ASFPM Update and NFIP Reform KAMM 10 th Anniversary Conference September 9, 2014
AND HE SAID Floods are 'acts of God,' but flood losses are largely acts of man. 1945 PhD Dissertation Human Adjustments to Flood by Gilbert F. White
ASFPM s Mission Mitigate the losses, costs, and human suffering caused by flooding. and 3
Protect the natural and beneficial functions of floodplains. 4
What does ASFPM do? National CFM Certification State Chapter Services & Support Legislative Activities Work on National Policy Issues Develop Publications & Resource Materials for Floodplain Managers No Adverse Impact (NAI) Conferences & Events Continuing Education Development (ASFPM Webinar Series)
Flood Mapping for the Nation March 2013 ASFPM Report Cost Model developed to: Complete mapping inventory for entire country $4.5 - $7.5 billion Steady state maintenance cost (of the mapping data $116 - $275 million Recommended all flood hazard areas in country be mapped Recommended nationwide LIDAR Fits well with the Congressional authorization
ASFPM Foundation: Holistic Coasts Report Resulting from 2013 ASFPM Foundation Forum 6 key recommendations for policy makers Focus is on resiliency, state and local leadership, investments in science and data, and self responsibility
Floodplains and Dam Risk Report Examines relationship between dams and floodplain management Several recommendations including prevent risk creep, mapping inundation areas, public availability of inundation areas, and strong dam safety programs
NAI How-To Guides 5 NAI level tools in each guide Based on 7 building blocks in NAI Toolkit Completed Mitigation and Infrastructure in 2013 Will complete Planning and Education/Outreach by October 2014 Two additional for 2015
Great Lakes Coastal Resilience Planning Guide www.greatlakesresilience.org
National Policy Issues The broad problem of flood-loss reduction is that the rate at which flood losses are being eliminated by construction of engineering or land-treatment works is of about the same magnitude as the rate at which new property is being subjected to damage. - GFW
FY 15 Budget FEMA Flood Mapping. $84.4m. This is down from $220m in '10, $181.6 m in FY '11, $97.7 in FY '12 and $100 m in FY '13, $95 FY 14 Pre Disaster Mitigation. $0 Flood Mitigation Assistance. $150 m. Up from $100 m in FY 14. EMPG. $350 million. About the same as previous years. NPGP being proposed again
NFIP Reforms 2012 and 2014 BW-12 Reauthorized the National Flood Insurance Program (NFIP) for 5 years through September 30, 2017 Focus was fiscal solvency of program Signed July 6, 2012 Homeowners Flood Insurance Affordability Act (HFIAA) of 2014 Retreat from some BW-12 provisions, set some longer glide paths to full risk rating Signed March 21, 2014
Why the Changes? 1. Improve long-term sustainability and financial soundness 2. Respond to the rising costs and consequences of flooding 3. Encouraging private market participation Washington Post 9-17-13 GW (HR 3370) TAKES THE OPPOSITE APPRAOCH CREATES NEW SUBSIDIES AND LIABILITIES IN THE NFIP 14
Flood Mapping Establishes the National Flood Mapping Program First time in legislation $400 million annually in authorization All maps must show 100-yr and 500-yr for: All populated areas and areas of potential growth Residual risk (within 100-year FP) behind levees Residual risk (within 100-yr FP) below dams Mapping of non-structural mitigation features Flood data developed on watershed basis (already doing) HR 3370 WAIVES MAP CHANGE PROCESSING FEES ASSOCIATED WITH FLOOD MAP UDATES RESULTING FROM HABITAT RESTORATION PROJECTS
Flood Mapping Establishes the Technical Mapping Advisory Council to make recommendations to FEMA Advises FEMA on mapping guidelines and map update processes Improve accuracy, ease-of-use, distribution How to use best available climate science Requires notification of property owners who are included or excluded from areas where mandatory purchase is required HR 3370 REQUIRES FEMA OBTAIN CERTIFICATION FROM TMAC THAT ITS MAPPING PROCESS, WHEN APPLIED, RESULTS IN TECHNICALLY CREDIBLE FLOOD HAZARD DATA
Flood Mapping Limits appeals to be based on the sole ground that the proposed data is scientifically or technically incorrect Establishes a Scientific Review Panel to hear certain appeals on flood mapping issues Mandatory property owner notification if new maps result in in our out of mandatory purchase area. HR 3370 PROVIDES FOR THE REIMBURSEMENT OF APPLICANT COSTS (ENGINEERS, SURVEYORS, ETC. FOR SUCCESSFUL APPEAL OF MAP ERRORS IN FEMA FLOOD MAPS
Mitigation Changes Combines NFIP mitigation grant programs into one. Makes demolish-rebuild an eligible item under all programs Allow some new flexibility to acquire or relocate SRL properties Establishes rational cost shares vs. existing programs Severe Repetitive Loss up to 100% Federal Repetitive Loss up to 90% Federal All other up to 75% Federal
Mitigation Changes Establishes firm 5-year limitation on grant awards Limits grants under NFIP mitigation programs of 50K for state mitigation plans and 25K for local mitigation plan Establishes extra funds for states to provide additional technical assistance to communities HR 3370 REQUIRES FEMA TO DEVELOP FLOOD MITIGATION GUIDELINES FOR PROPERTY OWNERS FOR OPTIONS OTHER THAN ELEVATING
HFIAA Impact in Premiums Maximum annual increase is 15% annually generally speaking for NFIP policies. BW-12 had a maximum of 20% Pre-FIRM Subsidy Elimination Will now include all properties including primary residences that already have policies Minimum 5% of total premium increase for subsidy elimination Premiums for primary residences can go up a maximum of 18% annually 25% annual increase required (same as in 205 from BW-12) for non-primary residences, businesses, SD/SI, cumulative claims, SRLs 20
