NATIONAL FLOOD INSURANCE PROGRAM Carol Tyau-Beam, P.E., CFM State NFIP Coordinator Department of Land and Natural Resources, Engineering Division Honolulu Board of Realtors – Brokers Forum November 23, 2009

Regulatory Implication An owner’s vision and/or expectation for the property may not be realized. Insurance Implication Flood Insurance will increase monthly expenses for a property owner. WHY IS IT IMPORTANT TO DISCLOSE FLOOD RISK?

H OW THE NFIP W ORKS … FEMA Establish Flood Risk Maps Authorize Sale of Flood Insurance Local Community Establish Floodplain Management Program Regulate Development in SFHAs Lenders Require Flood Insurance for any Federally-Backed Mortgage Property Owner Comply with local floodplain management regulations Purchase Flood Insurance National Flood Insurance Program The NFIP was established by Congress in 1968 through the National Flood Insurance Act.

F LOOD M APS – F LOOD Z ONES Types of Flood Zones High Risk A Zones (A, AH, AO, AE) V Zones (V, VE) Low- Moderate Risk B, C, X Zones Mandatory Flood Insurance Apply Mandatory Flood Insurance Apply Building Standards Apply Building Standards Apply D zones = Undetermined

BUILDING AND DEVELOPMENT STANDARDS Examples of Floodplain Management Regulations:  Elevation requirements (A and V zones)  Free of Obstruction below lowest floor (V zones)  Use restrictions  Require additional studies (AEF zones)  Substantial Improvements (Improvement Cost exceed 50% of Market Value of Structure) => elevate existing pre-FIRM structure Floodplain management regulations are adopted to regulate construction in high flood risk areas.

LOCAL FLOODPLAIN MANAGEMENTREGULATIONS Copies of each County’s Floodplain Management Ordinances can be found at:

LOCAL FLOODPLAIN ADMINISTRATORS

HOW TO BEST MARKET A PROPERTY Flood Insurance Grandfathering Provisions Letter of Map Changes Substantial Improvements Building Standards

THE IMPORTANCE OF UNDERSTANDING THE NFIP

L ISTING FOR V ACANT L AND

D O YOUR HOMEWORK …. Do your homework….. Verify the flood zone designation This property is NOT in an AE zone. It is in a VE zone. What is the significance of this error in flood zone designation? The proposed structure will be subject to: Higher flood insurance premium; and Stricter building standard requirements

F LOOD I NSURANCE P REMIUMS Assumptions: Post-FIRM (built after 9/3/1980 for City and County of Honolulu) Construction based on minimum regulations BFE) Single Story Residential construction Standard deductible ($1000) Range of VE premiums based on replacement cost (RC). Estimated Annual Flood Insurance Premium (based on October 1, 2009 rate schedule) Flood ZoneBuilding Only ($250K) Building & Contents ($250K / $100K) AE$1,106$1,560 VE (RC < $334K) $5,149$6,809 VE ($334K < RC < $500K) $6,824$8,534 VE (RC > $500K) $9,624$11,284

Do your homework….. Understand what your clients plans are for this property. - Are the prospective buyers interested in the building plans being offered with this listing? Structures built on this site must be elevated to 21’ msl and area below kept free of obstruction. If the purchase price includes the building plans for this property, be sure that the plan is suitable for this site. D O YOUR HOMEWORK ….

Question: How high will the new house have to be elevated ?? Note: This DOES NOT replace an actual survey of the property

WHERE CAN YOU FIND FLOOD HAZARD INFORMATION

V IEWING THE M APS …. Flood Hazard Assessment Tool

S EARCH F UNCTIONALITY Three ways to locate a property …. Identify Address TMK

LAYERS AVAILABLE …. On July 22, 2009 FEMA released preliminary DFIRM updates for the City and County of Honolulu The following areas have been affected: Southern shoreline from Kaena Point to Portlock. Waimanalo (Mekia Street) Laie (BYU campus and along Kam Hwy between Wahinepee & Puuahi) Note: The preliminary DFIRMs for Oahu and Kauai are tentatively scheduled to go effective next Fall (2010) at the earliest.

SAMPLE SEARCH

SEARCH BY ADDRESS Tips: Turn off pop-up blockers; Enter street name only (NO house numbers or suffix)

CURRENT FLOOD ZONE

PROPOSED FLOOD ZONE

D EMONSTRATION

LEVEE CERTIFICATIONS

C ERTIFICATION R EQUIREMENTS In order for FEMA to recognize a levee system as providing protection from the base (1-percent annual chance) flood, it must meet, and continue to meet minimum design, operation, and maintenance standards established in Section of the National Flood Insurance Program regulations. The design criteria include, but may not be limited to: freeboard, closure devices, embankment protection, embankment and foundation stability, settlement, and interior drainage. operation and maintenance plans must also be completed. Hawaii Levee Certifications are due February 1, 2010 For status of certifications call the respective County Floodplain Manager

O AHU L EVEE C ERTIFICATIONS Waialae-Nui Stream, Honolulu

O AHU L EVEE C ERTIFICATIONS Keaahala Stream, Kaneohe

O AHU L EVEE C ERTIFICATIONS Kawainui Marsh Levee, Kailua

WAI HALANA Suggested Reading: Wai Halana October 2009 Issue “When you Lose Your PAL” and “Hawaii PAL Period Ends February 1, 2010” Download Copy:

M AHALO …. Thank You !!!