BUILDING COMMUNITY RESILIENCE 

WITH NATURE-BASED SOLUTIONS

A GUIDE FOR LOCAL COMMUNITIES

JUNE 2021
Natural hazards pose a serious risk to states, localities, tribes and territories throughout the United States. These hazards 

include flooding, drought, hurricanes, landslides, wildfires and more. Because of climate change, many natural hazards are 

expected to become more frequent and more severe. Reducing the impacts these hazards have on lives, properties and 

the economy is a top priority for many communities.

Nature-based solutions are sustainable planning, design, environmental management, and engineering practices that weave 

natural features or processes into the built environment to promote adaptation and resilience. Such solutions enlist natural 

features and processes in efforts to combat climate change, reduce flood risks, improve water quality, protect coastal 

property, restore and protect wetlands, stabilize shorelines, reduce urban heat, add recreational space, and more. 

Nature-based solutions offer significant benefits, monetary and otherwise, often at a lower cost than more traditional 

infrastructure. These benefits include economic growth, green jobs, increased property values, and improvements to public 

health, including better disease outcomes and reduced injuries and loss of life. 

The implementation strategies for nature-based solutions are diverse; 

one size does not fit all. Choosing a solution depends on a number of 

factors, including the level of natural hazard risk reduction, land use 

planning, economics and more. The following are examples of naturebased solutions:

• In Tucson, Arizona, almost 45% of the city’s water is used for 

outdoor (non-potable) purposes. The city of Tucson’s Commercial 

Rainwater Harvesting Ordinance aims to reduce this demand. It 

requires commercial property developers to harvest rainwater for 

at least 50% of their landscaping needs.

• The GreenSeams program in greater Milwaukee, Wisconsin, permanently keeps floodprone lands in high-growth areas 

from being developed. Since 2001, the program has preserved more than 3,000 acres of land that can store 1.3 billion 

gallons of water.

• Los Angeles, California, saw an increase of more than 2,000 jobs from its $166 million investment in nature-based 

solutions from 2012 to 2014. Many of these jobs are local, providing an extra boost to the local economy.

• The Quabbin and Wachusett reservoirs serve 2.5 million people in Massachusetts. The Massachusetts Water Resources 

Authority has spent $130 million over the past 20 years on nature-based solutions. These solutions protect 

22,000 acres of the watershed that drains into nearby reservoirs. A water filtration plant would have cost $250 million 

to build and $4 million annually to operate and maintain.

The primary goal of this guide is to help communities identify and engage the staff and resources that can be used to 

implement nature-based solutions to build resilience to natural hazards, which may be exacerbated by climate change.

At the Department, we must — and 

we will — do more to address the 

climate crisis. DHS will implement a 

new approach to climate change 

adaptation and resilience, and we will 

do so with the sense of urgency this 

problem demands.

– Secretary of Homeland Security 

Alejandro N. Mayorkas

LEVERAGING NATURE-BASED SOLUTIONS 

IN AN ERA OF CLIMATE CHANGE
TABLE OF CONTENTS 

INTRODUCTION ........................................................................................................................................................... 2

Goal of the Guide ................................................................................................................................................. 3

Structure of the Guide .......................................................................................................................................... 3

WHAT ARE NATURE-BASED SOLUTIONS? .................................................................................................................... 4

Types of Nature-Based Solutions .......................................................................................................................... 5

Watershed or Landscape Scale ............................................................................................................................. 6

Neighborhood or Site Scale .................................................................................................................................. 7

Coastal Areas ....................................................................................................................................................... 8

THE BUSINESS CASE .................................................................................................................................................. 9

Hazard Mitigation Benefits.................................................................................................................................... 9

Community Co-Benefits .......................................................................................................................................11

Community Cost Savings.................................................................................................................................... 13

PLANNING AND POLICY-MAKING PHASE .................................................................................................................. 14

Land Use Planning...............................................................................................................................................14

Hazard Mitigation Planning ................................................................................................................................. 15

Stormwater Management.....................................................................................................................................16

Transportation Planning .......................................................................................................................................17

Open Space Planning.......................................................................................................................................... 18

IMPLEMENTATION PHASE ......................................................................................................................................... 19

Boosting Public Investment................................................................................................................................. 19

Incentivizing Private Investment .......................................................................................................................... 22

FEDERAL FUNDING OPPORTUNITIES ........................................................................................................................ 25

KEY TAKEAWAYS FOR LOCAL COMMUNITIES ............................................................................................................ 28

RESOURCES ............................................................................................................................................................. 29

FEMA would like to express appreciation to the National Oceanic and Atmospheric Administration (NOAA) nature-based solutions 

and coastal community resilience subject matter experts who provided their valuable and constructive suggestions during the 

development of this resource. Their willingness to devote their time and expertise so generously to enhance the impact of this 

resource for communities is greatly appreciated.

COVER PHOTO: Buffalo Bayou Park in Houston, TX. The park serves as both critical flood infrastructure and an important recreational and cultural 

asset for the downtown area. The popular park stretches 2.3 miles along the floodprone Buffalo Bayou and includes trails, public art installations, 

gardens, two festival lawns, a skate park, and a restaurant. In the park’s first year, a survey counted nearly 150,000 trail users in a single month.
INTRODUCTION | 2

INTRODUCTION 

Hatteras, NC. The Durant’s Point living shoreline project protects the shoreline from storm surge while providing habitat for many species. Since its 

construction, the project has weathered hurricanes, a summer of drought, and tropical storms. Photo: N.C. Coastal Federation

Nature-based solutions weave natural features and 

processes into a community’s landscape through planning, 

design, and engineering practices. They can promote 

resilience and adaptation while being integrated into a 

community's built environment (for example, a stormwater 

park) or its natural areas (for example, land conservation). 

While nature-based solutions have many hazard mitigation 

benefits, they can also help a community meet its climate, 

social, environmental, and economic goals. Communities 

across the country are finding nature-based solutions to be 

a highly effective way to provide public services that were 

traditionally met with structural or “gray” infrastructure. 

Local officials and their partners are using nature-based 

solutions to improve water quality in Lenexa, Kansas; to 

reduce flood risks in Milwaukee, Wisconsin; to limit erosion 

in coastal North Carolina; and to provide neighborhood 

amenities in Houston, Texas. 

FEMA and its federal partners produced the 

National Mitigation Investment Strategy to increase 

our nation’s resilience to natural hazards. Its 

purpose is to coordinate the use of federal, state, 

local, and private resources to help communities 

survive and thrive in the face of natural disasters. 

This Guide builds on the three key goals of the 

Investment Strategy. 

1. To motivate communities to invest in mitigation (for 

example, by showing how to measure its value);

2. To shrink barriers to investing in mitigation (for 

example, by improving access to risk information 

and funding); and 

3. To make investing in mitigation standard practice 

(for example, by considering mitigation in all 

investment decisions for public infrastructure). 

Flooding, high wind, drought, landslides, and other natural hazards pose major threats to communities 

across the United States. Natural disasters are becoming more frequent and more costly as a result 

of climate change. Reducing the threats these disasters pose to lives, properties, and the economy 

is a top priority for many communities. The National Mitigation Investment Strategy identifies naturebased solutions as a cost-effective approach to keep natural hazards from becoming costly disasters. 

The promise of nature-based solutions comes from the many benefits they offer and the many partners 

they can draw to the table.
INTRODUCTION | 3

GOAL OF THE GUIDE

The key goal of this guide is to help communities identify and engage the staff and resources that can be used to 

implement nature-based solutions to build resilience to natural hazards, which may be exacerbated by climate change. 

Planning and building cost-effective nature-based solutions will require collaboration. Many departments may need to be 

involved in planning and carrying out the strategies in this guide. Consider including the following local government partners:

In addition, non-governmental community partners like civic associations, watershed groups, and non-profit organizations 

should be involved in the planning process. They may have the capacity to customize and implement nature-based solutions.

The focus of this guide is local communities, but many of the ideas and advice may also apply to state, territorial, and 

tribal governments.

STRUCTURE OF THE GUIDE

Some local communities may use this guide to learn about nature-based solutions and weigh their value for the community. 

Others may be ready to move from planning to action. The guide includes six sections, and users can jump in at any point, 

depending on their current knowledge base and interests. The six sections are described below. 

WHAT ARE NATURE-BASED SOLUTIONS?

Describes three broad categories of nature-based solutions.

Identifies types of nature-based solutions in each category.

THE BUSINESS CASE

Outlines the many hazards that can be mitigated with nature-based solutions.

Discusses the multiple benefits of nature-based solutions, in addition to hazard mitigation.

PLANNING AND POLICY-MAKING PHASE 

Identifies planning processes and programs that can help users invest in nature-based solutions.

 Discusses how plans and policies can be updated to allow and encourage nature-based solutions.

