Proposed Update to FEMA Rules for Builders
The Federal Emergency Management Agency recently proposed updated FEMA rules for builders and homeowners requiring them to build on higher ground when using federal funds on construction projects situated in flood-prone areas.
Construction projects affected by updated FEMA rules include buildings, roads and other projects receiving federal funds, as well as projects rebuilt with FEMA funds following federal disasters. Privately funded projects would not be affected by these new regulations.
These new regulations originate with an executive order signed by President Obama, requiring a new flood-protection standard for infrastructure projects using federal money. The executive order is an element of the administration’s broader agenda to address climate change.
See the proposed rule for updates to Executive Order 13690 on the Federal Register website. The public comment period on the FEMA proposal rules ends on October 21, 2016.
“This is ensuring that when federal investments are made we will rebuild higher and stronger,” according to Roy Wright, deputy associate administrator for insurance and mitigation with FEMA.
See also: Flood Zone Designations Explained
Some business groups and legislators are concerned about inevitable cost increases for homeowners and builders. While noting nearly all of the parishes he represents suffered flooding this year, Rep. Ralph Abraham, a Louisiana Republican said, “The very last thing these people need is the federal government imposing a new rule by executive action that will make their recovery more expensive.”
The proposed FEMA rules for builders provide three (3) options for federally funded construction projects located in flood-prone areas:
- Build 2 feet above the 100-year floodplain level for standard projects, or 3 feet above for “critical action” projects such as hospitals or nursing homes
- Build to the 500-year floodplain
- Use the best available scientific models which often combine flood records with other factors like sea-level rise data
KMRD is a strategic partner and outsourced risk manager ready to help companies proactively control the cost of risk and implement risk control techniques to strengthen each business. Our team has the proven industry experience to understand specific challenges and provide objective advice. We help manage risk through insurance and risk programs backed by our disciplined approach, proven processes, dedicated service team, and our collaborative risk management portal.
Many construction businesses don’t carry sufficient liability insurance coverage. Send us an email or contact us below and we’ll have a KMRD expert help you get a risk control plan in place.
How KMRD Can Help:
KMRD delivers risk management and human capital solutions to over 600 clients nationwide. Our award-winning team, disciplined approach, proven processes, combined with our risk management portal make KMRD the leading choice to improve business protection and reduce the overall cost of risk.
Get Expert AdviceRequest Your Risk Control Plan About KMRD
