................. 49
Lost Interest Income / Interest Paid ................................................................................... 50
5.4 Business Losses ................................................................................................................ 50
Business Interruption ........................................................................................................... 51
Start-up Businesses ............................................................................................................. 51
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Discontinuing Expenses ....................................................................................................... 51
Future Business Losses ....................................................................................................... 52
5.5 Government and Private Non-Profit Losses ..................................................................... 52
Ineligible Costs under FEMA PA ........................................................................................... 53
Fire-Related Staffing ............................................................................................................. 54
Other Federal Agency Grants Funding Match ..................................................................... 55
Acequias ................................................................................................................................ 55
Cascading Impacts for Government Claimants .................................................................. 56
5.6 Future Financial Losses .................................................................................................... 56
5.7 Reimbursement of Expenses to Submit a Claim ............................................................. 57
5.8 Exclusions........................................................................................................................... 57
Punitive Damages and Claimant Costs ............................................................................... 57
Noneconomic Damages ....................................................................................................... 57
Attorney or Agent Fees ......................................................................................................... 58
Loss of Non-Proprietary Uses ............................................................................................... 58
Lost Interest on Income from Lost Opportunities or Speculation ..................................... 58
6. Risk Reduction ......................................................................................................................... 59
6.1 Eligibility for Risk Reduction .............................................................................................. 59
6.2 Eligible Work- Homeowner/Parcel Scale Actions ............................................................ 60
Wildfire Risk Reduction ........................................................................................................ 60
Post-Fire Flooding Risk Reduction ....................................................................................... 61
Risk Reduction and Future Losses ...................................................................................... 62
6.3 Eligible Work- Community Scale Actions .......................................................................... 63
Risk Reduction for Public Facilities ..................................................................................... 63
Nature-based Risk Reduction Activities .............................................................................. 63
6.4 Risk Reduction Proposal and Technical Assistance ........................................................ 64
6.5 Use of Risk Reduction Funding ......................................................................................... 66
Verification of Project Completion ....................................................................................... 66
7. Duplication of Benefits ............................................................................................................ 68
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7.1 Sources of Potential Duplication of Benefits ................................................................... 68
Insurance Compensation ..................................................................................................... 68
Other Federal Financial Assistance ..................................................................................... 68
Assistance through the State of New Mexico ..................................................................... 68
Benefits Provided by Non-Governmental Organizations and Individuals ......................... 69
7.2 Duplication of Benefits Review Process ........................................................................... 69
8. Payments .................................................................................................................................. 70
8.1 General ............................................................................................................................... 70
Taxes ..................................................................................................................................... 71
Banking Information Form ................................................................................................... 71
Fraud Prevention Controls ................................................................................................... 72
8.2 Partial Payments ................................................................................................................ 73
Eligible Losses for Partial Payment ..................................................................................... 74
9. Reopening or Supplementing a Claim .................................................................................... 76
9.1 Reopening a Claim ............................................................................................................. 76
10. Appeals and Arbitration of Claims ........................................................................................ 77
10.1 Administrative Appeals ................................................................................................... 77
Notice of Appeal .................................................................................................................... 77
Acknowledgement of Appeal ............................................................................................... 78
Supplemental Filings by Claimant ....................................................................................... 78
Requests for Information from the Claims Office ............................................................... 79
Conferences .......................................................................................................................... 79
Hearings ................................................................................................................................ 80
Settlements ........................................................................................................................... 81
Extensions ............................................................................................................................. 81
Decision on Appeal ............................................................................................................... 82
Claimant’s Options After Filing a Notice of Appeal ............................................................. 82
Additional Provisions ............................................................................................................ 83
10.2 Arbitration ........................................................................................................................ 84
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Initiating Arbitration .............................................................................................................. 84
Permissible Claims and Evidence........................................................................................ 85
Selection of Arbitrator .......................................................................................................... 85
Conduct of Arbitration .......................................................................................................... 85
Decision ................................................................................................................................. 85
Fees and Expenses ............................................................................................................... 86
10.3 Judicial Review ................................................................................................................ 86
10.4 Collecting Erroneous Payments ...................................................................................... 86
11. Access to Records and Privacy Act ...................................................................................... 88
11.1 Privacy Protection ............................................................................................................ 88
11.2 Audits and Investigation ................................................................................................. 88
11.3 Request for Information .................................................................................................. 88
11.4 Request for File ............................................................................................................... 89
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List of Figures
Figure 1: Claims Process Overview ............................................................................................. 10
Figure 2: Roles and Responsibilities .......................................................................................... 14
Figure 3: Notice of Loss ............................................................................................................... 17
Figure 4: Proof of Loss ................................................................................................................. 22
Figure 5: Partial Payments Process ............................................................................................ 74
List of Tables
Table 1: Proof of Ownership ........................................................................................................ 25
Table 2: Proof of Occupancy ....................................................................................................... 29
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1. GENERAL
1.1 Historical Context
On April 6, 2022, the U.S. Forest Service (USFS) initiated the Las Dispensas-Gallinas
prescribed burn on federal land in the Santa Fe National Forest in San Miguel County, New
Mexico. That same day, the prescribed burn, known as the “Hermit's Peak Fire,” escaped the
burn unit's boundaries and the USFS declared it as a wildfire, spreading to other federal and
non-federal lands. On April 19, 2022, the Calf Canyon Fire, also in San Miguel County, New
Mexico, began burning on federal land and was later identified as the result of a pile burn in
January 2022 that remained dormant under the surface before reemerging.
The Hermit's Peak and Calf Canyon Fires merged on April 27, 2022, and both fires were
reported as the Hermit's Peak Fire or the Hermit's Peak/Calf Canyon Fire (“fire”). By May 2,
2022, the fire had grown, causing evacuations in multiple villages and communities in San
Miguel County and Mora County.
At the request of New Mexico Governor Lujan Grisham,
President Biden issued a major disaster declaration on May 4, 2022.
The fire was 100
percent contained by August 21, 2022.
On September 30, 2022, President Biden signed the Hermit’s Peak/Calf Canyon Fire
Assistance Act (“Act”) into law as part of the Continuing Appropriations and Ukraine
Supplemental Appropriations Act, 2023, Public Law 117–180, 136 Stat. 2114 (2022).
Congress passed the Act to compensate parties who suffered losses from the Hermit's
Peak/Calf Canyon Fire.
1.2 The Claims Office Way and FEMA Core Values
The Claims Office has two principal goals that guide the way we deliver our mission: (1)
provide full compensation available under the law as expeditiously as possible with the
smallest burden placed on claimants, and (2) create a world class organization that meets
the needs of New Mexicans impacted by wildfires and subsequent floods. To achieve this,
the Claims Office developed a set of values and fundamentals that are critical to how the
organization operates: 1) operate as one team executing one mission; 2) do the right thing
today and tomorrow; 3) deliver excellence to help everyone succeed in the claims process;
4) respect the needs and experiences of those we serve; 5) communicate clearly and,
transparently; 6) honor commitments; 7) practice rapid reconciliation; and 8) invest in us. In
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addition, the Claims Office has set the expectation that all employees embody the core
values of FEMA which are compassion, fairness, integrity, and respect.
1.3 Authority
The Hermit's Peak/Calf Canyon Claims Office (“Claims Office”) provides compensation based
on the Act and the Hermit's Peak/Calf Canyon Fire Assistance regulations codified at 44
C.F.R. Part 296. These authorities identify eligible losses and requirements for filing a claim.
When the Program and Policy Guide (PPG) uses the words “must” or “required,” it is a legal
requirement. Claimants
1
may jeopardize their compensation if they do not comply with these
requirements.
The Act requires the Federal Emergency Management Agency (FEMA) to design and
administer a claims program to compensate claimants for their property losses, financial
losses, and business losses, while providing expeditious consideration and settlement for
those claims. The Act’s funding is distributed through the Claims Office directly. The Claims
Office works alongside the state of New Mexico, Tribal Nations, and local partners to design
and implement the Hermit’s Peak/Calf Canyon claims process. The Act further directs FEMA
to establish an appeals and arbitration process to resolve disputes regarding claims.
1.4 Election of Remedies
Individuals and entities may seek compensation for damages suffered from the fire from the
United States through one of three mechanisms:
• the Act;
• the Federal Tort Claims Act; or
• a civil lawsuit against the United States (as authorized by another law).
Injured Persons
2
who accept a final award under the Act waive the right to pursue any
claims arising out of or relating to the same subject matter, whether through the Federal
1
A person or entity that has filed a Notice of Loss (NOL) under the Act.
2
Injured Person is defined as, “An individual, regardless of citizenship or alien status; or a Tribal Nation, tribal
corporation, corporation, partnership, company, association, county, township, city, state, school district, or
other non-federal entity with losses resulting from the fire. The term Injured Person includes a tribal
government or Tribal Nation with respect to any claim relating to property or natural resources held in trust for
the tribe by the United States. Lenders holding mortgages or security interests on property affected by the
Hermit’s Peak/Calf Canyon Fire and lien holders are not an “Injured Person” for purposes of the Act.” 44 C.F.R.
§ 296.4.
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Tort Claims Act or a civil lawsuit.
3
An Injured Person who accepts a final award from the
United States under the Federal Tort Claims Act or other civil action relating to the fire
similarly waives the right to pursue a claim under the Act. When a claimant accepts a partial
payment award, they waive the right to pursue legal action regarding the items in that partial
payment. They can pursue compensation for other losses via the claims process, the
Federal Tort Claims Act, or a civil lawsuit against the United States (as authorized by another
law).
1.5 Purpose of this Guide
FEMA issues policy and guidance to articulate the Agency’s intent and direction when
implementing statutory and regulatory authority. The purpose of the PPG is to define the
Claims Office’s policy and procedural requirements at the time of publication.
The PPG provides high-level program delivery information and describes important
processes that occur throughout the claim lifecycle. The Claims Office uses the PPG to
inform claimants, community members, and Claims Office staff of the policy guidelines
applicable to claims filed under the Act. However, each claim will be resolved on a case-by-
case basis, taking into consideration each claimant's particular circumstances.
The Claims Office will release new versions of the PPG when updates are required to reflect
the best available data, updated policy, process changes, or eligibility clarifications. The
changes will be noted in the version history, table of changes, and a new version number will
be assigned.
Although the PPG is based on and aligned with the Act and the implementing regulations,
those authorities supersede this guide in the event of a conflict.
3
44 C.F.R. § 296.12.
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2. OVERVIEW OF THE CLAIMS PROCESS
The Claims Office staff supports claimants throughout the claims process. Navigators and
Claims Reviewers are the primary staff that claimants interact with from the Claims Office.
Navigators are trusted members of the local community that provide individualized support
to claimants and assist them throughout the life of the claim but are not authorized to make
eligibility or compensation determinations. Navigators are FEMA employees. Claims
Reviewers are insurance adjusters contracted by the Claims Office that are authorized by
the Claims Office Director to review and evaluate claims submitted under the Act (see Roles
and Responsibilities for descriptions of staff roles and responsibilities).
Figure 1: Claims Process Overview lists each step of the claims process. The claimant has
150 days from the date that the Notice of Loss (NOL) was acknowledged by the Claims
Office to submit their final Proof of Loss (POL). The Claims Office has 180 days from the date
that the NOL was acknowledged to process a claim and notify the claimant of a
compensation determination. A document is deemed submitted to the Claims Office based
on the date that the document is postmarked or emailed.
Figure 1: Claims Process Overview
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Notice of Loss Submission and Acknowledgement
Filing a NOL with the Claims Office is the first step in the claims process. The Claims Office
supplies the NOL form, through which an Injured Person enters the claims process for
possible compensation under the Act. On the NOL, claimants provide their contact
information, list losses for which they are seeking compensation, and identify an Authorized
Third-Party representative, if desired. To designate a third-party representative and authorize
them to receive communications, claimants must complete the third-party representation
portion of the NOL identifying the attorney or other authorized representative and
consenting to disclosure of claim information.
Claimants can consent to share their claim information with the State of New Mexico on the
NOL. This allows the Claims Office to share information with the Disaster Case Management
(DCM) program administered by the State. The DCM program helps to support claimants by
identifying different types of assistance to meet immediate or short-term unmet needs.
After submitting the NOL, the Claims Office will assign a Navigator to the claim who will
contact the claimant to review their NOL and verify contact information. The Claims Office
will provide the claimant or authorized third party with a written or electronic
acknowledgement that the claim has been filed and assigned a unique claim number. This
acknowledgement starts the 150-day deadline for the claimant to submit their final POL and
supporting documentation and the 180-day deadline for the Claims Office to make a
compensation determination.
During the initial conversation between the claimant and their assigned Navigator, the
Navigator may support the claimant in identifying losses that can be eligible for a partial
payment. This provides an opportunity for the claimant to receive payment for eligible losses
while still progressing through the claims process for their overall, larger claim(s). For more
information regarding partial payments, refer to 8.2 Partial Payments.
Claimants must submit all NOLs no later than November 14, 2024.
4
Loss Documentation
Navigators maintain contact with the claimant and support the claimant throughout the
claims process. Navigators will discuss losses identified in the NOL, advising the claimant of
common types of losses and the supporting documentation requirements that will likely be
4
Section 104(d)(4)(C)(vii) of the Act, Pub. Law 117-180, 136 Stat. 2169.
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applicable to their claims. The Navigator can also help the claimant obtain required
documentation, help complete and submit necessary forms, and answer any questions a
claimant may have. The Navigator acts as the Claims Office main contact for the claimant
and may provide other support as requested, such as informing the claimant of other
available federal financial assistance or referring the claimant to other state, local, and/or
tribal resources and programs.
Proof of Loss Submission
After the claimant discusses their submitted claim with their Navigator, the Navigator and
claimant will begin gathering documents to complete a POL form. The POL is a sworn
statement attesting to the nature and extent of the claimant’s losses. Claimants can submit
multiple POLs for their claim if any of their losses are severable and eligible for partial
payment. See 8.2 Partial Payments section for more information about severable losses and
partial payments. A final POL must be submitted within 150 days of the NOL
acknowledgement. The Claims Office will reach out to claimants 120 days after
acknowledgement of the NOL to ensure the claim is on track to meet the deadlines to
ensure they are progressing with any documentation needs and offer support as necessary.
All POLs associated with the claim must be signed and submitted within 150 days of the
NOL acknowledgement date, as required by the regulations.
5
The claimant is responsible for
establishing that any submitted losses are the result of the fire and for providing all
documentation needed to assess those losses for eligibility and compensation.
Proof of Loss Review and Determination
The Claims Reviewer will review the POL and supporting documentation and prepare a
summary which will include a recommended compensation amount for each loss listed on
the POL and any duplication of benefits (DOB) payments that affect the Claims Office
compensation determination. The Claims Reviewer will also review relevant documentation
to verify that the loss was caused by the fire or resulting hazards and will evaluate
ownership documents to verify the claimant is the proper payee. The Claims Reviewer is
responsible for providing an objective evaluation of the claim to the Authorized Official.
5
44 C.F.R. § 296.30(b).
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Compensation Determination
The Authorized Official will review the POL and summary prepared by the Claims Reviewer to
determine if the recommended compensation aligns with policies. The Authorized Official
will then confirm the amount of compensation due to the claimant. The Claims Office will
provide a written decision to the claimant through a Letter of Determination (LOD), which
includes a summary of the compensation amounts determined by the Claims Reviewer. The
LOD uses the POL and the Claims Reviewer summary to determine compensation. The
claimant has 120 days to accept or reject the determination.
6
If accepted, the claimant will
receive payment after returning completed Release and Certification (R&C) and Banking
Information form.
When the claimant completes the final R&C Form and accepts final payment from the
Claims Office, the claimant’s decision to accept compensation is final, and the claimant may
no longer seek other legal remedies, but may reopen their claim under certain specific
circumstances outlined in 9.1 Reopening a Claim.
7
Roles and Responsibilities
The figure below provides a summary of the personnel who interact most with claimants
throughout the claims process.
6
44 C.F.R. §296.32(b).
7
A partial R&C and partial payment is only final as to the part of the claim for which partial payment is
accepted. If a claimant accepts a partial payment on estimated costs, the claimant can reopen the claim for
compensation of actual costs, as discussed in
9.1 Reopening a Claim.
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Figure 2: Roles and Responsibilities
Appeals
If the claimant is not satisfied with the decision and chooses not to sign the R&C Form, the
claimant may file an administrative appeal with the Claims Office Director. If the claimant is
not satisfied after appeal, the dispute may be resolved through binding arbitration or heard
in the United States District Court for the District of New Mexico. At any time prior to
accepting final payment from the Claims Office, the claimant may withdraw the claim and
pursue any other available legal remedies.
More detail on the appeals process can be found in 10.1 Administrative Appeals.
Claims Office Advocate
The mission of the Advocate is to ensure the Claims Office and processes are equitable,
claimant-centric, accountable, and transparent. The Advocate works to ensure that the
affected communities are fully informed of the claims process and the types of
compensation available. To do this, the Advocate fosters connections with various local
stakeholders and partners to best understand the needs of the community. The team
regularly hosts local events to provide support and information to claimants and the
community outside of Claims Office locations and after working hours. The Advocate reports
directly to the Claims Office Director and independently identifies and escalates challenges
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with the claims process or issues brought to their attention by the community. The
Advocate’s Office also works directly with claimants when they encounter challenges during
the claims process and advocates on their behalf for timely and fair resolution. Finally, the
Advocate collaborates with Claims Office staff to identify ways to simplify the claims process
for claimants.
At any point throughout the claims process, a claimant may elect to elevate any concerns or
questions to the Advocate. The claimant can access the Advocate through their Navigator or
using the following contact information:
Claims Office Advocate
(505) 403-3373
FEMA-Hermits-Peak-Claims-Advocat[email protected]
https://www.fema.gov/disaster/current/hermits-peak/contact-us
Withdrawing from the Claims Process
Claimants may withdraw their claim from consideration for compensation at almost any
point during the claims process. Claimants can withdraw after submitting their NOL, after
their NOL is acknowledged, after submitting their POL, and after accepting a partial
payment. If a claimant has accepted a partial payment and received the payment
distribution, they can still withdraw the rest of their claim from the claims process.
