The main source for disaster mitigation funding at the federal level is the Federal Emergency Management Agency (FEMA). FEMA offers three mitigation grant programs to assist states and local communities in implementing hazard mitigation measures. These are the Pre-Disaster Mitigation Program, The Hazard Mitigation Grant Program and the Flood Mitigation Assistance Program.

Congress is also currently considering additional federal programs for funding efforts to make homes more resistant to disasters. These proposed programs are specifically targeted at low- and moderate-income households.

To switch to reading about state programs, click here.

Click on the links below to learn more about each of these federal financing sources: Pre-Disaster Mitigation Grant Program Hazard Mitigation Grant Program Flood Mitigation Assistance Program HUD Disaster Recovery Enhancement Fund Potential future sources of federal funding targeted at low- and moderate-income households

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Pre-Disaster Mitigation Grant Program

The Pre-Disaster Mitigation (PDM) Program was authorized under the Disaster Mitigation Act of 2000 to provide investments prior to disasters to reduce the vulnerability of communities to future disasters. [1] The program provides funds for hazard mitigation planning and projects that reduce the overall risks to people and buildings. It is mainly focused on hazard mitigation efforts that will reduce the reliance on funding from disaster declarations. PDM grants are awarded on a competitive basis. There are no state allocations, quotas, or other formula-based allocation of funds.

PDM funds can be used to fund a variety of hazard mitigation activities, including: developing state, local, or tribal hazard mitigation plans; constructing certain types of minor and localized flood
control projects to protect critical facilities; retrofitting structures to protect them from floods, high
winds, earthquakes, or other natural hazards; voluntarily acquiring real property for conversion to open space in perpetuity; and constructing safe rooms inside schools or other buildings
in tornado-prone areas. [2] FEMA provides 75 percent of the eligible costs, with PDM grantees covering the remaining 25 percent with non-federal sources, with the exception of Community Development Block Grant (CDBG) funds that have been allocated to the respective state or locality. [3]


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Hazard Mitigation Grant Program

The Hazard Mitigation Grant Program (HMGP) provides funding specifically after a disaster to implement mitigation measures to help reduce damages to public or private property from future disasters. In most cases, FEMA can offer states up to 15 percent of the total disaster recover grants it has awarded them. FEMA can fund up to 75 percent of the eligible costs of each project. States or local grantees must provide a 25 percent match, which, as with the PDM Program, can come from non-federal sources or CDBG program funds The eligible uses are similar to those under the PDM program.


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Flood Mitigation Assistance Program

Flood Mitigation Assistance (FMA) Program provides funds for projects that reduce or eliminate the long-term risk of flood damage to buildings, homes, and other structures that are insured under the National Flood Insurance Program (NFIP). Similar to the PDM and HMGP, FEMA provides 75 percent of the funding for eligible costs, and the grantee is responsible for the other 25 percent.


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HUD Disaster Recovery Enhancement Fund

HUD has established a $312 million Disaster Recovery Enhancement Fund (DREF) to encourage states to undertake long-term disaster strategies that focus on reducing the risk of damage from future natural disasters. [4] This fund is reserved for states that spend their CDBG funds on specific disaster recovery activities likely to reduce the extent of damage in the future. These projects may include:

• Buyout payments for homeowners living in high-risk areas;
• Optional relocation payments to encourage residents to move to safer locations;
• Home improvement grants to reduce damage risks (property elevation, reinforced garage doors and windows, etc.);
• Improving and enforcing building codes; and
• Developing forward-thinking land-use plans that reduce development in high-risk areas.

Unlike regular CDBG allocations, DREF funds cannot be used as a substitute or match for FEMA HMGP funds. Also, unlike funds provided through HMGP, which can generally be used statewide, DREF funds can only be used in counties officially covered by a disaster declaration in 2008. [5] Despite this potential geographic limitation, these funds provide a valuable source that can, in part, support disaster-resistant home upgrades and improvements for low- and moderate-income households.


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Potential Future Sources of Federal Funding Targeted at Low- and Moderate-Income Households

Although the various disaster mitigation programs offered through FEMA can and have benefited lower income households and vulnerable populations, they are not specifically targeted to these populations. Providing hazard mitigation support for low- and moderate-income households is particularly important because it is these households that have fewer resources and are less likely to upgrade their homes to make them more resistant to natural disasters.

In 2009, Congressman Bennie Thompson of Mississippi introduced two bills that target disaster mitigation funds to low- and moderate-income households. These are (1) The Pre-Disaster Hazard Mitigation Enhancement Program Act of 2009 and (2) The Hazard Mitigation for All Act of 2009.

The Pre-Disaster Hazard Mitigation Enhancement Program Act of 2009. This act would create a competitive grant program to complement the PDM program. Specifically, it would fund states with projects directly supporting low- and moderate-income residents. The majority of these funds would be dedicated to measures protecting against hurricane damages and would serve lower income households living in both single-family and multifamily homes. The program would provide funding preference for those states disaster mitigation plan already in place.

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The Hazard Mitigation for All Act of 2009. This act would create a grant program through the Department of Housing and Urban Development (HUD) to provide mitigation support for public housing and HUD-assisted private properties, such as those supported through Section 8 programs. The program would provide grants to local public housing authorities that would be used to finance disaster-resistant retrofits for public and private Section 8 properties, with a proposed 25-percent match required from the respective state. Private properties that receive grant funds would also be required to give preference to public housing and Section 8 residents for a period of five years following receipt of the funds.

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You are currently reading: Federal resources Other pages in this section: State resources Click here to view a list of key resources related to financing efforts to make homes more resistant to natural disasters.

[1] FEMA's Pre-Disaster Mitigation Program: Overview and Issues. [PDF] 2009. By Francis X. McCarthy and Natalie Keegan. Washington, DC: Congressional Research Office.
[2] In Action -- The Pre-Disaster Mitigation Grant Program. [PDF] 2006. Washington, DC: Federal Emergency Management Agency.
[3] FEMA FY 2010 Hazard Mitigation Assistance Unified Guidance
[4] Department of Housing and Urban Development news release. June 10, 2009.
[5] Notice for Additional Allocations and Waivers Granted to and Alternative Requirements for 2008 Community Development Block Grant (CDBG) Disaster Recovery Grantees. [PDF] 2008. Department of Housing and Urban Development.