Changes to the National Flood
Insurance Program – What to
Expect
Impact of changes to the NFIP under the BiggertWaters Flood Insurance and Reform Act 0f 2012
(BW-12) and the Homeowners Flood Insurance
Affordability Act of 2014 (HFIAA)
Why the Changes to the NFIP
Insurance Program?

1968: Congress created the NFIP to make affordable flood insurance
generally available.
To participate, communities adopt and enforce floodplain management
measures for all new development.
• For structures built before FEMA mapped the Special Flood Hazard Area (called
Pre-FIRM properties), the NFIP made flood insurance available at subsidized
rates .
•

45 years later: The costs and consequences of flooding are increasing and
artificially low rates and discounts no longer are sustainable.

In 2012, Congress passed legislation (BW-12) to make the program more
sustainable and financially sound over the long term.

In 2014, Congress passed legislation (HFIAA) to reform some sections of
BW-12
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Changes to NFIP Insurance
BW-12 and HFIAA
• Establish a Reserve Fund (5% for most policies)
• Annual premium adjustment cap raised from 10% to 20% (18% HFIAA)
Implementation Pending (HFIAA)
• Surcharge on all policies to offset the subsidized policies and achieve the
financial sustainability goals of BW-12.
•
$25 annually on Primary Residence
•
$250 annually on All other policies, including full risk rated policies
 This fee will continue until all Pre-FIRM subsidies are eliminated
 Surcharges are not considered part of the premium and are not subject to the
premium increase caps
All policyholders will receive a premium increase
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NFIP Rate Changes
Pre-FIRM Primary Residence (definition changing June 2014*)
rates will increase up to 18%
Pre-FIRM Non-Primary Residence January 2013
rates will increase 25 % annually until they reflect the full-risk rate.
Pre-FIRM Business & Repetitive Loss/Severe Repetitive Loss properties
October 2013
rates will increase 25 % annually until they reflect the full-risk rate.
All other rating groups will increase up to 18% annually
Annual rate increases include the 5% Reserve Fund fee
*Primary Residence. For rating purposes only, FEMA defines a primary residence as a building that will be
lived in by an insured or an insured’s spouse for more than 50% of the 365 days following the policy
effective date. (June 2014)
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Homeowner Flood Insurance
Affordability Act 2014 (HFIAA)
 Implementation Pending
Effective on or after May 1, 2014 Pre-FIRM rates may be used. New policies will be
issued with Pre-FIRM rates. Renewals will be re-rated with Pre-FIRM rates (October 2013
Flood Insurance Manual).
Applicable refunds will be implemented at a later date.
• Refunds
 Guidance and rate tables being developed.
 Refunds only to policyholders who received rate increases under BW-12 that are
revoked by HFIAA.
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Adoption of a new flood map?
Implementation Pending
New SFHA / Zone Change / Increased BFE
•
BW-12 Removed Grandfathering*/ HFIAA restored grandfathering
•
BW-12 Elimination of PRP Eligibility Extension / HFIAA - Eligible for PRP first
year
•
18% cap on annual increase after a map update
*Grandfathering-- charging of insurance premiums for a structure based on a prior FIRM
•
Continuous Coverage
•
Built in Compliance
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Affordability Study / Framework
 The affordability study required by BW-12 is underway and being
conducted by the National Academies of Sciences as specified in BW-12.
 HFIAA requires FEMA to prepare a draft affordability framework, which is
due to Congress 18 months after completion of the affordability study.
 The affordability framework will include proposals and proposed
regulations for ensuing flood insurance affordability among low-income
populations.
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Mapping
Enhanced Communication and Outreach
 FEMA will continue Mapping activities
 BW-12 requires FEMA to enhance coordination with communities before and
during mapping activities and requires FEMA to report certain information to
members of Congress for each State and congressional district affected by
preliminary maps.
 Sec. 30 of HFIAA requires additional layers of enhanced notification and
outreach to congress and other stakeholders.
Technical Mapping Advisory Council
 Technical Mapping Advisory Council (TMAC) to review the new national flood
mapping program activities authorized under the 2012 and 2014 flood
insurance reform laws.
• FEMA will seek the TMAC’s recommendations on meeting new requirements for the
new mapping program including the identification of residual risk areas, coastal
flooding information, land subsidence, erosion, expected changes in flood hazards with
time, and others.
• The law requires the Administrator to certify in writing to Congress that FEMA is utilizing
“technically credible” data and mapping approaches.
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Mapping
Flood Insurance Rate Map Appeals
 The Act lifts the $250,000 limit on the amount FEMA can spend to
implement a program to reimburse property owners and communities for
successful map appeals based on a scientific or technical error.
 The Act applies to statutory appellants who successfully appeal the
Agency’s proposed flood elevations and special flood hazard areas.
 Rulemaking is required to implement this provision
 The new law does not apply to Letter of Map Amendment (LOMA) and
Letter of Map Revision (LOMR) requests, or any expenses associated
with them.
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Mapping
Flood Protection Systems
 Authorizes FEMA to account for state and local funds used in the construction or
restoration of a flood protection project when determining whether the project
meets the statutory requirements to be eligible for discounted premiums. (Sec.
19)
 Permits FEMA to include the value of existing protection features in measuring
adequate progress for the restoration of levees. (Sec. 19)
