Maximising the net social benefit of the construction of post‐disaster alternative housing projects

The widespread destruction that follows large‐scale natural disasters, such as Hurricane Katrina in August 2005, challenges the efficacy of traditional temporary housing methods in providing adequate solutions to housing needs. Recognising these housing challenges, the Congress of the United States allocated, in 2006, USD 400 million to the Department of Homeland Security to support Alternative Housing Pilot Programs, which are intended to explore the possibilities of providing permanent and affordable housing to displaced families instead of traditional temporary housing. This paper presents a new methodology and optimisation model to identify the optimal configurations of post‐shelter housing arrangements to maximise the overall net socioeconomic benefit. The model is capable of quantifying and optimising the impacts of substituting temporary housing with alternative housing on the social and economic welfare of displaced families as well as the required additional costs of doing so. An application example is presented to illustrate the use of the model and its capabilities.