the business is located within the 100-year floodplain, the building must be relocated and the time required to reopen is estimated at 24 months.
INCOME RECAPTURE FACTOR The income recapture factor is a default value in HAZUS for the percent of lost income recaptured after the business reopens. The income recapture factor varies by occupancy class. In addition, as the closure period increases, the income recapture factor decreases. In other words, businesses that are closed for significant periods (more than 6 months) would have lower recapture factors compared with a business closed only a few days.
Wage Losses Wage losses are calculated in the same way as income losses. Instead of income per square foot per day, wages per square foot per day are calculated. Similarly, instead of the income recapture factor, a wage recapture factor is used.
Relocation Expenses Relocation expenses include business disruption costs associated for transferring a business and its components to a rental or temporary space. Relocation expenses are estimated only when a structure reaches the 10% threshold for flood damage. Relocation expenses include the following: 1. Floor area by occupancy class and flood depth 2. Percent of building damage by occupancy class and water depth (if greater than 10%) 3. Disruption costs ($/square foot) 4. Recovery time (days) by occupancy and flood depth 5. Percent owner occupied by occupancy class 6. Rental cost ($/square foot/day) by occupancy class Rental and disruption costs are based on default HAZUS data. These costs were developed in 1994 and updated according to inflation.
Rental Income Losses Rental Income losses include lost income due to tenants not being able to access a building during a flood event or after a flood event while the building is being cleaned or relocated. Rental income losses are based on the following: 1. Percent owner occupied for occupancy class 2. Floor area of occupancy group 3. Rental cost ($/square foot/day) 4. Recovery Time for occupancy and water depth Each of these components has been discussed above.
Chehalis Basin Strategy: Reducing Flood Damage and Enhancing Aquatic Species — Business Interruption
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