97.022 - Flood Insurance - CFDA: Programs

Program Number/Title (010):

Federal Agency (030):

Authorization (040):

Objectives (050):

Types of Assistance (060):

Uses and Use Restrictions (070):

The maximum limits of flood insurance coverage for a building and/or personal property, eligible building types, and more detailed additional flood insurance information is contained in the Flood Insurance Manual available online at http://www.fema.gov/business/nfip/manual.shtm. In a Regular Program Community the residential building limit is $250,000 and non-residential building limit is $500,000. The residential contents limit is $100,000 and the non-residential contents limit is $500,000. Lower limits apply to a limited number of Emergency Program buildings and buildings in Alaska, Guam, Hawaii and U.S, Virgin Islands and are listed in the Flood Insurance Manual.
The Flood Disaster Protection Act of 1973, as amended by the Flood Insurance Reform Act of 1994, requires flood insurance purchased as a condition of any form of Federal or federally-related financial assistance, including Federal grants, disaster assistance, SBA low-interest disaster assistance loans, and mortgage loans from federally regulated lending institutions and FHA, Farm Credit Administration, VA or guaranteed mortgages secured by buildings in high-risk flood zones, which are called the Special Flood Hazard Areas (SFHAs). Communities having one or more identified SFHAs must enter into the NFIP within 1 year of the official identification of the SFHAs or be denied Federal financial assistance for acquisition or construction purposes within those areas. Federally regulated conventional sources (i.e., banks, savings and loan associations, or similar lending institutions) are permitted to make conventional loans secured by improved real estate or Manufactured Housing located or to be located in SFHAs of a nonparticipating community which has been formally identified as flood-prone for more than 1 year, but Federal disaster assistance for acquisition or construction purposes will not be available in the event of flood or flood-related property damage. The conventional lender is statutorily required to notify the borrower, before making a loan in such an area, that Federal flood insurance and disaster assistance will not be available to the property. The Coastal Barrier Improvement Act of 1990 amended the Coastal Barrier Resources Act of 1982 by greatly enlarging the acreage included in the designated coastal barrier resources system unit. The 1990 Act also added "otherwise protected areas." "Otherwise protected areas" are defined as an undeveloped coastal barrier within the boundaries of an area established under Federal, State, or local law, or held by a qualified organization, primarily for wildlife refuge, sanctuary, recreational or natural resource conservation purposes. The 1982 Act prohibits the sale of new flood insurance on or after October 1, 1983 for new construction or substantial improvements of structures located on any coastal barrier with the Coastal Barrier Resources System designated by this Act. The1990 Act prohibits the sale of new flood insurance on or after November 16, 1990 for new construction or substantial improvements of structures located on any new coastal barrier within the Coastal Barrier Resources System designated or modified by this Act. It also prohibits the sale of new flood insurance on or after November 16, 1991 for new construction or substantial improvements of structures located in an otherwise protected area that are not used in a manner consistent with the purpose of the otherwise protected area. Subsequent pieces of legislation have added or deleted areas. Also, the Secretary of the Interior is authorized to make technical revisions and modifications to the boundaries of such units as may be necessary.

Eligibility Requirements (080)

Applicant Eligibility (081):

Beneficiary Eligibility (082):

Credentials/Documentation (083):

Application and Award Process (090)

Preapplication Coordination (091):

Application Procedures (092):

This program is excluded from coverage under 2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Community officials must submit an NFIP eligibility application form, which is available from the FEMA, together with: copies of adopted floodplain management measures meeting the minimum standards of 44 CFR Section 60.3(a), 60.3(b), 60.3(c), 60.3(d), and/or 60.3(e), as appropriate for the type of flood hazards identified; a list of any incorporated communities within the applicant's boundaries; and estimates of population and, by kind, of buildings situated in the known flood-prone areas of the community. Such Applications should be submitted to the Mitigation Directorate, FEMA, Washington, DC 20472.

Award Procedure (093):

Deadlines (094):

Range of Approval/Disapproval Time (095):

For complete applications, a maximum of 10 working days is allowed for review and notification.
Communities with one or more identified special flood hazard areas must enter the program within 1 year after the identification of those areas or else prohibitions against Federally related financial assistance for acquisition or construction purposes in identified special flood hazard areas take force. Once the community does qualify, after the prescribed date, these prohibitions are removed. Adequate floodplain management measures must be in effect within 6 months of the date that the special flood hazard area is identified and within 6 months of the date flood water surface elevations are provided.

