Unprecedented Florida-FEMA agreement
A home in Ortley Beach, N.J. is elevated to mitigate and adapt to growing flood risk from storm surge after Hurricane Sandy, April 13, 2013. Courtesy, Sharon Karr/FEMA
As Floridians scramble to rebuild after an eventful 2024 hurricane season, they’ll want to start several feet above flood level. Elevating homes above the base flood elevation – the level of high water in a so-called 1-in-100 year flood – has proven to be one of the most effective ways to brave the endless Florida storms. Now, thanks to the recently announced Elevate Florida program, there will be key innovations, new grants, and low interest loans to help homeowners get ahead of the curve and above the water.
Florida Division of Emergency Management (FDEM) Executive Director Kevin Guthrie spoke about the new multi-million-dollar program at the Florida Chamber of Commerce Insurance Summit earlier this month. “We are working with our federal counterparts along with the folks here in the state of Florida to do some new things that are going to directly impact homeowners and their insurance rates and their National Flood Insurance,” said Guthrie.
Florida Emergency Management Executive Director Kevin Guthrie. Courtesy, The Florida Channel
While there aren’t too many details at the moment, any financial relief is welcome in Florida flood zone communities where FEMA’s 50% rule requires homes in flood zones that suffer damage of at least 50% of their market value (not including the land) be brought up to current building codes – often involving more costly rebuild and elevation, rather than simple repair. Federal and state grants are already available to elevate homes, but many Floridians cannot afford to put up the required 25% of the grant amount. Guthrie’s proposal would allow homeowners to apply for federal Small Business Administration (SBA) loans of up to $500,000 (previously only available to Florida businesses) to pay that 25% to get the project underway. Low interest rates, around 2.8% Guthrie explained, mean more people can afford the initial cost to get themselves out of the danger zone. He said that some of the $2 billion in federal disaster relief made available after Hurricanes Debby, Helene, and Milton is available for elevation and mitigation programs, though the funding level was not specified. Guthrie said the feds have also agreed to let SBA loans be used to refinance homeowners existing mortgages.
Such an arrangement is unprecedented in disaster recovery and serves as a beacon of hope for many who were left with nothing after recent hurricanes. Guthrie attributed Elevate Florida to FDEM’s mitigation efforts for the 2024 storm season, where many older homes not up to current building codes presented a real problem for officials.
“As emergency managers, we cannot just respond to disasters,” said Guthrie. “We have to think of the whole economy and do all we can to build a resilient Florida. If we elevate (homes) out of the floodplain and harden them against wind, what will that do for insurance rates for homeowners? Rates will go down, not up.” Extensive wind and flood mitigation could help get Florida’s insurance market back on course and provide homeowners with a solid foundation and peace of mind to persevere.
LMA Newsletter of 12-16-24
