More than 100 frustrated residents attended a special meeting at the Sumpter Township Hall last Thursday to get information on how to deal with the unexpected expenses for flood insurance suddenly being required by FEMA.
The township’s new consulting engineer John Hennessey fielded questions on floodplain maps and requirements by the Federal Emergency Management Administration for flood insurance.
Hennessey said his engineering firm works with 15 of the 43 communities in Wayne County and Sumpter is the only one of his 15 that is moving to help residents with the bewildering FEMA rules.
Sumpter Township and Hennessey are sharing the costs of shooting the elevation of township parcels, when requested by property owners. This is the first step in fighting the flood insurance demand from FEMA. If the property is under the elevation determined to be 100-year flood stage, there is nothing to do but buy the insurance.
If, however, the elevation is higher than what FEMA determines, the property owner can hire an engineer to produce an official certificate that would exempt the property owner from the insurance.
Property owners recently were alerted by letter from their banks or mortgage companies that flood insurance was needed and if they didn’t buy it themselves, the bank/ mortgage company would buy it for them and add it to their mortgage.
One man said his bank told him it would cost twice as much if the bank got the insurance than if the individual did it himself. Some estimated policy premiums in the area of $1,800 to $2,000 per year.
If a property does not have a mortgage, the insurance is not required, Hennessey said, noting the insurance is to assure the replacement value of the residence. In the past it was to cover just the mortgage amount left.
If part of the property is in the flood plain and the house is not, the insurance is not required, but a sealed certificate from an engineer must be produced.
Hennessey said because of the Katrina disaster, FEMA decided to ramp up its flood plain determinations dramatically and remap certain areas of the country. In Michigan, the EPA Region 5 in Chicago selected Wayne County, which has the densest population in the state. He said last year, Monroe County was remapped and the maps were disputed by the county.
Hennessey said the Army Corps of Engineers re-flew Wayne County and got new satellite maps of the properties. They then issued the new floodplain panels.
Some properties that had not been in floodplains in previous years, now were designated as floodplain.
When residents started getting their letters from their banks and calling township hall with questions, they were asked to provide their addresses and the township engineer would produce the FEMA information for them.
At Thursday’s meeting, digital pictures of the properties identified were put on boards with the color-coded FEMA determinations and the residents flocked around to see their pictures.
Bright red designated floodplain and green was trees and no flooding. Those with green pictures heaved sighs of relief. Those with red pictures, gave sighs of frustration.
“It’s not an exact process for FEMA,” Hennessey said of the floodplain determinations. He said a group in Chicago actually does the calculations without ever setting foot on the properties.
The whole process is driven by FEMA, Hennessey said, which turns over some of the details to the states. By state law, if a building permit is being sought for a flood plain site, the municipality must reject the request until the state grants a permit.
When some of the people started berating the county for not cleaning the drains, leading to flooding, Hennessey said the FEMA floodplain determination is independent of the drains.
He said the FEMA determination is for a 100-year rain over the entire watershed, plus a series of rain events for 25-year, 10-year, and so forth.
The determinations are based on sea level and the rains that could come would overwhelm any drains. He added that the county did not do anything to promote this and FEMA chose the most populated areas, which would bring in more insurance money.
A man in the audience said that FEMA just wants money to pay for Katrina and Hennessey agreed, adding that the conditions are what they are and, “We have to deal with what it is now” and follow the rules.
For those requesting it, the township board and Hennessey are splitting the cost to send Hennessey people out to shoot the next adjacent level to see if a parcel is in the floodplain. If it is, the property will need insurance and that’s the end of it.
If it isn’t in the flood plain, Hennessey will offer them the price of $250, their cost, to do the work to get the floodplain certificate. He said individuals can use any professional engineer to get the certificate, but the going rate is $500-$600 apiece.
He said if an engineer was hired for the project and the first step found the property was in the floodplain, a homeowner would have to pay the cost to find out they had to get the insurance anyway.
He said FEMA has new data it considers and photographic evidence of the structure now is required.
Deputy Supervisor Craig Moody, who set up the meeting to address the concerns of residents, said Hennessey has been very cooperative.
“They’re new and want us to keep them around,” he said of the engineering firm.
Kathy Paige said she successfully fought the floodplain designation for her property years ago, which was very time consuming and costly. She asked if she had to do it again. She probably does, she was told.
She contended the drains were the problem and Hennessey replied FEMA is not concerned with the drains.
A property owner asked if his property tax assessment would go down. He suggested it would be harder to sell a house on a floodplain.
Dale Harrison said property owners have 45 days to get the insurance or the bank will do it. He said his agent wants the insurance zone classification.
Hennessey had people who wanted this zone identified sign their names and addresses on a list. He said he could have the information for them by Monday.
Another man said his house was built 15’ above grade using fill dirt and FEMA told him he needed a Fill Dirt Exemption, which costs $425 just to apply.
“They have you coming and going,” he said.
“Thirteen years ago my property was not in the floodplain and now it is,” a man said, asking how that could be.
Hennessey said now FEMA uses more enhanced data and the triangulation used now has 50 points instead of 20 as in the past.
“There are no boots on the ground,” Hennessey reminded them. “This is all done by computers.”
Another man said the people can complain all they want, but “This is the government. We have to follow the steps.”
As far as the drains go, Deputy Supervisor Moody said the county would love to clean the drains, but the county would assess the property owners. The county doesn’t pay anything and the people pay it all.
“We’re not out of the recession yet. We’re losing homes,” Moody said.
Moody said the Wayne County 1956 Drain Code has never been updated and it needs an update bad.
Hennessey said the drain cleaning is a user tax, in a sense.
After the discussion people lined up to sign up to get their insurance zone designation and/or to get an initial survey.
Meanwhile, 63 people signed a petition being passed around “To Reject and Revoke FEMA’s Flood Insurance Survey – Costing Sumpter Residents Thousands Per Year.”
Residents said their insurance companies estimated a cost of $1,800 to $2,000 a year for flood insurance, which is split between the underwriter and FEMA.
On Jan. 25, the Sumpter Township Board of Trustees passed FEMA Resolution 2012-02 and Ordinance 109 which was to make way for residents to be able to buy less-expensive flood insurance through FEMA.