Flood Mitigation Workgroup Final Findings and Recommendations Part 1 Immediate Needs and Short-Term Plan. June 4, 2015

Transcription

1 Flood Mitigation Workgroup Final Findings and Recommendations Part 1 Immediate Needs and Short-Term Plan June 4, 2015 Background: On April 3, 2015, Louisville Metro experienced a significant rainstorm resulting in significant flooding in areas near rivers, creeks and streams. Many homes were affected with damages to personal and real property. On May 6, 2015, Mayor Greg Fischer announced the formation of a Flood Mitigation Workgroup, with the following appointees: Metro Council - Councilwoman Madonna Flood Metro Council - Councilman Dan Johnson Metro Council - Councilwoman Angela Leet Metro Louisville EMA All Hazards Mitigation Coordinator - Jim McKinney Metro Louisville Planning and Zoning - Jim Mims Metro Louisville EMA - Tonya Sangester Louisville MSD Chief Engineer - Angela Akridge Louisville MSD Executive Director - Greg Heitzman Louisville MSD Board Member - Joyce Horton Mott Louisville MSD Board Member - John Phelps The Flood Mitigation Workgroup was charged with developing recommendations to address the immediate needs in response to the Spring 2015 flooding in Louisville Metro and recommendations for a long-term plan to mitigate the impact of flooding. The initial set of recommendations is to be completed by June 5, 2015, and long-term plan and recommendations by November 1, Flood Mitigation Workgroup Findings: 1. On April 3, 2015, Louisville Metro and surrounding counties that drain into Louisville Metro experienced 6- to 8-inches of rain over a 12-hour period, overloading streams, ditches and storm pipes. 2. Prior to April 3, the ground was saturated due to significant snow and rain events in March

2 3. The MSD sanitary and storm sewer system has adequate capacity to handle up to a 3 inches rain over a 24-hour period, under normal ground saturation levels. 4. The April 3, 2015 rain event is the fourth major rain/flood event exceeding 6 inches in the last six years. 5. Approximately 12,000 structures (homes and businesses) are located within flood-prone areas in Louisville Metro. 6. Louisville Metro property owners are eligible for FEMA flood insurance, and approximately 5,100 homes have insurance policies through FEMA. FEMA flood insurance is required for federally backed home mortgages. 7. Louisville Metro participates in the FEMA Community Rating System (CRS) and currently has a rating classification of level 4, providing a discount of 30% on FEMA flood insurance premiums. This discount provides an estimated $1.7 million in insurance premium savings annually for Louisville Metro property owners. 8. Based on Louisville Metro s floodplain management program, including the 2006 Flood Plain Ordinance, FEMA has advised Louisville Metro will move to a Class 3 rating on October 1, 2015, providing an additional 5% discount in flood insurance rates, for a total 35% discount. This rating improvement will save policy holders approximately $300, Louisville Metro adopted amendments to the Floodplain Ordinance in November 2006, to comply with the National Flood Protection program. The Ordinance requires that homeowners get a building permit from Louisville MSD when rebuilding or making home improvements/repairs in the Floodplain. When cumulative improvement/repair costs equal or exceed 50% of the property value over a 10-year period, a building permit cannot be granted when the home cannot be elevated above the floodplain. 10. The Spring of 2015 rain and flood events impacted 1,000s of homes in Louisville Metro. Through June 4, 2015, 110 homes have applied for building permits, 88 homes have been granted permits, and 22 homes have reached the 50% limit for costs over a 10- year period. 11. The modification to the Flood Plain Ordinance, eliminating the rolling 10-year cumulative cost criteria, will lower the CRS rating by approximately 30 points, however, Louisville Metro s CRS rating will still exceed 3,500 points, allowing Louisville Metro to move to a Class 3 rating on October 1, Flood insurance premiums vary significantly, based on the size and value of the home, as well as the experience history. Annual flood insurance premiums may range from $500 to over $5,000 a year. 2

3 13. FEMA flood insurance premiums have been increasing and will continue to increase in the future. The federal subsidy for flood insurance has been reduced over the last five years, and Homeowners Flood Insurance Affordability Act of 2014, allows FEMA to increase the insurance premiums 18% to 25% annually. 14. President Obama issued a Presidential Declaration for Kentucky. With this declaration, Louisville Metro qualifies for emergency assistance for cleanup costs, temporary housing, and low-interest loans through the SBA and other grant mitigation assistance. 15. Through June 4, 2015, Louisville MSD has received home buyout requests from approximately 47 homeowners that experienced flood damage in the April 3, 2015, or prior events. 16. On May 28, 2015, Louisville Metro Council approved a 6-month temporary amendment to the Floodplain Ordinance, redefining substantial damage to the cost of restoring the structure on a per-incident basis and not on a cumulative rolling 10-year period. The substantial improvement definition will continue to be measured on a rolling 10-year period. 17. As a result of the temporary amendment to the Floodplain Ordinance, 10 homes previously denied a building permit, are now eligible for a building permit by MSD. As of June 4, 2015, 12 homes have been classified as meeting the substantial damage definition, and will not be issued a building permit. Flood Mitigation Workgroup Short-Term Recommendations 1. Amend the 2006 Floodplain Ordinance to relax the rolling 10-year cumulative cost criteria in defining substantial damage. (Louisville Metro Council adopted the temporary amendment on May 28, 2015.) 2. Develop a Quick Buy Assistance Program to offer financial assistance for the purchase of the most significantly damaged homes in the March-April 2015 flooding, using funding from FEMA, MSD, Louisville Metro, Small Business Administration, the homeowner and other available sources. The Quick Buy Assistance Program is a pilot program with limited funding provided from FEMA flood insurance proceeds, FEMA Increased Cost of Compliance funds, Louisville Metro funds, and Louisville MSD funds, pending approval of funds by appropriate funding agencies. The pilot program should be offered to eligible property owners from July 1, 2015 to November 15, The program is not intended to address the long-term needs for flood mitigation. 3. The following minimum eligibility criteria should be used for the Quick Buy Assistance Program: A. Single family home B. Homes impacted in the Spring 2015 rain/flood events 3

