Laserfiche WebLink
<br />year horizon for projection of economic activity. The affluence factor is <br /> <br />assumed to be in effect with or without a project. <br /> <br />Prevention of damages to future increases in content value of <br /> <br />residential structures is a legitimate benefit when a flood control <br /> <br />project protects residential development. (See page A21, ER 1105-2-40) <br /> <br />These steps should be followed in calculating increases in residential <br /> <br />content value over time: <br /> <br />1. Determine average content value of existing homes and compare <br /> <br />them with average structural values. This is often in the 35-55% <br /> <br />range. <br /> <br />2. Use OBERS regional growth rate for per capita income as the <br /> <br />growth rate for increasing the value of residential contents in <br /> <br />the future. <br /> <br />3. The future value of contents cannot exceed~5% of structural <br /> <br />value nor can the growth period be projected beyond 50 years. <br />4. Assume damages (and benefits will increase at the same rate as <br /> <br />content value. <br /> <br />5. Determine average annual benefits for protecting existing <br /> <br />residential contents. Then, calculate the benefits for <br /> <br />protecting projected increases in content value. <br /> <br />An example of benefit calculations using the affluence factor <br /> <br />procedure is given in Chapter X on other benefits. <br /> <br />VI-10 <br />