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93-20953 Reso • RESOLUTION NO. 93-20953 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, OPPOSING THE CURRENT VERSION OF SENATE BILL 1405 (THE NATIONAL FLOOD INSURANCE REFORM ACT OF 1993) , AND RECOMMENDING CHANGES WHICH WOULD MAKE THE PROPOSED LAW ACCEPTABLE TO THE CITY OF MIAMI BEACH. WHEREAS, Senate bill 1405 (the National Flood Insurance Reform Act of 1993) is currently under deliberation in the United States Senate; and WHEREAS, the Bill recognized the need for reform of the present National Flood Insurance Program to be more actuarially sound; and WHEREAS, the Bill would require mapping the entire U.S. coastline at a cost of 25 million dollars (from policy premiums) to establish 30-year and 60-year erosion control zones; and WHEREAS, the establishment of 30-year and 60-year erosion control zones throughout the entire coast of the United States on a standardized basis is highly controversial and unpredictable, and could lead to arbitrary results; and WHEREAS, the Bill does not permit flood insurance for any new construction or additions to existing structures in the 30-year zone; and WHEREAS, the Bill does not permit flood insurance for any nonresidential structure or residential structure that is not readily movable in the 60-year zone; and WHEREAS, the Bill grandfathers existing structures, but such structures will ultimately be denied insurance after two claims totaling 50 percent within ten years; and WHEREAS, the Bill would prohibit federally backed mortgage financing institutions from financing structures within flood prone areas unless such structures were insured under the National Flood Insurance Program; and WHEREAS, the Bill would, therefore, greatly diminish the value of property within virtually every coastal community in the nation because owners could not insure the structures on their property or sell to buyers having to finance the purchase of such property; and WHEREAS, the Bill would impose no similar prohibitions on the insurability of structures within other areas of the nation which are chronically and predictably flood prone, such as, the riverine areas, even though statistics show that number and value of flood insurance claims from riverine areas have exceeded those from coastal areas; and WHEREAS, the severe economic impact of the Bill on coastal tax bases has not been considered and this impact far exceeds the intent of the Bill; and WHEREAS, the U.S. Senate should not enact the Bill in its current form due to this inequity and fundamental unfairness to coastal property owners. NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH: Section 1. The Mayor and City Commission urge the U.S. Senate to vote against Senate Bill 1405 in its current form due to its devastating impact on the tax base, and its fundamental unfairness to the nation's coastal property owners and, in particular, those in Florida who make up more than 43 percent of all National Flood Insurance Program policyholders. Section 2. The Mayor and City Commission strongly recommend that the actuarial soundness of the National Flood Insurance Program be significantly increased by enforcing regulations to mandate that the other 8.5 million uninsured structures in federally designated flood areas be brought into compliance. Section 3 . The Mayor and City Commission further recommend that the controversial and scientifically unreliable mapping to create 30-year and 60-year coastal zones of erosion be deleted until the chronic and repetitive riverine losses are addressed. Section 4. The Mayor and City Commission authorize and direct the City Clerk to furnish true copies of this resolution to Senator Robert Graham, Senator Connie Mack and Representative Clay Shaw, and to each member of the United States Senate Banking Subcommittee on Housing and Urban Affairs. 