IMPLEMENTATION PHASE 

 Reviews how local resources can be mobilized to preserve, restore, and build nature-based solutions.

Discusses innovative ways of promoting private investment.

FEDERAL FUNDING OPPORTUNITIES 

Outlines federal funding sources for nature-based solutions.

Emphasizes FEMA’s Hazard Mitigation Assistance (HMA) grant programs.

KEY TAKEAWAYS AND RESOURCES 

Summarizes key points for communities.

Provides additional resources.

• Parks and Recreation

• Public Works

• Planning and Economic Development

• Environmental Protection 

• Utilities

• Transportation

• Floodplain Administration

• Emergency Management
WHAT ARE NATURE-BASED SOLUTIONS? | 4

WHAT ARE NATURE-BASED SOLUTIONS?

Green Infrastructure and Low Impact Development

Some organizations use the term green infrastructure 

to capture the value and functions of natural lands. For 

example, the Conservation Fund defines green infrastructure 

as “a strategically planned and managed network of natural 

lands, working landscapes, and other open spaces that 

conserves ecosystem value and functions and provides 

associated benefits to human populations.”

Other organizations use the term green infrastructure for 

nature-based solutions to urban stormwater pollution. These 

organizations emphasize solutions that protect water quality 

and aquatic habitat. The other outcomes, such as mitigating 

natural hazards, are seen as co-benefits. Low impact 

development is another term that is often used to describe 

nature-based solutions for urban stormwater. In the field of 

stormwater management, “green infrastructure” and “low 

impact development” are sometimes used interchangeably.

Natural Infrastructure

The term “natural infrastructure” is often used to describe 

natural or naturalized landscapes that are actively 

managed to provide multiple benefits to communities. 

The International Institute for Sustainable Development, 

a think tank, notes that active management is what sets 

natural infrastructure apart from nature. For example, 

a managed wetland is a type of natural infrastructure. 

Manipulating water levels and cleaning out plant growth 

can enhance a managed wetland’s water quality, habitat, 

and flood storage benefits. 

Engineering with Nature

Organizations that design and operate water infrastructure 

projects may also refer to Engineering with Nature®, a 

term that comes from the U.S. Army Corps of Engineers’ 

(USACE) Engineering with Nature Initiative. This term 

refers to water resources projects that use collaborative 

approaches to project design and operation to create 

multi-functional infrastructure. Engineering with Nature® 

can result in projects that deliver a broader range of 

economic, ecosystem services, and social benefits.

Bioengineering

Bioengineering is a term that is used to describe projects 

that mimic natural processes in order to reduce hazards. 

An example of bioengineering would be using a combination 

of natural and manmade materials to stabilize a slope, 

giving vegetation a chance to become established to 

reduce future erosion.

Tying It All Together

The common thread among these terms is that 

nature-based solutions often provide more value than 

single-purpose gray infrastructure. Gray infrastructure 

refers to public works structures that are engineered to 

provide a specific level of service under specific scenarios. 

In the context of drinking water and wastewater, gray 

infrastructure includes water and wastewater treatment 

plants, pipes, catch basins, and stormwater basins. In 

the context of coastal communities, gray infrastructure 

This guide defines nature-based solutions as sustainable planning, design, environmental management, 

and engineering practices that weave natural features or processes into the built environment to build more 

resilient communities. While this guide uses the term nature-based solutions, other organizations use related 

terms, such as green infrastructure, natural infrastructure, or Engineering with Nature®, a program of the U.S. 

Army Corps of Engineers. As a best practice, use the term that best resonates with your target audience.
WHAT ARE NATURE-BASED SOLUTIONS? | 5

CATEGORIES OF NATURE-BASED SOLUTIONS

This guide categorizes nature-based solutions practices based on scale and location:

• WATERSHED OR LANDSCAPE SCALE: Interconnected systems of natural areas and open space. These are 

large-scale practices that require long-term planning and coordination. 

• NEIGHBORHOOD OR SITE SCALE: Distributed stormwater management practices that manage rainwater 

where it falls. These practices can often be built into a site, corridor, or neighborhood without requiring 

additional space. 

• COASTAL AREAS: Nature-based solutions that stabilize the shoreline, reducing erosion and buffering the 

coast from storm impacts. While many watershed and neighborhood-scale solutions work in coastal areas, 

these systems are designed to support coastal resilience.

The illustrations on the following pages are examples of nature-based solutions and do not cover all options.

Rain Garden — City Hall in Bay Village, OH

includes sea walls, groins, and breakwaters. While gray 

infrastructure provides only the service for which it 

was designed, nature-based solutions yield additional 

community and ecosystem services benefits.

Ecosystem services is a term used to describe 

all of the benefits that we get from the environment 

— everything from air, food, and water to the 

enjoyment of nature and natural resources.
WHAT ARE NATURE-BASED SOLUTIONS? | 6

WATERSHED SCALE

LAND CONSERVATION

Land conservation is one way 

of preserving interconnected 

systems of open space that 

sustain healthy communities.

Land conservation projects begin 

by prioritizing areas of land for 

acquisition. Land or conservation 

easements can be bought or 

acquired through donation. 

GREENWAYS

Greenways are corridors of protected 

open space managed for both 

conservation and recreation.

Greenways often follow rivers or other 

natural features. They link habitats 

and provide networks of open space 

for people to explore and enjoy.

FLOODPLAIN RESTORATION

Undisturbed floodplains help 

keep waterways healthy by 

storing floodwaters, reducing 

erosion, filtering water pollution, 

and providing habitat.

Floodplain restoration rebuilds 

some of these natural functions 

by reconnecting the floodplain 

to its waterway.

WETLAND RESTORATION 

AND PROTECTION

Restoring and protecting wetlands 

can improve water quality and 

reduce flooding. Healthy wetlands 

filter, absorb, and slow runoff.

Wetlands also sustain healthy 

ecosystems by recharging 

groundwater and providing 

habitat for fish and wildlife.

STORMWATER PARKS

Stormwater parks are recreational 

spaces that are designed to flood 

during extreme events and to 

withstand flooding.

By storing and treating floodwaters, 

stormwater parks can reduce flooding 

elsewhere and improve water quality.
WHAT ARE NATURE-BASED SOLUTIONS? | 7

NEIGHBORHOOD OR SITE SCALE

RAINWATER HARVESTING

Rainwater harvesting systems 

collect and store rainfall for later 

use. They slow runoff and can reduce 

the demand for potable water.

Rainwater systems include rain 

barrels that store tens of gallons 

and rainwater cisterns that store 

hundreds or thousands of gallons.

GREEN ROOFS

A green roof is fitted with a planting 

medium and vegetation. A green roof 

reduces runoff by soaking up rainfall. 

It can also reduce energy costs for 

cooling the building. 

Extensive green roofs, which have 

deeper soil, are more common on 

commercial buildings. Intensive green 

roofs, which have shallower soil, are 

more common on residential buildings.

TREE TRENCHES

A stormwater tree trench is a row 

of trees planted in an underground 

infiltration structure made to store 

and filter stormwater.

Tree trenches can be added to 

streets and parking lots with limited 

space to manage stormwater.

GREEN STREETS

Green streets use a suite of green 

infrastructure practices to manage stormwater 

runoff and improve water quality. 

Adding green infrastructure features to 

a street corridor can also contribute to 

a safer and more attractive environment 

for walking and biking.

TREE CANOPY

Tree canopy can reduce stormwater 

runoff by catching rainfall on 

branches and leaves and increasing 

evapotranspiration. By keeping 

neighborhoods cooler in the summer, 

tree canopy can also reduce the 

“urban heat island effect.” 

Because of trees’ many benefits, many 

cities have set urban tree canopy goals.

PERMEABLE PAVEMENT

Permeable pavements allow more 

rainfall to soak into the ground. 

Common types include pervious 

concrete, porous asphalt, and 

interlocking pavers.

Permeable pavements are most 

commonly used for parking lots 

and roadway shoulders.

RAIN GARDENS

A rain garden is a shallow, vegetated 

basin that collects and absorbs 

runoff from rooftops, sidewalks, 

and streets.

Rain gardens can be added around 

homes and businesses to reduce 

and treat stormwater runoff.

VEGETATED SWALES

A vegetated swale is a channel 

holding plants or mulch that treats 

and absorbs stormwater as it flows 

down a slope. 

Vegetated swales can be placed along 

streets and in parking lots to soak up and 

treat their runoff, improving water quality.
WHAT ARE NATURE-BASED SOLUTIONS? | 8

DUNES

Dunes are coastal features made 

of blown sand. Healthy dunes 

often have dune grasses or other 

vegetation to keep their shape.

Dunes can serve as a barrier 

between the water’s edge and 

inland areas, buffering waves 

as a first line of defense.

