Guidelines for the Disaster Financial Assistance Arrangements
For eligible disasters beginning April 1, 2025

1 Definitions and Interpretation

The definitions relevant to the Disaster Financial Assistance Arrangements Program ("DFAA", “Program”, or “DFAA Program”) are outlined in the section below. These definitions will be used throughout the Guidelines and also apply to Schedules that form part of the Guidelines and other supporting documentation under the Program.

Appropriately mitigated

An asset in an identified and/or a designated high-risk area is resilient to the identified high risk, which means it is protected in such a way that it is not expected to experience major damage from natural hazard events that are at or lower than the identified high-risk level. Appropriate mitigation may include a combination of property-level mitigation (e.g., seismic retrofits, elevated ground floors) and community-level mitigation (e.g., dikes or adaptation measures, community FireSmart initiatives). See Schedule 1: High-Risk Areas for additional details.

Asset

An overarching term that may refer to any physical items, structures, or infrastructure which may be owned by individuals, small businesses, communities, governments, etc.

Business continuity

An expected internal function of governments and businesses in which plans and strategies are in place to maintain a baseline level of functionality or service provision during disruptions.

Cost effective

Evidence indicating the net benefits (considering qualitative and quantitative costs and benefits) of a prospective project over the lifespan of the asset are sufficient to justify the costs. Benefits may include avoided future damages and losses. Projects where benefits exceed costs are generally considered cost effective.

Direct result

A clear cause-and-effect link between the impacts of an eligible disaster and the damage, consequence, and/or activity for which funding is sought.

Disaster period

The onset of impacts from a natural hazard (the start date) until the natural hazard is not causing direct damage and/or posing a direct threat to people, communities, and/or essential assets (the end date).

Eligible disaster

A provincial/territorial disaster that qualifies for cost-sharing under the DFAA, as defined in Section 6: Eligible Disasters.

Eligibility period

The time during which provincial/territorial costs for eligible activities are eligible for the DFAA. The eligibility period begins from the disaster start date (but can include eligible pre-impact preparations undertaken before the start date) and ends after the disaster end date plus the timeline established under each Funding Stream.

Emergency Management Organization

The government ministry, department, organization, or agency responsible for coordinating emergency management activities as identified in the jurisdiction's emergency management plans/legislation. This may refer to provincial/territorial and/or local jurisdictions.

End date

The date on which the natural hazard is no longer causing direct damage and/or posing a direct threat to people, communities, and/or essential assets. This forms the end of the disaster period for the eligible disaster.

Essential

Indispensable or necessary elements required for welfare, stability, and/or functionality of people, structures, and systems.

Within the policy intent of the DFAA Guidelines, provinces/territories determine the specific elements considered essential for applicants to their disaster financial assistance programs in their respective jurisdictions. Further guidance is provided in each Funding Stream.

Funding Streams

The five categories of costs with the DFAA, which are organized according to activities and for which different conditions, timelines, and cost-sharing levels apply.

Geographic area

For an eligible disaster, the spatial boundaries of disaster impacts from the natural hazard(s).

High-risk areas

Geographic areas designated and/or identified by municipal, provincial/territorial, Indigenous, and/or federal governments or regulatory bodies as having an enduring, elevated risk of severe consequences stemming from the impact of a specific or multiple natural hazard(s).

This does not refer to seasonal forecasts or risk assessments that do not have a geospatial component. These designations/identifications should be made public and incorporated into long-term planning considerations (through mechanisms such as flood maps, official community plans, bylaws and legislation, etc.).

See Section 8.4: Eligibility of Assets in High-Risk Areas and Schedule 1: High-Risk Areas for further details.

Home (principal residence)

The place (rented or owner-occupied) where an individual/household makes their home; where they live and conduct daily affairs; and is generally used as a mailing address and/or for government programs or records. A principal residence may include but is not limited to the following types of housing:

• A house, townhouse, semi-detached, etc.
• An apartment in an apartment building, condominium, secondary suite, etc.
• A fixed-in-place mobile home, trailer, houseboat, etc.
• Collective or cooperative housing; or
• A temporary shelter, emergency shelter, transitional housing, etc.

For people who are transient, such as students, seasonal workers, people experiencing homelessness or at-risk of homelessness, or spending time between multiple locations for work, recreation, or other purposes, a principal residence is the location where they conduct daily affairs and to which they have every intention of returning.

Indigenous governments

First Nation, Inuit, and Métis governments, including a Council of a Band within the meaning of subsection 2(1) of the Indian Act, R.S.C. 1985, c.I-5, or a government established under the authority of a self-government agreement, which has been approved and has force of law under an act of Parliament or a legislature.

Insurable

Insurance coverage for the hazard causing the eligible disaster was available and adequate in the region that experienced the disaster, where:

• adequate means the insurance policy covers the required costs for the policyholder to repair or restore the asset to a functional level after a disaster, and
• available means the insurance for the specific natural hazard can be accessed on an annual basis at a generally affordable rate within the region as per Schedule 2: Insurability. This determination is made at the regional or community level, and not at the individual or property level

Insurable does not refer to whether an individual or entity chose to purchase insurance if it was generally adequate and available. See Schedule 2 for additional details

Major damage

Significant impact to the safety, structural integrity, and/or critical function of an asset or system as determined by a suitably qualified professional, where the asset or system is unable to function as intended or has a prolonged period of down time, and will require significant repairs or total reconstruction.

Non-major damage includes impacts to the asset or system that may result in some down time and/or loss of function, but the critical function of the asset or system can be restored quickly with minimal disruption (e.g., superficial damage or damage to the aesthetics). Non-major damage may require cleanup and/or minor repairs but not major reconstruction.

Natural hazard

A naturally occurring process or phenomenon that has the potential to impact or threaten lives, properties, communities or other assets, dependent on its interaction with and the level of vulnerability and exposure of human environments. Natural hazards may include but are not limited to the following: avalanches, cold events, floods, earthquakes, geomagnetic storms, heat events, hurricanes, landslides, storm surges, storms (hail, ice, thunderstorms, wind, snow, winter storms, tropical storms), tornados, typhoons, tsunamis, volcanic events, and wildfires.

Order in Council

A legal instrument made by the Governor in Council pursuant to a statutory authority or, less frequently, the royal prerogative. All Orders in Council are made on the recommendation of the responsible Minister of the Crown and take legal effect only when signed by the Governor General.

An Order in Council, per the Emergency Management Act, is necessary to determine that an emergency is of concern to the federal government and to authorize the Minister of Public Safety and Emergency Preparedness to provide financial assistance.

Organization

An overarching term that refers to any eligible small business, nonprofit, charity, or community organization.

See Section 10.2 Recipient-Supported Categories for specific eligibility.

Protective

Designed and maintained to provide intentional protection and/or reduced risk from the impacts of natural hazards on people, property, communities, and essential public assets. Protective may be used to describe a protective asset (a raised driveway, a fire-resistant roof, etc.) or protective infrastructure (dams, dikes, breakwaters, fire breaks, etc.).

Public sector authorities

Provincial/territorial governments and authorities, local and regional governments and authorities (including municipalities, improvement districts, conservation authorities, watershed districts, etc.), and Indigenous governments (including First Nations, Inuit, and Métis governments).

Recipient

The province/territory receiving funding under the DFAA.

Recovery

To restore conditions to an acceptable level of function and with consideration for reducing future disaster risk following a disaster. Recovery efforts should be conducted with a view towards disaster risk reduction and improving long-term resilience and sustainability.

Recovery outcomes

The results of post-disaster efforts and activities (across all levels of public and private sectors) that address the welfare of people, disruptions in systems and networks, damage, and loss of built/natural infrastructure, with the aim of restoring and improving the functioning of impacted communities.

Relief

Services and support specifically aimed at relieving suffering and distress of individuals that is a direct consequence of a disaster.

The relief phase occurs concurrently with the response and recovery phases, but is focused on meeting essential needs and addressing the intangible impacts of disasters on the welfare and well-being of people.

Response

Activities undertaken in the lead up to, during, and immediately after a disaster that are short-term, temporary, and focused on life safety, ensuring essential needs are met, stabilizing the incident, and limiting further damage.

The response phase continues until a level of immediate stability is reached and typically overlaps with the relief and early-recovery phases. Activities carried out during response are primarily focused on providing immediate support and assistance, equally to as many people and in the most expedient way possible, to meet the critical and emerging needs of the disaster-impacted populations.

Restoration

An overarching term that may refer to any eligible repair, reconstruction, and/or replacement initiative. This includes activities that re-establish functional items, assets and infrastructure, both structural and nonstructural, to communities, individuals, and organizations after a disaster.

Risk

The combination of the likelihood and the consequence of a specified hazard being realized; refers to the vulnerability, proximity, or exposure to hazards, which affects the likelihood of adverse impact (Emergency Management Framework for Canada).

Standard replacement value

The cost to restore the functionality and operational capacity of the asset, including to applicable federal, provincial/territorial, and local codes, bylaws, and standards required for the type of project (e.g., a building versus a bridge).

Start date

The date that marks the onset of impacts from the natural hazard. This forms the beginning of the disaster period for the eligible disaster.

Suitably qualified professional

A person with the qualifications, expertise, and/or experience to conduct the activity, as determined by the province/territory.

Unsafe

A home or essential structure that was not directly damaged but now cannot be occupied as a direct result of the eligible disaster due to extreme hazardous conditions, as determined by a suitably qualified professional.

Wildland urban interface fire

Wildland fires that pose an imminent threat to communities and/or essential public infrastructure (such as single access routes to remote communities, bridges, rural airports, etc.) and result in direct disaster impacts to the community (e.g., damage to property, evacuation, loss of essential services, etc.).

2 Introduction

Canada, with its expansive geography, faces a spectrum of risks from natural hazards including from flooding, wildfires, earthquakes, and others. All levels of government, communities, businesses, and individuals share responsibility for reducing disaster risk and building resilience to disasters. Resilience is an ongoing and iterative process, not an end state, that should be embedded into all aspects of government and societal functions. While natural hazards cannot be eliminated and are often important natural phenomena, the goal is to reduce the impact of hazards on people, communities, and the economy.

Despite ongoing efforts to reduce risk, disasters still occur. As outlined in the Emergency Management Framework for Canada, when a disaster exceeds the capacity of one level of government, the government can request assistance from the next level of government.

The Government of Canada is committed to sharing the financial burden of large-scale disasters with provinces/territories. Public Safety Canada is responsible for the administration of the DFAA Program, which is a federal contribution program designed to cost share eligible provincial/territorial expenses for disasters resulting from natural hazards. The financial assistance provided to provinces/territories through the DFAA is intended to complement other strategies for risk management (such as insurance, hazard mitigation, asset management, and risk-informed land use and resource development) and is not intended to support the restoration of assets that were high risk and untenable over the long term. The DFAA should not replace or deter proactive risk management, investments in disaster risk reduction, and sustainable development.