Appeals (096):

Communities are allowed to appeal flood-prone identification and are also given an opportunity to appeal proposed flood elevation determinations for new construction and substantial improvement of existing structures in the special flood hazard areas. Notice of the proposed elevations is published in the Federal Register and is sent directly to the local governments. Following notification to the local government, the notice of proposed flood elevation determinations is published twice during a 10-day period in a prominent newspaper. The local community and its individual residents then have 90 days following the second newspaper notice to submit any scientific or technical data that tend to negate or contradict FEMA's findings. If a conflict in data exists and cannot be resolved at the community level, the community consolidates all individual appeals for review by FEMA. FEMA shall resolve the appeals by consultation with officials of the local government, or by submission of conflicting data to an independent scientific body, or by administrative hearings.

Renewals (097):

Assistance Consideration (100)

Formula and Matching Requirements (101):

Length and Time Phasing of Assistance (102):

Post Assistance Requirements (110)

Reports (111):

Audits (112):

Records (113):

Financial Information (120)

Account Identification (121):

Obligations (122):

(Insurance) FY 15 $160,917,790; FY 16 est $181,198,000; and FY 17 est $181,799,000 - � This does not include the Flood Insurance Mandatory funds, only Discretionary.
� The FY15 Projected number is the document is the Discretionary total (only) per the FY15 Appropriation. Therefore, we used:
� The Discretionary obligated totals for all the directorates (not just FID) for the FY15 Actuals;
� The Appropriated Discretionary number for the FY16 Estimate; and
� The proposed Appropriated Discretionary number for the FY17 Estimate.

Range and Average of Financial Assistance (123):

Program Accomplishments (130):