WATERFRONT PARKS

Waterfront parks in coastal areas 

can be intentionally designed 

to flood during extreme events, 

reducing flooding elsewhere.

Waterfront parks can also absorb 

the impact from tidal or storm 

flooding and improve water quality.

LIVING SHORELINES

Living shorelines stabilize a shore 

by combining living components, 

such as plants, with structural 

elements, such as rock or sand.

Living shorelines can slow 

waves, reduce erosion, and 

protect coastal property.

COASTAL AREAS

COASTAL WETLANDS

Coastal wetlands are found 

along ocean, estuary, or 

freshwater coastlines.

They are often referred to as 

“sponges” because of their ability 

to absorb wave energy during 

storms or normal tide cycles.

OYSTER REEFS

Oysters are often referred to as 

“ecosystem engineers” because 

of their tendency to attach to hard 

surfaces and create large reefs made 

of thousands of individuals. 

In addition to offering shelter and 

food to coastal species, oyster reefs 

buffer coasts from waves and filter 

surrounding waters.
THE BUSINESS CASE | 9

THE BUSINESS CASE

HAZARD MITIGATION BENEFITS 

Nature-based solutions can help reduce the loss of life 

and property resulting from some of our nation’s most 

common natural hazards. These include flooding, storm 

surge, drought, and landslides. As future conditions, like 

climate change, amplify these hazards, nature-based 

solutions can help communities adapt and thrive.

Riverine Flooding

Communities can mitigate riverine flooding by investing in 

watershed-scale practices. Land conservation, floodplain 

restoration, and waterfront parks can keep development 

out of harm’s way. They also store and slow floodwaters. 

Urban Drainage Flooding

When the amount of stormwater flowing into a community’s 

storm sewer system exceeds the system’s capacity, water 

can back up and flood streets, basements, and homes. This 

type of flooding is most common where new development 

and changing rainfall patterns produce more runoff than 

the system was designed to handle. While urban drainage 

flooding is often less damaging than riverine flooding, 

it also tends to be more frequent. Over time, repeated 

minor floods can cost a community more than the extreme 

floods. They can also decrease real estate values and drive 

businesses away. Communities can mitigate this type of 

flooding by encouraging or requiring neighborhood- and 

site-scale nature-based solutions like bioretention systems. 

Bioretention systems include practices such as rain 

gardens, rainwater harvesting, green roofs, and more. These 

practices soak up runoff from hard surfaces and reduce the 

amount of stormwater flowing into the storm sewer system.

The GreenSeams program in greater Milwaukee, 

Wisconsin permanently keeps floodprone lands 

in high-growth areas from being developed. Since 

2001, the GreenSeams program has preserved 

more than 3,000 acres of land that can store 

1.3 billion gallons of water. 

In Huntington, West Virginia, many neighborhoods 

experience flooding after heavy rainfalls. The 

city’s comprehensive plan recommends using 

nature-based solutions that manage stormwater 

onsite to reduce the burden to the storm sewer 

system and reduce flooding.

In response to natural hazards and to proactively address climate related risks, many communities 

are looking for ways to build resilience that yield the most benefit for the least cost. This section builds 

the business case for nature-based solutions by summarizing their potential cost savings and their 

non-monetary benefits. Thoughtfully planned nature-based solutions can contribute to a community’s 

triple bottom line, providing social, environmental, and financial value. 
THE BUSINESS CASE | 10

Coastal Flooding and Storm Surge 

Coastal flooding can be caused by unusually high tides, 

strong winds, or storm surge. As future conditions lead to 

more intense storms and rising sea levels, coastal flooding 

is becoming more frequent and storm surges are becoming 

more severe. Communities can mitigate coastal flooding 

by investing in nature-based shoreline stabilization. Living 

shorelines, reefs, and dunes can slow waves, reduce 

wave height, and reduce erosion. At the same time, these 

practices benefit the ecosystem by filtering and cleaning 

water and providing habitat. 

Drought

Droughts are also expected to be amplified by future 

conditions. As precipitation patterns become more 

unpredictable, communities can increase their resilience. 

Two options are conservation and rainwater harvesting. 

Conservation is a watershed-scale approach. It preserves 

or restores rainwater infiltration to increase groundwater. 

At the site scale, rainwater harvesting can help. It offsets 

some of the demand for non-potable water. This demand 

can be further reduced by xeriscaping, or drought-tolerant 

landscaping. 

Landslides

Landslide hazards tend to be highest in steeply sloped 

areas. They are particularly high when soils are saturated 

and vegetation has decreased, or as a result of fires 

and droughts. At the watershed scale, communities can 

reduce landslide threats through conservation aimed at 

steeply sloped land. At the neighborhood and site scale, 

communities can invest in green stormwater infrastructure 

and bioretention systems. This includes trees, rain gardens, 

bioswales, infiltration basins, and pervious pavement. These 

stabilize slopes by keeping them drier and adding vegetation 

and root structures.

In Tucson, Arizona, almost 45 percent of the city’s 

water is used for outdoor (non-potable) purposes. 

The City of Tucson’s Commercial Rainwater 

Harvesting Ordinance aims to reduce this demand. 

It requires commercial property developers to 

harvest rainwater for at least 50 percent of their 

landscaping needs.

The Minnesota Department of Natural Resources 

lists stabilizing slopes using native vegetation and 

drainage improvements as one way to mitigate 

landslide hazards.

According to a 2014 journal article in Ocean & 

Coastal Management, North Carolina properties 

with natural shoreline protection measures 

withstood wind and storm surge during Hurricane 

Irene (2011) better than properties with seawalls 

or bulkheads. The storm damaged 76 percent of 

bulkheads surveyed, while there was no detected 

damage to other shoreline types. 

Mud slide with rock, boulders, and debris 
THE BUSINESS CASE | 11

COMMUNITY CO-BENEFITS

The biggest selling points for nature-based solutions are 

their many benefits beyond mitigating the effects of natural 

hazards. Nature-based solutions can provide short- and 

long-term environmental, economic, and social advantages 

that improve a community’s quality of life and make it more 

attractive to new residents and businesses. Unlike gray 

infrastructure, a single nature-based project can yield a 

variety of community benefits that fulfill many departments’ 

goals. Local leaders can highlight these co-benefits to 

encourage collaboration and make nature-based solutions 

standard practice. The bottom line is that collaboration on 

nature-based solutions can help communities survive in the 

long-term and thrive day-to-day.

Ecosystem Services

• Improved water quality: Nature-based solutions can be 

used to filter pollutants from stormwater runoff and to 

reduce the volume of polluted water flowing into rivers, 

lakes, and coastal waters. In older cities with combined 

sewer systems, they can also reduce the untreated 

sewage going into community waterways. Combined 

sewer systems send all stormwater and sewage to a 

wastewater treatment plant before releasing the treated 

wastewater into waterways. When it rains, these systems 

sometimes carry more water than the treatment plant can 

handle. As a result, some of the mixed stormwater and 

sewage will be released untreated into waterways. These 

events are called combined sewer overflows (CSOs). 

By lowering the volume of rainwater flowing into a 

combined sewer system, Nature-based solutions can 

reduce CSOs and improve water quality.

• Cleaner water supplies: Nature-based solutions that 

protect the land around drinking water reservoirs can 

keep polluted runoff away from a community’s water 

supply. New York City has high-quality tap water because 

the city invested in nature-based solutions around its 

19 reservoirs. The city’s $600 million investment to 

conserve and restore the land keeps the water draining 

into the reservoirs clean. It provided the same level of 

service as the $6 billion water filtration plant that the city 

would have needed otherwise. 

• Improved air quality: Trees, parks, and other plant-based, 

nature-based solutions can absorb and filter pollutants 

and reduce air temperatures. Doing so reduces smog and 

improves air quality. 

• Healthier wildlife habitats: Watershed and shoreline 

nature-based solutions preserve open space and 

natural environments. If thoughtfully designed, they 

can also connect habitats to give plants and animals 

more space to move across the landscape. Both types 

of nature-based solutions protect aquatic and wildlife 

habitats by improving water quality.

Economic Benefits

• Increased property values: If a property is near a park 

or has more landscaping, it generally has a higher value. 

A study of 193 public parks in Portland, Oregon found 

that parks had a significant, positive impact on nearby 

property values. A park within 1,500 feet of a home 

increased its sale price by $1,290 to $3,455 (adjusted 

to 2020 dollars). As parks increased in size, their impact 

on property value grew.

• Improved property tax base: Nature-based solutions 

can improve the tax base in both high-growth and 

low-growth communities. In high-growth areas, 

nature-based features translate into a higher property 

tax base. In low-growth communities, nature-based 

solutions can stabilize property values in areas with 

high vacancies. 