The only point at which a claimant can no longer withdraw their claim is after receiving and
accepting their final payment LOD. If the claimant has accepted the payment determination
listed in their final LOD and submitted a completed and signed R&C Form for that final LOD,
they are no longer able to withdraw their claim. Claimants may provide their withdrawal
notice to the Claims Office in writing via an email or letter. At minimum, the withdrawal
notice should include the claimant’s name, claim ID, and a statement that the claimant
intends to withdraw the claim. The notice to withdraw can be sent to the Claims Office via
email, fax or mail.
Translation Services
Translators can provide information and assist claimants throughout the claims process
either in person or by telephone. The Claims Office provides all required forms in both
English and Spanish.
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Privacy Act
FEMA is required to provide a copy of the Privacy Act Notice to all claimants, which is
included with the NOL.
8
While the Claims Office encourages claimants to read and
understand the Privacy Act Notice, there is no requirement that a claimant sign or initial a
statement that states that the notice has been read and understood.
8
44 C.F.R. § 296.37.
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3. NOTICE OF LOSS
Figure 3: Notice of Loss
3.1 Who Can Submit a Notice of Loss
Any Injured Person can submit a NOL to the Claims Office. An Injured Person under this Act
is defined as any individual, regardless of citizenship or alien status; or a Tribal Nation, tribal
corporation, corporation, partnership, company, association, county, township, city, state,
school district, or other non-federal entity that suffered injuries resulting from the fire.
9
An
Injured Person that submits a NOL to the Claims office is a claimant.
Claimants that wish to be represented by an attorney or other third party in the claims
process must complete the “Authorization of Representation” section of the NOL to identify
their legal representation and consent to the disclosure of their claim information. In
addition to attorneys, claimants can also designate a family member or friend as an
Authorized Third-Party representative.
If the Injured Person is deceased, the claim can be filed by the lawfully appointed executor
or personal representative of the estate. The executor or personal representative should
9
Section 103(4) of the Act, Pub. Law 117-180, 136 Stat. 2169; 44 C.F.R. § 296.4.
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send proof of their authority when submitting the claim so that their eligibility to submit a
claim can be verified by the Claims Office.
The Claims Office does not require individual claimants apply for FEMA disaster assistance
before filing a NOL. However, injured parties who are eligible applicants for FEMA Public
Assistance (PA) are required to first apply for FEMA PA before submitting claims to the
Claims Office (a list describing entities that must first apply to FEMA PA can be found in 5.5
Government and Private Non-Profit Losses). Compensation will not be awarded by the
Claims Office for losses or costs that are eligible under FEMA PA.
Subrogation Claims
An insurer, or other third party with the rights of a subrogee who has compensated an
Injured Person for fire-related losses, may file a NOL under the Act for the subrogated claim.
A subrogee may file a NOL without regard to whether the Injured Person who received
payment from the subrogee filed a NOL and received compensation from the Claims Office.
A subrogee should not file a subrogation NOL until after they have made all payments to the
insured, as the Claims Office will not process a subrogation claim for compensation until
after all payments have been made by the subrogee. The subrogee may file a NOL if there is
a dispute between the Injured Person and the subrogee which is pending before a third
party (e.g., appraiser, arbitrator, or court), provided that the insurer has made the final
payment that it believes that the insured is entitled to receive under the policy.
10
Subrogation claimants will submit the POL contemporaneously with filing the NOL.
11
The
deadline to file a NOL, including a subrogation NOL, with the Claims Office is November 14,
2024. Subrogation claims do not impact any claims in process for insured parties.
The Claims Office will not consider a subrogation claim for compensation unless the
subrogee commits to exclusively use the Act as its mechanism for seeking compensation
from the United States for all fire-related subrogation claims and any other fire-related
losses. By filing a NOL for any subrogated claim, the subrogee elects the Act as its exclusive
remedy against the United States or any employee, officer, or agency of the United States for
all subrogated claims arising out of the fire.
10
44 C.F.R. §296.13.
11
44 C.F.R. § 296.13.
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3.2 How to Submit a Notice of Loss
Interested parties can obtain a NOL form from FEMA’s website at
http://www.fema.gov/hermits-peak or from any of the Claims Office locations listed in the
Claims Office Locations and Hours of Operation section below. A claim submitted on any
form other than the NOL form will not be accepted.
A single NOL may be submitted on behalf of multiple Injured Persons provided that all
Injured Persons listed on the claim are identified as members of the same household or
have financial interest in the claim. The NOL should identify all owners or entities with an
ownership interest in property for which compensation is being claimed.
NOL Information and Signature Requirements
Claimants must provide a brief description of each loss on the NOL.
12
The NOL does not
need to include a comprehensive list of all losses experienced by the claimant, as claimants
may identify additional losses as they progress through the claims process. Any additional
losses not previously identified on the NOL can be included on the subsequent POL.
Claimants do not need to amend their previously submitted NOL to include additional losses
on the POL, however including additional losses does not change the deadlines associated
with the claim.
For individual or household claims, each claimant identified must sign the NOL. For business
or organizational claims, an authorized representative or owner must sign the POL. If a
claimant lacks the legal capacity to sign, such as a minor or an individual with diminished
mental capacity, a duly authorized legal representative of the claimant can sign the NOL on
their behalf. If signing the NOL as the legal representative of a claimant who lacks legal
capacity, the signer must disclose their relationship to the claimant. The Claims Office may
require a legal representative to submit evidence of their authority to act on behalf of the
claimant.
13
Claimants with legal or other representation must designate the attorney or
other representative as their Authorized Third-Party representative on their signed NOL to
comply with the Privacy Act and to ensure all communications are properly facilitated
through their legal representation.
12
44 C.F.R. §296.10.
13
44 C.F.R. §296.10.
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Claims Office Locations and Hours of Operation
Claimants may file a NOL with the Claims Office by mail, email, or in person.
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Mailing Address:
FEMA Hermit’s Peak/Calf Canyon Claims Office
P.O. Box 1329
Santa Fe, NM 87504
Email: fema[email protected]
Office Locations:
For a list of Claims Office locations and operating hours, please visit:
https://www.fema.gov/disaster/current/hermits-peak/contact-us
If a claimant submits a NOL in person at a Claims Office location, staff will perform a cursory
review of the NOL to ensure the claimant has completed and signed the document before
accepting it. Claimants should be aware that they are ultimately responsible for ensuring the
NOL is appropriately signed when submitting the form. Staff can also make a copy for the
claimant’s record, if requested. Staff will formally acknowledge the NOL later and enter it
into the Claims Office system of record.
Deadline for Filing a Notice of Loss
The deadline to submit a NOL to the Claims Office is November 14, 2024.
15
Claimants may
include additional losses not listed on their NOL at any time up until submitting the final
POL. Claimants may have more than one NOL for specific circumstances such as requesting
flood insurance or risk reduction activities.
In limited circumstances, the claimant can request the Claims Office consider
supplementing a claim after the POL is filed but before the R&C is submitted. The request to
supplement must be received in writing not later than the deadline for filing an
Administrative Appeal or November 14, 2024, whichever is earlier. The claimant can request
to re-open a claim after the R&C has been filed, but these requests must be submitted by
14
44 C.F.R. § 296.10(e).
15
44 C.F.R. § 296.11.
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November 14, 2025.
16
More information regarding supplemental claims and re-opening of
claims is available in 9: Reopening or Supplementing a Claim.
3.3 Notice of Loss Acknowledgement
The Claims Office aims to acknowledge each claim by letter and/or email to the address
listed on the NOL within 30 days of receipt. If a claimant has questions on the status of their
NOL acknowledgement, they may reach out to the Advocate for assistance. It is the
operational goal for the Navigator to contact the claimant within three days of
acknowledgement of the NOL. This allows the Navigator to confirm the claimant’s contact
information by phone or email.
If a claimant is represented by an attorney as their authorized third party, the Claims Office
will send the acknowledgement letter for their claim directly to the attorney. In claims with
multiple claimants, notifications will go to the claimant designated as the primary contact on
the NOL. The Claims Office considers the NOL formally acknowledged based on the date
printed on the acknowledgement letter provided to the claimant. This date of
acknowledgement starts the 150-day timeline for the claimant to develop and submit a final
POL, as well as the overall 180-day timeline for the Claims Office to make a compensation
determination.
In addition to a mailed acknowledgement letter, the assigned Navigator will notify the
claimant or their third-party representative via phone and advise them of the
acknowledgement date and the POL submission deadline, both of which are also provided in
the letter. Claimants can request that the Navigator send them a digital copy of the
acknowledgement letter via email. The Claims Office will work to contact claimants through
their preferred method of communication but may use multiple methods to ensure contact
with the claimant is successful.
16
44 C.F.R § 296.35.
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4. PROOF OF LOSS
Figure 4: Proof of Loss
The POL is a detailed accounting of a claimant’s loss(es) and the associated amounts of
compensation being requested for each loss. The section of the form to request
compensation is formatted according to the claimant type – Individual or Household,
Business or Non-Profit Organization, or Government (state, local, or tribal). Claimants must
also submit all required documentation to verify eligibility and support the claimant-
requested amounts of compensation for each loss listed on the POL.
The Navigator offers assistance to the claimant in completing their POL and collecting
necessary documentation. The Claims Reviewer reviews, investigates, and objectively
evaluates the POL on behalf of the Claims Office. Claims Reviewers do not function as
agents or representatives of the claimant but work closely with the assigned Navigator to
identify necessary documentation requirements to adequately assess the eligibility and
valuation of the losses. The Claims Office may need to contact third-party sources, such as
insurance companies, for additional information, and claimants may be asked to sign a
release form to authorize information sharing between entities.
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4.1 Supporting a Proof of Loss
The claimant bears the burden of proving their eligibility for compensation from the Claims
Office and must provide documentation to verify their requested compensation amounts for
each submitted loss.
17
Claimants can submit any information or documentation that they
deem relevant to their loss(es) to establish a record for the Claims Office to evaluate. The
claimant is solely responsible for establishing this. The Claims Office is required to justify
compensation determinations and expects claimants to provide any reasonably available
documentation to corroborate the nature, extent, and value of their losses.
While the Claims Office does have documentation standards that must be met to qualify for
compensation, it aims to be as flexible as possible with the type and amount of
documentation required, in alignment with regulations. In some circumstances, the Claims
Office may rely on sworn statements (see Declarations and Affidavits under 4.1D:
Supporting a Proof of Loss) in the absence of any other documentation. The Claims
Reviewer will work with the Navigator to determine alternative documentation requirements
to accommodate the claimant.
The Claims Office will consider all evidence in the record when making determinations on
each claim. The Claims Office may require an inspection of real property to verify certain
losses as part of the claims process.
18
Eligibility Documentation
To be eligible for compensation, a claimant must show that any losses being claimed were
caused by the fire or subsequent flooding, wind shear, or other hazards arising from the fire,
starting on April 6, 2022. Damage from other fires or other causes not related to the fire are
not eligible. Documentation for proving a loss will vary depending on the loss type, but for all
loss types, the claimant should be prepared to provide proof that their loss was specifically
caused by the fire or subsequent events resulting from the fire.
Proof of Ownership
Claimants must prove that they owned the damaged property at the time of loss caused by
the fire or other hazards arising from the fire. Navigators can work with the claimants to
17
44 C.F.R. § 296.30(a).
18
44 C.F.R § 296.30(a).
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verify ownership by helping the claimant to identify and collect one or more of the
documentation types listed below.
Table 1: Proof of Ownership includes examples of the types of documents and acceptable
dates that claimants may submit to verify ownership. If primary sources for documenting
ownership are unavailable, multiple secondary sources may be used to show ownership.
Documentation to Verify Ownership
Primary Source of Ownership
Documentation
Document and Description
Acceptable Document Date
Property Tax Statement: Tax Statements
19
are the
best form of current proof of ownership, and in most
cases, the easiest to obtain. If the tax statement does
not list a physical “street address,” supporting
documentation from the documentation types shown
below can be utilized to obtain a physical address.
Current year statements are always
available and show ownership effective
April of 2022.
Deed or Official Record: Original deed, warranty deed
or deed of trust to the property. Must also include a
utility bill dated between April 2022 and present.
Deed must be current/effective between
April 2022 to the present.
Mortgage Documentation: Mortgage statement,
mortgage promissory note, or the closing disclosure
form.
Mortgage statements or escrow
documents must be dated between April
2022 to the present.
Structural or real property insurance document, bill, or
payment record.
Documents must be dated between April
2022 to the present.
Secondary Sources of Ownership Documentation
Document and Description
Acceptable Document Date
Miscellaneous Legal Documents
• Real Estate Contract
• Contract for Deed
• Land Installment Contract
• Quitclaim Deed
• Bill of Sale or Bond for Title
Document must be current/effective
between April 2022 to the present.
19
A current tax statement can be obtained online for San Miguel County at this link: Search. Mora County Tax
Statements can be obtained in person at the Mora County Courthouse.
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Documentation to Verify Ownership
Mobile Home Park Letter: In the case of mobile homes
or travel trailers located in a mobile home park, the
claimant may submit a letter or other written statement
from the commercial or mobile park owner or manager,
which states that the claimant or co-claimant owned
the fire-damaged dwelling at the time of the fire. The
letter or written statement must include the name and
telephone number of the individual providing
verification and must explain how the individual knows
the claimant or co-claimant owned the mobile home or
travel trailer at the time of the fire (i.e., they had a copy
of their ownership documentation on file).
The commercial or mobile park owner’s or
manager’s letter or written statement
must be dated current/effective between
April 2022 to the present.
Court Documents:
A copy of court documentation that
states the claimant owns the fire-damaged dwelling.
Court documentation must be effective
between April 2022 to the present.
Public Official’s Letter: Public official’s (i.e., federal,
state, local, tribal, or territorial government official)
letter or other written statement that includes the name
of the claimant or co-claimant, the fire-damaged
dwelling address, verification that the claimant or co-
claimant owned the fire-damaged dwelling at the time
of the fire, and the name and telephone number of the
individual providing verification.
Public official’s document must be
effective between April 2022 to the
present.
Place of worship records: In some cases, it may be
necessary to rely on church records and the like for
properties that have been inherited for generations
without the use of formal documentation.
Document must be effective between
April 2022 to the present.
Table 1: Proof of Ownership
Multiple and/or Shared Ownership
As the claim is developed, all claimants with an ownership stake in the property or damaged
items must be identified and involved in the claims process. When completing the NOL, all
potential claimants should be listed in the Claimant Contact Information section of the NOL
if they decide to submit one joint claim.
The primary claimant on the NOL, who is listed in the claimant contact information section,
is designated as the primary contact for the claim. Co-claimants listed on the NOL may also
reach out to the Navigator for information on the status of the claim.
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In certain cases, declarations or affidavits may be necessary to ensure that all owners are
aware of and in agreement with the compensation approach and amounts.
Navigators and Claims Reviewers will review all documentation submitted to verify
ownership of property to determine if the claimant is the sole owner or if other owners are
identified. A claimant is only eligible for compensation for damaged or destroyed property to
the extent that they own the property. If others have an ownership interest as shown on
ownership documents such as deeds, titles, or other similar documentation, they are legally
entitled to share in the compensation and must be included in the claim resolution and
execute claims documents, including providing proof of identity and signing the POL and
R&C. Payment on the claim must address the interests of all owners.
If ownership documents indicate that property is owned in trust, the trust is the payee for
compensation. A trustee should be prepared to provide trust documents to ensure that
compensation is paid as appropriate.
In addition to submitting a declaration acknowledging payment, if necessary, and signing the
POL and R&C, if the co-owner(s) of the property do not have verified claimant records within
the system of record, each co-owner will need to submit documentation to verify
identification. Please refer to the Proof of Identity section immediately following for a list of
acceptable documents to verify identity. Co-owners should submit a copy of their proof of
identity documentation with their signed declaration.
Proof of Identity
To verify identity, claimants should be prepared to provide at least one of the following types
of photo ID:
• Driver’s License, State or Tribal ID;
• United States Passport Booklet or Card;
• United States Military ID.
If claimants do not have a photo ID, claimants should refer to their state’s Motor Vehicle
Division (MVD) website, or to New Mexico Motor Vehicle Division NM (newmexico.gov)
which lists many types of alternative documents that claimants may provide in order to
acquire a new driver’s license or State or Tribal ID.
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Proof of Occupancy
For claimants who reside or resided in their damaged property part-time or for claimants
who rented or leased their residence or property, Table 2: Proof of Occupancy below
provides additional types of documentation that claimants can use to demonstrate that they
occupied the damaged property at the time of the fire (including part-time occupancy). Proof
of occupancy is required for claimants that are renters or claiming losses where determining
the proximity to the fire may be important for determining compensation.
Documentation to Verify Occupancy
Document and Description
Acceptable Document Date
Lease/Housing Agreement
: Copy of a written lease,
housing agreement, a letter or other written statement
from the landlord that includes: the name of the
claimant or co-claimant, the landlord’s contact
information, the basic terms of tenancy including: the
location of the pre-fire unit, the duration of the lease
confirming that the claimant lived there at the time of
the fire, signatures from both the claimant or co-
claimant and the landlord. The Claims Office
will accept
a lease or housing agreement without a signature from
the landlord, but FEMA must be able to verify the lease
with the landlord.
Documents must be current/effective
during the fire period (April 5, 2022 - July
23, 2022).
Utility Bills: Electric, gas, oil, trash, water/sewer bills
that reflect the name of the claimant or co-claimant
and the damaged residence address.
Utility bills must be current/effective
during the fire period (April 5, 2022 - July
23, 2022).
Other Bills: Bank or credit card bill, phone bill,
cable/satellite bill, medical provider’s bill, etc., that
reflect the name of the claimant or co-
claimant and the
damaged residence address.
Bills or invoices must be current/effective
during the fire period (April 5, 2022 – July
23, 2022).
Employer’s Documents: Pay stubs or similar
documents received before the fire, or a letter or
other written statement from an employer prepared
after the fire that shows the claimant or co-claimant
and the damaged residence address. The letter or
written statement must include the name and
telephone number of the individual or organization
providing verification.
Employer’s documents must be
current/effective during the fire
period (April 5, 2022 - July 23, 2022).
