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“Disclosing Flood Risk”. 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. WHY IS IT IMPORTANT TO DISCLOSE FLOOD RISK?.
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“Disclosing Flood Risk” 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
WHY IS IT IMPORTANT TO DISCLOSE FLOOD RISK? Insurance Implication Flood Insurance will increase monthly expenses for a property owner. Regulatory Implication An owner’s vision and/or expectation for the property may not be realized.
National Flood Insurance Program How the NFIP Works … The NFIP was established by Congress in 1968 through the National Flood Insurance Act. Property Owner • Comply with local floodplain management regulations • Purchase Flood Insurance
Flood Maps – Flood Zones • Mandatory Flood Insurance Apply • Building Standards Apply D zones = Undetermined
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. BUILDING AND DEVELOPMENT STANDARDS
LOCAL FLOODPLAIN MANAGEMENT REGULATIONS Copies of each County’s Floodplain Management Ordinances can be found at: www.hawaiinfip.org
HOW TO BEST MARKET A PROPERTY Flood Insurance Grandfathering Provisions Building Standards Letter of Map Changes Substantial Improvements
Do your homework …. • 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 • Do your homework….. • Verify the flood zone designation
Flood Insurance Premiums Estimated Annual Flood Insurance Premium (based on October 1, 2009 rate schedule) • Assumptions: • Post-FIRM (built after 9/3/1980 for City and County of Honolulu) • Construction based on minimum regulations (elevated @ BFE) • Single Story Residential construction • Standard deductible ($1000) • Range of VE premiums based on replacement cost (RC).
Do your homework….. • Understand what your clients plans are for this property. Do your homework …. • 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.
Question: How high will the new house have to be elevated ?? Note: This DOES NOT replace an actual survey of the property
Flood Hazard Assessment Tool Viewing the Maps …. www.hawaiinfip.org
Search Functionality Three ways to locate a property ….
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) LAYERS AVAILABLE …. Note: The preliminary DFIRMs for Oahu and Kauai are tentatively scheduled to go effective next Fall (2010) at the earliest.
SEARCH BY ADDRESS • Tips: • Turn off pop-up blockers; • Enter street name only (NO house numbers or suffix)
Certification Requirements Hawaii Levee Certifications are due February 1, 2010 • 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 65.10 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. For status of certifications call the respective County Floodplain Manager
Oahu Levee Certifications Waialae-Nui Stream, Honolulu
Oahu Levee Certifications Keaahala Stream, Kaneohe
Oahu Levee Certifications Kawainui Marsh Levee, Kailua
Suggested Reading: • Wai Halana • October 2009 Issue • “When you Lose Your PAL” • and • “Hawaii PAL Period Ends February 1, 2010” • Download Copy: • www.hawaiinfip.org WAI HALANA
Mahalo …. Thank You !!!