HOMES WILL HAVE TO BE BUILT HIGHER; RULE WILL APPLY TO THOSE IN FLOOD PLAIN

When people begin returning to homes damaged by flooded rivers, they may find that any major construction will be treated as new construction and they will be required to rebuild 1 foot above the 100-year-flood level.

In a letter to participating cities and counties in the Federal Emergency Management Agency's National Flood Insurance Program, officials were advised that buildings damaged to the extent of 50 percent of their fair market value are treated as "new construction" for elevation or flood-proofing purposes.

Frank P. Begley, acting regional director of FEMA, advised local government officials of the policy.

Said Begley: "Following a flood, the subject of `substantial improvements' is a critical issue. Those buildings which have been damaged by flooding to the extent of 50 percent of their fair market value are treated as new construction for elevation or flood-proofing purposes."

He said, "I feel it is important to emphasize these requirements at this time so that the county can adhere strictly to this provision of its ordinance, thereby mitigating against future danger for the citizens in the flood plains."

He explained that if the policy is not followed structures that have been substantially improved without applying the flood-plain-management requirements will be rerated actuarial to reflect the true risk to the building and result in much higher insurance premiums.

Buildings could be treated as new construction and could lose their "grandfathered" status, which exempted existing buildings from flood-plain regulations when the flood-insurance ordinance was adopted.

A second consequence is that local governments that fail to implement the provisions of their flood-plain-management ordinance could be suspended from the National Flood Insurance Program.

Roger Arnzen, director of the Cape Girardeau County mapping and appraisal office, is responsible for overseeing the county's participation in the program. He said he is concerned that people in the outcounty understand that they must have a permit before rebuilding or remodeling after flood damage.

Since the county planning office closed in November, Arnzen was given the responsibility for issuing building permits, which are issued only to insure there is compliance with the flood insurance program.

"All I do in that role is monitor the flood maps," said Arnzen. "I am the official to say it is or isn't in the flood plain."

In 1987 Cape County agreed to participate in the National Flood Insurance Program. In doing so, the county said "we would monitor the flood-plain area and see that all new construction meets their standards," said Arnzen.

The city of Cape Girardeau also participates in the program.

"Anybody wanting to build in an unincorporated part of the county must come to us for a building permit, which basically says whether it is in a flood area our not," said Arnzen. "We must also verify how high it is built."

Insurance agents sell FEMA's flood insurance, and the rates are considerably cheaper under the federal program than if bought on the regular market. But for federal flood insurance to be sold, the local governments in an area must agree to monitor development in flood-prone areas.

The determination of whether a building is damaged to 50 percent or more of its market value is made by the official in charge of issuing building permits. Sources of repair costs are: the flood insurance proof-of-loss statement or adjustor's worksheets; a contractor's itemized repair estimate; and the building department's cost-of-repair estimates.

To receive a building permit, the property owner must provide proof that damage is less than 50 percent of the value, unless it is clearly obvious.

Market value is defined by FEMA as the amount an owner would be willing but not obliged to accept and the amount a buyer would be willing but not compelled to pay.

Arnzen said he has been getting some calls from residents in Delta about the availability of federal flood insurance. But Arnzen said the city decided several years ago not to participate in the program and the county cannot help them with coverage since Delta is incorporated.

During this time of flooding, Arnzen said the county is getting aerial photos of flooding that can be compared to pictures taken in previous floods to see how it compares. The new photos could be used by the assessor's office in determining the assessed valuation of property in some parts of Cape County, he said.