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Documentation to Verify Occupancy
Rent Receipts: Copy of a rent receipt or bank statement
showing the name of the claimant or co-claimant, the
landlord’s contact information, and the address of the
pre-fire housing unit.
Rent receipts must be current/effective
during the fire period (April 5, 2022 – July
23, 2022).
Social Service Organization Documents: Documentation
received before the fire from a social service
organization that provided pre-fire services to the
claimant (e.g., Center for Independent Living, Meals on
Wheels, the National Urban League, etc.) and includes
the name of the claimant or co-claimant and the fire-
damaged dwelling address or a letter or other written
statement from the organization prepared after the fire
verifying that the claimant or co-claimant occupied the
fire-damaged dwelling at the time of the fire. The letter
or written statement must include the name and
telephone number of the individual or organization
providing verification.
The social service organization documents
must be current/effective during the fire
period (April 5, 2022 - July 23, 2022).
Local School Documents: Documentation received from
a public or private school or the school district before
the fire that include the child’s fire-damaged dwelling
and the name of the claimant or co-
claimant, or a letter
or other written statement from the school or school
district prepared after the fire verifying the child’s
residence at the time of the fire and includes, in the
case of a dependent, the name of the claimant or co-
claimant. The letter or written statement must include
the name and telephone number of the individual or
organization providing verification.
The local school district documents must
be current/effective during the fire period
(April 5, 2022 - July 23, 2022).
Public Official’s Letter: Public official’s (i.e., federal,
state, local, tribal, or territorial government official)
letter or other written statement that includes the name
of the claimant or co-claimant, the fire-damaged
dwelling address, that the claimant or co-claimant
owned the fire-damaged dwelling at the time of the fire
,
and the name and telephone number of the individual
providing verification.
Public official’s document must be
current/effective between April 2022 to
the present.
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Documentation to Verify Occupancy
Federal or State Benefit Documents: Documents
received before the fire from a federal or state agency
that provided benefits to the claimant (e.g.,
Supplemental Nutrition Assistance Program (SNAP),
stimulus checks, etc.) and includes the name of the
claimant or co-claimant and the fire-damaged dwelling
address or a letter or other written statement from the
organization prepared after the fire verifying that the
claimant or co-claimant occupied the fire-damaged
dwelling at the time of the fire. The letter or written
statement must include the name and telephone
number of the individual or organization providing
verification.
The federal or state agency benefits
documents must be current/effective
during the fire period (April 5, 2022 - July
23, 2022).
Table 2: Proof of Occupancy
Valuation Documentation
Claimants are responsible for submitting the necessary documentation to justify the
requested amounts for compensation for each submitted loss. This documentation can
include receipts, estimates, appraisals, or any other documentation that verifies the
estimated value of a loss. If an estimate is required to evaluate one or more of a claimant’s
losses, the Navigator will advise the claimant of which type of document will best suit the
loss such as estimates by the Claims Office, private quotes, or appraisals.
Claims Expenses and Third-Party Assessments
The Claims Office will reimburse claimants for reasonable costs they incur to provide
documentation or estimates, including third party assessments, valuations, and appraisals
that are requested or deemed necessary to determine the amount of the claim by the
Claims Office. The Claims Office will not reimburse claimants for the cost of appraisals or
other third-party opinions not deemed necessary by the Claims Office.
20
Additional
information regarding reimbursement of claims expenses can be found in 5.7
Reimbursement of Expenses to Submit a Claim.
Where possible, claimants should request approval from the Claims Office for a third-party
assessment or appraisal in advance before receiving the service. Assessments and
appraisals that aid in determining compensation amounts, validate ownership or property
lines, or provide technical assistance to claimants are eligible for compensation. All third-
20
44 C.F.R. § 296.31.
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party products will be assessed to ensure their costs are reasonable based on other
assessments received by the Claims Office or by providing multiple quotes.
Declarations and Affidavits
If documentation or other substantiating evidence of a loss is not reasonably available or
insufficient to prove the claim (e.g., if documentation burned in the fire and is not available
in public records), the Claims Office may determine that a sworn statement from the
claimant, such as declarations or affidavits, will be required to aid in substantiating the loss.
Declarations are sworn and signed statements, and affidavits are signed and notarized. If a
claimant chooses to use a Claims Office estimate, a declaration, or affidavit for a
compensation determination, they should still provide any relevant documentation or
receipts as available. The Claims Office may request that the claimant obtain an affidavit or
declaration from a third party to strengthen the claim if the actual documentation is not
sufficient. If required, the Claims Office will provide guidance on which document is most
appropriate and how to obtain them.
4.2 How to Submit a Proof of Loss
No later than 150 days after submitting a NOL, a claimant must submit a final POL to the
Claims Office. Although a Navigator may have assisted the claimant to prepare the POL, the
claimant is responsible for assuring that the information provided in the POL is accurate and
must sign the POL under penalty of perjury. For good cause, the Claims Office will consider
requests for extensions, which will be granted at the discretion of the Claims Office Director.
If a non-subrogation claimant does not complete the final POL within this timeframe, or fails
to obtain an extension, the Claims Office may administratively close the claim and notify the
claimant.
21
In this instance, claimants can refile at any time before the November 14, 2024,
deadline. A claimant may also choose to withdraw their claim at any time and re-file before
November 14, 2024.
Completing a Proof of Loss
The Navigator can assist the claimant in completing the POL form. Navigators can also
advise the claimant on required documentation to support the POL and can provide support
21
44 C.F.R. § 296.32(b).
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in obtaining any documentation. The claimant can submit documentation to the Claims
Office before they sign and submit their POL.
Claimants can submit multiple POLs if any portion of the claim is eligible for a partial
payment. This allows claimants to receive payment for portions of their claim that have
readily available documentation. Additional guidance on partial payments is detailed in 8.2
Partial Payments.
Once all documentation and estimates are submitted and the POL form is complete, the
claimant signs and submits the POL to the Claims Office via mail, email, or in-person, as
arranged with the Navigator. The signed final POL must be received by the Claims Office no
later than 150 days following the acknowledgement of the NOL. The Claims Office Director
may extend the deadlines for POL submission at the request of a claimant for good cause.
The Claims Office will reach out to claimants 120 days after acknowledgement of the NOL to
ensure the claim is on track to meet the deadlines to ensure they are progressing with any
documentation needs and offer support as necessary.
Claimants must make extension requests in writing, either in person, through mail or email,
or submit them via their assigned Navigator. These requests should explain the reason why
the claimant is unable to submit their final POL by the deadline and the proposed length of
the extension. Typically, extensions will be considered in 30-day increments. The Claims
Office may recommend an extension if documentation is insufficient to meet requirements
for the desired amount the claimant is seeking. However, this is ultimately at the discretion
of the claimant. If they prefer to proceed based on the documentation submitted at the time
of the 150-day deadline the Claims Office will make a determination based on the
documentation received. For consideration, an extension request must be received by email
or postmarked no later than 10 days before the submission deadline. Requests for
extensions will generally not be considered earlier than 60 days before the POL submission
deadline.
Evaluating the Proof of Loss
The Claims Reviewer reviews all submitted losses listed on the POL using claimant-provided
documentation, estimates, or calculation methodologies. Claims Reviewers also verify
identity and ownership for each loss and assess the POL for indications of potential fraud.
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Some loss types may be calculated using standard, pre-determined rates when a claimant
does not have adequate documentation but can attest to the loss. The standard rates
offered by the Claims Office may or may not match the exact amount of the loss.
During evaluation, the Claims Reviewer also completes a duplication of benefits review. For
details on this process, see 7.2 Duplication of Benefits Review Process. Based on the
documentation in the record, the Claims Reviewer prepares a summary recommending
payment for review by the Authorized Official.
The Authorized Official then reviews the summary, the recommendation, and the claim
record. After review, the Authorized Official makes the compensation determination and
includes this in the system of record and LOD.
4.3 Letter of Determination
The Claims Office will send a claimant a LOD no later than 180 days after the date on which
a claim is acknowledged. The LOD provides compensation amounts for each of the
claimant’s losses and includes instructions on receiving payment or to begin the appeal
process.
Release and Certification
Claimants have 120 days after the date that appears on the LOD to either accept the
determination by submitting a signed R&C form to the Claims Office or disputing the
compensation amounts by initiating an Administrative Appeal in accordance with the
process defined in 10.1 Administrative Appeals.
22
Claimants must sign the R&C form to
receive payment on their claims. If the claimant does not submit a signed R&C within the
120-day deadline, the claimant will be conclusively presumed to have accepted the
determination.
23
After the 120-day deadline, the claimant no longer has the option to
appeal. In this instance, the Claims Office will reach out to the claimant if the 120-day
deadline has passed and if the claimant still wants the compensation, they will be required
to sign a R&C form to receive payment. The Claims Office Director may extend the deadlines
set forth in this subsection at the request of a claimant for good cause.
24
22
44 C.F.R. § 296.32(b).
23
44 C.F.R. § 296.32(b).
24
44 C.F.R. § 296.32(b).
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Claimants must submit extension requests in writing, in person or through mail or email, via
their assigned Navigator. These requests should set forth a good cause explanation for why
the claimant is unable to submit the signed R&C form by the deadline. The claimant should
also propose a new deadline to submit their signed R&C form. Typically, extensions will be
considered in 30-day increments. For consideration, an extension request must be received
by email or postmarked no later than 10 days before the submission deadline. Requests for
extensions will not be considered earlier than 60 days before the R&C form submission
deadline.
Once a claimant signs the R&C form, they cannot appeal the determination. Completed
claims may be reopened for additional compensation in certain circumstances, such as for
heightened risk reduction measures or a documented decreased value of recently sold real
property. Claimants may also request to reopen their claim if they incurred additional losses
as part of a reconstruction or if the actual costs of repair or replacement exceed the
compensated estimates.
25
See 9.1 Reopening a Claim for more information on reopening a
claim. See 8.2 Partial Payments for more information on the R&C form for partial payments.
By submitting the signed R&C form for final payments, claimants waive their right to bring a
lawsuit against the United States related to a loss suffered as a result of the fire.
26
25
44 C.F.R. § 296.35; 44 C.F.R § 296.21(c).
26
44 C.F.R. § 296.12.
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5. LOSS CATEGORIES AND EVALUATION
5.1 General Requirements
As required by the Act, the Claims Office provides payment for actual compensatory
damages for property, financial, and business losses. Where applicable, New Mexico law will
apply to the calculation of damages.
27
Damages must be reasonable in amount
28
and are
evaluated and verified by a Claims Reviewer using estimation tools and other pricing
received by the Claims Office before final review and determination by the Authorizing
Official. Although all of the major loss types are discussed below, this section is not
exhaustive and if claimants have any questions about a loss not contained in this section,
they should discuss them with their Navigator.
5.2 Property Losses
The Claims Office may compensate damages for an uninsured or underinsured property
loss, documented decreased value of real property, damage to physical infrastructure, costs
resulting from lost subsistence, the cost of reforestation or revegetation not covered by any
other federal program, and any other loss that the Claims Office Director determines to be
appropriate for inclusion.
Real Property
Compensation for damage or destruction of real property and its contents may include the
reasonable cost to repair and/or replace a structure comparable in design, construction
materials, size, and improvements, taking into account post-fire construction costs in the
community where the structure existed before the fire, as well as current building codes and
standards. Compensation may also include the cost of removing debris (see Private Property
Debris Removal under 5.3 Financial Losses) and other cleaning services, restoring and
stabilizing the land, and compensation for any documented decreased value of land.
The Claims Office will reimburse claimants for reasonable costs to repair and/or replace real
property. Claimants should be prepared to provide proof of ownership or financial
responsibility, proof that the property loss was caused by the fire, photos or other
27
Section 104(c)(2) of the Act, Pub. Law 117-180, 136 Stat. 2169; 44 C.F.R. § 296.21(a).
28
44 C.F.R. § 296.21(a).
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documentation of the damage, complete pages of an insurance settlement or denial, and
any repair receipts, invoices, or estimates. Compensation will be valued for each individual
loss line item using receipts and invoices or contractor bids. Valuation estimates may also
be determined using Xactimate software, with satellite imagery to support the estimate,
including the total property size, materials, and building codes and standards. The Xactimate
tool produces estimates similar to a contractor’s estimate using material costs and labor
rates from the region.
If the actual cost to replace the structure with comparable materials and size is higher than
the compensation given to the claimant, the claimant may provide receipts to the Claims
Office demonstrating actual costs. If the documentation reasonably demonstrates that the
new structure is consistent with the previous structure, the Claims Office will pay the
difference between the original determination and the actual cost to replace the property.
The Claims Office retains burn severity mapping and additional geographic information
system (GIS) products which support streamlined verification of property locations and the
impacts associated with the fire and subsequent floods. These maps may support the
verification of property damage due to the fire. The Claims Office will work with claimants to
determine which of the above methodologies (or additional methodologies, as needed) are
most applicable to their claim.
For the total loss of a mobile home, Claims Office staff will work with claimants to obtain the
characteristics (e.g., year, make, model, etc.) as well as any upgrades, towing capacity, and
other features. Claims Office staff may contact local mobile home dealers to ensure
reasonable estimates for the replacement cost of the mobile home or for models no longer
being manufactured or use estimates for a comparable make and model currently on the
market.
If the claimant filed real property losses with their insurance company and received payment
that fully covered those losses, the Claims Office can pay the claimant’s insurance
deductible costs as a separate line item.
Reforestation and Revegetation
As outlined in the Act and implementing regulations, the Claims Office is authorized to
compensate for reforestation and revegetation of the land for losses associated with the fire
and is required to ensure there is no duplication of benefits with any other federal program
such as the Emergency Forest Restoration Program through the Farm Services Agency.
Based on the Act and applicable New Mexico law, the Claims Office may provide
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compensation for the loss of trees: for either the cost to reforest the land or the property
value loss due to the loss of trees.
29
Claimants have three primary ways they can receive compensation for forest or natural
spaces:
• Natural Resources Conservation Service (NRCS) Plan: Receive a Conservation
Restoration Plan from the NRCS and submit it to the Claims Office for payment. NRCS
plans are developed by certified conservation planners and provide a comprehensive
list of which treatments it would take to restore the land to its previous state, with a
breakdown by cost for each treatment. The Burned Area Emergency Response
(BAER) program burn severity maps are used to adjust costs based on amount of
treatment required.
• Private Plan: Submit a private forestry or arborist plan for reforestation and
revegetation to the Claims Office. The Claims Office will evaluate these plans for
validity and cost-reasonableness. The cost for the private forester or arborist to value
the property may be considered an eligible cost as a third-party valuation and the
Claims Office will evaluate the cost for the valuation services, as well as the plans
themselves, for validity and cost-reasonableness based on other plans and the
Claims Office values.
• Claims Office Value: Request compensation directly from the Claims Office for
damaged property. The Claims Office will use the Burned Area Emergency Response
(BAER) program burn severity maps to develop a per-acre rate for
reforestation/revegetation values and does not require a plan or site visit.
If a claimant disagrees with a valuation under the Claims Office value or the NRCS plan, they
may still seek an independent valuation through a private plan or be compensated for actual
costs to perform the restoration.
Claimants who can document income from forestry, the sale of trees, timber practices, or
other actions related to the harvesting of trees from their property before the start of the fire
can request compensation for these practices or other business losses based on the
documentable time before those resources are expected to return. See 5.4 Business Losses
for more information on income related to trees.
29
Specifically, Section 104(d)(4) of the Act, Pub. Law 117-180, 136 Stat. 2169, limits allowable costs for trees
to the “cost of reforestation or revegetation on tribal or non-federal land, to the extent that the cost of
reforestation or revegetation is not covered by any other federal program.”
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The Claims Office may compensate claimants for landscaping losses for ornamental plants
in areas close to the home. Landscaping claims will be evaluated based on verifiable quotes
and per plant costs. The Claims Office will compensate for mature fruit trees based on
locally available replacement costs and sustainable replacements. Landscaping plants and
costs will generally be limited to plantings within 50 feet of the home but will be assessed on
a case-by-case basis.
Decreased Value of Real Property
The Claims Office may award compensatory damages for a documented decreased value of
real property that a claimant owned before the fire if:
• The claimant sells the real property in a good faith, arm’s length transaction that is
closed no later than November 14, 2024, and realizes a loss in the pre-fire value;
30
or
• The claimant can establish that the value of the real property was significantly
diminished long-term as a result of the fire.
31
The Claims Office is currently undertaking a study to determine the impacts of the fire on
real property values and is expected to release results in early 2024.
Homeowners Insurance Increases
The Claims Office may compensate claimants for increases in homeowners insurance
premiums with documentation showing that the increase in the premium is the direct result
of the fire and associated impacts. The insured can request a statement from their
insurance company providing a detailed description of why rates have increased, which
must be provided to the claims office to justify compensation. Additionally, compensation is
available if the claimant made a claim on their homeowners insurance and can demonstrate
rates have increased due to the damages covered by the insurance claim and directly
related to the fire. Verifiable increases in homeowners insurance rates are eligible for
compensation based on the date of renewal after the fire. Compensation is not available for
generalized increases in premiums.
Verifiable increases in homeowners insurance rates are eligible for compensation based on
the date of renewal after the fire. Compensation is not available for generalized increases in
30
44 C.F.R. § 296.21(c)(3)(i).
31
44 C.F.R. § 296.21(c)(3)(ii).
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premiums. If predatory insurance practices are identified, they may be referred, with the
claimant's consent, to the State of New Mexico Office of the Superintendent of Insurance.
Subsistence Resources
The Claims Office acknowledges that multiple resources which were previously used for
subsistence have been lost, resulting in increased cost of living for claimants in the
impacted area. The Claims Office can reimburse a claimant for the reasonable cost of
replacing subsistence resources customarily and traditionally used by the claimant on or
before April 6, 2022, but which are no longer available to the claimant as a result of the fire.
This includes claimants who have lost or will lose the formal or informal income they
generate from their property based on these resources. Examples of these resources
include, but are not limited to firewood, gathering herbs, and/or meat or other animal
products procured through hunting.
