Broward County Environmental Licensing and Building Permitting Division

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1 Overview of FEMA Flood Insurance Rate Changes and Regulatory Implications of the FEMA Coastal Restudy Leonard Vialpando, PE, Director Environmental Licensing and Building Permitting Division

2 Background Nationalal Flood Insurance Program (NFIP) Federally-backed flood insurance Mandatory purchase requireme rement for mortgaged properties within the special flood hazardard area $24 billionlion NFIP deficit

3 Flood Insurance Rate Changes April 1, 2015 effective date Homeo eowner Floodod Insurance Affordabilityity Act of 2014 (HFIAA) Modification of the 2012 Biggert Waters Flood Insurance Reform Act (BW-12) HFIAA moves NFIP towards solvency by phasing in actuarial rates

4 NFIP Statisticstics 5.3 million flood insurance policies nationwideide Insures s $1.3 trillion in property 2 million flood insurance policies in Florida 37% of all poli licies nationwideide Insures s $476 bill llion in property 322,000 policies in Browar ard County 6% of all poli licies nationwide Insures s $59 bill llion in property $133 millio ion in premiums paid by Broward County property owners annually ally* *Subject to change. Data a current as of 8/31 31/2014 and may be affecteded by changes depicted on the new flood maps that took effect August 18,

5 Summary of HFIAA Rate Changes Trans nsitions to susta stainable system New surcharges on all flood insurance poli licies Gradualal rate incr creaseses for subsidizedized policies Maintains Affordabilityity Restores Grandfathering Refunds for certain policy holders effecte cted by BW-12

6 New Surcharge for All Policies ies Surcharge offsets the subsidized policy costs to achieve the financial sustainability goals of BW-12. Adds a new surcharge to all policies (even full risk rate policies) until all subsidiesies are eliminated. $25 surcharge for a primary residence $250 surcharge for all other policies

7 Gradual Rate Increases 5% minimum increase for properties that receive e subsidized rates Approximately 20% of all policies Increases will occur when flood od insurance is reneweded 18% maximummum increase for primary residences 25% maximum increase Older business properties with subsidized sidized rates Older non-primary residences with subsidizedsidized rates Severeere Repetitive Loss Properties Subst stantial Damage/Substantial Improvement pre-firm prope perties

8 Grandfathering Restored BW-12 eliminated grandfathering Requ quired grandfathered polices to be full l rate in five years Immediate loss of grandfathering upon sale of property Home buyers can assume the seller s current rate Properties newly mapped into the flood zone are offered the same rate as properties located outside the Special Flood Hazard ard Area (preferredrred risk policy rates) for the first policy year. Subject to 5% to 25% rate increases until the policy reaches full-risk rate

9 Refunds Provides refunds of excessess premiums paid by certain policy holders affected by BW-12 Policyholders who were required red to pay their full-risk rate after purchasing a new flood insurance policy on or after July 6, 2012 Policyholders who renewed ed their policy after the Homeowner Flood Insurance Affordability Act was enacteded on March 21, 2014 and whose premium increased more than 18 percent

10 Subsidized/G sidized/grandfathered Policy Lower-cost flood insurance availablele to properties rties built in compliance with FEMA requirements in place at the time of construc structiontion or to properties rties newly mapped into a flood zone Allows policyholders to maintain their previous zone and BFE instead of shifting to the rate they would pay if the premium were calculated using the zone and BFE shown on the new FIRM Rate does not reflect actuarial risk (subsidized)

11 268,000 in Florida Subsidized Policies

12 19,568 in Broward County Subsidized Policiesies

13 Subsidized Policiesies Community Hollywood Hallandale Fort Lauderdale Pompano Beach Uninc. Broward County Dania Oakland Park Wilton Manors Hillsobro Lighthouse Point Deerfield Beach Miramar Davie Lauderdale -By- The Sea Tamarac Lauderhill Subsidized Policies 5,541 5,081 3,983 1,695 1, Community Sunrise Parkland Pembroke Pines Plantation North Lauderdale Lauderdale Lakes Pembroke Park Sea Ranch Lakes Coral Springs Cooper City Coconut Creek Margate Lazy Lake West Park Southwest Ranches Weston Subsidized Policies

14 2015 Flood Insurance Rate Changes For more inform ormation visit:

15 FEMA Coastal Restudy Multi tiyear coastal engineeringng analysis and mapping effort Identify, assess, and communicate hazards and risks associated with coastal flooding in the Southeastern U.S. Revises flood maps along the coast 33 of 79 panels impacted 20 communities impacted

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17 FEMA Coastal Restudy Suite of non-regulat regulatory products Coastal Floodod Risk Map Changes Since Last FIRM Coastal Depth Grids Increased Inundation Areas Wave Height Primary Frontal Dune Erosion Areas Dune Peak HAZUS Analysis

18 Updated Methodologies Current FIRMS and FIS 30 Transects Coastal Restudy FIRMS and FIS 100 Transects 25 shoreline miles 4 per mile

19 COASTAL A ZONES

20 FDEP Map

21 Benefits Regulatory Implications Increas reaseded protectiontion from floods and storms Better preparedred for ongoing oing sea level el rise Low cost? Concerns FEMA estimates costs as low as 0.25% to 1.5% of initial construction cost per each foot of additional height Potential for higher premiums for existing buildings due to phase out of subsidies Substantial Damage/ ge/substantial Improvementent requires existing structures to be elevated to the new BFE if improvem rovementsents or dama mage exceedeed 50% of present value

22 Regulatory Implications of FEMA Coastal Restudy FIRMS will include delineation of Limitit of Moderate Wave Action (LiMWA) Flood od Hazardard Areas with wave heights between 1½ ft and 3ft. Defined as Coasta stal A Zon ones in Florida Buildi lding Code.

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24 COASTAL A ZONES

25 COASTAL A ZONES

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28 Broward County Environmental Licensing and Building Permitting Division Regulatory Implications Florida Building Code Building Reside idential greater than 3 stories and nonreside idential construction Design and Constru struction of buildings and structures in flood od hazardard areas shall l be in acco cordance with ASCE 24. Coastal A Zones regulated as V zones

29 FBC-Building Coastal A Zones regulated as V zones Lowest floor elevation requireme rement increaseses to lowest horizontal structuraltural member (LHSM)

30 FBC-Buildi Building Coastal A Zones regulated as V zones Structures ures must be elevated ed on pier/pile foundations

31 FBC-Buildi Building Coastal A Zones regulated as V zones Break akawayay walls for enclosures below LHSM

32 Regulatory Implications Florida Building Code Residential R Buildi ldings and structures in floodod hazardard areas as designated as Coastal A Zon ones shall have the lowest flooror elevated to or above the base floodod elevation plus 1 foot, or the design flood od elevation, whichever is highe her. No freeboard required under this part for normal A zones

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34 Regulatory Implications For more information ion visit: www. ww.fema.gov/media-library/assets/documents/25986

35 QUESTIONS?