The City of Lenexa, Kansas focuses on 

nature-based solutions to prevent stormwater 

pollution and reduce stormwater runoff. 

In Philadelphia, Pennsylvania, vacant lots were 

found to deflate neighborhood property values 

by as much as 20 percent. The Pennsylvania 

Horticultural Society initiated a program to green 

and maintain vacant lots. This program now 

maintains about 7,000 parcels totaling 8 million 

square feet. A 2012 study of the program found 

that homes within a quarter mile of a greened lot 

increased in value by 2 to 5 percent annually –

generating $100 million in additional annual 

property taxes.
THE BUSINESS CASE | 12

• Green jobs: Green stormwater infrastructure creates 

new job opportunities in sectors like landscape 

design, paving, and construction. It also opens new 

job opportunities in emerging industries. 

• Improved triple bottom line: The triple bottom line is 

an accounting framework that measures the value of 

social and environmental benefits, as well as financial 

benefits. Nature-based solutions often provide more 

triple bottom line benefits than traditional, gray 

infrastructure. As a result, they increase a community's 

return on investment, an especially important factor 

when considering climate change.

Social Benefits

• Cooler localized temperatures: Built-up areas tend to be 

hotter than nearby rural areas, particularly on summer 

nights. The “urban heat island effect” can lead to higher 

rates of heat-related illness. Adding trees and vegetation 

can help reduce these effects on hot days by providing 

shade and cooling through evapotranspiration.

• Improved public health: Many of the environmental and 

social benefits of nature-based solutions also benefit 

public health, including mental health. Improved air and 

water quality reduce exposure to harmful pollutants. 

Cooler summer temperatures reduce the risk of 

heat-related illness. Additional recreation spaces increase 

opportunities for physical activity and social engagement.

• Added recreational space: Nature-based solutions 

that preserve and enhance open space provide more 

areas for recreation. In addition, nature-based solutions 

such as greenways and green streets can increase 

opportunities for active transportation, such as biking 

and walking. These spaces can also provide aesthetic 

benefits that contribute to improved mental health and 

physical well-being. 

Los Angeles, California saw an increase of more 

than 2,000 jobs from its $166 million investment 

in nature-based solutions from 2012-2014. The 

best part about this job growth is that many of 

these jobs are local, providing an extra boost to 

the local economy.

Hunter’s Point South Park in Queens, New York 

City gives residents a new space to play and relax 

outdoors, while also mitigating flood risk along 

the East River. Nature-based features include 

bioswales and street-side stormwater planters 

to slowly absorb and release stormwater, and 

1.5 acres of new wetlands to shield upland areas 

from storm surge.

Hunter's Point South Park, a part of Gantry Plaza State Park, NY
THE BUSINESS CASE | 13

COMMUNITY COST SAVINGS

The final piece of the business case for nature-based solutions 

is the potential for cost savings. Savings may come when 

nature-based solutions cost less than alternative investments, 

avoid the need for certain infrastructure altogether, reduce 

the cost of rebuilding and repairs after a disaster, and help 

mitigate the impacts of future conditions like climate change. 

It is important to emphasize that it is often, but not always, 

possible to identify nature-based approaches that are 

cheaper than gray infrastructure alternatives.

Avoided Flood Losses

Nature-based solutions can also help communities save 

money by reducing losses from future floods and other 

natural disasters. The U.S. Environmental Protection Agency 

(EPA) studied this issue in a landmark 2015 study. The study 

estimated the flood losses that would be avoided nationwide 

by adding requirements to manage stormwater onsite. It 

found that, over time, using nature-based solutions in new 

development and redevelopment could save hundreds of 

millions of dollars in flood losses. 

Reduced Stormwater Management Costs

Using nature-based infrastructure can reduce the cost 

of stormwater management for new development because 

material costs are lower. Nature-based solutions can 

reduce the need for expensive below-ground infrastructure. 

They can also reduce the number of curbs, catch basins, 

and outlet control structures required. Nature-based 

solutions can save money on site preparation because 

they requires less land disturbance. 

In older cities with combined sewer systems, using both 

green and gray infrastructure can reduce combined sewer 

overflows (CSOs) at a lower cost. The traditional, gray 

infrastructure approach is to install below-ground tanks and 

tunnels and expand existing facilities. This process has 

extremely high capital costs. It also delays water quality 

improvements until the end of a decades-long design and 

construction process. Many nature-based solutions practices 

have lower capital costs and begin to provide benefits in a 

few years. New York City developed a plan to reduce CSOs 

using both green and gray infrastructure. The nature-based 

solutions component will eventually capture runoff from 

10 percent of the impervious areas of the combined sewer 

watersheds. While the gray infrastructure option would 

cost about $3.9 billion in public funds, the nature-based 

alternative will cost about $1.5 billion.

In older cities with combined sewer systems, using both 

green and gray infrastructure can reduce combined sewer 

overflows at a lower cost. The traditional, gray infrastructure 

approach is to install below-ground tanks and tunnels and 

expand existing facilities. This process has extremely high 

capital costs. It also delays water quality improvements until 

the end of a decades-long design and construction process. 

Many NBS practices have lower capital costs and begin to 

provide benefits in a few years. New York City developed a 

plan to reduce CSOs using both green and gray infrastructure. 

The NBS component will eventually capture runoff from 

10 percent of the impervious areas of the combined sewer 

watersheds. While the gray infrastructure option would cost 

about $3.9 billion in public funds, the NBS alternative will 

cost about $1.5 billion.

Reduced Drinking Water Treatment Costs

Watershed-scale conservation practices can keep drinking 

water clean. They are often more cost-effective than building 

filtration plants to treat polluted water.

The Quabbin and Wachusett Reservoirs serve 2.5 

million people in central Massachusetts and the 

Boston area. Over 20 years, the Massachusetts 

Water Resources Authority spent $130 million on 

nature-based solutions. The nature-based solutions 

protect 22,000 acres of the watershed that drains 

into these reservoirs. A water filtration plant would 

have cost $250 million to build and $4 million 

annually to operate and maintain.
PLANNING AND POLICY-MAKING PHASE | 14

PLANNING AND POLICY-MAKING PHASE

LAND USE PLANNING

The Land Use Element of a community’s Comprehensive 

Plan (sometimes called a Master or General Plan) typically 

guides land use planning. It sets goals for where and 

how land will be developed and preserved over the next 

20 to 30 years. It also identifies strategies to support 

these goals. The Land Use Element provides the basis 

for the community’s land use regulations, including 

zoning ordinances and subdivision and land development 

ordinances (SALDOs).

ENGAGE: Planning staff typically develop the Comprehensive 

Plan in coordination with other government and public 

stakeholders. For coordinated investments in nature-based 

solutions, planning staff should invite other departments to 

help develop the Land Use Element. Include staff with roles 

in parks and recreation planning, public works, environmental 

protection, utilities planning, transportation planning, 

floodplain management, and emergency management. 

ASSESS: The land use planning process can help drive 

investments in nearly every type of nature-based solution. 

To prioritize nature-based solutions, consider the community’s 

most pressing issues, including development or hazards and 

risks. For communities approaching build-out, for example, 

preserving parks and greenways before all remaining land is 

developed may be most important. 

Communities may choose to restore natural ecosystems like 

wetlands, and reconnect natural areas. This can help native 

plants and animals compete against invasive species and 

resist other stressors.

UPDATE: The land use planning process should begin 

with the goals and principles in the Land Use Element. 

This will provide the rationale and stimulus for ordinance 

improvements, policy and procedure changes, and training. 

Once the Land Use Element is updated, make more 

detailed updates to zoning ordinances and subdivision and 

land development ordinances. Depending on the type of 

nature-based solutions prioritized by the community, update 

ordinances and procedures to:

• Establish riparian buffers and protect stream corridors;

• Direct development to previously developed areas and 

areas with existing infrastructure;

• Promote compact (e.g., mixed-use and transit-oriented) 

development;

• Reduce impervious cover; and

• Modify landscape requirements, including tree protection 

requirements.

The goal of this guide is to help communities identify and engage the staff and resources that can be 

used to implement nature-based solutions to build resilience to natural hazards, which may be exacerbated 

by climate change. Planning and carrying out nature-based solutions requires an integrated approach that 

works across agencies and departments. This section provides tips for adding nature-based solutions to 

traditional community planning processes and programs. For each program area, this section recommends 

which officials to engage (ENGAGE); which types of nature-based solutions to consider (ASSESS); and 

how to update plans, policies, and ordinances to drive those solutions (UPDATE).

Like any other project, nature-based solutions must 

follow local, state, and federal regulations and 

permit requirements. This usually includes environmental and historic preservation (EHP) review. 

