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Commissioners discuss flood insurance rates, county mitigation aimed to help

It’s been five years, and the “unintended consequences” of the Biggert-Waters Flood Insurance Reform Act of 2012 are back, county officials and residents say.

“This has a lasting effect on residents both in the flood zone and out,” Commissioner Tony Mussare said, during the commissioners meeting Tuesday morning.

Spawned after large natural disasters, like hurricane Katrina, sent the National Flood Insurance Program into debt, the Biggert-Waters Act was meant as a reform to take care of the debt. However, it’s “unintended consequences” drastically increased insurance premiums for residents in the flood zone, Mussare said.

In 2014, the Homeowner Flood Insurance Affordability Act was passed to put a four-year delay on rising premiums, according to Mussare.

“This is the end of the fourth year, and I’m concerned about that,” he said.

Karl Demi, of Old Lycoming Township, and also the director of Information Services for the county, said his home is in a floodplain and he recently received notice from the Federal Emergency Management Agency that his insurance rate will go up 15 to 18 percent each year until it hits the max rate.

According to the Biggert-Waters Act, the max rate for a house like Demi’s is over $10,000, Demi said.

“I don’t know what world that makes sense in, when a house only costs $70,000,” Demi said. Regardless, he added that “that’s the reality of the flood insurance situation.”

Demi said when he does end up moving he may simply need to let the bank foreclose his home, as no one would be willing to buy it.

“Who’s going to buy into a $70,000 home they have to pay $10,000 flood insurance on per year,” Demi said.

Mussare and Commissioner Rick Mirabito said they will work hold local legislators accountable to bring forward legislation at the state and federal level to help with the county’s situation.

Flood mitigation efforts are underway by the county Planning and Development Department, according to Josh Schnitzlein, hazard mitigation officer.

The commissioners will consider approving a contract of nearly $1.5 million to Stahl-Schaeffer Engineering to excavate basements of houses in the flood zone. The company estimated they could fill in the basements of roughly 50 homes, at about $31,000 per house.

The construction will begin in Muncy, but is the beginning of a countywide project, Schnitzlein said, adding that he hopes to raise more funds in the future.

According to Schnitzlein, this will help the homeowner’s insurance to decrease, while still allowing them to keep their house.

“You have entire communities that are still in the floodplain, that shouldn’t get a buyout but are really paying high premiums on flood insurance,” Schnitzlein said. “So this is a way to reduce that burden to, not only the homeowner, but also to keep the community intact.”

The funds for the basement excavation will come from the state, Schnitzlein said. He also added that another $1 million in federal funds are available for the county to use in raising homes above the flood zone. Between 12 and 15 homes will be raised in Muncy and Heshbon Park in Loyalsock Township, he said.

The commissioners will vote these and other issues during their Thursday morning meeting.

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