While the DFAA supports the advancement of all five priorities outlined in the Emergency Management Strategy for Canada, as a post-disaster funding program its emphasis is on strengthening recovery efforts by building back better to minimize the impacts of future disasters. Recovery does not necessarily mean a return to pre-disaster conditions; it is an ongoing process designed to achieve an acceptable level of restoration and functionality in communities affected by disasters and to reduce the risk of future damage and loss.

To this end, the Program is designed to interface directly with provincial/territorial disaster assistance programs and to provide financial assistance to provinces/territories to enable timely and effective response, relief, and recovery, and to help accelerate investments in disaster risk reduction and strategic mitigation.

2.1 Authority

Pursuant to section 4(1)(j) of the Emergency Management Act (S.C. 2007, c. 15) (EMA), the Minister of Public Safety and Emergency Preparedness (the "federal Minister") may provide financial assistance to a province/territory if:

• a provincial emergency (as defined by the EMA) in the province/territory has been declared to be of concern to the federal government by the Governor in Council under section 7(j)
• the federal Minister is authorized by the Governor in Council under section 7(d) to provide financial assistance; and
• the province/territory has requested assistance

The DFAA is a discretionary Government of Canada program. The Government of Canada may choose whether to provide federal financial assistance to a province/territory in the event of a disaster and, if the Government of Canada decides such financial assistance is appropriate, the Government of Canada may select the DFAA or such other mechanism or government program which it believes, in its sole discretion, is most appropriate to provide such financial assistance to an affected province/territory.

If the Government of Canada elects to provide financial assistance to a province/territory under the DFAA, then the federal Minister is the final authority regarding decisions related to the administration of the DFAA Program, including but not limited to the eligibility of expenses.

2.2 Program Guidelines

These Guidelines (the "Guidelines") and Program Statements/Schedules provide information relating to the administration and operation of the DFAA, including details on the application and reporting processes, further details on eligible activities and costs, definitions for key terms, and administrative requirements. Public Safety Canada may update the Guidelines and Program Statements/Schedules from time to time as it determines is required and will make them available to provinces/territories online. Updates will be applied on a go-forward basis and not to existing disasters.

Provinces/territories must follow the Guidelines when making requests for financial assistance under the DFAA and for all expenses submitted for the eligible disaster.

The Program includes the following Schedules:

• Schedule 1: High-Risk Areas
• Schedule 2: Insurability
• Schedule 3: Disaster Resilience Enhancements
• Schedule 4: Disaster Risk Reduction Incentive
• Schedule 5: Reporting Requirements

3 Program Description and Policy Objectives

The purpose of the DFAA Program is to assist provinces/territories with the costs of dealing with large-scale, distinct disasters stemming from natural hazards where those costs would otherwise place a significant financial burden on the provincial/territorial economy and would exceed what they might reasonably be expected to fully bear on their own.

Provinces/territories establish their own disaster assistance programs and set their own eligibility criteria. The existence of the DFAA does not in any way constrain a province/territory from providing the assistance it deems appropriate.

The DFAA provides financial assistance towards eligible provincial/territorial response, relief, recovery, and resilience expenses related to the following policy objectives, which are the basis for the five Funding Streams within the Program:

• Enable effective response to protect life safety, property, and the environment and to reduce financial costs and impacts arising from disasters
• Enable timely support for individuals/households, small businesses, non-profits, charities, and other community organizations to meet their essential needs and restore function and essentials
• Enable the timely restoration of essential public assets and services to a functional state and accelerate the restoration of infrastructure that is more resilient to future disasters
• Target disaster relief supports and services to people experiencing significant disaster impacts, reduce barriers for people to access relief and recovery assistance, and support recovery planning; and
• Accelerate strategic disaster mitigation and disaster risk reduction in affected areas

4 Expected Outcomes

Based on the Program objectives, the expected outcomes include the following:

Immediate outcomes

• Provinces/territories receive timely and predictable funding to provide supports and reduce the financial impacts of disasters
• Increased tracking of recovery outcomes for disaster-impacted provinces/territories and communities

Intermediate outcomes

• Increased funding for mitigation, resilience, and supports for people and communities affected by disasters
• Increased consistency in access to relief and recovery supports across Canada
• Increased incentives to reduce disaster risk and increase the protection of high-risk areas

Long-term outcomes

• Provinces/territories, communities, and people have sufficient capacity and capability to manage long-term recovery
• People and communities are more resilient to disasters

5 Eligible Recipients

Provincial/territorial governments are the sole eligible Recipients of funding under the DFAA and therefore, no other applicants can apply to the DFAA program for funding.

Note: The DFAA Program does not provide direct funding to people or communities. Provinces/territories have their own disaster financial assistance programs that provide this direct support and the DFAA reimburses eligible provincial/territorial expenses.

6 Eligible Disasters

6.1 Eligibility Criteria

For a disaster to be considered for the DFAA, the following criteria apply:

• The disaster must have been a distinct disaster (with a definable start, end, and spatial impact) for which the impacts stemmed from a natural hazard
• Eligible provincial/territorial expenses must have met the Program's financial threshold, as defined in Section 7.1
• The province/territory must have requested financial assistance for the disaster; and
• The disaster must have been recognized by the Governor in Council as a provincial/territorial emergency of concern to the federal government and the federal Minister must have been authorized by the Governor in Council to provide financial assistance, as described in Section 2.1

An eligible disaster is one that meets the criteria above, and for which the Government of Canada, in its sole discretion, has determined that the DFAA Program is the appropriate funding mechanism.

The following elements are used as the basis for determining the scope and boundaries of an eligible disaster:

• The disaster period, which is defined as the onset of impacts from a natural hazard (the start date) until the natural hazard is not causing direct damage and/or posing a direct threat to people, communities, and/or essential assets (the end date); and
• The geographic area, whichis defined as the spatial boundaries of disaster impacts from the natural hazard(s)

6.2 Ineligible Disasters

The DFAA does not apply to the following types of disasters as they do not meet the policy intent of being a distinct disaster (with a definable start, end, and spatial impact) for which the impacts stemmed from a natural hazard:

• Underlying conditions or climatic trends that do not result in a distinct disaster (such as El Niño/La Niña conditions, long-term climate change, etc.)
• Chronic or pandemic health emergencies, including recurring or new public health threats
• Infestations, plant and/or animal disease outbreaks
• Violence, civil disorder, international armed conflict, and acts of war; and
• Industrial accidents and technological accidents, spills, infrastructure failures, etc., except where these are the direct result of the impacts stemming from a natural hazard

Note: A provincial/territorial or local declaration of a state of emergency and/or evacuation order is not required for a disaster to be considered for funding under the DFAA.

6.3 Linking Disasters

The DFAA Program is designed to support provinces/territories with distinct, large-scale disasters, where costs would otherwise place a significant burden on the provincial/territorial economy and exceed what they might reasonably be expected to fully bear on their own. The program is not intended to cover small-scale events, even when frequently occurring; these are considered the responsibility of provinces/territories and should be planned for and resourced accordingly. Therefore, the linking of separate events into a single request is not generally permitted.

However, recognizing that the causality and the collective effects of a disaster are highly complex, an exception may be considered by Public Safety Canada under extraordinary circumstances where the cumulative impacts on people and communities occur within the same geographic region when the initial disaster has not yet been stabilized (see explanatory note for examples).

Requests to link events into one application will be considered and determined by the federal Minister based on supporting information provided by provinces/territories and through consultation with appropriate experts as required.

7 Cost-sharing and Limits

7.1 Cost-sharing Procedure

The financial threshold for the Program is defined as the point at which a province/territory's eligible expenses incurred for Funding Streams 1 – 4 exceed a per capita amount^{Footnote 1}. The per capita cost is adjusted annually for inflation and based on annual population data estimated by Statistics Canada.

The federal share of eligible expenses is determined by the formula in Table 1.

7.2 Maximum Amount Payable

The maximum amount payable will be the total federal cost share of all eligible expenses, as per these Guidelines.

7.3 Stacking Limits

The maximum level – or stacking limit – of total government assistance (federal, provincial/territorial and municipal assistance for the same purpose and eligible expenses) shall not exceed 100% of the eligible expenses. This is to ensure there is no duplication of funding.

Costs that are specifically eligible for disaster-related funding under another existing federal program should be submitted to that program and not to the DFAA. Such costs may be considered eligible for funding under the DFAA in special circumstances at the discretion of the federal Minister or delegated authority.

8 General Eligibility

Eligible provincial/territorial expenses are divided into five Funding Streams. See Appendix A for a summary of all Funding Streams.

This section describes eligibility requirements and considerations that apply to all Funding Streams. In addition to these, Sections 9 to 13 describe the five individual Funding Streams, including specific eligibility criteria based on the policy objective, types of activities, conditions, and categories of individuals and entities that provinces/territories are supporting.

Public Safety Canada will refer to the policy objectives of each Funding Stream alongside the eligibility criteria set out below in determining the eligibility of expenses. In the event the eligibility criteria are unclear or ambiguous, the federal Minister will use the policy objectives to make eligibility determinations.

Section 14 describes the process in which provinces/territories can invest in disaster risk reduction in order to work towards cost sharing eligible pre-DFAA threshold expenses.

8.1 General Eligibility Requirements

The eligibility requirements and considerations in this section apply to all Funding Streams.
To be considered an eligible expense, provincial/territorial expenses must:

• Be incurred as a direct result of an eligible disaster
• Support the policy objective(s) of a Funding Stream
• Be eligible under the provincial/territorial disaster assistance programming and have been paid out by the province/territory; and
• Be net costs after insurance payouts and recoveries through fines and/or legal actions

Note: When a province/territory can demonstrate that the duration of legal proceedings will preclude the recovery of such costs prior to the formal close out of a claim, a continuing potential liability will be noted by Public Safety Canada at the time of close out and additional payment will be made for any unrecovered expenses at the conclusion of the legal process.

8.2 General Ineligible Expenses

In keeping with the policy intent of the DFAA, the following expenses are ineligible:

• The cost of repairing, reconstructing and/or restoring assets that were insured or reasonably insurable, as determined by Public Safety Canada. The DFAA are not a replacement or substitute for insurance
• Regular operating expenses, business continuity expenses, and routine maintenance. This includes regular emergency management and hazard season preparedness activities that are the responsibility of provinces/territories
• Intra-governmental fees, payments, and/or administrative costs (when one government department charges another for use of equipment or services). These internal fees/administrative costs are considered internal revenue-generating mechanisms for service departments and do not represent an additional cost to the government, and are therefore not eligible.
• Taxes or profits that accrue to provincial/territorial governments, including provincial/territorial and harmonized sales taxes. The DFAA are not intended to cover mechanisms that generate income or profits for provinces/territories.
• Interest payments on loans or late payments. Managing internal cash flow for provincial/territorial disaster financial assistance programs (including payments to other levels of government, communities, or other entities) is a provincial/territorial responsibility, however Public Safety Canada provides options for advance and progress payments to assist provinces/territories with managing the financial impacts of eligible disasters.
• Damage awards by courts or out-of-court settlements, estate settlements, and any associated costs and legal fees
• Legal and other costs associated with the settlement of estates of individuals killed as a result of a disaster
• Loss of income, revenue, wages, market share, or opportunity. The DFAA are not intended to be a mechanism for business risk management or a substitute for employment or business interruption insurance
• Ongoing expenses incurred before or after the disaster period or outside of the eligible geographic area, as outlined in Section 6
• Expenses that exceed or do not adhere to the stacking limits in Section 7.3

8.3 Insurance by Hazard

Disaster risk management is a shared responsibility across society and therefore it is expected that proactive risk mitigation measures are taken collectively by everyone. The DFAA does not cover insurable losses and is not a replacement or substitute for insurance.

