HUD Acting Secretary Adrianne Todman expressed the importance of the newly announced Federal Flood Risk Management Standard (FFRMS) final rule, stating, “Across the country, I’ve seen firsthand the devastating impact flooding disasters have had on families and communities – especially those least equipped to handle the emotional and financial burden of recovery. HUD’s announcement today lessens the burden these disasters have on people.”
Marion McFadden, Principal Deputy Assistant Secretary for Community Planning and Development, emphasized the significance of the rule, saying, “This rule will ensure HUD supported properties have the best chance of being undisturbed when flooding occurs. It is the responsibility of the federal government to ensure that taxpayer investments are built to withstand foreseeable risk – and has the added benefit of reducing the cost of flood insurance for property owners.”
The final rule implements the FFRMS required by Executive Order (E.O.) 13690 by updating two of HUD’s regulations: Part 55, Floodplain Management and Protection of Wetlands and Part 200, Minimum Property Standards. This rule aims to protect communities from flood risk, heavy storms, increased frequency of severe weather events and disasters, changes in development patterns, and erosion.
HUD estimates that the updated standard will reduce FHA homeowners’ exposure to losses caused by flooding, lower insurance costs, and most importantly, protect the risk to life faced in areas of greater flood risk. The rule also strengthens standards by increasing elevations and flood proofing requirements of properties in areas at risk of flooding, where federal funds are used to develop or provide financing for new construction within the now defined FFRMS floodplain.
According to HUD, the total combined benefits for each year of construction resulting from the elevation and floodproofing standards required by the rule will lead to approximately $56.4 million to $324.3 million of savings over the lifetime of the properties (40 years). These savings are attributed to decreased flood insurance premiums, reduced flood damage to buildings, cost avoided for homeowners and tenants, reduced expenses associated with relocation or temporary housing, and loss of income due to flooding events.
Investments in elevation of structures have been proven to be cost-effective when flooding occurs, with a benefit of $6 in damages avoided for every $1 invested in elevation. Underserved communities are disproportionately impacted by flooding events, with formerly redlined neighborhoods facing a 25% greater risk of flooding than non-redlined neighborhoods.
The final rule has already shown success in communities like Cedar Rapids, Iowa, which implemented measures to increase resilience to inland flooding and suffered less damage during a major flood event in 2016. Similarly, the State of Louisiana and the City of New Orleans utilized HUD funding to replace damaged public housing with elevated homes, which prevented property damage during subsequent flooding.
In conclusion, the new rule is expected to save homes and lives, with approximately 122 million people at risk during the current spring flooding season. Elevation for flooding is already a requirement in 80% of states and over 600 local communities and municipalities, providing immeasurable benefits for communities across the country in terms of saving lives, keeping families in their homes, and reducing time and costs for community recovery after a flood.
