What is Floodplain Management?

Floodplain Management is a land use and development standards program intended to protect new development and avoid or reduce adverse impacts on existing lands and/or existing development from the peril of flooding. The program is currently mandated on municipalities as a condition of participation in the National Flood Insurance Program (NFIP).

While somewhat narrow in scope it can be included as part of an all inclusive Watershed Management Program which includes but is not limited to, stream protection, wetlands protection, stormwater management, erosion and sediment control, source and non-source pollution management and development density controls.

What is the National Flood Insurance Program (NFIP)?

The NFIP is a federal program enabling property owners in participating communities to purchase insurance protection against losses from flooding. The insurance is designed to provide an insurance alternative to disaster assistance to meet the escalating costs of repairing damage to buildings and their contents caused by floods.

Participation in the NFIP is based on an agreement between local communities and the Federal Government that states if a community will adopt and enforce a floodplain management ordinance/law to reduce future flood risks to new construction in Special Flood Hazard Areas, the Federal Government will make flood insurance available within the community as a financial protection against flood losses.

Who administers the NFIP?

The Federal Emergency Management Agency (FEMA).

What is a Special Flood Hazard Area (SFHA)?

In support of the NFIP, FEMA produces Flood Hazard Boundary Maps (FHBMs), Flood Insurance Rate Maps (FIRMs), and Flood Boundary and Floodway Maps (FBFMs). Several areas of flood hazards are commonly identified on these maps. One of these areas is the SFHA, which is identified asan area of land that would be inundated by a flood having a 1-percent chance of occuring in any given year (also referred to as the 100-year flood). Development may take place within the SFHA, provided that development complies with local floodplain management ordinances/laws which must meet the minimum Federal requirements.

Is the purchase of flood insurance mandatory?

The Flood Disaster protedtion Act of 1973 and the National Flood Insurance Reform Act of 1994 mandate the purchase of flood insurance as a condition of Federal or Federally related financial assistance for acquisition and/or construction of buildings in SFHAs of any community.

Accordingly when you apply to a lending institution for a mortgage, equity, construction or other loan involving real property, the lender must determine if the building, existing or proposed is or will be located within a SFHA. If it is, flood insurance protection will be a mandated condition of the loan.

Who determines if a property and/or structure are flood prone?

Some lenders do this directly using FEMA's maps but most rely on Flood Hazard Determination Companies located throughout the U.S. Determinations are made based upon the information submitted by the lender and compared to the FEMA maps.

How accurate are determinations made by a determination company?

They are as accurate as the information submitted by the lender. However, many are based upon the tax map parcel and not the location of the structure as may be taken from a property survey. In addition, determination companies usually do not have the information or expertise to assess a property or structure's eligibility for a LOMA or LOMR.

What does Pre-FIRM mean?

Pre-FIRM means structures built or substantially improved before the date of a community's first FIRM. In many cases this is the date the municipality converted to the regular phase of the NFIP. Flood insurance premium rates are federally subsidized and the same for similar structures regardless of risk.

What does Post-FIRM mean?

Post-FIRM means structures built or substantially improved after the date of a community's first FIRM. Structures are rated based upon the elevation of the lowest floor and compliance with local floodplain management regulations.

What is a flood?

A flood under the NFIP is defined as: "A general and temporary condition of partial or complete inundation or normally dry land areas from overflow of inland or tidal waters or from unusual and rapid accumulation or runoff of surface waters from any source."