For the purposes of the DFAA, insurable means that insurance coverage for the natural hazard causing the eligible disaster was available and adequate in the region that experienced the disaster. This determination is made at the regional or community level, and not at the individual or property level, on an annual basis (see Schedule 2: Insurability).

To avoid undermining the insurance market and to encourage people and communities to purchase sufficient coverage for their level of risk, where a hazard is deemed insurable, any expenses that could have been covered for that hazard are ineligible. Exceptions may apply for mass evacuation costs or other safety-driven scenarios as described in Funding Stream 1 where it may not be practical or safe to take steps based on the insurability status of individuals, when supports are time-sensitive and critical.

Where individuals, organizations, communities, and governments elect to self-insure or under-insure for natural hazard losses deemed insurable through traditional insurance markets, such losses are not eligible.

In addition to insurability determinations made on an annual basis (as described above), Public Safety Canada may make policy adjustments regarding funding levels and eligibility in the event of significant changes to the insurance market. Provinces/territories will receive advance notice of any such adjustments and these adjustments will not be applied retroactively to active disasters under the DFAA Program.

8.4 Eligibility of Assets in High-Risk Areas

All levels of government and society have a role in ensuring that economic and community development is risk-informed and sustainable in the face of evolving disaster risks. The assistance provided by the DFAA is not intended to contribute to the creation of new disaster risk or delayed action in reducing existing disaster risk.

Therefore, the eligibility of expenses incurred for restoring assets with major damage in high-risk areas (as designated and/or identified by municipal, provincial/territorial, and/or federal authorities) may be restricted where the assets were not appropriately mitigated prior to the eligible disaster:

• To be eligible for the DFAA, if any asset is built in an area designated and/or identified as high risk by municipal, provincial/territorial, and/or federal authorities at the time of construction, it must be appropriately mitigated; and
• Assets with major damage built before the high-risk identification and/or designation are eligible for assistance provided they are not subsequently restored in the high-risk area without appropriate mitigation

Note: appropriate mitigation applies to assets that are structures such as those requiring a permit (buildings, accessory structures, infrastructure) but not assets such as belongings.

More details on determining high-risk areas and eligibility in these areas are in Schedule 1: High-Risk Areas.

Flood hazards

Where provinces/territories have high risk designations that are, at a minimum, at the 1-in-200 year flood event level (i.e., 0.5% annual exceedance probability), this designation is used for the DFAA. Where provincial/territorial designations of high risk are less than 1-in-200 (i.e., high risk set at 1-in-100), the DFAA uses federally identified flood risk areas as the indication of high risk.

Other hazards

The Government of Canada may update this section to include additional federal identification and/or designation of high risks for other types of hazards as it applies to DFAA funding.

8.5 Maximum Repair/Restoration Eligibility

The maximum amount eligible for cost-sharing is the equivalent of the cost to restore damaged assets up to standard replacement value plus eligible disaster resilience enhancements as described in Schedule 3: Disaster Resilience Enhancements. Standard replacement value means the cost to restore the functionality and operational capacity of the asset, including to applicable federal, provincial/territorial, and local codes, bylaws, and standards required for the type of project (e.g., a building versus a bridge).

Provinces/territories may choose to increase the operational capacity of assets, relocate or replace assets with something that has equivalent functionality during recovery because of the opportunity to accelerate long-term infrastructure projects or other priorities (e.g., increasing a highway from two lanes to four lanes). The maximum amount eligible continues to be equivalent to the cost to restore the asset to standard replacement value plus eligible enhancements for disaster resilience (see Schedule 3: Disaster Resilience Enhancements). Any excess costs must be excluded from the DFAA submission.

Additional restrictions for maximum eligibility are applicable in Funding Stream 2.

8.6 Damage Assessments and Project Estimates

Damage assessments: For damaged assets to be eligible (as further described in Funding Streams 2 and 3), a damage assessment must be completed to establish that the damage was incurred as a direct result of an eligible disaster. At a minimum, a damage assessment must:

• Be conducted or verified by a suitably qualified professional with the appropriate level of expertise and experience
• Provide evidence that the damage was a direct result of an eligible disaster
• Include a record of the exact location (e.g., legal land description, address, etc.) of the damaged asset and the nature and extent of the damage (e.g., through geospatial data such as satellite images, visual data such as photos or videos, inspection reports, etc.)
• Indicate the level of damage and specify if it was major damage; and
• Include a description and evidence of the pre-disaster functionality/operational capacity (e.g., through engineer records, blueprints, photos, etc.)

Project estimates: A project estimate must be completed for all structural restoration projects (Funding Streams 2, 3, and 5), which may be included with or separate from the damage assessment. The project estimate must include:

• The project scope; and
• The project budget/cost estimate, based on an appropriate methodology (e.g., cost by square footage, Class I-IV estimates for major engineering works, etc.)

If the restoration project will include changes to the asset's functionality or operational capacity (see Section 8.5), the project estimate must also indicate the estimated cost to restore the asset to standard replacement value.

8.7 Eligible Categories of Individuals or Entities

Provinces/territories may incur expenses to support individuals or other entities that experience disaster impacts. As per the policy objectives of the Program, these expenses are eligible for the DFAA where they are incurred to support the following categories of individuals or entities, subject to additional eligibility considerations under each Funding Stream:

• Public sector authorities, which include:
  • Provincial/territorial governments and authorities
  • Local and regional governments and authorities, and
  • Indigenous governments (including First Nations, Inuit, and Métis governments)
• Individuals/households as defined in Funding Stream 2; and
• Small businesses, non-profits, charities, and community organizations as defined in Funding Stream 2

No agency relationship

If a province/territory chooses to provide funds received through the DFAA to others, including to other public sector authorities, the province/territory is not acting as an agent of the Government of Canada and the Government of Canada will not be responsible for any claim arising from or related to such provision of DFAA funds.

Ineligible entities

The following entities owned or operated by public sector authorities are ineligible:

• Federal government departments as defined in Section 2 of the Financial Administration Act and federal crown corporations; and
• Government-owned enterprises and entities that operate on a for-profit model (i.e., that distribute profits or surpluses to shareholders, which in this case would be the government other than those providing water and sanitary sewage disposal). Examples of ineligible enterprises include but are not limited to liquor and cannabis crown corporations, power utilities, and telecom utilities

8.8 General Eligibility Considerations for Public Sector Authorities

As part of the shared responsibility for disaster risk management, all levels of government are expected to have and maintain equipment, staff, and resources for responding to and recovering from disasters. To the extent practical, public sector authorities are expected to maximize the use of their own resources during a disaster to undertake response and recovery activities that are timely, efficient, and cost effective. Given that private sector resources (e.g., equipment, labour, supplies) are often in short supply in the post-disaster period and may also be required by individuals, businesses, or communities for response and recovery, public sector use of contracted resources should be limited to circumstances where the demands of the disaster exceed the resources of the public sector authority.

The following expenses are generally eligible when required to conduct activities in applicable Funding Streams, subject to further eligibility considerations as outlined in the Funding Streams:

• Equipment and machinery costs. Rental and/or purchase may be considered eligible for applicable usage rates, as outlined in Section 8.8.1
• Rental or lease of facilities (e.g., for application intake centres, facilities for administering disaster assistance claims, temporary rental of space while restoration of damaged structures is in progress, etc.)
• Human resources costs, including salary and benefits, as outlined in Section 8.8.2
• Contracted services (e.g., for operating equipment, supporting administrative functions, etc.)
• Material and supplies (e.g., office supplies, postage, equipment, purchase of additional software licenses or off-the shelf software to support file management, etc.). Costs to develop special software are not eligible
• Travel and field costs (e.g., transportation, accommodations, incidentals, etc.)
• Intergovernmental costs (such as mutual aid between municipalities and/or between provinces/territories, hosting evacuees in another community, etc.)

8.8.1 Equipment usage rates

1. An allowance method is established under which public authorities' equipment costs may be claimed at 65% of the current heavy equipment rental rate ^{Footnote 3} in the province/territory (includes basic maintenance and repair, fuel and lubricants; excludes operator wages and any significant repair costs) for all hours of emergency operation. Time sheets for machinery must be recorded to substantiate the total hours of use
2. If an item had to be purchased because it was not possible or practical to rent or use public sector authority equipment, only the difference between the original purchase price and the remaining market value (i.e., what it could be sold for) is eligible for cost sharing

8.8.2 Human resource costs

1. Human resource expenses are only eligible for time spent directly supporting eligible activities for an eligible disaster
2. For all Funding Streams, eligible public sector human resource expenses may include the following:
   • Temporary and supplementary staff hired for the eligible disaster (e.g., contractors, casuals, term employees, etc.) and all associated salaries, benefits, travel and overtime costs to support eligible activities
   • Overtime that is paid out
3. For Funding Streams 2-5 only, expenses for regular and permanent public sector staff and associated benefits are eligible where they meet the following criteria:
   • The staff position reports into the centralized Emergency Management Organization responsible for coordinating disaster recovery as identified in the jurisdiction's emergency management plans/legislation; and
   • The function of the staff position is primarily dedicated (see explanatory note for further details) to activities under Funding Streams 2 to 5 for the eligible disaster

4. Staff time should be reported under the Funding Stream for which staff time was dedicated to supporting, with the following exceptions:
   • Where eligible staffing costs are for Funding Stream 2 activities, these should be reported under Funding Stream 3 (as part of case management and claim administration)
   • Where eligible staffing costs are applied to multiple Funding Streams and it is not practical to separate that time, staff time may be claimed under Funding Stream 3
5. Where staff are working on multiple disasters, only the portion of time tracked and dedicated to eligible activities for the eligible disaster can be submitted for cost-sharing
6. The following human resource expenses are ineligible:
   • Regular operations and business continuity. Activities such as single department/ministry/agency work focused on delivering that entity's regular mandate (e.g., a health department operations centre activated to coordinate activities across hospitals)
   • Regular and permanent public sector staff time for Funding Stream 1 (response). As a part of their regular emergency management responsibilities, public sector authorities are expected to have the appropriate staff trained and available to respond to disasters
   • Opportunity costs. Opportunity costs such as banked overtime that do not result in additional financial expense to government or costs for backfilling/replacing staff who have been seconded to an eligible disaster

8.9 Acknowledgement

The province/territory must appropriately acknowledge the contribution received from the Government of Canada. Public Safety Canada will work with provinces/territories to ensure a level of visibility and public recognition of both provincial/territorial and federal contributions to projects and initiatives that receive DFAA funding.

