FEMA and National Flood Insurance Program

I have been in contact with FEMA in regards with the National Flood Insurance Program (NFIP).

Here are some facts:

1. FEMA issed maps that show our building being located next to a "1-percent-annual-chance" flood zone outlined by the edges of the Chicago River.

2. Based on the maps that FEMA sent we ARE NOT in the flood zone but really close to it.

3. FEMA states that we can obtain an Elevation Certificate for the entire building which then can be used by each individual owner to request a Letter of Map Amendment from FEMA.

4. The Letter of Map Amendment can be used to request from mortgage companies and lenders not to require Flood Insurance.

I will be looking into how we can obtain an Elevation Certificate from an engineer and of course will need to determine the cost of such service.

When I know more I shall inform all owners as needed. Below, I am attaching email communication with FEMA Map Specialists:

EMAIL RECEIVED OCT-17
Please note that it is the responsibility of lenders to determine whether a property requires flood insurance. FEMA does not make these determinations on behalf of lenders. If any resident of your condominium building is required to purchase flood insurance, it is his or her responsibility to request a Letter of Map Amendment, as explained in the aforementioned MT-1 forms. However, because the units are located in the same building, an Elevation Certificate, if prepared for the overall structure, can be used by any resident of the building.

EMAIL RECEIVED OCT-15
Judging from the location of your building on the Flood Insurance Rate Map, it appears that a corner of the building touches the flood zone. The building itself does not have to be completely located within the flood zone for flood insurance to be required. There is a possibility that the elevation of the building may put it above the Base (1-percent-annual-chance) Flood Elevation, and therefore outside the flood zone. However, to determine this, you would need to have an Elevation Certificate prepared for the building and then request a Letter of Map Amendment (LOMA) to show that the building is outside the Special Flood Hazard Area, the area subject to inundation by the base flood. Instructions and application forms for this purpose may be downloaded from the FEMA website at http://www.fema.gov/library/viewRecord.do?id=1492.

Because the building is so close to the flood zone, it is highly likely that lenders are going to require flood insurance unless a LOMA is issued for the structure.

EMAIL RECEIVED ON OCT-14
FEMA requires specific written documentation in order to make an official determination regarding the location of your property relative to the Special Flood Hazard Area (SFHA), the area subject to inundation by the base (1-percent-annual-chance) flood. However, the property appears to be shown on Panel 17031C0404 J of the effective Flood Insurance Rate Map (FIRM) for Cook County, Illinois and Incorporated Areas dated August 19, 2008. The Federal flood insurance requirement applies to structures located in SFHAs that carry a mortgage backed by a federally regulated lender or servicer. I have attached a copy of a FIRMette that shows the area of your property.

Please note that even though your unit is located on the third floor, you would still be required to purchase flood insurance if your condominium building itself is located in the SFHA.

Flood Insurance - Update

Several owners have been asked by their mortgage companies to provide flood insurance. The master policy of our building ONLY includes sewer backup insurance but does not cover real flood.

I need to point out that Flood Insurance is the responsibility of the Association since obtaining flood insurance for the entire building will cost thousands and will necessitate a huge increase of the assessments. In addition many home owners DO NOT have a mortgage and are not obligated to obtain flood insurance. Raising the assessments for all is simply not fair.

Thus, the insurance has to remain the individual home owners' responsibility.

All owners that need flood insurance may contact State Farm agent Miguel Dabul:
Phone: 773-728-8101