[Federal Register: September 15, 2004 (Volume 69, Number 178)]
[Notices]
[Page 55642-55643]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr15se04-60]
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DEPARTMENT OF HOMELAND SECURITY
Federal Emergency Management Agency
Pilot Program for the Mitigation of Severe Repetitive Loss
Properties
AGENCY: Mitigation Division, Federal Emergency Management Agency
(FEMA), Emergency Preparedness and Response Directorate, Department of
Homeland Security.
ACTION: Notice of meeting and request for comments.
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SUMMARY: Section 1361A of the National Flood Insurance Act of 1968 (the
Act), as amended by section 102 of the Bunning-Bereuter-Blumenauer
Flood Insurance Reform Act of 2004 (Pub. L. 108-264), 42 U.S.C. 4102a.,
authorizes a new Pilot Program for the Mitigation of Severe Repetitive
Loss Properties. Section 1361A(j) of the Act requires FEMA to consult
with State and local officials and to provide an opportunity for oral
presentation, on the record, of the data and arguments from such
officials on developing procedures for the distribution of funds to
carry out eligible mitigation activities under the Pilot Program.
Accordingly, with this notice FEMA is initiating consultation with
State and local officials, as well as members of the public, on
procedures for the new Pilot Program. Interested parties may submit
written comments in response to this notice during the consultation
period. During this period, FEMA will hold a meeting in mid-November,
2004 with representative officials of State and local governments,
organizations representing the emergency management, floodplain
management, and insurance professions, and other interested parties,
for input on overall program requirements and procedures for the new
grant funds, including issues raised in this notice.
DATES: Written comments may be received no later than November 30,
2004.
ADDRESSES: Please send written comments, including responses to the
questions raised in this notice, to the Rules Docket Clerk, Office of
the General Counsel, Federal Emergency Management Agency, 500 C Street,
SW., room 840, Washington DC 20472, (facsimile) (202) 646-4536, or (e-
mail) FEMA-RULES@dhs.gov.
FOR FURTHER INFORMATION CONTACT: Cecelia Rosenberg, Federal Emergency
Management Agency, Mitigation Division, Risk Reduction Branch, 500 C
Street, SW., room 417, Washington, DC 20472, (202) 646-3321 or e-mail
Cecelia.Rosenberg@dhs.gov.
SUPPLEMENTARY INFORMATION: The purpose of this Notice is to announce
that FEMA is soliciting input from State and local officials, as well
as from the emergency management, floodplain management, and insurance
industry communities, and other interested parties on considerations
for the development of grant program requirements and procedures for
the newly authorized Pilot Program for the Mitigation of Severe
Repetitive Loss Properties. FEMA will hold a meeting in mid-November,
2004 with representative State and local officials for oral comment on
the issues raised in this notice, and also invites all interested
parties to provide written comments by November 30, 2004.
Program Description. Section 1361A of the Act authorizes FEMA to
implement a Pilot Program that would provide financial assistance to
States and communities for the Mitigation of Severe Repetitive Loss
Properties with funding of up to $40 million each year that will remain
available until expended. The Pilot Program represents a concentrated
effort to mitigate those insured properties that have suffered the
greatest amount of damage in terms of claims against the National Flood
Insurance Fund. Severe repetitive loss properties are defined in
section 1361A(b)(1) of the Act as Single Family Properties consisting
of one to four family residences that are covered under a contract for
flood insurance made available under the Act which have had four or
more claims with each claim exceeding $5,000 and with the cumulative
payments exceeding $20,000, or which have had at least two claim
payments that cumulatively exceed the value of the property. Section
1361A(l) of the Act requires that the Pilot Program terminate on
September 30, 2009.
In summary, the Act contains the following provisions for the Pilot
Program:
Section 1361A(b)(2) of the Act requires FEMA to provide
the definition of a severe repetitive loss property as it pertains to
property consisting of five or more residences;
Section 1361A(c) of the Act identifies the mitigation
activities eligible for funding;
Section 1361A(d) of the Act provides FEMA with the
authority to establish cost-share incentives for States participating
in the program;
Section 1361A(e) of the Act requires FEMA to identify
severe repetitive loss properties and notify States, communities, and
owners of such properties of the availability of mitigation assistance
as well as the consequences of declining such mitigation offers;
Sections 1361A(f) and section 1361A(g) of the Act
establish standards and limitations by which FEMA can make mitigation
offers;
Section 1361A(h)(1) through (5) of the Act provides for
insurance rate increases for property owners who decline mitigation
offers within participating States;
Section 1361A(h)(6) of the Act requires FEMA to establish
a process through which policyholders may appeal insurance rate
increases imposed when declining offers of mitigation, and to submit a
report to Congress on rules, procedures, and administration of this
process;
Section 1361A(j)(1) of the Act requires FEMA to develop
rules governing procedures for the distribution of funds to States; and
Section 1361A(j)(2) of the Act requires FEMA to consult
with State and local officials within 90 days of the passage of this
Act to provide an oral presentation, on the record, of data and
arguments for developing procedures for the distribution of funds to
States and communities to carry out eligible mitigation activities.
Incentives and Consequences. Section 1361A of the Act provides FEMA
with the authority to establish incentives and consequences designed to
increase participation in the Pilot Program and to reduce the number of
severe repetitive loss properties in the National Flood Insurance
Program. Section 1361A(d)(2) of the Act allows FEMA to increase the
Federal share of a grant awarded to recipients under the Pilot Program
from 75 percent to 90 percent if the State has a FEMA-approved State
mitigation plan consistent with 44 CFR Part 201 that specifies how the
State will reduce the number of severe repetitive loss properties and
if the State has taken actions to mitigate the severe repetitive loss
properties within the State. Section 1361A(h)(1) and (2) of the Act
requires FEMA to impose insurance premium rate increases for property
owners who decline mitigation offers under the Pilot Program.