9 Funding Stream 1: Response

This Funding Stream supports provinces/territories with eligible expenses incurred to meet the policy objective below.

9.1 Policy Objective

To enable effective response to protect life safety, property, and the environment and to reduce financial costs and impacts arising from disasters.

In general, this Funding Stream is intended to assist provinces/territories by providing funding for activities undertaken in the lead up to and during an eligible disaster that are short-term, temporary, and focused on life safety, ensuring essential needs are met, stabilizing the incident, and limiting damage from an eligible disaster.

9.2 Recipient-Supported Categories

In Funding Stream 1, provinces/territories may incur expenses to support:

• Public sector authorities

9.3 Eligibility Period

The eligibility period for Funding Stream 1 is the disaster period plus up to one year. Pre-impact preparations undertaken in advance of the start date may be eligible, as described in Section 9.5.1.

9.4 Cost Share

Eligible expensesin Funding Stream 1 receive the following federal cost share:

• 80% for provinces
• 90% for territories

9.5 Eligible Expenses

Response activities that meet the policy objective for this Funding Stream are generally eligible, and may include but are not limited to the following (details on each activity are outlined in the subsequent sections):

• Pre-impact preparations (9.5.1)
• Protection of life safety for people under imminent threat from, or affected by, a disaster (9.5.2)
• Emergency supports and services to impacted people (9.5.3)
• Emergency medical assistance (9.5.4)
• Protection of livestock and domestic animals (9.5.5)
• Hazard containment and incident stabilization (9.5.6)
• Clearing and re-establishing safe access routes (9.5.7)
• Temporary operation of essential infrastructure (9.5.8)
• Volunteer coordination and deployment (9.5.9)
• Initial damage and impact assessments (9.5.10)
• Response coordination (9.5.11)

9.5.1 Pre-impact preparations

• Pre-impact preparations are activities undertaken in advance of a disaster to reduce the impact of the natural hazard are eligible if they are part of an eligible disaster
• Pre-impact preparations should be based on a warning or forecast of an impending natural hazard from an appropriate public authority (e.g., a river forecasting centre, meteorological service, natural hazard monitoring service, fire behaviour analysts, etc.). The warning or forecast is intended to distinguish these activities from regular seasonal preparedness and/or regular maintenance activities and/or preparedness activities based on seasonal or long-range forecasts, which are ineligible.
• Pre-impact preparations may include but are not limited to sandbagging, temporary relocation of at-risk assets, deploying sprinklers, and establishing fire breaks

9.5.2 Protection of life safety

• Activities to protect life safety may include but are not limited to search and rescue, evacuations or sheltering-in-place, wellness checks, water and/or air quality testing required as a result of the natural hazard to determine if there is a risk to people

9.5.3 Emergency supports and services

• Emergency supports and services are activities required to provide immediate relief to people affected by an eligible disaster. The focus is on providing expedited assistance broadly across impacted individuals to ensure essential needs are met, further distress is relieved, and personal situations will not continue to deteriorate.^{Footnote 4}.
• Emergency supports and services may include but are not limited to emergency shelter/housing; providing food, clothing, medical supplies, and basic necessities; transporting people and/or goods and supplies required to meet essential needs; registration and inquiry services; and warming, cooling, or clean air centres.
• Emergency supports and services may be delivered by other jurisdictions (not those experiencing the direct disaster impacts) to host evacuees and/or people displaced by the disaster. The costs incurred by host jurisdictions are eligible as part of the province/territory's expenses.
• Emergency shelter/housing means meeting the shelter needs for people who have been evacuated from their homes due to an eligible disaster for the duration of the evacuation alert/order.^{Footnote 5} This may include but is not limited to establishing reception centres, vouchers for stays in hotels and/or short-term rentals, repurposing space in unused dorms or campuses, etc.

9.5.4 Emergency medical assistance

• Emergency medical assistance is the delivery of disaster-related medical assistance and care required by people affected by an eligible disaster and the subsequent management of disaster-related patient casualties, including fatality management. Medical services delivered through normal health infrastructure and resources are ineligible; however, capacity related expenses incurred because of a surge in volume due to the impacts of a disaster are eligible.
• Surge-related emergency medical assistance may include but is not limited to site triage; emergency medical assistance and patient stabilization; medical evacuation and transportation; surge requirements for staffing and facilities; disaster-related fatality management, etc.

9.5.5 Protection of livestock and domestic animals

• Activities to protect the life and safety of pets, livestock, and other domestic animals^{Footnote 6} under imminent threat from, or affected by, an eligible disaster may include but are not limited to transportation, feeding, temporary shelter, temporary care, etc.

9.5.6 Hazard containment and incident stabilization

• Activities to contain the hazard, limit further damage and impact, and stabilize the situation may include but are not limited to constructing temporary berms, containment areas or other temporary protective structures, structural firefighting, short-term security or fencing, temporary law enforcement measures, emergency demolitions, shoring up structures, etc.
• Wildland firefighting costs are only eligible for wildland urban interface fires, which for the purpose of the DFAA is defined as wildland fires that pose an imminent threat to communities and/or essential public infrastructure (such as single access routes to remote communities, bridges, rural airports, etc.) and result in direct disaster impacts to the community (e.g., damage to property, evacuation, loss of essential services, etc.).

9.5.7 Clearing and re-establishing safe access routes

• Clearing and re-establishing safe access routes are activities required to clear public roads and transportation corridors, including navigable waterways, of disaster-related debris (including downed trees, power lines, general debris) and other types of disaster accumulations (such as snow, sediment, standing flood waters, etc.) to re-establish safe access/egress. The focus is on rapidly re-establishing access routes to enable the movement of first responders, response equipment, and essential goods and services in the disaster-affected areas.

9.5.8 Temporary operation of essential infrastructure

• Temporary operation of essential infrastructure includes the urgent activities required to restore temporary access to/egress from essential public infrastructure and to enable it to safely operate and/or to establish a temporary essential service to provide an acceptable level of functionality to support response and immediate recovery.
• Temporary operations may include but are not limited to creating temporary access routes, laying temporary water lines, deploying temporary waste containers or hygiene/sanitation facilities, etc.

9.5.9 Volunteer coordination and deployment

• Activities to deploy, manage, support, and/or coordinate volunteers may include but are not limited to volunteer registration centres, stipends and/or travel expenses for volunteers, reimbursement of volunteer organizations for materials/equipment used to deliver disaster-related response activities and services, deployment expenses, etc.

9.5.10 Initial damage and impact assessments

• Initial damage and impact assessments are activities conducted during the response to understand the initial scope and impact of an eligible disaster and to provide early estimates for loss and damage to inform the need for continuing response activities, emergency support services, and government relief and recovery assistance programs
• Activities may include but are not limited to windshield assessments/surveys, rapid damage assessments, surveillance flights, satellite/aerial imagery, etc.

9.5.11 Response coordination

• Activities required to establish situational awareness and deploy and coordinate the resources needed to respond to an eligible disaster may include but are not limited to activities such as the activation and operation of incident command posts, emergency operations centres, emergency coordination centres, etc.

9.6 Ineligible Expenses

In addition to the general ineligible expenses in Section 8.2, the following expenses are ineligible:

• Routine emergency response and preparedness activities. Public sector authorities are expected to prepare for emergencies and hazards as part of routine operations within their responsibilities, which includes activities conducted in advance of natural hazard seasons (such as prescribed burns, water level or snowpack monitoring, snow/street clearing, storm drain clearing, etc.). Such activities are only eligible when they are pre-impact preparations for an eligible disaster (see Section 9.5.1). Public sector authorities are also expected to have the ability to respond to routine emergencies.
• Salaries and wages for permanent employees. Only overtime costs are eligible for Funding Stream 1 (see Section 8.8.2)
• General wildland firefighting. General wildland firefighting costs are ineligible, unless they are for a wildland urban interface fire as per Section 9.5.6
• Long-term medical treatment. Prolonged or long-term medical interventions for individuals

10 Funding Stream 2: Homes and Small Businesses

This Funding Stream supports provinces/territories with eligible expenses incurred to meet the policy objective below.

10.1 Policy Objective

To enable timely support for individuals/households, small businesses, non-profits, charities, and other community organizations to meet their essential needs and restore function and essentials.

In general, this Funding Stream is intended to assistprovinces/territories by providing funding for expenses incurred to support individuals/households, along with organizations with a place of business in the geographic area affected by an eligible disaster, with costs related to evacuation, displacement, and the restoration of assets to a functional level so regular activities can resume.

Eligible expenses incurred by provinces/territories to support small businesses are intended to support the recovery of communities, not as economic stimulus. Any economic stimulus resulting from the provision of this assistance is an indirect benefit.

10.2 Recipient-Supported Categories

In Funding Stream 2, provinces/territories may incur expenses to support:

• Individuals/households
• Small businesses, non-profits, charities, and other community organizations (collectively referred to as organizations)

10.2.1 Individuals/Households

The DFAA Program is intended to support the meeting of essential needs, which includes the restoration of homes to a functional state, where the home is habitable, safe, warm, and dry. This assistance is not intended to replace all lost/damaged belongings or completely restore homes to their previous state or to be a substitute for insurance; it is limited to restoring essential functions and belongings.

• For the purpose of the DFAA, a home is limited to a principal residence only, and an individual/household can only have one principal residence. Recreational, seasonal, or part-time residences are not eligible as homes because individuals still have access to their principal residence.
• A principal residence is the place (rented or owner-occupied) that an individual/household makes their home; where they live and conduct daily affairs; and is generally used as a mailing address and/or for government programs or records. A principal residence may include but is not limited to the following:
  • A house, townhouse, semi-detached, etc.
  • An apartment, condominium, secondary suite, etc.
  • A fixed-in-place mobile home, trailer, houseboat, etc.
  • Collective or cooperative housing; or
  • A temporary shelter, emergency shelter, transitional housing, etc.
• Where homes are not owner-occupied but are the principal residence for the occupant, the owner(s) of the home can submit expenses for damage to the home.^{Footnote 7}
• The cost to replace uninsurable essential belongings is eligible for people who are unhoused, precariously housed, or transient, whether or not they accompany a home-based claim
• Provincial/territorial definitions of principal residences are eligible for the DFAA where they meet the policy intent above

10.2.2 Organizations

The DFAA Program is intended to support small-scale organizations (which means small businesses, non-profits, charities, and other community organizations) with meeting essential needs so they can resume operations. This assistance is intended to both:

• provide support to organizations that plan to continue to operate in the community, are important contributors to the economic viability and social fabric of communities, and, due to their size, lack the fiscal capacity to recover on their own; and
• help restore livelihoods and means of earning income that are essential for people to recover from a disaster, and not to cover losses for hobbies or occasional sources of income

The assistance eligible under the DFAA will not replace all lost/damaged organization assets, but assists with uninsurable costs to restore places of work and essential organization assets to a basic functional state so the organization can resume its operations. If an organization was struggling financially before the disaster, this assistance may not be sufficient to return to a viable state. Provinces/territories are encouraged to help organizations make recovery decisions that consider long-term financial viability.