The Claims Office may compensate claimants for subsistence losses for the period between
April 6, 2022, and the date when subsistence resources can reasonably be expected to
return to the level of availability that existed before the fire. This may include advanced
payments. Long-term damage awards for subsistence resources will be made to claimants in
the form of lump sum payments.
Claimants should submit any available documentation describing the nature and amount of
subsistence resources they had obtained from their damaged property and any receipts or
invoices for substitute resources procured. To verify the loss of subsistence resources, the
Claims Office can work with claimants to use existing available information (e.g., GIS
mapping, satellite imagery, use photos/videos) to verify the availability and use of
subsistence resources prior to the fire. If documentation is unavailable a declaration or
affidavit may be used.
For each category of subsistence resources, the claimant must elect to receive
compensation for either the increased cost of obtaining subsistence resources from lands
not damaged by the fire or for the cost of procuring substitute resources in the cash
economy.
Personal Property/Contents
The Claims Office may provide compensation for personal property losses including lost or
damaged contents. Claimants are required to show proof of ownership or financial
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responsibility and may be required to provide estimates, inventory, or photos of contents as
evidence of the loss or damages.
In the case of a total loss of an owner-occupied home, the Claims Office will use a standard
valuation approach based on 50% of the full replacement value of the home that aligns with
the private insurance approach to personal property claims. For mobile homes or rented
homes, content replacement is based on a per square foot value based on the market rate
of homes in that area, which aligns with the private insurance industry approach. Claimants
can request compensation above this rate by providing an inventory and additional
documentation for losses.
Animals and Livestock
The Claims Office may compensate for loss of livestock due to the death or forced sale of
livestock as a result of the fire or for the loss of livestock that may have escaped and could
not be recovered, as well as the costs to remove deceased animals after the fire. The value
of livestock will be based on an assessment from the county assessor, federal tax records,
New Mexico Livestock Board shipping certificates, delivery costs for forced sale, or a
standard value derived from five regional livestock commissions or auctions. Livestock
handling equipment, loss, and repair of livestock housing/handling areas and livestock
trailers lost due to the fire may also be compensable losses.
For pets that were lost or died due to the fire, compensation will generally be based upon
the cost to replace the pet from a breeder, pet store, or animal shelter based on the same
breed or animal type. Claimants should be prepared to substantiate that the pet was lost as
a result of the fire through vet records, declarations, or other methods, and any other costs
associated with the pet as a result of the fire, such as obedience or specialized training.
Veterinarian bills for pets or animals injured or with illness associated with the fire can be
reimbursed with proper documentation from the veterinarian showing the treatment
required was a result of the fire. Any projected future losses related to livestock as a result
of the fire, such as decreased reproductive ability due to stress or injury, must be
substantiated by a veterinarian. Examples of this could include a written statement from the
veterinarian, veterinarian records, or bills from veterinarian visits.
Vehicles
The Claims Office may compensate for a variety of personal vehicle types including, but not
limited to cars and trucks, utility vehicles, motorcycles, all-terrain vehicles, farm equipment,
recreational vehicles, trailers, and boats, among others. Compensation will be based on
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industry standard valuation tools specific to each vehicle such as, J.D. Power Guide (NADA),
Kelly Blue Book, or others, based on zip code and/or comparable sales in New Mexico.
Unregistered and uninsured cars are also eligible, with value evaluated based on the
condition.
If the claimant filed their vehicle damage with their insurance company and received
payment that fully covered losses, the Claims Office can pay the claimant’s insurance
deductible costs as a separate line item.
Destruction of Unique Items
The Claims Office may provide compensation for the repair or replacement of specialized
items that can include antiques, jewelry, artwork, collectibles, and items of cultural
significance. Claimants should provide proof of ownership or financial responsibility, as well
as evidence of damages and value including estimates, inventory, appraisals, and photos of
lost items. In the case of a total home loss, claimants will be compensated based on a
percentage of the value of the home. Claimants can submit an inventory of losses,
estimates, appraisals, and photos to justify additional compensation above this calculation
to account for high value items.
If the claimant had an insurance policy for a specific personal property item, filed an
insurance claim for their loss, and received payment that fully covered that loss, the Claims
Office can pay the claimant’s insurance deductible costs as a separate line item.
5.3 Financial Losses
The Claims Office may compensate for financial losses including, but not limited to
increased mortgage interest costs, insurance deductibles, temporary living or relocation
expenses, lost wages or personal income, emergency staffing expenses, debris removal and
other cleanup costs, costs of reasonable heightened risk reduction, premiums for flood
insurance, and any other loss that the Claims Office Director determines to be appropriate.
32
Small Business Administration and Disaster Recovery Loans
Claimants/borrowers who were impacted by the fire may request compensation from the
Claims Office for re-payment of the principal amount and accrued interest for Small
Business Administration (SBA) loans or any other recovery loans obtained between April 6,
2022, and the loan payoff date. Interest eligible for re-payment is defined as interest that
32
Section 103(4) of the Act, Pub. Law 117-180, 136 Stat. 2169; 44 C.F.R. § 296.21(5)(e).
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begins accruing on the loan origination date and ends on the date the claimant/borrower
receives compensation for the loan or the losses for which the loan was obtained from the
Claims Office. The SBA loan reimbursement program requires claimants/borrowers to use
their compensation award to repay their SBA loan in full upon receiving the compensation.
There are two options available for SBA loan repayment through the Claims Office:
1. The claimant/borrower can authorize the Claims Office in writing to pay the SBA
directly on behalf of the claimant. If selecting this option, claimants/borrowers can
receive reimbursement for interest paid on the loan at the same time as the loan
payoff.
2. The claimant/borrower may request that the Claims Office compensate the
claimant/borrower directly for their SBA loan. The claimant/borrower is required to
then pay off the loan, including interest, to the SBA, immediately upon receipt of the
compensation. Interest will continue to accrue until the loan is paid off, but any
interest accrued on the loan after the claimant has received their payment from the
Claims Office is the financial responsibility of the claimant. Claimants should repay
their loan immediately upon receiving their Claims Office compensation to prevent
any additional interest from accruing and to forestall SBA actions for repayment of
the loan.
Flood Insurance
The Claims Office may compensate for flood insurance premiums in two different ways –
reimbursement for policies already purchased, or placement of new policies purchased
directly by the Claims Office that offer up to five years of coverage. Claimants are not eligible
for flood insurance through the Claims Office if they were previously required to purchase
and maintain flood insurance before the fire. Examples of this could include claimants that
were subject to a mandatory purchase requirement before the fire as a result of a previous
FEMA disaster grant or through their federally-backed mortgage lender if located in a Special
Flood Hazard Area (SFHA). If claimants had flood insurance coverage in place prior to the fire
they are not eligible for Claims Office funding for the coverage post-fire.
Claimants with properties located in NFIP participating communities in Mora or San Miguel
counties are presumed to have a reasonable fear of heightened flood risk (excluding
claimants in these counties that were required to hold flood insurance before the fire).
Claimants located in non-participating NFIP communities are not eligible for coverage
through the NFIP, although they may be eligible for a reimbursement of a private flood
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insurance policy through the Claims Office. The following are non-participating communities
in proximity to the fire and subsequent flooding:
• Village of Eagle Nest (Colfax County)
• Village of Pecos (San Miguel County)
• Village of Mosquero (San Miguel/ Harding County)
• Village of Wagon Mound (Mora County)
• Picuris Pueblo (Taos County)
• Taos Pueblo (Taos County)
Claimants with property outside of Mora and San Miguel Counties but in proximity to the
burn scar may be eligible, but will need to demonstrate a reasonable fear of heightened risk
of flooding on a case-by-case basis. This could include documentation, such as photos or
evidence of damages, that a claimant’s property experienced flooding or may experience
future flooding as a result of the fire due to hydrophobic soils, or other changes to the
landscape.
If the claimant filed an insurance claim under an existing flood insurance policy for losses
resulting from the fire and received payment that fully covered those losses, the Claims
Office can pay the claimant’s insurance deductible cost as a separate line item.
Eligible claimants have the following two options for securing flood insurance through the
Claims Office:
1. Five-years of National Flood Insurance Program (NFIP) coverage, with premiums paid
directly by the Claims Office:
33
Eligible claimants will receive up to five years of NFIP coverage which will be
renewed on an annual basis. Claimants will receive annual renewal notices
directly from the NFIP.
The Claims Office must pay for all flood insurance premiums by the statutory
deadline of May 31, 2024. Because of this deadline, Claimants should submit
all requests for NFIP coverage, by April 1, 2024, to allow time for processing.
33
Section 104(d)(4)(C)(viii) of the Act, Pub. Law 117-180, 136 Stat. 2169, requires that a premium for flood
insurance must be required to be paid on or before May 31, 2024, to be eligible for compensation.
Recognizing that the flood risk from fire will extend beyond May 31, 2025, the Claims Office coordinated with
NFIP to allow for an extended flood insurance policy term available only for properties affected by the fire that
provides coverage for up to five years.
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Note that this deadline is distinct from the deadline to submit a NOL or
amended NOL.
Claimants may submit claims for the deductible of any losses incurred before
the deadline to file a NOL on November 14, 2024, or an amended NOL by
November 14, 2025. Thereafter, claimants will be responsible for paying the
deductible on any losses incurred under their flood insurance policies.
Per the Claims Office Director, claimants with properties in San Miguel and
Mora counties have a reasonable fear of heightened flood risk as a result of
the fire. Claimants must prove they own or rent property in the area impacted
by the fire or post-fire flooding and demonstrate that they have a reasonable
fear of heightened flood risk. Claimants may be eligible for flood insurance,
whether or not they claim losses related to property.
The Claims Office will purchase new NFIP policies for eligible claimants with a
reasonable fear of heightened flood risk who did not have, and were not
required to have, flood insurance prior to April 6, 2022 (e.g., required as part
of a mortgage requirement or obtain and maintain requirement stemming
from a previous disaster, or voluntarily purchased prior to the fire).
Coverage amounts offered by the Hermit’s Peak/NFIP policies:
o Homeowners can be insured up to $250,000 for the structure and up
to $100,000 for building contents.
o Residential renters can insure contents up to $100,000.
o Non-residential property owners can insure a structure for up to
$500,000 and its contents for up to $500,000.
o Non-Residential renters can insure contents up to $500,000.
o Deductibles will be $2,000 for buildings and $2,000 for contents.
Claimants can obtain separate policies for multiple structures on a property
provided the structures are insurable under the NFIP
34
and have a
replacement cost value greater than the deductible ($2,000).
Eligible claimants can only receive the five years of NFIP coverage through the
Claims Office and not through a private or Write-Your-Own (WYO) company.
Claimants will receive all communications and information regarding the
policy directly from the NFIP, including the declarations page and annual
renewal notices.
34
For more information on general building eligibility, consult the NFIP Flood Insurance Manual: Current Flood
Insurance Manuals | FEMA.gov.
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If the current policy holder sells the insured structure during the five-year time
period, the in-force policy can be transferred to the new owner.
2. Claimants are eligible for reimbursement of a previously purchased policy (purchased
after April 2022) if they have a reasonable fear of heightened flood risk due to the
fire:
35
o Reimbursement of an NFIP policy, purchased either from a participating WYO
NFIP company (or multiple policies for multiple structures on a property), or
from the NFIP Direct program;
o Reimbursement of a policy purchased through the private insurance market
(or multiple policies for multiple structures on a property);
o Reimbursement for the purchase of both NFIP and private insurance flood
policies if they have a combination of the two.
Claimants seeking reimbursement for a previously purchased policy must have paid the
premium for the policy by May 31, 2024, and the payment must have been due on or before
May 31, 2024, to be eligible. The claimant can file a NOL for the reimbursement any time
before the deadline to submit a NOL (November 14, 2024) or an amended NOL (November
25, 2025).
Donations to Survivors of the Fire
The Claims Office will compensate claimants for the cost of merchandise, use of equipment,
or other non-personal services valued at cost, directly or indirectly donated to survivors of
the fire between April 6, 2022, and November 14, 2022. Compensation is not available for
cash donations or time spent or hours volunteered. Donations from individuals or non-profits
between April 6, 2022, and November 14, 2022, are not considered a duplication of
benefits and do not need to be disclosed to the Claims Office.
Please refer to Hosting Fire Evacuees under Relocation and Evacuation for more detail on
donations from hosts.
35
44 CFR § 296.21(e)(2).
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Heightened Risk Reduction
Claimants are eligible for the reimbursement of reasonable costs incurred to implement
measures to reduce the risk of wildfire, flood, or other natural hazards in and around the
burn scar to the level of risk prevailing before the fire.
Claimants seeking risk reduction compensation must incur the costs for any risk reduction
project(s) by November 14, 2025.
36
The request can be for risk reduction activities already
completed by the claimant, or the claimant may request assistance from the Claims Office to
determine the most appropriate risk reduction options for the property. The Claims Office
may provide risk reduction information for certain types of claims, such as home
reconstruction and damage incurred from post-fire flooding, even if claimants do not include
risk reduction on their NOL, to ensure claimants are aware of opportunities to reduce risk to
their property. Risk reduction is a voluntary activity for which claimants may receive
compensation in addition to their other losses.
To receive compensation for risk reduction activities, the claimant must submit a NOL to the
Claims Office on or before November 14, 2024. The NOL can be amended to include risk
reduction no later than November 14, 2025.
Navigators will discuss risk reduction opportunities and the process for receiving risk
reduction reimbursement or compensation. To receive advanced payments for risk reduction
projects, claimants will be responsible for providing a risk reduction proposal as an
attachment to their POL. The risk reduction proposal must include a short description of
work, an itemized list of cost estimates, and a project schedule with an estimated date of
completion. Claims Office staff may assist claimants in completing their proposal, but it is
ultimately the claimant’s responsibility to complete and submit the proposal to the Claims
Office for consideration. To verify completion of the risk reduction project, the Claims Office
will require the claimant to document that the project was completed in alignment with the
originally proposed scope of work. This documentation could include a signed affidavit from
the claimant and photos of the completed activity. Depending on the scope and cost of the
risk reduction activities, the Claims Office may also conduct a site visit to verify the
completion of the risk reduction activity in accordance with the approved proposal.
For examples of eligible project types and more information on the procedures related to
risk reduction funding, please refer to the Risk Reduction section of this document.
36
Section 104(d)(4)(C)(vii) of the Act, Pub. Law 117-180, 136 Stat. 2169.
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Private Property Debris Removal
Claimants may be eligible for compensation for private property debris removal costs not
eligible under FEMA PA or for properties that are outside FEMA PA’s declared areas.
Claimants should identify the specific properties or areas of properties where private
property debris removal activities will take place or have occurred. The claimant does not
need to wait for Claims Office approval to start work. Compensation may include the cost of
removing hazardous materials, vegetative debris, construction and demolition debris, sand,
mud, silt, gravel, rocks, boulders, white goods, and vehicle wreckage deposited or damaged
by the fire or cascading impacts.
Compensation may be based on reasonable actual costs if the claimant can provide
substantiating documentation. Claimants must provide reasonably available documentation,
including, but not limited to invoices, receipts, pre- and post-removal photographs,
contracts, or estimates.
If the work was completed by the claimant, the Claims Office can calculate compensation
amounts for the labor based on the number of hours spent on debris removal using a
standard rate. Claimants can also seek compensation for any contracted work, equipment
rented, transportation costs, or disposal fees associated with the debris removal by
providing supporting documentation such as receipts or invoices.
Relocation and Evacuation
Claimants may be eligible for evacuation costs based on the following evacuation dates
(beginning of evacuation date – residents allowed to return date):
Mora County: April 22, 2022 – June 26, 2022
San Miguel County: April 10, 2022 – June 22, 2022
Colfax County: May 26, 2022 – June 1, 2022
The evacuation dates listed above were provided by local county authorities (Mora County
Sheriff’s Office, San Miguel County Emergency Manager, and Colfax County Emergency
Management) as the period of evacuation during which claimants may have incurred costs
and/or losses associated with evacuation. Claimants are eligible to receive compensation
for evacuation costs regardless of whether they incurred those costs as a result of a
mandatory or voluntary evacuation. Compensation for evacuation costs outside of these
dates may be available for those unable to return to their homes or with ongoing needs,
including access issues, ongoing flooding or safety concerns.
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Examples of possible costs include but are not limited to the expenses listed below:
Travel Expenses During Evacuation Period
Expenses incurred for increased travel or increased commuting during the evacuation period
and immediate recovery period, April 6–August 31, 2022, that would otherwise not have
been incurred, may be eligible for compensation.
Lost Wages and Unscheduled Leave During Evacuation
Claimants who lost wages as a result of the fire during the period of April 6–August 31,
2022, may be eligible to be compensated for those wages. Lost wages may have occurred
due to required or voluntary evacuations, road closures or access challenges, business
closures or reduced hours of operation due to impacts from the fire response, or
unscheduled leave taken during the fire (employer charged the claimant for the time used).
The Claims Office will not reimburse claimants for time taken off from work outside of the
April 6–August 31 timeframe, including time taken off for claims preparation.
Food Expenses During Evacuation
Claimants may be eligible for reimbursement for food costs associated with the evacuation.
Eligible food costs may include the meal costs incurred during the time the claimant was
evacuated or any food loss the claimant experienced as a result of evacuation or loss of
power. The claimant can choose to be compensated for these food costs based on
estimates or actual costs that can be substantiated with supporting documentation, or
claimants can accept the standard rate calculation provided by the Claims Office.
Items Purchased During Evacuation
Claimants that had to evacuate may be entitled to reasonable compensation for either the
rental or purchase of necessary items, since it may not have been possible to take their
possessions with them. Claimants must provide documentation, such as receipts or
invoices, or estimates for items of similar kind and quality.
Fees for Storage Units or Storage of Personal Property
Costs of renting storage units for property during evacuation or subsequent displacement
may be eligible for a period of up to six months and may be extended on a case-by-case
basis. Claimants must provide documentation of their rent payments for compensation.
Rental of Vehicles or Equipment
The Claims Office may reimburse claimants for costs related to the rental of vehicles or
equipment to support the movement of livestock, property, people, or other items during
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evacuation and its immediate aftermath. Claimants must provide rental receipts or
estimates from the rental company for compensation.
