Subpart N: Hazard Mitigation Grant Program (HMGP)

Summary: Subpart N governs the Hazard Mitigation Grant Program (HMGP), which provides funding for projects that break the cycle of "damage-repair-damage." Unlike Public Assistance, HMGP is "competitive" and requires a formal "State Mitigation Plan" to be in place. It mandates a "Benefit-Cost Analysis" (BCA) to prove that the project will save more money in the future than it costs to build today. This subpart allows for "Innovative" projects, such as nature-based solutions, drought mitigation reservoirs, and property acquisitions (buyouts). It emphasizes "Environmental and Historic Preservation" (EHP) compliance, requiring a higher level of review than standard repairs. HMGP is the "Strategic Fund" that allows a municipality to build back better and more resiliently. Subpart N ensures that these projects are technically sound and provide a "positive return on investment" for the taxpayer.

Subpart N governs the HMGP, which provides funds for long-term risk reduction measures post-disaster. While Public Assistance repairs what was broken, HMGP funds proactive projects like buyouts, elevations, or drainage improvements. CFOs must ensure a positive Benefit-Cost Analysis (BCA) to secure this funding.

  • Key Takeaways & Call to Action:
  • BCA Compliance: Use the FEMA BCA Toolkit to prove that the project’s future benefits outweigh the current implementation costs (Ratio > 1.0).
  • Environmental & Historic Preservation (EHP): Do not start construction until the EHP review is complete, as pre-approval work is ineligible.
  • Funding Percentage: HMGP is typically funded as 15% of the total PA and IA costs for the disaster; plan your "wish list" accordingly.
  • CTA: Commission a "Benefit-Cost Analysis" for your top three mitigation priorities within 90 days of the disaster declaration.

  • §206.434 Eligibility
  • Call to Action: You must develop a "Benefit-Cost Ratio" (BCR) of 1.0 or greater using FEMA’s approved software to qualify for HMGP funds. This section is essential because it is the "Mathematical Gate" for mitigation funding; no BCA means no project. You must collect "historic damage data" and "engineering loss estimates" to fuel the BCA model. This section proves that your "Fiscal Resiliency" strategy is grounded in data-driven risk reduction. It is the most critical section for securing funding for "proactive" infrastructure projects like lake expansions.

44 CFR 206 - FEDERAL DISASTER ASSISTANCE

Subpart N: Hazard Mitigation Grant Program (HMGP)

206.430 General

Provides guidance on administering grants under Section 404 of the Stafford Act to reduce risk of future damage.

Establishes the legal authority for long-term mitigation funding distinct from immediate restorative Public Assistance.

206.431 Definitions

Defines 'Activity', 'Enhanced State Mitigation Plan', and 'Local Mitigation Plan'.

Provides the technical vocabulary for eligibility; specifically distinguishes between standard and enhanced planning levels.

206.432 Federal grant assistance

Calculates funding based on 7.5% to 15% of the total Stafford Act grant amount.

Defines the fiscal pool; States with an 'Enhanced Plan' can increase this ceiling to 20% of disaster costs.

206.433 State responsibilities

Requires the appointment of a State Hazard Mitigation Officer and an approved administrative plan.

Mandates the organizational structure and approved plan necessary before any HMGP funds can be awarded.

206.434 Eligibility

Sets project criteria: must be cost-effective, solve a problem independently, and align with approved plans.

Hard gate for funding; projects that merely analyze hazards without providing a functional solution are ineligible.

206.435 Project identification and selection

State identifies and prioritizes projects that reduce future disaster losses or protect critical facilities.

Ensures that limited federal funds are directed toward high-impact measures that offer the greatest risk reduction.

206.436 Application procedures

Requires submittal of all project applications to FEMA within 15 months of the disaster declaration.

Establishes a critical administrative deadline; missing the 15-month window can forfeit access to the mitigation pool.

206.437 State administrative plan

Details the required procedures for notifying applicants, determining eligibility, and monitoring progress.

Provides the mandatory 'playbook' for program implementation; funds are withheld until this plan is FEMA-approved.

206.438 Project management

Recipients must submit quarterly progress reports and certify work completion for payment claims.

Ensures accountability; failure to complete measures without justification results in no Federal funding for the project.

206.439 Allowable costs

Governs costs per 2 CFR 200 and allows for pre-award planning costs in limited circumstances.

Fiscal boundary; implementation costs incurred prior to the grant award are strictly ineligible.

206.440 Appeals

Establishes two levels of appeal for HMGP decisions, requiring submittal within 60 days of notice.

Preserves the legal right to challenge eligibility denials or cost disallowances through the Assistant Administrator level.