FEMA Grant to Assist Frequently Flooded Homeowners 

Release Date: February 15, 2008
Release Number: R3-08-025

PHILADELPHIA, Pa. -- In an effort to help property owners who are at high risk for repeated flooding, the Federal Emergency Management Agency (FEMA) has developed a pilot grant program. Working with its state and local partners, FEMA is planning to reach out to homeowners throughout the mid-Atlantic region to inform them about FEMA's Severe Repetitive Loss (SRL) program.  The SRL program may provide homeowners with financial assistance to mitigate their property from future flooding.

"Floods are the most common and costly natural disaster," said Jonathan Sarubbi, Regional Administrator of FEMA Region III.  "Through the SRL program, state and local governments can work with property owners to fund mitigation projects that will reduce the devastating impacts of these disasters."

Properties that have experienced four flood claims, each valued at more than $5,000, or two claims that exceed the total value of the building, are eligible for SRL grant funds. At least two of the claims must have occurred within any 10-year period, at least 10 days apart.

Administered at the state level, the SRL program funds mitigation projects that provide the greatest savings to the National Flood Insurance Fund (NFIF) in the shortest period of time.  Typically, the federal government will fund 75 percent of an approved SRL project, but the federal share may rise to 90 percent if the state has a hazard mitigation plan with a strategy to address repetitive loss properties. State and local communities pay the remaining share. Mitigation activities eligible for SRL funding include:

With 25 to 30 percent of all flood insurance claims coming from repetitive loss properties, FEMA is proactively working to reduce future flood losses. SRL properties, a subset of repetitive loss properties, have been shown to be at the greatest risk for flood damage. Mitigating these properties can prevent or significantly reduce future flood losses. It may also reduce the total number of flood insurance claims in high-risk areas.

Eligible property owners will work with their community officials to determine the most desirable and cost- effective mitigation measure, though the local government makes the final determination. Municipalities and counties send SRL proposals to the state.  The state reviews the submissions and sends them to FEMA.  FEMA ensures they address continuing threats, are cost effective, and conform to federal law. Participation in the SRL program is voluntary, although homeowners who decline offers of mitigation assistance may be subject to an increase in their flood insurance premium rates to the actuarial rates that reflect the true risks associated with the property.

Through the Bunning-Bereuter-Blumenauer Flood Insurance Reform Act of 2004, Congress directed FEMA to develop a program to reduce flood losses for severe repetitive loss structures insured under the National Flood Insurance Program.  The total amount of funding available nationwide is up to $160 million.

FEMA coordinates the federal government's role in preparing for, preventing, mitigating the effects of, responding to, and recovering from all domestic disasters, whether natural or man-made, including acts of terror.

Last Modified: Wednesday, 27-Feb-2008 08:06:12