• An eligible organization is one with annual gross revenues (or the average annual revenues over the previous three years), as reported for tax purposes, of up to $15 million.^{Footnote 8} This ensures alignment with the policy intent to support small-scale organizations.
• The maximum amount of assistance for organizations eligible under the DFAA is $3 million.^{Footnote 9} This ensures alignment with the policy intent to limit assistance to restoring essential function and organization assets.
• Provinces/territories may waive the $15 million revenue threshold and the maximum amount of $3 million for the organization in the following circumstances and continue to maintain eligibility:
  • For organizations that provide affordable housing, as defined by the provincial/territorial program
  • For communal societies, farming colonies, housing collectives, or similar entities; or
  • For non-profits that deliver an essential service to the community (such as food banks, transition houses, shelters, etc.)
• Eligible organizations that rent short-term recreation, vacation, and/or seasonal residential properties/units only qualify for assistance for such properties if the rental of the impacted property is the fulltime and ongoing function of the organization (e.g., property is generally rented or available for rent full time).

10.3 Eligibility Period

The eligibility period for Funding Stream 2 is the disaster period plus up to three years. Pre-impact preparations undertaken in advance of the start date may be eligible, as described in Section 10.6.1.

10.4 Cost Share

Eligible expensesin Funding Stream 2A (Response) receive the following federal cost share:

• 80% for provinces
• 90% for territories

Eligible expensesin Funding Stream 2B (Restoration) receive the following federal cost share:

• 70% for provinces
• 80% for territories

10.5 Funding Stream 2 Eligibility Requirements

Damage/needs assessment: A damage and/or needs assessment must be completed to establish that losses were incurred as a direct result of an eligible disaster (see Section 8.6).

Records: To be eligible for DFAA funding for supports provided in Funding Stream 2, the province/territory is required to maintain records of location address and/or legal land descriptions of where damage occurred, proof of loss, and compensation provided.

Proof of loss: Provinces/territories may adopt methodologies for providing compensation in this Funding Stream based on proof of loss and standardized compensation (e.g., a schedule of losses, rate sheet, etc.) instead of actual expenses, as long as proof of loss and records of compensation provided are maintained.

Reasonable limits: Provinces/territories are responsible for establishing appropriate limits and/or methodologies to ensure expenses are reasonable in Funding Stream 2, in line with the policy objective of supporting individuals/households and organizations with meeting their essential needs and restoring function to resume activities.

10.6 Eligible Expenses

Response, repair, and restoration activities that meet the policy objective of this Funding Stream are generally eligible, and may include, but are not limited to, the following (details on each activity are outlined in the subsequent sections):

Response (Funding Stream 2A)

• Pre-impact preparations (10.6.1)
• Protection of livestock and domestic animals (10.6.2)
• Evacuation and displacement (10.6.3)
• Financial and psychosocial counselling (10.6.4)
• Cleanup and debris removal (10.6.5)

Restoration (Funding Stream 2B)

• Damage assessments and repair appraisals (10.6.6)
• Temporary access, security, and site stabilization required before repair/reconstruction can begin (10.6.7)
• Repair/replacement of essential belongings for individuals/households, up to standard replacement value (10.6.8)
• Repair/replacement of essential assets for organizations, up to standard replacement value (10.6.9)
• Repair/reconstruction of essential outbuildings, access routes, and essential landscaping to a functional condition (10.6.10)
• Repair/reconstruction of damaged/unsafe homes (10.6.11)
• Repair/reconstruction of structures essential to an organization (10.6.12)

10.6.1 Pre-impact preparations

• Pre-impact preparations are activities undertaken in advance of a disaster to reduce the impact of the natural hazard. These expenses are only eligible for the DFAA if they are part of an eligible disaster
• Pre-impact preparations should be based on a warning or forecast of an impending natural hazard from an appropriate public authority to distinguish these activities from regular seasonal preparedness (people are expected to take reasonable measures to protect their homes and property and conduct regular maintenance, including activities such as clearing gutters, regular tree and vegetation maintenance, etc., and these activities are not eligible for the DFAA).
• Examples may include but are not limited to sandbagging, temporary relocation of at-risk assets, deploying sprinklers, establishing fire breaks, etc.

10.6.2 Protection of livestock and domestic animals

• Activities to protect livestock and domestic animals (including pets) under imminent threat from, or affected by, an eligible disaster may include but are not limited to transportation, feeding, temporary shelter, temporary care, etc.

10.6.3 Evacuation and displacement

• Individual/household or organization expenses incurred while under an evacuation alert or order, and/or while displaced because of major repair or reconstruction work underway
• Expenses for individuals/households may include but are not limited to meals, transportation, accommodation, etc.
• Expenses for organizations may include but are not limited to renting temporary space, renting temporary equipment, etc.

10.6.4 Financial and psychosocial counselling

• Expenses incurred for financial and/or psychosocial counselling as a direct result of an eligible disaster

10.6.5 Cleanup and debris removal

• Activities required to cleanup, remove, and safely dispose of disaster debris and waste necessary to access, safely occupy, and restore the essential function of a home or organization are eligible. This may include the removal of hazardous disaster-related materials (such as mould, smoke damage, etc.) through cleaning, repair, or replacement as recommended by public sector authorities.
• Individuals/households and organizations who cleanup their homes and/or places of work themselves may receive compensation for their time based on the federal minimum wage or the rate established by the provincial/territorial's disaster assistance program
• Activities may include but are not limited to removing fallen trees; clearing building debris, rubble, silt, and other disaster-related debris; and sanitizing walls and appliances, etc.

10.6.6 Damage and/or repair appraisals

• Expenses incurred for hiring a suitably qualified professional to conduct damage assessments and/or repair appraisals, which may include but are not limited to engineering assessments, building inspections, etc.
• Provinces/territories are responsible for determining what type of damage and repair appraisals are appropriate, including the acceptability of virtual site assessments

10.6.7 Temporary access, security, and site stabilization

• Activities required to establish access, temporarily secure, and/or stabilize a home and/or organization before repair/restoration work can begin are eligible, which may include but is not limited to temporary fencing, shoring up a damaged structure, clearing debris from roadways to establish access, etc.

10.6.8 Essential belongings for individuals/households

• The repair/replacement of essential belongings to a functional condition, up to standard replacement value, is eligible
• Unhoused, precariously housed, and/or transient individuals/households are eligible for the repair/replacement of essential belongings
• Essential belongings are established by provincial/territorial disaster assistance programs. Examples may include but are not limited to appliances, clothing, equipment, furnishings, personal electronics, lost/contaminated food in storage, identification cards, essential items of traditional and cultural significance, etc.

10.6.9 Essential assets for organizations

• The repair/replacement of essential organization assets to a functional condition, up to standard replacement value, is eligible
• Essential organization assets are determined by provinces/territories. Examples may include but are not limited to equipment, stock, and assets, and may include industry-specific uninsurable losses such as fishing gear/equipment, wharfs, feed, seed or seed stock, fertilizer, livestock (including managed aquaculture stocks), harvested and stored agricultural or aquacultural products, standard replacement value of uninsurable crops, etc.

10.6.10 Outbuildings, access routes, protective assets, and landscaping

• The repair/restoration of essential outbuildings, protective assets, access routes, and essential landscaping to a functional condition where they contribute to the safe and essential functionality of the home and/or organization, food security, and/or are necessary per applicable federal, provincial/territorial, and local codes, bylaws, and required standards is eligible. This may include costs for land repair and levelling where required for the essential function of the home and/or organization.
• Decorative landscaping, recreational walkways or access routes, and non-essential outbuildings are only eligible if they were damaged by public sector authorities during response or recovery (e.g., cutting fences for access, establishing fire breaks, etc.)
• Essential outbuildings, access routes, protective assets, and landscaping are defined by provincial/territorial disaster assistance programs. Examples may include but are not limited to firewood sheds for home heating, seawalls and berms, driveways, walkways, private access roads, food gardens or greenhouses, fishing sheds, barns, etc.

10.6.11 Repair/reconstruction of homes

1. The repair/reconstruction of the essential elements of a home to a functional condition, up to standard replacement value, is eligible
2. Homes that did not suffer structural damage but are now unsafe for occupancy (as established by a suitably qualified professional) as a direct result of an eligible disaster are eligible

3. Property damaged by public sector authorities when conducting response and/or restoration activities is eligible
4. Beyond applicable federal, provincial/territorial, and local codes, bylaws, and required standards, expenses that increase or enhance the disaster resilience of homes based on disaster resilient guidelines may be eligible. See Schedule 3: Disaster Resilience Enhancements for eligibility details.
   • Homes may be relocated when it is a cost-effective solution to reduce the high disaster risk. For relocation to be eligible for DFAA funding, provinces/territories are required to keep documentation on file demonstrating that the vacated property has been restricted from future development^{Footnote 10} that could re-create the high risk.
5. As per Section 8.4, homes in high-risk areas that experience major damage from an eligible disaster will not be eligible for the DFAA in the future unless they are appropriately mitigated

10.6.12 Repair/reconstruction of structures essential to organizations

1. The repair/reconstruction of structures essential to an organization to a functional condition, up to standard replacement value, is eligible
2. Essential structures that did not suffer structural damage but are now unsafe for occupancy (as established by a suitably qualified professional) as a direct result of an eligible disaster are eligible
3. Property damaged by public sector authorities when conducting response and/or restoration activities is eligible
4. Beyond applicable federal, provincial/territorial, and local codes, bylaws, and required standards, expenses that increase or enhance the disaster resilience of structures essential to an organization based on disaster resilient guidelines may be eligible. See Schedule 3: Disaster Resilience Enhancements for eligibility details.
   • Structures essential to an organization may be relocated when this is the most cost-effective solution to reduce the high disaster risk. For relocation to be eligible for DFAA funding, provinces/territories are required to include documentation demonstrating that the vacated property has been restricted from future development^{Footnote 11} that could re-create the high risk.
5. As per Section 8.4, essential structures in high-risk areas that experience major damage from an eligible disaster will not be eligible for the DFAA in the future unless they are appropriately mitigated

10.7 Ineligible Expenses

In addition to the general ineligible expenses in Section 8.2, the following expenses are ineligible:

• Non-essential assets. Repair/restoration of assets not essential to the function of a home or organization including non-essential outbuildings and structures, decorative landscaping, and private roads and trails and structures that serve only a recreational purpose (e.g., boat houses, swimming pools, decorative gardens and gazebos, activity structures, private seasonal trails, informal dirt paths or tracks, organization-owned recreational properties not essential to the function of the organization, etc.). An exception applies if the damage was caused by public sector authorities during response and/or recovery activities, per Section 11.6.5.