Hosting Fire Evacuees
The Claims Office may reimburse individuals for some costs incurred for hosting evacuees
as a donation.
37
Eligible donation costs associated with hosting evacuees may include
increased utility usage and the increased consumption of household goods. Host time and
personal services are not eligible for compensation.
The evacuee’s residence must have been uninhabitable or inaccessible due to restrictions
placed by federal or state, local, tribal, or territorial governments (i.e., mandatory evacuation
orders), or due to access impediments or utility outages disrupting the functionality of the
residence.
Hosts will be required to submit a NOL to be compensated.
Temporary Housing Expenses
The Claims Office may compensate homeowners whose homes were destroyed by the fire
for rent or other costs associated with temporary housing as long as the homeowner can
demonstrate that active measures are being taken to move forward with the rebuilding of
the structure (e.g., applies for a building permit, pays an architect to draw plans, does site
preparation work, awaiting compensation to rebuild). Compensation for temporary housing
can be made as reimbursements or in advance as appropriate.
The Claims Office may compensate renters whose residences were destroyed for up to 12
months to compensate for the difference between their prior and current rent, based on
comparable housing size and type. The Claims Office can extend compensation for rent
payments for good cause on a case-by-case basis (e.g., timing of rebuilding efforts, inability
to find suitable quarters, unusual circumstances, personal hardships caused by the fire,
etc.). Renters who evacuated but returned to their residence may be eligible for evacuation
and relocation costs during the time they were not able to live in their permanent residence.
Claimants may also be eligible for compensation for costs associated with having
uninhabitable homes, either owned or rented, due to damage or evacuation. Claimants must
choose either compensation for costs associated with temporary housing or for
37
Expenses eligible for donations are identified in 44 C.F.R. § 296.21(e)(4) and are limited to the cost of
merchandise, use of equipment or other non-personal services, and are valued at actual cost.
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uninhabitable home costs but cannot claim both. The Claims Office can compensate for
mortgage costs, taxes, homeowner association fees, and other costs that claimants may be
still required to pay for homes or rentals that they could not inhabit during an evacuation.
This compensation may also be available for second homes that homeowners could not
access or use as vacation homes or rentals during the fire or immediate recovery.
Compensation will only be provided for the timeframe the home or rental could not be
accessed and must align with community evacuation dates.
Medical Expenses
Claimants can submit a claim for medical expenses from the fire that include, but are not
limited to doctor visits, hospital stays, mental health treatment, insurance deductibles and
co-pays, pharmaceuticals, transportation expenses related to medical care, and other fees
and expenses. There are two claims under this section with specific regulatory guidance, as
outlined below.
Psychological Care
The Claims Office may reimburse claimants for reasonable out-of-pocket treatment costs for
mental health conditions, including addiction treatments, resulting from, or worsened by the
fire. Compensation is available from the Claims Office for treatment between April 6, 2022,
and November 14, 2024. Conditions identified before November 14, 2024, may be eligible
for advanced payments past this date with documentation showing treatments are ongoing
and identifying the period during which continued treatment will be required.
Medical Care for Personal Injury
The Claims Office Director recognizes that claimants may have suffered personal injury as a
result of the fire or subsequent events related to the fire and authorizes compensation as
follows. The Claims Office may reimburse claimants for reasonable out-of-pocket treatment
costs for personal injuries resulting from the fire. The Claims Office may provide
reimbursement for treatment received between April 6, 2022, and November 14, 2024.
Conditions identified before November 14, 2024, may be eligible for advanced payments
past this date with documentation showing treatments are ongoing and identifying the
period during which continued treatment will be required.
Claimants must provide documentation to prove the medical expenses are directly related to
injuries resulting from the fire. This supporting documentation must include a note from a
medical professional. The medical care must be provided by a licensed provider.
Documentation for costs associated with the care or specific injuries may include receipts
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for the required hospital stays, deductibles and co-pays paid by the claimant, and costs
associated with prescriptions or medical equipment.
Lost Interest Income / Interest Paid
The Claims Office may determine that a claimant is eligible for compensation for any lost
interest income, or any interest paid, if the loss occurred or interest accrued due to costs
incurred to replace or repair damages from the fire.
Lost Interest Income on Funds Withdrawn from Personal Accounts
If a claimant lost interest income on funds withdrawn from personal interest-bearing
accounts (e.g., savings, certificates of deposit, etc.) due to using those funds to recover from
the fire and associated impacts, the Claims Office may determine that the claimant is
eligible to be reimbursed for that lost interest income from the date of withdrawal of funds
until compensation is awarded by the Claims Office. Compensation will not be awarded for
speculative claims.
Interest Paid on Credit Card Charges or Personal Loans Obtained for Repairs
If a claimant obtained a personal loan or incurred charges on a credit card, the claimant
may be able to claim compensation for interest paid on that portion of the personal loan or
credit card charges that were used for costs related to the fire. Compensation may be
available for interest fees from the date such loan or charges were incurred until the date
compensation under the Claims Office is awarded.
5.4 Business Losses
The Claims Office may provide compensation for losses related to a claimant’s business,
including, timber, crops, and other natural resources; business interruption losses; overhead
costs; employee wages for work not performed; and loss of business net income. Informal
businesses are also eligible for compensation for crafts, trades, subsistence, or the arts, but
must provide documentation to show income received from the informal business.
Claimants with business losses should provide copies of their income tax returns. If they
decline to submit them, the Claims Office may deny compensation.
38
38
44 C.F.R § 296.30(a).
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Business Interruption
The Claims Office will evaluate each business claim individually, using the method that best
applies to the situation to determine the time period to calculate business interruption
losses. The method used will be based on what is most reasonable for the type of business,
taking into account various factors such as whether the business is retail or product based.
If the business has seasonal variations, a comparable time frame should be used, (e.g., the
same month for the past three years as opposed to every month during the previous three
years).
If a claimant seeks compensation for business interruption for actual damages for a set
period of time (e.g., two weeks following the fire), the loss may be calculated based solely on
the past history of the business, and the specified period of time. Future increases in
income attributable to the fire need not be taken into account. However, if the claimant is or
will be requesting loss of future projected business earnings, then the subsequent increase
will be taken into account when considering projected loss.
Start-up Businesses
The Claims Office will consider a number of factors when evaluating business loss claims for
a start-up business, including if there were business plans or loans secured, inventory
purchased, present and past income attributable to the business, and contracts in place for
purchase or distribution rights. Where the loss is entirely speculative because there is no
revenue history and a reasonable expectation of profits cannot be demonstrated, the Claims
Office cannot compensate claimants for lost profits or the value of their lost time. The
Claims Office can compensate claimants for physical damage to the business assets or
legitimate continuing business expenses such as rent and utility services if those expenses
have not been previously compensated under other loss types.
Discontinuing Expenses
When calculating both short-term and long-term business losses, the Claims Office will
deduct clearly identifiable discontinued expenses, such as labor costs not paid, or the cost
of goods/materials not purchased.
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Future Business Losses
The Claims Office can compensate for projected future business losses and will evaluate
them on a case-by-case basis depending on the nature of the loss, documentation available,
and projected length of future losses.
5.5 Government and Private Non-Profit Losses
The State of New Mexico; local and tribal governments, including special districts under New
Mexico state law; and certain private non-profit organizations
39
that suffered losses in the
declared areas are required by regulation to file a request for public assistance with FEMA
PA for damaged facilities, work performed, and costs incurred as a result of the fire and
subsequent flooding. Compensation will not be awarded by the Claims Office for losses or
costs that are eligible under FEMA PA.
40
Entities that must submit a request for public assistance with FEMA PA before claims can be
assessed by the Claims Office include:
• The State of New Mexico
• Tribal Nations
• Local governments
o Counties
o Municipalities, cities, towns, boroughs, and townships
o Local public authorities
o School districts
o Intrastate districts
o Councils of governments (regardless of whether incorporated as nonprofit
corporations under State law)
o Regional and interstate government entities
o Agencies or instrumentalities of local governments
o State recognized tribes
o Special districts established under state law (including acequias)
• Private non-profit organizations
41
o Critical (those that provide utility, emergency, medical and education services)
39
Public Assistance Program and Policy Guide, Version 4, 2020. Pages 43-47.
40
44 CFR § 296.21(f)(2).
41
Public Assistance Program and Policy Guide, Version 4, 2020. Pages 45-47.
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o Non-critical (those that provide certain noncritical, essential social services)
PA and the Claims Office will review RPAs and projects to identify ineligible applicants or
costs under PA. For ineligible applicants or costs, PA will issue a memo determining
ineligibility. To ensure PA applicants retain their appeal rights for any ineligible costs under
PA, the Claims Office will accept claim submittals for costs being appealed, however, the
Claims Office will take no action to implement any determination until PA issues its decision
on the appeal to avoid duplication of funding. Costs that PA applicants decide to submit to
the Claims Office will be subject to review, eligibility assessment, and requirements under
the Act. To begin the claims process, an authorized official of the governmental entity must
submit and sign the NOL.
The Claims Office may compensate all or a portion of the costs if it determines the claim is
reasonable and allowable based on all available information and documentation provided by
the claimant. Compensable claims for governmental entities are limited to eligible losses
authorized by the Act.
The Act allows payment of actual compensatory damages that are reasonable.
42
Costs will
be evaluated for reasonableness using estimation tools and provided documentation.
Ineligible Costs under FEMA PA
The items listed below are identified by FEMA PA policy as ineligible costs. These costs do
not have to go through the FEMA PA process. Claimants may submit claims for these losses
directly to the Claims Office for evaluation:
• Loss of tax revenue/loss of government revenue
• Tax assessments to re-assess real property values
• Flood insurance premiums
• Principal or interest on recovery loans
• Compensation for damaged facilities outside of PA declared areas including the loss
of cultural facilities, and risk reduction
• Compensation for cosmetic or aesthetic vegetation in public parks or facilities
• Straight-time for budgeted permanent employees or budgeted part-time or seasonal
employees
42
44 C.F.R 296.21(a).
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• Costs incurred by privately-owned tribal corporations
43
Fire-Related Staffing
Costs ineligible for FEMA PA but associated with emergency staffing due to sustained
response and recovery efforts directly related to the fire and subsequent flooding may be
eligible for compensation by the Claims Office. Governmental entities will be required to
submit a NOL and adhere to procedural requirements discussed below for completing a
claim.
Claimants can submit labor costs incurred for certain types of employees performing claim-
related work and functions necessitated by the fire and subsequent flooding and not eligible
under FEMA PA to the Claims Office. Labor hours must be clearly associated with a specific
claim or disaster-related activity.
Claimants need to submit the following to support labor costs claimed (not an all-inclusive
list):
• For each personnel, claimant must provide:
o Name
o Job title and function
o Type of employee (e.g., full-time exempt, full-time non-exempt, part-time,
temporary, etc.)
o Pay rates and fringe benefit rate
o Days and hours worked
o Description of work performed with sample of daily logs/activity reports.
• Summary of actual costs
• Timesheets (representative sample required when requested)
• Fringe benefit calculations
• Pay policy
The claimant’s labor policy or payroll policy should discuss the types of labor and the
breakdown of personnel responsibilities. The Claims Office will review the policies to
determine eligibility under the Act. Overtime for exempt, budgeted employees is ineligible
unless otherwise allowed by claimant’s labor policy already in place before the fires.
43
44 C.F.R. §§ 206.201(h).
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Other Federal Agency Grants Funding Match
The Claims Office cannot fund the cost share/match requirement for a recipient’s portion of
grants funded by another federal agency, including grants for capacity building or
preparedness.
44
Acequias
Acequias recognized under New Mexico law as political subdivisions (community acequias)
that suffered losses in the affected or declared areas are required to file a request for public
assistance with FEMA PA for damage to eligible facilities, work performed, and costs
incurred as a result of the fire.
45
Compensation will not be awarded under the Act for losses
or costs that are eligible under PA. Costs that are found ineligible by FEMA PA can be
referred to the Claims Office by an acequia’s authorized representative for consideration.
The Claims Office requires that privately owned (non-community) acequias, or acequias not
recognized under New Mexico law as a political subdivision, submit a request for public
assistance to FEMA PA first for an eligibility determination prior to submitting a NOL to the
Claims Office.
The Claims Office may compensate for damages including: the cost of debris clearance and
removal; removal of hazardous trees, materials or soils; erosion assessment and treatment;
temporary stabilization; repairs or restoration of damaged facilities; and replacing damaged
contents of structures.
Acequias seeking compensation for costs incurred as a direct result of the fire may be
compensated based on actual costs if substantiating documentation is provided to support
the claim. In the absence of any formal documentation, claimants must provide reasonably
available documentation, which may include, but is not limited to historical records, meeting
minutes, written affidavits signed by witnesses and authorized representatives, and
photographs and/or videos to substantiate the claim.
44
2 C.F.R § 215.23(a)(2).
45
Acequias, or community ditches, are recognized under New Mexico law as political subdivisions of the state.
Many of the state’s acequia associations have been in existence since the Spanish colonization period of the
17th and 18th centuries. Historically, they have been a principal local government unit for the distribution and
use of surface water. Link: Acequias/Community Ditches: Interstate Stream Commission (state.nm.us).
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In restoring or repairing acequias, organizations should be aware of all local and state
regulations and requirements related to work performed.
Cascading Impacts for Government Claimants
Costs incurred by governmental entities addressing cascading impacts and ongoing impacts
as a result of the fires such as flash floods, mud and debris flows in the affected areas
continue to be assessed by FEMA PA on a case-by-case basis. Costs associated with
necessary services required to sustain response and recovery efforts directly related to the
fire and subsequent flooding may be eligible for compensation by the Claims Office as long
as they are directly attributable to the fire.
Governmental entities may submit a NOL for cascading impacts and must submit supporting
documentation to justify the claim.
5.6 Future Financial Losses
Due to the long-term effects of the fire, in some specific cases future financial losses may be
compensable. The Claims Office will evaluate these types of claims on a case-by-case basis
depending on the nature of the damages and type of loss. Documentation provided must
include how the loss directly relates to the fire and the proposed period of time for which
compensation is being requested into the future.
Future losses are limited to costs directly associated with allowable damages under the Act.
Advanced payments may be available for out-of-pocket expenses for extended treatment of
mental health conditions, and loss of earnings. These costs must be directly caused by the
fire; the burden of proof justifying costs as necessary and reasonable remains with the
claimant.
46
The Claims Office will evaluate these claims using the following method:
• A claimant can file a NOL for a future loss claim with supporting documentation
clearly identifying the cause of the future loss and the factors used to quantify the
costs being claimed.
• The claimant can delay filing a NOL until closer to the period during which the
projected losses are anticipated to occur. This will enable more accurate
documentation for the claim to be accumulated over time.
46
44 CFR 296.30(a).
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5.7 Reimbursement of Expenses to Submit a Claim
The Claims Office will reimburse claimants for the reasonable costs they incur in providing
documentation requested by the Claims Office. This includes appraisals or other third-party
opinions that the Claims Office requests or deems necessary to determine the amount of
the claim. The Claims Office will not reimburse claimants for the cost of appraisals or other
third-party opinions not deemed necessary by the Claims Office.
47
The Claims Office will provide a lump sum payment for incidental expenses incurred in
claims preparation to all eligible claimants. The Claims Office will automatically add this
lump sum payment onto the claimant’s final payment amount, and it will be listed as a line
item titled “claims preparation expenses” on the final LOD. The amount of the lump sum
payment will be at minimum, the greater of $150 or 5% of the total compensatory damages
and insurance proceeds recovered by the claimant (not including the lump sum payment or
monies reimbursed for the purchase of flood insurance). This lump sum payment for claims
preparation expenses is limited to, and will not exceed, $25,000. Subrogation claimants and
claimants who only submit a claim for flood insurance premium(s) will not be eligible.
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5.8 Exclusions
Punitive Damages and Claimant Costs
Claimants may not recover from the Claims Office: punitive damages, statutory damages,
interest on claims, and adjusting costs incurred by an insurer or other third party with the
rights of a subrogee that may be owed by a claimant as a consequence of receiving an
award.
49
Noneconomic Damages
Noneconomic damages, including pain and suffering, annoyance, and emotional distress
are not compensable under the Act.
50
47
44 C.F.R. § 296.31.
48
44 C.F.R. § 296.31(b).
49
44 C.F.R. § 296.31(b).
50
44 C.F.R § 296.21(b).
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Attorney or Agent Fees
Fees paid to attorneys or agents to assist claimants in submitting a claim to the Claims
Office are not eligible for compensation.
The Act provides that no attorney or agent (such as a public adjuster) may charge for their
services in making a claim under the Act in excess of 20% of the amount of any payment on
a claim under the Act.
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No amount of this fee is eligible for reimbursement.
Loss of Non-Proprietary Uses
The Claims Office cannot compensate individuals for the loss of interests or conveniences
that are not derived from the individual’s ownership or leasehold rights in the damaged
property. Examples of such losses that are not compensable include claims for increased
housing costs by renters whose monthly rate or term of tenancy was not guaranteed by an
existing lease at the time of the fire.
Lost Interest on Income from Lost Opportunities or Speculation
The Claims Office will not reimburse a claimant for income that may have been gained in a
speculative market or from a potential opportunity lost because of the fire. Only monetary
damages that are real, substantial, and just, for actual or real losses, are compensable.
52
51
Section 104(j)(1) of the Act, Pub. Law 117-180, 136 Stat. 2169; 28 U.S.C. § 2678.
52
44 C.F.R. § 296.31(b).
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6. RISK REDUCTION
Risk reduction activities decrease the impact of disasters and potential hazards. The Claims
Office may compensate claimants for reasonable efforts to reduce increased risks to pre-fire
levels. Costs for risk reduction activities must be incurred no later than three years after the
rule was first promulgated which is November 14, 2025,
53
and risk reduction projects must
be completed by the following year, November 14, 2026. Activities for risk reduction funded
within this three-year period may be ongoing, but additional funding will not be provided
beyond what is incurred within the eligible period.
Risk reduction funding differs from other forms of compensation available under the Act
because the Claims Office must verify that the claimant completed the funded risk reduction
activities within the timeframe set by Claims Office policy. There is no minimum or maximum
award amount for risk reduction projects.
