Section 406 hazard mitigation is defined as incorporating cost-effective betterments into a permanent work project to harden or protect disaster damaged facilities from repetitive damage in future similar disaster events.
The 406 hazard mitigation typically applies only to permanent work projects and is generally applied on the part(s) of the facility that were damaged by the disaster. However, in certain instances, an eligible mitigation measure may not be an integral part of the facility. FEMA will consider these exceptions on a case-by-case basis.
Section 406 proposed mitigation measures that do not exceed 15% of the total project costs are considered cost-effective and eligible. In addition, certain mitigation measures contained in Appendix A of FEMA Recovery Policy 9526.1 are considered cost-effective as long as they don’t exceed 100% of eligible project repair costs. For measures where the cost exceeds the two previously referenced criteria above, cost effectiveness may be demonstrated through an acceptable benefit cost analysis methodology performed by the Grantee or Subgrantee.