• Luxury or high-end items. Repair/replacement of luxury and/or high-end assets (e.g., works of art, high-end finishings or furnishings, jewellery, high-end electronics and appliances, gaming computers, designer clothing, etc.)
• Personal vehicles. Repair/replacement of personal vehicles
• Erosion. In general, damage caused by erosion is not eligible because most erosion is an expected, ongoing, and continuous process subject to recurrence. However, damage caused by erosion may be eligible, where such erosion results in substantial worsening of conditions and poses a threat to life, safety or critical functions, and restoration/stabilization is the most effective solution. Under these circumstances, appropriate assessments should be conducted to determine whether restoration/stabilization is the most effective solution or whether other mitigative actions should be considered due to continued risks of erosion.

11 Funding Stream 3: Restoring Resilient Infrastructure

This Funding Stream supports provinces/territories with eligible expenses incurred to meet the policy objective below.

11.1 Policy Objective

To enable the timely restoration of essential public assets and services to a functional state and accelerate the restoration of infrastructure that is more resilient to future disasters.

In general, this Funding Stream is intended to assistprovinces/territories by providing funding for activities that address the physical damage of a disaster and are required for the permanent or long-term, timely restoration of public assets to a functional state to enable people, businesses, and communities to recover. Public sector authorities are expected to consider reducing future disaster risk when restoring public assets.

11.2 Recipient-Supported Categories

In Funding Stream 3, provinces/territories may incur expenses to support:

• Public sector authorities

11.3 Eligibility Period

The eligibility period for Funding Stream 3 is the disaster period plus up to five years.

11.4 Cost Share

Eligible expensesin Funding Stream 3 receive the following federal cost share:

• 70% for provinces
• 80% for territories

11.5 Funding Stream 3 Eligibility Requirements

Damage/needs assessment: A damage and/or needs assessment must be completed to establish that losses were incurred as a direct result of an eligible disaster (see Section 8.6).

11.6 Eligible Expenses

Repair, restoration, and recovery activities that meet the policy objective of this Funding Stream are generally eligible, which may include but are not limited to the following (details on each activity are outlined in the subsequent sections):

• Damage assessments and repair appraisals (11.6.1)
• Debris removal and disaster waste management (11.6.2)
• Claim administration and case management (11.6.3)
• Recovery coordination, including contracting, communications, monitoring and evaluating (11.6.4)
• Repair damage caused by public sector authorities during response and/or recovery activities (11.6.5)
• Repair/replacement of public sector equipment and assets, up to standard replacement value (11.6.6)
• Repair/restoration of public spaces and infrastructure (11.6.7)

11.6.1 Damage assessments and repair appraisals

• Activities required to understand the extent of damage to each site and determine repair/restoration needs may include but are not limited to damage assessments, repair appraisals, resiliency assessments, post-disaster repair inspections, etc.
• Provinces/territories are responsible for determining what type of damage and repair appraisals are appropriate, including the acceptability of virtual site assessments

11.6.2 Debris removal and disaster waste management

• Activities required to remove disaster debris and hazardous waste from public spaces and infrastructure and dispose of it safely are eligible. This includes the clearance of debris, wrecking, and major silting caused by the disaster from waterways where such blockages pose a safety hazard and/or have the potential to substantially increase disaster risks to communities.
• Expenses incurred by public sector authorities to cleanup, remove, and safely dispose of disaster debris and waste necessary to access, safely occupy, and restore the essential function of a home or organization are eligible
• Debris and disaster waste management may include but is not limited to debris transportation and disposal, operations to remove and safety dispose of hazardous waste (such as asbestos), contracts or service increases for waste management to handle additional volume, dredging, etc.

Note: If it is impractical in a specific context to separate debris management costs between Funding Streams 1 and 3 (see explanatory note), all eligible debris management costs may be submitted in Funding Stream 3.

11.6.3 Claim administration and case management

• Claim administration and case management expenses that are a direct result of delivering disaster financial assistance for the eligible disaster are eligible, including activities to prepare DFAA claim submissions (e.g., payment requests, financial and non-financial reports, assurance activities required for final submissions, etc.)

11.6.4 Recovery coordination

• Recovery coordination means the activities required for centralized coordination of recovery activities for an eligible disaster, including contract/project management for recovery resources, communications and coordination, and monitoring and reporting on recovery activities

11.6.5 Repair damage from public sector response and/or recovery activities

• The repair of damage to private property caused by public sector authorities during response and/or recovery activities (such as repair fences cut to give first responders access to a site, repairing landscaping damaged to create a fire break, etc.) for an eligible disaster is eligible

11.6.6 Repair/replacement of public equipment and assets

• The repair/replacement of public sector equipment and/or assets to a functional condition, up to standard replacement value, is eligible

11.6.7 Repair/restoration of public spaces and infrastructure

• Public spaces and infrastructure mean public assets that are actively maintained/managed for public benefit. The repair/restoration of public spaces and infrastructure to restore essential function (e.g., operational capacity, access, protective benefits, etc.), up to standard replacement value, is eligible.
• Expenses for activities directly related to and required for repairs/reconstruction are eligible (e.g., environmental assessments, engineering assessments, archaeological monitoring, inspections, decommissioning sites, etc.); however, intra-governmental fees and profits accruing to provinces/territories are not (as per Section 8.2).
• Public spaces and/or infrastructure may be replaced with another type of asset that offers comparable functionality
• Beyond the applicable federal, provincial/territorial, and local codes, bylaws, and required standards, expenses that increase or enhance the disaster resilience of public spaces and infrastructure based on disaster resilient guidelines may be eligible. See Schedule 3: Disaster Resilience Enhancements for eligibility details.
  • Expenses to relocate public spaces and infrastructure damaged by an eligible disaster, where this is a cost-effective solution to reduce the high risk over the life cycle of the asset. For relocation to be eligible for DFAA funding, provinces/territories are required to include documentation to demonstrate that the vacated land has been restricted from future high risk development.^{Footnote 12}.
• Existing protective infrastructure (built and/or natural), where it is in place to protect a community or an essential public asset (such as a bridge or water treatment plant) from the impacts of a natural hazard, is eligible. Examples may include but are not limited to engineered riverbank or shoreline stabilization infrastructure or armouring; conveyance channels, culverts, bioswales, or stormwater retention ponds; engineered breakwaters, revetments, groynes, sills, or river training works; permanent fire breaks; permanent, engineered debris and landslide control structures, etc.
  • Protective infrastructure being replaced with another type of asset as described above (e.g., from riprap to a naturalized riverbank) must offer a comparable or greater level of protection from the natural hazard
  • For natural infrastructure to be eligible for the DFAA, it must be primarily and intentionally used to protect a community from natural hazard risk (e.g., as part of a flood or fire management plan) and the natural infrastructure must be actively managed/maintained for this protective benefit

11.7 Ineligible Expenses

In addition to the general ineligible expenses in Section 8.2, the following expenses are ineligible:

• Increasing operational capacity. As per Section 8.5, the maximum amount eligible is equivalent to the cost to return the asset or infrastructure to standard replacement value

  The exception to this limit is when a public sector authority increases the operational capacity as a resilience enhancement based on disaster resilience guidelines (e.g., increasing the size of a culvert), which may then be eligible as per Schedule 3: Disaster Resilience Enhancements

• Regular maintenance and proper asset management
• Wilderness and/or public spaces that are not actively managed and/or maintained. Damage to wilderness areas or public spaces that are not actively managed/maintained are ineligible, such as unmaintained trail systems in parks, unmaintained roads or access routes, shorelines or coastlines, trees or slopes in remote areas where the damage does not impact access routes, etc.
• Decorative landscaping. Decorative landscaping that is not an essential function (e.g., flower beds in front of a public building are decorative; flower beds in a botanical garden are essential to the function of the building)
• Erosion. In general, damage caused by erosion is not eligible because most erosion is an expected, ongoing, and continuous process subject to recurrence. However, damage caused by erosion may be eligible, where such erosion results in substantial worsening of conditions and poses a threat to life, safety or critical functions, and restoration/stabilization projects are the most effective solution. Under these circumstances, appropriate assessments should be conducted to determine whether restoration/stabilization is the most effective solution or whether other mitigative actions should be considered due to continued risks of erosion.

12 Funding Stream 4: Relief and Recovery Supports

This Funding Stream supports provinces/territories with eligible expenses incurred to meet the policy objective below.

12.1 Policy Objective

To target disaster relief supports and services to people experiencing significant disaster impacts, reduce barriers for people to access relief and recovery assistance, and support recovery planning.

In general, this Funding Stream is intended to assist provinces/territories by providing funding for activities that address the intangible impacts of a disaster (especially for people who experience significant needs arising from disproportionate disaster impacts). The purpose is not to redress social issues and challenges that existed prior to the disaster, but to support provinces/territories with costs relating to temporary increases to existing and/or new services required as a direct result of an eligible disaster to support affected people in meeting their essential needs and in navigating recovery challenges so they can resume normal activities.

In addition to addressing the intangible impacts of disasters, this Funding Stream is intended to assist provinces/territories by providing funding for activities undertaken to conduct risk-informed and collaborative planning for recovery, which is a critical component for improving outcomes for people and communities and increasing resilience in the long term. Recovery planning includes the activities required to understand the specific disaster impacts and engage effectively with communities on the plan. Public sector authorities are expected to make recovery plans publicly available.

12.2 Recipient-Supported Categories

In Funding Stream 4, provinces/territories may incur expenses to support:

• Public sector authorities
• Non-profits, charities, and other community organizations

12.3 Eligibility Period

The eligibility period for Funding Stream 4 is the disaster period plus up to three years.

12.4 Cost Share

Eligible expensesin Funding Stream 4 receive the following federal cost share:

• 90% for provinces/territories

12.5 Funding Stream 4 Eligibility Requirements

Non-profit delivery: For disaster relief services and supports delivered directly by non-profits, charities, and other community organizations (not acting as a contracted service provider for a public sector authority), eligible expenses include incremental increases incurred to deliver eligible activities to people affected by an eligible disaster. To be eligible, the service or support must be non-monetary and within the mandate of the non-profit (e.g., the non-profit is part of the public sector authority's recovery plan, the mission/mandate of the non-profit, charity, or community organization includes the eligible activities in this Funding Stream, etc.).

