Laserfiche WebLink
<br />Section 9: Cost-Effectiveness <br /> <br />Thorough <br />Assessment <br /> <br />Potential <br />Projects <br />Requiring No <br />Benefit-Cost <br />Analysis <br /> <br />How FEMA <br />and States <br />Determine <br />Cost- <br />Effectiveness <br /> <br />Page 9.2 <br /> <br />e <br /> <br />In nearly all cases it is necessary to do a benefit-cost analysis as part of the eligibility <br />determination. The process of assessing cost-effectiveness is not only required, but is <br />also a good way to get an overall understanding of the project being evaluated. Nearly <br />all aspects of a project-from the risks it seeks to mitigate (the benefits), to its costs, to <br />its performance--must be recognized and quantified as part of a benefit-cost analysis. <br /> <br />The FEMA publication How To Determine Cost-Effectiveness of Hazard Mitication <br />Proiects (often called 'the yellow book,") suggests a series of 10 questions as <br />precursors to doing an analysis. Responding to the questions gives a 'snapshot" of <br />the proposed project, and so is a worthwhile exercise before starting an analysis. <br /> <br />Projects that are submitted as 5% Initiative projects do not require a quantitative <br />analysis. The contents of the narrative statement will include: <br /> <br />1. Identification of expected mitigation benefits; <br /> <br />2. Approximate value of benefits. if possible; and <br /> <br />3. Description of why State and applicant expect that the project will likely reduce <br />future disaster losses. <br /> <br />See Section 7 for further detail on 5% Initiative projects. <br /> <br />Additionally, the acquisition and demolition of substantially damaged structures from <br />the Special Flood Hazard Area requires no benefit-cost analysis. <br /> <br />e <br /> <br />FEMA has developed a set of eight computer programs as a tool to determine cost- <br />effectiveness by doing benefit-cost analysis for projects that mitigate effects of natural <br />hazards. While each of the modules is tailored to a particular type of mitigation project, <br />they all use established risk modeling and economic principles as the basis for <br />calculating the benefits of a project and comparing these to its costs. <br /> <br />Contact your FEMA regional office for information about these computer modules: <br /> <br />. Riverine Very Limited Data (VLD) Module <br />. Riverine Limited Data (LD) Module <br />. Riverine Full Data (FD) Module <br />. Hurricane Wind Module <br />. Coastal A-Zone Module <br />. Coastal V-Zone Module <br />. Earthquake Module <br />. Earthquake Limited Data (LD) Module <br /> <br />e <br /> <br />Hazard Mitigation Grant Program Desk Reference-Draft <br />