FEMA Hazard Mitigation Grant Program (HMGP)

On average, every $1 spent on mitigation results in a $6 return of avoided future losses. The National Institute of Building Sciences' Multihazard Mitigation Council announces a 6:1 mitigation Benefit Cost Ratio.
Benefit-Cost Ratios
National Benefit-Cost Ratio Per Peril
*BCR numbers in this study have been rounded
Overall Hazard Benefit-Cost Ratio
Federally
Funded
6:1
Beyond Code
Requirements
4:1
Riverine Flood
7:1 5:1
Hurricane Surge
Too few grants 7:1
Wind
5:1 5:1
Earthquake
3:1 4:1
Wildland-Urban Interface Fire
3:1 3:1

Section 404 - Hazard Mitigation Grant Program

The purpose of HMGP is to help communities implement hazard mitigation measures following a Presidential Major Disaster Declaration in their areas. The key purpose is to enact mitigation measures that reduce the risk of loss of life and property from future disasters.
  • The 404 funding is used to provide protection to undamaged parts of a facility or to prevent or reduce damages caused by future disasters.
  • The State receives a portion of the Total Federal share of the declared disaster damage amount (20%), which it uses to fund projects anywhere in the State, regardless of where the declared disaster occurred or the disaster type.
  • The entire state — not just declared counties — may qualify for 404 mitigation projects.
  • 404 grant funding may be used in conjunction with 406 mitigation funds to bring an entire facility to a higher level of disaster resistance, when only portions of the facility were damaged by the current disaster event.
  • The 404 grant is managed by the State under funding provided for in the Stafford Act. Section 404 mitigation measures are funded under the Hazard Mitigation Grant Program (HMGP).
  • All subapplicants for HMGP must have a FEMA-approved Mitigation Plan at the time of obligation of funds for mitigation projects.

Section 406 - Public Assistance Program

If your facility suffers earthquake or hurricane damage, flood damage, or other destruction from disaster, and is eligible for permanent repairs, you may also be eligible for additional cost shared assistance under Section 406 of the Stafford Act for cost-effective measures that will prevent future damage to your facility. FEMA strongly encourages you to consider hazard mitigation measures as part of the repair and restoration of your facility. While your basic funding will return your facilities to their pre-disaster design, a hazard mitigation plan will improve on the pre-disaster design (upgrades required to meet applicable codes and standards are part of your basic eligible restoration work, not considered as hazard mitigation measures).

A hazard mitigation proposal is a written description and cost estimate of what it will take to repair the damage in such a way as to prevent it from happening again. The proposal is submitted with the Project Worksheet and describes in detail the additional work and cost associated with the mitigation measure.

Mitigation measures can be technically complex and must be thoroughly evaluated for feasibility, therefore you may want to ask your FEMA Public Assistance representative for technical assistance in identifying hazard mitigation measures or in preparing a proposal.

Hazard mitigation measures must meet one of the following tests of cost‐effectiveness:
  • Cost no more than 15% of the total eligible cost of eligible repair work for the damaged facility.
  • Cost no more that 100% of the total eligible cost of eligible repair work and on the list of FEMA‐approved mitigation measures.
  • Have a benefit‐cost ratio of equal to or greater than 1.0.

Benefit Cost Analysis

A Benefit Cost Analysis (BCA) is an important part of the funding of a mitigation measure. tidal basin has the expertise to assist organizations in completing a BCA and the overall mitigation applicant.

A BCA is a method for determining the potential beneficial effects of a mitigation measure and comparing them to the cost of that measure. The result desired is a reduction in future damages from future hazards.

The BCA may also be used to evaluate alternative projects to determine the best alternative. The end result of a BCA is a benefit cost ratio (BCR), which is derived from a project’s total net benefit, divided by its total cost. The BCR is a numerical expression of the cost-effectiveness of the project. BCR’s of 1.0 or greater have more benefits than their costs, and are therefore considered cost-effective.

bca
FEMA will only consider funding hazard mitigation measures that are cost-effective and are demonstrated through an approved FEMA methodology such as FEMA’s BCA toolkit, available on the FEMA website.

Benefits of Hazard Mitigation Grant Program HMGP

  • Supports Risk Reduction Activities
  • Provides a Long-term Solution to a Problem
  • Improves Resiliency
  • Offers a Cost-effective Solution
  • Eliminates the Impact Of Future Events
  • Helps Avoid Repetitive Damage From Disasters

How Tidal Basin Can Help

  • Assist on developing an effective mitigation strategy.
  • Identify opportunities and maximize your mitigation grant funds.
  • Prepare the hazard mitigation grant application, including written description and estimate.
  • Upon approval, implement the grant agreement.
  • Manage and monitor the progress of the project and ensure compliance.
  • Conduct final inspections and prepare for closeout.

Who We
Have Helped

Discover in detail how our team of professionals is playing an instrumental role in helping hundreds of organizations, governments, communities, not-for-profits, and private sector clients prepare and maximize their financial recovery sooner from the worst disasters.
The 2004 hurricane season was a difficult one for Lee County in Southwest Florida. We were fortunate, indeed, to have retained your firm to process FEMA claims following Hurricane Charley. Especially effective was the coordinated approach you used in seeking financial relief from separate sources such as FEMA, FHWA, NRCS and insurance. ...The knowledge needed to deal with FEMA regulations is mind-boggling. It was obvious you and your team are very much up to speed with these regulations, procedures and processes.Without hesitation, we would recommend you and your firm to anyone faced with the task of processing large and/or complex loss claims in a disaster environment. Your firm's ability to bring together the right team of professionals at the right time resulted in the creation of a superior product. Your thoroughness, knowledge, attention to detail, and logical approach provided us with the assurance that we would obtain the maximum reimbursement from all eligible sources.
Tony Majul
Budget Director - Lee County, Florida
I'm certain if we had not had access to your excellent services, we would have settled for a much smaller sum for the loss of our facility, and it would have taken much longer to reach a settlement.
Sue Schaefer

Severe storms dumped massive amounts of rain in he Southern Tier of New York State in the summer of 2006, resulting in widespread flooding. 

When Hurricane Katrina struck, bringing with it widespread flooding and damage, the City of Slidell took the brunt of the storm. Located just 30 miles north of New Orleans, the two cities were both hit full-force by the destructive power of the hurricane. Unfortunately for Slidell, the nation first focused on the recovery of New Orleans. The City of Slidell didn't begin its recovery operations under Adjusters International had been hired, bringing the expertise required to turn the recovery process around.

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