FEMA Media Library
LFD Date: July 25, 2023
FIRM Effective Date: Jan. 25, 2024
States: Arkansas
FEMA Deputy Administrator Erik Hooks greets Gurpreet Singh Sodhi, Chief Executive Officer, United Sikhs. (FEMA photo)
This guidance provides instructions for how to complete a cost-effectiveness narrative needed for FEMA to validate the cost-effectiveness for each HMA program and how to determine the number of people benefitting from a proposed mitigation project.
FEMA Policy 206-23-001
This policy supports the implementation of federal guidance provided by OMB Circular A-94, Appendix D to update the discount rate used in Benefit-Cost Analyses (BCA) of hazard mitigation projects. In accordance with the principles of OMB Circular A-94, FEMA will adopt the A-94 discount rate of 3.1%. It also includes streamlined cost-effectiveness determination methods, such as allowing subapplicants to submit a cost-effectiveness narrative, rather than a BCA, for projects costing less than $1 million. FEMA will continue to engage with OMB to improve implementation of FEMA’s cost effectiveness requirements to enable FEMA’s strategic goals and accelerate risk reduction and adaptation nationwide.