12.6 Eligible Expenses

Disaster relief services and supports

Disaster relief and recovery support activities that meet the policy objective of this Funding Stream are generally eligible and may be undertaken by public sector authorities and/or non-profits, charities, and community organizations, which may include but are not limited to the following (details on each activity are outlined in the subsequent sections):

• Mental health and psychosocial supports (12.6.1)
• Financial counselling (12.6.2)
• Reducing barriers to and improving access for people to receive disaster-related relief and support services (12.6.3)
• Targeted and temporary supports and/or service increases for populations who are more likely to experience disproportionately negative recovery outcomes (e.g., low-income households) (12.6.4)
• Transition planning for disaster-related services (12.6.5)

Temporary housing and recovery planning (public sector authorities only)

Temporary housing and recovery planning activities that meet the policy objective of this Funding Stream are generally eligible when undertaken by public sector authorities which may include but are not limited to the following (details on each activity are outlined in the subsequent sections):

• Temporary housing for longer-term displacement while homes are being repaired (12.6.6)
• Community recovery and resilience planning, including disaster impact assessments, community engagement, and engagement with Indigenous Peoples (12.6.7)
• Post-disaster lessons learned reports, where the final reports are made publicly available (12.6.8)

12.6.1 Mental health and psychosocial supports

• Mental health and psychosocial services and supports delivered through normal health infrastructure and resources are ineligible; however, capacity related expenses can be eligible when incurred because of a surge in volume due to the impacts of a disaster and/or designed specifically to deliver services to people affected by an eligible disaster
• Activities required to provide mental health counselling and psychosocial services and supports to the people affected by an eligible disaster may include but are not limited to critical incident stress management, virtual or in-person counselling services, psychological first aid, community support groups, increased services for mental health/crisis phone lines, peer support, street outreach, emotional and spiritual services, etc.

12.6.2 Financial counselling

• Financial counselling is intended to help people navigate the complexities of post-disaster recovery and make informed decisions about how they will approach recovery with the goal of reducing long-term negative financial impacts (e.g., too much disaster-related debt). These services are especially important as individuals/households and organizations begin to make long-term recovery decisions.
• Activities required to provide financial counselling services and supports to individuals/households and organizations affected by an eligible disaster may include but are not limited to establishing a financial counselling centre, providing mobile/virtual financial counselling services, vouchers, delivering training, one-on-one and group financial counselling, door-to-door outreach, etc.

12.6.3 Reducing barriers and improving access

• Activities required to reduce barriers for people seeking to access disaster relief services and supports, and improving access so people who are eligible for assistance are able to receive it may include but are not limited to increasing services and supports in remote and rural communities, extending hours and/or offering childcare at disaster assistance centres or community meetings, interpretation and/or translation services, community recovery navigators or pathfinders or case workers to help people who need support navigating disaster assistance programs, dedicated transportation services, etc.

12.6.4 Targeted and temporary supports and/or service increases

• Targeted and temporary supports and/or service increases are activities intentionally designed, developed, and delivered to provide additional resources and opportunities to populations who are more likely to experience disproportionately negative recovery outcomes.
  • For these activities to be eligible for the DFAA, records must demonstrate that the eligible activities are provided to people affected by the eligible disaster and targeted to low-income individuals/households and/or populations who are more likely to experience disproportionately negative recovery outcomes
  • Targeted and temporary supports and/or services provided directly by non-profits must be non-monetary
• Examples of supports delivered by non-profits may include but are not limited to temporary increasing the number of beds at a shelter for people escaping domestic violence, extending hours of operation for help or crisis phonelines, case workers support and advocacy, delivering goods or services to populations experiencing disproportionate impacts from the disaster, etc.
• Examples of supports delivered by public sector authorities may include but are not limited to vouchers for low-income households to meet essential needs, tax deferral or fee waivers for low-income households, etc. As per Section 8.2, loss of income and revenue is not eligible, however, given the policy intent of this Funding Stream, public sector authorities may submit the costs of waived fees where such actions are taken to reduce impacts on populations who are more likely to experience disproportionately negative recovery outcomes.

12.6.5 Transition planning for disaster-related services

• Transition planning means the activities required to prepare for the end of enhanced disaster relief services and to provide referrals for people who may require long-term assistance, and may include but is not limited to client outreach, referrals to other service providers, etc. Transition planning should begin at least six months before supports/services are planned to end

12.6.6 Temporary housing for longer-term displacement (public sector authorities only)

• Temporary housing refers to the housing needs for people who are displaced from their homes for an extended period of time while their homes are being repaired/reconstructed due to impacts from an eligible disaster (i.e. once evacuation orders are lifted for the community and most people have been able to return home)
• Temporary housing provided by public sector authorities may include but is not limited to temporary trailers to meet housing needs, rent supports, hotels or other short-term rentals, expanded services to support unsheltered/precariously sheltered populations, etc.

12.6.7 Community recovery and resilience planning (public sector authorities only)

• Community recovery planning means the activities required to assess the impacts of the disaster, to develop community recovery and resilience strategies and plans and/or to adapt pre-disaster recovery plans to the specific context of the eligible disaster, to develop a data strategy to monitor progress towards recovery, and to effectively engage with and enable community participation in recovery, including engagement with Indigenous Peoples
• Expenses related to the development of the recovery plan (including impact assessments, community engagement, plan development, and development of a data strategy for monitoring outcomes listed above) are eligible in this Funding Stream. Longer term monitoring of recovery outcomes is eligible in Funding Stream 3
• Recovery planning activities may include but are not limited to surveys, post-disaster needs assessment, asset mapping, economic impact studies, open houses and/or town hall sessions, citizen advisory committees, reducing barriers to enable community involvement in recovery planning (e.g., through stipends, offering child care, renting accessible spaces for community meetings, etc.), plan development, etc.

12.6.8 Post-disaster lessons learned reports (public sector authorities only)

• The development of post-disaster lessons learned and/or after action reports are eligible where the final reports are made publicly available

12.7 Ineligible Expenses

In addition to the general ineligible expenses in Section 8.2, the following expenses are ineligible:

• Regular operations and pre-disaster grants. Regular operational costs and grants/funding levels that existed prior to the eligible disaster
• Commissions of inquiry. Commissions of inquiry and other types of inquiries required for legal and/or regulatory reasons
• Internal reports. Internal-facing lessons learned reports, after actions reports, and post-disaster evaluations. However, reports made publicly available to contribute to the development of disaster knowledge and practice in Canada are eligible

13 Funding Stream 5: Disaster Mitigation

This Funding Stream supports provinces/territories with eligible expenses incurred to meet the policy objective below.

13.1 Policy Objective

To accelerate strategic disaster mitigation and disaster risk reduction in affected areas.

In general, this Funding Stream is intended to assist provinces/territories by providing funding for activities that leverage the opportunity of the post-disaster environment to accelerate risk reduction of the highest risks in disaster-affected areas. Activities in this Funding Stream are expected to be connected to the natural hazard that occurred but may include co-benefits to reduce the risk of other natural hazards. These activities can apply to undamaged structures or areas if they reduce the highest risks in affected areas.

13.2 Recipient-Supported Categories

In Funding Stream 5, provinces/territories may incur expenses to support:

• Public sector authorities

13.3 Eligibility Period

The eligibility period for Funding Stream 5 is the disaster period plus up to five years.

13.4 Funding Envelope and Cost Share

The maximum amount of funding eligible in this Funding Stream is 25% of the total eligible expenses in Funding Streams 1, 2, and 3.

Cost share levels in this Funding Stream are determined on the basis of risk (see Section 7.1).

Eligible activities in high-risk areas (as designated and/or identified by municipal, provincial/territorial, and/or federal authorities) that reduce the identified/designated risk receive the following federal cost share:

• 90% for provinces
• 100% for territories

Eligible activities focused on reducing general disaster risks receive the following federal cost share:

• 50% for provinces
• 60% for territories

13.5 Funding Stream 5 Eligibility Requirements

Disaster-affected areas: To be eligible in this Funding Stream, mitigation and risk reduction activities must reduce risks to disaster-affected areas. Activities may be conducted upstream or in another geographic area where it can be demonstrated that they effectively reduce risk in the disaster-affected area.

Cost effective: To be eligible in this Funding Stream, the province/territory is required to provide an explanation of the cost effectiveness of the project and its impact on reducing the disaster risk.

13.6 Eligible Expenses

Disaster mitigation and risk reduction activities that meet the policy objective of this Funding Stream are generally eligible, which may include but are not limited to the following (details on each activity are outlined in the subsequent sections):

• Structural disaster mitigation and protective natural infrastructure (13.6.1)
• Non-structural disaster mitigation, including relocation (13.6.2)
• Community or property-level mitigation activities, including rebate/subsidy programs (13.6.3)

Funding Stream 5 may be used as a top up for risk reduction or disaster mitigation in repair, reconstruction, and/or relocation projects for damaged assets (which are eligible in Funding Stream 2 and/or 3). Expenses must first be applied to their maximum eligibility in Funding Stream 2 and/or 3 before Funding Stream 5 is accessed as a top up for the remainder of the project to ensure cost share levels are respected.

13.6.1 Structural disaster mitigation and protective natural infrastructure

• Structural disaster mitigation means physical construction to reduce or avoid possible impacts of natural hazards, or the application of engineering techniques or technologies to achieve hazard resistance and resilience in structures or systems.^{Footnote 13} This may include conventional, hybrid, and/or protective natural infrastructure designed to reduce disaster risk.
• For protective natural infrastructure or hybrid infrastructure (natural and conventional) to be eligible in this Funding Stream, it must offer risk reduction benefits at a level that is comparable to or greater than conventional infrastructure in terms of risk reduction and cost, as verified by a suitably qualified professional (e.g., an engineer)
• Examples may include but are not limited to may include but is not limited to engineered riverbank or shoreline stabilization infrastructure or armouring; conveyance channels, culverts, bioswales, or stormwater retention ponds; engineered breakwaters, revetments, groynes, sills, or river training works; permanent fire breaks; permanent, engineered debris and landslide control structures, etc.

13.6.2 Non-structural disaster mitigation

• Non-structural disaster mitigation means changing the way people interact with disaster risk through policies and regulations, land use planning, moving assets out of high-risk areas, risk awareness, and education
• Examples may include but are not limited to buy outs and relocation, natural hazard mapping, public education and risk disclosure, updating land use regulations and bylaws, etc.
• For relocation projects, expenses directly related to the relocation are eligible, including but not limited to land purchase/expropriation, property purchase (and related compensation), demolition/decommissioning the site, etc.

13.6.3 Community or property-level mitigation activities

• Community or property-level mitigation activities support people with implementing property-level disaster mitigation measures, which may include financial incentives such as rebates/subsidies. These supports can be made available to people in the geographic area even if they did not experience direct damage from the eligible disaster
• Examples may include but are not limited to grants, rebates, subsidies, forgivable loans, distribution of sump pumps, etc. for people to undertake property-level mitigation such as installing sump pumps or backflow preventers, elevating driveways, upgrading to more fire-resistant materials, etc.

13.7 Ineligible Expenses

In addition to the general ineligible expenses in Section 8.2, the following expenses are ineligible:

• Increasing operational capacity. Increasing the operational capacity of an asset or infrastructure if the increase does not directly reduce disaster risk
• Regular maintenance and asset management

14 Disaster Risk Reduction Incentive

The Funding Streams above describe how the DFAA Program cost shares eligible provincial/territorial expenses that exceed the Program's financial threshold (the financial threshold is outlined in Section 7.1). In addition to these cost share levels, the DFAA Program includes the potential for federal funding valued at up to 40% of the Program’s financial threshold through a Disaster Risk Reduction incentive based on a defined set of risk reduction actions taken prior to the disaster.

