Since the federal government has recently placed all seismic retrofit grants on hold, many public entities are wondering how to proceed in funding their seismic retrofit projects. VIE can assist an organization to fund seismic retrofit projects, as we have for many organizations that have pursued seismic retrofit projects independent of FEMA for decades.
The Shift In Funding Responsibilities
Previously, FEMA, short for the U.S. Federal Emergency Management Agency, has been responsible for providing aid and money to areas affected by natural disasters. Recently, the federal government shifted this burden to states, cities, and individuals, stating that preparedness is most efficiently owned and managed at state, local, and individual levels.
Thus, while FEMA grants may be on hold, other funding options for seismic retrofits are available.
The Importance Of Seismic Retrofitting
With these recent changes, entities may wonder if seismic retrofitting should still be pursued. The answer is yes.
Seismic retrofitting is a critical investment to safeguard employees, protect property, and comply with local regulations. The cost of seismic retrofitting is a fraction of potential earthquake damage costs. The MultiHazard Mitigation Council estimated that buildings above 2015 IBC requirements could result in a national average BCR of 4, meaning that for every $1 spent on seismic retrofitting, $4 can be saved in future earthquake damage costs.
As such, seismic retrofitting is a smart investment to improve life-safety and protect businesses from the financial impact of earthquakes.
Funding Options For Seismic Retrofits
While FEMA grants have been a prominent source of funding for seismic retrofits, there are still multiple options available for funding for seismic retrofits now that FEMA grants are on hold. Such funding includes: bonds, capital improvement plans, grants from non-public organizations, state or municipality funding, and more.
Bonds
Public entities often issue bonds annually. Seismic retrofitting projects can be included in these bond issuances, allowing for the funding of retrofits. Such approaches can result in an increase in a favorability rating from bonds, which can lead to better borrowing conditions.
VIE can assist public entities in preparing and presenting seismic retrofit projects in the approach being used to public meetings, ensuring community buy-in and obtaining public approval for the projects.
Capital Improvements
Most seismic retrofits qualify as capital improvements, if seismic retrofitting is bundled with other capital improvement projects, the costs of retrofitting can be significantly reduced, making it easier to include in long-term capital plans.
VIE can assist in integrating seismic retrofitting into broader capital improvement plans, ensuring that these projects are accounted for effectively. Many times older facilities that may have seismic safety issues may also have other issues related to outdated interior layouts, mechanical, electrical and plumbing systems that are nearing the end of their useful lives. By including these other upgrades with seismic retrofitting, the useful lives of these facilities may be substantially extended.
This avoids the considerable expense of constructing new facilities in cases where facility retrofit is a more economical alternative.
Grants From Non-Public Organizations
There are funding opportunities from private and non-public entities, such as charitable foundations, particularly for specific projects such as hospital retrofits or other essential infrastructure.
VIE can assist public and private entities in navigating the process of applying for grants from non-public sources, which could be viable alternatives to FEMA funding. .
State Or Municipality-Specific Funding
Many states or municipalities offer specific funding for disaster prevention, such as seismic retrofitting projects in earthquake-prone areas. VIE has extensive experience working with local legislature bodies to obtain state or municipality specific funding.
Value Engineering
VIE can utilize expertise gained from more than 40 years of experience in performing many different aspects of seismic retrofit projects to help identify the most economical method to achieve seismic safety objectives. Many different approaches are available to achieve more resilient structural systems, VIE can help optimize projects to achieve greater cost-benefit solutions.
VIE Can Assist In Obtaining Funding For Seismic Retrofits
As one can see, just because FEMA is on hold for the moment doesn’t mean an entity cannot obtain funding for seismic retrofits. These options provide a range of alternatives for funding these projects and enhancing the safety and resiliency of infrastructure in earthquake-prone areas.
VIE would welcome the opportunity to meet with your organization to discuss your projects and options to fund retrofits that may be needed. If you are trying to obtain funding for seismic retrofits now that FEMA grants are currently on hold, contact us today to learn more about potential funding opportunities available to you.