2 Section 5. This resolution shall take effect immediately upon adoption. PASSED and ADOPTED this 17t day of November 1993 . MAYOR ATTEST: . CITY CLERK ' (Requested by Commissioner Shapiro) jm:c:\wp51\jd\sb1405.res FORM APP OVEO LEG PT. 4 12„" By .....a_zzaigt.5 Date C 3 AMENDMENT NO. Calendar No. Purpose: To require FEMA to identify communities likely to have erosion hazard Areas, assess the ecennmic impact of the denial of flood insurance and the establishment of actuarial rates in erosion hazard areas, determine the need for community management of erosion hazards and to assess the costa and • benefits of spending $25 million of flood insurance premium to map erosion hazard areas. IN THE SENATE OF THE UNITED STATES 103rd Con,g., let Sess. S. 1405 Referred to the Committee on and ordered to be printed. Ordered to lie on the table and to be printed AMENDMENT intended to be proposed by Mr. MACK (for. himself, MR. 4kAMM, Mit. BOND, Mit. ItAini.d YPH, MR. BENNETT, MR. DOMENICI AND MR. D'AMATO) Via: 1 At the appropriate place insert the following the new section: 2 SEC. _ ECONOMIC IMPACT:STUDY OF EROSION 8 ITAZADD A At3. 4 Not later than 2 years after the date of enactment of this Aot,the 6 Director shall submit to Congress a report assessing the economic 1 1 impact of the denial of flood insurance and the establishment of 2 actuarial rates in communities likely to be identified as having 3 erosion hazard areas. The report shall include-- 4 (1) a listing of aii communities that are likely to be identified 5 as having an erosion hazard areas; 6 (2) an independent assessment, after consultation with such 7 communities, of the economic impact of the denial of flood 8 insurance for now construction and the assessment of'actuarial 9 rates in the erosion hazard areas,, including the impact on- 19 (A) the value of residential and commercial properties in 11 the erosion hazard area; 12 (B) community tax revenues due to changes in property 1 R values or commercial activity; 14 (C) employment, including the potential lose of existing 16 and new jobs in the community; 16 (D) existing businesses and future economic development; 17 and 18 (E) the estimated cost of Federal and State disaster 19 asoistanoe to flood victims that would have otherwise been 2U protected by available anti aribrdabla fluod instantiate; 21 (3) an estimate of the cress-snbairly of insurance premiums in 22 such communities, and the impact of eliminating the cross- 2 1 subsidy on those communities and the financial condition of the 2 National Flood Insurance Fund; 3 (4) the costa and benefits of expending$25,000,000 from the 4 National Flood insurance Fund to map erosion hazard areas; and 5 (5) assessment of the need for tho dovoloprnont of a Commu- nity Erosion Risk Management Program, and if needed, recom- 7 mendations consistent with the goals of providing affordable flood g insurauoo protQctiors under the National Flood Insurance Pro- 9 gram,that would minimize the economic impacts on communities 10 assessed under paragraph(2) . 11 STRIKE SECTION 604(b) RELATING TO MAPPINCI OF EROSION 12 HAZARD Anr.As—On page 48, strike lino 12 and all that follows 13 through page 51, line 24. 14 STRIKE $26 MILLION AUTHORIZATION FOR MAPPING EROSION 16 HAZARD AREAS-- 16 On page 57, strike line 12 and all that follows through line 18. 1'7 On page ti'l, line 19, strike "(8)" and insert "(7) 3 • 1 STRIKE SECTION 406 RELATING TO PROHIBITION OF FLOOD 2 INSURANCE ON NEW CONSTRUCTION IN EROSION HAZARD AREAS-- 3 On page 36, strike line 16 and all that follows through page 37, 4 line8. 5 STRIKE DEF1NFrTON OP' READILY MOVEABLE STRUCTURE—On page 6 7, strike line 19 and all that follows through line 22. 'l CONFORMING AMBNIWIN`1`'1'0 RI'VERINE EROSION 8'ruDY-On page 8 62,lines 2 and 3, strike "To assist in carrying out the mapping of 9 erosion hazard areas under section 1360(i),the" and insert"The". 