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FEMA’s Hazard Mitigation
Assistance Grant Programs
Jeff Ward, JSWA
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Hazard Mitigation Grant
Program (HMGP)
Overview
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HMGP Introduction and Summary
• Section 404 of the Stafford Act
• Administered by FEMA
• Funding: Total Federal assistance, subject to sliding scale formula:
–Up to 15% of the first $2 billion
–Up to 10% for amounts $2B and $10B
–Up to 7.5% for amounts between $10B and $35.33B
–These grants are 75% federally funded/25% local
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HAZARD MITIGATION GRANT PROGRAM
Projects must:
Solve a problem
Have a beneficial impact
Be cost effective
Substantially reduce future risk
Be environmentally sound
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Benefit Cost Analysis
(BCA)
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“Calculated using the Net Present Value”
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
now $50k $50k $50k $50k
$25.4
$18.1
$12.9
$92k
$35.6
Present value of 20 years of losses is $92k not $200k
BEHIND THE CURTAIN
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Benefit Cost Analysis
Benefit Cost Analysis:
• Avoided future losses > Cost
• FEMA software - BCA done on each individual home
• For buyouts - Substantial Damage Waiver or
$276,000 waiver
– MUST BE IN FEMAs SFHA
• For Elevations - $175,000 waiver – MUST BE IN FEMAs SFHA
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Benefit Cost Analysis
• No waiver for Mitigation/Reconstruction
• It the property does not meet above waivers (In
SFHA)
– Elevation Certificate and Flood Insurance Study
– At least three prior known flood losses to complete the
required BCA
• If outside SFHA – At least three prior known flood losses to complete the required BCA
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Mitigation of Flood
Damaged Homes
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Mitigation of Flood Damaged Homes
Primary Mitigation project types
•Home Acquisition and Demolition
•Home Elevation
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The acquisition of an existing at-risk structure and conversion of
the land to open space.
Property Acquisition and Structure Demolition
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Voluntary Participation
•FEMA Buyouts are strictly voluntary – No homeowners are ever forced to sell
– No owner relocation assistance
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The Typical Buyout Process
• Appraise
– Pre-Flood
– DOB
• Generate offer
• Appeal Process
– Owner paying for an independent appraisal
– State has final say in value
• Title search
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The Typical Buyout Process
• Closing
– Properties must be vacant at the time of closing
– Necessary paperwork to transfer clear title
– Owner receives net proceeds
• FEMA Deed Restrictions
• Demolish buildings and clear sites
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Timeframe
•From Appraisal to Closing
–Can be completed in 90 Days
•Assuming
–Seller is ready to sell
–No title issues
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Elevation
• One of the most common retrofitting methods is
elevating
• When a house is properly elevated, the living area
will be above all but the most severe floods (such as
the 500 year flood).
• Almost any home can be elevated
• Most elevations in TX are slab on grade
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• Raise existing structure two foot
above base flood elevation (BFE)
• Project must be cost-effective
• Elevation methods:
– Continuous foundation walls
– Piles, piers, posts, or columns
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Elevation
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• Benefit
–Prior flood loss
–Depth in the floodplain
• Cost
–Method of elevation
–Lift height
–Vertical footprint 18
Elevation
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Architectural and engineering fees
Permitting
Clearing necessary vegetation
Excavation around the dwelling
Lifting or jacking building
Temporary support cribbing
Eligible Elevation Costs
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Disconnecting , extending, and reconnecting utilities
Constructing a compliant foundation
Cost associated with elevating the building to the
required height
Restoring the lawn, walks, driveways, and other
surfaces outside the perimeter exterior walls, if
damaged by the elevation process
Eligible Elevation Costs
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• Costs related to building additions or auxiliary structures
• Construction of new decks or porches
• Any improvements for purely aesthetic reasons, unless
required by the EHP compliance review
• Additional landscaping for ornamentation beyond what
existed on the site prior to construction of the project (e.g.,
trees, shrubs)
Ineligible Costs
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Understand who is interested
Acquisition or Elevation
Complete Benefit Cost Analysis
Aggregate BCR > 1.0
Obtain Council Approval based on interest/eligibility
Application for interested/cost effective homes
Submit application by Due date
Wait for results of review
What’s Next
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Elevations – Before and After
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Questions?
Prepared by Jeffery S. Ward and Associates, Inc.