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Cal OES finds Rolling Hills not eligible for FEMA buyout program after benefit-cost review
Summary
City staff reported that Cal OES calculated a benefit-cost ratio of 0.83 for a voluntary buyout proposal and therefore determined the project did not meet FEMA's 1.0 cost-effectiveness threshold; staff will close the city's draft notice of interest and continue to monitor other mitigation funding opportunities.
City staff informed the council that the California Governor's Office of Emergency Services (Cal OES) performed a benefit-cost analysis for a Rolling Hills voluntary buyout under FEMA hazard-mitigation guidance and determined the proposed buyout is ineligible because the benefit-cost ratio (BCR) was calculated at 0.83, below FEMA's required threshold of 1.0.
Staff said Cal OES used standardized FEMA inputs for the calculation, including a Zillow property estimate used as an exposure value and a FEMA-required replacement cost figure of $433 per square foot for the property in question; staff noted that replacement cost is a standardized input and not a local construction-market figure (staff commented that local build costs are substantially higher but that the agency must use the FEMA toolkit values). Cal OES applied the required discount rate and the city's submitted property-specific data to produce the BCR result.
Because the proposed project did not meet FEMA's cost-effectiveness criterion, staff said Cal OES concluded the property was not eligible for the voluntary buyout funding within the Hazard Mitigation Assistance program. City staff told the council that they had worked with Cal OES and one homeowner who volunteered to participate in the analysis and that staff had provided the homeowner's authorization and data for the analysis.
Council members asked whether an appeal would be feasible; staff said the only route would be through federal channels and that Cal OES had limited discretion because FEMA prescriptive toolkit rules determine many inputs. Staff said they would notify interested homeowners and publish results, and the council voted to receive and file the Cal OES determination letter and to direct staff to close out the city's draft notice of interest.
Ending: The council received the Cal OES determination; staff will notify affected homeowners, post information publicly and monitor future federal and state mitigation programs and toolkit updates.
