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of the buildings destroyed by Sandy, and 94
<br />percent of those severely structurally damaged,
<br />were built before 1983.
<br />Thus, the new ABFEs were no small deal
<br />for New York. They are laden with physical and
<br />economic implications for both property own-
<br />ers and the city itself. The city planning depart-
<br />ment notes that typical FEMA requirements are
<br />based on assumptions that apply to less dense
<br />communities with a wider range of options for
<br />reorienting land use. As a result, city officials
<br />decided even before Sandy that they needed to
<br />develop options that would be more applicable
<br />to denser urban areas. The city's search for
<br />such options also led to another study, funded
<br />by HUD and released in June 2013, Urban Wa-
<br />terfront Adaptive Strategies. One hope behind
<br />these efforts is that they will prove useful not
<br />only to New York itself, but to numerous other
<br />similarly dense cities across the country.
<br />ADD A DOSE OF REFORM
<br />Communities affected by Sandy face not only
<br />the immediate consequences of remapping,
<br />but the initial impact of the Flood Insurance
<br />Reform Act of 2012, also known as Biggert-
<br />Waters, after its two prime sponsors in the U.S.
<br />House of Representatives.
<br />Passed a few months before Sandy,
<br />Biggert-Waters sought to remedy the long-term
<br />insolvency of the NFIP by amending its rate
<br />formulas as well as some of its regulations.
<br />Historically, the NFIP has offered subsidized,
<br />or non -actuarial, rates for flood insurance on
<br />properties built before FIRMs were established
<br />in any given area. The earliest maps were is-
<br />sued in 1974. Hurricane Katrina left the NFIP
<br />laden with nearly $18 billion in debt. By 2012,
<br />Congress had decided that reforming the rate
<br />structure was the most viable path to solvency
<br />for the program. Moreover, critics had argued
<br />for years that subsidized rates disguised the
<br />actual level of risk associated with many prop-
<br />erties, effectively sending ratepayers the wrong
<br />signals, according to Samantha A. Medlock,
<br />policy counsel for the Association of State
<br />Floodplain Managers.
<br />In New York State, just over 75 percent of
<br />the 176,00o policies in force are pre -FIRM, with
<br />65 percent paying subsidized rates. As a result
<br />of the new law, property owners will see increas-
<br />es of 25 percent yearly until their policies catch
<br />up with actuarially established rates, which can
<br />be as high as $1,410 yearly for homes at base
<br />flood elevation (BFE), and $9,50o for those four
<br />feet below BFE, depending on the value of the
<br />home. Combine the impact of the new ABFEs
<br />with that of Biggert-Waters, and the stage is set
<br />for property owners experiencing increases of
<br />hundreds of dollars annually in insurance premi-
<br />ums. For instance, according to Medlock, owners
<br />of pre -FIRM homes in A zones (see box) could
<br />now pay between $1,05o and $2,750, compared
<br />to $23o to $54o for homes built at least two feet
<br />above BFE, an elevation difference known as
<br />freeboard. Freeboard is defined as some safety
<br />factor, usually expressed in feet, that is required
<br />by state or local government above the BFE
<br />defined by FEMA. In other words, local zoning or
<br />building regulations might require that a build-
<br />ing's ground floor be at least one or two feet
<br />above BFE. At the same time, some remedies,
<br />such as elevation, that would lower premiums,
<br />may become far more economically advanta-
<br />geous in the face of such cost increases. The
<br />annualized difference, spread overa number
<br />FEMA FLOOD ZONE DEFINITIONS
<br />The FEMA Map Service Center offers the following definitions on the FEMA website for A, V, and X
<br />zones:
<br />A Zone: Areas with a one percent annual chance of flooding and a 26 percent chance of flooding
<br />over the life of a 3o-year mortgage. Because detailed analyses are not performed for such areas,
<br />no depths or base flood elevations are shown within these zones.
<br />V Zone: Coastal areas with a one percent or greater chance of flooding and an additional hazard
<br />associated with storm waves. These areas have a 26 percent chance of flooding over the life of a
<br />3o-year mortgage. No base flood elevations are shown within these zones.
<br />X Z011e (if shaded on map): Area of moderate flood hazard, usually the area between the limits of
<br />the too -year and Soo -year floods. Are also used to designate base floodplains of lesser hazards,
<br />such as areas protected by levees from too -year flood, or shallow flooding areas with average
<br />depths of less than one foot or drainage areas less than one square mile.
<br />Unshaded X Zones extend beyond the Soo -year floodplain, but may still be capable of flood-
<br />ing in extreme events.
<br />ZONINGPRACTICE 11.13
<br />AMERICAN PLANNING ASSOCIATION I page 3
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