Fiscal Year 2015: � Revised premium rate tables to comply with Section 5 of the Homeowner Flood Insurance Affordability Act of 2014 (HFIAA) Pub. Law No. 113-89 (March 21, 2014), which prohibits FEMA from increasing premiums more than 15 percent a year within a single risk class and not more than 18 percent for an individual policy.
� Restored Pre-Flood Insurance Rate Map (FIRM) subsidized rates for:
- Pre-FIRM properties not insured when the Biggert Waters Flood Insurance Reform Act of 2012 (Biggert-Waters) was enacted;
- Pre-FIRM properties sold after Biggert-Waters was enacted; and
- Policies for Pre-FIRM properties that were rated full-risk under Biggert-Waters due to a lapse in coverage, but only for policies where the lapse was due to a property owner no longer being required to purchase flood insurance
� Refunded premiums collected in excess of the Pre-FIRM subsidized rate for properties covered by Section 3.
� Implemented the first annual rate change that set rates using rate increase limitations set by HFIAA, for individual premiums and rate classes.
� Repealed Section 207 of Biggert-Waters and restored grandfathering.
� Developed a new procedure for Properties Newly Mapped into the Special Flood Hazard Area and existing Preferred Risk Policy Eligibility Extension (PRP EE) policies. The premiums are the same as the Preferred Risk Policy for the first year (calculated before fees and assessments) to comply with provisions of HFIAA. After the first year, the policy transitions to a full-risk rate in accordance with annual premium caps discussed above (assuming no change in coverage or Community Rating System status). New premium tables for Properties Newly Mapped into the SFHA included a 15-percent Reserve Fund Assessment.
� Implemented annual HFIAA surcharges of $25 for primary residence policies and $250 for all other policies. Developed guidance for validation of primary residence eligibility. Revised the Application forms to reflect the newly required charges.
� Increased the optional deductible to $10,000 for residential properties to help make some policies more affordable. Established that the same deductible option must apply to both building and contents. Modified existing deductible factor tables to accommodate the $10,000 deductible. Required that insurers inform applicants of the availability of this coverage option either on the Application Form or on a separate form, segregated from all unrelated information and other required disclosures. A statement must be included to explain the effect of a loss-deductible and that, in the event of an insured loss, the insured is responsible out-of-pocket for losses to the extent of the deductible selected.
� Substantially Damaged � Substantially Improved Structures. Policies for Pre-FIRM properties with substantially damaged/substantially improved structures are subject to annual 25-percent premium rate increases until they reach full-risk premiums. This represented a change from the previous policy of reclassifying a substantially damaged/substantially improved building as Post-FIRM and immediately requiring full-risk rates. If the full-risk premium is lower than the subsidized premium, the full-risk rating should be used. Provided new rate tables for Substantially Damaged/Substantially Improved Pre-FIRM buildings.
� Established new minimum deductibles for PRP and MPPP policies to comply with other policy minimum deductibles. New minimum deductibles for PRP and MPPP policies are $1,000 for both building and contents if the building coverage is less than or equal to $100,000 and $1,250 if building coverage is over $100,000, regardless of the insured building�s construction date compared to the initial FIRM date. PRP and MPPP contents-only policies have a $1,000 minimum deductible.
� Increased the Reserve Fund Assessment to 15 percent for all policies except PRPs, which was 10 percent.
� Stood up Sandy Claims Task Force to provide exception process for Sandy affected claimants. Fiscal Year 2016: � Effective November 1, 2015, FEMA revised the Non-Residential building occupancy category to identify �Business� properties in the existing rate structure. Section 100205 of BW-12 required FEMA to phase out Pre-FIRM subsidized rates for business properties. The premium increases will be 25 percent per year. The first 25-percent annual premium increases for policies on Pre-FIRM subsidized business properties will be applied with the next set of Program changes in 2016.
� HFIAA Sections 5 and 29 � Changes to the Flood Insurance Underwriting Forms.
o Revised the Application, Endorsement, and PRP Application forms to capture information required for implementation of certain provisions of BW-12 and HFIAA, including introduction of a �Lender Indicator.�
o Added questions to the Application forms in anticipation of future implementation of the HFIAA Section 3 provision pertaining to lapsed and reinstated coverage. In addition to requesting the date of the rated map and the current map for the property, the new questions will capture the data:
Has the applicant had prior NFIP coverage for the same property indicated on this Application?
Was the prior NFIP policy required under the mandatory purchase provision of the law at the time of coverage termination?
At the time of the policy lapse, did the applicant have an insurable interest in the property for which flood insurance coverage is sought?
Was the lapse the result of a community suspension?
Will this policy be effective within 180 days of the community reinstatement after the suspension referred to in (4) above?
� HFIAA Section 8 � Required insurers to report a Primary Residence indicated for all of their Mortgage Portfolio Protection Program policies to ensure correct application of the HFIAA surcharge. When the residency status is unknown, or when primary residence is asserted by the insured, but not properly documented, the insurer must treat the MPPP as a non-primary residence. The status may be corrected with appropriate documentation submitted by the insured. Fiscal Year 2017: � Revise and implement Appeals process to be more customer friendly
� Simplify Underwriting and Claims Manuals
� Improve Write-your-own (WYO) oversight processes and standards
� Improve map change notifications to citizens
� Increase and improve adjuster cadre
� Secure new Direct Servicing Agent contract and Customer Communications contract.

Regulations, Guidelines, and Literature (140):

Regulation 44 CFR 59 et seq. Publication, "Answers to Questions About the National Flood Insurance Program," "Mandatory Purchase of Flood Insurance Guidelines," "Elevated Residential Structures," "Guide To Flood Insurance Rate Maps," "Flood Insurance Manual" (agents manual), "National Flood Insurance Program. Application Forms," "Manufactured Home Installation in Flood Hazard Areas," "Coastal Construction Manual," Alluvial Fans: Hazards and Management," "Floodplain Management in the United States: An Assessment Report," "Design Guidelines for Flood Damage Reduction" and "Repairing Your Flooded Home," "Technical Bulletin Series (FIA-TB)" "Answers to Questions About Substantially Damaged Buildings," "Reducing Losses in High Risk Flood Hazard Areas," "Design Manual for Retrofitting Flood- Prone Residential Structures" and "Flood Proofing Non-Residential Structures."

Information Contacts (150)

Regional or Local Office (151) :

Headquarters Office (152):

Website Address (153):

Related Programs (160):

Examples of Funded Projects (170):

Criteria for Selecting Proposals (180):

Accessibility Information

Catalog of Federal Domestic Assistance

Flood Insurance

Program Information

Contact Information

General Information

History