The purpose of the Disaster Risk Reduction incentive is to recognize the importance of pre-disaster investments that reduce disaster response and recovery costs and lessen the impacts of disasters on people, businesses, and communities. Provinces/territories that undertake high-impact activities, as determined by Public Safety Canada, to reduce disaster risk in advance of a disaster may be eligible for federal cost-sharing on their pre-threshold eligible expenses during an eligible disaster.

Schedule 4: Disaster Risk Reduction Incentive describes the details of the Disaster Risk Reduction Incentive, including high-impact activities and funding levels.

Note: The DRR incentive is an optional component of the DFAA Program and provinces/territories may choose not to participate.

15 Application Requirements and Assessment

15.1 Request for Financial Assistance

Any request for financial assistance under the Program must be made by the province/territory within six months of the end date of the disaster. The request takes the form of a letter from the Premier of the province/territory to the Prime Minister or from the provincial/territorial Minister Responsible for Emergency Preparedness to the federal Minister. The federal Minister may consider and grant exceptions to this timeline on a case-by-case basis and in their sole discretion.

This letter must contain:

• A request for federal financial assistance under the DFAA
• A general description of the disaster and its impacts (including the approximate geographic area and disaster period)
• Agreement to adhere to the DFAA Guidelines; and
• Initial cost estimates

If the federal Minister considers the DFAA to be the appropriate mechanism for financial assistance and an Order in Council is approved, a letter is sent to the province/territory confirming this support and including the dates of the agreement.

15.2 Contribution Agreement

The provincial/territorial request for financial assistance (1), the confirmation letter from the federal Minister to the province/territory (2), the return of a copy of this letter signed by the province/territory (3), together with the current version of the DFAA Guidelines (4), constitute a contribution agreement for the Program. A separate agreement will be entered for each eligible disaster. The effective date of each agreement is the date the Order in Council is made. Each agreement will be in place for five years following the effective date.

As described in the Funding Streams, eligible expenses may be incurred from the start date of the disaster (or immediately prior for pre-impact preparations as described in Funding Streams 1 and 2), which is prior to the effective date of the agreement. If the agreement is not executed (i.e. if any of the four required elements are not completed), Public Safety Canada cannot reimburse provinces/territories for costs incurred.

15.3 Assessment

Within three months following an approved Order in Council, the province/territory must send Public Safety Canada updated disaster period and the geographical area details, substantiated with appropriate evidence, which must be agreed to by Public Safety Canada. Once confirmed, these form the boundaries for the eligible disaster in order to assess the eligibility of activities under each Funding Stream (except for pre-impact preparations, which may occur prior to the start date as per Sections 9.5.1 and 10.6.1).

In exceptional circumstances, a province/territory may submit a request to update the disaster period and/or geographic area that will be considered and determined by Public Safety Canada in its sole discretion.

16 Basis and Timing of Payments

Upon request from a province/territory, advance and/or progress payments may be issued to ensure successful delivery of the program. Final payments are made to close out Funding Streams and for the final claim.

Payments are based on prior receipt of financial and non-financial reporting and may be subject to eligibility reviews, audits, or other assurance processes. Schedule 5: Reporting Requirements provides details on financial and non-financial reporting requirements.

16.1 Advance/Progress Payments

Advance payments are based on forecasted expenses (and may also include actual costs), as reported by provinces/territories and reviewed by Public Safety Canada. Progress payments are based on actual expenses. All payment requests are subject to a risk assessment conducted by Public Safety Canada.

Payment amounts depend on whether the payment request is based on estimates or actual costs and the risk profile of the payment request:

• An advance payment is available early on in the DFAA claim and is designed to be easily accessed to provide provinces/territories financial support in managing the initial costs of the disaster. An advance payment includes up to 30% of the federal share of estimated eligible costs, based on the risk profile of the payment request. In exceptional circumstances at the discretion of Public Safety Canada, additional advance payment amounts may be provided.
• Progress payments based on actual expenses are available annually once the advance payment amount has been drawn down. Based on the risk profile of the payment request, a holdback may be required. Provinces/territories should submit progress payment requests with annual progress reports (see Section 17.1).

16.2 Final Payments

Once the costs in a Funding Stream and/or the overall claim are finalized, the province/territory submits a request for a final payment. The final payment reimburses the province/territory for eligible expenses incurred less any advance and/or progress payments and/or repayments owed under the DFAA Program.

When a province/territory submits a request for a final payment, the request must be validated by a provincial/territorial auditor and/or third party auditor in accordance with generally accepted accounting practices. The validation must demonstrate that:

• Claimed expenditures are incurred, paid, and are adequately supported; and
• The claim reconciles to provincial/territorial audited financial statements

A final payment is made following receipt and acceptance of all reporting requirements and any required reviews, audits, or other assurance activities.

Any costs submitted for expenses that were incurred after the eligibility period for a Funding Stream (unless the province/territory has requested and received an extension) and/or costs submitted after the final payment has been issued are not eligible for cost-sharing.

16.3 Time Limit on Claim Settlement

A limit of five years from the date the Order in Council is made is established for the provincial/territorial submission of the final claim; however, provinces/territories may be able to submit Funding Streams for final payment sooner as they are completed.

The province/territory may request an extension on a specific Funding Stream and/or the overall claim time limit from Public Safety Canada, accompanied by a rationale and supporting documentation of outstanding projects and amounts.

Where the five-year limit on claim submission has passed and the province/territory has not requested and been granted an extension, Public Safety Canada will initiate the claim close out procedures in cooperation with the province/territory. Notwithstanding the previous sentence, if the province/territory submits an extension request after the 5-year time limit has elapsed, the federal Minister may consider and grant such extension on a case-by-case basis and in its sole discretion.

16.4 Overpayment

Every effort will be made to avoid overpayments. However, if an overpayment is discovered following Public Safety Canada's review of the final claim, Public Safety Canada will initiate action to recover the overpayment by:

• requesting that the province/territory reimburse the Government of Canada as soon as practicable; and
• reducing future Government of Canada payments claimed by the province/territory under the DFAA, should the province/territory not comply.

Furthermore, should overpayment occur as a result of subsequent recoveries following restitution of expenses, court cases or insurance, these will be considered in the final payment or subsequent overpayment reimbursement.

17 Reporting

Provinces/territories are required to submit financial and non-financial reports and documents, which may be used by Public Safety Canada to support eligibility determinations for any expenses for which a province/territory seeks funding under the DFAA and by the Government of Canada to report publicly on progress towards eligible activities, including recovery outcomes.

17.1 Progress Reports

Provinces/territories are required to submit progress reports for each eligible disaster on an annual basis. The purpose is to provide an update on costs, track progress being made, and flag any potential issues, which provides an opportunity for provinces/territories and Public Safety Canada to work together to address any concerns. Schedule 5: Reporting Requirements provides a template for progress reports, which must include:

• A high-level description on the major activities planned, in progress, and completed for each Funding Stream
• A summary of actual and projected expenses per Funding Stream (to be used to support Public Safety Canada's financial planning for the Program)
• A disclosure of other sources of federal funding applied to DFAA eligible activities and projects
• An interim report on applicable outcomes, as described in Schedule 5

Progress reports are used by Public Safety Canada to help confirm compliance with elements of the Guidelines and to report publicly, in aggregate across the program, on progress towards eligible activities, including recovery outcomes.

Public Safety Canada may require additional information on a more frequent basis for the purpose of administering the Program. Further details are outlined in Schedule 5.

Provinces/territories may submit progress payment requests (if required) with annual progress reports.

17.2 Final Reports

To initiate a close out of any Funding Stream and/or of the overall claim, provinces/territories must submit the following:

• A request to Public Safety Canada for a final payment for the Funding Stream(s), as described in Section 16.2
• A disclosure of all confirmed sources of federal funding applied to DFAA eligible activities and projects
• A final report on applicable outcomes, as described in Schedule 5

Schedule 5: Reporting Requirements describes the mandatory requirements for final reports and provides a template.

18 Accountability, Audits, and Reviews

Both provinces/territories and Public Safety Canada are responsible for exercising due diligence in how public sector funds are spent. This section outlines the responsibilities of each party for ensuring appropriate controls and oversight are in place to ensure responsible use of public funds.

18.1 Provincial/Territorial Management Control Framework

Provinces/territories are expected to have a management control framework for their disaster financial assistance programs for ensuring that expenses submitted to the Program are eligible and in accordance with the Guidelines and with Generally Accepted Accounting Practices.

At a minimum, a management control framework includes the following:

• Controls to ensure that expenses submitted to the DFAA were incurred as a direct result of an eligible disaster, including controls to exclude expenses incurred outside the disaster period, geographic area, and eligibility period
• Controls to ensure compliance with the financial provisions of the DFAA Program and to ensure expenses that are ineligible for the DFAA are excluded, so that only DFAA-eligible expenses are submitted to Public Safety Canada; and
• Controls to detect errors in claims (e.g., errors related to eligibility of the individual/entity seeking assistance, double entry, claim of expenses already paid or covered by another funding source, insurance proceeds, remove provincial/territorial sales tax, etc.)

18.2 Public Safety Canada Risk-Based Approach

Public Safety Canada is responsible for:

• Providing oversight to ensure the Program operates according to its authorities and the Government of Canada's financial management requirements, including due diligence to confirm that funds provided under the Program are used as intended to support the Program's policy objectives; and
• Providing policy clarification to provinces/territories as needed.

In accordance with the Treasury Board Policy on Transfer Payments, Public Safety Canada uses a risk-based approach to fulfill its responsibilities and conduct assurance activities.

Throughout the DFAA claim, Public Safety Canada conducts ongoing assurance activities that may include the following:

• Conducting a risk assessment prior to an advance/progress payment
• Reviewing progress reports; and
• Following up on questions and/or areas of concerns

The purpose of these activities is to support provinces/territories on an ongoing basis to ensure claims for DFAA funding are in compliance with the Guidelines.

Upon receiving a request for final payment, Public Safety Canada may conduct audits and/or other reviews or processes that focus on the general eligibility of expenses submitted under each Funding Stream in the Program. Public Safety Canada determines the appropriate level of financial verifications required based on an assessment of risk that considers the expenses being submitted as well as other factors, including the provincial/territorial management control framework. Public Safety Canada reserves the right to conduct periodic audits, reviews, or other assurance processes it deems necessary and appropriate, and to make public any reports, audits, or evaluations related to this Program.

19 Resolution of Disputes and Disagreements

If a resolution cannot be achieved, the matter will be referred to the federal Minister, who is the final arbiter of any such dispute or disagreement.

The federal Minister will act in good faith in making a final decision that is consistent with the purposes and general criteria set out in the DFAA Terms and Conditions and the DFAA Guidelines.

Appendix A: Summary of Funding Streams

The following table provides a summary of the five Funding Streams.

Date modified:

2025-03-20