Reaching out to EHP authorities early in project 

design can help communities identify potential 

benefits and limitations of the proposed solution, 

and avoid delays in implementation.
PLANNING AND POLICY-MAKING PHASE | 15

HAZARD MITIGATION PLANNING

Hazard mitigation activities are typically guided by a Hazard 

Mitigation Plan (HMP), which is updated on a five-year 

cycle. The HMP identifies specific risk reduction projects 

as mitigation actions. Each action is linked to a plan that 

describes how and when the project will be completed.

ENGAGE: A Steering Committee typically leads the 

development of the HMP. The committee often includes 

planners, emergency managers, and other local officials. 

To enable joint investments in nature-based solutions, 

invite other departments to help define the HMP’s goals 

and mitigation actions. Include staff with roles in parks 

and recreation, public works, planning, environmental 

protection, utilities management, and transportation 

planning. They can participate in both the five-year plan 

update process and the annual reviews and updates. 

ASSESS: Hazard mitigation planning can drive investments 

in nearly every type of nature-based solution. To prioritize 

nature-based solutions, consider the community’s most 

pressing hazards. For example, addressing droughts may be 

most important for communities in arid environments with high 

water demand. FEMA’s Local Mitigation Planning Handbook 

specifically identifies projects that protect natural systems as 

important mitigation activities. These actions minimize losses 

and preserve or restore the functions of natural systems.

UPDATE: Nature-based solutions can be integrated into HMPs 

through both long-term goals and specific mitigation actions. 

Mitigation actions may include nature-based projects, but they 

should also promote nature-based solutions more broadly. 

Consider policies and regulations, education and outreach, and 

incentive-based programs. Develop these projects, policies, 

and incentives with relevant departmental staff so that they 

can also integrate nature-based solutions into their programs 

and planning processes.

STORMWATER MANAGEMENT

Stormwater management programs typically aim to reduce 

water pollution, preserve aquatic ecosystems, and protect the 

public from stormwater flooding. Many must also comply with 

federal and state stormwater management regulations. These 

regulations are designed to reduce pollutant discharges from 

Municipal Separate Storm Sewer Systems (MS4s) and CSOs. 

Communities with MS4s typically base their program on a 

Stormwater Management Program Plan (SMPP). Those with 

CSOs typically use a local Long-Term Control Plan (LTCP). 

These plans are carried out by various local programs, 

ordinances, and development procedures.

ENGAGE: Stormwater or public works departments typically 

develop the SMPP or LTCP. To coordinate investments in 

nature-based solutions, invite others to help develop the 

plan and put it into action. Include staff with roles in parks 

and recreation planning, environmental protection, utilities 

planning, transportation planning, floodplain management, 

and emergency management. 

ASSESS: Stormwater management programs are best 

suited to drive investments in neighborhood- or site-scale 

nature-based solutions that retain and treat stormwater 

onsite. To choose which nature-based solutions to 

emphasize, consider the community’s most pressing 

stormwater issues and priorities. Communities with a lot 

of existing development and limited new development 

might emphasize tree trenches, green roofs, and rainwater 

harvesting. These nature-based practices have smaller 

footprints and are easily integrated into tighter spaces. 

If that community also had limited water supplies, it might 

prioritize rainwater harvesting; if it did not have enough 

tree cover, it might prioritize tree trenches.

UPDATE: Updating a community’s stormwater management 

program should begin with its SMPP or LTCP. To encourage 

the use of nature-based solutions, many communities 

are adding stormwater retention standards to their 

post-construction stormwater programs. According to 

an EPA summary, 28 states and two territories have 

post-construction retention standards. This type of standard 

requires some runoff volume to be managed onsite. This 

reduces both pollutant loads and erosive peak flows. 

Communities can also develop a hierarchy of acceptable 

nature-based solutions. For example, the Philadelphia Water 

Department divides these practices into three preference 

levels: Highest, Medium, and Low.

The Capital Region Council of Governments 

in Connecticut established the following goal 

in its 2019-2024 HMP: Increase the use of 

natural, “green,” or “soft” hazard mitigation 

measures such as open space preservation and 

green infrastructure. Specific mitigation actions 

encouraged adopting regulations to promote low 

impact development and nature-based techniques. 

They also supported education initiatives to help 

municipal staff and elected officials understand 

nature-based solutions practices.
PLANNING AND POLICY-MAKING PHASE | 16

Once the SMPP or LTCP is updated, make more detailed 

updates to stormwater management ordinances and 

procedures. Depending on the type of nature-based solutions 

prioritized by the community, update ordinances and 

procedures to:

• Include nature-based solutions in proposed capital 

projects for stormwater management for public projects;

• Make nature-based solutions legal and preferred for 

managing stormwater runoff for private projects;

• Have stormwater management plan reviews take 

place early in the development review process 

for private projects;

• Provide other ways for developers to meet stormwater 

requirements when onsite alternatives are not 

feasible, such as “payment-in-lieu of” programs for 

private projects; 

• Emphasize collaboration between the stormwater 

management department, streets department, 

and private developers to build green streets;

• Ensure that local building and plumbing codes allow 

harvested rainwater for exterior and non-potable 

uses; and

• Include effective monitoring, tracking, and maintenance 

requirements for stormwater management.

Rain Garden — Greenbriar Middle School in Parma, OH
PLANNING AND POLICY-MAKING PHASE | 17

TRANSPORTATION PLANNING

The Transportation Element of the local Comprehensive 

Plan, the regional Long-Range Transportation Plan, and 

the Transportation Improvement Program typically guide 

transportation planning. These plans set goals for a 

community’s transportation system over the next 20 to 

30 years. They also identify strategies and projects to 

support these goals. The plans provide the basis for local 

codes related to transportation and for local investments in 

transportation infrastructure.

ENGAGE: Planning staff typically develop the Comprehensive 

Plan, with input from local staff and the public. To 

coordinate investments in nature-based solutions, planning 

staff should invite other departments to help develop the 

Transportation Element. Include those with roles in parks 

and recreation planning, public works, environmental 

protection, utilities planning, floodplain management, and 

emergency management. 

ASSESS: Transportation and land use planning are closely 

linked and often interdependent. As with the land use 

planning process, the transportation planning process can 

help drive investments in nearly every type of nature-based 

solution. To prioritize nature-based solutions, consider the 

community’s most pressing issues. For communities with 

limited options for pedestrians, retrofitting streetscapes to 

increase walkability may be most important. 

 

UPDATE: Updating the transportation planning process 

should begin with the goals and principles in the 

Transportation Element. These provide the rationale and 

stimulus for ordinance improvements, policy and procedure 

changes, and training. Once the Transportation Element 

is updated, make more detailed updates to the policies, 

procedures, and ordinances on street and parking design. 

Communities can update their street design standards to 

provide clear direction on the appropriate installation of 

nature-based solutions. They can adopt a complete streets 

policy that encourages designs including nature-based 

solutions. And they can create a green streets manual that 

provides guidance on designing nature-based solutions.

Local ordinances and procedures related to street design and 

parking can also be updated. Use this process to minimize 

impervious cover and promote nature-based solutions. 

Depending on the type of nature-based solutions prioritized 

by the community, update ordinances and procedures to 

encourage or require:

• Adding nature-based solutions to proposed transportation 

projects in the Transportation Improvement Plan and 

capital improvement plan;

• Making street trees a part of public capital improvement 

projects;

• Making streets no wider than is necessary to move traffic 

effectively;

• Using pervious materials for lower-traffic paving areas, 

including alleys, streets, sidewalks, driveways, and 

parking lots;

• Providing alternative parking requirements (e.g., shared 

or offsite parking), and varying requirements by zone to 

reflect places where more trips are by foot or transit; 

• Using alternative measures to reduce required parking, 

such as transportation demand management; and

• Using nature-based solutions to strengthen the resilience 

of transportation infrastructure to natural hazards. 

For an excellent model of how to systematically 

incorporate nature-based solutions into the 

transportation planning process, communities 

should review the “Eco-Logical” Approach promoted 

by the Federal Highway Administration.
PLANNING AND POLICY-MAKING PHASE | 18

OPEN SPACE PLANNING

The Open Space and Recreation Element of a community’s 

Comprehensive Plan typically guides open space planning. This 

element establishes a policy framework and action program. 

These are used for maintaining, improving, and expanding the 

community’s open space and recreational facilities.

ENGAGE: Planning staff typically develop the Comprehensive 

Plan with government and public stakeholders. To 

coordinate investments in nature-based solutions, 

invite other departments to help develop this element. 

Include staff with roles in hazard mitigation, public works, 

environmental protection, utilities planning, floodplain 

management, and emergency management. 

