Preventing Environmental Hazards

Summary#

This measure adds coverage under the National Flood Insurance Program for some buildings on land next to lakes or other water when a state or local authority condemns the building as unsafe because of shoreline erosion, imminent collapse, or subsidence. If the Administrator confirms the claim meets new rules, the program can pay for proper demolition or to help relocate the building.

Key payment rules in the measure: the program would pay 40% of a structure's value after final determination, and if the owner demolishes the structure within 6 months the program would pay the remaining 60% or the actual demolition cost, whichever is less. If the owner chooses relocation, the program can pay up to 40% of the structure's value before collapse, not to exceed the actual cost. The structure's value is the lowest of a comparable fair market value, the purchase price adjusted for inflation, or the value under the insurance contract. Payments exclude contents and are capped by the policy amount or $250,000, whichever is less.

The measure applies to flood insurance contracts in effect on or after enactment but limits eligibility based on how long the structure has been insured (either 12 months before enactment or 4 continuous years before certification). Once a final determination is made for a structure, no further flood coverage or most disaster assistance is available for that structure or for another structure on the remaining parcel. The Administrator must write regulations to implement these rules.

What it means for you#

  • If you own a structure on a shoreline and have the required flood insurance coverage length, you could get program money to demolish or help relocate the structure if a state or local authority condemns it because of erosion or imminent collapse.
  • The program will not pay for the building's contents.
  • You must act quickly: owners generally must demolish within 6 months to receive the full demolition payment. If the structure collapses or the owner fails to act, payments may be limited to the initial 40% amount.
  • After a final determination and payment, the same structure or a different structure on the remaining land will not be eligible for future flood coverage or most disaster aid.

Expenses#

  • The measure sets per-structure payment limits: payments are limited to the lesser of the policy coverage amount or $250,000. It also defines a 40%/60% split for demolition payments and an up-to-40% pre-collapse relocation payment, subject to actual costs.
  • No publicly available information on total expected federal costs or budgetary estimates is included in the text provided.

Proponents' View#

No publicly available information.

Opponents' View#

No publicly available information.