Notification. Section 1361A(e)(1)(A) through (C) and section
1361A(e)(2) of the Act require that FEMA identify and
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notify all owners of severe repetitive loss properties, as well as
States and communities, that their properties meet the definition of a
severe repetitive loss property; and that the properties are eligible
for assistance under this section. Section 1361A(e)(1)(D) and section
1361A(e)(1)(E) of the Act also require FEMA to notify severe repetitive
loss property owners that there are insurance implications for
declining offers of mitigation assistance proposed by States and/or
communities under the Pilot Program and that there is a right to appeal
provided for under this section. Section 1361A(h)(6) of the Act
requires FEMA to establish a process for the Pilot Program through
which policyholders can appeal the increase in their premiums if they
turn down a mitigation offer. The Act limits grounds for appeal to
those stated in section 1361A(h)(6)(A).
Eligible Activities. Section 1361A(c) of the Act identifies
eligible mitigation activities, which are limited to: elevation,
acquisition, relocation, flood proofing, minor physical localized flood
control projects, and certain demolition and rebuild projects. Section
1361A(g)(1) of the Act places restrictions on the reuse of acquired
land that are consistent with the requirements of section 404(b)(2)(B)
of the Robert T. Stafford Disaster Relief and Emergency Assistance Act
(42 U.S.C. 5170c(b)(2)(B)). Section 1361A(f)(3) of the Act requires
that States and communities must consult with all property owners when
selecting appropriate mitigation options, and notify each holder of
recorded interest in a property of any offers of mitigation assistance.
Allocation of Funds. Section 1361A(f)(1) of the Act requires FEMA
to provide assistance for properties in the order that will result in
the greatest amount of savings to the National Flood Insurance Fund in
the shortest period of time. Section 1361A(f)(5) of the Act stipulates
that funds are to be distributed based upon the percentage of severe
repetitive loss properties within the State, and identifies additional
provisions for the redistribution of unspent funds.
Rules. Section 1361A(j)(1) of the Act requires FEMA to develop
procedures for the distribution of funds under the Pilot Program for
the Mitigation of Severe Repetitive Loss Properties and to ensure that
the procedures meet the following criteria:
Require the Director to notify States and communities of
the availability of grant funding and that participation in the Pilot
Program is optional;
Provide that the Director may assist States and
communities in identifying severe repetitive loss properties;
Allow States and communities to select properties to be
mitigated and the eligible mitigation activity to be performed; and
Require each State or community to submit a list of severe
repetitive loss properties they would like to be the subject of
eligible activities.
Consultation. FEMA is providing letters of invitation to the
Consultation meeting to representatives from the Association of State
Floodplain Managers (ASFPM), the National Emergency Management
Association (NEMA), the International Emergency Management Association
(IEMA), other interested organizations, representatives from all
States, and representatives from communities with 20 or more severe
repetitive loss properties. Those wishing to submit written comments
should send them to the to the Rules Docket Clerk, Office of the
General Counsel, Federal Emergency Management Agency, 500 C Street,
SW., room 840, Washington DC 20472, (facsimile) 202-646-4536, or (e-
mail) FEMA-RULES@dhs.gov.
While the focus of this meeting will be to solicit input for FEMA
to consider on the distribution of funds under the Pilot Program,
invitees may respond to any of the questions below in their oral or
written comments. Section 1361A(j)(2) of the Act specifically directs
FEMA to consult on the process for distribution of funds, however FEMA
also wishes to gather comments on the overall Program from our partners
and stakeholders. FEMA is soliciting responses to the following
questions:
1. What key factors should FEMA consider in developing the Pilot
Program for Mitigation Severe Repetitive Loss Properties under section
1361A?
2. What parameters should FEMA use to define severe repetitive loss
for multi-family structures consisting of five or more residences?
3. What process should FEMA use to notify property owners that
their property is considered a severe repetitive loss property as
defined by the statute?
4. What criteria should FEMA consider when allocating funds to
States and/or communities under the Pilot Program? Should FEMA consider
base allocations for States with higher numbers of severe repetitive
loss properties?
5. Should there be caps on Pilot Program funding for States and
communities similar to Flood Mitigation Assistance program funds? If
so, how would the cap amounts be determined?
6. What criteria should FEMA use to review and approve State
mitigation plans consistent with 44 CFR Part 201 to ensure that they
contain recommended actions to mitigate severe repetitive loss
properties?
7. What criteria should FEMA use to make the determination that a
State has taken actions to reduce the number of severe repetitive loss
properties in its communities?
8. What criteria should FEMA use to determine projects that will
result in the greatest amount of savings to the National Flood
Insurance Fund? How should the criteria relate to current FEMA
procedures for determining cost effectiveness?
9. What types of assistance do States and communities want from
FEMA when making offers to owners of severe repetitive loss properties?
10. What role should States and communities have in the appeals
process for severe repetitive loss property owners who decline
mitigation offers under the Pilot Program? What rules and procedures
should be contained in the appeals process?
Dated: September 10, 2004.
David I. Maurstad,
Acting Director Mitigation Division, Emergency Preparedness and
Response Directorate, Department of Homeland Security.
[FR Doc. 04-20761 Filed 9-14-04; 8:45 am]
BILLING CODE 9110-41-P