ASSESS: The open space planning process can help drive 

investments in nearly every type of nature-based solution. At 

the watershed scale, it can support interconnected systems 

of greenways and parks. These mitigate natural hazards and 

provide co-benefits to the community. At the neighborhood 

scale, open space planning can incorporate nature-based 

solutions into local parks and recreational facilities. This 

helps reduce and treat neighborhood stormwater runoff. In 

coastal areas, open space planning can drive investments 

in living shorelines, waterfront parks, and other coastal 

nature-based practices. 

UPDATE: Updating the open space planning process should 

begin with the Open Space and Recreation Element of the 

Comprehensive Plan. Once the plan is updated, consider 

more detailed updates to facilities management programs, 

park planning and design, and local ordinances.

Facilities management programs can add neighborhood-scale 

nature-based solutions to existing parks and playgrounds. 

As local governments retrofit existing facilities, they can 

incorporate nature-based solutions to reduce impervious 

cover, enhance tree cover, and treat and soak up stormwater 

runoff. Park planning and design are also opportunities. 

Communities can apply nature-based practices and principles 

as they expand their network of parks and trails and design 

each park site. Using nature-based solutions for retrofitting 

existing parks or acquiring and designing new parks can 

mobilize new partners and funding sources. Finally, updating 

local ordinances can help to preserve watershed-scale 

nature-based solutions. Based on the needs of the 

community, ordinances can be updated to:

• Protect natural resource areas and critical habitat;

• Establish no-development buffer zones and other 

protections around wetlands, riparian area, and 

floodplains; and

• Limit development and land disturbance in source water 

protection areas.

FEMA’s Community Rating System (CRS) allows 

participating communities to earn lower flood 

insurance rates for property owners, renters, 

and businesses. They get credit for actions that 

reduce risk under the National Flood Insurance 

Program. FEMA recently elevated the potential 

CRS credit values for nature-based solutions. 

Credit is given for actions such as preserving 

open space, restoring wetlands, and developing 

a living shoreline. The number of points awarded 

for preserving open space is now among the 

highest given in the program. Credits are awarded 

according to the percentage of preserved open 

space in a community’s floodplain. The larger 

the percentage, the more credit is awarded, 

accompanied by potentially higher insurance 

discounts. Folly Beach, South Carolina incorporated 

nature-based solutions into their CRS program and 

received a 30-percent reduction in premiums. 

Folly Beach, SC
IMPLEMENTATION PHASE | 19

To build a network of nature-based solutions, communities should encourage both public and private 

investments. This section provides tips for boosting public investment and incentivizing private 

investment. Many of these tips rely on the diverse benefits of nature-based solutions. Recognizing these 

diverse benefits can help pool resources from public and private partners to mobilize more funding for 

nature-based solutions. This section is aligned with the third goal of the National Mitigation Investment 

Strategy — to make mitigation investments standard practice.

BOOSTING PUBLIC INVESTMENT

Diversifying Local Resources

Traditional local funding sources for public infrastructure include general funds, bond proceeds, taxes, and fees. Support for 

nature-based solutions investments could come from taxes levied on property, special or business improvement districts, or 

tax increment financing (TIF) districts. Local fees could include development impact fees, fee-in-lieu payments, or utility fees 

(including stormwater utilities). Pooling resources is also a way to integrate NBS practices into planned or ongoing capital 

improvement projects. Consider NBS when creating or improving roads, streetscapes, stormwater management projects, 

parks, and parking areas. Incorporating NBS into public improvements is an opportunity to lead by example and to educate 

other departments, private developers, and the public. 

While each funding source has pros and cons, communities should use more than one internal resource. Pooling resources is a 

more cost-effective and fiscally responsible funding choice. Pooling resources is also a way to integrate nature-based solutions 

practices into planned or ongoing capital improvement projects. Consider nature-based solutions when creating or improving 

roads, streetscapes, stormwater management projects, parks, and parking areas. Incorporating nature-based solutions into 

public improvements is an opportunity to lead by example and to educate other departments, private developers, and the public.

IMPLEMENTATION PHASE

GENERAL FUNDS BOND PROCEEDS TAX AND FEE REVENUES

PROS

• Financial flexibility 

CONS

• Funds can be reassigned

• Influenced by changes 

in community, including 

political climate

PROS

• Dedicated and consistent 

source of funding 

CONS

• Could increase local taxes 

and fee rates

• Influenced by credit rating 

• Repayment often includes 

interest

PROS

• Dedicated and consistent 

source of funding

CONS

• Lack of financial flexibility

• Could increase local taxes 

and fee rates
IMPLEMENTATION PHASE | 20

Attracting Grant Funding 

To maximize public investment in nature-based solutions, 

communities should creatively combine local and external 

resources as often as possible. Since nature-based solutions 

provide many different co-benefits, a single project may 

be eligible for a variety of private, state, and federal grant 

programs. The key to leveraging These resources is to think 

outside the box when applying for funding, and to apply to 

diverse programs. For example, a coastal community may 

seek grant funding for a flood risk reduction project that 

uses nature-based approaches. In addition to applying for 

hazard mitigation grants, this community could apply for 

habitat conservation grants, water quality grants, and coastal 

resilience grants. The final section of this guide lists some 

of the most common federal grant funding opportunities for 

nature-based solutions. Communities should also identify 

and leverage the financial assistance available through 

state-specific programs. Other potential sources are non-profit 

organizations, special districts, and private foundations.

Building Nature-Based Solutions into the 

Capital Improvement Plan

The Capital Improvement Plan (CIP) process is another tool 

for increasing investments in nature-based solutions. Many 

communities use a CIP to plan the timing and financing of 

public improvements over the medium term (approximately 

five years). Agencies submit projects to be evaluated and 

included in the CIP, and the CIP team analyzes and ranks 

submitted projects. Ultimately, highly ranked projects 

are funded first. Rankings often consider how the project 

advances mandated activities and community priorities. They 

are also based on whether the project is fiscally responsible. 

Including a nature-based component can help increase a 

project’s ranking, as nature-based solutions may contribute 

toward federal Clean Water Act requirements, hazard 

mitigation, and other community priorities. It is important to 

emphasize the multi-functional nature of these solutions and 

how they can provide more bang for the public’s buck.

Funding Nature-Based Solutions with 

Stormwater Utility Fees

Stormwater utility fee programs are designed to pay for the 

cost of managing stormwater runoff. Typically, stormwater 

fees are collected in a fund dedicated to the stormwater 

management program and stormwater-related projects. 

This can be a good, steady source of funding that does 

not compete with other community priorities. 

Many stormwater utilities are structured to charge users 

based on their property’s stormwater runoff volume. 

For example, communities can charge a fee based on a 

property’s impervious area, rather than its total area. For 

this type of fee structure, communities need to have a 

good understanding of their impervious cover. Stormwater 

utilities are also able to collect fees from all property owners, 

including those otherwise exempt from property taxes. 

The 2017 Western Kentucky University Stormwater Utility 

Survey identified 1,639 stormwater utility programs in 

40 states. The smallest program served a population of 88. 

As a growing suburb of Kansas City, Lenexa, 

Kansas is managing the effects of increased 

impervious cover through nature-based solutions. 

To integrate nature-based solutions into major 

capital projects, such as rebuilding roads and 

parks, Lenexa is using funds from several internal 

and external sources:

1. sales tax revenues;

2. stormwater utility fees;

3. new development fees; and

4. state and federal grants. 
IMPLEMENTATION PHASE | 21

Financing Nature-Based Solutions with the Clean Water 

State Revolving Fund

The Clean Water State Revolving Fund (CWSRF) is a financial 

assistance program established through the Clean Water Act. 

It provides low-interest loans for water infrastructure projects 

(including nature-based solutions) that address water quality. 

The EPA provides funding to all 50 states and Puerto Rico 

to operate CWSRF programs. States provide a 20-percent 

match for all federal funds. Since the CWSRF was established, 

it has supplied more than $43 billion to state programs. 

With that support, states have given $133 billion in loans 

to communities. 

For most projects, public, private, and non-profit entities 

get an average interest rate of 1.4 percent. The loan period 

must not exceed 30 years. A key benefit of the program’s low 

interest rate is that communities may be able to cover debt 

service payments without raising the rates for local taxes or 

fees. By further reducing operation and maintenance costs 

for infrastructure, nature-based solutions help communities 

meet their loan repayment terms.

The Camden County Municipal Utility Authority 

was awarded a $5.4 million loan from the New 

Jersey Infrastructure Bank, the state’s CWSRF, 

to fund a city-wide nature-based solutions project. 

The project has an estimated cost savings of 

$3.1 million over the 30-year loan. It involves 

building nature-based solutions throughout the 

City of Camden, including rain gardens and porous 

concrete sidewalks. The project also has a green 

jobs component. In the past 3 years, Camden 

trained about 240 youths in nature-based 

solutions maintenance. 

