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HomeMy WebLinkAboutCOM 0334.001 2016-2018 ' 00111°.f..... .. Harry Kim ; • #• cam''1�� ��= Frank J.De Marco, P.E. *� `•�s . � � Mayor ' � - Wil Okabe oF,N Allan G.Simeon,P.E. Managing Director Deputy Director Iiiuuf3 iif C iii fl DEPARTMENT OF PUBLIC WORKS Aupuni Center 10.1 Pauahi Street,Suite 7•Hilo,Hawai`i 96720-4224 (808)961-8321 •Fax(808)961-8630 public_works@hawaiicounty.gov MEMORANDUM r --t Date: July 6, 2017 0- cp-< C) To: Valerie Poindexter, Chair And Members of the Hawaii CountyCouncil ORMOO La From: Allan G. SimeonCil Deputy Director Subject: Overview of Proposed NFIP Bill This overview is to provide you with the purpose of and reasons for the proposed NFIP bill and the consequences of not passing it. Purpose To adopt a floodplain management ordinance that will meet or exceed the minimum National Flood Insurance Program (NFIP) criteria, as directed by FEMA and the State,before September 29, 2017. Hawai'i County Code (HCC) Chapters Affected The National Flood Insurance Program(NFIP) Bill will amend Chapter 5, "Building," and Chapter 27, "Floodplain Management" of the Hawai'i County Code 1983 (2016 Edition, as amended),to comply with the National Flood Insurance Program regulations. Why are we doing this? The Federal Emergency Management Agency (FEMA) is at the end of a multi-year effort to update and modernize the Flood Insurance Rate Map (FIRM) for Hawai'i County. The FIRM has been finalized and will become effective on September 29, 2017. Before doing so, Hawai'i County must adopt or amend its floodplain management ordinance to meet or exceed the minimum NFIP criteria. Our State NFIP Coordinator advised us of the necessary changes to be made. Should Hawai'i County fail to update its ordinance before September 29, 2017, it will be subject to automatic suspension from the NFIP. The consequences of suspension from the NFIP are described below. 3541 Qrn No. Ref. To: V I ftL County of Hawaii is an Equal Opportunity Provider and Employer. Ref. bate JUL 2017 Changes made by the Proposed NFIP Bill: Note: all proposed changes are minor and mostly semantic issues. Chapter 5: • Tie Chapter 5 "Building,"to Chapter 27 "Floodplain Management." Currently, there is a loophole where several items (i.e. detached accessory structures and Ag-building) are exempt from Chapter 27. Chapter 27: • Delete several exemptions • Definition modifications • Include language so that permits in areas with special flood hazards are reviewed. • Change language for other base flood data from County"adoption"to "approval." • Include"architects"to list that can certify elevations on building plans. Consequences of NFIP suspension: • Certain types of Federal Disaster Assistance will not be available to Hawai'i County to aid in recovery. Currently, Hawai'i County is eligible for Federal Disaster Assistance in the event of a Presidential Disaster Declaration. It is estimated that Federal Disaster Assistance has totaled over$400 million for the State of Hawai'i since 1980. • Federally-backed flood insurance will no longer be available in Hawai'i County. • Existing federally-backed flood insurance policies will not be renewed. Because federally- backed mortgaged houses require flood insurance within special flood hazard areas (SFHA), lenders may recall current mortgages on these houses. • No Federal grants or loans for the acquisition or construction of buildings may be made in identified SFHAs. • No Federal mortgage insurance or loan guarantees may be provided in identified SFHAs. This includes policies written by FHA, VA, and others. This means new federally backed mortgages may not be issued in SFHAs if flood insurance is not available. • Federally insured or regulated lending institutions, such as banks and credit unions,must notify applicants seeking loans for insurable buildings in SFHAs that there is a flood hazard and the property is not eligible for Federal disaster relief. • Below is the Hawaii County flood insurance statistics as of 3/31/17. Hawai'i County Flood Insurance Stats Total Number of Policies': 4,348 Insurance in Force': $1,029,784,100 $ of Closed Paid Losses To-Date': $18,240,427 1 Source: FEMA's Community Information System as of 3/31/2017 County of Hawai'i is an Equal Opportunity Provider and Employer.