(a)
When FEMA withholds funds from recipient under this regulation, the Administrator may, if allowable under the statute governing the assistance, disburse the withheld funds directly to an alternate recipient: Any public or nonprofit private organization or agency, or State or political subdivision of the State.
(b)
The Administrator will require any alternate recipient to demonstrate:
(1)
The ability to comply with this regulation; and
(2)
The ability to achieve the goals of the Federal statute authorizing the Federal financial assistance.
Code of Federal Regulations
[55 FR 23078, June 6, 1990, as amended at 68 FR 51380, Aug. 26, 2003]