4 4. Financial assistance should be assigned based on the following criteria, as shown in Exhibit A attached: A. Priority A shall be defined as homes meeting the substantial damage definition in the temporarily amended Floodplain Ordinance. B. Priority B shall be established using a weighted point evaluation process, including the following criteria: i. Single event damage ii. 10 year cumulative damage ratio iii. First floor flood depth iv. Repetitive flood damage/improvements v. Impact from sewage vi. Personal health and safety 5. Identify up to $3.0 million in financial assistance from various sources, including FEMA, Small Business Administration, Louisville Metro, Louisville MSD, and other available sources to purchase up to 30 homes with the most significant damage from the Spring 2015 rain/flood events. Homeowners would be eligible for grants up to $100,000, and may be increased with available funding. 6. Property owners may apply between July 1 and November 1, By the 15 th of each month, a priority list of homes for financial assistance shall be established. Home owners on the priority list will have seven days to accept the grant. The financial assistance shall be available beginning July 1, through November 15, or until the funding is all committed. 7. Louisville MSD and Louisville Metro EMA shall manage the Quick Buy Assistance Program. 8. MSD and Louisville Metro shall pursue all available financial assistance from FEMA and other federal sources for home buyouts and repair costs. (i.e. FEMA Hazard Mitigation Grant Program and Pre-event Mitigation Program) The Flood Mitigation Workgroup is authorized to make recommendations, and recommendations only, to address the immediate and long-term needs in response to the Spring 2015 flood events. The Findings and Recommendations set forth above are for purposes of discussion and development of a potential Quick Buy Assistance Program and potential long-term mitigation plans, and are not intended to and shall not bind or commit the Flood Mitigation Workgroup, Louisville Metro, Louisville MSD, FEMA, the Small Business Administration or any other organization to the development, funding, or implementation of any short or long-term program or plan. 4

5 Flood Mitigation Workgroup Priority Criteria Recommended by Flood Mitigation Workgroup on June 4, 2015 Attachment A Priority A Requirements Damaged in Spring 2015 rains/flood events Property is Substantially Damaged based on the current Flood Plain Ordinance, as amended May 28, 2015 Single Family Residential Willing to allocate available ICC money for demolition Willing to transfer property to MSD or other public agency Process Applicant must complete application for grant assistance Program closes on September 15, 2015 or when funding is depleted Application cutoff dates for consideration July 1, August 1, September 1 Decisions will be made for Offers on the 15th of each of the application months All offers will be valid for 7 days, pending funding availability. The applicant may reapply the next month if they are not ready to accept the offer. Requirements Damaged in Spring 2015 rains/flood events Single Family Residential Willing to allocate available ICC money for demolition Willing to transfer property to MSD or other public agency Priority B Process Applicant must complete application for grant assistance Program begins on August 1 and closes on November 15, 2015 or when funding is depleted Application cutoff dates for consideration September 1, October 1, November 1 Decisions will be made for offers on the 15th of each of the application months All offers will be valid for 7 days, pending funding availability. The applicant may reapply the next month if they are not ready to accept the offer. Criteria Measure Max Points Increments 1 Single Event Damage % damage to home Cumulative Damage Ratio over past 10 years % of total home value First Floor Flood Depth feet above first floor Repetitive Flood Damage / Improvements Building Permits or other documentation such as FEMA damage records Impact from Sewage Sewage in home Personal Health and Safety Case by case evaluation Max Point Criteria / Criteria / Criteria / Criteria Measure Points Increments Points Points Points 1 Single Event Damage % damage to the home 10% 25% 40% Cumulative Damage Ratio over past 10 years % of total home value 40% 60% 80% First Floor Flood Depth feet above first floor < 2 feet 2' to 4' > 4 feet Repetitive Flood Damage / Improvements Building Permits or other documentation 1 or 2 3 to 5 > 5 such as FEMA damage records Impact from Sewage Sewage in home Basement First Floor Personal Health and Safety Case by case evaluation Medium High Total Points 100 Note: Health and Safety: Medium includes individual with history of health concerns and mold or other health concern present. High includes written documentation from medial professional to not inhabit the home. Note: The Priority Criteria and Measures were recommended by the Flood Mitigation Workgroup on June 4, 2015 and may be adjusted to improve the quantification, accuracy, reliability, and effectiveness of the data available from applicants, agencies and other appropriate sources. 5