6.1 Eligibility for Risk Reduction
Claimants may be eligible for risk reduction compensation if the risks facing their property
(e.g., post fire flooding) have increased because of the fire. Risk reduction activities may be
completed at the homeowner/parcel-scale (private property) or at the community-scale (land
and public facilities). Risk reduction projects on multiple parcels of private land (e.g., a
neighborhood organization) also may be eligible for compensation for risk reduction. The
Claims Office will evaluate activities in the context of holistic watershed restoration and
mitigation efforts, so that, to the extent feasible, homeowner/parcel-scale and community-
scale activities support holistic risk reduction for the community. The Claims Office expects
most risk reduction claims to be for work that is not yet started or completed. Claimants that
completed risk reduction projects immediately after the fire to address post-fire flooding
risks can ask the Claims Office to review completed projects to determine whether risk
reduction compensation is appropriate.
The suggested eligible project types for homeowner/parcel and community-scale actions
were informed by FEMA’s Hazard Mitigation Grant Post-Fire Program,
54
FEMA guidance on
53
Section 104(d)(4)(C)(vii) of the Act, Pub. Law 117-180, 136 Stat. 2169.
54
Hazard Mitigation Grant Program Post Fire | FEMA.gov.
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protecting homes from flooding,
55
as well as the Insurance Institute for Building and Home
Safety (IBHS) Wildfire Prepared Home program.
56
The Claims Office will encourage claimants to consult their local County Planning & Zoning
and Code Enforcement offices. Claimants are expected to comply with local building codes
and secure the necessary construction permits. Claimants may be asked to provide
information regarding any applicable construction permits obtained for their risk reduction
projects.
6.2 Eligible Work- Homeowner/Parcel Scale Actions
The following list provides examples of risk reduction activities on private property that may
be eligible for Claims Office compensation. The Claims Office will evaluate all activities
individually to determine eligibility. Actions which may result in impacts beyond the parcel
level will be evaluated so that risk reduction activities do not result in unintended effects to
neighboring properties and ultimately contribute to a larger vision for holistic watershed
restoration and community mitigation. Risk reduction projects must reduce the risk from a
natural hazard heightened by the fire to pre-fire levels.
Wildfire Risk Reduction
• Restoration and reforestation of fire-adapted vegetation types within 50 feet of the
home
o Reseeding ground cover
o Planting grass to prevent spread of noxious weeds
o Mulching with straw or chipped wood
• Vegetative thinning, hazardous tree removal, and noxious weed abatement within 50
feet of the home
• Replace damaged roof, or for rebuilds, install a new roof, with a Class A fire rated roof
and ignition resistant materials such as asphalt shingles, metal roofs, and masonry
tiles that include bird stops to prevent debris pile up
• Enclose or protect eaves and soffits on the exposed underside with noncombustible
or ignition-resistant materials or 2-inch lumber (e.g., 2”x4” or 2”x6”, NOT plywood)
55
Protect Your Home from Flooding Low-cost Projects You Can Do Yourself (fema.gov).
56
Wildfire Prepared Home, a Program of IBHS – Resources.
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• Install or replace vents with either (1) corrosion-resistant and ember- and fire-
resistant materials (such as galvanized steel with intumescent coating); OR (2)
noncombustible materials and covered with 1/8-inch or finer metal mesh
• Install noncombustible gutters and metal gutter guards
• Create and maintain defensible space around a structure to eliminate fuels and act
as a buffer to help lower the chance fire will spread to the structure; this may include
techniques for noxious weed abatement and vegetative thinning
• Repair damaged decks or install replacement decks with noncombustible materials
such as metal and install noncombustible, corrosion-resistant 1/8-inch or finer mesh
around the outer edge of the deck from the walking surface to the ground to prevent
ember intrusion
• For damaged or destroyed accessory structures or outhouses, ensure these
structures meet the same construction standards as the primary residence; as
recommended by the Insurance Institute for Building and Home Safety, no more than
three of these structures should be located within 30 feet of the home
• Ensure all exterior windows, skylights, and glass openings within doors are
multipaned with a tempered outer pane or has glass blocks (windows only)
• Inspect exterior doors and cladding for combustibility or for damaged or destroyed
doors, replace with noncombustible materials, including storm doors and cladding
• Inspect and install ignition resistant siding such as rock wall, stucco or cement board
• Replace damaged or destroyed shutters with noncombustible materials
Post-Fire Flooding Risk Reduction
Temporary flood protection measures which may include:
• Sandbags
• Portable flood gates or shields
• Inflatable floodwalls
• Flood skirts
Installation of flood protection measures for sewer or utility systems which may include:
• Well water contamination prevention to include testing and repair
• Anchor fuel tanks
• Install drain plugs for basement floor drains to prevent sewer backups or install
sewer backflow valves for all pipes entering the building
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• Seal foundation and basement walls with mortar and masonry caulk or hydraulic
cement
• Install a sump pump to pump groundwater away from the home
• Private property culvert repair
• Integral ground stabilization treatments to culverts and pipes
• Reduction of impervious surfaces to reduce stormwater runoff; options could include
rain gardens, vegetated swales, or pervious pavements that absorb water
• For damaged or destroyed homes, use of flood-resistant building materials for
rebuilding or repairing homes, which may include:
o Replace wooden floorboards and carpets with ceramic tile, vinyl, rubber, or
other flood-resistant materials
o Replace internal walls and ceilings with flood-resistant material such as lime
plaster, cement board, concrete, or pressure-treated and decay-resistant
wood
o Replace wooden doors and window frames with metal or other flood resistant
options
o Raise electrical system components; increase the height of electric service
panels (fuse and circuit breaker boxes) and all outlets, switches, and wiring
Land-based flood risk reduction activities which may include:
• Lot grading improvement, which may include building up any sunken areas around
the foundation, digging small depressions to properly channel water, and otherwise
improving the yard so that it slopes away from the building
• Post-wildfire hillslope stabilization treatments including erosion barriers
• Post-wildfire channel treatments
Risk Reduction and Future Losses
The Claims Office encourages claimants to pursue eligible risk reduction projects that best
mitigate the potential for future losses. The Claims Office will review claims for future losses
from claimants that also pursued risk reduction projects to evaluate the extent that the
selected risk reduction project could reduce the projected future losses. The Claims Office
may also evaluate whether a claim for a projected future loss could be resolved through an
appropriate risk reduction project and will discuss this opportunity with the claimant.
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A request for risk reduction measures can support reopening or supplementing a claim.
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The deadline for filing the request to reopen a claim is not later than November 14, 2025,
which is the same deadline to incur risk reduction costs. Claimants should consider these
deadlines when prioritizing their claims for certain loss types.
6.3 Eligible Work- Community Scale Actions
The Act includes Tribal Nations, corporations, tribal corporations, partnerships, companies,
associations, counties, townships, cities, states, school districts and other non-federal
entities that suffered injuries from the fire as eligible claimant types. These entities are also
eligible for compensation to reduce risk to pre-fire levels. Projects could address risks to
public facilities or land.
Risk Reduction for Public Facilities
Claimants may be eligible for risk reduction compensation for public facilities that have a
heightened risk due to the fire and subsequent flooding. Eligible projects must reduce risks
to pre-fire levels.
Entities that have incurred risk reduction costs or those with risk reduction proposals for
facilities under their legal responsibility must first submit a project through FEMA PA for an
eligibility assessment under the Stafford Act. Claimants can submit a POL to the Claims
Office for risk reduction proposals or costs that are deemed ineligible under FEMA PA.
Entities, organizations or private nonprofit organizations that are legally responsible for
facilities used by the public and are not eligible under FEMA PA can submit their risk
reduction proposals or costs directly to the Claims Office.
Nature-based Risk Reduction Activities
The Claims Office will evaluate all requests for technical feasibility and effectiveness at
reducing the risk to pre-fire levels. Risk reduction measures for nature-based activities that
reduce risk to pre-fire levels may be eligible for compensation and examples of these
actions are listed below:
58
57
44 C.F.R. § 296.21(e)(5); 44 C.F.R. § 296.35.
58
Community scale risk reduction actions were informed by the New Mexico Programmatic Environmental
Assessment (PEA) which was developed by FEMA Region 6 in 2022 to provide the basis for decisions to
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• Implementation of nature-based watershed restoration solutions
o Alluvial fans
• Vegetative thinning, hazardous tree removal, and noxious weed abatement
o Community scale defensible space
o Reducing hazardous fuels
• Restoration and reforestation of fire-adapted vegetation types
o Reseeding ground cover
o Planting grass to prevent spread of noxious weeds
o Mulching with straw or chipped wood
• Restoration of riparian areas
o Placing logs/other erosion barriers to catch sediment on slopes
• Post-wildfire hillslope stabilization treatments
• Post-wildfire channel treatments
• Post-wildfire road, culvert, and trail flow diversion treatments
o Adding drainage dips and constructing emergency spillways
o Installing debris traps to modify road and trail drainage mechanisms
o Constructing straw, rock, or log dams in small tributaries to prevent flooding
• Post-wildfire ash, sediment, and debris removal and water infrastructure repairs
o Removing standing burned trees
• Structure demolition, relocation, or alteration
o Ignition resistant construction
• Hydraulic capacity improvements and protection of water infrastructure
o Strengthen or harden water systems that were burned and caused
contamination.
o Modifying or removing culverts
6.4 Risk Reduction Proposal and Technical Assistance
Claimants seeking compensation for heightened risk reduction measures
59
must include the
claim in a NOL filed not later than November 14, 2024, or an amended NOL filed not later
than November 14, 2025.
approve a broad range of actions related to watershed resiliency and post-wildfire treatments in the State of
New Mexico. The PEA is valid for five years until 2027 and can be accessed on FEMA.gov.
59
As described in 44 C.F.R. § 296.21(e)(5).
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All claimants requesting advanced payments for risk reduction, including individuals,
communities and government entities, are required to complete a risk reduction proposal as
an attachment to a POL. The proposal should include a short description of work, itemized
list of cost estimates, and project schedule with estimated date of completion. Claims Office
staff may assist the claimant to complete a proposal, but it is ultimately the responsibility of
the claimant to complete and submit it to the Claims Office for consideration. The Claims
Office recommends that claimants use licensed contractors to complete risk reduction
projects and can provide a directory of all licensed contractors through the New Mexico
State Licensing and Regulation Department as a resource for claimants. Claimants seeking
reimbursement for an already completed risk reduction project may use the risk reduction
proposal form or provide a description of the work completed and list of itemized costs to
their Navigator for review.
All claimants must incur the costs for risk reduction projects by November 14, 2025,
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and
complete project(s) for which they receive compensation by November 14, 2026.
Completion is defined as the completion of all work associated with the approved statement
of work including meeting all compliance requirements.
Risk reduction proposals or risk reduction projects seeking reimbursement will be evaluated
for the following:
• Effectively reduces the risk to pre-fire levels;
• Follows local floodplain ordinances (if applicable); and
• Aligns with the State’s long-term mitigation plan (if applicable).
Claimants may also request consultation with the Claims Office technical assistance team
on the risk reduction actions that could offer the most long-term benefits for a claimant’s
property, assistance with completing a risk reduction proposal, and referrals to local
information sources on compliance with local codes and permitting.
For risk reduction activities, construction and repairs must be coordinated with the state,
local governments and Tribal Nations as needed, to allow for appropriate site-specific
interpretation and modification by state and local building code officials. Claimants must
follow current building codes and standards, especially for any activities that involve
rebuilding or repair of a structure and its components.
60
Section 104 (d) (4)(C)(vii) of the Fire Assistance Act.
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6.5 Use of Risk Reduction Funding
Risk reduction funding for rebuilding or repairing a damaged or destroyed structure must
reduce the heightened risk of wildfire, flood, or other natural disasters to pre-fire levels.
Unlike most other forms of compensation, claimants must use risk reduction funding to
complete the approved risk reduction measures and cannot apply it towards other recovery
activities or transferred for other purposes.
A risk reduction project may be deemed ineligible by the Claims Office for a variety of
reasons including:
• Activity does not effectively reduce risk to pre-fire levels;
• Project does not follow state and local permitting regulations;
• Project counteracts other risk reduction activities and local/state mitigation
priorities; or
• Project has the potential to create unintended downstream effects.
If the Claims Office denies a risk reduction proposal, the claimant will be provided with a
written explanation of the denial. Claimants should work with their Navigator to make any
necessary modifications to their risk reduction proposal and seek approval from the Claims
Office before beginning any work.
Maintenance of Risk Reduction Projects
If a risk reduction project funded through the Claims Office is damaged by ongoing post-fire
events such as flooding, the claimant may submit a claim for costs associated with restoring
the original function of the project. Examples of these projects that may require clean-up
after flooding could include geobrugg barriers, gabion baskets, or other flood diversion
structures. Claimants will need to provide documentation that the clean-up costs are
associated with an event that resulted from the fire. Regular maintenance costs for projects
funded by other federal agencies will not be eligible for compensation.
Verification of Project Completion
For all projects, claimants will be required to submit documentation showing that the risk
reduction activity is complete and within the proposed statement of work. Documentation
should include:
• Copies of any secured building or construction permits;
• Project summaries and final invoice from licensed contractors;
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• Photos of the completed work; and
• An affidavit or declaration signed by the claimant verifying that the proposed work is
complete.
For projects with a total cost above $25,000, in addition to the documentation noted above,
Claims Office staff may conduct a physical site inspection to verify completion of the risk
reduction activity or activities.
If, during the verification phase, the activity is found to have been completed improperly,
does not achieve the intended benefit, or does not adequately reduce the risk as proposed,
the Claims Office may seek to recover funds from the claimant.
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7. DUPLICATION OF BENEFITS
Duplication of benefits (DOB) occurs when payments and/or assistance is provided from
more than one source to compensate for the same documented loss. The DOB amount may
cover all or a portion of a claim. The Claims Office is legally prohibited from duplicating
benefits paid from other sources, except for certain donations.
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The Claims Office is
collaborating with various partner agencies to ensure claimants do not receive duplicate
funding for losses previously compensated by another entity. This can include funding from
other federal, state, and local sources and/or private insurance.
7.1 Sources of Potential Duplication of Benefits
Claimants who have received funds from insurance and/or other federal or state recovery
programs are required to disclose those funds to the Claims Office to ensure they are not
being paid for the same loss twice. Any amount already received for the same losses from
other sources will be subtracted from the award except for donations or grants from non-
governmental organizations or non-profits.
Insurance Compensation
The Claims Office may send payments to a claimant even before the claimant has fully
settled with their insurance company. The Claims Office, however, will only pay those
amounts that are not paid or will not be paid by the insurance company. If the insurance
claim is withdrawn before any compensation is received, the Claims Office will provide
compensation for all eligible damages.
Other Federal Financial Assistance
The Claims Office and any other federal agency cannot duplicate payment to a claimant. A
duplication of benefits review will be performed by the Claims Office for every claim.
Assistance through the State of New Mexico
The Claims Office shares data with the State of New Mexico to ensure that any programs
administered by the state are included in the Claims Office’s duplication of benefits reviews.
61
Section 104(d)(c)(1)(C) of the Act, Pub. Law 117-180, 136 Stat. 2169.
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Benefits Provided by Non-Governmental Organizations and Individuals
Gifts or donations made by a non-governmental organization, such as the American Red
Cross, or an individual, other than wages paid by a claimant’s employer or insurance
payments, will be disregarded in evaluating a claim, and need not be disclosed by claimants
to the Claims Reviewers. Such assistance is not a duplication of benefits and should not be
applied to reduce the amount compensable.
7.2 Duplication of Benefits Review Process
When determining the compensation for each submitted loss, the Claims Reviewer will first
verify there are no DOBs.
Claims Reviewers are responsible for examining each POL for financial, personal, and/or
business losses that overlap with another form of federal financial assistance. The Claims
Office and other federal agencies have Information Sharing Access Agreements in place to
facilitate the sharing of information to ensure any DOB is identified. The Claims Reviewer is
responsible for completing a DOB review before providing their recommendation of
compensation to ensure that the Claims Office is not providing duplicate funding for the
same loss.
There are two possible outcomes of the Claims Reviewer's DOB review:
1. Compensation is provided for the uncovered portion of loss: If the Claims Reviewer
finds that a claimant has received funds from another agency or program, but these
funds do not cover the entire loss defined in their POL, then the Claims Office will
recommend compensation for the uncovered portion of the loss.
2. No compensation due to DOB: If the Claims Reviewer finds that the claimant has
received other funds from another agency or program that has covered the entirety of
the loss defined in the POL, the Claims Office will not provide compensation.
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8. PAYMENTS
8.1 General
For most types of compensation, the Claims Office does not require claimants to account to
the Claims Office for how they spend the funds. The exceptions to this are risk reduction
activities; flood insurance premiums; certain discretionary claim payments made under the
Claims Office Director’s statutory authority; and repayment of SBA loans, where
compensation must be used to complete the project or activity. For example, the Claims
Office will compensate a claimant for the cost of replacing a burned vehicle whether the
claimant chooses to replace the vehicle or not. If the replacement vehicle costs less than
the amount of the estimated compensation for the lost vehicle, the claimant can retain the
difference. However, if compensation is provided for an activity such as risk reduction, that
activity must be completed, or compensation will not be made or will be recouped. The
Claims Office provides the following payment categories:
• NFIP Payments – Payments for premiums made to NFIP Direct, unless claimants
request a reimbursement for an independently purchased flood insurance policy; in
those cases, the claimant will receive the reimbursement payment directly.
• SBA Loan Repayment – Payments made directly to SBA on behalf of claimants;
claimants may also request the Claims Office compensate the claimant/borrower
directly for their SBA loan. This option requires the claimant/borrower to then pay off
the loan, including interest, to the SBA. The request to pay SBA directly must be in
writing to the Claims Office.
• Risk Reduction – Payments received for risk reduction activities. Payments for risk
reduction activities must only be used specifically for the intended risk reduction
purposes.
• Payments for all other fire-related payments, partial or final – Payment made directly
to the claimant as partial or final compensation. There are no restrictions on how
funds are spent.
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Taxes
The Act states that the value of compensation provided to claimants is not considered
income for any purpose under federal, state or local law, including taxation.