Managed dune on Long Beach Island, NJ. Dune restoration is an 

example of nature-based solutions that can be funded by many 

federal funding sources.
IMPLEMENTATION PHASE | 22

INCENTIVIZING PRIVATE INVESTMENT

While public investment in nature-based solutions is critical 

and continues to evolve, communities should also investigate 

ways to incentivize nature-based solutions on private 

property. One option is to make these investments more 

appealing to homeowners, businesses, and developers. 

Incentives typically use public funds to seed additional 

investments by private parties. Innovative incentive-based 

programs can create unique ways to fund and build 

nature-based projects. Some examples are public-private 

partnerships, rebates and financing programs, grants, and 

cost-share arrangements. Banking or credit trading programs, 

development or redevelopment incentives, local fee or tax 

discounts, and community awards and recognition programs 

have also been useful. Such voluntary programs can increase 

the use of nature-based solutions on private land, where 

most traditional development takes place. They can balance 

regulations and may relieve some of the administrative 

burden that communities carry when adopting and managing 

their own nature-based policies or projects. 

Public-Private Partnerships

Through partnerships, local governments and private-sector 

parties can invest together in public asset or service projects. 

These long-term partnerships are most successful when they 

have shared goals and benefits. Private partners may have 

more flexibility than a public agency. Linking any partnership 

with performance-based payments can encourage 

efficiencies in time and cost. 

Local officials can work with private partners to develop and 

finance nature-based solutions in many ways. One key step 

is to demonstrate the benefits of nature-based solutions – to 

make the business case locally. Another is to offer continued 

technical assistance and coordination for nature-based 

projects. This may include policy support, training, or other 

ways to build capacity. Finally, seek long-term agreements 

with any private stakeholders that would provide these 

services traditionally delivered by the public sector. Above all, 

communities should create partnerships with private parties 

for specific projects. 

Green Certification Incentives

Certifications such as LEED and SITES offer guidance 

for developers to incorporate sustainability when 

designing buildings and landscapes. States and 

communities can provide incentives to developers to 

incorporate these certifications into new development 

and redevelopment projects. 

Rebates and Financing Programs

Rebates, tax credits, or low-interest loans can encourage 

nature-based solutions and practices. For example, Tucson 

Water sponsors a Rainwater Harvesting rebate program. It 

provides rebates of up to $2,000 to single-family residential 

or small commercial customers who install a rainwater 

harvesting system. Eligible options include passive rainwater 

harvesting, which directs and retains water in the landscape, 

and active rainwater harvesting, such as tanks that store 

water for later use. Often, participants in this kind of program 

need capital at the beginning of a project. Since residents 

may not want or be able to fund improvements on their 

own, many communities target their rebates and loans at 

businesses. Philadelphia, for example, offers low interest 

(1 percent) loans for nature-based solutions retrofits on 

non-residential property. 

Another finance option for promoting nature-based solutions 

is the Department of Energy's Property Assessed Clean 

Energy (PACE). Communities can use PACE to help property 

owners finance nature-based solutions. It also applies to 

installing renewable energy or energy-efficient assets on 

private properties. Depending on state laws, communities 

can create PACE programs by issuing a revenue bond to the 

property owner. PACE borrowers can benefit immediately 

from new nature-based solutions and repay their debt by 

increasing property taxes. For example, increases are at a 

set rate for an agreed-upon term, typically 5–25 years. The 

PACE assessment is attached as a tax on the property, not 

the property owner. Because PACE is funded through private 

loans or municipal bonds, it creates no liability to local 

government funds.

In Prince George’s County, Maryland, a new water 

resources plan proposed extensive stormwaterrelated restoration. Also, 20 percent of the 

county’s impervious surfaces needed to be 

replaced. Recognizing its challenges in volume and 

timing, the county built a public-private partnership. 

A private party was contracted to restore 2,000 

acres, with the potential for extending the contract 

to an additional 2,000 acres if it met performance 

metrics. This partnership met its project costs and 

deadlines. It was also recognized for meeting social 

goals such as hiring and training minority-owned 

businesses and focusing on projects in 

lower-income areas.
IMPLEMENTATION PHASE | 23

Grants and Cost-Share Agreements

Communities can also encourage nature-based solutions 

by directly funding property owners or groups. Onondaga 

County, New York has a Green Improvement Fund that 

funds nature-based solutions on private commercial and 

non-profit properties. Applicants in the target sewer districts 

can choose their own nature-based solutions techniques, 

but grants are determined by the amount of stormwater 

the project captures. The Green Improvement Fund has 

awarded 88 grants since 2010, for a total of nearly $11 

million. Nature-based solutions projects have included the 

installation of porous pavement, added green space, rain 

gardens, green roofs, and infiltration projects. Together, the 

completed projects can capture more than 38 million gallons 

of stormwater runoff per year. Philadelphia manages a similar 

voluntary retrofit grant program. It covers the upfront costs 

of typical nature-based solutions on private property if the 

owner agrees to maintain it.

Banking or Credit Trading 

Banking or credit trading programs can help developers meet 

onsite stormwater retention requirements when nature-based 

solutions are not feasible onsite. They create a mechanism 

for developers to pay the community to build nature-based 

solutions off site. This concept is like that of wetland 

mitigation banking. 

Environmental Impact Bonds

Several traditional debt financing tools are available to 

communities. However, environmental impact bonds (EIBs) 

are a recent innovation. EIBs can help communities obtain 

upfront capital for hard-to-finance environmental projects. 

These bonds link project performance incentives to desired 

environmental outcomes. In practice, most EIBs function like 

traditional bonds, with a fixed interest rate and term. Unlike 

normal bonds, they offer investors a “performance payment” 

if projects perform better than expected. The primary benefit 

of this model is that it shifts the project performance risk to 

a private party and ties borrowing costs to the effectiveness 

of a project. If a project underperforms, investors must 

reimburse the borrowing entity; if it overperforms, the entity 

pays the investors. This model has potential applications for 

multiple areas of environmental restoration and resilience, 

including nature-based solutions. 

Washington DC's Stormwater Retention Credit 

(SRC) Trading program allows large-scale 

development and redevelopment projects to 

meet stormwater management requirements 

by buying credits from properties with voluntary 

nature-based solutions improvements. The credit 

trading program encourages developers to choose 

cost-effective, nature-based solutions. It also 

creates an incentive for other property owners to 

integrate green stormwater practices. Through 

this program, properties that use nature-based 

solutions or reduce impervious cover can earn 

and sell credits to the Department of Energy 

and Environment or in an open market. 

Environmental Impact Bonds have already been 

issued in several cities, including Washington, DC and 

Atlanta, Georgia, where they are funding a range of 

nature-based solutions projects to reduce stormwater 

runoff and address critical flooding issues. 

Modern rooftops, Brooklyn Heights, New York City
IMPLEMENTATION PHASE | 24

Development or Redevelopment Incentives

Communities can update their land use, zoning, or other 

local regulations to provide incentives for using nature-based 

solutions. Zoning incentives can allow a greater height, 

density, or intensity of development if a developer uses 

nature-based approaches. One common zoning incentive 

is an increased floor-to-area ratio (FAR), which regulates 

the density of development on a site. The City of Portland, 

Oregon offers increased FAR as an incentive for installing 

green roofs. Communities can also exempt green roofs 

or pervious pavements from any regulations that apply to 

impervious cover. 

More incentives for adopting nature-based solutions 

approaches can be used in the development application 

and review period. These include discounted application 

fees and discounted or waived maintenance bonding 

requirements. The City of Chicago, Illinois waives permit fees 

for developments that meet specific nature-based solutions 

thresholds. For redevelopment, communities can also give a 

one-time tax credit for using nature-based approaches that 

benefit the public. 

More communities are moving from strict standards to 

more flexible instruments that include incentives. They are 

encouraging developers to use nature-based solutions through 

unified development ordinances. They are providing options for 

flexibility and creativity during the site plan review process. 

Stormwater Utility Incentives

Communities can use a local stormwater utility fee program 

to establish a dedicated funding stream for nature-based 

solutions. This type of program can offer incentives for 

property owners to incorporate nature-based solutions. 

For example, a program that charges users based on their 

property’s impervious area could offer discounts when 

property owners “disconnect” some of their impervious 

area from the storm sewer system by adding nature-based 

solutions. Other incentives may be offered for creating more 

buildings with green roofs and other retention or infiltration 

systems, or for rainwater harvesting.

The City of Norfolk, Virginia recently created a 

“resilient quotient system.” Developers earn points 

for adopting measures that reduce flood risk, manage 

stormwater, and increase energy resilience. Under 

this system, new developments must meet different 

resilience point values. The points are based on 

the size and type of development (residential, 

non-residential, mixed-use). Developers get points 

for installing green roofs, rain gardens, or other 

stormwater infiltration systems; using pervious paving 

systems; providing a community garden space; 

preserving natural, native vegetation; planting trees; 

and preserving large, non-exotic trees.

