Message from Dan Mundy - Broad Channel Civic Association Re: Biggert/Waters Flood Reform Act

Following up on the unamious resolution passed by the Broad Channel Civic Association at our meeting last thursday in which 400 residents expressed absolute outrage at the implications of the 2012 Biggert Waters flood reform act and the manner in which it will DECIMATE every coastal community that is within the affected area ( an area now expected to grow dramatically due to the recently released FEMA ABFE maps) the below news story from the local new jersey paper is [provided] for your review. 

Read the highlighted quotes in red which will indicate that our concerns are well founded. 

This law will have a massive effect on both homeowners who plan on staying in their homes as well as those who may ,either now or sometime in the future, seek to sell their homes. 

At this same meeting the civic association had passed a second unamious resolution rejecting the FEMA ABFE maps in that they are seriously flawed in both their extreme elevations mandated and in the designation of all of Broad Channel as a "V" zone area. 

It is stunning to see the lack of on the ground review of this area in the released advisory maps which seek to identify homes along crossbay blvd as being exposed to  potential waves of three feet- which flys in the face of all common sense ,while failing to identify the dozens of homes in Belle Harbor , which actually were destroyed by 8-10 foot waves, as V zone instead applying the less restrictive A zones to all.

We need to immediately educate all of the danger of this legislation and seek to work with our neighbors up and down the coast to revise this legislation and remove it more onerous and impacting provisions. 

http://www.shorenewstoday.com/snt/news/index.php/brigantine/ne s/35431-municipal-coalition-presses-for-flood-zone-insurance-changes.html 

New Jersey’s shore municipalities continue to wrestle with the issues regarding FEMA’s advisory flood plans and the proposed increase in flood insurance premiums for homeowners in the affected areas. It appears that there may be adjustments by the federal government in both areas, but county and local officials were hesitant to go on the record regarding their conversations and negotiations with federal officials.

There does appear to be some hope for home owners whose property is presently placed in the dreaded “V” or velocity zones. The pressure placed on elected officials at the local, state and federal level appears to be working, as all parties struggle to find a plan that does not decimate the local population. Read what Margate officials have said about coalition efforts.)

The flood insurance issue is one that will not go away, but lawmakers have suggested remedies that might mitigate the impact.

The Biggert-Waters Flood Insurance Reform Act that was signed into law in July 2012 was designed to rescue the National Flood Insurance Program, which had been stable and solvent until assaulted by the claims from Hurricanes Katrina, Rita and Wilma. Those disasters put the program $18 billion dollars in debt, forcing federal legislators to come up with a funding solution.

The Flood Insurance Reform Act allows FEMA, which runs the program, to raise premiums as much as 25 percent a year over the next five years. Owners of second homes and homes that have suffered repeated floods would pay higher premiums. But home owners are suffering sleepless nights with the resultant confusion and the questions generated by this issue and the connected issue of re-building in the flood areas. Many residents feel they are between the proverbial rock and a hard place.

FEMA shared the following information regarding flood insurance premiums with municipal officials during a January meeting. All numbers are based on full insurance coverage ($250,000 for the building and $100,000 for contents).

A home at Base Flood Elevation 0 (BFE) would have a potential insurance premium of $12,000 in a V zone and a premium of approximately $2,000 in an AE zone.

A home 4 feet below BFE would have a proposed premium of approximately $24,000 in a V zone and a proposed premium of $14,000 in an AE zone.

For a home 2 feet above BFE, the proposed premium would be approximately $4,000 in a V zone and less than $1,000 in an AE zone.

These premiums would be phased in over a five-year period.

New Jersey State Sen. Jeff Van Drew has suggested that the Biggert-Waters act be revised and the planned increases in insurance premiums be slowed. He was quoted as saying that the hikes in premiums on top of the damage caused by Sandy and the new flood maps “are more than our coastal economy can tolerate.”

The increases will come; the only questions are how much and how soon.

The Press of Atlantic City published the following: “In four of the past eight years, claims have exceeded the amount paid in premiums, and the interest on the NFIP’s debt consumes up to 750 million a year.”

The current mood in federal halls is that areas in repetitive need of federal bailouts should not be supported in perpetuity.

Steve Marchel, a Margate resident, suggested two alternatives in a letter to the Press. His first suggestion was that FEMA consider offering homeowners the option of a much higher deductible – perhaps as high as $20,000 – in order to reduce the yearly premiums. He also suggested that FEMA limit its flood insurance liability to $150,000 a claim (currently $250,000) which would put some of the liability on the lenders – obviously not a popular choice for them.

Atlantic County shore municipalities have formed a coalition to address these concerns by developing strategies and speaking with one voice to both state and federal officials. This strategy appears to be paying off.

The word used by many city, county and state officials is ‘patience’ – something that those who are still not living in their homes do not want to hear. This is a painful time for many, but officials are working to alleviate that pain and bring relief and answers to those in need.

Dan Mundy

NOTE: A summary of the Biggert/Waters Flood Reform Act of 2012 can be found here.