Disaster Costs

A disaster cost expense exists when there is damage to the budgetary unit’s shelter caused by a natural disaster.

Disaster cost expenses, including charges for the repair of a home damaged or destroyed by a natural disaster, such as a fire or flood, are allowable for NA only.

However, the cost of repair or replacement that has been or is to be reimbursed by relief agencies, insurance companies, or other sources is not an allowable expense.

NOTE Designation of a disaster area by a local, state, or federal agency is not required. Implementation of the Disaster Nutrition Assistance Program (DNAP) is not required.

The participant has the option of one of the following:

● A one-time deduction for the month after the month the expense is incurred or billed.

● Averaging the expense through the end of the NA approval period starting with the month the change became effective.