Severe Repetitive Loss Program
The Severe Repetitive Loss Program provides funding to reduce or eliminate the long-term risk of flood damage to severe repetitive loss structures and reduce claims under the National Flood Insurance Program.
Severe Repetitive Loss Structures
Severe repetitive loss structures are residential buildings that have at least:
(a) Two separate claims payments with the cumulative amount of the claims exceeding the market value of the building;
(b) Four claims payments over $5,000 each and the cumulative amount of such claims payments exceeds $20,000. The SRL Program is different from the other mitigation grant programs because property owners who decline offers of mitigation assistance may experience an increase in their flood insurance premium to more closely reflect the flood risk to the structure.
Authorization and Purpose of Funding
The Severe Repetitive Loss Program was authorized by the Bunning-Bereuter-Blumenauer Flood Insurance Reform Act of 2004 (Public Law 108-264), which amended the National Flood Insurance Act of 1968, to provide funding to reduce or eliminate the long-term risk of flood damage to severe repetitive loss structures and reduce claims under the National Flood Insurance Program. The Catalogue of Federal Domestic Assistance (CFDA) number for the SRL Program is 97.110.
The regulations for the SRL Program are codified at Title 44, Code of Federal Regulations Part 79.
The Florida Division of Emergency Management's Role in the SRL Program
Although the Severe Repetitive Loss Program is federally funded, the program is administered through a partnership with the Florida Division of Emergency Management (DEM). The Division of Emergency Management has the authority and responsibility for developing and maintaining a State Standard Hazard Mitigation Plan, reviewing Severe Repetitive Loss Program sub-applications, recommending technically feasible and cost effective sub-applications to FEMA and providing pass-thru funding for FEMA approved and awarded project grants to eligible sub-applicants. The Division of Emergency Management is also responsible for ensuring that projects funded by the Severe Repetitive Loss Program are completed and that all performance and financial reporting requirements are met.
- State Agencies;
- Local and Native American Tribal governments that participate in the National Flood Insurance Program and who are not on probation, have not withdrawn or have not been suspended from the NFIP are eligible to receive Severe Repetitive Loss Program grants.
Note: Owners of validated severe repetitive loss structures who are interested in flood retrofitting their structure should contact their local or Native American Tribal governments about submitting a sub-application on their behalf. All sub-applications must be submitted by eligible sub-applicants and they cannot be accepted directly from individuals, families or businesses.
Requirements for Eligible Sub-Applicants
Eligible Sub-Applicants must:
- Participate in the National Flood Insurance Program and be in good standing;
- Have a current, FEMA-approved and locally adopted Local Mitigation Strategy Plan that is compliant with 44 CFR 201;
Be able to obtain the non-federal cost share from the owner of the structure to meet the match requirements of the Severe Repetitive Loss Program.
Eligible Projects Under the Severe Repetitive Loss Program:
Grants are available to local and Native American Tribal governments on behalf of homeowners to implement measures to reduce the risk of flood damage to validated severe repetitive loss structures that are insured under the National Flood Insurance Program. The State of Florida will provide pass-thru funds to local and Native American Tribal governments for FEMA approved and awarded projects to implement technically feasible and cost-effective mitigation measures for flood prone structures. Severe repetitive loss structures account for the largest amount of claims to the National Flood Insurance Fund. Therefore, only validated severe repetitive loss structures are eligible for funding assistance under this program. Examples of eligible flood retrofit project activities are:
- Acquisition and Demolition or Relocation;
- Structure Elevation at least 2 (two) feet above the BFE;
- Mitigation Reconstruction;
- Dry Flood-proofing of Historical Residential Structures; and
- Minor Localized Flood Reduction Projects.
The activities above, although eligible, must also meet the following minimum criteria in order to be considered for funding:
- Be cost-effective
A project must be cost-effective and substantially reduce the risk of future damage, hardship, loss or suffering resulting from a major disaster. This requirement is satisfied by performing a Benefit- Cost analysis to determine whether the benefits to be gained are at least equal to, or greater than the cost of the project.
- Be technically feasible
The project must use flood resistant design and construction methods and flood resistant materials that are accepted by the design and construction industry, as well as the Federal Emergency Management Agency. The method should be explained in the scope of work section of the e-grant's application.
- Located in or benefits an NFIP-compliant community
An eligible project must be located physically in a participating NFIP community that is not on probation, suspended or withdrawn from the NFIP, and the project must benefit such a community directly by reducing future flood damages.
- Not be located in a Coastal Barrier Resource Act designation area.
- Comply with the local mitigation plan that is in conformance with 44 CFR 201.
Each applicant must have an approved Local Mitigation Strategy, Flood Mitigation Plan, or a Community Rating System Floodplain Management Plan which is compliant with Title 44 CFR Part 201. Conformance of these plans with 44 CFR 201 ensures that the proposed measure is in keeping with statewide mitigation strategies, and the State Standard Hazard Mitigation Plan maintained by the Division of Emergency Management.
- Comply with environmental laws, regulations and executive orders
Comply with Executive Order 11988 (Title 44, CFR , Part 9 - Floodplain Management and Protection of Wetlands), Environmental Considerations and the National Environmental Policy Act [NEPA] (Title 44, CFR , Part 10).
Be in conformance with the minimum floodplain management regulations of the National Flood Insurance Program (Title 44, CFR, Sections 59 and 60.3) and the local government's Community Rating System Program, if applicable.
