Pre-Calculated Benefits for Project Cost Analysis of Repetitive Loss Properties
Hazard mitigation projects that are eligible for funding under FEMA’s Hazard Mitigation Assistance (HMA) programs must be evaluated to determine if they are cost-effective. However, the effort necessary to demonstrate cost-effectiveness for projects can increase the burden on subapplicants, particularly those with limited access to resources.
To help reduce this burden, pre-calculated benefits is a streamlined methodology in which FEMA calculates pre-determined cost-effectiveness values. Using these pre-calculated benefits eliminates the requirement for applicants to conduct a separate benefit-cost analysis for eligible projects. Pre-calculated benefits therefore reduce the time and resources needed to complete and review cost-effectiveness for projects.
A recently released FEMA memo makes the pre-calculated benefit for acquisitions ($323,000 per structure) available for Repetitive Loss and Severe Repetitive Loss properties regardless of their location in the Special Flood Hazard Area.
Expansion of this methodology helps reduce complexity to FEMA’s Hazard Mitigation Assistance (HMA) grant programs and continues to demonstrate FEMA’s commitment to delivering equitable outcomes. The efforts increase the availability of mitigation opportunities for underserved and at-risk communities to increase resilience against future disasters.