4 • • • • COMMITTEE PRINT Propaeed Sebadsote to e. 140et THE NATIONAL 91.001D IN/OUNCE REFORM ACT OF t993 October 19, 1993 Seotion•by.Raotlott Summery RRC_ 1. al.tn1 Title and Table Of Centred& This dtle may be cited in the'National Flood tnausenoo Reform Act of 1993' UFC. s. Direleratlati Of Purpose Under The National Plead Inuurenoe Act Of 1968. Encourages state and Waal govcrmnents to protect natural and beneficial iloodplain functions that reduce flood-related losses. Z I--vErtrartorra. SEC. IOL Flood Manta Protoadan Mt of 11m Dadnes the terms Tealni Oatdty for loading regulation,' regulated lending tnattitution,"Federel agency louder'and 'serviette.' Requir+ee all regulated lending Insdtutions, federal agency lenders, and trstitutlona under the Farm Credit Administration to enforce flood Inguranos purchase requtremtente. SEC. 102, National Flood Iniwuea Act of 19tftt. Defines the terms 'Fedora]oak of twain regulation; 'regulated lending institution,' 'Federal agency lender."natural and beneficial floodplain functions,''erosion hazard area;'erosion control me}asurmt,' 'hue iao reference feature.'''reaaddiilly ntovsbte structure,''opetithro lou structuro,"coat of t*mpliance With lava use and control measures'and 'sarvieerr.' • 'I'1TLE It— COMPLIANCE AND INCREASED PARTICIPATION. EEC, 201. Serpnn6ed Flood Insurance Puregtttse Requirmsents. Extends the Mandatory purchase requirement to Federal agency lenders and directs Fannin Man, Freddie Mac and the Federal Agit:s rural Mortgage Corporation (Farmer Mac) to implement procedures designed to assure compliance effective one year alter the data of enactment, sac. 302. Rearm Of Rood Istmtvarros Pirrntsesres. Requires regulated tending Uudtutions and federal agency tenders to escrow for flood insurance payments if the tender Of federal agency►esaowa for other teem.insurance premiums and fiat for an long es the institution maintains the ascraw aocouat effective one year after date of enactment. SEC. 203. Notice Requirement& h Requiem regulated tending institutions and federal agestey lenders to notify borrowers of epoch! flood Requires participating communities upon receiving a semi-annual list of map changes to annuity puhi(rly entity affected property omens and boil regulated lending iostitatlons of the flood insurance purchase requirement for nearly determined properties. Specifc:4 the coatenu of the notice. elte.204. Plaoam nt of Flood Ineuraaw Iq Regulated Lending tlnsumtton, Federal Agency Lender or$N vleer. Authorizes regulated lending institutions.Federal agency tenders or servicera to purchase flood Insurance on behalf of the borrower within 45 days If the property le found to be In a special flood bsisrd area without flood insurance. Borrowers may dispute flood determinations upon submission of supporting technical data and, it a property L found not to ha In a sal flood hax.rd area, a Letter of Numb tttecltertp issued by the Director relieves the requirentant to prlydiaae flood insurance. Such a letter is valid for one yes attar date of issuance. • • Committee Print.8, 1405 Proposed Substitute . Sashes-bySoodnq Pep 2 SRC 2103. Standard Flood Bawd Deteresteadon Forma. Requires the developstent of a standard flood bawd determination fbrur(printed. oamputaris(5d or electronic) to be used by regulated tending t atftutlons,Federal agency loaders,and Fannie Mae, PrNUiiI4 Use end Partner Mao for seal Etat•laeee sod ntoitgageo atau tleug d muttupr utter esh anon or the fotaa. Provides for guarantees regarding the accuracy,of flood determination data by third parties,and shoats reliant*on such infe'mation for Oro yeah costing a'safe harbor" SRC. 20w. Ramai etteeaa Rogirding compliance by*e goistad Lending lnetitutions. Requtre4 appropriate federal entitles for lending regulation as part or selu duffed on-site eximinations to determine whether lnatitutfona are complying witb the requirements or the NFL?and to report such findings to Congress. SRC.207. Pensities and Cortwetivo Actions For Failure To Require Flood Insurance, Escrow, or • Notify. Imposes up to a $350 One per violation on regulated lending institutions for a pattern and practice of fniluro to require flood Luaurawtx, au coietow,or to aouiy for flood Insurance. 