G. Cost-Effectiveness

By statute and regulations, mitigation activities under HMGP, HMGP Post Fire, BRIC and FMA must be cost-effective; specific requirements for each program can be found in Part 10. FEMA generally assesses the cost-effectiveness of hazard mitigation projects through a BCA—a quantitative analysis used to assess the cost-effectiveness of a hazard mitigation measure by comparing the project’s avoided future damage to the costs over the project lifetime. Considering cost-effectiveness at the earliest possible stage of the decision-making process can facilitate project scoping and improve project design. For more information on cost-effectiveness, refer to Part 5.