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The Claims Office includes taxes as part of the valuation criteria to determine compensation
for various loss types, including sales tax, lodging taxes, and shipping taxes, among others.
Taxes required to be paid by the claimant for any other assistance outside of the Claims
Office such as other federal grants, local grants, or other assistance are not compensable by
the Claims Office.
Banking Information Form
Once claimants accept the compensation specified in the LOD and sign and submit the R&C
form, the Claims Office requires claimants to complete a Banking Information form to
receive their compensation.
Claimants accepting NFIP policies through the Claims Office or claims for the repayment of
SBA loans where repayment is sent directly to the SBA do not need to complete a Banking
Information form. For these types of claims, the Claims Office will pay either the NFIP or SBA
directly. A Banking Information form will not be included in the LOD packages for NFIP-only
or SBA-only claims. The exception to this is claimants seeking a reimbursement for an
already purchased flood insurance policy, who will receive the reimbursement payment
directly and need to provide both a signed R&C form and Banking Information form.
Additionally, for SBA loans, claimants have the option to request that the Claims Office
compensate the claimant/borrower directly for their SBA loan. This option requires the
claimant/borrower to then pay off the loan, including interest, to the SBA.
An electronic funds transfer (EFT) will directly deposit the payment into a claimant’s account
and is the most efficient and fastest method for a claimant to receive their compensation.
The U.S. Treasury requires payment by EFT. If a claimant does not have an account capable
of receiving an EFT, the Claims Office can work with the claimant to assist. If there are
multiple owners for a property that is subject to the claim, the Claims Office will ensure that
all claimants participate in payment, either by agreeing in writing that one or more claimants
will receive the payment for distribution or agreeing to a payment method.
62
Section 104(h)(4) of the Act, Pub. Law 117-180, 136 Stat. 2169.
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Fraud Prevention Controls
The Claims Office has implemented several fraud prevention controls to mitigate fraudulent
activities which collectively help the claims office detect and prevent fraudulent claims and
ensure the integrity of the claims system.
• Verification Procedures: Claims are subject to a rigorous verification process,
including cross-referencing claimant information with external databases to confirm
identity and legitimacy.
• Documentation Requirements: Claimants are required to provide thorough
documentation to support their claims, including invoices, receipts, medical records,
or other relevant information.
• Claims Audits: Random and targeted audits of claims are conducted regularly to
identify irregularities or inconsistencies in claims data.
• Data Analytics: Advanced data analytics tools are used to detect patterns indicative
of fraud, such as unusual claim frequency, or duplicative claims.
• Fraud Training: Staff are trained to recognize red flags and indicators of potential
fraud, equipping them with skills to detect suspicious claims.
• Whistleblower Hotline: An anonymous hotline is available through FEMA Fraud
Investigations and Inspections Division and the Office of Inspector General is
available for employees and external parties to report suspected fraudulent activities.
• Collaboration with Law Enforcement: Cooperation with federal and state law
enforcement agencies to pursue legal action against perpetrators of fraud when
necessary.
• Regular Policy Reviews: The Claims Office conducts periodic reviews of policies and
claims procedures to identify potential weakness that could be exploited by
fraudsters.
The Claims Office expects claimants to submit legitimate estimates, contract documents,
and other documentation in support of a claim. The Claims Office is engaged in evaluating
and paying claims based on documentation submitted by a claimant and is not engaging in
negotiations. Exaggerated or inflated claims, including documentation submitted for the
purpose of engaging in negotiation, may be false claims and will be referred for prosecution
under applicable federal and state laws.
Claimants should be vigilant against fraudulent activities following awarded compensation.
All Claims Office communications in written or email format have the official Claims Office
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logo. Claimants are encouraged to call the Claims Office Helpline or their assigned Navigator
to verify any requests for information that appear fraudulent.
8.2 Partial Payments
The Claims Office, at the request of a claimant, may make one or more partial payments on
any severable portion of a claim that can be considered on its own without affecting any
other portion of the claim. The partial payment process mirrors the overall claims process
and is intended to provide claimants compensations for eligible losses while the rest of their
claim progresses. As an example, if a claimant submits a partial payment claim for a vehicle
that was destroyed by the fire, the claimant cannot include the loss of the same vehicle in
another portion of their claim. The loss of a vehicle is an example of a severable portion of a
claim that is distinguishable from other losses.
Once a claimant’s NOL is received and acknowledged by the Claims Office, the claimant and
their assigned Navigator will begin preparing a POL specific to the partial payment. During
the 150-day timeline, the claimant can submit multiple POLs for different partial payments.
Figure 5: Partial Payments Process below illustrates how partial payments are a continuous
process. Claimants can submit POLs for multiple partial payments, as long as they are for
losses that are severable from their overall claim. The intent of partial payments is to
enable claimants to receive compensation to meet immediate needs while focusing on
finalizing the claim.
If a claimant accepts a partial payment, they cannot appeal or arbitrate that portion of the
claim, although they maintain their ability to pursue an appeal of the other parts of the claim
submitted for final determination or to submit additional claims. Claimants cannot appeal
the Claims Office decision on whether to provide a partial payment.
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The Claims Office may
deny requests for partial payments if the statutory and regulatory timeframes to finalize the
claim are approaching.
63
44 C.F.R. § 296.33.
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The Claims Office may make partial payments to eligible claimants while a claimant's final
claim payment is being evaluated. The Claims Office recognizes that for claimants with
urgent financial needs, a partial payment can provide immediate support and help claimants
meet financial obligations while the remainder of the claim is being evaluated. The Claims
Office may make partial payments based upon actual receipts or may base them on
estimates. A claimant may receive one or more partial payments on a claim before the entire
claim has been settled.
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In order to best adhere to the 150-day deadline for submitting a POL, claimants should
submit their request for a partial payment no later than 45 days after submitting a NOL.
Eligible Losses for Partial Payment
Examples of losses that may be considered for partial payment include, and could be
considered a severable loss, are listed below. These examples include, but are not limited
to, the following:
Financial Losses
• Additional living expenses
• Evacuation expenses
64
44 C.F.R. § 296.33.
Figure 5: Partial Payments Process
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• Temporary living accommodations
• Lost wages
• Insurance deductibles
• Feed for animals during evacuation or temporary re-homing
• Medical costs for a discrete injury or care and that is not ongoing (e.g.,
treatment for a burn or a broken arm caused by the event)
• Removal of dead trees or other debris immediately following the fire and/or
flooding event
Property Losses, such as:
• Damage to physical infrastructure
• Contents (e.g., furnishings, appliances, or personal property) not covered by
insurance payments
• Replacing food stores
• Outdoor ovens
• Vehicles (including trailers and recreational vehicles)
• Solar panels
• Water wells/tanks
• Losses identified on NRCS Conservation Restoration Plans
Business Losses
• Inventory (actual loss due to fire or flooding)
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9. REOPENING OR SUPPLEMENTING A CLAIM
9.1 Reopening a Claim
The Claims Office Director may reopen a claim after the claimant has filed a R&C and
received payment if requested to do so by the claimant in four circumstances:
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1. The claimant desires heightened risk reduction compensation;
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2. The claimant closed the sale of a home and wishes to present a claim for decrease in
the value of the real property;
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3. The claimant has incurred additional losses as part of a reconstruction in excess of
those funds previously awarded;
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or
4. The Claims Office Director otherwise determines that the claimant has demonstrated
good cause to reopen the claim.
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The deadline for filing a request to reopen a claim is not later than November 14, 2025. The
Claims Office Director’s decision to reopen or not reopen a claim is not subject to review
through appeal or arbitration.
The Authorized Official will decide compensation under a reopened claim after considering
the recommendation of the Claims Reviewer. Claimants who are dissatisfied with the
Authorized Official’s determination on the reopened claim may appeal to the Claims Office
Director.
65
44 C.F.R. § 296.35.
66
44 C.F.R. § 296.21(e)(5); 44 C.F.R. § 296.35.
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44 C.F.R. § 296.21(c)(3); 44 C.F.R. § 296.35.
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44 C.F.R. § 296.21(c)(1); 44 C.F.R. § 296.35.
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44 C.F.R. § 296.35.
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10. APPEALS AND ARBITRATION OF CLAIMS
The following section outlines the process for claimants to appeal the determination of the
Authorized Official, and if dissatisfied with the outcome of their appeal, pursue arbitration or
judicial review. In addition, this section establishes the criteria for appeals and arbitration
as outlined in the Act and its implementing regulations, ensuring the uniform
implementation of the dispute resolution provisions.
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10.1 Administrative Appeals
Once an Authorized Official has provided a determination on all elements of a claim
identified in all of the claimant’s POLs, a claimant may appeal any portion of the claim, with
the following exceptions:
• Claimants may not appeal the decision by Claims Office on whether to provide a
partial payment;
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• Claimants may not appeal partial or final payments for which they have already
signed a R&C form.
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Notice of Appeal
Claimants may request a review of an Authorized Official’s determination by submitting a
written Notice of Appeal (NOA) through one of the following:
- By email to the Appeals Docket email address: fema-hermits-peak-
- In-person through their Navigator (see the Claims Office Locations and Hours of
Operation section for locations)
- By mail to the Claims Office mailing address (see the Claims Office Locations and
Hours of Operation section for mailing information)
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The implementing regulation for the Act is Title 44 of the Code of Federal Regulations (C.F.R.) § 296 (August
23, 2023). Relevant regulations are found at § 296.41 Administrative Appeal, § 296.42 Arbitration, and §
296.43 Judicial Review.
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44 C.F.R. § 296.33
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44 C.F.R. § 296.32
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A NOA form is available for the convenience of claimants, but the Claims Office will accept
an appeal in any format if it includes the information required and otherwise meets the
criteria for an appeal.
The NOA must be postmarked, delivered, or electronically timestamped within 120 days
after the date that appears on the final LOD. The NOA must be in writing and contain a
detailed description of the claimant’s position. The NOA must also specify the dollar amount
in dispute for each loss line item in the appeal.
If a claimant elects new representation for their appeal, they must submit a Notice of
Representation along with a Privacy Act consent form to authorize data sharing.
Acknowledgement of Appeal
The Claims Office will confirm when a NOA is received by sending claimants a Receipt Letter.
The Receipt Letter will address the submission of the NOA as follows:
• If the NOA is received on time, claimants will receive an Acknowledgement Letter
and, shortly thereafter, a copy of their Administrative Record.
• If the NOA is received after the deadline, the Claims Office has the discretion to open
the appeal if the claimant can demonstrate good cause for a late submission. For
more details on good cause, see the Extensions section below.
• If the NOA is submitted prematurely, the Claims Office will instruct claimants to await
a final LOD that comprehensively addresses all their POLs.
• If the NOA is incomplete, the Claims Office will instruct claimants to provide any
missing elements of the NOA.
Supplemental Filings by Claimant
Claimants may supplement their statement in the NOA and provide additional documents in
support of their administrative appeal within 60 days after the date when the appeal is filed.
Claimants may submit additional documentation to support their appeal, regardless of
whether the documentation was previously submitted to the Claims Office.
The Claims Office may extend these timeframes for good cause at the request of the
claimant.
If all the claimant's supplemental documentation is submitted prior to the 60-day deadline,
the claimant may indicate in writing that they have no further documentation for
consideration of their appeal.
Requests for Information from the Claims Office
The Claims Office may request additional information and documentation from claimants
and/or from Claims Office staff if relevant to the issues outlined in the NOA. The Claims
Office will communicate requests for information and documentation to claimants in writing.
If a request for information and documentation is made after the initial 60-day period, the
supplemental period will be extended as directed by the RFI.
Conferences
At the request of the claimant, the Claims Office will schedule a conference to facilitate a
discussion on the appeal. The Claims Office may also, at its discretion, schedule a
conference if the Appeals Administrator finds it will support resolution of the appeal. If the
Claims Office exercises its discretion to engage a mediator as part of the appeals process,
FEMA will assume those expenses. The claimant may request a mediator to support
facilitation of the conference, and the Claims Office will grant the request if it determines a
mediator will support resolution of the appeal. The mediator is not a decision-maker, and
their sole responsibility is to facilitate the discussion during the conference. Decision-
making authority remains with the Appeals Administrator.
Claimants must request a conference (via the same mechanisms identified earlier in this
section) by the deadline for submitting supplemental information, which is within 120 days
of filing the NOA, and should specify whether they wish to have a mediator involved in
facilitating the conference.
Conferences will generally be conducted virtually. However, in limited circumstances, such
as when the claimant lacks access to electronic equipment or the internet, an in-person
conference may be arranged at a mutually agreed-upon time and location in or near Santa
Fe, Mora, or San Miguel Counties in New Mexico.
Absent extraordinary circumstances, a conference will be scheduled for no more than 120
minutes.
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Hearings
At the Claims Office’s discretion, an informal hearing may be convened to receive oral
testimony that cannot be presented in documentary form (such as sworn declarations,
estimates, or receipts) to assist the Claims Office in thoroughly addressing an appeal and to
allow the claimant to supplement the Administrative Record. These hearings are not
adversarial in nature and do not offer an immediate resolution to an appeal. The Hearing
Officer is an impartial facilitator who manages the hearing process and collects information,
but does not make the appeal decision. They are informal, meaning formal rules of evidence
will not be utilized. Rules governing such hearings are set forth below:
• Hearings will generally be conducted virtually. However, in limited circumstances,
such as when the claimant lacks access to electronic equipment or the internet, an
in-person hearing may be arranged at a mutually agreed-upon location in or near
Santa Fe, Mora, or San Miguel counties in New Mexico.
• Hearings will be transcribed. The hearing transcript will be included in the
Administrative Record and will be accessible to claimants as part of their record.
• The Claims Office will provide interpreters or any reasonable accommodations if
requested prior to the hearing.
• The Claims Office will hear oral testimony from witnesses. Any information presented
during the hearing will be added to the Administrative Record.
• Typically, hearings will not exceed 90 minutes, but if the issues are particularly
complex, the timeframe may be extended.
Informal Hearing Procedures
At least one week prior to the hearing, the claimant or Claims Office will identify the potential
witness(es) and provide a summary of the expected testimony and a statement explaining
relevance to the Administrative Record. Based on the proffer, other participants in the
hearing may identify rebuttal witnesses.
Claimants and the Claims Office are not required to have representation at the hearing but
may elect to do so.
The Hearing Officer will open the hearing by introducing all participants, verifying the
claimant’s identity using FEMA’s usual verification procedures, and outlining the purpose
and format of the hearing.
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1. Swearing-In
All witnesses will be sworn to testify under penalty of perjury. The hearing will be
transcribed for the Administrative Record.
2. Presentation of Oral Testimony
Both claimants and the Claims Office may present witnesses to testify on any relevant
factual matter related to the appeal that cannot be submitted to the Administrative
Record through documents.
3. Questioning
To facilitate information gathering and the effective presentation of evidence, the
Hearing Officer may question witnesses. Witnesses will be subject to questioning from
other participants. The Hearing Officer will only allow relevant questions within the scope
of the hearing that are not deemed repetitive or intended to intimidate, harass, or
embarrass the person being questioned.
Settlements
While an appeal is under consideration, the Claims Office may engage in settlement
discussions and if the Claims Office determines that all or a portion of an appeal has merit,
it may make a settlement offer. If the claimant accepts the offer, the Claims Office will
prepare a settlement agreement to resolve that portion of the dispute and provide
compensation. The settlement agreement will preclude arbitration or judicial review against
the Claims Office or any other agency of the United States on that/those issue(s).
Extensions
Claimants may request extensions for good cause to:
1) the 120-day deadline to file an appeal;
2) the 60-day deadline to provide supplemental information, including a request for a
conference.
Claimants must file a written request for an extension by email or mail explaining why they
will be unable to meet the deadline. Extension requests must be postmarked, delivered, or
electronically timestamped prior to the deadline and sent to the Appeals Docket via the
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same mechanisms described earlier in this section. The Appeal Administrator has discretion
to grant a claimant’s request for an extension if good cause is shown.
Good cause for extending deadlines includes, but is not limited to: instances where a
claimant, through no fault of their own, is not able to obtain relevant documentation in time
to supplement their appeal; or other instances in which the Appeals Administrator
determines that an undue hardship or change in circumstances on the claimant warrants an
extension of a deadline.
Decision on Appeal
The Claims Office will close the Administrative Record after the time to submit additional
documentation has passed or when the claimant notifies the Claims Office that they have no
additional documentation to submit, whichever comes first.
The Claims Office will issue a written decision on the Administrative Appeal and provide the
decision by email or mail. The decision on the Administrative Appeal will constitute the final
decision of the Administrator of FEMA.
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The claimant’s acceptance of the decision will be conclusively presumed unless the
claimant files for arbitration or judicial review within 60 calendar days
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of the date of the
final decision on the Administrative Appeal. The Claims Office’s appeal decision will include
the amount of payment for the disputed portion of the claim, including any additional
compensation awarded. A claimant is permitted one appeal, and if dissatisfied after the final
decision, one arbitration or one judicial review.
Claimant’s Options After Filing a Notice of Appeal
Following receipt of the appeal decision, the claimant can:
• Accept the decision by signing and returning the R&C form and Banking Information
form to the Claims Office.
• Dispute the decision. If the claimant remains dissatisfied after the appeal is decided,
the dispute may be resolved through either binding arbitration or by seeking judicial
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44 C.F.R. 296.41(h)
74
44 C.F.R. 296.41(i)
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review by bringing a civil lawsuit against FEMA in the United States District Court for
the District of New Mexico.
Additional Provisions
Issues Pending Judicial Review
The Claims Office recognizes that several of its regulations and policies are being challenged
in federal court. The Claims Office will not make a final decision on these issues until the
matter is fully adjudicated in federal court. To maximize payment of eligible compensation
as quickly as possible, the Claims Office will handle such appeals as follows:
• All Appealed Loss Line Items Are Under Judicial Review – The appeal will be accepted
by the Claims Office and supplemental documentation will be accepted within the
timeframes previously specified, but a final decision will not be issued until the
matters under judicial review are fully resolved.
