National Flood Insurance Program

By
Robert J. Lehnhausen

THE APRIL SHOWERS that brought May flowers also brought a deluge that caused many communities and their residents stress over flooding conditions. The National Flood Insurance Program was tailored to give relief to the people and communities whose property is damaged or threatened by any type of flooding.

At the request of Gene Berghoff, executive vice president of the Illinois Association of Park Districts, we investigated and found that the federal insurance program is also applicable to park, forest preserve and conservation districts. So, we'll try to outline the program for the readership.

Governor Richard B. Ogilvie designated the Department of Local Government Affairs as the state's coordinating agency to assist communities in qualifying for the program and in the development of acceptable land use and control measures. Our department prepared and mailed over 400 booklets describing the program and a community's requirements to the areas within the state that have been designated as potential areas for qualification.

Recently two important changes in the program were announced that increase the value of the program to Illinois communities.

The federal flood insurance originally was available only on 1 to 4 family unit structures and small businesses. Effective March 1, 1972, the program was expanded to insure all apartment buildings, business structures, agricultural, religious, and nonprofit buildings, and those owned by state and local government agencies. It is under this facet that coverage would extend to park, forest preserve and conservation districts.

The second change in the expanded program is the extension of the program until December 31, 1973 and the deferment until that date of the application of the National Flood Insurance Act of 1968 which would deny disaster relief benefits to individuals who could have purchased flood insurance for a period of one year or more but failed to do so.

The new legislation leaves unchanged the requirement that after December 31, 1971, all communities in the program and all communities or units newly applying for flood insurance eligibility must have in effect land use and control measures to reduce future flood damage. Otherwise, no flood insurance can be sold or renewed within such communities.

We think this requirement can only benefit Illinois communities and that the advantages of the program are immeasurable. Let's briefly review what the program offers Illinois citizens.

There is no complicated application to be completed by the municipality county or district. A cover letter together with a series of documents (which our department can assist in compiling) is all that is required.

In return, with the approval of the application by the U.S. Department of Housing and Urban Development, the citizens of the community are able to purchase flood insurance at 10 per cent of its cost. The other 90 per cent is paid by the federal government.

Insurance for new construction and in additional amounts for existing structures is available in those communities where an engineering and hydrological study has been completed and rates established which reflect the actuarial exposure of the risk.

Actuarial rates for new construction and for a second layer of coverage for existing structures will be available in an eligible community after completion of a flood insurance study. The study develops engineering and hydrological data for each individual community in the program.

Where park, forest preserve and conservation districts are part of local government units that have satisfied the criteria for federal flood insurance, they can take advantage of the low cost coverage. In areas where the local government unit has not seized this opportunity, the park, forest preserve and conservation districts can prove to be a motivating force in encouraging the unit to comply with the necessary steps to become eligible. Our office will be pleased to help with your questions and with your local government unit's application for the National Flood Insurance Program.

Robert J. Lehnhausen is Director of the Department of Local Government, Springfield, Illinois.

Illinois Parks and Recreation 10 November/December, 1972