Flood Map Threat is Ebbing

Several months ago we reported on the potential economic damage to the Portland waterfront community due to the Federal Emergency Management Agency’s (FEMA) program to implement a new flood map plan based on their latest computer model. The effect this would have on flood insurance rates and the ability to rebuild after a natural disaster was very significant to the condominiums and commercial businesses in this section of the city.

 

A lot has changed since then. Portland successfully defended their position proving FEMA’s flood map was flawed. An engineering study demonstrated the government’s model did not accurately portrait the storm conditions with regard to wave velocities and forces along a coastal area with many substantial commercial piers acting as wave surge dampers. FEMA went back to the drawing boards.

 

But even with Portland’s success, the rest of southern Maine’s coastal communities were under the FEMA threat. This was particularly troubling for towns such as Old Orchard Beach that was facing the perfect storm of three converging forces. First, the FEMA maps became official on September 3^rd starting a 90 day clock for filing a formal appeal to prevent implementation of the flood plans in January 2011.

 

Second, owners of affected property were being forced to buy flood insurance prior to the implementation date to avoid the expected higher insurance rates, assuming flood insurance could be bought at all. And, third, the residential real estate market, already depressed due to the recession and the recent bank foreclosure scandal causing a glut of units in the market, was now facing the uncertainty of the effects of the FEMA flood maps. It was anticipated the sum effect would scare buyers even further away.

 

To combat this, many of the coastal towns including Biddeford, Saco, Old Orchard Beach, the Kennebunks, and Ogunquit were authorizing engineering studies and other costly defenses to battle FEMA’s plans. Political firepower was brought into the fray with the state’s Congressional delegation led by Senators Collins and Snowe applying their influence on the issue.

 

Following the deluge of protest, the announcement came in October that FEMA was halting the issuance of the new flood insurance maps proposed for Cumberland and York counties. FEMA released a statement announcing it would “withdraw the current proposed (flood) maps and terminate the current appeals process”. FEMA went on to say they would incorporate local information into their flood plain model to more accurately reflect the effects of Maine’s rugged coast line and elevation changes.

 

FEMA also got the message that it was unfair to burden the local communities’ budgets in these difficult times by forcing towns to launch expensive defenses against an acknowledged flawed process. FEMA stated it would be switching to a new program called Risk Mapping, Assessment and Planning. This program will require each community to sign a project charter to participate in a review to provide each community with flood information and tools they can use to enhance their mitigation plans and better protect their citizens.

 

How all of this shakes out is yet to be known as it is becoming more accepted that the future will witness Maine’s coasts being visited by ever more severe storms and flooding due to coming climate changes. To face this uncertain future many coastal communities are banning together to review their particular situation regarding protecting their coastal properties.

 

The most recent joint community exercise is the creation of the Sea Level Adaptation Working Group (SLAWG) made up of Biddeford, Saco, Old Orchard Beach and Scarborough. This group’s purpose is to develop plans on how the four communities surrounding Saco Bay can adapt to rising sea levels. Kennebunk and York are pursuing similar actions. By acting as a group, common infrastructure items such as road and bridge elevations, beach protection, and marsh drainage could be efficiently addressed. Another benefit would be the coordination of dredging in one community to replace sand loss from beach erosion in another.

 

The important thing to keep in mind is these matters are not just a coastal condo problem. They will affect all condominium owners. Many coastal towns have over 30% of their property value in expensive coastal condos and other residential property. The loss of value or the inability to rebuild storm damaged property will have an enormous impact on town revenues with the resultant effect on overall mil rates, school budgets, and town services.

 

Condominiums and home owners associations are potentially one of the most organized and coordinated sectors of the real estate market. That produces political clout. The FEMA threat is not over. Community associations need to learn about the issues and make their position know or they may be hit by the next wave.

 

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© 2011 CRITERIUM ENGINEERS