Each year, thousands of properties nationwide flood repeatedly. Often built before floodplain management regulations took effect, these properties continue to place a severe strain on the National Flood Insurance fund.
The Federal Emergency Management Agency (FEMA) has several financial assistance programs available for communities and property owners to acquire, retrofit or fund flood mitigation projects.
Financial Assistance Programs
The following programs are managed through the Florida Division of Emergency Management (FDEM) Mitigation Program:
- Flood Mitigation Assistance Program – A federal program that provides annual funding for projects to protect flooded structures that are insured by the National Flood Insurance Program (NFIP).
- Hazard Mitigation Grant Program – A federal, post-disaster program that funds projects to protect public or private property from future disasters.
These reimbursement funding programs require the local government to “sponsor” the applicant from the application stage through the completion of the project.
Another source of financial assistance available to a flood insurance policyholder of a repetitive-loss property is Increased Cost of Compliance coverage. This rider on your flood insurance policy provides additional coverage to help underwrite a flood mitigation project required by code as a condition to rebuild the damaged building. It can also help pay the non-federal portion of a cost-shared retrofitting project funded under the mitigation programs described above.
Additionally, the U.S. Department of Housing and Urban Development (HUD) offers a competitive loan to finance the mitigation of single-family residences. Section 203(k) rehab mortgage insurance enables homebuyers and homeowners to finance both the purchase (or refinancing) of a house and the cost of its rehabilitation through a single mortgage or to finance the rehabilitation of their existing home.
- FDEM Flood Mitigation Assistance Program
- FEMA Flood Mitigation Assistance Grant Program
- HUD 203(K) Rehab Mortgage Insurance
- NFIP Increased Cost of Compliance Coverage
- National Resource Conservation Service Emergency Watershed Protection / Floodplain Easement Program
- Property Protection
- Small Business Administration Disaster Loans