'Dotal penalties may not eaaeed $100,000 for any leader in any one year. SEC.308. Federal Financial Institutions Emanation Council. The CoungU shall consult with ago assist federal entitles for lending rogulation in developing and coordinating uniform Standards and requirements for use by lenders under the MP. SEC.UP. Cstrfbnning Amendment. Cltaragea the beading of Section 102 of the Flood Disaster Protection Act of 1473 (42 U.S.C. 4012a) to rood;"Rood Insurance Purchase and Compliance Requirements and Escrow Mooing, 'rims IJ;— RATMNCS AND lNCENT VES FOR COMMUNITI'YLOODP'I.AIN MANAGEMENT PROGRAMS. Sire. 301. Contras sty Rating System And incentivea For Ceolnually Floodplaln Management. • Authorizes a Gbmmunity Rating System to provide premium rate credits for communities that implement land use and loss control measure.that armed the minimum gotten'. to provide tneentivaa tAr protection of natural and beneficial pisin foe and management of erasion Wizards.and to promote the reduction of flood Insurance lours. • SEC. 302. Pending. AuthorireS funds to carry out this program from the National Flood Insurance Fund. TITLE TV..MT'iTf3ATTnwr nit 17.nnn AND EROSION RISKS. SEC. 401. Mitigation Aeaisano+ Tn Federal Insurance Adtminrstra tioe. Anatolia* tit* Federal lasuranoe Adsdn orator to carry out a program tot mitigation asaisuiwz available to eligible states find communising; to coordinate all mitigation activities; to develop sad implement various mitigation tochnlquaa;to provide planning and technical assletanoe and, to coordinate and collect information regarding erosion b.arards. • • • ' 1 committee Print,$. I406 Proposed Substitute Section-by-SocUon Page SEC. 402. Authorimtlon at Natiooal Blood and Erosion Mitigation Funds Under Bea 1362. Autnoriaoa the expenditure of buds from the National Flood Insurance Fund for flood and erosion mitigation aaivitla to be phased in at $10,S13 and $20 million over the first three fiscal years Ow date of Gam:tmont,not to mooed $zo;Dimon per next year thereafter. Requires the Director to reportnto Coa rsws rogard g the status of activities aerial out with fends made available under this SltC.403. ilt de and Camrnuuity Mttt:atton Assists a Program. Authorizes a financial asslatance program to implement mid/pion activities including building acquisition,elevation, relocation, demolition or tloo 1proonng, and technical assistance. States and communities are eligible pending approval of mitigation plans. Planning assistance grants are available and capped at$t50,000 so any mate or 350,000 to any u mmenity, limited$300,000 to any state per year. Mitigation grant amounts are capped at$10 million per state,and $3.3 million per community over a S. year perlud,limited to$20 million per state ii1 any eve-year period. Grants require a 7SP-5 non-federal Ante match. Compliance with mitigation plate fa to be monitored, unexpended fends are to be recaptured, end preference Re grants is given to communities that: pattidpate to the Community Rating System; have a high ate of participation in the NFYP:and.have repetitive losses which are costly to the fund. SEC.404. Rapes! Of Program For Perthese of Certain Insured Properties, section 1362 of the National?bud Insurance Act of 1969 (42 U.3.G 4103) is repealed. This activity is included in the mitigation wistaria program. SEC.405. Termination of Elroaiest Threatened Structures Prent snt. Terminates the curtest Sec. 1306(c)JoneNUptou program one year after date of enactment. Relocation and demolition are activities included in the tatdptiaa saaiatanue program. SEC.406. Umltttllona on New Flood I iurtnoe Cameo in Emilia Rasard Arse. Federal flood insurance will,tvt be available for new eonstroctloo or additions to existing structures that web them not readily movable Mein 30.year erosion henna area, and limits availability of flood insurance to new readily movable residential structures within 60.year erosion hazard areas. Flood Insurance,for new construction will be wollsble landnord of year setback lines in States that have adopted an erosion management program band on erosion rates and used baseline reference features, and which contain enforceable provisions that prohibit or r irk development seaward of the'Cheek IM., SEC.407. Coordination,With Coastal Zoo.Mwgoat.at Pregame. Requires Fl:MA to consult with NOAA to promote full coordination regarding coastal erosion management under the National Flood Insurance Mt or 19611'4nd th. Coastal Zone Mai agou,eat Act of 1972. Approved state CZM proptams are to be utilized In the development of