The bill, H.R. 3370, passed the House earlier. U.S. law does not officially change until the president signs the bill into law, but President Obama’s staff says he plans to do so.

The bill no longer requires the cost of flood insurance to readjust upon the sale of a home in an area where the Federal Emergency Management Agency (FEMA) subsidizes policies.

Home sales: As a result of the Biggert-Waters Flood Insurance Reform Act of 2012, the cost of flood insurance immediately rose to its actuarial rate at the time of a home sale, and the buyer could be required to pay many thousands more per year than the seller. The just-passed bill, however, maintains flood insurance price continuity, and the purchaser is treated the same as the current property owner.
Reinstates grandfathering: All post-FIRM (flood insurance rate map) properties built to code at the time of construction are protected from rate hikes that result from new data – the flood maps created after the fact. Also important: The grandfathering stays with the property, not the policy.
Annual rate increases capped at 18%: FEMA cannot raise flood insurance rates within a single property class beyond 15 percent per year. And it cannot raise a single homeowner’s rate more than 18 percent per year. (Before Biggert-Waters, the rate was 10 percent; until the new bill is signed, it’s 20 percent.)

Annual rate increases capped by home value: The bill requires a 5 percent minimum annual increase on pre-FIRM primary residence policies that are not at full risk, but it also says FEMA must try to minimize the number of policyholders that are charged an increase greater than 1 percent of their flood coverage. For example, a home covered for $250,000 in flood damage might face a yearly increase no higher than $2,500.

Policyholders refunds: Buyers who purchased pre-FIRM homes and were already charged higher flood insurance rates than the seller should be refunded the price difference once the bill is signed.
Annual surcharges: A new fee will also be introduced to all flood policy holders – an annual surcharge of $25 for primary residences and $250 for second homes and businesses – until subsidized policies reach full risk rates.

Affordability study funded: Biggert-Waters required FEMA to conduct a study to determine the rate impact on homeowners, but FEMA never completed the study by the mandated deadline. The new bill funds the study and gives FEMA two years to complete it.

Home improvement threshold: In addition to homebuyers, higher flood insurance rates could kick in if an owner renovated or remodeled a home beyond a set level. Under current law, it’s an improvement equal to 30 percent of the home’s value. Under the new law, the improvement level returns to its historic norm of 50 percent.

Additional provisions: The new bill includes several other provisions, including preserving the basement exception, allowing for payments to be made in monthly installments and reimbursing policy holders for successful map appeals.

FLOOD ZONE MAP REVISIONS

I took some time today to look into the proposed revisions to the FEMA FIRM maps. These maps are used to determine what the probability of flooding is in a certain location and thus used determine flood risk and flood insurance pricing. The current flood maps may be found by entering your location at the following page…

https://msc.fema.gov/webapp/wcs/stores/servlet/FemaWelcomeView?storeId=10001&catalogId=10001&langId=-1

I did this for my personal residence and I know, it’s in a flood zone B. However ‘they’ are in the process of revising these maps as well as removing the subsidies for flood insurance issued un the National Flood Insurance Program or NFP. To locate your proposed flood insurance zone you may look at the panel locater for Palm BeachCounty…

12099CIND1A

Then go to the following web site and open the corresponding map…

https://hazards.fema.gov/femaportal/prelimdownload/searchLoad.action

Now compare the two maps. As for my residence I am still in a Zone 2. HOWEVER, just one road away from me is now a Zone AE.

The map for Jupiter Farms has not yet been published but there is a note indicating that this will remain a Zone B.

The area of Palm Beach Country Estates in an AO zone looks to have increased.

And some minimal changes along the coastal Jupiter, Juno Beach, North Palm Beach and Palm Beach Gardens.

Why is this important? Flood insurance is a requirement of conforming (Fannie Mae, Freddie Mac) loans, and most others, if the insured improvements (the buildings) on the property are in a Special Flood Hazard Area (a zone beginning with the letters “A” or “V”). If, however, the Elevation Certificate prepared by a licensed surveyor states that your property is in Zone B, C, or X (not in an SFHA) then generally speaking flood insurance is not required by the lender. It is possible to have a property in a zone A or V but the house is in Zone B, C or X. These would be the houses on stilts in the keys.

By Chris Ryder

I just saw a terrific bank owned (REO) deal of a property.  This unit, #1104,  in the Tower Building of Juno by the Sea in Juno Beach is fully renovated on the 11th (of 12) floor.  This is a first class building located in the quiet town of Juno Beach. the unit has views of both the Atlantic Ocean and the town.  Sitting on the balcony the beach is very wide in front of the building so even from the 11th floor one feels like they are literally sitting on the beach.  This is link to this particular property…

https://www.flexmls.com/link.html?12bscsyuhlso,15,1

And this is a link to the condominium details for the Juno by the Sea-Tower building.

I recently reviewed some information in connection with a conversation with another person and thought it might be of interest to other real estate professionals.  Basically, cities and towns enacted local ordinance which established code enforcement liens as being on par with tax liens in title superiority.  Thus, even if a first mortgage holder named the municipality as a defendant in a foreclosure suit the code liens were not foreclosed as they were on par with tax liens which by state statute are superior to all other liens.  This always seemed a bit odd for a state like Florida which as a lien theory state holds that the first mortgage holder does not own a mortgaged property but simply has a lien on it.  They do not own the property so how could they be held responsible for keeping it well kept.  The bank would foreclose it’s lien on a property and either a) take title at the foreclosure auction or, b) a third party would take title at this auction.  Either one of these two parties would still need to clear the superior non-foreclosed liens including code liens.  Well, one of the banks took the municipality to court over this and they won.  the municipality appealed all the way to the Florida Supreme Court and they determined that in fact the municipalities had over reached their authority and that code liens are in fact similar to other secondary liens following a first in time, first in line (for payment) methodology.  This is a link to the Supreme Court Decision Sc11-380…

sc11-830

And to a bulletin from Old Republic Title Insurance…

Title Insurance Bulletin

Great 55+ community, close to all the amenities of Indiantown Road.  Communal boat dock, clubhouse and shuffleboard and pets are permitted.  Only a few sales a year, these units get snapped up!

https://www.flexmls.com/link.html?12bpil8xirrx,15,1

Click on the link below for detailed information of Fisherman’s Landing in Jupiter….

Fishermans Landing