In Nashville, Tennessee, properties in a combined 

sewer overflow area may receive a discount on their 

sewer fees if nature-based solutions are incorporated. 

Similar incentives are part of stormwater utility 

programs in Philadelphia and Washington, DC. 

In Lancaster, Pennsylvania, stormwater credits 

available to all property owners can reduce fees by 

up to 50 percent a year. To qualify, owners must use 

nature-based solutions on the property. 

Father and toddler examining plants in a park in Norfolk, VA
FEDERAL FUNDING OPPORTUNITIES | 25

FEDERAL FUNDING OPPORTUNITIES

As governments have become more aware of the many benefits and financial value of nature-based 

solutions, federal agencies have provided more funding opportunities. Each year, the federal 

government provides millions of dollars in grants for nature-based infrastructure projects. These projects 

lead to safer, more resilient communities. Other levels of government and private organizations also fund 

and invest in nature-based solutions.

Some common nationally available federal grant funding opportunities for nature-based solutions are 

summarized below. This is a starting point, not a complete list. Additional funding may be available from 

other federal programs, state agencies, non-profit organizations, conservation districts, universities, and 

private foundations.

NATIONAL OCEANIC AND ATMOSPHERIC ADMINISTRATION (NOAA)

COMMUNITY-BASED RESTORATION PROGRAM

DESCRIPTION PROJECTS

NOAA’s Community-Based Restoration Program provides 

funding for coastal and marine habitat restoration projects. 

The program supports projects that use a habitat-based 

approach to rebuild productive and sustainable fisheries, 

contribute to the recovery and conservation of protected 

resources, promote healthy ecosystems, and yield 

community and economic benefits. 

Typical habitat restoration projects include hydrologic 

reconnection of wetlands, coral reef restoration, and 

bivalve shellfish habitat restoration that includes some 

form of protection from harvesting. Feasibility, design, 

and implementation projects are all eligible.

NATIONAL COASTAL RESILIENCE FUND

DESCRIPTION PROJECTS

The National Coastal Resilience Fund, a public-private 

partnership between the National Fish and Wildlife 

Foundation, NOAA, Shell, and TransRe, provides grants to 

support natural infrastructure. Established in 2018, the 

Fund invests in projects that protect coastal communities 

from extreme storm and flood events while enhancing 

natural habitat. 

Community capacity-building and planning, engineering, 

design, and construction projects such as living shoreline, 

floodplain-habitat restoration design, marsh and wetland 

habitat restoration, and natural channel design.
FEDERAL FUNDING OPPORTUNITIES | 26

The City of Cuyahoga Falls, 

Ohio used Hazard Mitigation 

Grant Program funding to 

buy and remove four homes 

that had flooded repeatedly. 

The resulting open space 

was used to create The Rain 

Garden Reserve, a beautifully 

landscaped public space. 

The Reserve also serves 

as a stormwater retention 

area, reducing flood risk for 

neighboring homes.

U.S. DEPARTMENT OF HOMELAND SECURITY (DHS) – 

FEDERAL EMERGENCY MANAGEMENT AGENCY (FEMA)

HAZARD MITIGATION ASSISTANCE

DESCRIPTION PROJECTS

FEMA’s Hazard Mitigation Assistance (HMA) includes three 

funding programs for risk reduction activities. They are 

the Hazard Mitigation Grant Program, Flood Mitigation 

Assistance Program, and Building Resilient Infrastructure 

and Communities (BRIC). States, territories, tribes, and 

local communities may apply for HMA funding if they meet 

all eligibility criteria for each program, including having a 

FEMA-approved hazard mitigation plan.

Note: BRIC replaces the Pre-Disaster Mitigation Program. 

HMA funds projects for a broad range of hazards, including 

drought and flood risk reduction projects, such as aquifer 

storage and recovery, floodplain and stream restoration, 

and flood diversion and storage. Reforestation projects in 

wildfire-affected areas may also be eligible. 

BRIC Prioritizes projects that mitigate the risk to public 

infrastructure and community lifelines, incorporate naturebased solutions, and support modern building codes. 

Public Assistance (PA) is FEMA’s largest grant program, 

providing funds to assist communities responding to and 

recovering from declared disasters. The program provides 

funding for both restoring community infrastructure and 

increasing resilience of disaster-damaged facilities. Funding 

is not awarded on a competitive basis and there is no 

upper limit on available support.

Primarily erosion control projects, such as bank or slope 

stabilization. There are many opportunities to expand the 

use of nature-based solutions with PA mitigation projects 

provided they meet the eligibility requirements.

Rain garden in Euclid Creek Watershed, OH. Photo: Cuyahoga Soil & Water Conservation District
FEDERAL FUNDING OPPORTUNITIES | 27

U.S. ENVIRONMENTAL PROTECTION AGENCY (EPA)

SECTION 319 NONPOINT SOURCE MANAGEMENT PROGRAM

DESCRIPTION PROJECTS

The Section 319 Nonpoint Source Management Program 

(Section 319) was established under the Clean Water Act. 

It helps focus efforts to address nonpoint source (NPS) 

pollution caused by land runoff from rainfall and snowmelt. 

Section 319 funds can be used for technical assistance, 

financial assistance, education, training, technology 

transfer, demonstration projects, and regulatory programs. 

Contact your state-designated NPS Program Coordinator 

for more information.

Nature-based solutions demonstration projects related 

to water quality improvements may also provide hazardreduction co-benefits; these may include stream 

restoration, riparian buffer creation, wetland creation, 

rain gardens, and other bio-retention projects.

U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT (HUD)

COMMUNITY DEVELOPMENT BLOCK GRANT

DESCRIPTION PROJECTS

The Community Development Block Grant (CDBG) 

Program provides funding to ensure decent affordable 

housing, provide services to the most vulnerable in our 

communities, and create jobs through expanding and 

retaining businesses. Since 2001, the CDBG-Disaster 

Recovery Program has provided additional assistance 

to areas affected by Presidentially declared disasters. 

This program supports disaster recovery activities such 

as housing redevelopment and rebuilding, infrastructure 

repair, and economic revitalization.

In August 2019, HUD announced its first allocation of 

CDBG-Mitigation funds. Nearly $7 billion was made 

available to 14 grantees affected by recent Presidentially 

declared disasters, solely for the purposes of mitigating 

future disasters.

CDBG-Disaster Recovery: Infrastructure, housing, and 

economic development projects may incorporate naturebased solutions, usually at the neighborhood or site scale.

CDBG-Mitigation: In addition to infrastructure, housing, 

and economic development projects, planning and 

administration projects can reduce regulatory barriers 

to nature-based solutions and help make mitigation 

investments standard practice. 

CDBG Funding is unique in that it may be used as a 

non-Federal match for other mitigation programs, such 

as HMA and PA Mitigation.
KEY TAKEAWAYS | 28

KEY TAKEAWAYS FOR LOCAL COMMUNITIES

Communities that invest in nature-based approaches to reducing disaster risk can save money, lives, 

and property in the long-term AND improve quality of life in the short term. The key takeaways from 

this guide are:

1. Building the business case for nature-based solutions can generate widespread interest among diverse organizations. 

Nature-based solutions can reduce the loss of life and property from some of our Nation’s most common natural hazards, 

such as flooding, storm surge, drought, and landslides. The biggest selling point for nature-based solutions, though, is 

the many ways it can improve a community’s quality of life and make it more attractive to new residents and businesses. 

Unlike gray infrastructure, nature-based solutions projects serve multiple functions and goals.

2. To build resilience with nature-based solutions, diverse partners must collaborate. Planning and carrying out nature-based 

solutions requires many departments and processes to work together. Departments will need to cooperate to reduce the 

barriers to nature-based solutions and make using nature-based solutions a standard practice.

3. Scaling up nature-based solutions will require communities to align public and private investments. Communities can 

get more bang for their buck by using a range of strategies to enable public investment in nature-based solutions and 

incentivize private investment.

4. Many types of grant programs can be leveraged to fund nature-based solutions. Since nature-based solutions provide 

a variety of co-benefits, a single project may be eligible for many different private, state, and federal grant programs. The 

key to leveraging these resources is to think outside the box when applying for funding, and to apply to diverse programs.

Volunteers planting sea grass on a beach in Florida.
RESOURCES | 29

RESOURCES

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Environmental and Energy Study Institute. Federal Resources for Nature-Based Solutions to Climate Change. (2020). Retrieved from: 

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U.S. Department of Homeland Security. (2020). Resources for Applying for Hazard Mitigation Assistance Grants. https://www.

fema.gov/grants/mitigation/hazard-mitigation-assistance-guidance.

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