regulations and guidelines. A Muni tdon report is to be Sled jointly by PBMA and NOAA'ono year after date of enactment. TTE"ut V.. FLOOD INS ip&J4 E TASK FORCE. EEC.s01. Stood mautanea 1nreraganc7 Task reloa. Establilshee an interagency task force to conduct studies and snake re amuse datioaa mg/mew secondary market compliance and enforcement of iranraace purchase requirements: editing federal compliance programs; actuarial adjustments to premium rates and potential impacts to Federal disaster assistance pnlgrans;enforcement and compliance guidelines: and, implementation of lou reduction provisions. A report to to ba submitted 2 years after date of en.ouaeaR. •Y a + a a 11 . •-• vL • • committee Print,& 1405 Proposes Substitute Pap d 'MU VI ••MIFcLLLANROUR PROVISIONS. MC. fol. Maximum Flood Insnrenee Coverer Awounts. Coverage*mounts are increased for ly r eklecoos from S100.000 to 5250.000.end from 3234uw to 1z.5 million for uon•residentiel properties. Authorizes erects coverage not to exceed $250,000 for reconstruction of structures to moot laud use criteria under section 1361(c). Authorizes the Director to Charge actuarial premium rats for repatitivei ton Omuta! estabtluhvc a 1U96 cap on any premium rate increase over the rate for the precedhig 12 mouths, SRC, 602. Additional Coverage for Compliance with Larva Use end Control lereasuree. Authorizes coverage to enable compliance with Wad use and control nteaauras for repetitive loss rttucturn or for flood losses which waned SO%of the value of the structure which aspartame flood. related damage alter date of enactment. Authorizes the Directcw to Impose a surcharge Dot to exceed $7S on el policies to bled compliance coverage, SW,603. Flood Innanranec Preempt Arrsaa tagents With Private Immune*entities. Commit Exempts arrangements made between PUMA and private insurers from the Federal Advisory SW.604. Updating of mood Insurance Maps uiretl FEMA to and 1(deatiilcatlorr of Erosion A'asrsrd Areas, Require. update flood ltsumnee slaps every S years,or more frequently if mecum, and to distribute revised claps free of urge to states end communities. Requires FBMA to publish chin os within 30 days, and requires PUMA to publish a cnmpendiunr of all cbsngss every 6 months. Requires PEMA to map 30.and 60 yinar emalna hazed areas using erosion rano date and baseline reference features and to subsequently update erosion areas u neeessery. Requires the use of edsWng state erosion rate data and refet+enoe features sad COtobloratioa of rpcai mug4Uon 1100,1 lea. SEC.606. Vivaria*erosion Spy►. Requires PUMA to ooaduct a study to determine the most effective techniques for identifying riverine erosion hands and methods for community management. A report of findings Is to be subwltted to Congress wMdn two yens after data of enactment SEC.606. Tecitmtrlal Mapping Arivisery Camel netablialwa en add cancan to provide guidance and coeuwraaadetivna to Improve toed insurance rate maps. ; . SRC,607. Funding for Increased Administrates end Operational Responsibilities. Authorises funding for edsninistrs+ Urro costs ZIOXI cry to develop and 'twice the program for mitigation assistance. Also authorizes S25 aniline ever 5 years for mapping erosion stones, and S2 million per year for revising eroslost hazard woes staging 2 pats sites date of aunrdraom. SEC. CVO. Ssparato Aunt 1Lr alums Ianureace Fund. Requires PUMA to maintain the flood ioumece fund as a separate amount in the U.S.Treasury. Ric. 609. Nermrssirsr of Mod lemma Pstrch,ias Requirements for Recipients of Federal Disaster Assistaam Specifies that Peden!Agendas may not waive flood insurance purchase re►qufretnerti for individuals that have received Naomi disaster euisuruce. • • Committee Print,L 1405 Proposed Substitute Sectioa•bySeotioq Pap 5 SEC.610. Implementation Review by the Director. Requires the Director to report the effects obseiwd throu$b Implamoutattoe of the National Flood Insurance Reform Mt of 1993 u part of PEMA's Mendel report. SEC. 611. IteSulatlotu. The Director of FNMA and tow*pgropriate bad of say'Wand*goner may itiM*• mulattos' a+sts ary to implomeau provtoas of this aaioadaiont.