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Mar. 20, 2002
Island of Key Largo Federation of Homeowner Associations
After taking the pulse of our community in various forums, the PLRPOA is offering a possible solution in regards to the FEMA-NFIP downstairs enclosure situation. The PLRPOA offers an analysis of the background of the situation and comments.
Suggested Solution
PLRPOA’s resolution of this dilemma, is for FEMA-NFIP to charge the home owner of a non-compliant downstairs enclosure a higher insurance premium that would be appropriate for the perceived increased risk cause by the enclosure. This would place the burden of paying for the increased insurance risk on the owner of the enclosure. This solution would be fair to others in the community that didn't violate the FEMA-NFIP mandated building code.
Position
PLRPOA will support an increase of insurance premiums for non-compliant enclosures in lieu of demolition.
PLRPOA does not support the demolition of non-compliant enclosures greater than 4 years old covered under Judge R. Payne’s ruling.
PLRPOA opposes FEMA-NFIP’s unreasonable position of placing Monroe County on probation.
The Inspection Program
Those enclosures that are non-compliant and less than 4 years old have no choice but to be brought into compliance.
The non-compliant downstairs enclosures that are 4 years old or greater are now de facto legal per Judge R. Payne’s statute of limitations ruling. Instead of requiring these affordable livable enclosures to be demolished or returned to a compliant “storage only” state, the FEMA- NFIP should just increase the flood insurance premium to cover the perceived risk. This would be fair to all of the Keys’ residents.
Probation
FEMA-NFIP’s potential action of placing Monroe County on probation is very bad public policy and unnecessary. It is unreasonably punitive in its nature because it punishes a majority of the community’s families that are not responsible for the present downstairs enclosure problem. FEMA-NFIP should negotiate and resolve this situation with the homeowners that have the non-compliant enclosures, not punish the entire community.
NFIP Suspension and Denial of Disaster Assistance and Funds
The threat of the NFIP suspension and denying disaster assistance and funds in case of a disaster is totally unreasonable. The law that supports this according to FEMA-NFIP March letter is the Flood Disaster Protection Act of 1973. This law should be changed. Especially in light of the fact the federal government provides flood disaster assistance to third world counties that are certainly not covered by the FEMA-NFIP.
Economic Impact
It will not benefit anyone to turn downstairs enclosures back into “storage only” square footage. In fact, it will be economically devastating to the property owners and to the community as a whole. The community’s affordable housing will disappear. Services in the community will cost a lot more, because service employees will have to ask for a significantly high wage to live in the Keys. The economic impact will be much higher than anyone has admitted. Consider the table below;
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Impact
over the next if FEMA- NFIP mandate is enforced |
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Losses |
Total Losses |
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Lost Property Value |
6,000 units |
$ 20,000 |
$ 120,000,000 |
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Units Rented |
3,000 units |
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Rent per month |
$ 700 monthly rent |
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Income per year |
$ 8,400 annual rent |
$ 25,200,000 one year loses for all units |
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Income over years |
10 years |
$ 252,000,000 |
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Cost of Replacement affordable housing |
1,500 units |
$ 50,000 |
$ 75,000,000 |
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TOTAL LOSSES >> |
$ 447,000,000 |
50 % Damage should prevent rebuilding
The downstairs enclosures greater than 4 years old per Judge R, Payne's ruling are de facto legal. Monroe County can not directly force their demolition. FEMA-NFIP’s demand to inspect and require demolition of the downstairs enclosures is an extreme solution to this situation. It is punitive and unreasonable. A reasonable approach would be not to rebuild these enclosures if they are damaged beyond 50% of their value in case of a Hurricane-Flood.
Finished livable enclosure posses a much greater risk?
FEMA-NFIP’s mandate that these valuable enclosures be torn out and meet the compliant “storage only” building code based on assumption that a finished livable enclosure posses a much greater risk to the community is very extreme and unreasonable position. FEMA-NFIP's position that their mandate must be follow to the letter of the law and that there is no room for a reasonable solution, like increasing premiums on non-compliant enclosures seems radical and unreasonable.
Officers
Glenn Patton, President
Ann Nickerson, Vice President
Frances Simmons, Treasurer
Mary Nelson, Secretary
Board of Directors
Cara Smith
Edwina Lindeman
Pat McLaughlin
Annette Richard
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Last Modified:
March 11, 2006
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