Description: Provides capitalization grants to state governments, who in turn, establish revolving funds that provide low-interest hazard mitigation loans to local governments. This will provide a source of funding for local governments to carry out projects that reduce disaster risk and decrease the loss of life and property, the cost of insurance claims, and federal disaster payments.
There is a $5 million cap on grant awards on a per-project basis and a maximum 1% interest rate, with repayment terms up to 20 years after project completion, or up to 30 years for projects benefiting low-income geographies.
Eligible Recipients: States initially receive funding, then provide funds to local governments for eligible projects. States must submit an intended use plan to FEMA annually to demonstrate how they will administer the revolving loan funds.
Eligible Uses: Projects that mitigate hazards from: drought and prolonged, intense heat; severe storms such as hurricanes, tornadoes, wind storms, cyclones, and severe winter storms; wildfires; earthquakes; flooding; shoreline erosion, and; high water levels; and storm surges.
State Administering Agency: Connecticut Division of Emergency Management and Homeland Security (CTDEMHS)
Learn More: Here. States, local governments, and community stakeholders should begin working together to identify and prioritize mitigation projects with the greatest need of funding.