Levee Decertification & CRS: How a Catch-22 Can Catch You!

1. Levee Decertification & CRS:How a Catch-22 Can Catch You! ASFPM 2011 National Conference Louisville, KY Wednesday, May 17, 2011

2. Today’s Speaker • Rob Flaner, CFM • Tetra Tech Hazard Mitigation Program Manager • Over 20 years experience in FEMA hazard mitigation programs. • Former CRS specialist for FEMA Regions VIII, IX and X

3. What are we going to talk about? • The mandatory flood Insurance purchase requirement • Insurance impacts of levee decertification • CRS activity 620 – Levee Safety • The “Catch-22” • Possible alternatives

4. The Mandatory Flood Insurance Purchase Requirement Federally regulated lending institutions cannot make, increase, extend, or renew any loan secured by improved real property located in an SFHA in a participating community unless the secured building and any personal property securing the loan were covered for the life of the loan by a flood insurance policy. • Flood Disaster Protection Act of 1973 • Was strengthened by the NFIP Reform Act of 1994 by imposing new regulations on lenders and tightened requirements for receipt of federal disaster assistance

5. Flood Insurance Impacts of Levee “Decertification” • FEMA does not certify levees; it accredits them. • FEMA accredits levees based on certifications from other sources (USACE, licensed PEs, etc.). • Certification is based upon criteria specified in 44CFR Section 65.10. • When a levee is accredited as a 100-year levee, the flood risk behind the levee is not reflected on the Flood Insurance Rate Map (FIRM). • Therefore no mandatory insurance purchase requirement behind the levee.

6. Flood Insurance Impacts of Levee “Decertification” • When a levee cannot be certified by appropriate methods, FEMA will dis-accredit the levee. • Currently, the mapping will reflect the full flood risk as if the levee was not there. • The mandatory insurance purchase requirement will now kick in for all structures behind the levee. • Communities can see their number of properties subject to this provision double or even triple. • Flood insurance policy counts will follow suit. • This can have a huge financial impact on communities.

7. The Community Rating System (CRS) • Communities impacted by levee decertification will often turn to the CRS program to soften the insurance impacts of levee decertification. • The CRS provides discounts on flood insurance premiums. • Communities implement floodplain management activities that exceed the minimum requirements of the NFIP. • Credit for levee safety is the 5thhighest scoring activity (900 points)

8. CRS Point Awards Community Rating System • For every CRS classification there is a corresponding rate reduction in flood. insurance premiums. • 5% per classification. • Some rate reductions are capped due to the flood zone.

9. CRS Activity 620 – Levee Safety • Credit is provided for maintaining levees and a levee emergency response plan for areas protected by less than base flood levees. • Levees must provide at least 25-year protection • Credit is impact adjusted • Credit is only provided for levees and floodwalls built before January 1, 1991

10. CRS Activity 620 – Levee Safety • Community must have a levee emergency response plan that specifies actions to be taken at various flood stages. • Community must notify properties protected by the levee of the residual flood risk. • PAL levees, or A-99, or AR levees are not eligible for credit under Activity 620.

11. The Catch-22 • Out of over 1,100 communities participating in the CRS, fewer than 5 receive credit for Activity 620. Why? • To receive credit, the community must provide certification by a licensed professional engineer that the levee meets all the NFIP levee recognition requirements (44CFR 65.10), except for height. • If this type of certification could be provided, you would most likely not be dealing with levee decertification issues.

12. Possible Alternative to Certification • A community can use the USACE inspection report under the PL8499 program as an alternative to certification. • The levee must have received an “acceptable” rating in the inspection report. • The USACE can provide a letter that states a levee has been maintained in accordance with the officially adopted levee maintenance plan. • But what about those levees not under the USACE jurisdiction…..?? • There is a reason why there are fewer than 5 getting credit

13. Questions