The Federal Emergency Management Agency (FEMA) Benefit-Cost
Analysis (BCA) program, developed in the early 1990s, is used to
determine the cost effectiveness of proposed mitigation projects
for several FEMA mitigation grant programs. In 2008, FEMA
collaborated with many Applicants and subapplicants on enhancements
to update values in the software and to make it more efficient. The
purpose of the BCA Reference Guide is to provide BCA software users
with an overview of the grant programs, application development,
benefits and costs, and the location of BCA guidance documents and
helpful information. This guide also outlines sources of additional
information needed to use the software to obtain a Benefit-Cost
Ratio (BCR) for a single project or multiple projects. Hazard
mitigation is any sustained action taken to reduce or eliminate
long-term risk to people and property from natural hazards and
their effects. This definition distinguishes actions that have a
long-term impact from those that are more closely associated with
immediate preparedness, response, and recovery activities. Hazard
mitigation is the only phase of emergency management specifically
dedicated to breaking the cycle of damage, reconstruction, and
repeated damage. As such, States, Territories, Indian Tribal
governments, and communities are encouraged to take advantage of
the funding provided by Hazard Mitigation Assistance (HMA) programs
in both the pre- and post-disaster periods. The Department of
Homeland Security (DHS) and FEMA HMA programs provide a critical
opportunity to reduce the risk to individuals and property from
natural hazards, while simultaneously reducing reliance on Federal
disaster funds. HMA guidance provides continuity between five FEMA
mitigation grant programs: the Hazard Mitigation Grant Program
(HMGP), Pre-Disaster Mitigation (PDM), Flood Mitigation Assistance
(FMA), Repetitive Flood Claims (RFC), and Severe Repetitive Loss
(SRL) programs. Each HMA program was authorized by a separate
legislative action, and as such, each program differs slightly in
scope and intent, but all of them provide significant opportunities
to reduce or eliminate potential losses to State, Tribal, and local
assets. HMGP may provide funds to States, Territories, Indian
Tribal governments, local governments, and eligible private
non-profits following a Presidential major disaster declaration.
The PDM, FMA, RFC, and SRL programs may provide funds annually to
States, Territories, Indian Tribal governments, and local
governments. While the statutory origins of the programs differ,
all share the common goal of reducing the risk of loss of life and
property due to natural hazards. This publication was prepared with
contributions by the URS Group, Inc., Gaithersburg, MD.
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