FEMA flood insurance discounts to continue

Jul 19, 2024 By Meghan Bradbury 6 min read

Homeowners of Cape Coral will continue to receive a 25% discount on federal flood insurance policies as FEMA will not retrograde the city’s Community Rating System classification — at least not for now.

FEMA has now given the city, as well as Lee County and Fort Myers Beach, until Nov. 18 to continue efforts to meet what FEMA says are “outstanding compliance issues.”

The letter sent to the city today states,in part:

“Our team has completed its review of the city’s compliance with the minimum floodplain management standards and everything that has been done to correct any deficiencies and violations. We acknowledge the work invested by you and your team has resulted in some improvements to meet minimum floodplain management standards, and I appreciate your leadership in this area. However, as the City of Cape Coral continues to recover from Hurricane Ian, FEMA finds that outstanding compliance issues remain. FEMA will not retrograde the City of Cape Coral’s class rating at this time.”

The city was given a deadline of Nov. 18 to provide FEMA with responses to its findings, as summarized:

• Lack of permits for development in the Special Flood Hazard Area.

• Lack of maintaining permit records for development, new construction, or substantial

improvements.

• Failure to make substantial improvement (SI) and substantial damage (SD) (“SI/SD”)

determinations.

FEMA staff reviewed each of the submitted permit packages and learned:

• 40% of the permit packages were complete.

• 4% needed a Community Assistance Visit follow up.

• 50% were ongoing in a Code Enforcement Case.

• 6% will be followed up on during a Future Compliance Engagement.

FEMA also found:

• 71 out of the 206 permit packages submitted did not include permits for structures that sustained

documented damage.

• 125 of the 206 were missing itemized/detailed cost information for repair performed.

• 82 of the 206 had individual permits issued without total repair costs.

“Although FEMA will not retrograde the City of Cape Coral’s class rating at this time, if the violations are not corrected or remedied by Nov. 18, FEMA’s regulations (Title 44 Code of Federal Regulations 59.24(b) Suspension of Community Eligibility) require us to place the city on probation. This letter starts the official notification process. In addition, the city would no longer be eligible for CommunityRating System participation and would be retrograded to Class 10 effective on April 1, 2025,” the FEMA letter states.

Mayor John Gunter held press conference this afternoon regarding FEMA’s determination, pointing out all the city did to meet FEMA’s previous determination, which resulted in notice that the city’s CRS rating was being downgraded from a 5 to a 10, the lowest rating, which would result in no discount at all for policy holders.

“FEMA found that 90% of Cape Coral’s properties they identified are complete or currently in the code enforcement process,” Gunter said. “FEMA also applauded the hard work and dedication of city staff and meeting the floodplain management standards despite recovering from Hurricane Ian. FEMA acknowledged the city’s improvements over the last two months and has identified potential areas of improvement.”

He said FEMA’s proposed next step for the city include – submit an action plan, continue to assess development from Hurricane Ian and the special flood hazard area, provide documentation concerning the code enforcement process and pending code cases and finalize the city’s plan to ensure substantial damage compliance for future storm events.

“Ensuring our residents and their homes are properly protected is our top priority. FEMA’s decision is a significant step forward for the city’s goal of keeping premiums as low as possible. We remain committed to resiliency and safety and will continue to work closely with FEMA to address any remaining concerns,” Gunter said.

Municipal officials said FEMA’s decision to maintain the CRS of 5 is “positive news.”

“We are delighted that FEMA has recognized the diligence of our city staff, and maintaining the CRS rating of 5 underscores Cape Coral’s commitment to resilience and safety,” said City Manager Michael Ilczyszyn. “Our staff’s tireless efforts, particularly in the aftermath of Hurricane Ian, have been crucial in safeguarding our community and preserving these vital insurance discounts for our residents. The City will continue to work closely with FEMA to address any remaining concerns and ensure transparency in our floodplain management practices.”

Gunter called FEMA’s decision an important step in the process.

“We are pleased with FEMA’s decision as it aligns with the city’s goal of helping keep policy premiums as low as possible,” Gunter said. “This ensures our residents and their homes are properly protected. Their safety and well-being remain our top priority, and this decision is a significant step to achieving that.”

“City staff worked diligently to provide proof of NFIP compliance in an effort to avoid a potential downgrade to a CRS classification of 10, which would have removed the current NFIP premium discounts for properties located in special flood hazard areas,” the release states.

“We are grateful that FEMA has acknowledged our ongoing efforts and commitment to floodplain management regulations,” Gunter added. “In the end, FEMA has proven they may not be a villain.”

FEMA also notified Fort Myers Beach that it will not retrograde its ratings at this time, meaning property owners there also will continue to receive the 25% discount.

Beach officials said the Town and FEMA will continue to work on a plan to address some continuing issues with their plan, also due Nov. 18.

“We feel as though we responded to FEMA’s request for information and felt that the information was accurate while meeting the requirements that were established prior to Hurricane Ian; however, we do look forward to working with FEMA to address any outstanding issues as they continue to explore the future of the Community Rating System and focus on ways that they can improve,” Town Manager Andy Hyatt said in a prepared statement.

Lee County stated that FEMA will also maintain unincorporated Lee County’s CRS rating of 5. A press release stated that “the county and FEMA continue to work on a plan to address some continuing issues. That plan will be due Nov. 18.”

“We believe this is a positive step toward keeping the CRS rating for our unincorporated Lee County residents while we continue to remediate outstanding issues with FEMA,” Lee County Manager Dave Harner said in a prepared statement. “Essentially the notification today provides the county an extension to further clarify our processes and preserve the CRS rating in the future.”

To reach Meghan Bradbury, please email news@breezenewspapers.com