Severe Repetitive Loss (SRL) Pilot Program

Model Pre-Award Consultation Agreement

[Information required to complete the Model Pre-Award Consultation agreement can be found in Section V of the SRL Pilot Program Guidance]

Applicant [State/Territory/Tribe]:  ____________________________________________

Subapplicant [State-level agency/local government (i.e. City/County)/Indian tribal government]: _____________________________________________

Property Owner(s):_____________________________________________

Property Address:  _____________________________________________

NFIP Policy Number:  _________________     Repetitive Loss Number:_________________

This Model Pre-Award Consultation Agreement documents the consultation process and interaction between you and the local government.  The consultation process may involve an initial meeting and follow-up meetings as necessary to complete the pre-award consultation process as outlined in Section V of the Severe Repetitive Loss Pilot Program Guidance.  Meeting dates shall be documented and initialed by you and the [State and/or City/County] on the last page of this form.

The SRL property owner(s) acknowledge(s) being informed and notified by the [State and/or City /County] that:

  1.   The Applicant or Sub-applicant will not use its power of eminent domain to acquire the property during or after negotiations, and the property is not part of an intended, planned, or designated project area for which the land is to be acquired by a certain date, and/or where there is an intention to use the property for any public or private future use inconsistent with the open space deed restrictions and FEMA acquisition requirements. This agreement may be used instead of the Notice of Voluntary Interest Statement.
  2. Your property appears on the FEMA SRL Property List, and [State and/or City/County] may include your property in an application for mitigation assistance from FEMA under the SRL program.
  3. The [State and/or City/County] has provided you with specific National Flood Insurance Program (NFIP) claims information, which may include losses that occurred prior to your ownership of the property in order to explain their inclusion on the SRL list.  This information is available from the FEMA Regional Office or State NFIP coordinator. Contact information is attached for your convenience.
  4. For acquisition projects, you must maintain an NFIP insurance policy on your SRL structure from the time of application until property transfer is complete, in order to qualify for assistance.  For all mitigation activities except for the sale of your property, an NFIP policy must be maintained for the life of the property.
  5. For an acquisition, the [State and/or City/County] will obtain a copy of the original deed and any deeds of trust for the property from you.  This information will be verified through a title search, which will identify names and addresses of other persons, financial institutions, and/or other public or private entities with a recorded interest on the property.
  6. FEMA funds cannot duplicate amounts available to you from other sources.  You need to identify any other sources of funds that may reasonably be available to you for the mitigation activity, to compensate in whole or part for the value of the property, or to address any property damage, such as applicable insurance policies, other assistance, legal claims or third party legal obligations.  If such amounts become available to you even after the mitigation offer is made (e.g. after the property is acquired, elevated, reconstructed, and flood proofed) the amounts you received from FEMA are still considered a duplication of benefits, and you must inform the [State and/or City/County] and repay such duplicated amounts.  If a duplication in benefits has been identified, please list the source and amount of duplication here:

    ________________________________________________________________________

    ________________________________________________________________________

  7. The [State and/or City/County] official has discussed the project types available to you and your preferences were:

    ________________________________________________________________________

    ________________________________________________________________________

  8. The [State and/or City/County] will decide whether to include your property in an application, and will decide the project activity type that will be offered to you should grant funds be awarded for this project.  The [State and/or City/County] decision is based on a combination of factors including your preferences, cost effectiveness, technical feasibility, and the State and local government legal, land-use, and contractual requirements.
  9. The [State and/or City/County] will make a formal offer to you only if SRL program funds are awarded for this project.
  10. For property acquisition, in accordance with 44 CFR 80.7(c) and program guidance, the [State and/or City/County] will identify the highest estimated purchase offer amount available to the property owner.  This estimate includes estimated property value; any anticipated additions (e.g. supplemental housing payments) and deductions (duplicated benefits or costs borne by you); and the methodology used to determine the property value (i.e. current market value, pre-event market value, outstanding loans, original purchase price).

    Estimated Property Value: __________________________________________

    Methodology used to determine property value (current market value, pre-event market value, outstanding loans, or original purchase price): _____________________________

    Estimated Additions: ______________________________________________

    Estimated Deductions: _____________________________________________

    Estimated Total Purchase offer amount: _________________________________

    Estimated Federal / non-Federal Cost Share (75 / 25 or 90 / 10): _____________

    Estimated cost borne by property owner: _______________________________

    Any second mortgages or home equity loans taken out following the initial consultation meeting will not be included in the purchase offer. 

    In order to receive pre-event market value, you will be required to certify that you are either a National of the United States or qualified alien before the mitigation offer is made.

  11. [State and/or City/County] may identify estimated costs for various mitigation activities:

    Activity type: ___________________________________________________

    Estimated total activity cost: ________________________________________

    Estimated Additions: ______________________________________________

    Estimated Deductions: _____________________________________________

    Estimated Total Mitigation Offer (Including estimated additions and deductions):

    __________________________________________________________________

    Estimated Federal / non-Federal Cost Share (75 / 25 or 90 / 10): _____________

    Estimated cost borne by property owner: _______________________________

  12. The final mitigation offer may be adjusted to meet all program regulatory and guidance requirements and to ensure no duplication of benefits (see number six above), as determined by the [State and/or City/County], once grant funds for the SRL project application are approved by FEMA.
  13. The Sub-applicant will advise the property owner of the estimated timeframe for implementing various project types and whether the property must be vacated during project implementation.
  14. For property acquisition or relocation projects:
    • All existing buildings must be removed by relocation or demolition within 90 days of settlement; and
    • The acquired land will be deed restricted in perpetuity and managed by the [State and/or City/County] or an acceptable third party organization.
  15. If you decline the final offer of mitigation made under the SRL program, your property will be subject to an increase in the flood insurance premium rate.
  16. You may appeal insurance premium rate increase that results from declining an SRL program mitigation offer based on criteria listed at 44 CFR Part 79.7 (d) and in program guidance.
  17. The increased insurance premium rate resulting from declining a mitigation offer will continue even if the SRL program ends.
  18. Any mitigation offer made under the SRL program remains open and available to you as long as the SRL program exists and funds are available.
  19. All information related to you and/or your property that is collected during this consultation process shall be protected consistent with the Federal Privacy Act and similar State and local laws and ordinances.
  20. Any SRL mitigation grant funds received directly or indirectly are generally not taxable for your Federal income tax purposes.  However, you may want to consult with a tax advisor with respect to any potential State, local or other tax implications.

Signature of SRL Property Owner(s) or Authorized Representative(s)   Date

_____________________________________________________________________

Signature of SRL Property Owner(s) or Authorized Representative(s)   Date

_____________________________________________________________________

Signature of Applicant or Subapplicant’s Authorized Representative(s)  Date

_____________________________________________________________________

The local government and property owner will initial and date below to document each meeting related to the Consultation.

          Homeowner(s)                             Local Government Official(s)            Date

_____________________________________________________________________

          Homeowner(s)                             Local Government Official(s)            Date

_____________________________________________________________________


          Homeowner(s)                             Local Government Official(s)            Date

_____________________________________________________________________

Last Modified: Monday, 14-Jan-2008 10:13:48 EST