• Some Appealed Loss Line Items Are Under Judicial Review and Some Are Not Under
Judicial Review – The appeal and supplemental documentation will be accepted by
the Claims Office and the portion of the appeal concerning items that are not under
judicial review will be reviewed. If the Claims Office determines that one or more of
items that are not under judicial review should result in compensation, the Claims
Office will offer to settle that portion of the appeal. A final decision will not be issued
until such time as the matters under judicial review are fully resolved.
Withdrawal of Appeal
At any point in the appeal process, the claimant may withdraw the appeal in whole or in part
by submitting a written request via the mechanisms described earlier in this section. The
Claims Office will formally acknowledge that withdrawal by return correspondence.
Claimant Expenses
Claimants are responsible for any expenses they incur for their appeal, including travel
costs, attorney’s fees, representative fees, copying costs, or costs associated with attending
any conference or hearing.
If the Claims Office exercises its discretion to engage a mediator, hearing officer, or court
reporter as part of the appeals process FEMA will assume those expenses. Any other fees
not listed here will be paid by the party incurring such costs.
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If the appeal decision identifies additional compensation and if the claims preparation
expenses have not reached the $25,000 cap, the Claims Office will increase preparation
fees based on 5% of the total agency determination, still capped at $25,000.
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(See 5.7
Reimbursement of Expenses to Submit a Claim)
10.2 Arbitration
Initiating Arbitration
Claimants who are dissatisfied with the outcome of an Administrative Appeal may pursue
binding arbitration by submitting a written Request for Arbitration (RFA) through the following
options:
- By email to the Arbitration Docket email address: fema-hermits-peak-
- In-person through their Navigator (see the Claims Office Locations and Hours of
Operation section for locations)
- By mail to the Claims Office mailing address (see the Claims Office Locations and
Hours of Operation section for mailing information)
An RFA form is available for the convenience of claimants, but the Claims Office will accept
requests for arbitration in any form, as long as it includes the information required and
otherwise meets the criteria for arbitration.
RFAs must be postmarked, delivered, or electronically timestamped no later than 60 days
after the date appearing on the Administrative Appeal decision.
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If the claimant does not
request arbitration within the regulatory timeframe, the claimant no longer has a right to
arbitrate.
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44 C.F.R. §296.31(b)
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To be eligible to request an arbitration, claimants must have filed an appeal with the Claims Office within the
timeframes established in 44 C.F.R. §296.41, that is, appeals must be postmarked or delivered within 120
days after the date that appears on the Authorized Official’s determination.
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Permissible Claims and Evidence
Claimants may only arbitrate an issue if it was raised and decided in an Administrative
Appeal. Only evidence contained in the Administrative Record will be considered during
arbitration. No new documentation can be submitted.
Selection of Arbitrator
The Arbitration Administrator maintains a list of qualified arbitrators and makes
assignments by random drawings. If the amount in dispute is $500,000 or less, one
arbitrator will conduct and decide the arbitration. If the amount in dispute exceeds
$500,000, a panel of three arbitrators will conduct and decide the arbitration.
Conduct of Arbitration
The Arbitration Administrator will provide guidelines for the conduct of the arbitration directly
to claimants who file an RFA. Arbitration will include a hearing where the claimant’s written
request for arbitration and the Administrative Record will be considered. A hearing will be
conducted during which the arbitrator(s) will receive oral and/or written testimony that
further explains information already entered into the Administrative Record but will not
receive or consider new evidence. Evidence or documents provided after the Administrative
Appeal final decision will not be part of the Administrative Record and will not be considered
in the arbitration. Hearings will generally be conducted virtually, but in limited circumstances
may be convened in-person at a mutually agreed-upon time and location in Santa Fe, Mora,
or San Miguel Counties in New Mexico.
The arbitrators will review the record for substantial evidence supporting the decision and
will uphold the claim decision if it is supported by substantial evidence on the record
considered as a whole.
Decision
After reviewing the evidence in the Administrative Record and conducting a hearing, the
arbitrator(s) will render a written decision and transmit it to the Arbitration Administrator, the
claimant, and the Claims Office Director. Decisions by a panel of three arbitrators must be
signed by at least two of the three arbitrators and all arbitration decisions should be
rendered no later than 10 days after the hearing is concluded.
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The Arbitration Administrator may extend the time for a decision with notice to the claimant
and the Claims Office Director. The decision of the arbitrator(s) will include the amount of
compensation if compensation is awarded to the claimant, and an explanation on why
additional compensation was or was not awarded. The decision of the arbitrator(s) is final
and binding on all parties and is not subject to administrative or judicial review.
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Any additional compensation awarded will be paid to the claimant upon receipt of a signed
R&C form and Banking Information form.
Fees and Expenses
The Arbitration Administrator pays all fees and expenses of the arbitrator(s). Claimants are
responsible for any expenses they incur, including travel costs, attorney’s fees,
representative fees, copying costs, or costs associated with attending any hearing; any other
fees not listed here will be paid by the party incurring such costs.
If the arbitration decision grants additional compensation beyond the initial determination,
and if the claims preparation expenses have not reached the $25,000 cap, claimants will
have their preparation fees increased based on 5% of the total agency determination, still
capped at $25,000.
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(See Section 5.7, Reimbursement of Expenses to Submit a Claim)
10.3 Judicial Review
As an alternative to arbitration, a claimant dissatisfied with the final Administrative Appeal
decision may seek judicial review of the decision by bringing a civil lawsuit against FEMA in
the United States District Court for the District of New Mexico. This lawsuit must be brought
within 60 days of the date that appears on the Administrative Appeal decision. The court
may only consider evidence in the Administrative Record and will uphold FEMA’s decision if
it is supported by substantial evidence on the record considered as a whole.
10.4 Collecting Erroneous Payments
The United States will attempt to recover any funds improperly paid to claimants, such as
when:
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The Act, § 104(h)(3)(C) explains the binding effect of arbitration and the subsequent preclusion of the right
to judicial review as provided for in § 104(i). A claimant who wants to contest the final decision on
Administrative Appeal can only elect one of the two options.
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44 C.F.R. § 296.31(b)
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1. It determines the payment was due to fraud or willful misrepresentation by claimant
or claimant’s representative;
2. Failure of the claimant to cooperate with an audit;
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or
3. A material mistake by FEMA.
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The Act generally obligates FEMA to attempt to recover payments where there is evidence of
civil or criminal fraud, misrepresentation, presentation of a false claim or where a claimant
was not eligible for a partial payment received pursuant to the Act. FEMA will also recover
overpayments where the agency made a material mistake in the calculation of the damages
owed to the claimant and in other appropriate cases.
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44 C.F.R. § 296.36.
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44 C.F.R. § 296.30(d)
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11. ACCESS TO RECORDS AND PRIVACY ACT
11.1 Privacy Protection
The Privacy Act of 1974 regulates how FEMA collects, uses, and discloses a claimant’s
personal information in order to protect the privacy of the claimant. The Claims Office may
only disclose this information with the consent of the claimant or pursuant to an
enumerated exception to the Privacy Act’s nondisclosure provision. Confidential, proprietary,
and trade secret information provided by entities, such as businesses, Tribal Nations, tribal
entities, and government agencies, are not eligible for Privacy Act protection, but may be
exempt from disclosure under the Freedom of Information Act (FOIA). If claimants are not
covered by the Privacy Act (non-individuals such as businesses or governments), they should
discuss their intent to protect confidential information from disclosure with the Claims
Office
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before the information is submitted, as the Claims Office may not be able to prevent
the disclosure of this information unless it has been made aware of its confidential nature.
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11.2 Audits and Investigation
For purpose of audit and investigation, a claimant will grant the DHS Office of the Inspector
General and the Comptroller General of the United States access to any property that is the
subject of a claim and to any and all books, documents, papers, and records (including any
relevant tax records) maintained by a claimant or under the claimant’s control pertaining or
relevant to the claim.
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11.3 Request for Information
When a claimant signs a NOL, which includes the provisions of the Privacy Act Notice, they
are expressly acknowledging that they grant permission to the Claims Office to share their
information with federal, state and local government agencies, as well as private
organizations as authorized by the Privacy Act and the DHS Claims Records System of
Records Notice. This sharing is primarily for the purpose of confirming the claimant’s
identity, their eligibility and assessing any previous compensation or payments made in
connection with the fire. Additionally, under certain circumstances and in accordance with
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5 U.S.C. 552a(b)(1)-(12).
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44 C.F.R. § 296.37.
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44 C.F.R. § 296.36.
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the applicable statues and regulations, the Claims Office may disclose this information for
specific routine uses or pursuant to any other permitted exception to the Privacy Act's
nondisclosure provision without requiring separate consent.
11.4 Request for File
A claimant has access to his/her records kept by the Claims Office and may request a copy
by sending a written request, by mail or email to:
Email: fema[email protected]
FEMA Hermit's Peak/Calf Canyon Claims Office
P.O. Box 1329
Santa Fe, NM 87504
A claimant should:
1. Mark the envelope and letter of request “Privacy Act Request”;
2. Provide in the letter:
a. Full name;
b. Some type of appropriate personal identification, such as a driver's license,
passport, employing office's identification card, military identification card,
student identification card or other identification data;
c. Full current address; and
d. A description of the records that the claimant is seeking. FEMA Privacy Act
regulations are located at 44 CFR Part 6.
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Appendix A: List of Acronyms
AO Authorized Official
APA Administrative Procedure Act
BAER Burned Area Emergency Response
CR Claims Reviewer
CRA Congressional Review of Agency Rulemaking Act
DEC Data Entry Clerk
DHS Department of Homeland Security
DOB Duplication of Benefits
EFT Electronic Funds Transfer
EHP Environmental/Historical Preservation
FEMA Federal Emergency Management Agency
FOIA Freedom of Information Act
IFR Interim Final Rule
IBHS Insurance Institute for Building and Home Safety
LOD Letter of Determination
NADA National Auto Dealers Association
NEPA National Environmental Policy Act of 1969
NFIP National Flood Insurance Program
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NM New Mexico
NOL Notice of Loss
NRCS (USDA-NRCS) Natural Resources Conservation Service
PA Public Assistance
PAS Privacy Act Statements
POL Proof of Loss
PPG Program and Policy Guide
SBA Small Business Administration
SFHA Special Flood Hazard Area
SLTT State, local, tribal, and territorial
SNAP Supplemental Nutrition Assistance Program
SOR System of Record
USDA United States Department of Agriculture
USFS United States Forest Service
WYO Write Your Own
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Appendix B: Glossary
Administrative Appeal: Appeal of the Authorized Official’s Determination to the Claims Office
Director.
Administrative Record: All information submitted by the claimant and all information
collected by FEMA concerning the claim, which is used to evaluate the claim and to
formulate the Authorized Official’s Determination. It includes all information that is
submitted by the claimant or FEMA in an Administrative Appeal and the decision of the
Administrative Appeal.
Advocate: The Advocate reports to the Claims Office Director and works with claimants to
resolve conflicts and concerns; educate claimants on claim process and policy; and
Identifies challenges claimants are having with claims process.
Arbitration Administrator: The Claims Office employee responsible for administering
arbitration procedures to resolve disputes regarding a claim. This role is filled by the
Appeals, Arbitrations, and Audits Branch Chief in the Claims Office.
Authorized Official: An employee of the United States who is delegated by the Claims Office
Director to render binding determinations on claims and to determine compensation due to
claimants under the Act. Only Authorized Officials have the authority to decide claims.
Authorized Official’s Determination: Document signed by an Authorized Official and mailed
to the claimant evaluating each element of the claim as stated in the Proof of Loss and
determining the compensation, if any, due to the claimant.
Claimant: A person or entity that has filed a Notice of Loss (NOL) under the Act.
Claims Office: The Hermit’s Peak/Calf Canyon Fire Claims Office is established by the
Hermit’s Peak/Calf Canyon Fire Assistance Act and is responsible for administering the
program to provide compensation for the victims of the Hermit’s Peak/Calf Canyon Fire and
associated impacts.
Claims Office Director: Independent Claims Manager appointed by the Administrator who
leads the Claims Office and determines claimant appeals.
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Claims Reviewer: A licensed insurance adjuster contracted by the Claims Office who is
authorized by the Claims Office Director to review and evaluate claims submitted under the
Act. Their role is to work with the claimant to obtain relevant evidence, analyze the evidence,
and make a recommendation to an Authorized Official. Contracted Claims Reviewers have
technical backgrounds in construction, engineering, environmental, and insurance.
Days: Calendar days, including weekends and holidays.
Debris Removal: Debris removal activities such as clearance, removal and disposal of
vegetative, construction and demolition debris, sand, silt, sediment, gravel, rock, boulders,
white goods, vehicle and hazardous trees.
Good Cause: Consideration for purposes of extending the deadline for filing, supplementing
a claim, or reopening a claim includes, but is not limited to: instances where a claimant,
through no fault of their own, may not be able to access needed documentation in time to
submit a claim or transmit relevant information or data; or where damage is found after a
claim has been submitted; or other instances in which the Claims Office Director, in their
discretion, determines that an undue hardship or change in circumstances on the claimant
warrants an extension of a deadline or the supplementation or reopening of existing claims.
Hazardous Trees: May include tree limbs, branches, stumps, or trees that are still in place,
but damaged by the fire to the extent they pose significant threat.
Hermit’s Peak/Calf Canyon Fire:
(1) The fire resulting from the initiation by the U.S. Forest Service of a prescribed burn in the
Santa Fe National Forest in San Miguel County, New Mexico on April 6, 2022;
(2) The pile burn holdover resulting from the prescribed burn by the U.S. Forest Service
which reemerged on April 19, 2022; and
(3) The merger of the two fires described in paragraphs (1) and (2) of this definition,
reported as the Hermit’s Peak Fire or the Hermit’s Peak Fire/Calf Canyon Fire.
Household: A group of people, related or unrelated, who live together on a continuous basis
and does not include members of an extended family who do not regularly and continuously
cohabit.
Injured Person: An individual, regardless of citizenship or alien status; or a Tribal Nation,
tribal corporation, corporation, partnership, company, association, county, township, city,
state, school district, or other non-federal entity with losses resulting from the Fire. The term
Injured Person includes a tribal government or Tribal Nation with respect to any claim
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relating to property or natural resources held in trust for the tribe by the United States.
Lenders holding mortgages or security interests on property affected by the Hermit’s
Peak/Calf Canyon Fire and lien holders are not an “Injured Person” for purposes of the Act.
Injury: “Injury or loss of property, or personal injury or death’’ as used in the Federal Tort
Claims Act, 28 U.S.C. 1346(b)(1).
Letter of Determination: A written decision to the claimant which includes a summary of the
compensation amounts determined by the Claims Reviewer.
Navigator: A Claims Office employee who is a trusted member of the local community and
who provides individualized support to claimants and assists them throughout the life of the
claim but are not authorized to make eligibility or compensation determinations for any
claim.
Notice of Loss: A form supplied by the Claims Office through which an Injured Person or
Subrogee initiates a claim seeking compensation under the Act.
Partial Payment Proof of Loss: A variation of the Proof of Loss form for partial payments.
Partial Payment Letter of Determination: A variation of the Letter of Determination for partial
payments
Partial Payment Release and Certification: A variation of the Release and Certification form
for partial payments.
Physical Damage: Actual physical damage to tangible assets or inventory of the business,
including real property, that was caused by the fire. The term includes damage to or
destruction of trees and shrubbery as well as damage to or destruction of any part of a
building.
Proof of Loss: A statement attesting to the nature and extent of the claimant’s injuries.
Public Assistance: The FEMA grants program established under the Robert T. Stafford
Disaster Relief and Emergency Assistance Act, 42 United States Code (U.S.C.) §§ 5121-
5207, which provides assistance to state, local, tribal, or territorial (SLTT) governments, and
certain types of private nonprofit organizations so that communities can quickly respond to
and recover from major disasters and emergencies declared by the President.
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Real Property: All lands including buildings, improvements and fixtures thereon and property
of any nature appurtenant thereto, or used in connection therewith, and every estate,
interest, right and use, legal or equitable, therein, including terms for years leaseholds and
liens by way of judgment, mortgage or otherwise.
Release and Certification (R&C) Form: A document in the manner prescribed by Section 104
of the Act that all claimants who have received or are awarded compensatory damages
under the Act must execute and return to the Claims Office as established in 44 C.F.R §
296.30(c).
Risk Reduction: Activities that minimize the risk of wildfire, flood, or other natural disaster in
the counties impacted by the Hermit's Peak Fire to risk levels prevailing in those counties
before the Hermit’s Peak Fire.
Severable: A portion of a claim that is factually and legally distinguishable and that can be
considered on its own without affecting any other portion of the claim.
Stafford Act: Robert T. Stafford Disaster Relief and Emergency Assistance Act, Public Law
93-288, as amended. This Act constitutes the statutory authority for most federal disaster
response activities especially as they pertain to FEMA and FEMA programs.
Subrogee: An insurer or other third party that has paid on an insurance claim or
compensation to claimant for injury and is subrogated to any right that the claimant has to
receive payment under the Act.
Subsistence Resources: Food and other natural resources obtained through hunting, fishing,
firewood gathering, timbering, grazing or agricultural activities.
Tribal Citizen: An enrolled member of a Tribal Nation.
Tribal Nations: Federally recognized Indian Tribal Nations, including Alaska Native villages
and organizations, pueblo, village, community, component band, or components reservation
individually identified (including parenthetically) in the list published most recently by the
Bureau of Indian Affairs (BIA) as of September 30, 2022, pursuant to section 104 of the
Federally Recognized Indian Tribe List Act of 1994.
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Appendix C: Table of Updates
Section Number
Title
Date of Change
Amendment
Ex. Appendix C
Table of Updates
11/01/2023
PPG Version 1.0
Published
01/23/2024
10
Appeals and
Arbitration of Claims
05/15/2024
Major revisions to
add more detail on
Appeals and
Arbitration process
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Appendix D: Required Forms
The following forms are intended for use as examples or reference material only. They are not intended to be
printed or used for Claims Office submission. For the most up-to-date versions of each form including forms in
languages other than English, please visit the Hermit’s Peak/Calf Canyon Website (Link).
Notice of Loss – English (Link)
Notice of Loss – Spanish (Link)
Proof of Loss – English (Link)
Proof of Loss – Spanish (Link)