HFIAA Impact in Premiums Grandfathering Subsidy Elimination Yes, Section 207 was eliminated; however it was replaced with new grandfathering section Existing grandfathered policies seem to continue to be grandfathered... but New policies (after date of enactment of HFIAA) for properties newly identified in SFHAs will be on a glide path to full actuarial rates. Year 1..PRP rates Subsequent years..follows rate increase path for phase out of pre-firm subsidy 21
Bad HFIAA Provisions All policies get a new ANNUAL surcharge $25 for primary residence properties $250 for non-residential properties and non-primary residential properties. Surcharges would be deposited in the NFIP Reserve Fund, which was established to ensure funds are available for meeting the expected future obligations of the NFIP New 1% goal FEMA is instructed to try and minimize the number of policies with annual premiums that exceed one percent of the total coverage provided by the policy Existing V-Zone rates already exceed this! Allows communities to be reimbursed for successful challenges of errors found in FEMA maps 22
Good HFIAA Provisions Requires an Affordability Framework Restores substantial improvement to 50% (was changed to 30% in BW) Study of Voluntary Community-Based Flood Insurance Options Requires mapping of non-structural flood mitigation features such forests, marshlands, etc. Requires FEMA to clearly communicate full flood risk determinations to individual property owners regardless of whether their premium rates are full actuarial rates 23
HFIAA Bottom Line Preserves basic structure of BW-12, does not repeal most of it It modifies some annual increases and generally increases glide path to full actuarial rates Contrary to the name, it did not do much to address flood insurance affordability Addressed immediately going to full risk rates upon sale or new policy... Good Some provisions nibble around the edges Lots of studies...no implementation or even pilots Some peoples total policy costs will be higher under HFIAA than under BW-12! All subject to FEMA s final interpretation! 24
Options and Actions to Address Flood Insurance Affordability 25
Options & Action Property Owners Identify what full-risk rate is; get an EC Look into effect of higher deductibles Look into rate-reducing mitigation actions; e.g. Add vents Fill in/up enclosures Use Breakaway walls Elevate 26
Options & Action Property Owners FHA 203K Loan FHA's primary program for the rehabilitation and repair of single family properties Combines financing for purchase or refinance and repairs into one loan Can be used in cases where property owner finds flood insurance too expensive Must be done by a FHA approved lender they already exist throughout the country Competitive mortgage rates although mortgage insurance is required for five years after loan 27
Options & Action Communities and States Join CRS/Increase CRS Rating Be aware of potential mitigation grants Provide technical advice and build capacity to do so Have Certified Floodplain Managers on staff Elevation Certificates Building/Rebuilding to reduce flood risk Redouble focus on mitigation planning and develop sound actions to mitigate risk 28
Options & Action Communities and States Create state and local mitigation programs Mitigation Rebate Programs Grant programs that provide local match to federal programs Duplicate underfunded federal programs Implement higher standards Freeboard (not just one foot anymore) Standards for areas outside FEMA 100-year floodplain but where flood losses occur 29
Pawleys Island, South Carolina Pawleys Island: Raising new buildings is only first step for town July 31, 2014 By Charles Swenson Coastal Observer When Pawleys Island Town Council held a public hearing this month on a proposal that will require new and remodeled homes to be elevated an extra 3 feet there was only one comment against it. And that was offered second hand. Council Member Mike Adams got a call from a property owner concerned that the higher buildings would change the look of the island. He passed along the objection during the council s discussion, but added, I don t necessarily subscribe to that. The measure passed unanimously and will gain the town points under a federal flood insurance program that reduces premiums for policyholders in participating communities.
Odessa, Texas The city map on this brochure approximates the location the Special Flood Hazard Areas (SFHA). You can view this map in a larger format on City of Odessa s web- site in webmaps at www.odessa- tx.gov. You can request an Elevation Certificate for any residential or commercial structure in the flood plain from the City Engineering Division for a fee and take it to your insurance agent for an accurate flood insurance premium quote. The City s engineering division can be contacted at 432-335-3242.
South Holland, Illinois
State of Colorado
State of Connecticut Shore-Up Connecticut is a state established low interest mitigation loan program established in July 2014 For coastal shoreline A and V zone properties only Eligible properties also include owner occupied rentals and small businesses
Reform Legislation Resources www.nfipiservice.com www.fema.gov/flood-insurance-reform 35
Reform Legislation Resources www.floods.org 36
Other Resources http://floodinsurancetraining.com/theory-of-elevation-rating/ http://floodinsurancetraining.com/ec-made-ez-online/ 37
Conclusion As floodplain management professionals, we have a responsibility to be educated and help citizens understand options www.floods.org
Thank You The present status of floodplain management does not encourage complacency... On balance, progress has been far short of what is desirable or possible, or what was envisaged at times when the current policies and activities were initiated - GFW Credit given to the Natural Hazards Observer and Rob Pudim for all illustrations in this presentation