Develop a Rebuilding Plan: Knowing your program and funding options is vital

ADJUSTERS INTERNATIONAL .COM D I S A S T E R R E C O V E R Y T O D A Y b. While all parties must remain mindful of relative costs and benefits and prudent use of federal disaster funds, a calculation of benefits and costs, using the FEMA approved computer model, no longer is necessary for justification of Section 406 funds. c. Mitigation measures must be determined to be cost-effective. Any one of the following means may be used to determine cost-effectiveness: 1. Measures may amount to up to 15% of the total eligible cost of the eligible repair work on a particular project. 2. Certain mitigation measures (see Appendix A) will be determined to be cost-effective, as long as the mitigation measure does not exceed the eligible cost of the eligible repair work on the project. 3. For measures that exceed the above costs, the Grantee or Subgrantee must demonstrate through an acceptable benefit/ cost analysis that the measure is cost-effective. d. Proposed projects must be approved by FEMA prior to funding [emphasis added]. They will be evaluated for cost effectiveness, technical feasibility, and compliance with statutory, regulatory and executive order requirements. In addition, the evaluation must ensure that the mitigation measures do not negatively impact a facility’s operation or risk from another hazard. e. Cost of meeting applicable codes/standards in accordance with 44 CFR 206.226 is distinct from mitigation funding [emphasis added]. f. There may be no duplication in funding between Sections 404 and 406. Therefore, the Grantee and Subgrantee must be able to identify specific hazard mitigation work that will be accomplished with funding through Section 406. Section 404 funding may not duplicate that work, although Section 404 may be additive and accomplished on Section 406 facilities. The appropriate split on a project between funds under Sections 404 and 406 is a FEMA decision. Paragraph C.2 (above) references pre-approved mitigation measures that have been determined to be cost effective. Appendix A (www. fema.gov/government/grant/ pa/9526_1.shtm) outlines a list including infrastructure systems such as drainage, bridges, sanitary and storm systems, treatment plants, potable water, and electric power distribution, among others, as well as some items related to buildings. This list is constantly being updated, and it is important for applicants to remain familiar with its contents. Section 404 Hazard Mitigation The previous paragraphs discussed measures to consider for facilities that were damaged during the triggering event. FEMA also allows for mitigation measures to unaffected facilities or programs through Section 404 of the Robert T. Stafford Act. It is

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