Stabilize and strengthen the FEMA Pre-Disaster Mitigation (PDM) program so that cities have financial resources to safeguard housing
The Challenge
The physical vulnerability of cities to natural disasters also makes them economically vulnerable. Nearly seven million homes on the Atlantic and Gulf coasts alone are at potential risk of damage from a major hurricane, with potential reconstruction costs of more than $1.5 trillion. Across the country, communities grapple with exposure not just to flooding but also to extreme heat, tornadoes, fire and more. Federal, state and local governments could support resilience initiatives to mitigate these risks, achieving collateral benefits for citizens today while protecting them from future shocks. A study by the Multi hazard Mitigation Council found that each dollar invested in safeguarding homes and infrastructure prior to a severe weather event reduces future losses by roughly six dollars. Despite proven economic and safety benefits of proactive risk mitigation, federal support for these efforts is lacking, and local demand for federal risk mitigation resources overwhelms available supply. President Trump’s budget outline for FY2018 explicitly called out the FEMA Pre-Disaster Mitigation program on the list of programs that should be reduced or eliminated.
FEMA’s Pre-Disaster Mitigation (PDM) program is the only source of federal support specifically, for pre-disaster mitigation. The program supports city, state and tribal efforts to mitigate a variety of natural hazards, such as floods, earthquakes and wildfires. The Congressional Budget Office recently found that PDM-supported projects could meaningfully reduce future need for post-disaster assistance from the Federal Government, saving taxpayer dollars in the long run. The program has enjoyed solid bipartisan support in Congress, in part because it has proven to be cost-effective, generate long-term savings and reduce loss of life and property.
Action Steps
Legislative
The House and Senate Appropriations Homeland Security Subcommittees and the House and Senate Homeland Security Committees should authorize and appropriate robust funding for the FEMA Pre-Disaster Mitigation program. This effort should build on the precedent set by the bipartisan Pre-disaster Hazard Mitigation Act of 2010, which authorized the appropriation of $250 million annually for 2010–2012.
Funds could specifically:
- Target communities with significant flood risk (including history of repeated loss) that lack the means to invest in mitigation to reduce long-term risk exposure.
- Prioritize green infrastructure to build protection from flooding and increase community resilience.
Executive
HUD should provide guidance to allow cities to better leverage CDBG dollars for private investment in housing. For example, HUD should help cities establish CDBG-supported revolving loan programs that generate income and redeploy the capital over time. HUD should solicit grantee feedback on how to update its housing and economic development regulations to make it easier to use HUD CDBG to leverage private investment in properties with both residential and commercial uses, attracting renters of various income levels.
