FLOOD04112

• County: Statewide
• Community: Nationwide
• Basin: Statewide
• Title: Hazard Mitigation Grant Program Desk Reference
• Date: 10/1/1999
• Prepared By: FEMA
• Floodplain - Doc Type: Historic FEMA Regulatory Floodplain Information

Section 7: Project Eligibility

Demonstrates
Cost-
Effectiveness

~

Other
Eligibliity
Factors

Contributes to
a Long-Term
Solution

NFIP
Participation

Page 7-4

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Projects funded by the HMGP must be cost-effective. 44 CFR lists a
number of minimum criteria that projects must meet in order to be eligible
for funding under the HGMP. Among these is that projects must be "cost
effective iM substantially reduce the risk of future damage, hardship,
loss, or suffering resulting from a major disaster..

1II

44 CFR

For most potential projects. the State performs and submits a "benefit-cost analysis.
that determines that the benefits to be gained are at least equal to, if not greater than,
the cost of the project. FEMA encourages States to use the benefit-cosl computer
software that FEMA provides to conduct analyses. States may use another
methodology if approved by FEMA. FEMA will verify the State's analysis or, for
Managing States, review the summary results.

Section 9 of this handbook provides further detail on benefit-cost analysis.

TIP: See the benefit-cost guidance and training for
complete information.

In addition to the five minimum eligibility criteria, the following factors are also
considered when determining project eligibility:

. Contributes to a long-term solution;

. National Flood Insurance Program participation; and

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. Duplication of programs.

. Applicant agreement to property acquisition requirements.

Mitigation measures funded under the HMGP are intended to provide a long-term or
permanent solution. Ideally, the measure would be effective for the life of the property
being protected.

Erecting an emergency berm on a beach to prevent wave damage to structures is a
short-term solution, as opposed to a long-term solution, such as elevation or relocation
of the structures.

HMGP funds for construction or land acquisition cannot be awarded in certain
communities which do not participate in the National Flood Insurance Program (NFIP).
Federal grants cannot be given for acquisition or construction purposes if the site is
located in a designated Special Flood Hazard Area which hes been identified by the
Director for at least 1 year and the community is not participating in the NFIP. This
includes communities suspended from participation.

If a community with mapped Special Flood Hazard Areas qualifies for and enters the
program after the disaster declaration, the State may consider their grant application.
FEMA recommends that States give priority to those communities that were
participating and in good standing in the NFIP prior to the disaster and are complying
with program requirements during reconstruction.

Non-participating communities may submit projects to the HMGP only if the projects
are located in unmapped areas or areas outside of the Special Flood Hazard Area.

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HtJZJJrd Mitigation Grant Program Desk. Reference-Draft