Application requirements at-a-glance
Sub-applications MUST contain ALL of the following documentation so that DEM can complete the state review process:
- Detailed Scope of Work
- Elevation Certificate or Plat Survey with first or lowest floor elevation
- Proof of Current Insurance
- Building Contractor's cost estimate.
Eligible sub-applicants are also required to perform and attach to the E-Grants sub-application a Benefit Cost Analysis (BCA) in PDF and Excel formats for each project. Eligible sub-applicants may also use the Fiscal Year 2011 Greatest Saving to the Fund list in lieu of submitting a traditional BCA.
Tools and Other Information
Information and Guidance
The Hazard Mitigation Assistance Unified Guidance for Fiscal Year 2011 governs how projects are submitted and selected for funding. This guidance can be found at: http://www.fema.gov/library/viewRecord.do?id=4225.
FEMA has developed resources to assist subapplicants with project and planning subapplications. The resources can be found on the HMA Application Development and Process web page at http://www.fema.gov/government/grant/hma/applications.shtm
Increased Cost of Compliance for Fiscal Year 2011
ICC coverage provides payment to help cover the cost of mitigation activities that will reduce the risk of future flood damage to a building. When a building covered by a Standard Flood Insurance Policy suffers a flood loss and is declared to be substantially or repetitively damaged, ICC will pay up to $30,000 to bring the building into compliance with State or community floodplain management laws or ordinances. Usually this means elevating or relocating the building so that it is above the base flood elevation (BFE). Non-residential structures may also be flood proofed. ICC coverage applies solely to buildings and only covers the cost of the compliance measures undertaken. It is filed separately from the normal flood insurance claim. FEMA encourages flood insurance policyholders whose homes are damaged extensively by flood to ask their claims adjusters or insurance agents about ICC coverage. Additional information can be found at: http://www.fema.gov/library/viewRecord.do?id=3010 and through the links at the bottom of this page.
Egrants Training for the Sub-Applicant
An interactive computer based course is designed to provide local and Native American Tribal governments with basic knowledge about using the web-based Mitigation Electronic Grants (E-Grants) System. E-Grants streamlines the application process by providing governmental units with the ability to apply for and manage sub-grant applications over the Internet. This course is designed to allow the individual to take it in its entirety or to focus on specific aspects of the E-Grants System. The course examines registering for access to the E-Grants System; creating, completing and submitting sub-grant applications to the Florida Division of Emergency Management for forwarding to the Federal Emergency Management Agency; and managing approved sub-applications. The course may be accessed at the following link http://training.fema.gov/EMIWeb/IS/IS30.asp
Egrants Registration for the Sub-Applicant
Sub-applicants must register a representative(s) to sign and submit the project sub-application. This representative may be the chief elected official or chief administrative official of the local or Native American Tribal government, or his/her designee. Documentation must be sent to the Florida Division of Emergency Management identifying this individual.
The Sub-grant Applicant Quick Reference Guide is available at http://www.fema.gov/library/viewRecord.do?id=3267
After reviewing the Application Process, click here to register for the E-Grants System: https://portal.fema.gov
- Click on “New User ?” link to register
- Follow screen instructions after clicking on New User and Submit. These require you to type the funny looking characters appearing on the screen.
- Personal Information is entered on the next several screens; Special note: create a user name that is at least 7 characters and not more than 14 characters in length without any spaces, and all in lower case. Click on Submit when requested at the end of each page.
- A new window will appear with the message Click here to request new privileges
- Click on Mitigation E-Grants. The next screen will ask for an “ACCESS ID”. Enter S12 (Capital S) and submit.
- The next screen confirms that registration is successful and you will see a message “Your request is being processed”. This means that your request has been placed in the E-Grant System approval queue. You will be notified via email once the DEM staff has taken action on your request.
After receiving the previous message, the Sub-applicant sends an email to DEM in care of firstname.lastname@example.org with the names and requested access rights (view/print, create/edit and sign/submit) of all users to be registered from the local government.
Benefit Cost Analysis
Completing the Benefit Cost Analysis:
Sub-applicants must use a FEMA approved methodology to perform a BCA. There are two options.
1.) The traditional FEMA-approved software-based BCA Flood Modules may be used to determine the cost effectiveness of a project. Only those sub-applications that result in a benefit cost ratio of 1.0 or greater will demonstrate cost-effectiveness for SRLP funding consideration. The BCA must be attached to the sub-application in PDF and Excel formats. The FEMA approved BCA Toolkit, which includes the Flood Modules, may be downloaded at no cost. The BCA Helpline may be contacted by telephone (866.222.3580) or via e-mail (email@example.com),
2.) The Greatest Savings to the Fund listing may be used in lieu of the traditional BCA Flood Modules for validated severe repetitive loss properties insured under the NFIP. Structures on the list have already had their mitigation benefits, calculated by FEMA. Additional information on this alternative approach, as well as the list of validated structures is available to sub-applicants by contacting the Division of Emergency Management staff assigned to their local government. This list is protected by the Federal Privacy Act.
Tables and Fact Sheets
All documents should be submitted to the Florida Division of Emergency Management at the following address:
State of Florida
Division of Emergency Management
Severe Repetitive Loss Program
2555 Shumard Oak Boulevard
Tallahassee, Florida 32399-2100
October 22, 2012 16:30