FEMA to Reimburse $400,000 to Malibu for Fire-Related Costs

The Federal Emergency Management Agency agreed this week to reimburse about $400,000 to Malibu for money the city lost after it waived building permit fees for residents who lost their homes in the 1993 fires.

Permits generally help pay for building inspections needed after disasters such as fires. By waiving permit fees, the city incurred the costs of the building inspections, said Assistant City Manager Mark Lorimer.

FEMA promised to reimburse Malibu for all the building inspection costs--estimated at $1.7 million--but learned in July that costs reported after October 1994 were, in fact, not eligible for reimbursement, Lorimer said.

The new agreement extends the eligibility date by one year, which would bring in more than $400,000 that city officials said Malibu desperately needs.

“We have had to spend $16 million in the last six years on disasters,” Lorimer said. “If we had to put in all our own money, the city coffers would be in serious [trouble].”

Concerned that the city would have to “eat the costs” for the bulk of 285 waived building permits, Malibu officials met in February with FEMA Director James Witt in Washington, City Manager Harry Peacock said.

“What concerned us was that [the deadline was declared] ex post facto,” Peacock said. “If we would have known, we would have told everyone, you have a year” to file paperwork and apply for a building permit.

In response to that meeting, Witt faxed the city a letter Monday notifying officials of the extension.

“In our meeting, you stated that the major impact to your community was the lack of reimbursement of expenses for the second year,” Witt wrote. “After reviewing available information on your situation . . . I have determined that reimbursement of expenses for a period of up to two years is warranted.”