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Mapping
Fees
• Law exempts mapping fees for flood
map changes due to habitat
restoration projects, dam removal,
culvert re-design or installation, or the
installation of fish passages. (Sec. 22)
Flood Control Features
• Law requires FEMA to consider the
effects of non-structural flood control
features, such as dunes, and beach
and wetland restoration when it maps
the special flood hazard area. (Sec.
27)
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Moving Forward
FEMA Region 10 Mitigation Program areas will advise our
stakeholders as HQ guidance and implementation of BW-12
and HFIAA are released.
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LEVEES: OVERVIEW ON
CHANGES TO POLICIES
Objectives:
•
FEMA’s roles
•
Ongoing levee projects by state
•
Updates pertaining to Biggert-Waters (2012) and HFIAA
(2014)
•
Non-accredited levee analysis and mapping approach and
guidance (2011-Present)
•
Region X Perspective
David Ratté, P.E.
FEMA Region X Mitigation Division
Risk Analysis Branch
FEMA’s Role - Levees
Map levee-related flood risk and
“accredits” levees for mapping purposes
only.
Accredit levees based on the certification
documentation provided by the
community or another interested party.
FEMA does not own, operate, maintain,
inspect, or certify levees or flood control
systems.
Produce and/or distribute outreach and
communication materials.
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ALASKA
2-3 Studies
15
IDAHO
8 Studies
16
OREGON
11 Studies
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WASHINGTON
14 Studies
18
Biggert-Waters and Homeowner
Flood Insurance Affordability Acts
-
Residual and graduated risks for areas associated with potential
levee and dam failures
Levee restoration/improvement projects
- Federal funding no longer required
- Changes “adequate progress” requirements
19
Shaded Zone X or Zone B
- Leveed Area (also sometimes referenced as the protected area)
NLD and FIRM
images…
20
How to acquire a restoration
designation?
 Requirements per CFR
• Community must apply for use of this zone designation
• Prior to new legislation, AR designation required that the
levee was constructed with Federal funds (regulations not
updated at this time) shown as providing protection, and
“de-certified”
• Requesting community must
document adequate progress
• New legislation extends
application of this process to
coastal levees
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Zone AR and A99
 AR Flood Zone – used to map the landward side of a levee undergoing
restoration – usually done before a levee qualifies for A99
 A99 Flood Zone – used to map the landward side of a levee that is
making “adequate progress” towards being restored.
 Enables a community to avoid de-accreditation of a previously certified
levee while it is being restored.
 Usually has lower insurance rates and less rigorous floodplain
management requirements
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More Information: Fact Sheets and
Frequently Asked Questions
 Zone AR (Flood Protection Restoration)
• Requirements Summary for State and Local Officials
• Frequently Asked Questions Regarding the Zone AR
Flood Insurance Risk Zone Designation
 Zone A99 (Adequate Progress on Flood
Protection Systems)
• Zone A99 Requirements Summary for State and Local
Officials
• Frequently Asked Questions Regarding the Zone A99
Designation
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Analysis and Mapping of NonAccredited Levees
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FEMA Levee Status: Accredited vs.
Non-Accredited
 Accreditation – FEMA’s process to review and
accept certification data and documentation and
to update the Flood Insurance Study
 To be accredited by FEMA, a levee must meet ALL
Section 65.10 requirements, including
• General Requirements—65.10(a)
• Design Criteria—65.10(b)
• Operation Plans and Criteria—65.10(c)
• Maintenance Plans and Criteria—65.10(d)
• Certification Requirements—65.10(e)
 Non-accredited levee – any levee that does not
meet certification requirements or the definition of
a levee.
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Non-Levee Embankment
•
any manmade topographic feature that does not meet the
definition of a levee, e.g. highway embankment (FHWA
Policy) or railroad grade
Silvies Levee (http://www.flickr.com/photos/oregondot/5600666113/in/set72157626331012873)
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Old Method - Mapping Flood Hazards
 Complete certification of
 Certification submittal not
system submitted to
FEMA
 Mapped as contained
within levee system
boundaries
received or incomplete
 Traditionally mapped as if
the levee did not provide a
reduction in flood risk
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What’s New?
 Interactive stakeholder engagement throughout the
analysis and mapping process:
• FEMA will engage community officials and decision
makers in a collaborative discussion
 A suite of analysis and mapping procedures of the
hazard associated with levees will be reviewed with the
interested parties
• Intention is to recognize of the uncertainty associated with
hazard identification behind levees.
• New Development – Allows communities to split a levee
system into distinct reaches that are analyzed based on
the attributes of the specific reach.
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Accredited System
 Criteria: Entire Levee System or Flood Control Structure meets (or
exceeds) 44 CFR 65.10 Criteria
 Mapping Approach: Mapping as Fully Accredited;
Valley Floodplain Analysis to Map Shaded
Levee Protection Note
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Natural
Zone X and
Risk Analysis
Division
—
Risk MAP
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Not a Safety Standard
 The 1% flood event (100-year) is NOT a Safety
Standard
 Intended for flood insurance
 Unintentionally encourages communities to seek
this level
 Alternative tools to
discuss risk and
mitigation – risk
assessments.
 Selection of projects
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Questions or Comments?
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